Mark Weisbroth, director of the Center for Economic and Policy Research (Washington, D.C) writes in his article:
Brazil has a structural problem that is similar to one of our biggest problems in the United States: The financial sector is too big and too politically powerful. Since this sector does not have much interest in growth and development — it is much more obsessed with its own profits and minimizing inflation — its control over the Central Bank and macroeconomic policy keeps Brazil from achieving its potential. And the country’s potential is huge: from 1960-1980 Brazil’s economy grew by 123 percent per person. If Brazil had maintained this rate of growth, Brazilians would have European living standards today.
In the last four years, Brazil’s financial sector has grown by about 50 percent, three times faster than the industrial sector. Salaries for top managers are now higher than in the United States. This is not only a huge waste of resources, but much more destructive because of the sector’s political influence.
Full article here.