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Insidecostarica.com - San José, Costa Rica - Thursday 07 April  2005

 
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Editorial


BRAZIL
:
Latin America's Giant Has 'Exceptional Prospects' for Development, Say Analysts

Mario Osava

RIO DE JANEIRO,  (IPS) - Brazil has "exceptional prospects" for development over the next two decades, a period that will likely witness the full integration of the "United States of South America," according to economist Carlos Lessa.

The dream of uniting the region -- which dates to Simón Bolívar, the 19th-century founding father of South American independence -- will eventually come true, because "the First World cannot offer us any kind of future, so we will have to seek our own future, if we want to escape the fate of Africa, where genocide by omission is being committed," Lessa said in an interview with IPS.

The former president of this country's National Economic and Social Development Bank was one of the speakers at "Brazil: Global Development Scenario in 2022", a seminar held Wednesday in Brasilia by the Brazilian Centre for Latin American Studies (CEBELA).

The seminar served to kick off a series of 15 bimonthly forums under the general heading, "Thinking of Brazil in 2022", aimed at designing a "national project" to help guide the country's development over the next 17 years, according to Roberto Amaral, former minister of Science and Technology and founder of CEBELA.

The year 2022 was chosen as a point of reference because it will mark the bicentennial anniversary of Brazil's independence from Portugal, a date of great symbolic significance.

Lessa began the interview by stressing that it is difficult to make predictions so far into the future, except for certain demographic aspects, such as the aging of the Brazilian population.

This will demand changes in social policy, like "fewer schools and more old-age homes," and in health care, with greater emphasis on dealing with degenerative illnesses through biotechnology.

Nevertheless, he declared that Brazil will have a "brilliant future" because of the major advantage represented by its energy resources. Two-thirds of the country's hydroelectric potential has yet to be tapped, and it has only recently begun to exploit its enormous supply of renewable energy sources.

Lessa believes that development is the product of "human effort plus available energy," which translates into excellent prospects not only for Brazil but for South America as a whole, which is "blessed by God" in terms of natural resources. The obstacle that must be surmounted is "an elite with no commitment to national interests," he said.

This view is shared by Theotonio dos Santos, a sociologist and professor of international economy at the Federal Fluminense University, who maintained that a more equal distribution of income in Brazil is prevented by "the insensitivity of the dominant class."

In his opinion, Brazil could achieve strong economic growth over the next 15 or 20 years, but there will be no substantial changes in the social inequality currently facing the country "without a revolution or traumatic events."

Whether or not Brazil lives up to its potential for a "brilliant" future depends on the consolidation of the political front made up of the trade union movement, leftist political parties, and the segment of the business community that opposes the financial sector's control over the country's economy.

This front, which emerged in opposition to the administration of Fernando Henrique Cardoso (1995-2002), brought leftist President Luiz Inácio Lula da Silva to power in the 2002 elections.

In fact, Lula even had the backing of the military, who shared his nationalist vision, and of sectors of the Catholic Church that supported his social programmes.

Yet the front that put Lula in office has become divided over the economic policies followed by the current administration, Dos Santos said.

"Regrouping these forces to construct a democratic, nationalist programme is essential for sustained economic growth that can at least partially reduce the current inequalities," he said.

To reach this goal, the weight of the financial sector would have to be reduced, because it now eats up 12 percent of the country's gross domestic product (GDP) through high interest rates on the national debt alone, leading to an unacceptable concentration of wealth, he added.

Moreover, Dos Santos warned, this economic growth must be achieved in the next 15 to 20 years, while the international economic situation remains favourable and marked by global trade expansion.

After that time, the current cycle will come to an end, he predicted, with the dollar losing strength and being reduced to a "regional currency."

"If Brazil does not grow in the next 15 years, it will never amount to anything, and it will face a colossal crisis, because the social problems reflected in urban violence today will turn into a political confrontation," he added.

The closer ties with Asia and Africa being promoted by the current administration are a positive sign, with China in particular giving a boost to Brazil's exports.

Brazil is now developing a more "global vision", and the example provided by Asia could encourage the current government to place the necessary priority on education, another essential factor for economic growth, Dos Santos concluded.

Increasing investment in education, science and technology is essential for development in the near future, Amaral agreed. The state can promote scientific advances through the universities, but technological advances depend on the private sector, which will not invest resources in research and development if there are no prospects for economic growth, he said.

"No country in the world has developed without a national project, or without systematically investing in knowledge," he said, adding that the project in question is based on two primary concerns: democracy and the search for a "less unjust society."

It is unacceptable that Brazil, one of the world's 12 largest economies, ranks 85th in terms of per capita income, and is one of the countries with the worst degree of inequality, he maintained.

In addition, because Brazil is a vast, highly diverse country, it will also need to pursue greater "technological diversity", ranging from cutting edge computer applications to the traditional technologies already in place, which provide a large number of jobs, "without ruling out any that could make the country more competitive," he said.

The speakers at the seminar series include Renato Janine Ribeiro, professor of philosophy at the University of Sao Paulo, who will stress the importance of culture, and Catholic theologian Leonardo Boff, a leading figure in the Liberation Theology movement.

 

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