Globalization in Brazil Essay

Globalization undoubtedly is the electric current prevailing human being sparing geld. A large majority of the countries adhere to the tenets of globalization. Globalization liter make senselyy entails multi function frugal coop termtion achieved through the integration of unlike countries. It envokes the process of intermingling the different aspects of a awkwards prudence, politics, society, culture and technological carts together with the different participants of globalization.Globalization also creates a link towards the infusion of the local and national economies to create an worldwide commercialize economy, which is d superstar by setting up means for groovy inflows, reducing tariffs to give way to work and foreign investment, migration and even engine room sharing. The term globalization was eldest used during 1980s, though its concepts were non as pronounced as it is until the later parts of 1980s and 1990s. However, traces of the concepts globalizat ion sens be dated back in the early centuries, as seen in the ancient discoveries of new colonies and lands.There are three hustles of globalization, the first range which took place between 1870 1914 second wave during 1945 1980 and the tertiary wave from 1980 until the present. The first wave of globalization was triggered by the decrease in transport costs, which en adaptedd countries to readily and cheaply transport their products. This had of importly increase export share in the world income. In addition, migration closureed to the influx and increase of labor force, which r severallyed 10% of the get along world population.However, though thither was a strong increase in the throw and labor force during the first wave of globalization, there were muted problems with regards to trade and services that surfaced in the global economy. These problems were due to the implementation of several(prenominal) policies like economic protectionism, which hindered the sprea d of world(prenominal)ism amongst countries (Silva, pp. 4-5). Despite the impetus caused by economic nationalism, on the eve of the second wave of globalization, countries were persuaded back towards international cooperation.Hence, trade barriers that were preliminaryly imposed were reduced. At this point, trade was doubled comparative to the world income. In addition, specialization deep down countries swellly helped in the achieving interdependence among countries, thus increasing world income. At the end of this period, in line of work to the first wave of globalization, the second wave brought in equity amongst countries (Silva, pp. 6-7. ) And lastly, the third wave of globalization took event during 1980s. This wave had been specially distinctive among all the turns of globalization.It was triggered by the recent advances in communication and transport, coupled with the choice of much advanced countries to seek for new investment opportunities and completely clean-cut their economy towards the international market and trade (Dollar, n. p). Moreover, during this period, a large number of information countries had advanced to power, breaking into global markets while on the separate hand, there was a probatory increase of marginalized countries suffering even greatly from declining national income thus increasing poverty in the area (Silva, p.7). As much(prenominal), there had been a variety of reasons on how globalization affected the processes in each coarse. However, the approximately(prenominal) encouraging effect it wavered upon the developing countries is that it signifi behindtly hastened labor copiousness which gave national economies a broad(prenominal)ly competitive advantage in the retrace and service industries (Silva, p. 8). This in turn benefited some of the countries and was subject to take railway yard with the advancing world.The newly industrialized and developing countries issueed breaking into industrial marke ts capitalizing on infrastructures, technology and other means of production needs. This resulted to a relatively spunky rate of increase in the Gross Domestic Product (gross domestic product), which is the current determinant of a states economy success rate. Further, most of these developing countries increased their incomes by 104% since the start of 1980 though the rest of other countries who werent able to keep the tread were left staggering bottom (Silva, p.10). The world economy has indeed seen the effects of globalization on ii sides positive effects for the developing countries who were unbroken on tide by the benefits of policies imposed upon by the proponents of globalization and the other, the immediate victims of these policies suffered inwardly the less create countries who werent able to keep abreast with the changes. brazil-nut tree was one of those who benefited the era of globalization, but as such they swallow been victims at first.Consequently, recent out returns have proven that while globalization presented certain benefits for brazil, brazil nut has quite not been able to enjoy the pass judgment benefits from it. brazil-nut tree On a astounding Start There had been crisis that had risen out of the emerging influence of globalization which created a great impact among the countries that played afar according to its calls. brazil in 1999, was one of the countries to experience the adverse effect it had on world economy, but were able to pick up from the slump that it caused (Silva, p. 8).One of the difficulties that brazil faced amidst the emergence of globalization was the crisis in capital. brazil nut had used a pegged bullion, which had put them in a crisis of fiscal and external debt. And though Brazil had tried to adopt a more than responsible fiscal polity, their large debt teamed with low export and gross domestic product and overvalued currency, all resulted to a capital crisis in 1999 (Silva, p. 20). though B razil was judge of becoming one of the successful countries developing during this era, they didnt perform at the alike rate expected of them.Though Brazil possessed clear indicators of progress, Brazil, economically did not perform the development anticipated from it. The period between 1980 1990 was known to be a befogged decade for the Southern Americans, Brazil in particular. Wherein, during this era, per capita output was negative 0. 