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Federative Republic of Brazil

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L Where is Brazil?

• Located in northeastern South America

• 3,287,350 sq. mi and borders the Atlantic Ocean

• 5th largest country in the world

• Spans four time zones, the westernmost is the same as Eastern Standard Time in the US

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L General Geography

• Highest point: Pico da Neblina at 9,823 ft, and the lowest point is at sea level.

• Shares 9,824 miles of borders with Uruguay, Argentina, Paraguay, Bolivia, Peru, Colombia, Venezuela, Guyana, Suriname, and French Guiana.

• Does not border Ecuador or Chile

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L Geography (cont.)

• Brazil possesses the archipelago of Fernando de Noronha, located 220 miles northeast of its “horn”

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• Serra do Mar mountain range on the Atlantic coast

• Serra do Espinhaço Range, the largest in area• The highest traverse the northern border with

the Guianas and Venezuela.

Mountains and Coast

• The coastal zone is noted for 3670 miles of tropical beaches interspersed with mangroves, lagoons, dunes, and coral reefs

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L River System

• One of the world's most extensive river systems• 8 drainage basins into the Atlantic• More than half of the total drainage area is

accounted by the Amazon and Tocantins-Araguaia

• Amazon stretches across 45.7% of the country from the Andes and to the Atlantic

• Amazon contains 1/5 of the worlds fresh water

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L Rivers (cont.)

• Major river system in the NE is the Rio Sao Francisco which is about 1000 miles and flows from the south central area to the Northeast

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L Rivers

• The Paraná flows south into the Río de la Plata Basin.

• The Paraná reaches the Atlantic between Argentina and Uruguay.

• Largest contiguous wetlands in the world, covering ( 230,000 square kilometers) are located here and called the Pantanal

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LRivers as Transportation

• Tributaries of the Amazon are navigable. – upstream vessels encounter rapids and waterfalls,

sandbars, trees, and other obstacles– Oceangoing vessels can travel as far as 2,430 miles

upstream, reaching Iquitos in Peru– The Amazon river system was the principal means of

access until new roads became more important in the 1970s.

• The São Francisco was also used for transportation • Dams and locks in the Paraná system made it an

important artery for interstate and international trade in the 1990s.

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L The Rainforest

• The Tropical soils of Brazil are resposible for producing approximately 70 million tons of grain plants every year

• The Deeper into the rain forest you go the worse the fertility of the land due to insufficient sunlight and water

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L

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L Deforestation• Deforestation of the Amazon has been

primarily for logging and not for clearing farm land

• There are many more varieties of marketable woods so deforestation had

been quite lucrative• About 16% of the Amazon has been cleared

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L Climate

• 90% is within the tropical zone • Near the equator there is very little variation in

temerature thoughout the seasons • To the south there is frost in the winter • In the north they have extreme temperatures

reaching above 40° C during the summer. • There is about 1,000 to 1,500 millimeters of rain

per year mostly between December and April• Some areas of the Amazon reach over 3,000

millimeters of rainfall in one year.

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LMap of Temperature and

Precipitation

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L Geographic Regions

• 26 States and the Federal District• 5 regions:

– North– Northeast– Southeast– South– Center west.

• States are broken down further into municipalities (similar to counties in the US)

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L Brazil’s Regions

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LThe “Native” People of

Brazil• The Siberian Ice Age Hypothesis

– Native American peoples descended from migrant peoples from North Asia who entered America across the Bering Strait in at least three separate waves.

