By Clara Danzl

Brazil’s Transformative Trajectories: Growth and Development in the 21st century

”Brazil is the country of the future and always will be.”

- Charles de Gaulle

It is no surprise Brazil is the 7th largest economy since it is the fifth largest country in the world with 8.51 million km² and home to 212.6 million people. Even though it is a large economy, there are still many prejudices when it comes to speaking about this country. Brazil is much more than just football, good music, traditional dances, and excellent food. In this essay I will touch on Brazil’s progress in energy, ecology, economics, education and gender equality in the 21st century. The aim of this essay is to provide transparent data on Brazil’s economic growth and its progress in sectors such as energy, ecology, education and gender equality. I have chosen these as I strongly believe they intertwine in various ways, as the energy sector has a strong impact on the country’s ecology and on its economy. Furthermore, none of these accomplishments could have taken place if education had not being severely worked on. Finally, gender equality is a more modern approach to Brazil’s development and commitment to equality in general.

Brazil’s energy sector is one of the least carbon-intensives in the world whilst the demand has doubled since 1990 due to the growth in electricity consumption and the demand for transport fuels on the back of robust economic growth and burgeoning middle class. 80% of Brazil’s domestic electricity is accounted by large hydropower plants. Brazilians’ electricity mix is classified as the cleanest of the world. Brazil’s biofuels accounted for 33% of its energy mix, whilst coal only accounted for 4.4%. In 2022 Brazil’s renewable share of power generation was at 87.5%. Furthermore, Brazil is the global leader in 2nd generation biofuels and flex-fuel cars. Brazil’s ethanol supplies are intended to average 660kb/d in 2026, compared to the 570kb/d in 2020 and 535kb/d in 2019. Brazil’s share of global emissions was 1.2% of CO2 emissions from combustible fuels, with the highest emission sector being transport. Electricity production grew by 103% from 2000-2022. Electricity produced by hydro plants accounted for 60% of all electricity production, wind plants created 13.5% of Brazil’s energy, whilst nuclear, oil and coal only accounted for 5.5%. Brazil is the sixth-largest consumer in the electricity market and has the 7th largest electricity generation capacity in the world. Whilst the global average of renewable energy is around 25%, Brazil’s is 83%. Hydropower generation is the largest energy source in Brazil with a potential of 172GW. Solar power is the 2nd largest energy generator in Brazil. Brazil’s wind power was at 29GW in 2023, however, it is expected to reach 44GW by 2028, which would account for 13.2% of Brazil’s electricity matrix. Brazil’s electricity matrix grew by 0.7GW from 2016 to 2023. Brazil has shown in the 1st trimester of 2023 the biggest production of clean energy in the last 12 years, with an increase of 90% of renewable energy. This shows that Brazil has had a speedy and steady rise in producing renewable energy, bringing the country to the first position of clean energy in the world. To sum up, Brazil is a global leader in clean energy, even though the country’s demand has grown since 1990, due to the economic growth and soaring middle class.

As Brazil is one of the world’s biggest biofuels producers, on the one hand its agricultural expansion has driven swift economic development but on the other hand it led to major impacts on biodiversity and the conservation of the ecosystem in Brazil. Brazil’s aim is to adopt a more sustainable model of development in the country. The Plano de Transformação Ecológica was announced during the COP28. Two of the policies formed by the Ministry of Finance are essential for this strategy to be effective. The regulation of the carbon market, which will price greenhouse emissions and establish rules for import and export in order to combat climate change, and the sustainable taxonomy, which is still undergoing work, is supposed to classify economic activities and financial assets according to Brazil’s contribution to the environment through criteria from the International Capital Market Association (ICMA). Even before putting these policies into effect, other initiatives, such as the Plano Safra, of the Ministry of Agriculture and Livestock, have undergone severe reformulations which currently offer better financing conditions for sustainable production. According to the Sub-secretary for Sustainable Development of the Economic Policy Secretariat of the Ministry of Finance, Cristina Fróes Reis, the goals are on the right path to be achieved, and will contribute both the 2030 SDG’s and Brazil’s 2026 goals. Additionally, from numbers presented by civil society were contributions from the Brazilian Business Council for Sustainable Development, there is a clear additional industrial revenue potential of US$284 billion per year, until 2050, through the bio-economy, and an increase of R$2.8 trillion to Brazil’s GDP, for the provision of services generated by biodiversity.