6% in a year, which has comparably decrease from the 3. 6% performance during the previous decade (Fraga, n. p). Hence the briny difficulties suffered by Brazil at the start of 1980 were due to the series of unsuccessful plans at trying to curb ostentatiousness.The main reason behind this failure can be attributed to the fact that the development model used by the military government on Brazil was based upon cheap oil resources and capital, coupled with the inability of such policies to ring the other basic necessities like having a sound fi scal and monetary policies. Let alone was that their development started from the capital crisis they suffered in 1999. As result they had to endure broad(prenominal) debt and poor supply of oil due to high prices. Hence their effort of generating trade surplus to cover up for it wherefore resulted to a high inflation rate (Fraga, n.p. and Silva, pp. 20-22). Brazil On the novel Start In the 20th century, Brazil do a significant progress and was among the best performing countries in the century. Brazil was among the top 12 emerging markets that experience massive increase in the capital inflows, whose GDP increased to as much as 22%, contributing greatly in the world economy. Accordingly, alongside the increase in capital inflows, technology greatly improved thus making an entrance towards the international market a lot easier (Silva, p. 12).Brazil in case had developed EMBRAER. The introduction of such company marked their willingness to compete in an open trade and investm ent. This equipped Brazil with an oligopolistic or monopolistic nature of a company, possessing super advanced technology that soared above the standards of their products, thus bringing in dozens of profits for their economy (Silva, p. 18). Consequently, this had astray created a positive impact on overall harvest-home of their investments. More so, at the start of 1990, Brazil started to liberalise their economy.Brazilian leaders opted to negotiate and redefine their economic policies to keep pace with the globalization trends (Langevin, n. p). They lifted trade barriers, import tariffs and quotas, and adopted reforms both economic and administrative ones. These policies included fixing the Brazilian currency to dollars, which helped put inflation at a halt. Economic reforms were done such that these were geared towards being more market-driven, extremely flexible, with a more decentralized economic environment.In this regard, they transformed old provisional measurements in to creating a single trade faithfulness which was meant to make a more transparent set of policies that can f number up the process of making reforms and laws. Accordingly, this kind of reforms also allowed an economic policy geared towards favoring exports rather than producing own their own products for their country (Brazil November 2000, n. p). another(prenominal) step they took was implementing an austere fiscal policy and privatizing several companies, all of which were invariable with liberalizing their economy.Thus, although Brazil experienced several high inflation rate in the past years, and that most of their GDP was wasted with the inflation of goods and services nonetheless, their per capita income had increased by a third from the last decade. Hence, after experiencing years of economic recession, Brazil observeed and started a fast growing cycle in the 1990s (Silva, pp. 40-41). Consequently though, expectators attributed the betterments in the Brazilian economy t owards their inclination for liberalizing their trade and market activity.Through these changes that Brazil implemented in their economic policies, their economic activity fairly improved and they achieved their prospect growth for year 2000. several(prenominal) factors that contributed to this growth which they attributed to liberalizing trade relations are as follows (1) inflation has been pegged inside the government target of 8% (2) foreign direct investment (FDI) significantly increased from its usual value in 1996 (3) trade and GDP has been unbroken at stable 20% and (4) Brazil remained to be the largest exporter of some widely used agricultural products.However, there were several economic slumps again experienced by Brazil. The outbreak of Asian crisis in 1997 forced the Brazilian currency to devalue to keep the inflation low. But nonetheless, Brazil was fast to recover and started growing again by the year 2000. Consequently new policies and asceticism programs that the B razilian government adopted kept them at pace of development. These programs had bettor kept them away from experiencing the economic slumps they had in the previous years.More importantly, these kept them away from acquiring debts and helped stabilize the ratio of debts to GDP. Moreover, to chatter of progress is to speak of the quality at how the citizens lived comfortably within their mother country. Hence, the United Nations measure of Human Development Index (HDI) in Brazil widely soared up within the past 26 years. That even though the increase in national income cannot suffice alone to the improvement of the country as a whole, the poverty level in Brazil decreased significantly, and pedagogy and strait-laced healthcare had well been depictd among the Brazilians.The young Brazilian population had become passing educated, with more children being enrolled in schools, and ensuring that the Brazilian safety net ever so kept abreast with their population through the govern ments first on providing their citizens with an apt nutrition program. In addition, social integration and cooperation amongst different ethnicities is an indicator of social progress. More so, Brazil also made great improvements in the field of political stability.The establishment and strengthening of a participatory system in the country is a well indicator of the countrys leaders to provide the general public a intelligence of working and legitimate judiciary and legislative system. However, given these factors and internal growth that Brazil has experienced over the past decades, in comparison to other neighboring countries Brazils economic performance is facilitate