Brazilian model of development at the crossroads Cover Image

Brazylijski model rozwoju na rozdrożu
Brazilian model of development at the crossroads

Author(s): Barbara Liberska
Subject(s): Economy
Published by: Instytut Nauk Ekonomicznych Polskiej Akademii Nauk
Keywords: Brazil; development model; globalization; BRICS; China; middle income trap

Summary/Abstract: In recent decades, Brazil experienced a profound economic and social transformation. Its model of development assured macroeconomic stabilization, dynamic growth of exports, inflow of foreign investments and relatively high economic growth. Social programs contributed to signifi cant reduction in poverty and rise of living standards of the poorest group. Brazil’s economic success was accompanied by an improvement of the country’s position in the world; today, Brazil plays an important role in many international organizations and is an active member of the BRICS and G20 groups. Closer economic relations with China bring benefi ts to both countries and at the same time support growth in developing countries. The paper presents the assumptions and results of the Brazilian post-2001 model of development. It aims also to answer the questions of why has Brazil’s growth rate declined after years of economic success, and is the slowdown only temporary or could the country fall into the “middle income trap”? Recommendation on the direction of structural reforms that would restore dynamic growth concludes the paper.

  • Issue Year: 2014
  • Issue No: 4
  • Page Range: 451-475
  • Page Count: 25