Brazil is one of the fastest-growing and largest economies in the world, which has made the country a new international player. However, although Brazil has garnered plenty of global attention, there is still a lack of understanding about the country and its new place on the world stage.
Paulo Sotero, Director of the Brazil Institute at the Woodrow Wilson International Center for Scholars, and Helga Flores Trejo, Principal External Relations Advisor at the Inter-American Development Bank, addressed Brazil’s influence as a world actor at an April 12th event entitled “Why Brazil Matters: The Country’s Ongoing Transformation and Its Regional and Global Role.” The discussion and luncheon were presented by the American Friends of Bucerius and the American Council on Germany. The event was held at Alston & Bird LLP in New York as part of the 2012 Transatlantic Global Agenda Series.
Sotero began the discussion by illuminating the factors that have lead to Brazil’s incredible growth. In the 1930s, about 80 percent of Brazil’s population lived in rural areas, and Brazil had just one paved road and no universities. However, Brazil’s democratization in 1985 and recent structural and financial reforms (including privatization of several industries) paved the way for better economic performance. In addition, factors such as China’s interest in Brazilian agricultural and mineral commodities have helped to boost the country’s economy.
Thus, since the turn of the century, Brazil has seen improvement in personal income, a strong and growing middle class, and little inflation. In addition, about 80 percent of the population now lives in the city, a complete reversal from the 1930s. Infrastructure also continues to strengthen, and infant mortality is down, while life expectancy is up.
However, Sotero noted that Brazil still faces serious problems. Most schools are not efficient or of high quality, despite enrollment being universal in first through ninth grade. In addition, about 14 million people live in extreme poverty, as defined by living off of $2 a day or less. Sotero said that although Brazil has completed five of the six mandates needed to transform Brazil into a modern country, the final and most difficult stretch still remains.
Sotero said it will be interesting to see how the current president, Dilma Rousseff, will address this last stretch, and how she maneuvers Brazil on the world stage. Rousseff, who Sotero said lacks charisma but is more pragmatic than her predecessor, Luis Inacio Lula da Silva, wants to improve Brazil’s education and infrastructure, and she recognizes the United States as important to realizing those goals. both Sotero and Flores Trejo pointed out, Rousseff is single-mindedly focused on Brazil’s economy and on how the relations with the US are being framed in this context.
Continuing the discussion, Flores Trejo said that the challenges for Brazil moving forward include overcoming internal struggles, such as figuring out how to continue economic growth with new and strong middle classes and how to meet new demands for goods and services but also for political transparency and effective government without antagonizing the coalition government. In addition, she said Brazil faces regional and international challenges related to its new role as emerging power, including dealing with a new wariness of Brazil’s strength in South America. As Brazilians are finding out, increased influence and economic strength does not automatically translate in effective partnerships with the neighboring countries.
In closing, Sotero said that, moving forward, Brazil will need to forge a good relationship with the United States in order to achieve its goals. He suggested the basis of the relationship might be shared values, which could be fostered with more American businesses starting in Brazil and more Brazilian students st
