Autumn 2013 Issue
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It never ceases to surprise me that respected economists and analysts keep considering Brazil as the next big thing. Sure, it is a big country; but also a rather sluggish one. Its recent spurt of growth has been a welcome change from decades of economic mismanagement. However, most policies that have hampered Brazil’s development remain in place. It still is not an easy place to conduct business. The country’s addiction to red tape is fatal. Its protectionist trade policies shield Brazilian businesses from competition. Most domestic manufacturers simply cannot compete in overseas markets. That the country hasn’t so far gone down the proverbial drain may be ascribed to its mineral wealth. At heart Brazil’s economy is not a powerhouse at all but just a clearing house for the proceeds of extractive business activities. Perhaps its leaders should gather up the courage to expose Brazilian society to the full benefits of globalization. DIRCEU DA ROCHA Cuiaba (Brazil) Your continued attention to the need for good governance is both timely and appreciated. The world would indeed be a much better place if only those in power come to their senses. Far too many of the world’s countries are still governed by people seeking to implement crackpot ideas or disproven ideologies. Economic theory and practice is a numbers game. It may at times appear complicated but the underlying numbers and facts are not. Politicians insisting on disproving basic mathematical theory cause untold harm. The current tendency in Europe, South America, Africa and elsewhere to improve the quality of political leadership is perhaps the single most important contributor to global progress. Please, do keep it up. FRANK MARCOUX Durban (South Africa) Can you please refrain from bashing those poor, hard-working Germans? These people have foregone higher incomes for many years to keep their industry humming. Others could perhaps not muster the required patience and restraint. Now the piper wants his due. Why Germans should pay for the indulgencies of others is simply beyond me. Also, I’d really like you to show a bit more understanding for Germany’s economic history. Few countries have suffered as much from the ravages of inflation as Germany has. Even though today’s leaders were not yet born when the Weimar Republic went into a tailspin, they have not forgotten the sufferings their parents’ generation went through. Honest bookkeeping is essential for sustained economic success. We do not cook the books. Please respect that. GUNTHER ADLER Wiesbaden (Germany)
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