ANRITA SCB00L 0F B0SINESS

Biazil
Inteinational Business

Authors
Deepak
L|ammurugu
L|ngan
Mahesh
Cm rakash
V|g|rtheeswaran

Brazil: Key Data at a glance

Full Name: Federative Republic oI Brazil
Population: 190.7 million (Census 2011)
Capital: Brasilia
Largest city: So Paulo
Other cities: Rio de Janeiro, Salvador, Belo Horizonte, ReciIe
Area: 8.55 million sq km (3.3 million sq. miles)
Currency: Real
GNI per capita (Atlas method, 2010): US$ 9,390
GDP Per Capita (PPP, 2010): US$ 11,127
Main exports: Transport equipment, manuIactured goods, iron ore, soybeans, Iootwear,
coIIee, Oranges, autos
Major Language: Portuguese
Religion: Roman Catholic (73.6), Pentecostal (15.4), Other (11)
Life expectancy: 70 years (men), 77 years (women) (UN)
Work force (2009 est.): 101.7 million.
Literacy rate, adult total: 90
Unemployment ( oI total labour Iorce): 8.3
Poverty Headcount ratio at national poverty line ( oI population): 21.4
GDP Growth rate (2010): 7.5
Inflation: 5.9 (2010)
Ethnic Make-up:
White includes Portuguese, German, Italian, Spanish and Polish 55
Mixed white and black 38
Black 6
Others includes Japanese, Arab, Amerindian 1

