•Decide whether Brazil has had economic success

What am I learning?

How Lula has changed Brazil

You are going to read an article about the changes Brazil has seen under Lula. As you read it, make notes

in the following table.

Positive Examples

Negative Examples

Positive Examples

Negative Examples

Fewer shacks lining the roadBuilding work evident- growth in the middle classesRising incomes- more than 29 million Brazilians have become middle classImproving education systemBrazilians staying in school longerConsumer culture means growth in business- new poodle parlours, hairdressersDisposable income

Still poor quality in teaching Not everyone entirely convinced

•About the extent of Brazil’s economic success

What am I learning?

The Debt Crisis in Brazil

• In December 2005, the Minister of Finance in Brazil announced that Brazil would pay back the money it owed early.

• This saved on paying so much interest.

• At this time Brazil owed $15.5 Billion.

Why pay off debt early?

• Brazil will save $900million in interest payments.

• As a result of savings, social spending in Brazil went from 7 to 22 billion reais.

Brazil’s Successes• Brazil has taken over the UK’s economy- 6th

biggest in the world. ‘brazil’s economy marching to the samba beat’

• Big population- 195 million means that there is a bigger market to sell to. Therefore protecting the economy.

• Estimated 20 million have been lifted out of poverty in the last decade due to job creation because of the expanding economy.

• Large rise in the minimum wage- meaning more people have money to spend.

• Exports in 2010 totalled $201.9bn/ Imports in 2010 of $181.6bn. This means that there has been a balance of trade.

Brazil’s Economic Failures

• Rise in inflation- this means that the cost of products has risen. Wages have not risen in line with this.

• Taxes continued to be varied. 17% VAT for a tomato to 50% VAT on an IPOD.

• Unemployment still continues to be quite high.

To what extent has the Brazilian economy

improved in recent years? (8)