The Economic and Political Systems of Brazil

The Economic and Political Systems of Brazil Student’s Name Institutional Affiliation The Economic and Political Systems of Brazil Brazil is considered to be the fifth largest country in the world, and hosts more than 200 million individuals; majority of whom live in the nation’s coastal areas. Regarding its economy, the country’s economic freedom score is rated at 51.69, which makes it the 150th freest nation in 2019 (The Heritage Foundation, 2019). This freedom score has improved by 0.5 compared to the 2018 score due to improvements in government spending and labor freedom. Initially, Brazil had a steady economic growth from 2002-2013, before experiencing an economic crisis in 2015 and 2016, which resulted in a drop in the country’s GDP by negative 3.6 percent (The Heritage Foundation, 2019). The crisis was associated with a decrease in investments and consumptions. Nonetheless, the country quickly adjusted to the crisis by creating a more conducive economic environment as well as adjusting its overall budget to foster recovery. Eventually, Brazil experienced a 1.5 percent growth in GDP by the end of 2018, and this growth is expected to increase to 2.4 percent by the end of 2019 (IMF, 2019). Unemployment is a major issue, although it recorded a 1 percent decrease from 12.8 percent in 2017 (IMF, 2019). The high levels of unemployment together with other social issues such as income inequality have resulted in increased criminal activities within the country. Despite that, Brazil has abundant resources which can be used to improve its economy. The nation is currently the largest producer of oranges, sugarcane, and soy, as well as the fourth-largest producer of timber. Additionally, Brazil is rich in minerals such as oil, coal, aluminum, and iron, which could help improve the nation’s economy significantly. However, these resources could only prove useful if the country established the necessary reforms to help reduce certain economic pressures. Such reforms should focus on reducing spending by the government, maintaining or reducing the current debt, and reducing inflation. Regarding Brazil’s poli...