General Overview
Brazil is South America's most inIluential country, an economic giant and one oI the world's
biggest democracies. It is one oI the rising economic powers - otherwise known as BRIC nations
- together with Russia, India and China.
Although it has had a history oI economic boom and bust and its development has been
hampered by high inIlation and excessive indebtedness, reIorms in the 1990s and ongoing sound
macroeconomic and social policies have resulted in an extended period oI stability, growth and
social gains.
Following the outbreak oI the global economic crisis in September 2008, Brazil underwent a
recession that lasted only two quarters; aided by very strong Iundamentals, a counter-cyclical
macroeconomic policy stance and increasing commodity prices, the economy recovered at a Iast
pace. The country is adapting to the 2011 global downturn with a program oI Iiscal tightening,
and growth is expected return to pre-crisis levels in 2012.
Brazil has immense natural resources and a strong industrial development potential, but still
suIIers Irom a wide gap between rich and poor. Innovative social programs and a more inclusive
growth in recent years are gradually decreasing this inequality.
Brazilian Culture
Brazilian Diversity
O Brazil is a mixture oI races and ethnicities, resulting in rich diversity.
O Many original Portuguese settlers married native women, which created a new race,
called 'mestizos'.
O 'Mulattoes' are descendents oI the Portuguese and AIrican slaves.
O Slavery was abolished in 1888, creating over time a Iurther blurring oI racial lines.
O Unlike many other Latin American countries where there is a distinct Indian population,
O Brazilians have intermarried to the point that it sometimes seems that almost everyone
has a combination oI European, AIrican and indigenous ancestry.
Brazilian Family Values
O The Iamily is the Ioundation oI the social structure and Iorms the basis oI stability Ior
most people.
O Families tend to be large (although Iamily size has been diminishing in recent years) and
the extended Iamily is quite close.
O The individual derives a social network and assistance in times oI need Irom the Iamily.
O Nepotism is considered a positive thing, since it implies that employing people one
knows and trusts is oI primary importance.
%he Brazilian Class System
O espite the mixing oI ethnicities, there is a class system in Brazil.
O Few Brazilians could be described as racist, although social discrimination on the basis oI
skin colour is a daily occurrence.
O In general, people with darker brown skin are economically and socially disadvantaged.
O The middle and upper classes oIten have only brieI interaction with the lower classes -
usually maids, drivers, etc.
O Class is determined by economic status and skin colour.
O There is a great disparity in wage diIIerentials--and thereIore liIestyle and social
aspirations among the diIIerent classes
O Although women make up 40 oI the Brazilian workIorce, they are typically Iound in
lower paid jobs such as teaching, administrative support, and nursing.
O The 1988 constitution prohibits discrimination against women, but inequities still exist.
The one place where women are achieving equality is in the government.
Relationships & Communication
O Brazilians need to know who they are doing business with beIore they can work
eIIectively.
O Brazilians preIer Iace-to-Iace meetings to written communication as it allows them to
know the person with whom they are doing business.
O The individual they deal with is more important than the company.
O Since this is a group culture, it is important that you do not do anything to embarrass a
Brazilian.
O Criticizing an individual causes that person to lose Iace with the others in the meeting.
O The person making the criticism also loses Iace, as they have disobeyed the unwritten
rule.
O Communication is oIten inIormal and does not rely on strict rules oI protocol. Anyone
who Ieels they have something to say will generally add their opinion.
O It is considered acceptable to interrupt someone who is speaking.
O Face-to-Iace, oral communication is preIerred over written communication. At the same
time, when it comes to business agreements, Brazilians insist on drawing up detailed
legal contracts.
Political & Legal structure
Historical Overview
Brazil became an independent country Irom Portugal in 1822 and took on a constitutional
monarchy as its Iorm oI government. For a little over 100 years this work out well as people
voted in presidents Irom liberal and conservatives parties that began to Iorm. ue to violent
revolts Irom certain regions in Brazil, Getulio orneles Vargas became president in 1930 and
then closed down congress and became a dictator until 1945. Since 1945 the Brazilian political
structure has stayed consistent with various political parties Iorming, but none that have sought a
political uprising like the Vargas party. There have been Iorms oI 'military rule that greatly
reduced the power oI voting, but no oIIicial dictator ships.
Current Political Structure:
The current political structure really took shape about 24 years ago when National Congress was
put together to draIt a Constitution. The current Constitution was made oIIicial on October 5,
1988. There have been amendments that have been adopted dating back to 1992.
The Iollowing inIormation is the political structure oI the Brazil.
1. Federative Republic made up oI a Federal istrict in the capital city oI Brasilia along
with 26 states and 5,563 municipalities.
2. The Head oI State and the executive is the President, whom is elected by popular vote to
a 4 year term and a maximum oI two terms. The president has extensive powers
including the appointment oI the cabinet, the appointment oI other key oIIice holders in
the administration, and the appointment oI Supreme Court judges, subject to Senate
approval.
3. There are three branches oI government: A Legislative Branch, an Executive Branch,
and a Judiciary Branch.
4. The body vested with national legislative authority in Brazil is the bicameral Congress,
consisting oI a 513 member Chamber oI eputies (the lower house) and an 81 member
Senate (upper house).
5. The 26 states have powers to adopt their own Constitutions and laws; although their
autonomy is limited by the principles established in the Federal Constitution.
Major political parties:
Following elections in October 2010, the Worker's Party (PT) became the largest party in
Congress. It Iormed a coalition with some 10 other parties, giving it loose control oI an overall
majority in both chambers. However, in the 2006 elections the PT Iell short oI a majority in both
the Chamber oI eputies and the Senate. The PT is a broad leIt party with close links to the trade
union movement. The main opposition parties are the centre-leIt Social emocratic Party
(PSB), and the centre-right emocrats Party (EM), Iormerly known as the Liberal Front
Party (PFL).
Current Leader
President: ilma RousseII
In 2011, ilma RousseII oI the Workers Party became the Iirst Iemale president in the history oI
the country. She is Iormer chieI oI staII to, and Iavoured successor oI, outgoing president Luiz
Inacio Lula da Silva.
Ms. RousseII was elected on a platIorm oI continuity oI the
economic and social achievements oI her predecessor
President Luiz Inacio Lula da Silva. Ms. RousseII vowed to
eradicate extreme poverty and keep the country in a
sustainable development path. One oI the most pressing
concerns oI her Government is to Ioster the country's
economic growth while keeping inIlation under control, and
to boost competitiveness in a strong currency context.
In June 2011 President RousseII launched her government`s Ilagship social program, Brasil sem
Miseria, which aims to reach 16 million people and eradicate extreme poverty.
Brazil - Legal Framework:
The Brazilian legal system is based on civil law tradition. The judicial powers are vested in the
Federal Supreme Court, the Superior Court oI Justice, the Regional Federal Courts and Federal
Judges. There are also specialized courts to deal with electoral, labour and military disputes.
The apex oI the court system is the Federal Supreme Court which has exclusive jurisdiction to
(i) declare Iederal or state laws unconstitutional (ii) order extradition requests Irom Ioreign States
and (iii) rule over appeals Irom lower courts, where the challenged decision may violate the
Constitution.
%he Superior Court of 1ustice is responsible Ior upholding Iederal legislation and treaties.
The five Regional Federal Courts, have constitutional jurisdiction on cases involving appeals
Irom the decisions oI Iederal judges, and are also responsible Ior cases oI national interest and
crimes pursuant to international treaties.
The jurisdiction of the federal judges includes: (i) hearing disputes involving states within the
Union, (ii) ruling on lawsuits between a Ioreign State or international organization and a
municipality or a person residing in Brazil, and (iii) judging cases based on treaties or
international agreements oI the Union against a Ioreign State or international body.