• The American Aborigines hypothesis– Some recent finds (notably the Luzia skeleton in

Lagoa Santa) are claimed to be distinct from the Asian genotype and are more

similar to African and Australian Aborigines

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L The Indigenous Population• British historian John Hemming estimated

2,431,000 people for Brazil as a whole• Many died as a result of European diseases• Four “families” (based on language):

– Gê Speakers– Tupi Speakers– Carib Speakers– Arawak Speakers

• Indians viewed as slave labor

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LThe Colonial Era: 1500-

1815• 1500s, Cabral lands on the coast• Only product was brazilwood• Colonization was influenced by the

Catholic Church• French began arriving in the 16th

century• Dutch invaded Brazil & occupied the

sugarcane growing belt in the NE from 1630-1654

• Gold and diamond mining displaces sugar as major products

• Minas Conspiracy 1789• Tiradentes plots independence 1792

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L The Kingdom of Portugal and Brazil: 1815-1821

• 1815 the crown declares Brazil a kingdom equal to Portugal and João

• 1817 "Pernambuccan revolution" crushed

• Monarchy lasts another 67 years after independence declared in 1822

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• September 7, 1822 Dom Pedro I declares Brazil Independent

The Empire: 1822-1829

• Constitution of 1824 creates three governmental powers--executive, legislative, and judicial--and a fourth, the moderating power (Emperor)

• August 29, 1825 Britain and Portugal recognize Brazilian independence by signing a treaty

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LThe Regency Era: 1831-

1840

• turmoil as local factions struggled to gain control • War of the Farrapos (ragamuffins), Balaiada Rebellion in

Maranhao in 1838-41, and the ones in Minas Gerais and São Paulo in 1842, and other propelled by antiregency and promonarchial sentiments

• 1834 Pedro dies, no more political glue to hold allies together

• Military reorganizes under the leadership of

Luís Alves de Lima e Silva • Vision of Brazil as a nation-state emerges

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LThe Second Empire: 1840-

89• 1850 British pressure forces Brazil to outlaw the

slave trade• War of the Triple Alliance (1865-1870): Brazil,

Argentina, and Uruguay vs. Paraguay• 1871 Children born to Brazilian slaves no longer

considered slaves• 1888 Princess Isabel issues the

Golden Law that abolishes

slavery

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LThe Republican Era: 1889-

1930• 1889 Dom Pedro II is deposed and a provisional

republic headed by Marshal Deodoro da Fonseca is installed, central government controlled by coffee interests.

• Constitution of 1891: United States of Brazil restores autonomy to the states (26 states and one federal district)– Church and state are separated– Republicans turn to positivism– New Flag with motto “Order and Progress”

• 1897 Canudos war in Bahia

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LThe Republican Era: 1889-

1930• Rubber boom lasts until 1912• Dumont makes first registered flight in a

heavier than air machine in Paris in 1906• Much immigration from Italy, Portugal,

Spain, Germany, and Japan between 1888 and 1928

• 1924 Army rebellion led by Luis Carlos Prestes demanding social and

economic reform

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L Getúlio Vargas: 1930-1945

• Revolution of 1930; Oct. 24 President Washington Luis is ousted

• Constitution of 1934 shows direct influence of Italian Fascism

• Vargas rules for 15 years as constitutional president

• 1937 fascist “Estado Novo” dictatorship under Vargas begins

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L Modernization: 1945-1964

• 1945 Vargas deposed by a military coup• Three dominant parties: Brazilian Labor Party,

Social Democratic Party, and National Democratic Union General Eurico Gaspar Dutra is elected president and serves from 1946 to 1951

• 1951 Vargas is President again• Kubitschek President from 1956-1961

– 1960 New capital established at Brasilia– Populism and economic nationalism are casualties

• 1964 military overthrows President Goulart

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LThe Military Regime: 1964-

1985• For the next 21 years, Brazil was ruled by

a succession of military government – Medici Administration– Geisel Administration– Figueiredo Administration

• The country's economy prospered, but constitutional freedoms like free speech suspended

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L Democracy: 1985-1998

• Civilian government restored in 1985 with the election of Tancredo de Almeida Neves

• 1988 New Federal Constitution enacted• 1989 Collor de Mello elected• Itamar Franco and the “Real Plan”• Fernando Cardoso elected in

1994

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L Luiz Ignacio Lula Da Silva

