Professional Documents
Culture Documents
OF
BRAZIL
Submitted to
Dr. Rajib Lochan Dhar
Department of Management Studies
Indian Institute of Technology
Roorkee
Submitted by:
Kadam Tushar Vilas 20810025
Kaustubh Pradhan 20810026
RC Konda Reddy 20810027
TABLE OF CONTENTS
Topic Page No.
The Country 2
The People 3
The Economy 6
Resources 8
Agriculture, fishing, and forestry 8
Industries 9
Administration and Social Conditions 11
PESTLE Analysis for Brazil 12
1
❖ The Country
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Brazil is the fifth largest country in population on Earth and accommodates one-third
of Latin America's population. Mostly the population is concentrated along the country's east
though the capital Brasilia is located far inland and an increasing number of migrants are
moving to inner provinces of the country. Rio de Janeiro is one of the most iconic cities in the
world and continues to be a preeminent icon of Brazil in the eyes of many. Due to its increased
urbanization, hydroelectric and industrial complexes, mining, and fertile farmlands make it one
of the world's major economies. However, the country still struggles with extreme social and
income inequalities, environmental degradation, financial woes, and an inefficient political
system.
The country got its independence from the former United Kingdom of Portugal on 7
September 1822 through a series of political and military events that occurred during 1821–
1824, which include disputes between Portugal and Brazil regarding the call for independence
presented by the Brazilian Empire. Because of that hegemony, Portuguese is the most spoken
language in the country
• Geographical regions:
The country has been divided by the Brazilian Government into five large geographic and
statistical units called Major Regions (Grandes Regiões) for administrative purposes. These
major regions are as follows-
North (Norte) - Includes more than two-fifths of Brazilian territory including most of the
Amazon rainforest
Northeast (Nordeste) - Covers nearly one-fifth of Brazil's land area and more than one-fourth
of the population.
Central-West (Centro-Oeste) - The region occupies roughly one-fourth of Brazil and includes
forested valleys, semiarid highlands, and vast wetlands.
Southeast (Sudeste) - The Southeast covers only one-tenth of Brazil's land area but inhabits
two-fifths of its population and has the greatest concentration of industrial and agricultural
production in the nation.
South (Sul) - It is the smallest of Brazil's regions and it holds one-seventh of the country’s
population, including many people of European ancestry, particularly from Germany and Italy.
❖ The People:
• Ethnic Groups:
Brazil has long been an assimilation wide range of cultures. From colonial times Brazilians
have favoured assimilation and tolerance for other peoples, and intermarriage is widely
accepted in Brazil than in most other European colonies; however, issues of ethnic strife and
exploitation continue to because of concern for Brazilian society, and some groups have chosen
to remain separate from mainstream social life.
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Brazil accommodates a large number of people of European ancestry and make up the largest
segment of the Brazilian population. A large influx of Portuguese immigrants, as well as
millions of other Europeans (specifically Italians) who migrated around the late 19th and early
20th centuries, constitute most of the foreign immigrants.
• Religions:
More than two-thirds of the Brazilian population follows Roman Catholicism. The country is
also witnessing an increasing number of adherents to Eastern Orthodoxy, Buddhism, Islam,
and other religions which constitute a significant proportion of the Brazilian population.
• Demography:
Like most emerging economies, Brazil has a large proportion of the young population, but the
median age of the population has been increasing since the mid-20th century. As the Brazilian
society has been modernizing and becoming more affluent, life expectancy has been increasing
and the rate of population growth is on a steady decline. The birth rate has also been on a steady
decline but there are regional variations. In 1960 the average was 6 births per female of
childbearing age, and a high of 8 - 8.5 in the most rural areas and much lower rates in Rio de
Janeiro. By the early 21st century the country's birth rate has dropped to roughly 2 births per
childbearing woman, partly because of large acceptance of family planning measures by the
population. The high infant mortality rate is still a serious concern but varies widely according
to the region and socioeconomic status: in the affluent urban states the rate is quite low, but in
the poor communities, especially in the Northeast, it is much higher.
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Fig: Age breakdown for Brazil
• Cultural Life:
The cultures of the Portuguese, Africans, and indigenous Indians have together formed the
modern Brazilian way of life. The Portuguese culture is by far has the most dominating
influence since its Brazilians acquired their religion, language, and most of their customs.
Cultural imports from North America and Europe have often competed with and influenced
Brazilians' cultural output, and critics have argued that this has been damaging the nation's
cultural identity. Despite multiple social and economic challenges, Brazilians continue to be
exuberant and creative in their celebrations and art forms.
• Daily Life:
Family ties, both immediate and extended, generally remain stronger than in western
Europe and North America. Family members generally live close to one another, holding
frequent additional rings or reunions at a ranch or family farm on weekends and holidays.
