Economic Problems in Brazil & Argentina

Since the time of the first Arab crude oil embargo in the early1970s, the economies of Latin American countries have been reeling. Economic problems have been particularly acute in Latin America's two largest countriesBrazil and Argentina.

In both Argentina and Brazil, economic chaos has been punctuated by conflicting experimentation in the development and implementation of economic policy by domestic leaders, and by meddling from the international communityprimarily the United States and its surrogate the International Monetary Fund (IMF). Depending upon one's perception of these events, both Argentina and Brazil have been plunged into an economic and social morass from which they may never recover, or each country is on the verge of dramatic economic growth and political stability.

This research explores the contemporary state of economic, social, and political affairs in Argentina and Brazil. This exploration is pursued through considerations of debt and structural constraints, social pacts and collective action dilemmas, hyperinflation, and the implications of the "lost decade."

In both Argentina and Brazil, numerous economic stabilization plans have been implemented by the respective governments. Most of these plans were subsequently approved by the IMF.

Argentina has managed to renegotiate repayment, to some extent, of its

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ntinual deficit. Social Pacts and Collective Action Dilemmas Brazil has experienced and continues to experience serious economic and social problems. Some people in the first world tend to view Brazil as a country out of control. Such judgments, however, are made by people residing comfortably in developed economies, with little understanding or appreciation of what is required to move the world's sixth largest country (population), and tenth largest economy (gross national product) from the status of a developing to a developed country. While Brazilian cities are generally well off, distressing numbers of people are required to live in the favelas, or shantytowns, that have developed on the outskirts of the country's major urban areas. The people who live in the favelas moved from the countryside without promise of a good job, but with hope that they will be able to participate in an improving economy. Their numbers are usually more than a city can accommodate. Income distribution is highly skewed in Brazil, where the richest 10 percent of the population receive 50.6 percent of national income (de Castro, 1993, p. 2). That proportion compares to 26.6 percent in the United States. The richest 20 percent of Bra
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Some common words found in the essay are:
President Sarney's, Argentina Brazil, Dilemmas Brazil, Party PMBD, Latin American, Crusado Plans, Brazil Argentina, IMF Canitrot, United Brazil, Austral Plan, external debt, 1993 pp, argentina brazil, sola 1993, economic social, canitrot 1993, acua 1993, acua carlos, developing countries, smith william, canitrot 1993 pp, gamarra eduardo eds, carlos gamarra eduardo, eduardo eds democracy, sola 1993 pp,
Approximate Word count = 2772
Approximate Pages = 11 (250 words per page)

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