Economy of Brazil
The Brazilian economy is the largest in South America and the tenth largest in the world, worth
about $2.1 trillion at the oIIicial exchange rate and $1.8 trillion at purchasing power parity in
2010. The Brazilian economy`s solid perIormances during the Iinancial crisis and its strong and
early recovery, including 2010 growth oI 7.5, have contributed to the country`s transition Irom
a regional to a global power. Its economy is reasonably diversiIied, with Iairly well-developed
agricultural, mining, petroleum, manuIacturing, and services sectors. Recent discoveries oI large
petroleum reserves suggest that the country may be able to avoid disruptions caused by Iuture
global oil price shocks and indeed may become a major petroleum exporter.
Brazil holds over $200 billion in Ioreign exchange reserves, giving it a cushion against external
disturbances. The main reason Ior this is Brazil is not that deeply integrated into the global
economy compared with other countries. Most oI the production is Ior domestic consumption
and the large role oI domestic consumption means that the country may be able to weather a
period oI slower demand Ior exports reasonably well, although lower global economic growth
will undoubtedly reduce the country`s rate oI growth to some extent.
In terms oI sectoral composition, the Brazilian economy is dominated by the service sector,
which makes up more than halI oI the economy; Iollowed by the manuIacturing sector, at about
30 percent; processed Iood; agriculture; and natural resources.


Sector break up oI Brazil
In this report as part oI the economy oI Brazil is concerned the main sectors that contribute to the
economy and other Iactors such as unemployment, poverty, imports and exports will be
discussed.

Service Sector:
Brazil`s service sector has grown leaps and bounds in the past two decades. It contributes more
than 50 percent to the country`s GP. Government participation in this sector was extremely
high, with interests in land, air, and water transportation; postal, telecommunications, and
Iinancial services; and research and development. Approximately 55 percent oI the workIorce
was employed in the service sector.

