I had the pleasure of sharing a
one hour long taxi cab ride with Arturo and Marisol on a trip to Walmart. This
hour long trip gave us a lot of time to chat with the cab driver who gave us
his view on Brazilian culture and current events. The most interesting
discussion we had was about the “Jeitinho Brasileiro”, which we have previously
discussed before the trip. The taxi cab driver stated that the “Jeitinho
Brasileiro” was a Brazilian mentality that in the end all problems will resolve themselves. He mentioned that through friendliness, creativeness, positive outlook,
and hope, all problems can be solved. This relaxed mentality is easily seen
here in Rio de Janeiro, where the beaches are always busy despite being a work
day during work hours. Although the relaxed Brazilian mentality is something
that is reflected by their highly criticized slow preparation for the 2014
World Cup and 2016 Olympic Games, Brazil has not been passive during their
recent economic policies.
The American Chamber of Commerce (AmCham) was visited by us on Thursday, June 28th 2012. AmCham’s main goal is to form and facilitate business partnerships between American and Brazilian companies. Here, the superintendent of AmCham spoke to us about the current state of the Brazilian economy. Although a lot of the discussion was a review from earlier class readings, there were several new details we learned during the meeting. Firstly, Brazil continues to be a very nationalistic economy despite recently allowing more foreign competition inside the country. For example, Brazil requires that Petrobras control 30% of new petroleum ventures in Brazil. Nuclear power generation in Brazil is a government monopoly which is controlled entirely by the state owned company Eletrobras. The superintendent also agreed that corruption, bureaucracy, and lack of proportional state representation (each of Brazil’s 27 states has 3 senators), are roadblocks which may present apprehensiveness for investors interested in Brazil.
The economic effects of the 2014 World Cup and the 2016 Olympics were also discussed. The biggest difference between the World Cup and the Olympics is that the World Cup is spread throughout the country, with money for infrastructure being invested in several Brazilian cities. On the other hand, the Olympics will be hosted in only Rio de Janeiro, which means the economic benefits will be constrained to one main city. The biggest effect these events will have is that the infrastructure created will remain. This includes additional housing and transportation systems created which will continue to benefit the Brazilian public after the events are completed.
Another problem preventing additional Brazilian economic development is the Mercosul (Mercado Comum do Sul) economic agreement between Argentina, Brazil, Paraguay, and Uruguay. With Brazil being clearly the most important country economically, Paraguay and Uruguay usually agree with the policies Brazil present. However, Argentina being the second economic power often disagrees and blocks Brazilian policies. An example given is that Brazil wants to sign a Free Trade Agreement with the US, but Argentina is blocking that due to fear of losing jobs provided by Brazilians to the US.
Overall, the trip to the American Chamber of Commerce solidified the knowledge we gained by completing the pre-trip readings. It also gave us additional insight in the Brazilian economy by discussing small details that provide a better picture of the problems that the Brazilian economy currently faces.
The American Chamber of Commerce (AmCham) was visited by us on Thursday, June 28th 2012. AmCham’s main goal is to form and facilitate business partnerships between American and Brazilian companies. Here, the superintendent of AmCham spoke to us about the current state of the Brazilian economy. Although a lot of the discussion was a review from earlier class readings, there were several new details we learned during the meeting. Firstly, Brazil continues to be a very nationalistic economy despite recently allowing more foreign competition inside the country. For example, Brazil requires that Petrobras control 30% of new petroleum ventures in Brazil. Nuclear power generation in Brazil is a government monopoly which is controlled entirely by the state owned company Eletrobras. The superintendent also agreed that corruption, bureaucracy, and lack of proportional state representation (each of Brazil’s 27 states has 3 senators), are roadblocks which may present apprehensiveness for investors interested in Brazil.
The economic effects of the 2014 World Cup and the 2016 Olympics were also discussed. The biggest difference between the World Cup and the Olympics is that the World Cup is spread throughout the country, with money for infrastructure being invested in several Brazilian cities. On the other hand, the Olympics will be hosted in only Rio de Janeiro, which means the economic benefits will be constrained to one main city. The biggest effect these events will have is that the infrastructure created will remain. This includes additional housing and transportation systems created which will continue to benefit the Brazilian public after the events are completed.
Another problem preventing additional Brazilian economic development is the Mercosul (Mercado Comum do Sul) economic agreement between Argentina, Brazil, Paraguay, and Uruguay. With Brazil being clearly the most important country economically, Paraguay and Uruguay usually agree with the policies Brazil present. However, Argentina being the second economic power often disagrees and blocks Brazilian policies. An example given is that Brazil wants to sign a Free Trade Agreement with the US, but Argentina is blocking that due to fear of losing jobs provided by Brazilians to the US.
Overall, the trip to the American Chamber of Commerce solidified the knowledge we gained by completing the pre-trip readings. It also gave us additional insight in the Brazilian economy by discussing small details that provide a better picture of the problems that the Brazilian economy currently faces.
 |
| The group at American Chamber of Commerce (AmCham) |
The visit to the American Chamber of Commerce was indeed very informative. An international perspective on business highlighted similarities and differences with the US. For example, Mr Edward Black, the director of the Chamber, pointed out that defaults on consumer purchases had increased from 6% to 8% last years. The Brazilian government is watching these numbers as they indicate that consumer spending may slow in the next year contracting the Brazilian economy. This was a similar concern of the US government in the latest economic downturn. Mr Black also pointed out that government involvement in indusry, direct ownership as Kelvin pointed out in his blog, was an acceptable business practice in Brazil. This highlights a difference with US business philosophy.
ReplyDeleteI very much also enjoyed the American Chamber of Commerce visit. What an amazing opportunity for Brazil to host the World cup and the Olympics in the near future. It was surprising to me to learn that hosting such events does not always bring economic prosperity. It will be amazing for Rio to gain improved transportation. This will benefit the people by saving them money, gaining safety, and helping ecologically.
ReplyDelete