1. Brazilian Political Economy K-12 Teach Brazil Workshop 2 October 2010 Villanova University Tony Spanakos Montclair State University spanakos@gmail.com

2. General Information I Largest in South America 5th largest in the World 3rd/4th largest democracy 8th largest economy in the world 9th/10th Largest in purchasing power GDP per capita roughly 7400 USD 107th in purchasing power per capita 10,7000 USD Latin America- 35% of population, 40% of GDP

3. General Information II Agriculture 6.5% of GDP Industry 28.4% of GDP Services 68.5% of GDP Unemployment 8% Poverty 28% USD ppp per person 22% in 2003 – down to 9% in 2008 Gini 54 (10th in world) Investment 17%

4. History Colonial Brazil 1822-1889 1889- ISI, Milagro New Republic

5. Economics of Stabilization YearJanuaryNovember 199441.322.96 19980.85-0.18 20021.073.39 20060.380.42 20100.88-0.07 (Aug) Monthly Inflation in Brazil (as a %)INPC YearInflationYearInflation 1994916.4620063.1418 19981.65620094.3120 200212.53 Annual Inflation (IPCA)

6. Economics and Stabilization YearJanuaryNovember 199432.3129.91 1998 32.6638.55 2002 52.9560.47 200648.2146.44 201041.6341.67 (July) Brazil RiskIn Basis Points(15th of month) YearJanuaryNovember 19986271011 20028371777 2006*237154 2010*171138 (sep 23) C-Bond, * Republic Bonds Public Sector Debt (as % of GDP)

7. Crisis 2008? yearReserves USD billions 1998200220062007200823 Set 2010 44.637.885.8180.3206.8273 YearFiscal Account As % of GDP 199819992000200120022003 -0.863.23.53.63.94.3 200420052006200720082009 4.64.84.34,03.52.1

8. BRICs

9. Poverty and Inequality YearGINI index YearGINI Index 19900.613820020.5893 19930.604420050.5694 19960.602120080.5478 19990.5939 YearUnemploymentYearUnemployment 1994 Jan82002 Nov12 1994 Nov8.12006 Jan9.5 1998 Jan10.32006 Nov9.1 1998 Nov11.32010 Jan8 2002 Jan11.32010 July9.4

10. The Future of the Country?