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Globalization in Brazil and its Overall Effects
While the world is going through recession and economic downturn has especially hit hard the developed economies like the U.S and Britain and adversely impacted every other nation in a globalizing economy, a group of nations especially the developing ones like Brazil are on a growth trajectory that has remained almost untouched by the adverse economic impact.
There could be several reasons how and why some of these nations remained unscathed by the economic downturn. The one fundamental reason appears to be their internal strength. The internal strength shared in common by these nations include – a large internal market that fuels their growth, an expanding economy largely due to the investment efforts of their national governments on social sector programs, large foreign investment into their economies in recent years, among several other important factors like foreign remittances from their citizens abroad.
Brazil has grown at a phenomenal pace over the last decade. The nation has already emerged as the leading voice of the major developing nations:
They are a leading voice on the emerging markets in international affairs. They rallied the major developing nations to challenge the rich world's agricultural subsidies, forming a group now known as the G5. At Brasília's prodding, the ambassadors of Brazil, China, India and Russia now meet monthly in Washington to coordinate a common BRIC policy strategy, often to counter U.S. positions. Pushing its "south-south" agenda, the Lula government has opened 35 embassies since taking office in 2003, most of them in Africa and the Caribbean. Brazil also leads a widely acclaimed peacekeeping mission in Haiti, one of the hemisphere's biggest basket cases (Margolis, April 9, 2009).
According to a Goldman Sachs analysis that addresses these economies as BRICs economies (acronym for Brazil, Russia, China, and India), they are the emerging global economic powers that are, in the next 40 years, poised to grow larger than the G6 in US $ terms, and by 2025 they could be larger than half the size of the G6. India’s economy for instance could be larger than that of Japan by 2032, and the Chinese economy is likely to outgrow that of the US by 2041, and everyone else by as early as 2016. Over the next 50 years, Brazil’s GDP growth rate according to Goldman Sachs report is expected to average 3.6 percent. The size of Brazil’s economy overtakes Italy, and France by 2025 and 2031 respectively while UK and Germany would be left behind by Brazil’s economy by 2036 (Goldman Sachs, 2003). That’s truly possible because of globalization impacts on Brazil.