The brazilian economic growth in the 90s: a critical analysis

Abstract

This article argues that, since the beginnings of the 90s, the Brazilian economic authorities have established a new model of economic growth. This new project of development has sought to guarantee a new role to the Brazilian economy in the worldwide system. The trade and financial openness have played a crucial role in this project. However, the openness ended by increasing the current account deficits without creates sustainable ways to finance the external imbalances. The article also analyses the achievements that the external direct investments have obtained in reaching sustainable growth and concluded that the Plano Real did not succeeded in establishing a sustainable growth model.