(Introduction) Brazil is the fifth largest nation in the world by land area and one of the most economically powerful nations in the Western Hemisphere. With an area of more than three million square miles, Brazil occupies nearly half of South America and provides promising resources including iron and other industrial minerals. Its diverse population of African, European, Asian, and indigenous descent has greatly increased to about 200 million. According to many socio-economic characteristics Brazil is identified as a developing country. Having a huge potential and a sufficiently high level of economic development, over the years Brazil has been in and out of the struggle with inflation. Inflation is a large part in the economic well being
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Due to newly found land, the Portuguese who settled needed labor to work the large estates and mines in the new colony. Slavery had a huge impact on Brazil. The country had the largest slave population in the world, which was substantially larger than the United States. Slavery affected both the economy and the ethnic makeup of the Brazilian population. The large number of African slaves that were imported, profoundly affected the ethnic balance in Brazil. African culture was not wiped out thus had a significant impact on Brazilian culture. This is especially the case in Rio De Janeiro, where the slaves were concentrated. Slavery was not legally ended nationwide until 1888. In the Western world, Brazil was the last nation to abolish …show more content…
The plan consisted of a new currency aimed to the U.S. dollar, a strict monetary policy, a severe fiscal adjustment that had a nine percent reduction in federal spending and a tax increase of five percent. Immediately prices began to stabilize. With the annual inflation falling from 2,730 percent in 1993 to about 18 percent in 1995. Cardoso started privatizing some state owned enterprises and gradually opened the Brazilian economy to foreign trade and investment. For a few years, these policies contributed to strong growth rates. Foreign investors began flooding Brazil with large capital inflows that contributed to currency appreciation and the eventual overvaluation of the Real. Following the 1997 East Asian and 1998 Russian financial crises, concerns about Brazil’s overvalued exchange rate and significant fiscal deficits sparked a massive capital
Due to newly found land, the Portuguese who settled needed labor to work the large estates and mines in the new colony. Slavery had a huge impact on Brazil. The country had the largest slave population in the world, which was substantially larger than the United States. Slavery affected both the economy and the ethnic makeup of the Brazilian population. The large number of African slaves that were imported, profoundly affected the ethnic balance in Brazil. African culture was not wiped out thus had a significant impact on Brazilian culture. This is especially the case in Rio De Janeiro, where the slaves were concentrated. Slavery was not legally ended nationwide until 1888. In the Western world, Brazil was the last nation to abolish …show more content…
The plan consisted of a new currency aimed to the U.S. dollar, a strict monetary policy, a severe fiscal adjustment that had a nine percent reduction in federal spending and a tax increase of five percent. Immediately prices began to stabilize. With the annual inflation falling from 2,730 percent in 1993 to about 18 percent in 1995. Cardoso started privatizing some state owned enterprises and gradually opened the Brazilian economy to foreign trade and investment. For a few years, these policies contributed to strong growth rates. Foreign investors began flooding Brazil with large capital inflows that contributed to currency appreciation and the eventual overvaluation of the Real. Following the 1997 East Asian and 1998 Russian financial crises, concerns about Brazil’s overvalued exchange rate and significant fiscal deficits sparked a massive capital