Economic Analysis of Brazil

An Economic Analysis of Brazil
Name
Institution
An Economic Analysis of Brazil
Agenda
Brazil is considered as the 8th largest economy based on its nominal gross domestic product (GDP) and purchasing power parity Fouad and Gouvea (2018). To date, the Brazilian economy greatly depends on import substitution to foster growth. The current study seeks to undertake an economic analysis of Brazil by underscoring its history, market systems, the government’s role in the market system, GDP, fiscal policy and monetary policy
Country History
The economy of Brazil has undergone multiple transformations in the last two decades. Fouad and Gouvea (2018) reveal that the country started experiencing a remarkable economic growth (in terms of GDP) in the last quarter of 2004. Prior to this era, Pijining (2018) explains that the per person GDP of this economy shrugged at 0.8% in the period between 1995 and 2002 due to the issues of laxity in the political regime and heightened levels of corruption. However, the post-2003 period saw the country's per person GDP develop at an annual rate of 2.5%; a figure that is about 3 times greater than the levels of growth experienced between 1995 and 2002. Such advancements can be attributed to the moves taken by the preceding political regimes to adopt effective policies aimed at fostering poverty reduction and eradication, heavy investments in infrastructure, adoption of economically viable foreign ties, and institutionalization of cost-effective sources of energy.
Further, the last two decades saw the advancement of new trends in the processes adopted by the country’s administration to foster reductions in the levels of inequality and poverty. According to Dutz (2018), such developments were because of the Brazilian government's move to adopt programs aimed at advancing the levels of its populace's income through the creation of employment opportunities as well as the extension of the political regime’s social expenditures and programs. Fouad and Gouvea (2018) demystify that alongside the increasing levels of expansion of the real minimum wage among most of the members of the populace and the positive developments experienced in the formal industries, the government has played a significant role in increasing the brokering potencies of its workforces. Pijining (2018) demystifies that since the inception of President Lula’s administration in 2003, the underlying levels of poverty in Brazil reduced by over 56%. On the other hand, the researchers explain that the levels of extreme poverty reduced by over 65%; an aspect that lifted over 31 million Brazilians from abject wallowing.
Brazil has experienced massive changes in the ways through which the underlying benefits from economic advancements have been distributed since 2004 in comparison to the previous eras. For instance, Fouad and Gouvea (2018) demystify that in the period between 1993 and 2002, the country was affected with the issue of non-uniform distribution of wealth between the members of the higher and lower social classes. In their research, the scholars reveal that over 50% of the country’s income gains were distributed to only less than 10% of the Brazilian population; an aspect that led to an incre...