The University of Tampa delegation had the privilege of listening to Brazil’s leading Economist, Dr. Porto. His style was subtle, with soft undertones and a brilliance that was apparent to all of us, even though he spoke with a heavy accent.
The last 5 years have been a challenge for Brazil. The country has been plagued by severe misallocation of resources, oil prices out of control, and political corruption where the budget surplus was falsified by the budget office and there was a total fabrication of the numbers. “When they find something illegal, they change the law to make it legal,” Dr. Porto stated.
“Our major problem is (political) stupidity.” The net effect? The expected growth rate for Brazil for 2015 is ZERO. Not good as the Olympics are around the corner.
The political leadership has made economic policy errors, and created problems that effect the 200 million who call Brazil home. This has resulted in a loss of investor and consumer confidence — a recipe for disaster.
Poverty continues to be a major challenge with millions living in Favela’s (or slums).
The economic challenges are aplenty, as quality of life is based on the great wealth divide between the have’s and the have not’s. This bimodal distribution creates a socio-economic class system. The sad part is not that the poor have no money, but that they have no hope.
About Hemant Rustogi