Brazil’s with 2 “Lost Decades” they need Global Value Chains

Published by buyer33 on

The Brazil economy doesn’t have the raw force to drive it forward. The Federative Republic GDP per capita is today back where it was in 2010; this means the people of Brazil have lost the entire last decade.  Worse yet, during the 80’s they had another “lost decade.” The current lost decade is the second time this has happened in the last 40 years. Over the last forty years, Brazil had over 20 years of zero GDP growth per capita.

The overall economy of over 200 million people will decline by a record 5% this year, and is now forecast to rebound by 3% in 2021, according to consensus forecasts.

With emergency aid to millions of Brazilian families expiring, unemployment is at a record of 13.5 million. “From Q3 this year I think you will see a strong deceleration in the recovery.  We will have GDP growth next year due to statistical effects, but the pace of recovery will be slow,” said Guilherme Mello, economic professor from the University of Campinas in Sao Paulo state.

South America’s largest country has been affected by Covid 19 causing basically no economic growth over 10 years.  What is a real path for this largest Portuguese language nation to have an organic economic recovery?

Many studies claim the best and most successful way for Brazil to economically expand their organic economy, in an effort to employ the over 13 million jobless citizens, is for companies to aggressively adopt Global Value Chain (GVC).

It is time that the country understands the recently published research that shows using Global Value Chains have proven to be one of the single best ways to raise the country’s middle class incomes while also increasing global manufacturing, improving local lives and providing higher quality opportunities.

Business confidence has rebounded since June. However, the outlook for many industry sectors, such as oil and textiles, remains poor to bleak. So what should Brazil do to improve their long term rudderless course?

They need to focus more on providing quality, often high labor intensive, global exports.  Possibly the best way to improve the economy, according to studies, is providing a truly global value chain (GVC) – where one’s goods could be shown globally. (For example ShopTheGlobe offers a fast growing platform) –  as it is proven GVC raises incomes, provides jobs and reduces poverty.

When countries such as Brazil begin expanding their use of GVCs, it allows each company to utilize its country’s very strong comparative advantages (for Brazil it’s very low cost employment combined with unlimited  labor). Historically, this has greatly advantaged export markets, helping many counties in achieving a global market entrance, making it easier to raise capital to improve and expand existing and growing products.

Brazil needs to increase its economy and business profitability and not always focus on more government debt, or additional debt spending for their Covid 19 recovery. It needs to improve its global position by focusing on its country-wide strengths and competitive advantages, in global free and fair trade markets. One of the best advantages for individual companies is to utilizes a strong GVC (such as ShopTheGlobe).  Strong company adoption of GVCs could help them expand on world wide platforms, thus greatly increasing their global awareness and increasing their bottom line and the need for more employment.

