Full of charm and richly endowed with natural resources, Brazil has made one of the world’s largest oil discoveries off its Atlantic coast.
Chris Kraul, reporting for the L.A. Times from Brasilia, Brazil states this find could propel Brazil into the first rank of oil exporters by 2015. The nation also boasts enormous deposits of gold, uranium and iron ore and is the world’s largest exporter of chicken, soy, sugar, and beef. Writer Chris Kraul tells us Brazil is reving its space program as part of the push to secure its territory. Who wants it? Brazilian President Luiz Inacio Lula da Silva and his advisors believe that the resources will be coveted by foreign powers as global availability of commodities are reduced by population growth, global warming and over-exploitation. So far the military build-up is defensive rather than offensive.
Rich countries get richer when imported raw materials are manufactured into value-added products. The greatest share (75%) of global Foreign Direct Investment is from one rich country to another. U.S. firms have most investments in Europe, and they are not going to go invest in a country that is unstable. To attract private investment, Brazil must reveal stable political and social conditions. (Below, Brazil’s Iguaza Falls)