• First elected in 2003

• Brazil's first elected leftwing president

• Currently in run-off elections

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L Population

• 188,078,227 people

• Most populous in all of Latin America

• 5th most populous country in the world– 6th with inclusion of European Union

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L Population by Religion

• Roman Catholic: 73.6%• Protestant: 15.4%• Spiritualist: 1.3%• Bantu/voodoo: 0.3%• Other/none: 9.4%

Roman Catholic

Protestant

Spiritualist

Bantu/voodoo

Other/none

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L Population by Age Group

• 0-14 years : 25.8 %• 15-64 years: 68.1%• 65 years and older: 6.1%

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L Population Growth

• Population Growth Rate: 1.04%

• Birth Rate: 16.56 births/1,000 population

• Death Rate: 6.17 deaths/1,000 population

• Infant Mortality Rate: 28.6 deaths/1,000

• Net Migration Rate: -0.03 migrants/1,000

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L Population by Sex

• At Birth: 1.05 male(s)/female

• Under 15 years: 1.04 male(s)/female

• 15-64 years: 0.98 male(s)/female

• 65 years and older: 0.7 male(s)/female

• Total Population: 0.98 male(s)/female

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L Population by Ethnicity

• White: 53.7%• Mulatto: 38.5%• Black: 6.2%• Other: 1.6%

• Largest Japanese population outside Japan– 1.5 million Japanese-Brazilians

• “Previous studies have claimed that around 80% of Brazilians possess African heritage”

White

Mulatto

Black

Other

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L Racism

• Brazil was the largest single destination for enslaved Africans– Due to mining and sugar cane production– Estimated 4 million slaves

• Approximately 35% of all slaves worldwide

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L Racism (cont.)

• Illiteracy rate for Afro-Brazilians is 26 percent, compared to 10 percent for whites

• A black man earns on average 48 percent less than his white counterpart in the same job – according to the Sao Paulo State Socio-Economic

Research Foundation

• In Congress, only 12 of the 513 members of the Chamber of Deputies and two of the 81 senators are of African ancestry

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L HIV/AIDS

• Adult Prevalence Rate: 0.7%– #63 of 168 countries

• People Living with AIDS: 660,000– #15 of 164 countries

• Deaths (yearly): 15,000– #32 of 148 countries

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L HIV/AIDS (cont.)

• “Brazil has one of the world's best programs for the prevention and treatment of AIDS” – The world director of the United Nations Joint

Program for HIV/AIDS (Unaids): Peter Piot

• The Brazilian government spends US$ 229.6 million (R$ 700 million) annually on AIDS treatment

• Condom consumption grew from 150 million in 1994 to over 600 million in 2003

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L Music

• Samba-widely known as Brazilian’s national musical style under the strong influence of immigrant black people from the Brazilian state of Bahia

• Bossa Nova- Brazilian music created by Antonio Carlos Jobin and Joao Gilberto; it derives form Samba but it is more harmonically complex

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L Music (Cont.)

• Axe- originated in Salvador, Bahia, Brazil; which come from a ritual greeting that means good vibration.

• Tropicalia- the cultural revolution that re-defined Brazilian art, music and fashion in the 1960s and beyond.

– Gilberto Gil

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L Capoeira

• Brazilian martial art developed initially by African slaves in Brazil at the start of the colonial period– Done in a “roda” spectators

surrounding the people that are performing, they interact by clapping along with the beat and sometimes even joining them.

There are two types of Capoeira– Capoeira Angola– Capoeira Regional

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L Carnaval

• It is a traditional Festival that takes place in Rio de Janeiro.– even though there are many

other carnavals going on in different cities with different themes.

• 4-day celebration: It starts on Saturday, and ends on Fat Tuesday, Sunday is seven weeks before Easter Sunday. The dates change every year but this year it was on Feb 25 through the 28.

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L Carnaval (Cont.)• The first records of Carnival

festivities in Rio de Janeiro date back to 1723. Immigrants from the Portuguese islands of Açores, Madeira and Cabo Verde introduced the Entrudo

• Every one can participate in the carnival, but it was not always this way. The Grandes Sociedades or Great Societies was a more organized parade that debuted in 1855, with the presence of the Emperor himself.