Categories: Afghanistan Global Value Chain - Free ListingArgentina Global Value Chain - Free ListingAustralia Global Value Chain - Free ListingAustria Global Value Chain - Free ListingAzerbaijani Global Value Chain - Free ListingB2B Wholesale Online MarketplaceBangladesh Global Value Chain - Free ListingBelarus Global Value Chain - Free ListingBrazil Ecommerce ShoppingBuy & Sell Wholesale OnlineBuy B2B - WholesaleBuy Bulk GloballyBuy GlobalBuy GloballyBuy Low Priced WholesaleBuy Wholesale GloballyBuy WorldwideBuy Worldwide OnlineColombia Global Value Chain - Free ListingCongo Global Value Chain - Free ListingCosta Rica Global Value Chain - Free ListingCôte d’Ivoire Global Value Chain - Free ListingCroatia Global Value Chain - Free ListingCyprus Global Value Chain - Free ListingCzech Global Value Chain - Free ListingDenmark Global Value Chain - Free ListingDiscountDominican Republic Global Value Chain - Free ListingDR of the Congo Global Value Chain - Free ListingEcommerce Wholesale OnlineEcuador Global Value Chain - Free ListingEgypt Global Value Chain - Free ListingEl Salvador Global Value Chain - Free ListingEngland Global Value Chain - Free ListingEstonia Global Value Chain - Free ListingEthiopia Global Value Chain - Free ListingFind Goods GloballyFinland Global Value Chain - Free ListingFrance Global Value Chain - Free ListingGeorgia Global Value Chain - Free ListingGermany Global Value Chain - Free ListingGhana Global Value Chain - Free ListingGlobal MarketsGlobal Shopping is EasyGlobal Value ChainGlobal Wholesale - Wholesale & B2BGlobal Wholesale OnlineGlobal Wholesale StorefrontGuinea Global Value Chain - Free ListingIsrael Global Value Chain - Free ListingItaly Global Value Chain - Free ListingIvory Coast Global Value Chain - Free ListingJapan Global Value Chain - Free ListingJordan Global Value Chain - Free ListingKazakhstan Global Value Chain - Free ListingKenya Global Value Chain - Free ListingKorea Global Value Chain - Free ListingKuwait Global Value Chain - Free ListingLaos Global Value Chain - Free ListingLebanon Global Value Chain - Free ListingLibya Global Value Chain - Free ListingLow CostLuxembourg Global Value Chain - Free ListingMadagascar Global Value Chain - Free ListingMalawi Global Value Chain - Free ListingMalaysia Global Value Chain - Free ListingMali Global Value Chain - Free ListingManufacturing StorefrontMerchant MarketplaceMerchant Shopping OnlineMexico Global Value Chain - Free ListingMorocco Global Value Chain - Free ListingNext Generation Online Wholesale ExchangeOne Stop Wholesale ShoppingOnline Business SuppliesOnline WholesaleOnline Wholesale StoreOpen Wholesale PlatformPeru Global Value Chain - Free ListingPhilippines Global Value Chain - Free ListingPoland Global Value Chain - Free ListingPortugal Global Value Chain - Free ListingPuerto Rico Global Value Chain - Free ListingRomania Global Value Chain - Free ListingRussia Global Value Chain - Free ListingSaudi Arabia Global Value Chain - Free ListingScotland Global Value Chain - Free ListingSell B2BSell BulkSell Bulk GloballySell GlobalSell Global OnlineSell manufacturing directSell WholesaleSell WholesaleSell Wholesale GloballySell WorldwideSell Your Goods GolballyShop B2B WorldwideShop Belo Horizonte Wholesale - Buy and Sell Global ProductsShop Belo Horizonte Wholesale in Portuguese - Buy and Sell Global ProductsShop Brazil WholesaleShop Brazil Wholesale in PortugueseShop BulkShop Global DiscountShop Online Wholesale B2BShop Rio de Janeiro Wholesale - Buy and Sell Global ProductsShop Rio de Janeiro Wholesale in Portuguese - Buy and Sell Global ProductsShop São Paulo Wholesale - Buy and Sell Global ProductsShop São Paulo Wholesale In Portuguese - Buy and Sell Global ProductsShop the GlobeShop WholesaleShop Wholesale GloballyShop Wholesale OnlineSingapore Global Value Chain - Free ListingSlovenia Global Value Chain - Free ListingSomalia Global Value Chain - Free ListingSouth Africa Global Value Chain - Free ListingSpain Global Value Chain - Free ListingSri Lanka Global Value Chain - Free ListingSudan Global Value Chain - Free ListingTanzania Global Value Chain - Free ListingTogo Global Value Chain - Free ListingTunisia Global Value Chain - Free ListingTurkey Global Value Chain - Free ListingUAE Global Value Chain - Free ListingUkraine Global Value Chain - Free ListingUntied Kingdom Global Value Chain - Free ListingUruguay Global Value Chain - Free ListingUzbekistan Global Value Chain - Free ListingVanuatu Global Value Chain - Free ListingVenezuela Global Value Chain - Free ListingVietnam Global Value Chain - Free ListingWholesale B2B DistributorsWholesale In EnglishWholesale In PortugueseWholesale Products OnlineWholesale Shopping OnlineWholesale SuppliersWorldwide Wholesale StoreYemen Global Value Chain - Free ListingZambia Global Value Chain - Free ListingZimbabwe Global Value Chain - Free Listing