Brazil's Role in Globalization

Category: Globalization

Nikki Bose and Liz Gannett
The structure of Brazil’s economy includes three major components: “a floating exchange rate, an inflation-targeting regime, and a tight fiscal policy.” Having the strongest economy out of all of South America it seems to have a successful structure. Brazil’s agricultural market, mining, and manufacturing are some of the areas that help make it a successful economy. Due to areas such as these, the currency in Brazil has “resumed appreciating.” Brazil has developed many macroeconomic policies that have promoted its involvement in world markets, and in turn, globalization.
The GDP real growth rate, as of 2007, is 4.9%. The inlfation rate in 2007 was 3%, which was a 56.52% decrease.
Brazil is becoming a crucial leader in “the South,” or South America, as a leading economic country in its area. In being an economic leader, Brazil has the capacity to build a new international geography and develop the countries of South America. If Brazil succeeds in doing so, as they seem to have been doing, they can
”reinforce the international system” throughout South America. “Brazil’s export earnings grew from $43.5 billion in 1994 to an estimated $90 billion by the end of 2004.” Any export increase is going to increase an economy’s stability and exposure to globalization. “Since 1985, Brazil has managed to develop a representative democracy, but has failed so far to incorporate its majority of poor people into the global economy,” so although Brazil has taken steps towards an improved economy and promoting globalization in South America, they still have a far way to go.