Financial Services:
Brazil's banking industry is Iinancially strong and attracted huge inIlow oI Ioreign investment,
with a strong national currency, and boasts one oI the highest interest rate in the world. It
individually contributes to 16 percent oI the GP. Two oI the largest banks in Brazil are
government owned, but US and other Ioreign banks do have signiIicant share oI investment in
the Iinancial sector. Brazil`s banks are weathering the crisis thanks to strong capitalisation, Iew
troubled assets and the legacy oI strict regulatory oversight. Hence the outlook Ior continued
Iinancial deepening is promising, especially in capital markets and consumer Iinance. The rapid
growth oI consumer Iinance is based on a burgeoning middle class, rising per capita incomes and
relatively low inIlation.
Retail:
This sector is responsible Ior the highest number oI employed people in all sectors oI the services
industry. The bulk oI employed people in this sector come Irom companies that employ less than
500 employees. Combined retail and wholesale sectors were made up oI 708,635 retail and
wholesale outlets. There are Iew retail chains in the economy. Most oI them are located in the
capitals oI each state but are not part oI the retail context in the less developed economies in rural
areas. Food, grocery, and other retail chains are located in the coastal areas whereas small
Iamily-owned businesses compose the retail sector in smaller cities. The smaller retail businesses
are responsible Ior employing a large number oI people
Manufacturing Sector:
Major products in the manuIacturing sector are televisions, telephones, and computer chips.
There are a Iew national companies that are domestically oriented, such as Consul and Brastemp.
There are also companies that are primarily export oriented, such as Nokia, Intel, and Compaq.
State participation in manuIacturing occurs in the production oI textiles and clothing, Iootwear,
Iood, and beverages. These industries comprise a large proportion oI the manuIacturing sector,
but there are also new industries that have been developed in the last Iew decades with
government aid. Machinery and transport equipment, construction materials, sugar cane and
wood derivatives, and chemicals are important manuIacturing industries. irect government
participation is noticed in the oil processing industry and passenger jet aircraIt industry through
partial ownership oI such companies. Indirect government participation is noticed in the textile
industry and machinery industry through export subsidies and low interest loans

%ransport Vehicles:
Automobiles are the most important manuIactured items in Brazil. Brazil's passenger automotive
production was approximately 3 million passenger car units in 2010. Brazil has manuIacturing
plants Ior General Motors, Volkswagen, Ford, Fiat, Honda, and Toyota. Workers are highly
unionized, receiving the highest salaries among the manuIacturing industries

%extiles:
The national textile industry is responsible Ior 3 percent oI world production. Brazil has the
largest textile operating Iacilities in Latin America. The textile industry is also labor intensive,
employing 1.65 million people in 2010. Fibers and leather are used to produce clothing, shoes,
and luggage. Brazilian shoes are exported mainly to Europe, where they are Iamous Ior their
quality.

Paper:
The Brazilian paper industry was responsible Ior the production oI 8.8 million metric tons and
the pulp industry produced 11 million metric tons in 2010. The industry consisted oI
approximately 200 companies, employing approximately 80,000 people directly in their
processing operations and 60,000 people in Iorestry operations
Natural Resources:
The mining sector was protected by the 1988 constitution against Ioreign majority participation
oI direct mining companies. This was a setback Ior the development oI the mining sector because
domestic investors lacked the capital Ior extensive mineral exploration. Private Brazilian
investors and Brazilian corporations own the majority oI the mineral industry. The participation
oI Ioreign capital is very limited due to Brazilian mining laws. However, in 1995 the Congress
approved an amendment to the constitution allowing private companies (including Ioreigners) to
participate in the mining industry through joint ventures, deregulating investments, and the
privatization oI state-owned mining plants. Shortly aIterwards, the state-owned Companhia Vale
do Rio oce was privatized.
The country is the world's largest producer oI bauxite, gemstones, columbium, gold, iron ore,
kaolin, manganese, tantalum, and tin. Major exports are iron ore, tin, and aluminum. The states
oI Minas Gerais, Bahia, and Goias, located in the midwest oI Brazil, have deposits oI diamonds
and other precious and semiprecious stones. According to the US Geological survey, iron ore
production in Brazil reached 370 Mt in 2010 compared to 300 Mt in 2009. Crude ore reserves are
estimated to be 29 000 Mt. Brazil is the world's third largest iron ore producer and exporter. Iron
ore has traditionally been one oI the country's largest export products.

Petroleum Industry:
Brazil is on its way to becoming one oI the main international poles Ior the exploration and
production oI petroleum. Petrobas the state run oil company has majority oI stakes in the
industry but oII late the participation oI Ioreign companies is being allowed and the government
has announced that petrobas won`t have any added advantage.

