Brazil's growing economic role in Latin America sparks controversy

Discussion in 'Central & South America' started by AlexMagnus_, Oct 21, 2011.

  1. AlexMagnus_

    AlexMagnus_ New Member

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    Brazil's growing economic role in Latin America sparks controversy

    Brasilia, Brazil (Reuters) - Brazil's economic weight is helping build roads and dams across Latin America - but not everybody is welcoming the construction boom.

    Hydroelectric plants and transcontinental highways financed by Brazil are flourishing across South America with the promise to boost south cooperation and open strategic trade routes to Asia.

    The development is a symbol of the country's growing economic might.

    But the flipside of the construction boom is drawing criticism in some areas - even sparking accusations of imperialism.

    Brazil has dozens of works planned or under construction to improve infrastructure in Latin America, with loans by Brazil's state development bank BNDES expected to reach 1.5 billion dollars this year.

    But one project sponsored by the bank in neighbouring Bolivia has become a flashpoint of controversy.

    President Evo Morales was forced to suspend the construction of a major highway through the Amazon rainforest following protests by indigenous in the area who said the road would destroy their way of life and the delicate eco-system.

    Balancing the two is a challenge Brazil is likely to wrestle with in the future.

    Wildlife technician Carlos Capriles said the local environment would suffer with the highway that would link the plains of Beni to Chapare.

    "In the first place, it would disturb the fauna and, obviously, part of the vegetation that is more static would be completely destroyed. In a short period of time we, definitely, would see the consequences", he said.

    It was not the first time that Brazilian construction firms face problems and opposition in the region.

    Three years ago, Morales cancelled a road contract with builder Queiroz Galvao. In June, Peru's government revoked a concession for a Brazilian company to build the Inambari dam in the Amazon.

    In 2008, Ecuador frayed ties with Brazil after it expelled builder Odebrecht alleging faulty construction of a hydroelectric plant.

    Social conflicts over resources and environmental destruction are frequent as parts of the roads and dams run through some of the most pristine corners of the Amazon basin.

    Environmentalists warn of increased logging, illegal gold mining and also say the new connections across the region could aid drug trafficking.

    The Brazilian government has repeatedly stated that such works are vital to support the country's robust growth and are part of win-win moves for all nations.

    Yet, critics complain that only Brazil will benefit from the roads while others would be burdened with debt and forced to cope with social and environmental damage.

    Brazilian congressman Roberto Lucena was one of the lawmakers who asked President Dilma Rousseff to withdraw financial support to the planned highway in Bolivia.

    He said that Brazil should be more careful.

    "I am not against Brazil playing this leading role as it relates to taking up the responsibilities that have come along with its leadership in the region and helping our neighbours to meet their infrastructure demands as well as other needs. I think that in this case and in similar situations, for instance, Brazil needs to have a more clear and defined set of criteria regarding human rights", he said.

    Brazil, which borders nine countries, says roads will deepen economic ties and allow South American goods to flow into its alluring domestic market, fuelled by a burgeoning middle class.

    More than 20 million Brazilians have been lifted out of poverty thanks largely to social welfare policies and stable economic management that made Brazil a darling among Wall Street investors.

    The coming decade also looks bright, with massive, newly discovered offshore oil reserves due to be exploited and the World Cup and Olympics to be hosted here.

    Gonzalo Chavez, an economist at Bolivia's San Pablo Catholic University, said Brazil was changing its stance in the global stage.

    "Brazil is playing the leading role that has been called upon in the past 20 years. Now, Brazil it is considered a BRIC (referring to Brazil, Russia, India and China Group). Brazil in Latin America is clearly an emerging economy which is growing in a significant way, which has lifted many people from poverty, which has a massive middle class and which has started to see the world through another type of set of eyes", he said.

    After decades of paying little attention to the rest of South America, Brazil is now asserting itself as the natural leader of a continent the United States, currently mired in economic uncertainty, has long viewed as its own backyard.

    Two transcontinental highways that link the Pacific to the Atlantic Ocean have opened or will open this year, and two others are planned or under construction.

    The routes mostly connect Peruvian and Chilean shores to the Brazilian coast, where the largest port in Latin America is located in Santos.

    The new infrastructure will alter the geopolitical landscape as China demands more food, minerals and oil from resource-rich South America.

    Brazilian Minister of Ports, Jose Leonidas Cristino, said the government was working to improve the country's poor infrastructure.

    "We know that Brazil will keep growing and in order to grow we must improve our transportation infrastructure including highways, railways, seaports and cabotage. The government is handling all these segments with great care and President Dilma has made it clear the need to focus on this care", he said.

