Brazilian economy really grown up?

Friday 4 January, 2008

of the Tribune Newspapers/Los Angeles Times wrote: Brazil’s economy grows up

I remember the saying a little differently than the author, i.e. “Brazil is the country with the greatest potential…& always will be.” In other words, is so messed up, it will never fulfill its potential. This is becoming less true all the time. Given its abundant resources, geographical position similar to the United States, just south of the equator, & large population, the potential will always be there. The question is whether or not they can fulfill it on a consistent basis over time. Historically, government bureaucracy & corruption, hyperinflation leading to currency depreciation, & crime in the favellas have deterred Americans from doing business there. The bureaucracy has declined, currency has stablilized (relatively), & the Pan American games last summer showed crime is under control. Brazil’s inclusion as 1 of the fast-growing developing BRIC countries is well-founded. It’s interesting to note that Brazil’s stock index has grown faster than those in Russia & South Korea even though its GDP is not growing as fast as those other countries. I think that speaks to what investors think of its relative potential. However, there are still issues there. For example, Brazil is not a signatory to the WTO multilateral agreement on government procurement, so working with the governments there could be problematic. I think lack of investment in infrastructure could be a reflection of this.

I interviewed Jim Bergamini, CEO of Daitan Labs who had some interesting insights into telecom R&D in Brazil.  part 1, 2, 3

I visited Sao Paulo & Rio de Janiero a few years ago & will post information about the Brazilian economy on my website soon.copacabana beach

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