Names'

1

• Names.

2
General Information

• Boarders 10 countries of S.America
• 4,578 miles of coastal area

3
History

• Discovered in 1500 by Portuguese
• 1690-1800 Gold Rush
• Lead to boom in Diamonds and Coffee
• 1822 Independence
• 2 monarchs ruled up to 1889
• 1889-1964 Federal and Presidential System
• 1964-1985 Military Rule
• 1985 - Present day
• Federal and Presidential System

4
General Information

• Population

5
General Information

• Currency Real (3 reais to the pound approx.)
• Races
• Indians (locals)
• Europeans
• Africans
• Language
• Portuguese
• Religion
• No official Religion
• 90 of pop are Roman Catholic

6
Economic Figures

• GDP (annual growth rate) 0.8
• Gross Domestic Investment ( of GDP) 20.7
• Gross Domestic Saving ( of GDP) 18.6
• GDP per capita (US) 3,437
• Inflation (CPI, ) 8.4
• Fiscal Balance ( of GDP) -5.6
• Current Account Balance (US bn) 24.4
• Trade Balance (US bn) -1.2
• Total External Debt (US bn) 236.9
• Debt to GDP ratio () 42.4

7
Military

• Active 337,800 (Reserves 1,2 million)
• Navy 58,400
• Defense expenditure 1.1bilion (3 of GDP)
• Manpower availability
• Males age 14-49 43,489,704

8
Government

• Voting Compulsory from Age 18-70
• Type Federal Republic
• The 3 independent Powers
• 1. Executive
• 2. Legislative
• 3. Judiciary

9
Health Welfare

• Varies from region to region.
• Larger Cities have sufficient doctors.
• Hospitals, 16,000
• Physicians 200,000

10
Workforce

• Labour force 57 million
• Sectors
• a) Services 42
• b) Agriculture 31
• c) Industry 27
• Unemployment Rate 7 (est. 1997)
• GDP composition by sector
• Services 49
• Agriculture 13,
• Industry 38

11
INDUSTRY

• OIL
• 2nd largest oil reserve in South America after
  Venezuela.
• 1.4 million barrels per day in 1999.
• Congress enacted legislation establishing
• state-owned oil company PETROBRAS.
• Partnership with private firms (Texaco, Shell,
  Repsol, Chevron)
• 13 crude oil refineries, 11 which belong to
• PETROBRAS.

12
INDUSTRY

• Petroleum Petrochemicals
• Experienced rapid expansion.
• Brazil has 3 complexes
• Bahia
• Rio Grande do Sul
• Sao Paulo

13
INDUSTRY

• ETHANOL
• Research conducted in late 1960s to identify
  economically viable alternative to oil as fuel
  source.
• Brazil has capability of a 4 million gallon
  annual output.
• Environmentally friendly as reduces levels of
  carbon monoxide.

14
INDUSTRY

• NATURAL GAS
• 4th largest natural gas reserves in South America
  behind Venezuela, Argentina and Peru.
• Gas consumption expected to rise from 3 to 10
  by 2010 as country works to become more
  self-supporting in the oil sector.

15
INDUSTRY

• COAL
• Reserves are estimated at 13.2 billion short tons
  of lignite and sub-bituminous coal, largest in
  Latin America.
• Imports significant amount.
• Used predominantly for domestic steel industry.

16
INDUSTRY

• ELECTRICITY
• Capacity of 62.4 million kilowatts, 87 of which
  is hydropower.
• Worlds largest hydroelectric complex, the ITAIPU
  facility on the Parana River.
• Imports electricity from Argentina to meet
  growing power demand.

17
INDUSTRY

• NEW INDUSTRIES
• Motor vehicle ind.
• One million vehicles annually from components
  100 made in Brazil.
• AIRCRAFT INDUSTRY
• 6h largest in the world.
• EMBRAER - sold to customers in the United States
  and Western Europe.

18
RESOURCES

• IRON
• 48 billion tons- enough to supply world demand
  for next 500 years.
• Deposits of manganese, bauxite and nickel.
• GEMS
• 90 of worlds supply (diamonds, topazes,
  amethysts, tourmalines and emeralds).

19
TRANSPORTATION

• LAND
• Government given funding priority to roads and
  highways.
• Railway network is small in proportion to
  highways ( 1.1 million miles of roads).
• Air

20
TRANSPORTATION

• FLUVIAL MARITIME
• Good potential for economic use of waterborne
  transport due to long coastline
• Brazil transports more than 350 million tons
  annually by water.
• 16 fully equipped harbours.
• Busiest ports are
• Santos
• Rio de Janeiro
• Porto Alegre

21
COMMUNICATIONS

• TELEPHONE
• MEDIA
• Over 2500 broadcasting stations.
• 280 Daily newspapers ( most have small
  circulation).
• TELEGRAPH SERVICES
• Most widely used in the country.

22
Internationalisation

• Structural Reform 1990s
• trade liberalisation
• deregulation
• privatisation (PND)
• Int.. domestic companies on equal footing
• The Real Plan 1994
• Present Government Target
• cut inflation rate
• fiscal targets agreed with IMF
• stem rise in public debt

23
Internationalisation 2

• International Co-operation Agreements
• Mercosul
• EU/Mercosul
• South-South Consultation Co-operation Group
• GSTP
• UN, IMF, World Bank, OAS, ALADI
• potential integration in NAFTA
• other inter-Latin America agreements

24
Investment in Brazil

• Very open towards FDI
• (US 15,706m Jan-Jul 2000)
• Main investors ( of FDI)
• USA 23.8
• Spain 23.5
• Portugal 8.7
• France 8.6
• FDI by sector
• Services 74.6
• Industry 23.7

25
Investment in Brazil 2

• Exports to Imports from
• EU 26.4 28
• USA 23.6 22.8
• LAIA 21.1 23.3
• Asia 14.5 11.7
• Attractive emerging market

26
Risk

• Political risk
• corruption, judicial system
• Market risk
• volatile inflation rate. Real
• Credit risk
• Moodys upgrade
• Security risk
• border unrest

27
Sources

• www.brazil.org.uk
• www.worldbank.org
• www.bndes.gov.br/english
• www.state.gov/www/background_notes/brazil_0700
  _bgn.htm
• Latin American Spotlight, Dresdner Bank
• Lateinamerika AG, September 2000
• Moodys upgrades Brazils rating, FT 17.10.2000
• Several articles from The Economist (2000)