Investor’s Business Daily writer Alvaro Vargas Llosa posted the comment above in his recent article about the country, saying that “unless Brazil cuts the Gordian knot, the BRIC group could become the RIC group.

Below you will find the article‘s other highlights …

“… President Rousseff has her work [of attempting to curb excessive government spending and reforming one of the few Latin American pension systems that is still government-controlled] cut out for her, since the global economic downturn has helped trigger a wave of protectionist hysteria in her country… 

The protectionists argue that cheap products originating in China and Mexico, coupled with the loose monetary policies of the United States and Europe … is making it impossible for Brazilian companies to compete successfully.

… the protectionists want Brazil to revise the 2002 bilateral trade agreement with Mexico…

They also want to raise the South American Common Market’s external tariffs and want the Brazilian central bank to keep cutting rates…

Brazil’s problem, however, is not appreciating currency, too many cheap imports, or unfair practices by competitors. The real problem is that Brazil’s government has been overtaxing, overspending, over-regulating, and placing too many other obstacles in the way of businesses, entrepreneurs and investors.”

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