Seen from the inside the much publicized crisis in Brazil shows signs of exaggeration just as the previously reigning euphoria used to. No doubt the current state of affairs slashes the myth of the country’s once supposed immunity to global contingencies. Without raw materials in high demand from China as tail wind, Brazil now faces the challenge of putting its economy back on track while containing mounting government expenditure.
Economy is no longer a tool for the implementation of policies of choice, but rather a bitter mathematical pill for financial wounds yet to heal. The setback strikes hard on the country’s self esteem as recession sets in. Having played the cicada of Aesop’s fable, it is up to Brazil’s specific weight to ensure that recovery is just a matter of time.
A cycle has definitely ended, bringing a new time of awareness which virtue is to put one’s feet firmly back on the ground. The 1980’s and the early 1990’s – when Brazil lacked even the basics of a reasonably organized marketplace – were tough enough moments, but ultimately led to resurgence in the form of a stabilization plan. Why not again now?
Maybe for the time being Brazilians will not be buying as many cars as usual, but maybe now local industry can more cost efficiently target a wider customer base beyond the country’s borders. A number of items from the resilient Brazilian industry may also regain competitiveness, not to mention services, its already mighty agribusiness or opportunities in the huge unexploited potential for tourism, just to name a few.
The Brazilian State has lately had ultimate proof that several activities, including public services, will work better in the hands of the private sector, which more than ever points towards PPP’s and concessions in several segments. Social inclusion no doubt remains an extremely demanding task. No more with magic formulas, but instead through the upbringing of the new generations through quality education, itself another area for business exploration.
Brazil has not blasted off nor has it blown up as the magazine predicted at different occasions. It has remained the dormant giant destined to wake up one day. Betting on its future is only logical, given its intrinsic attributes. After all its collaterals – natural resources and population – do far exceed the risks.
History tells us that men of vision have repeatedly seized moments of turmoil to succeed greatly. Once again this may well be the case now.
