OECD praises Brazil reforms
By: unknown author
The BBC News, June 7, 2001
After a decade of financial
reforms, Brazil is experiencing sustained economic growth, a report by the
Organization of Economic Cooperation & Development (OECD) has said.
is the first report on Brazil by the Paris-based club of 30 free-market
oriented, democratic nations.
report, published late on Wednesday, praised reforms that have staunched
hyper-inflation, curtailed public spending and opened up Brazil's economy
to foreign trade.
it also warned that Brazil's government must not slacken the pace of
change if it wants the economy - Latin America's largest - to keep growing
and reduce its gaping income inequality.
finance minister in 1993, President Fernando Henrique Cardoso initiated or
developed most of the reforms. He then went on to win an unprecedented two
high burden of foreign debt and dependence on foreign savings means it is
very vulnerable to external shocks," the report said.
report recommends that Brazil:
The inequality between rich and
poor in Brazil is pronounced.
big cities such as Sao Paulo and Rio de Janeiro, millions of slum dwellers
live in the shadow of high-rise luxury apartments. And in the countryside,
land ownership is still concentrated in the hands of the very rich.
that income distribution is marked by high levels of inequality, the
report said better targeted welfare spending would empower the poor and
boost the economy
OECD made a special plea for urgent energy sector reform.
country has been suffering its worst-ever energy crisis, partly because a
lack of rain has hit operation of the mainly hydro-electric power network.
of Brazil is under strict rationing designed to cut the national
electricity bill by a fifth.
this demand will be a challenge to the government", the report
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