The neoliberal economic model in force in Brazil shows clear signs of exhaustion in 2015 aggravated by the recessive economic adjustment adopted by the government Dilma Rousseff. The neoliberal model implemented in Brazil contributed to the increase of its internal and external economic vulnerabilities. Instead of practicing fiscal tightening, levied on households and businesses and undermines the development of the country, the government Dilma Rousseff should reduce the burden of payment of the public debt lengthening the time and also public spending to the minimum necessary to so that has sufficient savings to invest in the expansion of the Brazilian economy preventing its stagnation. The main measure that should be adopted by the government Rousseff should be the replacement of the neoliberal model in force for other national developmental of selective opening of the Brazilian economy to promote Brazil's development on a new basis. Only with the implementation of effective change in the Brazilian economy, Dilma Rousseff can avoid falling of his government before completing his term.
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How to change the directions of brazil economy
1. 1
HOW TO CHANGE THE DIRECTIONS OF BRAZIL ECONOMY
Fernando Alcoforado *
The victory of Syriza party in recent elections in Greece signals in the direction that it is
possible to reverse the situation experienced by the people of the world to be governed
by the financial capital holders who has imposed his dictatorship on a global scale since
1990 when it was deployed neoliberal model in almost all countries of the world,
including Brazil, Fernando Collor government and maintained by Itamar Franco,
Fernando Henrique Cardoso, Lula and Dilma Rousseff governments that accepted the
way cowardly the charges of domestic and international financial capital and
contributed to cause a real havoc in the Brazilian economy from 1990 to 2014.
The neoliberal economic model in force in Brazil shows clear signs of exhaustion in
2015 aggravated by the recessive economic adjustment adopted by the government
Rousseff with the Brazilian economy with a tendency to stagflation (recession with
inflation), sharp drop in sales of goods and services, increased inflation rates (8% per
year), sharp rise in unemployment that spreads throughout the economy, extremely high
tax burden (40% of GDP- Gross Domestic Product), high of exorbitant electricity tariffs
(28% increase over 2014), marked increase fuel prices (20% only for gasoline),
increasing public debt, precarious transport infrastructure and energy, failure of public
education and health services, deindustrialization, logistical bottleneck and precipitous
drop in the trade balance. Even the IMF projects the stagnation of Brazil for 2 years.
The neoliberal model implemented in Brazil contributed to the increase of its internal
and external economic vulnerabilities. The internal vulnerability of the Brazilian
economy caused by the neoliberal model lies in the fact not generate enough domestic
savings to invest in the expansion of GDP, resulting in the increasing dependence of
Brazil of foreign capital that makes the Brazilian government has to raise the base rate
interest of the economy (Selic) to attract foreign capital, which in turn contributes to
further increase the public debt which reached R$ 2.12 trillion in 2014 corresponding to
56.8% of GDP. The continued increase in domestic public debt makes the Brazilian
government has to allocate currently almost half of the its budget to pay principal and
interest to its creditors that makes the Brazilian State has no resources to meet the most
basic needs of the country in education, health, housing, energy infrastructure and
transportation, among others.
The external vulnerability of the Brazilian economy caused by the neoliberal model is
based in the fact that in 2014 the foreign debt of Brazil grew 48% compared to 2013 to
US$ 750 billion and over US$ 379 billion of the country's reserves. This means that
Brazilian monetary reserves wouldn´t offer coverage of Brazilian foreign debt. It should
be noted that Brazil left the sixth position in 2013 to third place in 2014 in the list of
countries with the largest amount of debt to foreign creditors, pointed report released by
the IMF, second only to Spain, according to most indebted country, and US leading the
world ranking [See Article Dívida externa do Brasil cresce 48% e vai a US$ 523,7
bilhões (External debt of Brazil grows 48% and goes to US$ 523.7 billion) posted on
the website
<http://www.correiobraziliense.com.br/app/noticia/economia/2014/08/16/internas_econ
omia,442650/divida-externa-do-brasil-cresce-48-e-vai-a-us-523-7-bilhoes.shtml]>).
Given the worsening of the current situation of the Brazilian economy, the Brazilian
people needs to mobilize to demand the current power holders to seek immediate
2. 2
renegotiation with creditors of public domestic debt of the country aimed at reducing
the burden of payment for 1/3 or ¼ of the federal budget. This action should be
accompanied by the implementation of draconian cuts in public expenditure costing
reducing the number of ministries from 39 to 15 or 20 and the elimination or reduction
to a minimum of commissioned positions that are about 20 thousand. Instead of
practicing fiscal tightening, charged on households and businesses and undermines the
development of the country, the government Dilma Rousseff should therefore reduce
the burden of payment of the public debt lengthening the time of payment and also
public spending to minimum necessary so that would have sufficient savings to invest in
the expansion of the Brazilian economy preventing its stagnation.
In announcing the nation the set of measures described above, Dilma Rousseff should
also mount a crisis cabinet composed of persons of the highest competence and the
highest ethical and moral feedback and respectability to get the nation's respect to
ensure the governance of their government and prevent the end of her government
before of his term. The adoption of these measures should be accompanied by other, for
example, the replacement of the neoliberal model in force for other national
developmental character of selective opening of the Brazilian economy to promote the
development of Brazil on a new basis and avoid economic stagnation in progress. Only
with the implementation of effective change in the Brazilian economy, Dilma Rousseff
can avoid the end of his government.
The selective national developmental model of openness of the Brazilian economy
would include: 1) the substitution of floating exchange rates in effect for the fixed
exchange rate to avoid the dizzying rise in current dollars; 2) the input and output flow
control of capital, particularly speculative; 3) the nationalization of the banks to ensure
liquidity to citizens and businesses; 4) selective import of raw materials and essential
products from overseas to reduce expenditures in currency of the country; 5) the
reintroduction of market reserve in areas considered strategic for national development;
and, 6) the re-nationalization of privatized state enterprises considered strategic to
national development. From the foregoing, it is seen that the national development
project would cause Brazil to take on the direction of your destination, unlike the
neoliberal model in place that makes the future of the country is dictated by market
forces all of them committed to national and international financial capital.
*Fernando Alcoforado , member of the Bahia Academy of Education, engineer and doctor of Territorial
Planning and Regional Development from the University of Barcelona, a university professor and
consultant in strategic planning, business planning, regional planning and planning of energy systems, is
the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova
(Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São
Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado.
Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e
Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX
e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of
the Economic and Social Development-The Case of the State of Bahia (VDM Verlag Dr. Muller
Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe
Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e
combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011)
and Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012),
among others.