Source: Brazzil Magazine
Brazilian success is being vastly praised inside and outside the country and there are good reasons for this. In the last two decades, the Brazilian economy not only conquered the hyperinflation of the 1980s, but also reduced poverty by almost 70% since 1994.
Due to stabilization, economic growth and social policies, the old social pyramid – that many generations have learned in schools as the class representation in Brazil – has now been replaced by a diamond-shaped picture, showing the recent and huge increase in the country’s middle class.
At the same time, the Brazilian democracy survived the transition period from the military rule (1964-1985) and shows itself today as a very mature and solid regime – in spite of the constant challenge of corruption scandals.
In a moment when Europe and the United States are not in good shape, Brazil’s future and potential may look even brighter. After all, this is a large western multicultural democracy with no religion disputes.
However, the path to Brazilian success seems to be guarded by the two faces of Janus – one looking to the future, the other to the past. Some new and old problems persist and this is especially important for the world in terms of identity and example. If one has to lead, it would be better to do so as an example of positive values to the global community – as Europe and the US once were.
Indebtedness is a new and old problem for the country. Brazil was once notorious for its foreign debt and the Brazilian population has always experienced difficulties in saving due to the country’s historical economic instability.
However, a current representation of traditional Brazilian financial mismanagement is the high level of indebtedness of its families, which reaches 65% on average in the main cities of the country.
In Curitiba, for example, the capital of the state of Paraná, the average level of indebtedness of its families – according to the Brazilian Federation of Commerce – has reached 88%. In Natal, the capital of Rio Grande do Norte, 40% of the family income is, on average, committed to debts.
In the last year, 10 Brazilian states (of the 26 plus the Federal District) were showing levels of indebtedness of its families beyond 70%. In 2011, at least 15 states are in the same situation, and we already have some months ahead.