Economic Reform In Brazil
Plano Real was a plan introduced in the year 1994 for the introduction of new currency in Brazil, the Real. With the introduction of Real, inflation rate in Brazil was controlled to a great extent. Prior to the introduction of Real, rate of inflation in Brazil used to be 50% every month.
Brazil more or less enjoyed stability in its economy registering a real growth in the gross domestic product by 4% during the period 1993 to 1997.
Milestones in economic reform in Brazil:
After taming inflation in the country, Brazil diverted its attention to the other spheres of the economy.
Privatization was being aimed at by the Brazilian government. The main objective of the National Privatization Program was to promote sale of assets owned by the government in Brazil.
This in turn would enhance the infrastructural make up of the country and act as a standby in the economic transition phase of Brazil. Privatization of as many as fifty companies had already taken place by 1997 end and it would not be an exaggeration to say that most of these companies are making good profit.
Amendments were made in the constitution, inefficiencies are being addressed to in the country. Almost all sectors of the economy improved. Economic reform in Brazil encouraged import activities. It also attracted foreign investment.
Other sectors of the economy (service, industrial, manufacturing, agriculture to name a few) all surged ahead bringing about a balanced growth in the country. Attaining a sustained as well as favorable growth in the Gross Domestic Product or the GDP has also remained as one of the agenda in the economic reform in Brazil.