However, kinship ties which are based on the traditional system are dependent on stability and
wealth for its preservation, which is no longer as strong as it once was, given the urbanization
and increased mobility of the Brazilian people.
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❖ The Economy
Brazil is a world leader in the mining industry, agriculture, and manufacturing and the country
has a strong and rapidly growing service sector. Brazil is a leading producer of a large number
of minerals including iron, bauxite, tin, gold, manganese, diamonds, and other precious metals
and it exports large quantities of stainless steel, electronics, automobiles, and consumer goods.
The world is heavily reliant on Brazil for coffee, cassava (manioc), oranges, and the country is
a leading producer of sugar, soy, and beef. However, the share of agriculture in the Brazilian
economy has been on a steady decline since the mid-20th century when the country embarked
upon rapid urbanization and exploitation of its vast natural resources. The city of Sao Paulo, in
particular, has become one of the world's major industrial and commercial centres.
High rates of inflation during the late 20th century affected every aspect of Brazil's
economic life. Inflation was attributed to the government's policies of heavy financing of
industrial expansion, deficit spending, and loan subsidies for businesses and another reason
was the practice among individual Brazilians of obtaining loans from foreign banks when
domestic credit was limited or restricted. In the late 20th century, Brazil witnessed record-high
rates of inflation, according to the constantly corrected value of the government's bonds. This
policy virtually institutionalized inflation and made the public accept its inevitability. As a
result, the country's anti-inflation programs were only marginally successful till the mid-1990s,
when the Brazil government initiated the Real Plan (Plano Real), a policy that strictly restrained
government spending, made other fiscal reforms, and introduced a new currency.
The government disinvested dozens of financial institutions, manufacturing, and
mining companies in the 1990s, including several leading steel producers. The CVRD, Brazil's
mining, and shipping giant was carved up into separate mining and shipping units. The
government sold a minority of its stake in Petrobras to private investors and allowed a limited
competition in the petroleum industry. An additional public offering of Petrobras' shares was
made in 2010, notably, the company raised about $70 billion in the world's largest APO, but
the government retained its majority ownership.
At the start of the 21st century, the Brazilian economy was marked by serious problems,
aggravated by political uncertainties. Inflation, financial instability, and unemployment (or
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underemployment) posed serious threats, and financial and political scandals periodically
erupted throughout the country. However, by mid-2004 the inflation was decreased, and for
the first-time government-issued bonds in its currency, instead of the dollar. Brazil has one of
the world's most uneven distributions of wealth: 10 per cent of the people account for nearly
half of the country's income, whereas the poorest 40 per cent of the population accounts for
less than one-tenth of the total. Besides, there has been unequal distribution of land, as it was
in colonial times, and social movements agitated for reforms.
❖ Resources:
• Minerals:
Brazil is home to extremely rich mineral reserves which are still partly explored and
exploited, including bauxite, iron ore, copper, tin, and pyrochlore (from which ferroniobium is
derived). The country also holds significant deposits of manganese, asbestos, granite, gold,
quartz, gemstones, tantalum, and kaolin (china clay).
• Biological Resources:
Three-fifths of the country's land area is covered by forests that account for one-sixth to
one-seventh of the world's forest coverage. Currently, a small portion of Brazil's timber comes
from the Amazon basin but the proportion has been increasing ever since roads and settlements
are being built in the Amazon basin. With a large coastline and numerous perennial rivers,
Brazil has access to substantial fishing grounds, but still, the fishing industry is underdeveloped
and productivity is quite low.
• Hydroelectric resources:
Brazil, with its large river systems and heavy rainfall, has one of the largest hydroelectric
potentials in the world. Most of the country's hydroelectric projects are concentrated in the
South and the Southeast, the areas which account for the vast majority of power consumption
in Brazil.
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• Fishing:
The country lags in fish production when compared to Argentina and Mexico, although
most of Brazil's population is concentrated along the Atlantic coast. Commercial fishing fleets
generate roughly two-thirds of the saltwater catch. Most ocean fishing in the North focuses on
lobsters which are caught primarily for export. Amazon River system accounts for roughly
one-fourth of the country's total freshwater fish.
• Forestry:
The South and Southeast regions account for the majority of the country's timber
production. Eucalyptus trees introduced from Australia, account for half of the timber
production in South and Southeast. Some other species like Honduras pine and many other
exotic species are also harvested. The timber from plantations is used primarily to manufacture
cellulose and paper products.
❖ Industries
• Power:
Brazil's total power capacity has expanded rapidly since 1950, mainly because of
hydroelectricity, which currently accounts for nine-tenths of the country's electric power. This
can be attributed to the government's lower priority to thermal power plants because of the poor
quality of coal. The opening of a gas pipeline in Bolivia in 1999 has been a major boost to the
construction of gas-powered thermoelectric generating plants, mainly in the Southeast.
