Brazil: The Biggest Country In South America

Brazil is the biggest country in South America and also one of the biggest countries in the world. Due to Brazil’s size it boarders all of the countries in South America except for Ecuador and Chile. Brazil has many natural resources available in the country. Outside of the traditional cocoa and coffee, Brazil is also a major exporter of soybeans, oranges and many other warm climate crops. Brazil has some of the world’s largest iron ore deposits and is now considered one of the biggest gold producers. Brazil is the largest hydroelectric power producer in the world and the fishing potential is significant. Brazil now produces crude oil and has developed their sugar industry. The Amazon basin with its tropical rain forest has potential for wood …show more content…
The main risks include impeachment of the president, the resignation of Finance Minister, Brazil losing the investment grade credit rating it currently has, and Petrobras debt collapsing due to the scandal. Dilma’s impeachment and a subsequent resignation of the finance minister would be chaos and pull the Brazilian economy to the lowest levels. Petrobras’ decline and a credit rating downgrade to junk are the two most likely risks to occur. The most important economic decision for Brazil is to reduce inflation and the finance minister has started to reverse many tax breaks given to certain industries and small businesses that will help the government’s cash position. By instituting these changes there will potentially be a primary surplus instead of a deficit.
On the political system area of the Diamond of Sustainable Growth, Brazilians give President Dilma Rousseff bleak ratings for her management of many key issues. Even with the low ratings from the citizens, Rousseff was able to win the October election by a very slim margin. The biggest issues that politically Rousseff needs to improve are corruption, crime, the economy, public works, educational system, and poverty across the