Brazil is a third generation NIC and one of the BRICS (economies of Brazil, Russia, India China and more recently South Africa). It has been predicted by two Goldman Sachs analysts that the BRICs will overtake the G8 in GDP by 2040 and be level with them in 2025. It has a huge wealth of natural resources – the world largest fresh water supplies and as well as mineral and hydrocarbon wealth and huge potential in HEP development. There is a saying in Brazil “- Brazil is the country of the future, and always will be”. From 1995-2007 Brazil's growth was only 2.9%, compared with other 3rd generation NICs such as China and India which have done much better. From 2004 to 2008 those living in poverty (half of Brazil's 192 million population) fell by half however the poorest have not benefited and Brazil remains one of the world most polarised societies. In order to tackle the social inequalities that exist in Brazil’s society, and assist with development Brazil has created new technologies and created new markets.
It has invested heavily in developing HEP of which it has huge potential, and which fuels 40% of its industry. It also uses much more renewable energy that other BRIC economies due to a lack of its own resources. However this sets the country in a good position for future development as fossil fuels become in short supply.
The development of the Belo Monte dam however has not come without consequences. Plane for the Amazon region is was completed in 2010 it is the 3rd largest of its scheme in the world. It is able to generate 11000mv (2nd largest) of electricity powering 23000 homes (1st is the HEP scheme on the river Parana a joint venture of Brazil and Paraguay).However the scheme attracted international attention and caused conflict with environmentalists dues to it location in a fragile ecosystem. The dam is not as environmentally friend as first seems as it traps vast amounts of rotting plant matter in the reservoir behind, which releases methane gas (23 times the heat trapping capacity of c02). As well as this local communities suffer as the scheme destroys local habitat and disrupts river flow downstream. There is also the issue of providing renewable energy on such a large scale and whether or not it will really benefit Brazil’s society long term. However even taking into account the environmental impacts Brazil's HEP potential currently developed s only 1/3 of what it could be, leaving more room in the market for the future.
Another suggested way forward is agriculture. Brazil is the world’s number one exporter of orange juice, coffee, beef, ethanol, sugar cane and tobacco. It has stated it achieved this through efficiency grains and opening up land for farming (leading t destruction of vast amounts of rain forest). Agribusiness focused in the Baha region of eastern Brazil is a centre for agriculture development. Farmers use the latest technologies such as mechanised combine harvesters accurate to the nearest 3cm, and farms that are vast in size (100’s km across) this has resulted in grain productivity per hectare doubling since 1990. This scheme has also been beneficial to locals as farmers receive appropriate wages, training and education as well as conservation laws are being upheld by developers and investors. On the other hand this development has but enormous pressure on the Western Baha region due to intensive agriculture.
Brazil has also become self sufficient in oil due to discovering new oil fields off the coast near San Jose. However there are potentially devastating environmental impacts as there is a large layer of absorbent salt between the oil and sea bed, which could lead to a similar disaster seen in the BP oil disaster in 2010.
Note: The full article 'Brazil: Country of the future can be found in Geography Review magazine - Development update - Feb 2011
