Capitalism and Underdevelopment in Brazil

Pre the Global financial crisis, 2007

Brazil had seen a slow development chiefly due to economic instability in the Northeast region and insufficient infrastructure. Transportation within Brazil was a disaster and the country had no choice but to await developed modes of transport such as roads and railways. The uneven distribution of the country’s natural resources caused the emergence of distinct regions within the country. The poor were stunted by the unequal distribution of income and land. The country’s large population is responsible for widening the gap between the rich and poor.

Underdevelopment of developing countries and the detrimental effect on the economy has always been the main issue in International Relations. Brazil being the 6th largest countries of the world exhibit underdevelopment. The history of Brazil seems to have played an important role in the ineffective social and economic surroundings. But then again, its underdevelopment has been equally influenced by economic exploitation, policies set by the local government as an unreliable economic structure.

Brazil entered into the world of international trade only in the work of the late part of the nineteenth century. This doubled foreign investment and government spending the infrastructure of the country. International trade was vital in building up the infrastructure capital of the country. Over the past few decades foreign investment grew ten-fold which has made international trade as source of income growth and economic development.

Some would say that the involvement of the United States could also be a contributing factor. in the work of the period between the 1940’s and 1960’s a large $1,814,000,000 of loans and investment was injected into Brazil. A massive amount? Not massive thinking about the fact that $2,459,000,000 flowed outside country. Much went out than came in. There’s been considerable aid and loans given to the country, but the structural flaw that has stalled progress.

In 1990’s Brazil and Argentina pushed for a Southern Cone Common Market which has increased exports. The Southern Cone Common Market meant the removal of all trade barriers. Brazil has finally become one of the largest exporters in the world today. It’s without a doubt that the aid from the United States improved Brazil’s economy. It provided essential imports to the country; it influenced a couple of basic economic policies and social institutions. This rehabilitation is a gradual process and the Brazilian government themselves ought to be prepared to modify the economic policy.

Socialism is thought to be a solution to the underdevelopment of the country, by which the economic surplus would be controlled and applied to a productive capital investment. It is an effective solution, but not the only one.

The government of Brazil has failed to transform the nation into a developed one. The failure of the government to distribute resources and capital effectively has rendered it useless. The distinct social contradictions of historic capitalism have contributed to the political instability of the country. It’s clear now that the country needs more of a political solution instead of a financial one. It would be the world’s best interest to create proper conditions in Brazil to grow into a developed nation.

Facts on Brazil