Brazil: Leading the BRICs Harvard Case Solution & Analysis

The new president of Brazil, Dilma Rousseff, has announced plans to maintain GDP growth above 5 percent a year, and continue to lead in the country among the emerging economies. Between 2003 and 2010, Brazil benefited from strong economic growth and a stable policy in the administration of Lula. Brazil also increasingly led BRIC (growing countries Brazil, Russia, India and China) in the multilateral negotiations, including the Doha round of World Trade Organization. However, operating in Brazil for a compulsory license patented therapy for HIV / AIDS and its victory in the old WTO dispute with the United States over cotton subsidies has created tensions with major trading partners. Entering office in January 2011, Rousseff was able to map out a new agenda for international trade. In particular, it had to decide whether to pursue the completion of the Doha Round, which was a dead end because of disagreements over global intellectual property rules and agricultural subsidies and tariffs, or instead to hold regional trade agreements in South and Central America. Rousseff also pledged active participation of the state in the economy, described the case as "Brazilian capitalism," but it was unclear whether the fiscal expansion, combined with conservative monetary policy would reduce bottlenecks in the growth and further disposition of high inequality in Brazil. "Hide
by Arthur A. Daemmrich, Aldo Musacchio Source: Harvard Business School 24 pages. Publication Date: February 02, 2011. Prod. #: 711024-PDF-ENG

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