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Brazil and IMF

Introduction to Comparative Politics Newspaper Analysis Assignment
Brazil tightens belt to win $15bn loan
This article fits very well into the General context of how the Latin American countries mould their policies according to the conditions set by the International Monetary Fund (IMF) and to please the IMF for granting loans to these countries. This article is about the Brazilian Government trying to get a $15 billion standby loan; the finance minister has announced raising the target for country's budget surplus to 3.5% up from 3% of the national economy. The article clearly indicates that this measure has been taken to get the loan from the IMF.
Also the generalizations discusses in class for the politics and economics of the region hold very true, the observers believe that this would make Brazil act as a buffer to other Latin countries against the economic crisisof Argentina which is mentioned to be close to defaulting on the foreign debts. And this was exactly what we had discussed in class about the economies of the Latin countries; all these countries have huge foreign debt and it is becoming increasingly impossible for theses countries to pay off their debts and IMF helps paying off the debts and stabilizing the economies. There is also mention of the possibility of the change of the political leadership which has made the investors nervous, and thus the loan that IMF is lending to Brazil covers the term of the current government.
From this article I get the clear picture of the politics in Brazil that the foreign debts drive the policies of the government, and the possibility of a change in the government which makes the investors nervous; the foreign debt continues to steers the economy in the direction of a not very bright future.

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