Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Economic Impact of More Trade Agreements

Economics / Economic Theory Sep 26, 2010 - 04:26 AM GMT

By: Pravda

Economics

Mauro Dias Lourenço writes:In the second half of the twentieth century, Brazil was one of the countries that grew fastest on the planet, especially until 1979, which includes the period of the so-called "economic miracle," from 1967 to 1973. The fact that the phenomenon coincided mostly with the period of military dictatorship (1964-1985) does not mean that resulted from an authoritarian regime in which the State has stimulated the development.


Had the country remained within the institutional mold, which had been followed since 1945, to be sure, growth would have been the same. Or even greater, as you can see looking at the years (1956-1960). It was a trend coming from the Vargas Era (1930-1945).

Why, then, has the country stopped growing or was reduced to an insignificant growth in the last 30 years? One explanation arises when one makes a comparison with China. By coincidence, by the year 1979, China corresponded to the opposite of Brazil in terms of economic growth. At that time, anyone who looked down upon the two countries, probably would bet all the chips on Brazil as the nation with the most promising future.

What went wrong? An explanation that springs from history is that, despite being ruled by an iron communist regime, China has managed to close a bilateral agreement with the U.S. that allowed it to export to that country without tax or tariff barriers. Brazil, which appeared as the most suitable partner for this type of agreement, not only because it always automatically aligns its positions with that of Washington, but preferred to remain equidistant, wedded to the idea that the state as a promoter of growth would be sufficient to put it on the path of development.

While it remained protected by the state-leviathan, Brazilian foreign trade remained stifled and with no future. It took until 1990, hence the epithet that historians have given to the 80 years as a "lost decade." Without any other way, the rulers at the time were left with no other option but to dismantle the state, beginning with the process of privatization of defective state enterprises that historically have functioned as having sinecure jobs and currency exchange in the game of political parties.

Strictly speaking, of the processes of privatization that began in the '90s, the only one that has not shown tangible results are the railroads. And fault does not fall on the enterprises, but the governments that were unable to administer the funds raised through privatization. According to the data of the National Association of Railway Transport (ANTF), where from 1994 to 1997 there was a loss of $2.2 billion to the state between 1997, and in 2009 $11 billion was raised from taxes and leases.

But the investments by the government in the FHC and Lula in that sector were ridiculous: in the same period, the federal government invested only $1.1 billion, while the concessionaires applied R $21 billion in recovery of the mesh, adoption of new technologies, professional training and acquisition of rolling stock.

Recently, the idea of a state-leviathan prevailed again, depending on the need to use the state as a sinecure office. And the result is that the state machine has grown again with the hiring of thousands of employees and the allotment of 37 ministries with unprepared politicians, beyond the machinery of government, which makes the management mediocre. Not to mention the creation of the "Bag Famíly," which has stimulated the growth of informal work. The bill, of course, ends up being paid by civil society, one that works and collects taxes.

What to do? If the idea is to increasingly swell the wasteful state more than it is, there is a way out. That is to do what the current government has not done, sign trade agreements with nations or representative blocks that stimulate the domestic economy. Remember the example of China 30 years ago.

(*) Mauro Lourenço Dias is a professor of graduate studies in Transport and Logistics at the Department of Civil Engineering, State University of Campinas (UNICAMP). Site: www.fiorde.com.br E-mail: fiorde@fiorde.com.br

Translated from the Portuguese version by:

Lisa Karpova

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in