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• Manufacturing:
Manufacturing accounts for about one-fifth of the country's GDP and more than one-tenth
of the labour force. Three-fifths of the country's industrial workers are employed in
manufacturing, who account for most of Brazil's wages and produce the most value of its goods.
The manufacturing sectors of Minas Gerais, Paraná, Rio Grande do Sul, Rio de Janeiro, and
Espírito Santo are increasingly offsetting the industrial strength of São Paulo, which alone
produces around two-fifths of Brazil's manufactured goods. Major manufacturing industries
include paints, electrical machinery, soaps, medicines, aircraft, chemicals, food products, steel,
and paper. The country has been also a major supplier of textiles, clothing, and footwear since
the early 19th century.
• Services:
Brazil's largest employer has been the rapidly expanding service sector which accounts for
more than half of the country's labour force. It consists of government services, including
national and local bureaucracies, public utilities, and dozens of special, agencies. In the private
sector, hospitality industries (restaurants, hotels, and bars) and repair shops of various kinds
account for the largest number of workers are employed.
• Trade:
Throughout the country's existence, foreign trade has been critical to the Brazilian
economy; however, exports historically hold for only a small part of the national income, and
the country has faced difficulties in maintaining a favourable trade balance, partly because of
its huge foreign debt payments. China and the United States are the country's major trading
partners. However, there has been an increase in the regional trade, notably with Argentina,
since the Southern Common Market (Mercosur) was established in 1991. When the foreign
debts of the country drastically reduced by the beginning of 21st century, exports increased
(owing to financial boost by government as well as increased government efforts for more
foreign market access), and the result was that Brazil witnessed a significant positive balance
of trade. Country’s expanding ethanol industry was another major reason for growth in exports.
10
Fig: Major export destinations for Brazil
• Tourism:
Tourism is a growing industry in Brazil, which receives some three million overseas
tourists every year. However, in comparison Brazilians visiting abroad spend significantly
more money than do foreigners visiting Brazil. Brazilians' preferred destinations include
Argentina, Uruguay, and the United States. Domestic tourists travel to Rio de Janeiro and other
easily accessible sites that are in or around urban centres with well-established hospitality
industries.
• Shipping:
Brazil’s extensive river system has a total navigability of around 50,000 km. The Brazilian
government launched a shipbuilding program in the 1960s, and since then the tonnage of cargo
increased dramatically, and, more importantly, ships stared carrying a larger volume of high-
value goods as the reliability and frequency of services improved. Around three-fourths of the
country’s ships are involved in coastal trade, with the Petrobras owing the largest proportion
of oceangoing vessels. Major port facilities of the country, historically known for their low
efficiency and high costs, were improved significantly in the late 1990s, owing to the
privatization. Major ports include Paranaguá, Rio de Janeiro, Recife, and Salvador.
• The Government:
Brazil is a federal republic consisting of 26 states and the Federal District (Distrito
Federal), the latter including the capital city, Brasilia. Since 1934 the country has had universal
suffrage. A new constitution was promulgated in 1988, the eighth since the country's
independence in 1822 and which effaced many traces of the military regime (1964–85), defined
civil rights, and outlined the functions of the executive, legislative, and judicial branches.
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• The legislature:
The country has a bicameral National Congress, comprising the Chamber of Deputies and
the Federal Senate. There are two sessions of four and a half months every year where Congress
meets to discuss the issues facing the country. The constitution vests power with the Congress
to rule in matters involving the federal government, especially related to fiscal policies and the
administration of the union.
• The executive:
President exercises the executive power, who is head of state and government, for a four-
year term (eligible for one re-election) directly through elections, and appoints cabinet
ministers several other heads of ministerial-level departments. The president has wide powers,
particularly in economics and finances, internal security and foreign policy.
• The Judiciary:
Brazilian judicial system has long been criticized for inefficiency, incidents of widespread
corruption, political favouritism and efforts have been made to reform it, which includes the
adoption in 2004 of Constitutional Amendment 45. The amendment established the principle
of stare decisis, under which high courts' decisions were to be followed as binding precedents,
to increase the efficiency of lower courts.
➢ Political:
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➢ Economical:
Brazil is the ninth-largest economy in the world. After almost a decade of growth
(2002-2013), the country entered into the worst recession in Brazil's history in 2015 (-3.8% )
and 2016 (-3.6%). This economic crisis resulted due to the fall of commodity prices and a drop
in consumption and investment. In 2019, inflation grew slightly, reaching 3.72% (compared
to 3.67% the previous year) and is expected to decrease to 3.56% in 2020. Fiscal consolidation
is the union government's main objective, but even though the fiscal deficit is expected to
narrow in 2020, the President's promised to reduce the imbalances to zero this year is not
feasible. The government's budget balance registered in 2019 a deficit of 6.02% of GDP. It is
expected to be 9.35% in 2020 and around 6.13% in 2021.
