ANALYSIS OF THE ECONOMY OF BRAZIL – UNDERSTANDING THE PAST TO UNDERSTAND CURRENT DAYS

Abstract

This article describes the political, economic and social trajectory of colony Brazil up to the 21st century. There is no intention here to go into the details, just to highlight the historical and economic facts important for the reader to understand, within the context of the time, the actions taken by the political and social agents that led to the current socioeconomic situation. Presenting its economic cycles and the geopolitics adopted by the Portuguese during almost four centuries of domination, it will provide adequate resources for understanding the real conditions and the context of the time for the current portrait of Brazil. Understanding this dynamic and the role of its actors will lead the reader to understand why Brazil is still a developing nation with serious social problems. The public deficit, reaching 90% of GDP, will lead Brazil to deal with rising interest rates and inflation in the medium term. These issues, plus the anticipation of the 2022 elections, have led the country to consume its international reserves to maintain the exchange rate and to take restrictive measures to its development. There will be no way out, without an adjustment in public accounts, with cuts of up to 20% in current spending and a decrease in the size of the Brazilian state, and this requires approval by the National Congress. This same Congress represented by an eaten elite, whose objectives are individual and not republican. The Brazilian nation has not yet met the 21st century.