Military dictatorships, unplanned public spending, high rates of corruption and income inequality had always checked the rise of Brazil. After the generals ceded power to a civilian government in 1985, the nation began to ease its hold on economic life. Compared with the other BRICs, Brazil has avoided stewing in nationalistic resentments aimed at others.
Economists predict that offshore finds of oil and gas should push Brazil into the top ten oil exporters in the world a few years from now. It has also been commanding lofty prices for agricultural and other commodities like iron ore and copper. And financial institutions have blessed its debt with the coveted "investment grade" status, confirming Brazil's position as a solid destination for foreign capital. Credit is now far easier to get, and sales of cars, TVs, and cell phones have increased.
Brazil has finally defeated its four digit hyperinflation. They include the world's No. 3 airplane maker, Embraer; oil giant Petrobras; the construction firm Odebrecht; mining concern Vale; steelmaker Gerdau; and beef processor JBS, which has acquired U.S.-based Swift.
Brazil's turnaround is also underwritten by its abundance of natural resources and prowess in agriculture. In a world clamoring for more energy and food, Brazil has plenty of both.
However, Brazil still has a number of challenges. Inadequate education and training mean the number of Brazilian engineers, programmers, and other experts to sustain growth are less. The infrastructure of roads, railways, and ports falls well short of what an economic great power needs. The political initiative to fund and proceed with more economic reform is weak. High taxes and political corruption still hinder the country's rise.
Despite these challenges, doubts over whether Brazil really belonged in the group of big emerging economies known as the BRICs—Brazil, Russia, India, and China—have passed.
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