Currency:
Real (BRL)

Capital:
Brazilia

Major Cities (by population size):
Sao Paulo, Rio de Janeiro, Salvador, Fortaleza, Belo Horizonte, Brasilia, Curitiba, Manaus, Recife, Porto Alegre

Geography:
Brazil is the largest country in South America and the fifth largest in the world.  It is located to the north east of South America and is the most easterly country in the Americas as a whole.  It shares borders with all the countries in South America apart from Ecuador and Chile: Venezuela, Suriname, Guyana and the French department of Guiana are to the north; Colombia is to the north-west; Bolivia and Peru are to the west; Argentina and Paraguay are to the southwest; Uruguay is to the south.  The Brazilian coastline stretches 7,367 km along the Atlantic Ocean to the east and there are numerous archipelagos offshore included within the Brazilian territory.

The equator traverses northern Brazil and most of the country therefore lies within the Tropic of Capricorn.  Brazil has five distinct climatic regions – equatorial, tropical, semiarid, highland tropical and subtropical – each with their distinct weather conditions.  For example, the Amazon Basin in the north of the country is consistently hot and humid with heavy rainfall at times while Brazil’s southern states have a temperate climate with distinct seasons and a winter period.  Brazil is mostly flat with some hills and mountains.  It famously houses the greatest biodiversity of any country on earth.  Droughts are common in the northeast and there are occasional floods in the south.

Politics:
Brazil is a federal democratic republic with an elected President who acts both as Head of State and Head of Government.  The current incumbent is Luiz Inacio Lula da Silva, a left-of-centre politician elected to the post for the first time in 2002, then re-elected in 2006.  The federation is sub-divided into States, Municipalities and the Federal District.  The Brazilian constitution (introduced in 1988) establishes the classic three-way division of power between executive, legislative and judicial branches of government with formal checks and balances in place.  Brazil employs a system of proportional representation and the 4 main political parties (amongst several smaller ones) are PT, PSDB, PMDB and PFL.  Voting is compulsory for those aged over 18 (with the exception of those who are illiterate).

According to the Heritage Foundation, “Brazil suffers from a highly inefficient and corrupt bureaucracy” and “significant restrictions on foreign capital exist in a wide variety of sectors”.  But on the up side, Brazil is recognised internationally from its political stability and has distanced itself from the populist discourse of other South American countries such as Venezuela.

Economy:

• Inflation rate (consumer prices): 3% (2006 est.)
• GDP (official exchange rate): $967 billion (2006 est.)
• GDP (purchasing power parity): $1.655 trillion (2006 est.)
• GDP (real) growth rate: 3.7% (2006 est.)
• Foreign Direct Investment (net inflow): $8.7 billion

Brazil has the largest economy in South America and the 10^th largest economy in the world[1] (ahead of such countries as India, Mexico, Russia and Australia).  It has been tipped by investment bank Goldman Sachs to be 1 of the 4 largest economies in the world by 2050 (along with Russia, India and China, known collectively as the “BRIC” nations).  Brazil has a diversified economy with large agricultural, mining, manufacturing and service sectors.  Most heavy industry is concentrated in the south of the country and the mainly agricultural northeast is currently the poorest part of Brazil (although the north east is now attracting significant investment for tourism and agricultural projects).

Since 2004, Brazil has enjoyed sustained economic growth based around floating exchange rates, tight fiscal policy and anti-inflationary policies.  Exports have surged and from 2003 – 2006 Brazil registered record trade surpluses.  Major exports include coffee, automobiles, soya beans, iron ore, steel, textiles, electrical equipment and ethanol.  Foreign direct investment related to long-term and non-speculative investments in Brazil has been estimated at US$ 193.8 bn in 2007.  Brazil is a core country of both G20 industrial nations and G20 developing nations as well as being a core economy of Mercosur, the regional trade agreement between Brazil, Argentina, Uruguay, Venezuela and Paraguay.

Brazil’s economy is well managed by its government overall and the country has very strong prospects due to its abundance of labour, land and resources, as reflected by its BRIC status (see above).  Tourism is tipped to boom on the country’s beautiful north-eastern coast and many observers believe that Brazil is uniquely poised to cash in on the coming boom in eco-fuels.  It is widely believed that Brazil will achieve “Investment-Grade” ratings within a couple of years.

However, significant economic problems remain, in particular Brazil’s inefficient and unwieldy public bureaucracy and related high levels of public debt as well as the ongoing challenge of reducing high levels of unemployment.

Legal System:
Brazil has a legal system based on Roman codes.  The country has not yet accepted compulsory International Court of Justice jurisdiction.  The judiciary is independent but the Heritage Foundation comments that, “The judicial system is inefficient and subject to corruption, as are other areas of the public sector.”  However, the Heritage Foundation goes on to say that, “Contracts are generally considered secure, but it is important to specify the jurisdiction for any disputes.”

People:
With over 190 million inhabitants, Brazil is the most populous country in South America and the 5^th most populous country in the world.  This populace tends to be concentrated along Brazil’s coast and in large urban centres in particular.  Inland, population density is extremely low with large spaces without human inhabitants.  Brazil is a multi-ethnic country composed of Amerindian, European, African and Asian elements.  Many Brazilians have a mixed ethnic background rather than there being distinct ethnic communities.  However, the CIA World Factbook states that over 53.7% of Brazil’s population is classed as white, 38.5% are classed as mulatto (mixture of white and black) and 6.2% are black.  Nominally, 73.6% of Brazilians are Roman Catholic and Brazil has the largest Roman Catholic population in the world.  15.4% of Brazilians are Protestant with this community experiencing significant growth in recent years.  Brazil’s official language is Portuguese and it is the only Portuguese-speaking country in all the Americas.  Brazil is generally free from inter-community social tensions and is recognised as one of the most tolerant and open countries to cultural differences.

Demographics:
Brazil has a population of 190,010,647 (July 2007 est.) with a steady growth rate of 1.008% (2007 est.) based on a significantly higher birth rate (16.3 births/1,000 population (2007 est.)) than death rate (6.19 deaths/1,000 population (2007 est.)).  Net immigration is virtually in equilibrium at -0.03 migrants/1,000 (2007 est.) and life expectancy at birth is relatively high (72.24 years).

Country Ratings:

• Economist Intelligence Unit Quality of Life Index: 6.470, rank: 39^th, GDP per person (PPP) $8,760
• Heritage Foundation Index of Economic Freedom: Rank 70, 60.9% free, Category: Moderately free