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L Dress Code

• For Women – Keep in mind that Brazilians are very

fashion conscious and follow European styles!

– Depending on what part of Brazil you go to and the time of the year, you can either wear a stylish business suit or a dress with a jacket.

– Take a good quality tote bag with you that zipped up - one that fits your laptop during the day and that you can wear when you go out with your Brazilian friends at night - beware of sticky fingers anywhere you go.

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L Dress Code

• For Men– Invest on the best suit you can afford

with a European design and cut and a good-looking silk tie - one that shows you're a man of good taste.

– Good shoes and a good leather belt are a must.

– Make sure you have a good haircut and look well-groomed and check your fingernails, at all times.

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L What not to wear in Brazil

• Women – Try not to wear blouses with bows and try to

stick to crisp elegant-looking shirts and tops. – Avoid polyester and double-knits – Makeup, because of the humidity

in Brazil try to avoid eye-shadows

and mascaras you would not

want your makeup running down

your face

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L What not to wear in Brazil

• Men– DO NOT under any

circumstances wear a tie with a short-sleeved shirt.

– Never, ever, wear socks with sandals when going casual

– Jeans no holes or patches on them

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L SOCCER• Brazil is known for its Soccer! • It is the only nation to have

competed in every FIFA World Cup tournament and they have won the tournament a record five times.

• Five World Cup Titles

• The country is renowned for the quality of its players, including Ronaldo, Pele, Romario, Roberto Carlos, Jairzinho,Rivelino, Zico, Carlos Alberto, Rivaldo, Garrincha, Kaka, and the current holder of the title of best football player in the world, Ronaldinho.

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Sight Seeing • Things to see and

Places to go– Carnaval– The Christ ,Corcovado:

The statue of Christ the Redeemer at Corcovado

– Sugar Loaf - Pão de Açúcar - The Sugar Loaf

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L Sight Seeing (Cont.)

– Copacabana: Copacabana beach

– Ipanema: Ipanema Beach

– Maracanã Soccer Stadium

– Botanical Garden– Tijuca Forest: The

Hiking Experience

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LBrazil’s International

Relations

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L Itamaraty

• Importance of Itamaraty

• Established the Instituto de Pesquisa de Relações Internacionais (IPRI)

• Ministério das Relações Exteriores

• Amorim’s agenda

• Who gets the final say in foreign policy decisions?

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L Foreign Policy Theories?

"It established, therefore, the principle that the Itamaraty represents the interests of the Brazilian nation and not those of

the government.. This directive resulted in Brazilian foreign policy

being more consistent and coherent in the following decades than that of

neighboring countries where diplomatic activity varied as

governments changed, making it difficult for them to defend their

national interests."

~ Baron Rio Branco

“I have not come here to serve a political party, but to serve our Brazil which we

all want to see united, intergrated, strong, and respected”

~ Baron Rio Branco

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LCurrent Issues under Lula’s

Reign

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• Lula’s Foreign Policy?

• Indifference to foreign affairs is seen in domestic politics

• Ignorance

• Diplomacy Tests

• Anti-Americanism & Anti-Europeanism

• Blaming the “Haves”

• Phony relations with “brother” Latinos

• Approach to Trade Talks

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L Mercosul

• What is it?

• Who partakes in it?

• What are its objectives?

• Advantages?

• Challenges?

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LMercosul Membership

~ Current members:Argentina (1991)Brazil (1991)Paraguay (1991)Uruguay (1991)Venezuela (2006)

~ Associate members:Chile (1996)Bolivia (1997), in process of joiningPeru (2003)Colombia (2004)Ecuador (2004)

~ Former Associate members:Venezuela (2004-2006), joined

~ Observer countries:Mexico (2004), in process of

becoming an associate member

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L F.T.A.A.

