The Effect of Population Aging on Economic Growth

Name

Class

College

Introduction

Today, Brazil has one of the largest and most stable economies in the world due to its mining, agriculture, and manufacturing endeavors. Coffee, soybean, wheat, and sugarcane  are of Brazil’s major commercial crops. Over the last 10 years, Brazil’s commodities and exports have grown tremendously. Brazil also has a wealth of mineral, including iron ore, tin, petroleum, and other natural gas deposits. Brazil mainly trades with the United States, Argentina, China, and Germany. Brazil officially gained self-sufficiency in 2006 when they were able to produce more petroleum than was needed for its domestic uses. Consequently, they were less dependent on imports from other countries.

Commodities

Coffee

The production of coffee has been very important to the growth of Brazil’s economy. This process opened the doors of international exports for the country. The international sales of coffee enhanced the development of underdeveloped areas. Consequently, the implementation of railways to transport the goods, instead of animal traction grew. This also led to an influx of immigrants to work the farms. Brazil is one of the largest suppliers of coffee in the world. As a result, Brazil was able to control the prices of coffee in international trade.

Iron Ore

Iron ore is one of Brazil’s largest reserves. According to , about 68 percent of the world’s concentration of iron ore is found in Brazil. According to governmental data (IBGE), the mining industry in 2013 had more than doubled the participation in the Brazilian GDP, between 1991 and 2001 its participation was 1.1%, but between 2002 and 2012 it went to 2.9 percent. Brazil is also in the top ten of countries in the mining sector.

Sugarcane/Ethanol

Brazil has been one of the first countries to achieve energy security through its development of a sugarcane industry as a means of making ethanol. Accordingly, Brazil has been able to replace about 40 percent of its gasoline needs through sugarcane ethanol. Gasoline, consequently, has become an alternative fuel for the country. Brazil has been able to pioneer the use of ethanol as a motor fuel. In 2013 and 2014, Brazil was producing almost 8 billion gallons of this alternative fuel. Most of this fuel is sold in the domestic market where it is sold pure or mixed with a blend of gasoline. Any gas bought in Brazil contains up to 30 percent of ethanol. This concept has lead to the introduction of flex fuel vehicles in 2003. These vehicles are able to operate on pure ethanol or gasoline. As of now, more than 90 percent of new vehicles sold in Brazil are operated on flex fuel. This has been very beneficial to Brazil’s economy because consumers can choose at the pump. Most choose ethanol because of its cheaper prices and many environmental benefits. In 2016, Brazil exported about 1.3 million of gallons of ethanol.