Commodities, Currency and Corruption

These three C's are at the center of any current discussion of the Brazilian economy. The value of the commodities of this land has it's roots (bad pun intended) far back to the Pau-Brazil trees (commonly believed origin of name of the country) which were heavily harvested and expor(loi)ted during the early centuries of Portuguese colonial rule. Easily extractable commodities have formed the basis of the early brazilian economy and continue to provide much of the force to the economy. Commodities today principally: Oil, Sugar, Corn and Coffee.

A stable currency has eluded Brazil for most of it's history. Many currencies failed prior to the establishment of the modern brazilian 'real' in 1994. This currency has been a very stable currency with little inflation relative to past currencies. The past year has been quite an interesting one. This link shows the Brazilian Real the 30% gain the Brazilian Real has experienced over the past year and also compares this to the slightly over 20% gain with the Ruble and slightly below 20% gain for the Rupee. These BRIC nations are more and more gaining a sort of collective identity and their future is becoming more and more aligned. The Chinese Renminbi is a distinctly different currency in this case since it is not traded on the open markets as the others, and is mostly flat during this same period.

Corruption at all levels of Government and Business is an interwoven reality of life and of course investment in Brazil. Political corruption has in many ways restricted a good deal of productivity and influence on the international stage.

These three C's are essential to the story of Brazil.