Brazil has numerous natural resources and a relatively diversified economy. It is the world's
largest producer of sugar cane, coffee, and oranges, and is one of the world's leading producers
of soy. With forest covering half of the country and the world's largest rainforest, Brazil is the
world's fourth-largest exporter of timber. Brazil also has large industrial power and has
benefited greatly from its mineral ore wealth. The service sector represents over 63% of
Brazil’s GDP and employs almost 70% of the active workforce. During recent years, the
country has embarked on the production of high added-value services, especially in the fields
of aeronautics and telecommunications
➢ Social:
The current population of Brazil is 212,941,524 as of Friday, October 2, 2020, based on the
latest United Nations estimates. Brazil population is equivalent to 2.73% of the total world
population. Brazil ranks number 6 in the list of countries (and dependencies) by population.
The population density in Brazil is 25 per Km2 (66 people per mi2). The total land area is
8,358,140 Km2 (3,227,095 sq. miles). 85.5 % of the population is urban (181,649,428 people
in 2019). The median age in Brazil is 31.7 years
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Fig: Religions and Racial composition in Brazil
• Brazil's architecture in the colonial period was heavily influenced by the Portuguese
Manueline style. The Brazilian Carnival is an annual festival held before Easter for forty-
six days. Literature dates back to the writings of the first Portuguese explorers in Brazil in
the 16th century, such as Pêro Vaz de Caminha, filled with descriptions of fauna, flora.
• Poverty: The richest 10% of people in Brazil hold over 40% of the national income. On the
other hand, the poorest 10% hold about 1% of the income.
• Crime: Though all major cities and countries in the world experience some form of crime,
Brazil specifically susceptible to this major social issue. The most common crimes in this
country are mugging, kidnapping, robbing, and gang violence.
• Lack of Education: Most of the children do not attend school because of malnutrition.
This makes them unable to develop intellectually and to adjust to the social environment
of a school. Child labour among poorer children is also an enormous problem.
• Infant Mortality: Infant mortality rates are directly proportional to sanitation, education
and the financial income of the family.
➢ Technological:
Brazil's telecommunications system and digital TV are amongst the most advanced in the
world. Brazil expends between 1.16 and 1.21% of its GDP in Research and Development.
Brazil is a leading country in the world in petroleum exploration in deep water, which also
leads researches on the 1st and 2nd generation of biofuels. 80% of the vehicles sold in Brazil
are made on biofuel motors.
Brazil's automation system is very advanced in the world according to the World Bank
and IMF (International Monetary Fund). A huge number of startups have recently developed
in the country. Also, a lot of IT providers stand in the country as Stefanini, Sambatech, Apdate,
Stone Age, Inmetrics, Dclick, among other startups and national companies. In the IT sector,
it has been constantly improving and it currently ranks 55th in the world.
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➢ Legal:
The Brazil legal system is built on Civil Law tradition. The Federal Constitution, in force since
October 5th, 1988, is the supreme ruler of the country and is characterized by its rigid written
form. Following are some of the important legal institutions in Brazil:
• National Institute of Industrial Property (INPI): Responsible for patent and trademark
registration and technological development.
• Foreign Trade Department (DECEX) of the Bank of Brazil. Companies are treated as
separate legal personalities. The Judiciary is organized into federal as well as state
branches.
• Central Bank (BACEN): Responsible for the implementation of monetary policy,
exchange controls, registration and control of foreign capital.
• Administrative Council for Economic Defense (CADE): Responsible for investigating
and preventing unfair business practices, and for antitrust monitoring.
Creditors are generally unable to seize partner assets to pay off debts. Legislation varies across
the states thus increases complexity and compliance costs. It takes around 120 days to open a
business in the country.
➢ Environmental:
Brazil has nearly every type of climate, except for harsh wintry weather.
The Cerrado - a savannah that covers one-third of Brazil states—has lost 47 per cent of its
territory since the 1970s, and experienced even more deforestation last year than the Amazon.
In 2017, more environmental activists were killed in Brazil than in any other country in the
world. Besides, threats to forest areas often threaten marginalized groups, such as family
farmers and traditional populations. Promoting reforestation and curbing exploitation is part of
Brazil's plan to meet its nationally determined contribution as a sign of the Paris Climate
Agreement.
In recent years the environmental movement has grown in Brazil, environmental issues
rarely appear as a top concern for the electorate, which tends to prioritize social programs
(44%), anti-corruption efforts (32%), and stabilizing the economy (21 per cent). Although
Brazilians agree that there is little guarantee of environmental protection and believe that it
should be the government's responsibility, there seems to be little popular pressure on the
federal government to take action.
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• Area: 8.516 million km²
• Population density: 25 people/sqkm
• Average age: 33.5 years
• Largest city: Sao Paulo
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