'..Anybody with an alert mind must see that statism has failed; that the ideas of socialism and interventionism are sterile and that they produce mainly frustration, stagnation, and crises..'<blockquote>'..Brazil’s economic development has been on a roller coaster ride for centuries. Phases of extraordinary booms were followed by long periods of busts and stagnation.
In the second half of the twentieth century, the boom of the 1950s, with the promise that Brazil would achieve growth and development of “fifty years in five years” ended in economic disaster and the military dictatorship that lasted from 1964 to 1985, which in turn ended with Brazil’s catastrophic foreign debt crisis. It took a “lost decade” for the country to recuperate.
The 1990s saw a series of reforms that put the country back on the track. In 2003, when the newly elected president, Luiz Inácio “Lula” da Silva from the Workers Party took over the government, the economy was already on a growth path. Then came the commodity boom with a seemingly insatiable appetite for Brazilian natural and agricultural products. Yet, instead of using the good times that filled the coffers of the Brazilian treasury to carry out highly necessary reforms, the Labor government pursued a populist policy of generous social spending, particularly for the poor parts of the population.
Now, these achievements of reducing poverty and inequality have come under threat because of the lack of financial funds. This means that Brazil must face not only an economic and a political crisis, but also a social crisis. The confluence of such a triple crisis increases the risks that any one of them gets worse because each individual crisis affects negatively the other crises. The consequential chain from the economic to the political and from there to the social crisis then goes into reverse and the social crisis worsens the outlook to get out of the political and the economic crisis.
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The BRICS never managed to operate as a coherent group. Now, that not only Brazil is in crisis, but also Russia, and that China is in troubled waters, the outlook for the BRICS as a group of playing a major role in global affairs has diminished even more.
It is similar with MERCOSUL, the common market project in South America. Instead of achieving free exchange, trade conflicts are on the rise and not a single supranational institution has become effective. From my observations of Latin America and of Brazil in particular, I conclude that there are still vast mental and ideological barriers in place that work against sustained prosperity. The ideological dominance of statism, socialism, and interventionism is present in every layer of the Brazilian society — not only in politics or academia, but also in the business community itself.
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..Anybody with an alert mind must see that statism has failed; that the ideas of socialism and interventionism are sterile and that they produce mainly frustration, stagnation, and crises..
..The current crisis will be a further wake-up call for young people to recognize that it is their future which is at stake if Brazil should continue in its old ways. With ever more young people joining the libertarian movement, I am sure that sometime in the future a critical mass will be reached and things will change.'
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In Brazil, Free-Market Ideas Rise as the Economy Falls, October 5, 2015</blockquote>
Context Semco - '..Brazil’s rough economy (four currency devaluations, record unemployment, and hyperinflation)..'<blockquote>
Milton Friedman Accurately Explains the Immigration Problem in US and Europe, Government, Taxes, and Economic Freedoms in General, October 5, 2015
'..It is already clear that Russia has become drawn into a useless war..''..monetary policies for almost 30 years now have been disastrous..''..the phenomenon of wave after wave of economic ups and downs is ideological in character..'