    Brazil is a leading exporter of soy, sugar, coffee, oranges, beef and iron ore, as well as a top producer of green fuels.

    China has already displaced the United States as Brazil's top trading partner, with $56 billion in trade flows in 2010, a 25-fold increase from 2000.

    Published on October 17, 2011

    Authored by: Rafael Marsiglia / Reuters

    http://www.ntn24.com/news/news/brazils-growing-economic-role-latin-america-sparks-controversy

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  2. Margot

    Margot Account closed, not banned

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    Sounds like someone is having an attack of sour grapes.

    Look at Brazil's history.. I don't they have had a conflict with their neighbors in 180 years.

    They would rather go to the beach, drink a beer and listen to music.

    I wouldn't worry about Brazilian Imperialism.
     
  3. AlexMagnus_

    AlexMagnus_ New Member

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    You are half right, Margot.

    There are a lot more to focus on than on imperialism right now. And these works are just what they pretend to be: solving regional infrastructure needs.

    The problem is that smaller countries always tend to fear the movements and actions of the bigger ones. And everytime Brazil does something, neighbours complain.

    . . .

    About being "half right"... I don't like beaches.

    . . .
     
  4. Margot

    Margot Account closed, not banned

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    LOLOL.. Are you Brazillian? My neighbors are and they are adorable people.

    These infrastructure projects will benefit the neighbors too in time.
     
  5. AlexMagnus_

    AlexMagnus_ New Member

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    Yes, I am :^)

    . . .
     
  6. AGS

    AGS New Member

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    I believe the infrastructure will cause problems with the animals and jungles..we need a future technology of teleportation so we can bypass all of the highways..
     
  7. AlexMagnus_

    AlexMagnus_ New Member

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    Hehe, that would be really nice.

    . . .
     
  8. litwin

    litwin Well-Known Member

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    edition: China's growing economic role in Latin America sparks controversy



     
  9. AlexMagnus_

    AlexMagnus_ New Member

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    China is actually an option for poorer people in the region to buy cheap technological goods they would not have other way.

    There is some concern about their highly competitive slavery-based industry, but the lower classes are loving it.

    On the other hand, China is buying Brazilian, from fruits to airplanes. Embraer, which is one of the largest aircraft manufacturers in the world, has just arrived there with a new factory to sustain the demand.

    . . .
     
  10. Margot

    Margot Account closed, not banned

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    Oh that's grand.. so some of that money is pouring back into the Brazilian economy.
     
  11. AlexMagnus_

    AlexMagnus_ New Member

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    I don't know how much, but yes, it is.

    . . .
     
  12. AlexMagnus_

    AlexMagnus_ New Member

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    Embraer plans to build executive jets in China

    by Staff Writers
    Sao Paulo (AFP) Aug 10, 2011

    Brazil's Embraer, the world's third largest commercial aircraft manufacturer, said Wednesday it was putting final touches on plans to transform its factory in China to produce executive planes.

    "We are finalizing an agreement" with Chinese group Avic International Leasing, Embraer's vice president Marco Tulio Pellegrini told reporters in Sao Paulo.

    He said the company has seen an expressed interest in Brazilian executive jets.

    Embraer maintains a factory in the frigid northeastern city of Harbin, where it builds its 50-seat ERJ-145 model, but it plans to convert that facility to produce the Legacy 650, with 14-seat capacity.

    China has an "unmet demand (for executive jets) and now that will be met. We must seize the moment," said Pellegrini.

    According to Embraer's projections, China represents a $14-billion market from now to 2020 for executive aircraft. In comparison, the Brazilian market is valued at $6 billion.

    The Brazilian government is also pursuing negotiations with Chinese authorities so that Embraer can build 120-seat commercial aircraft.

    Embraer anticipates a response by the end of the year, a spokesman said.

    The company is the third largest aircraft manufacturer in the world after American Boeing and Europe's Airbus. In 2010, it sold 101 commercial aircraft and 145 executive jets.

    http://www.spacemart.com/reports/Embraer_plans_to_build_executive_jets_in_China_999.html

    . . .
     
  13. litwin

    litwin Well-Known Member

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    ^ as usual "The Devil is in the details" and Hans are the most skillful in the world to write in the important strategical details, im sure it will be Chinese credit line, control over the sensitive technology, etc ...
     
  14. Margot

    Margot Account closed, not banned

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    That's great.. China is buying a million barrels of oil a day from Arabia.. Commerce tends to be a good thing. Pooler, GA is making luxury private planes mostly for the ME market.


     

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