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Brazilians always spoke fondly of their country as the Land of the Future. They felt God endowed them with endless resources that one day would make them a prosperous and powerful nation.

Brazil is a giant of South America. Its population of 190 million people is the fifth largest in the world. In area, Brazil is also the fifth largest in world.

So, for decades, God’s endowed country of the future never materialized.

During the 80’s and 90’s, Brazil had earning the dismal distinction of being the Third World’s largest debtor nation. The country was unable to generate enough funds just to pay the interest charges on its debt load, and was borrowing heavily just to stay afloat.

In 2002, amid a great financial turbulence caused by the Argentinean meltdown, Brazil went to the polls. The International Financial community was nervous about the possibility that a Lula victory would result in a default of the country’s foreign debt. And his opponents warned his lack of education and English language skills would be ruinous for Brazil’s diplomatic stature.

By 2006, Brazil paid off its IMF loans. In 2007, it won coveted investment grade ratings. In 2008, it became a net foreign creditor for the first time and, in 2009, it pledged to lend the IMF billion dollars.

It is a magical transformation that have occurred in Brazil over the last 6 years when the country was on the edge of debt default. Today, Brazil is the preferred destination for international investors. In 2008, productive foreign investment rose to a record of US$ 45.1 billion, second only to China among developing countries.

Brazil – Emerging Economic Superpower

As the old joke goes, Brazil is the country of the future — and always will be. Now, in the middle of the worst global downturn for decades, Brazil is now a country of the moment. Despite a little downturn in the last two quarters, the Brazilian economy is giving big signals of recovery, as can be seen from public investment, foreign capital inflows and even domestic demand.
Brazil is now the tenth largest economy in the world. Its economy rests
on strong fundamentals: inflation at 5% annually, sustainable and fiscal stability, with a primary federal budget surplus of 4.1% of GDP in 2008.

According to Lula, Brazil will be one of the six biggest economies in the world within 10 years.

Brazil’s positive trade balance and the flow of productive investment have contributed to building foreign currency reserves, which reached US$ 206.8 billion at the end of 2008.

In 2007, Brazil launched the Growth Acceleration Program (PAC). There are 2,198 infrastructure projects planned in the areas of transportation, energy, sanitation, housing, health and water resources. This program will continue to bolster the Brazilian economy during the world economic crisis.

Sam Zell, chief executive of Chicago Tribune and chairman and president of Equity Group Investments LLC, said Brazil’s large population of 180 million people, highly-trained work force, and array of crops and natural resources has made it largely self-sufficient.

The World’s Fifth Largest Automobile Market

New car sales in Brazil have risen four out of the past five months, making the world’s fifth largest automobile market, even as makers elsewhere face plunging demand.

Many Brazilians auto manufacturers’ officials said they expect to move forward with planned investments over the next four years, including new plants, new auto lines and renovations.

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The World’s Fourth Largest Manufacturer of Aircraft

Renowned for its technological capacity and creativity, the Brazilian aerospace industry today is the largest in the Southern Hemisphere and competes in various segments of the world market. Embraer, one of the largest aircraft manufacturers in the world, for example, is the leader in regional aircraft with up to 120 seats, in addition to producing aircraft parts.

Brazil Becomes The Breadbasket of the World

It’s no exaggeration to say that Brazil is becoming the world’s agriculture superpower. With modern, efficient and competitive, Brazilian agribusiness is prosperous,
safe and profitable. One of the few countries self sufficient in food and one of the world largest food exporters.

With 12% of all fresh water in the world, regular rainfall, abundant sunshine and more arable land than any other country, Brazil has the potential to practically triple its current grain production.

For decades the only major export from this country was coffee. Today, Brazil is the number one exporter of beef, poultry, soybeans, sugar, tropical fruits, coffee and orange juice. It’s also one of the world’s top producers of corn, cotton, cocoa, tobacco, and forest products. It also ranks as a leader in foreign sales of beef, chicken meat and tobacco.

79% of Brazilian food production is consumed domestically and 21% is shipped to over
212 foreign markets.

