B 2 B (Business to Brazil)
Brazil is definitely a permanent blinking light in most organizations radar screen. As we move through the major cities in the United States, hosting a Doing in Brazil seminar, we find many executives are eager to understand what is Brazil’s value and key differentiators.
It seems that Brazil’s challenge is no longer to be recognized as an important emerging market, and yes, how it can maintain the momentum and solidify its place in the hall of the power house economies.
What most people don’t realize is that Brazil, for a long time, has been working on building the foundations of what makes a strong economy. That starts with creating the proper political and economic framework to consolidate the institutions that will safeguard that there is a constant healthy business environment.
Brazil began its journey much earlier, however, when most leading economies of that time still perceived the country as third class player with little hopes of becoming a true world player. There were two turning point moments that really created the foundations for the turnaround we are witnessing today.
The first one was of political nature and started in 1985, with the end of the military dictatorship and the army stepping down form government, and 1990 when the first direct presidential election was held after 25 years. This was the first event to set the foundation to help solidify democracy in the country. The second event came only two years later, when the same president that was voted in, was also impeached.
It is unheard of that a new infant democracy, with only two years of age, had the maturity to turn around and impeach its first directly elected president for misconduct while running the Executive branch. This was the first turning point and a true demonstration of country serious about controlling its destiny.
The second turning point came in 1994, when the second directly elected president, and at the time the Finance Minister to the heir of the impeached first president, Fernando Henrique Cardoso, launched a radical economic plan aimed at eradicating the high inflation that was reaching the sky high figures of 1200 % a year. There were some rough roads ahead but the plan resisted and the new currency, the Real, is one of the strongest currencies in the market today.
These two events alone, turned out to be the real foundations that allowed Brazil move forward and progressively build a strong democracy and a thriving economy. What we see today, Business going to Brazil, would not have been possible if these two things did not happen.
For further views and peaks on what Brazil is all about, we recommend you see the tape on the last 60 Minutes program done on Brazil by clicking on this link: http://youtu.be/DMM7OJ_Kj9I