USA and Brazil: global role dynamic areas

1. USA and Brazil: global role dynamic areas • Text: 2 Americas Brazil vs. USA • Video: Brazil’s Rising Star 60 minutes

2. 1. Strong insertion in the global economy • Brazil and the U.S. are two major agricultural and industrial powers • Except Vale and Petrobras, few Brazilian firms compete against American ones • US firms dominate on the world stage: • Agro-food business (Cargill, Kraft Foods), • IT (Microsoft, IMB, Apple), • petroleum (Exxon, Mobil), • pharmaceutical (Pfizer)

3. Both countries possess a vast domestic market which stimulates the service sector Unbeatable superiority of US firms in several industries: • insurance (AIG) • retail (Walmart) • entertainment (Time Warner, Walt Disney) Rapidly evolving economic sectors in Brazil • rising standard of living • emergence of a strong middle class

4. Brazilian Growth is much more sustained than the U.S.’ • Mostly due to flows of FDI • 1st trade partner with Brazil is China • 1st foreign investor = China • $30 B in 2010 vs 5 B in the U.S. • Despite this, Brazil ranks only 21st as global exporter of merchandise

5. 2. Political-military influence very unbalanced • American power based on an enormous military-industrial complex • Largest military budget in world ($600 B/yr) • U.S. Military force twice the size of Brazil’s • Global military deployment by the U.S. • Plays the role of the world police • Often denounced as imperialistic Brazilian political cartoonist: Latuff 2011 Title: Obama arrives in Rio Bubble: Where’s the petroleum?

6. Brazil’s Political Weight is largely inferior to the U.S. • Brazil’s diplomatic influence on the world stage remains very low • Despite Brazil’s recent extension of its embassies network • Despite sending the largest contingent of UN peacekeeping forces to Haiti

7. Brazil is self-proclaimed political spokesperson of the South • Former president Lula activated his South-South solidarity with emerging and Portuguese-speaking countries • WTO: Lula criticized protectionism of Northern countries • Brazil has evolved from net receiver of development aid to net giver • BUT Brazilian aid remains much inferior to that of the U.S.

8. Cultural Americanization (Soft Power) • US has initiated cultural models which are spread worldwide • Malls, fast-food, mainstream culture (cinema, TV series, social media) characterize the American model of mass consumption • Based on the “American dream”, the American way of Life attracts the largest immigrant population in the world

9. Brazil unable to rival U.S. cultural domination • Brazil great producers of TV series exported in more than 130 countries (primarily Eastern Europe and Middle East) • Brazilian culture has reduced impact due to lack of Portuguese speakers on world stage

10. Cultural hegemony of Brazil is more regional than global • Main media group in Latin America : Globo • Television, cinema, press • Brazil’s ambitions are planetary - organizing international sporting events • Football World Cup in 2014 • The Olympic Games in 2016 (Rio de Janeiro)

11. 5. U.S., Brazil: Territories which reflect their power • 2 immense territories but unequally controlled • Surface area of US 9.8 million km² • Surface area of Brazil 8.5 million km² • 15-17 times the size of metropolitan France • Major challenge: transportation networks • New York & Sao Paulo highest rail traffic in world • Brazil: air traffic more than doubled from 2004 to 2010 but planes used less often than U.S. despite long distances

12. Other Aspects in Common • Both Countries populated by Pioneers • Highly religious culture but little religious conflict • Rich natural resources exploited • Energy • Brazil highly dependent on hydroelectric power – 80% • Brazil developing wind energy + biofuels • Thanks to recent oil reserves discovered offshore, Brazil is self-sufficient in petroleum unlike the U.S.

13. Risk Management less effective in Brazil than the U.S. • Brazilians vulnerable to tropic storms • Flooding killed a thousand people near Rio in 2011 • Southeast of the US is particularly exposed to cyclones, tornadoes and flooding by the Mississippi

14. Homework • For all those who have not done their “croquis” of the U.S., it was due on April 2nd. • All late “croquis” will have 2 points taken off. • No “croquis” will be accepted after April 9th. • Review all your notes/reading for April 9th in preparation for a N/S America Quiz Game • Your BAC Blanc may have a question on North/South America!