What About Brazil? The Rise and Fall of an emerging Global Actor

Abstract

After the stabilization of the economy brought about by the Real Plan, and the hard-fought social benefits won during Lula’s government, Brazil generated great expectations as an emerging global actor that was geared up to emerge as one of the leading economies in the near future. However, this dream turned into a nightmare when Brazil encountered a serious institutional and economic crisis that unmasked the truth about the policies of short-term gains used by the government, thus damaging the image of the country and frustrating the expectations concerning its future. The present article aims to present, in its first part, the arguments exposed by The Economist, and analyze Brazil’s economic rise and fall. Thereafter, we intend to submit these arguments for a critical review, to reflect upon what has happened, is happening, and could happen to Brazil and its society, demonstrating the chronic problems that affect its production, industry and investments, and specific points that need urgent reforms to put the country back again on the track of sustainable economic growth.