Brazil’s economy started to escalate in the 1990s with the Brazilian Trade Liberalisation and the reconstruction of macroeconomic policies, the so-called macroeconomic tripod, which entails the monetary stabilisation plan, a floating exchange rate and fiscal targets. This tripod is considered to have originated from John Maynard Keynes. The Keynesian Theory implies that the aggregate demand is the most crucial drive in an economy, he also believed that business cycles could be managed by active government intervention with fiscal policy and in a monetary policy, where a central bank stimulates lending with lower rates or restricts it with high rates. From 2000 until 2005 extractive industries presented the biggest growth, this caused ore prices to escalate. From 2005-2010 the construction sector was the one that grew the most due to the public-housing construction initiative Minha Casa, Minha Vida, which is a federal state programme. This programme occurred during a period of inclusive neoliberalism, where there was economic prosperity and remarkable capital inflows that boosted aggregate demand and employment. Under Lula’s presidency the macroeconomic tripod was called the new economic matrix, which lowered interest rates and made exchange rates more competitive. Following Lula’s presidency Dilma Rousseff then introduced the new economic matrix as the Brasil Maior Plan, which was created to reduce taxes on industrialised products on investment goods, during her term as president. The Brazilian Workers’ Party (PT) faced significant limitations due to Brazil’s deep entanglement of neo-liberal policies, which restricted the party’s ability to implement alternative economic policies effectively leading PT to be compliant with external economic pressures. Whilst PT was trying to adapt from a neo-liberal approach, in order to maintain social equity, economic stability and democratic governance, both Jair Bolsonaro and Michel Temer strove on Neoliberalism during their time serving, which damaged the lower-income earners, while benefiting the wealthy. However, the Brazilian economy grew by 2.5% in 12 months from June 2023, making Brazil being currently placed 6th in the economies that grew the most from the G20 countries. Brazil’s GDP grew from the 1st trimester of 2024 by 1.4% in the 2nd trimester of 2024 bringing it to a total of 3.3%. This number exceeded the expectation of the last Situational Overview (Nota de Conjuntura 27 from Carta de Conjuntura 63). The causes as to why Brazil’s GDP rocketed is mainly due to the import and export of its goods and services. In summary, the macroeconomic tripod was the drive to Brazil’s economic ascent. This reform boosted firstly the extractive industry and then the housing industry with Minha Casa, Minha Vida, one of the many social inclusion programmes that the Workers’ Party implemented. This trajectory illustrates Brazil’s increasing its significance in the global market.

Education in Brazil started in the colonial period focused initially on the sons of the colonisers and later evolved to all. In the 20th century there were many reforms such as the Reforma Francisco Campos and the Manifesto dos Pioneiros da Educação Nova, which expanded access and reorganised the educational system. Since 1996 the National Plan of Education (PNE) and 2017 the Base Nacional Comum Curricular (BNCC) want to eradicate illiteracy and give universal access to compulsory education. The PNE objectives entail the eradication of illiteracy and the obligation of education for all 4–17-year-olds. Some BNCC objectives are to establish common competences and abilities for all. Even though there was a shortage of investments in 2016, Brazil showcased a decline in illiteracy from 2020 to 2023. This shortage can be traced back to when Michel Temer, from the MDB Party, was in office and massively cut down the budget in education, since then under Bolsonaro (from the PL Party) and Temer the education sector lost more than R$74 billion. In conclusion, Brazil’s education evolved from an exclusive focus on colonisers’ sons to an inclusive structure. Despite many challenges related to shortage of investments, Brazil made remarkable progress in reducing illiteracy, with illiteracy rates dropping from 9.6% to 7.0% in 12 years, with help from the Programa Brasil Alfabetizado, demonstrating its commitment to education.

Gender Equality in Brazil has had a long but steady history of accomplishments. In 1827 girls were allowed to go to school. 52 years later women were first allowed to pursue higher education. 1932 women were allowed to vote. In 1962 women could work without their husband’s permission. 12 years later women could own their own credit cards. 1977 the divorce law was approved, which stated women could decide to divorce their husbands. In 1985 the first police station solely for females was created in São Paulo. Three years later women were seen equal to men. 2006 the law Lei Maria da Penha, that protects women from abuse was established and implemented. In 2015 femicide law is approved and three years later sexual harassment started to be considered a crime. Even though under Bolsonaro traditional gender roles were sought after and there was a resistance to engage with international agreements related to gender equality, such as the CEDAW, Brazil has proved to be enhancing women’s ability to participate in the country’s economy. In a nutshell this signifies that Brazil is on the right path to enhancing women’s rights and promoting gender equity and is fully committed to protect women from abusers and sexual harassers.

In conclusion, Brazil’s trajectory as the seventh-largest economy in the world is marked by note-worthy developments across different sectors, demonstrating its complexity beyond many common stereotypes. Its progress in energy, showed by renewable resources, puts the country in first place globally. The economy spurred growth in major industries, such as construction. The educational evolution from an exclusive system to an universal one accentuates the country’s commitment to augmenting literacy levels and opportunities. Gender equality has also been a big topic, having many critical reforms that enhanced rights for women and mitigated abuse towards women. Overall, Brazil’s multifaceted achievements instantiate its potential and strength of character in the global arena.