Brazil and China Benefit from Successful Negotiations
Brazil is in desperate need of a boost to its economy, as the communities that earn a minimum wage are not able to improve their lifestyle or find work that would provide them with a greater income. The deals and negotiations between Brazil and China have been successful, but have gained some criticism from other countries that believe their focus should be on reform. A recent visit by President Dilma Rousseff of Brazil to China has sealed negotiations on deals that are worth more than $30 million.
In the midst of strikes, due to the increase of inflation on fuel prices, as well as food, it has become vital for Brazil to secure investments and contracts that will assist them in stabilizing the economy and enable the authorities to create job opportunities for Brazilians. BRIC Nations are committed to trading and doing business deals in local currencies; however, the deals done by Dilma Rousseff, in both the private sector and with the government, will be trading in dollars. America has been trading with Brazil in regard to items that young Brazilians seek that relate to United States culture. Brazil and China have been directing their efforts towards agriculture and defence. According to the BRIC nations listing, Brazil has one of the worst income distribution rates in the world, and Beijing hopes to change the lives of those living on the bread line through growth projects. The move to invest in the Belo Monte hydroelectric plant in Brazil is not gaining China any popularity, as the United States and various environmental groups have been opposed to this project, which will see the plant being the third biggest of its kind in the world on completion.
Dominique Strauss-Kahn, the Managing Director of the International Monetary Fund, has appealed to both China and Brazil to minimize their relationship and focus of reforms. He went on to say that their actions are increasing instability globally and creating a currency war, especially with currencies that are now emerging. However, with China offering to assist with the stabilizing of Brazil’s economy, the price of food will also stabilize. But the other deals, such as with the soybean industry, will still not aid the plight of minimum wage communities or create the job opportunities needed.