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Comparison of the economic systems: Brazil and Chile (2006)

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Our work focuses on the study of Brazil and Chile. It should succinctly describe the place they occupy as two countries in the ?world economy' of the early 21st century, before embarking on their analysis of the capitalist development index that will precede the comparative parties.

Chile and Brazil are both countries of Latin America, which are relatively well integrated into the global economy (at least, are the major economic centers in both countries), primarily as exporters of raw materials (Brazil: cereals, textiles, wood etc., Chile: copper, fruit, wine, etc).

They have very strong trade relations with the NAFTA region and to a lesser extent with Europe. However, the two countries do not think the same way politically about their integration into the global economy. Indeed, the level of international politics of the two countries is not really on the same wavelength: Brazil, MERCOSUR. Member countries have an active part in the struggle against domination and influence on the global economy of more developed countries.

This is especially true since Lula took the Chair and it can be illustrated by the fact that Brazil is a member of the Cairns Group. Campaigns for the dissemination of certain controlled drugs by multinational companies in the north received many anti-globalization protests. Chile is divided between its desire to build a real Latin American cooperation and willingness to maintain good relations with the United States (it is one of the few countries not to have rejected the idea of a zone for free trade throughout the Americas supported by the United States).

The two countries have therefore quite different positions on the world stage both economically and politically. This observation only introduces what will appear later in the record; Brazil and Chile, which are so close, that we often classified as a catch-all for developing countries, are made of different situations. The differences are economic, social, political, cultural, etc.

Multiple factors are at the origin of these reasons. Rather than trying to seek the origin of their differences (and similarities as there are!) it will work by giving them the means to measure the competitiveness of the business models of these two countries. Social discrimination are real taboo that 40% of the Brazilian population is mixed, 6% is black, their average salary is less than half that of a white wages.

Significant inequalities of wealth: the richest 10% owns 50% of national income.
50% of farmers have 3% of the land. There are also social tensions particularly in the lack of fertile land with the Movement of Landless peasants in the Amazon. Land reform in the 1970s can be described as fictional as ineffective so many farmers ownership of the land which causes violent tensions with landowners.

Chile is a country made up to 60% of mixed race so a more homogeneous populations in Latin America. Only 2% are immigrants. Inequality: income distribution: 53.4% of revenues go to 10% of the richest in 2003 (ILO).

Caudillismo is a characteristic feature of the Latin American vision including Chilean political legacy of the past, the reliance on a strong power, which has a strong influence on the population.

Tags: Brazil; Chile; Latin America; economic systems; comparison between countries

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