The world’s largest agricultural firms all have operations in Brazil.

Brazil Becomes An Ethanol Superpower

In the 70’s, Brazil introduced the Alcohol Program The 100-percent-ethanol-powered engines was crucial for the development of the domestic ethanol market, the world’s largest for decades. Today, one-fifth of the Brazilian fleet runs purely on ethanol, and Brazil is the sole frontrunner in the races for oil-independence and the green alternative to oil. The country is now the world’s second largest producer, and largest exporter of ethanol and also a world reference in developing renewable energy sources.

Ethanol has 90 percent less greenhouse gas emissions than gasoline — partly because cane absorbs the carbon dioxide while it grows in the fields

The demand for ethanol in Brazil is set to increase by 37%: 27 billion liters in 2008 and 37 billion liters in 2015

Brazil is a pioneer in the development of “flex fuel” technology, launched in 2003, which allows cars to run on gas and ethanol in any proportion. Brazilian excellence in the production of ethanol has made large companies comfortable in developing technology that uses biofuel. Currently, ten multinational carmakers produce more than 100 different models of flex fuel cars in Brazil, which has given the country the distinction of having the largest fleet of flex fuel cars in the world.

The Third Largest Biodiesel Market in the World

Brazil is also the third largest producer and consumer of biodiesel in the world. The National Program for the Production and Use of Biodiesel (PNPB), established in 2004, provides for a mandatory and gradual addition of alternative fuels to diesel. The dynamism of this market in Brazil allowed the initial substitution of 2%, in force since January 2008, which was later increased to 3% in July, requiring the production of 1.1 billion liters. The law stipulates a 5% mixture by 2013, which will stimulate new investments in production and an increase in productivity.

Brazil Becomes An Oil Superpower

They say “God is a Brazilian.” Brazil’s long awaited divine intervention just happened last year with major oil discovered located in sedimentary basins, around 6,000 meters beneath the surface of the ocean.
Brazil will now be among the biggest producers of oil and gas in the world.
The country is at the technological vanguard of deep water production and exploration of petroleum and natural gas reserves.
Petrobras will invest US$ 174.4 billion in the next four years, in the exploration of petroleum and natural gas and the construction of new refineries, among other projects.

This will be a huge boon to Brazil. Oil is one of the most valuable resources the world has to offer, and combined with all the other resources possessed by Brazil, the country is well positioned to become one of the world’s next superpowers.

Lula, The Man Behind Brazil’s Miraculous Transformation.

“His charisma and his ability to mobilize the poor have been remarkable,” said Kenneth Maxwell, director of the Brazil Studies Program at the Centre for Latin American Studies at Harvard University.

“That’s my man right here,” President Obama said at the G-20 summit as Brazil President Luiz Inacio Lula de Silva approached him. “Love this guy. He’s the most popular politican on earth. It’s because of his good looks.”

“The banks love Lula, and business gets along with him quite well,” says David Fleischer, a political analyst and professor emeritus at the University of Brasilia.

Luiz Inácio Lula da Silva, nickname Lula, is the 35th and current President of Brazil.
Having run for President three times unsuccessfully since 1989 election, Lula achieved victory in 2002, and was inaugurated as President on January 1st, 2003. He was elected again in 2006, extenting his term as President until January 1st 2011.
His administration respected Fernando Henrique Cardoso, his predecessor, achievements that turned Brazil one of emerging economies and part of the BRIC group.
Lula put social programs at the top of his agenda. Lula’s leading program since very early on has been a campaign to eradicate hunger, following the lead of projects already put into practice by the Fernando Henrique administration, but expanded as Fome Zero (Zero Hunger).
The largest program is called Bolsa Família, adapted from Fernando Henrique Cardoso administration, are credited with helping millions eat and keep a roof over their heads. The subsidies require that children attend school and receive their vaccinations.
Extreme poverty has been cut in half, and 20 million have advanced to the middle class.
During his second term, Lula has approval ratings of over 70%, earning him praise from US President Barack Obama as “the most popular politician in the world.

John Santos – john.santos@live.com

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