Comparative analysis of economic growth and development of Brazil and Russian Federation. Period 2000-2010 - Реферат

Russian Federation experienced economical brake down in 1998 and also called for IMF help. But they managed to overcome problems and gained interest of global society. In both countries new leaders started their mandates. In Brazil everything started with election of Fernando Henrique Cardoso in 1994 and successful presidency of Luiz Inacio (Lula) da Silva in period 2002-2010. Vladimir Putin is Russian’s choice from 2000 till now. This leaders started internal institutional reforms. Brazil and Russia started to think about competitiveness, fiscal discipline and showed economic growth. Brazil and Russian Federation can not be more different countries, both lying on different continents, having their own interesting history, dealing with their own country specific problems, but there are some similarities which brought Brazil and Russian Federation under BRIC countries and their increased role in the world economy and politics. Some similarities and differences between Brazil and Russian Federation from the point of view of economic growth and development will be presented in this case study. 1. The level of development, indicators Table 1: Level of development indicators for Brazil and Russia in 2000 and 2010 BRAZIL RUSSIAN FEDERATION 2000 2010 Difference 2000 2010 Difference GDP per capita, PPP (constant 2005 international $) 7909,1058 10055,916 27,1% 8612,6583 14182,558 64,7% GDP per capita world rank 73 68 5 67 47 20 GDP, PPP (constant 2005 millions of international $) 1379548,8 1960360,6 42,1% 1260057,7 2010377,5 59,5% GDP world rank 9 9 0 10 6 4 GNI per capita (constant 2000 US$) 3593,32 4609,06 28,3 % 1729,1 2814,783 26,8% Population (million) 174,42 194,94 20,52 146,30 141,75 -4,55 Population world rank 5 5 0 6 9 -3 Inflation, GDP deflator (annual %) 6,175 7,339 1,16 37,69 11,37 -26,32 HDI index 0,665 0,715 0,05 0,691 0,751 0,06 Life expectancy at birth (years) 70,1 73,1 3 65 68,5 3,5 Income Gini index 59,78 54,69 -5,09 37,48 40,11 2,63 Global competitiveness index - 4,28 - - 4,24 - Index rank - 58 - - 63 - Public debt (% GDP) 58,5 60,8 2,3 34,1 5,9 -28,2 In 2000 both analysed countries according to World Bank ranking of GNI were lower middle income countries. In 2010 Russia stayed in the same group, Brazil moved forward into upper middle income group. In 2000 both countries had medium human development index, but in 2010 high HDI. Global competitiveness index orders both countries into efficiency driven economies in 2010. According to WEF competitiveness Report 2010-11 Brazil was above average developed in area of innovation, business sophistication, financial market development, technological readiness and market size, but underdeveloped in macroeconomic environment and goods market efficiency between efficiency driven economies. On the other hand the largest problems are tax regulations, tax rates and inadequate supply of infrastructure. Russia is above average in market size, infrastructure, higher education and training and labour market efficiency, but below average in institutions, goods market efficiency, financial market development. The largest problems in Russia are: corruption, access to financing, tax regulations, crime and theft. Brazil is fifth largest country by area and population in the world, Russia is first largest country by area and in 2000 she was sixth in 2010 already ninth country by population. Russia has lost 4,55 million of hers population in ten years period in the same time Brazil gained 20,52 million of additional population. Percentage of people living below countries poverty line is 40 % (1999) and 13,1 % (2009) in Russia and 22 % (1998) and 26 % (2008) in Brazil. 2. Dynamics of growth and development Graph 1: GDP per capita, PPP (constant 2005 international $) dynamics (1997-2010) Brazil’s GDP per capita was quite stable in observed time period. The difference between the highest value (2009) and the lowest (1999) is 2363 international $.