Posts tagged: BRIC

Brazil No Longer a Bottom Feeder

By , April 4, 2011 12:08 pm

At least at Fitch, Brazil is no longer sitting at the bottom of the ratings. Today, the U.S. based rating agency, upped Brazil’s credit rating from BBB- to BBB in part, says the Brazilian business magazine EXAME, because the country “has signaled that it’s serious about improving its fiscal position,” signals that include spending cuts, a modest increase in the minimum wage, and a steady reduction in loans from Treasury to Brazil’s development bank BNDES.

Rose Colored Glasses?

By , April 1, 2011 2:43 pm

At yesterday’s speech at the U.S. Chamber of Commerce, Sergio Cabral, the governor of the state of Rio de Janeiro claimed that

“não há nenhum atraso” em relação à Copa do Mundo de 2014 no Brasil [“there are no delays” in relation to the World Cup of 2014 in Brazil]

according to the Jornal do Brazil.

I hope he’s right, but I fear he needs to read Reuters.

Both Sides Now

By , March 31, 2011 11:51 pm

The governor of the state of Rio de Janeiro (where the Cidade Maravilhosa is located) is in the U.S. Today he spoke at the United States Chamber of Commerce in Washington D.C. where, according to the Jornal do Brasil, he spoke of the huge amount of investment his state is attracting, claiming that more than $111 billion will be invested in the state of Rio over the next three years, some he says is more investment money per “square kilometer” than in any place in the world.

Sounds pretty good, right?

Well, then there’s that story at Reuters:

Indeed, scenes like this are supposed to become a thing of the past here. Brazil plans more than $1 trillion in construction projects this decade to bring its woeful airports, roads and other infrastructure up to date — an ambitious building boom that will prepare the country to host the 2014 World Cup and 2016 Olympics, provide a bonanza of opportunities for foreign investors, and secure Brazil’s place among the world’s most dynamic emerging economies.

That’s the dream, anyway.

In reality, expectations are coming unraveled — fast. Brazil’s grand infrastructure plans now seem likely to fall well short of President Dilma Rousseff’s ambitions, according to a Reuters investigation of major building projects and interviews with nearly two dozen senior political leaders, investors, government watchdog groups and others.

I’m a big fan of Brazil in general and Rio in particular. I hope the Governor is right, but that Reuter’s story is disturbing.

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