Agriculture Sector:
Brazil ranks number one in world production and exports oI coIIee, sugar, and Irozen
concentrate orange juice; number two in soybeans, tobacco, beeI, and poultry; and three or Iour
in corn, pork, and cotton. In the past, potential agricultural expansion was grossly
underestimated. There are Iew natural limits to Iuture Iood, Iiber, and bioIuel production in
Brazil due to the availability oI huge areas oI unutilized arable land. By becoming more eIIicient
at integrating grain and cattle production and Iully utilizing degraded pasture lands, Brazil could
greatly increase crop production. By some projections, there is near-term potential to expand
plantings by more than 200 million acres. Government credit and tax-incentive programs have
spurred crop production and construction oI processing Iacilities. Over the last Iew years, Brazil
has dramatically increased Iinancial support to its agricultural sector.

Stimulated by high international commodity prices, Brazil`s agricultural exports exploded over
the past 5 years, reaching a record $71.8 billion in 2008, making Brazil the third largest
agricultural exporter (behind the United States and the European Union). Agricultural shipments
accounted Ior 36 percent oI the country`s total exports in 2008. Agricultural trade between Brazil
and the United States remained stable in 2008 at $6.2 billion, oI which Brazilian exports
accounted Ior 86 percent. The United States is a major importer oI Brazilian sugar, coIIee,
orange juice, tobacco, hardwood lumber, and plywood. Brazil is the largest member oI the
Mercosul, a regional customs union that includes Argentina, Paraguay, and Uruguay. In recent
years Brazil has increased its participation in organizations such as Codex, where it oIten
coordinates positions with the United States. In multilateral negotiations, Brazil and the United
States share many common positions, particularly regarding the production and trade distorting
policies oI highly developed economies, such as the EU and Japan. However, Brazil usually
groups the United States into the trade-distorting category, citing U.S. sugar quotas, domestic
support programs, and high tariIIs.

Brazil is the world's second largest producer oI ethanol Iuel and the world's largest exporter.
Together, Brazil and the United States lead the industrial production oI ethanol Iuel, accounting
together Ior 87.8 oI the world's production in 2010. In 2010 Brazil produced 26.2 billion litres
(6.92 billion U.S. liquid gallons), representing 30.1 oI the world's ethanol used as Iuel.

Food Processing Industry:
The Iood processing industry is the second largest sector in terms oI manuIacturing. The industry
employs around 1. 4 million people. The industry generated around 173 billion approximately in
2010. The industry is generating around 15000 jobs per year and is expected to grow at a rate oI
5 per year.

The major contributors to the Iood processing are restaurants, bakeries and meat processing.


Market drivers for the industry:
1. Higher Income
2. Singles trend
3. Health and wellness
The Iood processing involves the participation oI high Ioreign investment with many
international companies having their operations in brazil. The major multinational that are doing
business are Ambev, bunge, Cargill, unilever, Nestle and AM. There is not much entry barrier
in this sector.

Brazil`s Competitive Advantage

With its extensive and growing domestic market, rich natural resources, and diversiIied industry
and export structure, Brazil is increasingly becoming a key player in the global economic and
geopolitical landscape. Moreover, since the 1990s, important steps have been taken toward
improving Iiscal sustainability as well as liberalizing and opening up the economy and reducing
poverty and income inequality.

This has put the country in a stronger position to weather the current global economic turbulence
and the related major external shocks in both export demand and Iinancing as well as Ialling
commodity prices. However, a number oI shortcomings continue to aIIect Brazil`s
competitiveness landscape and prevent the country Irom Iully leveraging its large potential and
realizing higher growth and prosperity.

Important imbalances are still present in the macroeconomic environment, no doubt caused by
the challenges to achieving a prompt Iiscal adjustment brought about by large unmet social
needs, as well as by widespread rigidities in the tax system, regulatory system, and goods and
labor markets, among other Iactors. Moreover, despite the government`s greater Iocus on
education in recent years, the country has Iailed to upgrade its basic and higher educational
standards to the level oI best practices.

Also a large part oI the population has not been liIted out oI poverty, and the country continues
to display one oI the most unequal income distributions in the world. The Brazil Competitiveness
Report 2009 provides Brazil`s policymakers, business leaders, and relevant stakeholders with a
unique instrument in identiIying the country`s main competitiveness Ilaws and strengths,
together with in-depth analyses on areas crucial Ior long-term economic growth.

