This post quickly reviews the state of Brazil, its economic transactions, its political institutions and the level and prospects of its human capital. The article is short on text and prolific on charts for brevity, because “an image is worth a thousand words”.
The conclusion is that Brazil is dependent on foreign capital, on a leveraging path of booming private and public consumption aided by slow but consistent monetary easing, on a backdrop of poor educational performance, limited R&D and economic inequality and political moral hazard that facilitates corruption. The people are lovely and the weather is great, but if you don’t know the right brokers and are unwilling to pay upfront, it sounds like a difficult place to do business. Seems to me like a lot could be done to improve living conditions by increasing the tax rate for the top income bracket, increasing public expenditure on infrastructure, R&D and education and incentives (tax breaks) for private investment in these sectors as well as reinforcing the control on corruption and on the government spending.