Jason Barton

Professional Information and Energy News

A Recipe for Brazil’s Resurgence

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The four years I was privileged to live in Brazil, from 2002 until 2006, were a pivotal time in the country’s success. The groundwork may have been laid by Pres. Fernando Henrique Cardoso in the 1990’s (I had the pleasure of meeting him when he came to speak at the school where I was teaching), but it was during Lula’s first term (2003-’07) that the country took off. While doing my PhD research on Brazilian sugarcane ethanol production (2006-2010) there was still abundant optimism both inside and outside Brazil for the country’s economic and political future.

While it has since plateaued, the article below provides a three-point recipe for its resurgence:

1. Reform the tax code and public spending. Make taxes less burdensome and more transparent, and direct public funds toward infrastructure instead of bloated entitlements.

2. Open the economy and integrate with the rest of the world.

3. Reform the political system to diminish corruption and pork barrel spending.

In my (admittedly limited) experience, these are bang on. A colleague and I earned roughly the same salary, but he paid 40% less in taxes than I did, and no one, including experienced Brazilian accountants, could explain why. The vestiges of import substitution policies from the 1980’s have continued to hold the country back. And the politics are so dirty that one prominent politician, Paulo Maluf, continues to serve in their congress even while he is wanted by Interpol. His name has been turned into a verb, malufar, which means to steal.

Brazil is a great country populated by wonderful people, and I am grateful to have lived and worked among them. Like many countries, including mine, it needs reform.

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Brazil’s future

Has Brazil blown it?

A stagnant economy, a bloated state and mass protests mean Dilma Rousseff must change course

FOUR years ago this newspaper put on its cover a picture of the statue of Christ the Redeemer ascending like a rocket from Rio de Janeiro’s Corcovado mountain, under the rubric “Brazil takes off”. The economy, having stabilised under Fernando Henrique Cardoso in the mid-1990s, accelerated under Luiz Inácio Lula da Silva in the early 2000s. It barely stumbled after the Lehman collapse in 2008 and in 2010 grew by 7.5%, its strongest performance in a quarter-century. To add to the magic, Brazil was awarded both next year’s football World Cup and the summer 2016 Olympics. On the strength of all that, Lula persuaded voters in the same year to choose as president his technocratic protégée, Dilma Rousseff.

Read the entire article here.

Written by Jason

October 4th, 2013 at 2:48 pm