insufficient and is still lacking to what is expected of them.Although the poverty rate of Brazil has signifcantly decreased over the past two decades, from 40% in 1970s to 36% in 2000, poverty rate in Brazil is still high in comparison to other develping countries (Mario and Woolcock, p. 2). The Brazilian Actio n In a nutshell, though the Brazilian economy presently comprises one third of the total Latin American production through the large conglome rank of various sectors such as mining, oil, iron and steel, and manufacturing, their economic growth is still less of what was expected of them.Given what seems to be like a hegemonic existence within their region, their growth rate remained below the average expectation. And contrastingly though, Brazil lagged behind Chile, Venezuela, genus Argentina and Peru. Though the Brazilian economy has seemed to be able to progress within the past years, their performance still has not reached the full blast. They have not yet enjoyed the full outcome of a rich economy.And consequently, the benefits that they get from a globalized economy is yet to be sufficient to call it successful (Luchino, n. p). set(p) capital product has greatly hindered the potential growth for Brazil. Fixed rates have been used to control inflation, however, as a result it b ound Brazils opportunity to grow simultaneously at the same rate as that with other developing countries. Nowadays, the economy of Brazil is expected to complete a very competitive cycle.Their external and public debts had been declining, their GDP continues to be strong and growing, there have been significant increase in the export and as well as a positive trend capital inflows. Thus in analyzing the growth of Brazilian economy, the adversaries they suffered during the third wave of globalization were due to the fact that they were highly indebted with their economy limping from high inflation rates. More so, they had policies that werent appropriate to equip them within a fast paced economy that globalization is holding.Hence, at the event that Brazil started to liberalize their economy and open up their market towards the international market, and changed most of its economic policies to suit the needs for an international market competition, they at least were able to give bir th to a new start as an international player. Indeed, though the Brazilian economy made a significant advancement towards microeconomic stability since being able to adopt ministrant reforms in the 1990s, still, the pace at which their economy is growing is a matter of great concern.As such, compared to other countries and competitors which developed simultaneously as Brazil had in the past decades, Brazil is still trailing behind. To be able to reap the full benefits that a globalized world promises, Brazil must be aware of certain measures to ensure their success. First, debt management should be given limited attention. Analyzing the economic status of Brazil would suggest that Brazil is still highly indebted.Thus a more appropriate debt management policy should be adopted which will in turn be reflected with the countrys projected GDP growth as well as the other economic indicators. Second, Brazils trade policies should be kept more open towards the international economy. Pres ently, Brazils trade is still relatively closed. Their exports account to 13% of their GDP and 9% for their imports, which is comparably low for international standards.Thus, Brazil must work more on keeping these lines open to create a bigger space for their trade rate to grow. Finally, among the aspects that Brazil should work on is their infrastructures. As the means of transportation is highly significant for the growth of a country, Brazil shouldnt leave this aspect of countrys growth in poor condition. More investments should be made to improve transportation, as well as increase their countrys interest on developing energy generating infrastructures (Silva, pp. 43-46).Furthermore, wherein economic growth is an interplay of bodily resources and human capital, aside from the financial and monetary aspects, there are still six other important areas that Brazil should prioritize for them to be able to reach the full blast of their economy. These are (1) enbaling an environment c onducive for skill and growth (2) creating wider array for acquaintance creation and commercialization (3) acquisition of knowledge from more advanced countries (4) advancement and proper dissemination of technology (5) improvement in the basic education and (6) giving priority to tertiary education (Rodriguez, p.4). Thus, for Brazil to reach the full potential of their country, they must utilize not only the raw and fixed natural resources within the country. They must deal how to develop the potential of their human resources, because the people will be the one to stir their national development. If they bank on the human capital and innovation, it could greatly increase the level of competitiveness given that they could develop more expert individuals to maneuver the countrys growth.Therefore, if given the consideration for the work force to grow, improvement of education, enhancement of technology and innovation altogether these can provide a proper link for productivity (L uchino, n. p). With these tools, the Brazilian economy can reach another step for growth to increase investment and keep GDP at a stable rate. Works Cited Brazil November 2000. 1 November 2002. World Trade Organization. 24 February 2008 Dollar, David. Questions and Answers with David Dollar. Globalization. 5 April 2008 Fraga, Arminio. A Fork in the Road. 2005 December. Finance and Development. 8 April 2008 Langevin, Mark. Brazils Key Role in Globalization. 12 October 2004. Brazzil Magazine. 24 February 2008 Luchino, Marcelo. The Globalization of Brazil. 27 December 2007. Safe Democray. 8 April 2008 Mario, Estanislao Gacitua and Michael Woolcock. Assessing Social Exlusion and Mobility in Brazil. The World Bank. 8 April 2008 Rodriguez, Alberto. Brazil Seizing the opportunity to Compete? The World Bank. 8 April 2008. Silva, Antonio Elias. Openness and Development A general Analysis and a Close Look at China, Argentina and Brazil. make up of Brazilian Issues, April 2004.