Brazil set to become major economic player.

The Brazilian work force as a whole is improving and Brazil now has one of the largest growing middle classes in the world. Brazil saw an 8% increase in their economy in 2010 and this is partially due to growing prosperity and an increase in the amount spent on consumer goods. It is suggested that 9.1 million middle class Brazilians had the desire to buy real estate, (coinciding with the fact that 65% of Tambaba sales to date have been to the local Brazilian market). However with such a high number of potential home owners it is hard to pacify the requirement for property and therefore more emphasis is currently being placed on civil construction.

This will markedly improve the living conditions of the Brazilian working class as organisations such as ILO,(International Labour Organisation), continue their attempt to eradicate poverty in Brazil. Other ILO agreements of which Brazil have benefited from include the prohibition of child labour and forced labour.

President Obama’s recent trip to Brazil in March 2011 has great implications of a very harmonious and productive relationship between Brazil and the U.S. The Trade and Economic Cooperation Agreement (TECA), signed by the presidents of each respective state is an initiative endeavour hoping to promote and improve the development of skills, social protection, equality of treatment as well as the occupational health and safety of the Brazilian workforce.

The basis of this relation was suggested by Obama to be due to “shared values and principals” which the president believed would bring the two “multicultural nations together”. Brazil has been noted for its diverse cultural, with migration, especially from European regions, stemmed in its ancestral roots. The U.S president also reiterated the importance of “building, deepening and broadening” relations with Brazil. As a result, significant legislations have been made which will further enhance the Brazilian standard of life. The Memorandum of Understanding is designed to “harness and multiply” the results of South-South and trilateral trade. Another memorandum based on the Understanding of Major Global Sport has resulted in the U.S government investing $3 billion of which $1 billion has been designated to building infrastructure and security in preparation for the FIFA world cup (2014) and the Olympics (2016) being staged in Brazil with talks off further reciprocal investments.

The subsequent remaining $2 billion from the U.S government has been vetted into Brazil’s Petrobras energy company following a recent discovery of oil reserves in the Atlantic Ocean, to aid the refining process of the crude oil into a useable product. It is thought that the amount discovered would put Brazil into the top 5 oil producing states globally. With Brazil already being a global forerunner in Bio-Ethanol production, as well as having one of the largest food reserves due to its booming agricultural sector and vast landscape, it seems as though Brazil will emerge in the years to come as one the more influential players in the global economy, capitalising on the array of natural resources at their disposal.

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