Discussion: Zero Growth Rate
NOW FOR AN ORIGINAL PAPER ASSIGNMENT:Discussion: Zero Growth Rate
Lula was ineligible to run again in 2010, but such was his popularity that any candidate he endorsed would have a good chance of winning. He chose a woman, Dilma Rousseff, who ran and won, becoming Brazil’s first female president.
Lula was a tough act to follow. As president from 2003 to 2010, he managed to balance economic reforms and social justice. With Lula at the helm, the richest Brazilians (top tenth) got 11% richer, while the poorest (bottom tenth) gained 72%, thanks in part to the Bolsa Familia (Family Allowance), a plan that uses tax revenues to give cash subsidies to the poorest Brazilians provided they send their kids to school and get regular checkups at free public health clinics.
Despite a sluggish economy slowing to a nearly zero growth rate, Rousseff’s personal approval rating hit record highs in the summer of 2012. “We are living in a period of crisis for the advanced economies,” Rousseff wrote in an article on the Brazilian model. “Debt accumulation is no substitute for rising wages, and market self-regulation is no substitute for government regulation. The rich world is now searching for a more balanced economic model and there are some common policies we should all pursue in 2012.” According to Rousseff, in the short span of eight years, more than forty million Brazilians were lifted “out of poverty and into the middle classes, with access to health, education, credit and formal employment.”*
Notwithstanding bureaucratic obstruction, corruption, poverty, illiteracy, and inequality remain major obstacles to a Brazilian economic miracle. Yet Brazil does have a lot going for it. Measured by both population and landmass, it is the seventh-largest country in the world.
Thanks to Lula’s popularity and political skills, Rousseff inherited a strong and stable government, a fiscally sound state, and a large, diversified service sector and modern industries including automotive, aeronautical, and electronics. That’s the good news. The bad news is that Mother Nature is paying a heavy price.
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