Achievements and Challenges (Bacha)

The new Brazil: Achievements and challenges by Edmar Bacha (4/2013) in Yale Law School. “Economic highlights: inflation and growth record (the old and new: inflation before and after the Real plan; inflation before the Real plan, 1980-1993; inflation after Real plan 1995-2012, GDP growth: some recovery after lost decade); recent achievements (poor families’ incomes grew faster than the rich, 1999-2009; poor families’ gains were unaffected by the financial crisis; unemployment is the lowest ever 2002-2013; net public sector debt is falling 1991-2013; real interest rates are the lowest ever; Brazil is net a to creditor abroad; Brazil’s GDP value and rank soared, 2000-2012); structural challenges (inflation-growth trade-off is unfavorable; tax burden is high; investment rate is low; social security is a big problem; educational levels are poor; infrastructure lags; economy is closed to the world; external bonanza helped but it cannot go on for ever.” PDF Attached