Brazil Flashcards
1
Q
import substitution method 1970s 80s
A
a development strategy where an economy borrows money from foreigners to develop domestic industries
- drove growth up in the 70s and 80s at around 8-13% per year,
- lowest growth was 3.2% (1978)
- drove unemployment down to 1.9% from 4.8%.
- policy was grossly unsustainable
- lead to hyperinflation (over 2000%) as the government printed money to try and fund its budget deficits
- (-4.4% GDP growth) and 3 million Brazilians in poverty (less than US $1.90 per day)
2
Q
decrease protection levels
A
- tariffs down to 7.5% by 2002
- deregulated many industries
- still very closed
- trade percentage of GDP gone from 16.4% in 1998 to 29.7% in 2004
- GDP growth experienced at 5.8% in 2004.
3
Q
Inflation targeting framework (July 1999).
A
inflation target of 4.5% allowing for +-2%.
4
Q
economic stabilisation plan (1994)
A
- which replaced the Cruzeiro Real with the Real
- The Real was later floated in 1999
- was pegged to the USD before
- 13x increase in FDI flows from 2001-2011
5
Q
Mercosur (1991)
A
- trade bloc
- argentina, paraguay, venezuala, uraguay combined $2.8 trillion
- tenfold increase in trade in 1990s
- includes a 35% tarrif level on countries outside bloc
6
Q
Balsa famiglia program (2003)
A
- redistribute brazils income
- increase eco development
- monthly stipend of $13 per educated vaccinated child
- 2011 it covered 26% of Brazils population
- fall in unemployment from 9.3% in 2002 to 6% 2010
- helped 8.3% of Brazil out of poverty
- reduced income inequality by 21%
7
Q
PAC1 2007 - PAC2 2010
A
- only 63.2% of funding had been comlpeted by 2010 due to Brazils lack of investment
- to improve logistics, energy, housing, water and sanitation in Brazil
- relaunched with budget of $872 billion
- sourced funding through offshore oil drilling 2010
- contributed to Brazil’s HDI increase from 0.67 (2000) to 0.75 (2016)