Promoting India Latin America Collaboration

Mexico City examined in ‘First Stop in the New World’

Mexico CityImage via Wikipedia

via SF Chronicle
in “First Stop in the New World,” author David Lida mostly eschews forecasting in favor of clear-eyed, agenda-free journalism, grounded in old-fashioned street reporting.

Nothing fundamental has changed since the North American Free Trade Agreement, or really for the past couple of decades, except that a Mexican, Carlos Slim Helú, has surpassed Bill Gates to become the world’s second-richest man after Warren Buffett. Mexico is unarguably richer today – its per capita gross domestic product the second highest (after Brazil) in Latin America – but, surprise, those funds haven’t been spread around. Some 50 percent of Mexico City’s population still lives in poverty, and only 12 percent of workers earn more than $23 a day. Though few are destitute, for the vast majority life is still uncomfortable and abusive, governed by long work days, iffy public services, petty rip-offs and kidnapping threats. The ambiance is one of cynicism, sexual repression and hopelessness.

Lida cites Octavio Paz‘s description of Mexicans as suffering from a chronic mistrustfulness, an inferiority complex and an outward servility that disguises cunning, resentment and a lust for revenge. When you work for someone else, according to the reigning belief, your prospects are nil: You’ll never get a raise, and are expected to keep shoulder to wheel until you die or are discarded (as Lida himself discovered when he took a publishing job and couldn’t get a raise during his 3 1/2 years there.) A job is such a raw deal that Lida sees the 35 percent of workers who participate in the informal economy as having made the smarter choice.

Popularity: 3% [?]

BRIC growth prospects

BRIC Countries (Brazil, Russia, India and China).Image via Wikipedia

via DB Research
there are also structural factors at work that bode well for the medium-term growth prospects of the BRICs. These factors can be captured in a simple growth accounting framework. Economic growth can be broken down into several components, namely changes in labour and capital inputs, and total factor productivity. (Total factor productivity captures technological progress and/ or efficiency gains and is the residual that is not explained by changes in labour and capital inputs.) Growth accounting provides an analytical framework to assess medium-term economic growth dynamics.

  1. Labour supply dynamics will remain favourable in Brazil and India thanks to demographic trends and/or low urbanisation ratios. In Brazil and India the working age population will continue to expand until the middle of the current century, while in China it will decline after 2015 and in Russia it is at risk of collapsing. From a purely demographic point of view, India faces the most promising prospects, combining solid population growth and a low degree of urbanisation. While this may pose challenges of its own (in terms of urban development and infrastructure), it will be supportive of growth dynamics.
  2. Recent capital accumulation trends favour China and India. Assuming that investment ratios do not change dramatically over the next few years, China and India will face much brighter prospects than Brazil or Russia. Currently domestic investment ratios amount to around 40% and 30% of GDP in China and India, respectively, versus an investment ratio of 20% of GDP (or less) in Brazil and Russia (see chart).

The projected changes in the factors underpinning an economy’s growth potential also suggest that the China and India economies will continue to grow much faster than Brazil and Russia over the medium term.

Popularity: 10% [?]

Brazil announces plan to become world’s granary

India eNews
Brazil’s President Luiz Inacio Lula da Silva has announced an initiative, involving an investment of 78 billion reais ($49 billion), to make Brazil the “granary of the world”, Spain’s EFE news agency reported Thursday.

‘What for others is a crisis, Brazil has to face as an opportunity to truly transform ourselves into the granary of the world,’ Lula told a gathering Wednesday in the southern city of Curitiba.

Lula said the crisis over food shortages not only opens up opportunities for Brazil but also for other South American and African countries.

He added that to help those countries increase their agricultural production, Brazil set up offices of its agricultural research service Embrapa in Ghana and Venezuela.

‘Embrapa, which made Brazil the main technological experts in the area of tropical agriculture, also can convert the country into a great exporter of agricultural technology,’ he said.

Popularity: 3% [?]

Betting on goodies from Brazil, Mexico

Daily News & Analysis
Three years ago, when the US National Intelligence Council studied the global trends setting the stage for 2020, the outcome reported under “Mapping the Global Future” largely missed Latin America. The potential of India and China was recognised, while Brazil found a brief mention.

Developments since then have, however, put Latin America prominently on the investment globe. So much so, while most fund houses in India are reluctant to launch any new equity scheme following the market meltdown, ING Investment Management erstwhile ING Vysya Mutual Fund has offered to diversify and invest in that part of the globe. Incidentally, it is the only region to offer positive returns this calendar.

Popularity: 3% [?]

Wanted – Skilled Workers for a Growing Economy in Brazil

Cirrus Airlines Embraer 170Image via Wikipedia

One possible solution is to have a roadshow in Indian cities, to attract Indian engineers to Brazil.

NYTimes.com
The average Brazilian worker has six years of schooling, compared with 10 years in South Korea, 11 in Japan and 12 in the United States and Europe, according to the National Confederation of Industry study.

Of the few Brazilians who go to a university, fewer than one in five take engineering, science, mathematic or computing, according to a recent World Bank study on the links between education and economic growth.

“In Brazil, most people that go to university do social science programs and this happens not because people desire to study philosophy, anthropology, geography, history,” said the study’s author Alberto Rodriguez, “but because private universities, where the growth has taken place, offer these courses because they are cheaper than offering engineering.”

Popularity: 3% [?]

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