MercoPress. South Atlantic News Agency
Rousseff warns austerity measures alone are not sufficient to address economic crises
The Brazilian president addressing the influential Medef in Paris Brazilian president Dilma Rousseff criticized in Paris policies that are limited to austerity when facing crises because they are not effective in economic terms and only generate ‘more recession and unemployment”.
“Austerity by itself only generates more recession and more jobs’ losses” because making budget adjustments “is not efficient unless practiced in the framework of growth” underlined the Brazilian leader during a conference at the powerful French business organization Medef.
Budget cuts only lead to social and production disarray which is very damaging for the economy and restabilising the previous level of activity needs of long term projects, she warned.
The Brazilian leader in the second day of her official visit to France said that because of the problems in the Euro zone and the threat of the ‘fiscal cliff’ in the US, the crisis has become chronic, which also has a negative impact on emerging countries such as Brazil.
Likewise Industry, Development and Foreign Trade minister Fernando Pimentel admitted the Brazilian economy would only expand in the range of 1% this year, “below our estimates” although he anticipated that in the first quarter of next year “it will pick up and reach an annualized 4%:
Further on Rousseff detailed the stimuli programs to prop the economy and income distribution which has enabled in the last ten years to create 17 million new jobs and lift form poverty 40 million people that now belong to the middle class, estimated in 105 million or 55% of the Brazilian population.
“Our results have been important for the construction of a masses’ market in Brazil based on economic growth with income distribution and healthy public finances” said the president underlining that the country’s debt represents 35% of GDP.
Finally President Rousseff invited French business people to invest in Brazil, mainly in infrastructure and called for a more balanced bilateral trade because “Brazil does not want to be limited to exporting commodities, but also intends to become a leading exporter of manufactured goods”.
Top Comments
Disclaimer & comment rules-
-
-
Read all commentsYour CommentDilma is advocating 'Growth' as the way forward for 'developed' Europe. In this way, she says, recessions and cliffs will not impact adversely on Brasil.
Dec 13th, 2012 - 10:55 am 0OK, if there is something to grow.
If most Production is transferred to China, leaving mostly Service within Europe, there may be little in the way of trade flows that can benefit Brasil. [Does Brasil view such products as from a European company or as being 'Chinese'?]
For trade to blossom requires open markets. Is Brasil's market open to Europe? Or are there Brasilian-imposed trade barriers?
And does 'Developed' mean the same thing everywhere?
The UK may have a developed - though largely Victorian - infrastructure, education system, health service, etc, but if all national resources are taken up - and more - servicing the developed status, then where is the scope to build the economy?
Yes, I am aware of the answer; drop wages to Chinese levels and re-build production capacity in the UK. But this is a trough the UK might not want to go through.
And, at a time when Dilma is redistributing income from the rich to the poor to 'build' by enhancing buying and credit, it would seem illogical to advise the UK to chose to become poor simply to help out Brasil, etc.
I am becoming sufficiently old now to actually have observed the rise and fall of nations. This never happens as a result of altruism.
For the UK - and Europe - to transfer their Production from China to Brasil needs some thought on Brasil's part to costs, to 'red-tape', and to corruption.
She has MUCH to do to make her country the 'country of choice' for Production.
The word is “Rhetoric” .... the word by which all politicians survive...all words and no action.....all problems but no solutions...
Dec 13th, 2012 - 11:43 am 0The economic problems of the World of democratically elected governments are all caused by politicians bribing the the hoi poloi with borrowed money in order to get re-elected. The great problem with democracy is that the people forever demand more from their governments and the politicians forever borrow more to bribe them with. The end result is that a time comes when governments cannot borrow any more and thus you arrive at the problems that the PIGS (Portugal Ireland, Greece, Spain) are going through where Newton's third law of motion doesn't work...The people can “scream and holler” all they like but the central governments won't- can't move an inch.
Brazil, Canada, Australia, et. al. have been prospering off the great Eastern dictatorship...China's demand for commodities to support their their cheap labour industial activities.
The UK has just hired a Canadian banker who say he will keep interest rates in the UK low for as long as it takes to get the economy moving again....this will result in a continued lower pound and lead to massive inflation within 10 years..
it will not cure the problem of their massive national debt....without reducing the demands of the hoi poloi for more services and handouts from government.
You can tax the rich with 50-75% tax rates but that doesn't work...they arrange to have their taxes laundered through low tax jurisdictions. the French rich are either leaving the country or re-arrangim=ng their income strategies...75% tax on the rich is once again just RHETORIC..a sale for the masses...not a solution.
I'm not being funny but just right now, Brazil are doing quite well but it's not always been the case and may not be in the future. I really don't think they are in a position to lecture.
Dec 13th, 2012 - 01:25 pm 0Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!