Download THE BRAZILIAN ECONOMY TODAY: Towards a New Socio-Economic Model?

King’s Brazil
Institute
THE BRAZILIAN ECONOMY
TODAY:
Towards a New Socio-Economic Model?
Friday 4 May 2012
ROOM S-2.23 STRAND BUILDING
KING’S COLLEGE LONDON
STRAND CAMPUS
LONDON, WC2R 2LS
Organised By: Prof Anthony Pereira - Director, King’s Brazil Institute
Prof Lauro Mattei – UFSC-Brazil and Visiting Research Fellow, King’s Brazil Institute
INTRODUCTORY NOTES
Since the beginning of the 21st century, Brazil has been considered one
of the most important countries in the world, and there is much research
which shows that the Brazilian Economy has played an important role in the
new economic global order.
After almost two decades of economic crises, Brazil is recovering its
economic model and today has one of the most consistent patterns of
economic growth of the new emergent countries, particularly since 2003
when the Federal Government implemented a strong macroeconomic policy
to keep inflation under control. At the same time, the economic policy
managed to achieve high primary surpluses. These decisions have permitted
the government to reduce the interest rates partially, in spite of the fact that
Brazil remains with the one of the highest interest rates in the world.
It has been suggested that Brazil has a Domestically Oriented Economy
Model, which is based on strong inflation control and huge expansion of
credit, particularly in the public financial system. This model helped to
increase the purchasing power of the expressive part of the population
(poor), which has caused a positive impact across the whole economy,
especially in the consumption and investment functions, and has promoted
important GDP growth.
At the end of 2011, it was shown that Brazil ranked as the 6th largest
economy in the world, its GDP overtaking the United Kingdom’s. In spite of
all these facts, some structural economic problems remain in the public
arena. The country still has one of the highest income inequalities in the
world; there is also one of the highest land concentrations in the world; and
the industrial production sector has one of the lowest levels of
competitiveness amongst emergent countries in the global trade.
Additionally, public debt has significantly increased since the last
decade. This fact causes enormous macroeconomic troubles and reduces the
potential of public investments, particularly in key areas. In the long run,
this fact could affect the Brazilian Economic Growth Model, with regards to
the economic and social changes that have happened in Brazil recently.
These facts raise some questions: Is the Brazilian Economic Model
sustainable? Can exportation based on intensive use of natural resources
and low technological modernization be competitive in the future? Is there a
limit for this economics model if it is financed by public debts and
dependent of external save? Is it possible to maintain high growth rates of
GDP based only in a domestically oriented service economy?
OBJECTIVES
 The main objective of this seminar is to open a debate about the
Brazilian Economic Model and its role in the new economic global
order. In specific terms we expect to create a regular discussion about
the problems that are present in this model, which could put an end to
most of the economic advances that the country achieved in the first
decade of the current century.
 Moreover, we expect to discuss the main challenges for the Brazilian
Socio-Economic Model in the context of global economic crises.
 Finally, we also would like to discuss other terms involved in the
Brazilian Socio-Economic Model that are absent in the discussions in
the international debates about Brazil.
THE PROGRAMME
The seminar has a very concentrated programme and a short time in
which to discuss all issues in the agenda. So, it is organized in two main
sessions as you can see below:
2:00-2:15
WELCOME AND INTRODUCTION
Prof Anthony Pereira –Director of KBI
Prof Lauro Mattei –Visiting Research fellow at KBI
2:15-4:15
FIRST SESSION – THE BRAZILIAN ECONOMY TODAY AND
ITS CHALLENGES
CHAIR: Prof Lauro Mattei - Visiting Research Fellow, King’s Brazil
Institute
2:15-2:55: Is Brazil’s current growth acceleration the world’s most
overrated boom?
Prof Gabriel Palma – University of Cambridge
2:55-3:35: The Economic, financial and trade relations in Brazil
today: a general panorama and challenges
Prof André Moreira Cunha –UFRGS-Brazil and Visiting
Research Fellow, University of Cambridge
3:35-4:15: Questions and Answers
4.15-4.30: Coffee Break
4:30-6:00
SECOND SESSION – THE SOCIAL SITUATION IN BRAZIL
TODAY AND ITS CHALLENGES
CHAIR: Prof Anthony Pereira – Director, King’s Brazil Institute
4:30-5:00: Labor market, occupational changes and income
distribution
Prof Alvaro Comin – King’s Brazil Institute
5:00-5:30: Poverty reduction and social policies: successes and
challenges
Prof Anthony Hall – London School of Economics
5:30-6:00: Questions and Answers
6:00-6:10: Closing Remarks
Prof Lauro Mattei – Visiting Research Fellow, King’s Brazil
Institute