Brazilian Political Economy

K-12 Teach Brazil Workshop2 October 2010

Villanova University

Tony SpanakosMontclair State Universityspanakos@gmail.com

General Information I• Largest in South America • 5th largest in the World• 3rd/4th largest democracy• 8th largest economy in the

world• 9th/10th Largest in purchasing

power• GDP per capita roughly 7400

USD• 107th in purchasing power per

capita 10,7000 USD• Latin America- 35% of

population, 40% of GDP

General Information II

• Agriculture 6.5% of GDP • Industry 28.4% of GDP

• Services 68.5% of GDP

• Unemployment 8%• Poverty 28%• USD ppp per person 22% in

2003 – down to 9% in 2008

• Gini 54 (10th in world)• Investment 17%

History

Colonial Brazil1822-18891889-ISI, MilagroNew Republic

Economics of StabilizationYear January November

1994 41.32 2.96

1998 0.85 -0.18

2002 1.07 3.39

2006 0.38 0.42

2010 0.88 -0.07 (Aug)

Monthly Inflation in Brazil (as a %)INPC

Year Inflation Year Inflation

1994 916.46 2006 3.1418

1998 1.656 2009 4.3120

2002 12.53

Annual Inflation (IPCA)

Economics and Stabilization

Year January November1994 32.31 29.911998 32.66 38.552002 52.95 60.472006 48.21 46.44

2010 41.63 41.67 (July)

Brazil Risk In Basis Points (15th of month)Year January November

1998 627 10112002 837 1777

2006* 237 1542010* 171 138 (sep 23)

C-Bond, * Republic Bonds

 

Public Sector Debt (as % of GDP)

Crisis 2008?

year Reserves USD billions

1998 2002 2006 2007 2008 23 Set 2010

44.6 37.8 85.8 180.3 206.8 273

Year Fiscal Account

As % of GDP

1998 1999 2000 2001 2002 2003

-0.86 3.2 3.5 3.6 3.9 4.3

2004 2005 2006 2007 2008 2009

4.6 4.8 4.3 4,0 3.5 2.1

BRICs

Poverty and Inequality

Year GINI index

Year GINI Index

1990 0.6138 2002 0.58931993 0.6044 2005 0.56941996 0.6021 2008 0.5478

1999 0.5939

Year Unemployment Year Unemployment

1994 Jan 8 2002 Nov 121994 Nov 8.1 2006 Jan 9.51998 Jan 10.3 2006 Nov 9.11998 Nov 11.3 2010 Jan 82002 Jan 11.3 2010 July 9.4

The Future of the Country?