In doing so, the Report aims to support national stakeholders in deIining a national
competitiveness agenda by identiIying the priority issues that need to be tackled Ior Brazil to
boost its competitiveness in the context oI the current challenging economic outlook.

Business Environment
A good measure oI evaluating business environment in a country is oing Business. Doing
Business sheds light on how easy or diIIicult it is Ior a local entrepreneur to open and run
business when complying with relevant regulations. It measures and tracks changes in
regulations aIIecting 10 areas in the liIe cycle oI a business:
starting a business
dealing with construction permits
getting electricity
registering property
getting credit
protecting investors
paying taxes
trading across borders
enIorcing contracts and
resolving insolvency

The indicators are used to analyze economic outcomes and identiIy what reIorms have worked,
where and why. Brazil has ranked 126
th
in Index oI ease oI doing business 2011 oI World Bank.
Brazil`s rank in each oI the 10 topics is given below.


Foreign %rade
In Ioreign trade, Brazil is active in more than one hundred countries with 60 percent oI its total
exports made up oI manuIactured and semi manuIactured goods. From 2006 to 2010 Brazil's
total merchandise trade grew signiIicantly, at a nominal annual average rate oI 23.3, reIlecting
solid economic growth and strong external demand Ior Brazilian products. uring the same
period exports grew at an average annual rate oI 21.7, partly reIlecting higher commodity
prices, and imports at an average annual rate oI 25.7. While the value oI exports was over 50
higher than the value oI imports during 2003-2006, the trade surplus has been shrinking since
2006 due to Iaster expansion oI imports.
In 2010, Brazil
%otal trade volume was US$387.4 billion.
%otal value of exports: US$199.7 billion
Primary exports - commodities: transport equipment, iron ore, soybeans, Iootwear, coIIee,
automotive
Primary exports partners: China (12.49 percent oI total exports), US (10.5 percent), Argentina
(8.4 percent), Netherlands (5.39 percent), Germany (4.05 percent)
%otal value of imports: US$187.7 billion
Primary imports - commodities: machinery, electrical and transport equipment, chemical
products, oil, automotive parts, electronics.
Primary imports partners: US (16.12 percent oI total imports), China (12.61 percent),
Argentina (8.77 percent), Germany (7.65 percent), Japan (4.3 percent)
Membership of international groupings/organizations
Brazil is a member oI numerous economic organizations, including UN, W%O, Mercosul - an
economic and political agreement that includes Argentina, Paraguay, Uraguay and Brazil,
promotes Iree trade and easy transit oI goods, people and currency. In 2008, Mercosul signed a
Iree trade agreement with Israel, and later signed with Egypt in 2010, G-20 and the Cairns
Group, LADI (Latin American Integration Association), Rio Group, ECLAC (UN Economic
Commission Ior Latin America & the Caribbean), Union of South American Nations.
Environment and Climate Change
Brazil is the 4th largest global emitter oI greenhouse gases, 75 oI which results Irom land-use
change (to pave the way Ior production oI livestock and crops) in particular deIorestation. 18
oI the Brazilian Amazon has been deIorested since 1970 (an area three times the size oI the UK)
at an average rate oI around one Wales every year. Brazil's greenhouse gas emissions Irom
agriculture have increased 41 percent between 1990 and 2010. Cattle are a major Iactor Ior these
emissions. An estimate carried out by Friends oI the Earth-Amazonia (Amigos da Terra -
Amaznia Brasileira), the Brazilian National Institute Ior Space Research (INPE), and the
University oI Brasilia concluded Iully halI oI Brazil`s greenhouse gas emissions between 2003
and 2010 came Irom the cattle sector. II all parts oI the 'cattle chain had been included, the
researchers add, the proportion oI greenhouse gases attributable to Brazil`s cattle would have
been even larger.

