A great article on what we just did in class and also what Andres Duartes told us about. It relates to the pros of Norway, the cons of Venezuela and how Brazil could learn from both of these countries regarding dependence on oil.
This article points out the extreme differences that can come of gaining great access to oil. One of the things that Mr. Andres Duarte has said of Venezuela was that if the country had invested more in developing their oil sector, their country may be in a better spot than they are currently. I think that Brazil needs to really study the case of Venezuela as well as Norway to forecast how decisions will effect their economy and how to avoid certain problems.
I think it would be wise for Brazil to follow in the steps of Norway. It would be great for their country. They can experience years of economic growth and prosperity. Brazil can use that success to help their future generations live good lives. They can also raise their poverty line and raise their national income. Let's hope Brazil handles this the right way.
Brazil definitely has things that it can learn from both scenarios. Taking advantage of oil access is not a bad thing. It is great that they have been able to function without it, rather than simply rely on it. They must be careful not to abuse it, or depend on it.
This article points out the extreme differences that can come of gaining great access to oil.
ReplyDeleteOne of the things that Mr. Andres Duarte has said of Venezuela was that if the country had invested more in developing their oil sector, their country may be in a better spot than they are currently. I think that Brazil needs to really study the case of Venezuela as well as Norway to forecast how decisions will effect their economy and how to avoid certain problems.
I think it would be wise for Brazil to follow in the steps of Norway. It would be great for their country. They can experience years of economic growth and prosperity. Brazil can use that success to help their future generations live good lives. They can also raise their poverty line and raise their national income. Let's hope Brazil handles this the right way.
ReplyDeleteI feel like there are some vices that come with an oil boom. Like an exchange rate rise which would cripple the domestic industries.
ReplyDeleteBrazil definitely has things that it can learn from both scenarios. Taking advantage of oil access is not a bad thing. It is great that they have been able to function without it, rather than simply rely on it. They must be careful not to abuse it, or depend on it.
ReplyDelete