“Brazil takes off,” so proclaims The Economist this week. The British magazine concludes that Brazil is now officially a stable democracy with a dynamic market economy. No more jokes about how Brazil is the eternal “country of the future;” this time things are different.
However, The Economist warns about “hubris.” Certainly, regardless of the credibility of Brazil’s “entrance onto the world stage,” one lesson must be clear: development takes time and perseverance. The Brazilian example underscores a common trait of all newly developed countries and leading emerging markets, namely that good things don’t happen overnight.
In fact, the Brazilian “economic miracle” had already happened in the 1960s and just 10 years ago the country had one of the world’s lowest per capita incomes. Moreover, as the recent blackouts show, Brazil has many problems ahead before it can proclaim victory. And yet, development is never a final stop but a continuous journey.
That is, indeed, the lesson of all countries freed after the Berlin Wall fell. Look at every Eastern European country today and you will find serious economic challenges and plenty unresolved political issues. Nevertheless, as The Economist rightly points out, what distinguishes Brazil (and most of the Eastern European countries) is the prevalence of democratic institutions.
In Brazil, individuals are largely free to participate in partisan politics, to express their opinion, and to establish businesses. Thus, the country has a solid platform to sustain the political stability and protect the rule of law and property rights that underpin long-term economic growth. Hopefully, Brazilians will look at their northern neighbor Venezuela to remember that neither political nor economic freedoms should be taken for granted.
Published Date: November 23, 2009