Brazil's cattle and soy production are concentrated in the Legal Amazon and Cerrado grasslands
regions, and have resulted in considerable biodiversity loss, deIorestation, and water pollution.
As oI 2010, about 74 million cattle, or 40 percent oI Brazil`s herd, were living in what is known
as the 'Legal Amazon. Almost a million square km (386,000 sq mi), or nearly halI oI the
Cerrado, have been burned and are now cattle pasture, or are cultivated Ior soybeans, corn (both
primary ingredients in livestock Ieed), and sugarcane, Ior ethanol production.
FOREIGN RELA%IONS
Brazil is a political and economic leader in Latin America. However, social and economic
problems have prevented it Irom becoming an eIIective global power. Between 1945 and 1990,
both democratic and military governments sought to expand Brazil's inIluence in the world by
pursuing a state-led industrial policy and an independent Ioreign policy. More recently, the
country has aimed to strengthen ties with other South American countries, and engage in
multilateral diplomacy through the United Nations and the Organization oI American States.
Brazil's current Ioreign policy is based on the country's position as a regional power in Latin
America, a leader among developing countries, and an emerging world power. In general,
current Brazilian Ioreign policy reIlects multilateralism, peaceIul dispute settlement, and
nonintervention in the aIIairs oI other countries. The Brazilian Constitution also determines that
the country shall seek the economic, political, social and cultural integration oI the nations oI
Latin America.
An increasingly well-developed tool oI Brazil's Ioreign policy is providing aid as a donor to
other developing countries. Brazil does not just use its growing economic strength to provide
Iinancial aid, but it also provides high levels oI expertise and most importantly oI all, a quiet
non-conIrontational diplomacy to improve governance levels. Total aid is estimated to be around
$1 billion per year that includes:
O technical cooperation oI around $480 million ($30 million in 2010 provided directly by the
Brazilian Cooperation Agency (ABC))
O an estimated $450 million Ior in-kind expertise provided by Brazilian institutions
specialising in technical cooperation
In addition, Brazil manages a peacekeeping mission in Haiti ($350 million) and makes in-kind
contributions to the World Food Programme ($300 million). This is in addition to humanitarian
assistance and contributions to multilateral development agencies. The scale oI this aid places it
on par with China and India and ahead oI many western donors. The Brazilian South-South aid
has been described as a "global model in waiting."
Brazil's political, business, and military ventures are complemented by the country's trade policy.
In Brazil, the Ministry oI Foreign Relations continues to dominate trade policy, causing the
country's commercial interests to be (at times) subsumed by a larger Ioreign policy goal, namely,
enhancing Brazil's inIluence in Latin America and the world. For example, while concluding
meaningIul trade agreements with developed countries (such as the United States and the
European Union) would probably be beneIicial to Brazil's long-term economic selI-interest, the
Brazilian government has instead prioritized its leadership role within Mercosul and expanded
trade ties with countries in AIrica, Asia and the Middle East.
Brazil's soIt power diplomacy involves institutional strategies such as the Iormation oI
diplomatic coalitions to constrain the power oI the established great powers.

In recent years, it
has given high priority in establishing political dialogue with other strategic actors such as India,
Russia, China and South AIrica through participation in international groupings such as BASIC,
IBSA and BRICS. The BRICS states have been amongst the most powerIul drivers oI
incremental change in world diplomacy and they beneIit most Irom the connected global power
shiIts.
Rousseff administration
The Ioreign policy under the RousseII administration has sought to deepen Brazil's regional
commercial dominance and diplomacy, expand Brazil's presence in AIrica, and play a major role
in the G20 on climate change and in other multilateral settings.
At the United Nations, Brazil continues to oppose sanctions and Ioreign military intervention,
while seeking to garner support Ior a permanent seat at the Security Council. Cooperation with
other emerging powers remain a top priority in Brazil's global diplomatic strategy. On the recent
airstrike resolution supporting military action in Libya, Brazil joined Iellow BRICS in the
Council and abstained. On the draIt resolution condemning violence in Syria, Brazil worked with
India and South AIrica to try to bridge the divide between the Western powers and Russia and
China.
ReIerences:
www.imI.org
www.worldbank.org
www.wikipedia.org
www.economywatch.com
www.economist.com
Reports
OEC Report on Brazil
IFC Report