Globalisation refers to the process of increased integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity.
Globalisation has had a profound impact on Brazil’s economic growth in the past few decades. Economic growth is a good indicator of a country’s economic wellbeing and the welfare of its people. Economic growth is a sustained increase in a country’s productive capacity over time. It is commonly measured by the percentage increase in real Gross Domestic Product. Brazil has experienced a steady increase in economic growth since the mid 1990’s, recording an average of 2.2% between 1990 and 2000 and an average 3.6% growth between 2000 and 2008. The increase in economic growth can be attributed to a number of factors some of which include: the promotion of increased trade and investment with foreign nations, trade liberalisation and the stable, predictable macroeconomic environment in which businesses could flourish created by Brazil’s Cardos government between 1995 and 2003. Brazil’s growth, however, was below the 7.2% average of the developing nations as a whole prompting economists to question the economic policies of the Brazilian government.
Brazil’s slow growth increase can be largely attributed to its strong protectionist policies. The Brazilian government has focused largely on protecting its domestic producers from overseas competition using high protection policies like tariffs. This had led to a lack of international competitiveness among the domestic producers and resulted in slow economic growth. In contrast, the Asian economies, which have achieved a growth rate of 7.7% have focused more so on exports led development.
Notwithstanding this, the growth acceleration plan launched in 2007 to increase investment in infrastructure and provide tax incentives to encourage faster and more robust economic growth is credited as one of the major factors behind...