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)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Inflation targeting framework (July 1999).

A

inflation target of 4.5% allowing for +-2%.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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%
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly