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In 2001 head of worldwide economic research at Goldman Sachs, Jim O’Neill, created the acronym BRICs. It referred to Brazil; Russia Wholesale Jerseys Free Shipping , India, and China, nations which were new markets that he thought would point the way for financial development over the next FIFTY years. Since that time BRIC’s has developed a very common acronym among correspondents, teachers and economic experts when describing emerging market economies (EMEs). Many investors love the BRICS as the growth potential is high and great for fund managers looking for diversyfying their portfolios for investment vehices such as QROPS.


Brazil, the 1st letter of Brick is still not yet a totally developed country but there is not one thing that explains why, the general problems Brazil face are policy disasters, unreasonable inequality and external factors.


The Brazilian government’s biggest policy fail is overspending which contributes to high IRs and costly borrowing coupled with FX increases that raises the cost of goods produced domestically injuring exports. Brazil’s need for commodity exports, mainly oil and food, to drive growth is also a major policy fail as it creates inflationary pressure and currency appreciation. This appreciated currency has a follow-on effect on other areas of the economy mainly the producing sector pushing their prices too high and making them uncompetitive in the worldwide market. This in turn creates more dependency on commodity exports and makes the nation vulnerable to external market shocks.


Corruption is rife in Brazil with Transparency International ranking them as the 69th least corrupt country out of 178 measured in 2012. The base of the corruption is a complicated subject but in short it begins with a political system which permits more than 20 political parties. A.