How developed is Brazil?BRAZIL EconomicA case study of:- Developments in two contrasting regions of a country (South-East/Amazon/North).- Strategies used by a government to improve the economy (in a developing country).- Exploitation of new resources within a country.- Impact of economic/industrial development on the environment of a region or country. Context - How developed it is Brazil?Brazil, together with Mexico, is considered one of the newly industrialized countries of South America.GRAPHICMain exportsMetallic minerals, coffee, fruit, chemical products, machinery, weapons. In 1991, Brazil had a debt of 123 billion dollars, owed to the USA, the EEC, Japan and the World Bank. Brazil is claimed to be "the tenth largest economy in the world". However, in some urban areas 50% of people live below the "poverty line". Recent changes (1970 - 1998): - More people employed in manufacturing. - Fewer people employed in agriculture but between 1982 and 1990 agricultural production increased by 38%. - Over 50% of the population employed in services. - Increase in land used for agriculture - large plantations and livestock. - Rapid growth of jobs in the "informal sector" - work without official documents (particularly in cities) as street vendors, repairers, decorators, etc. .- Rapid growth of cities: over 75% of the population lives in cities. Of these, 30 - 50% live below the "poverty line". In the 1970s five major pressures created debt:1. Oil prices rose (doubled and then quadrupled in 1979), so Brazil's import bill increased in an attempt to fuel the growing industry. Oil-rich countries had money to lend: Brazil borrowed from the southern region where all the raw materials are found; iron, coal, limestone are found. Close to market: automotive industry in São Paulo (Volkswagen, Fiat, General Motors and Ford are all located there, 4 of the 2,000 foreign companies in São Paulo). The aviation/defense industry also uses large quantities of steel.9. New weapons industry in the São Paulo/Rio de Janeiro area (southeast region) - strong growth 1975 - 1995. Located near major steel mills. Defense commitments are important for Brazil (military rule in the 60s - 70s) - drug trafficking and guerrilla warfare along its borders. Located on new highway routes, close to decision-making and industrial centers. 80% of Brazilian weapons are produced here, as is nuclear research near Sao Paulo. Brazil now exports weapons. The RAF builds a Tuscano trainer aircraft in Belfast, made with parts produced in Brazil.