ECONOMICS

Comparative Economics & Development



Comparative Economics & Development

Introduction

We will analyze the economic situation and policies in France and Brazil. We will be analyzing the differences in the economic policies of the country. We will also study the role and functions of the World Bank and European Union. We will analyze the significant features of policy and briefly relate them to the current economic situation. We will also study a key economic activity in France & Brazil and importance of the activity in the economy of these countries.

Discussion

Contrasting Economic Policies of France vs. Brazil

France

France as being one of the largest economies in the European region has been focused on maintaining the innovative edge by investing in the development and growth of technology. France realizing its deficiencies in education has restructured the educational system in the country and is striving to make the 90% of the higher education system autonomous. The tax receipts and cuts in budgets deficits have enabled the country to keep its budget deficit well under the targets. The economic and financial reforms have enabled this country to develop a stable position in the world.

Brazil

Brazil is the sixth largest economy in the world and is destined to become 5th largest in the years to come. In comparison to France, Brazil has been focused on the fiscal sustainability since this policy development in 1990. The education sector has been developed over the years and not the country has almost universal educational level. The economic development and achievement in the technological sector has lead to the creation of a state of the art Aerospace company. The country has reduced its dependence on imported fossil fuel and has been a pioneer in the development and usage of ethanol in 75% of the fuel requirements of the country.

Current Economical Position in France & Brazil

France

The French government intends to the decrease its budget deficit to 4.5% of GDP in 2012. The government set a target of keeping the budget deficit under 5.7% and was successful in limiting to 5.2%. The success was contributed to the economic policies of the government. The government restricted it expenditures and the tax receipts remained strong. The exports of the country has witnessed decline to 4.6% in 2010 and has continued the declining trend of past years.

Unemployment: French economy enjoys a leadership role among the European economies, having a $1.5 trillion GDP (Base year 2000, Constant Prices).The economy expanded to 1.5% after witnessing a contraction of 2.6% in 2009. The government is facing challenges of providing social security to the aging population and the increasing unemployment has caused the inequality income to rise. The government has raised the minimum labour wage to counter inflation but the contribution to the GDP has not matched with the same ratio. The government's recent measures in light of economic crisis have faced resistance from the unions and companies and protests have been lodged in the response.

Innovation and Education: The government has taken numerous decisions to ensure its ...