• Stands for ‘Free Trade Area of the Americas

• Leading up to the mid 90’s

• Opposition

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L Economic Overview

• Brazil has well developed agricultural, mining, manufacturing and service sectors

• Agriculture accounts for 10% of Brazil’s GDP

• Industry accounts for 40 of GDP

• Service sector for 50% of GDP

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L Import Policies

• No tariffs trades in excess of 35%

• Some imports are prohibited

• Flat tax import

• Import Licensing

• Brazil is part of MERCOSUR

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L Export Incentives

• Tax and tariff exemptions for equipment and materials imported for the production of good for export

• Excise and sales tax exemptions on export products

• Tax rebates on materials used in manufacture

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Brazil's Import Partners

20.0%

9.8% 8.7%5.2% 4.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

US Argentina Germany J apan China

Brazil's Export Partners

23.0%

6.1% 6.0% 5.8% 4.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

US Argentina China Netherlands Germany

Import / Export

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L Brazil’s Economy

• Brazilian economy grew 5% last year

• Policies laid foundation for strong growth– Decline on inflation – President Lula’s Policies– Consumer consumption

• Strong tax collections lead to a decline on deficit of 2.7%

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LBrazil’s Investment

Incentives• Accelerated depreciation on new machines and

equipment for industrial production• Income tax deductions for expenses of feeding

workers and providing transportation• Income tax deductions for cultural

donations/sponsorships• Value-added tax deductions for R&D spending in

the telecommunication sector in Brazil

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GDP Per Capita US$

$ 2,706.40$ 2,682.28 $ 2,175.47 $ 2,046.67 $ 2,227.83

$-

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

$40,000.00

2001 2002 2003 2004 2005

Brazil

US

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LConsidering Developments within the financial markets, the economy and the government over the past year, what is your attitude toward

the Brazilian investment market?

15%

62%

14%

9%

0%

0%

0% 10% 20% 30% 40% 50% 60% 70%

Highly optimistic

Somewhat optimistic

Neutral

Somewhat pessimistic

Highly pessimistic

No opinion

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LHow has your attitude toward the Brazilian

investment market changed over the past year, if at all?

9%

53%

17%

22%

0%

0%

0% 10% 20% 30% 40% 50% 60%

Much more optimistic

Somewhat more optimistic

No change

Somewhat more pessimistic

Much more pessimistic

Don't know

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LHow would you describe the attitude of

individual Brazilian citizens toward investing generally?

12%

33%

31%

21%

3%

1%

0% 5% 10% 15% 20% 25% 30% 35%

Ver y posi tive atti tudes towar d investing

Somewhat posi tive atti tudes towar d investing

Neither posi tive nor negative atti tudes towar d investing

Somewhat negative atti tudes towar d investing

Ver y negative atti tudes towar d investing

Don't known

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LWhich THREE market sectors do you feel offer the most

upside potential in Brazil over the next three years?

3%

37%

49%

9%

4%

40%

22%

4%

0%

50%

23%

6%

26%

33%

4%

0% 10% 20% 30% 40% 50% 60%

Automobile

Basic Materials (including chemicals, metals, forest products)

Banking, finance and insurance

Capital goods and industrials

Communications, Technology and Telecoms

Consumer goods and services and retailing

Construction

Heath care, biotech and pharmaceuticals

Media and publishing

Oil and gas, energy, utilities

Transportation (ports, shipping, ground transport)

Travel, Hotel and Tourism

Real State

Agriculture

Other

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L Employee’s Attitudes

• Brazilians prefer having native Brazilian supervision, rather than foreigners

• Hard working, industrious people– Loyal and very efficient

• English is considered a luxury• Verbal performance evaluations are more

valuable in the factory environment• Today, supervisors are younger than in the past• High appreciation of social events in the

workplace

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L Conclusion

• Brazil is a great place to do business

• A socially conscious government who helps their people

• Rising optimistic attitudes towards the economy

• A large population provides a competitive workforce