Chahrazed Rahmani Professor Kim 52:620:369:92January 27, 2018Chapter 2 Case Discussion (100-300 words for each question) Corruption in Brazil case:1. How have a few highly publicized corruptionscandals contributed to a stagnant economy in Brazil? The economy is the study of scarce resources andtheir role in achieving the needs. The economy is also known as the search forhow or how to utilize and exploit the resources according to the pattern thatsuits the societies and their needs. The economy is keen to find the bestalternatives to address the few resources, and predicted events affecting thefuture of the economy.
Especially when talking a country’s stagnant economywhich means when a country’s economy deciles or experiences a lack ordevelopment. Brazil is one the countries that experiencing this type ofeconomy. Brazil has been down for couple of years and this the biggest economicdownturn in its history.
And it’s recorded as the worst recession inBrazil’s history Mar 8, 2017 – Recent economic data reveal thatBrazil has been in recession for two years, the biggest economic downturn inits history. … in Brazilian society, including accusations of President DilmaRousseff of illegal manipulation of government accounts, which led to itsisolation in addition to corruption scandals involving some of the largest andmost famous companies in the country Brazil’s economicrecession has completed its second year in a row, marking the country’s biggesteconomic downturn, according to recent data.
The economy contractedby 3.6 percent in 2016, which means economic activity is down 8 percent fromDecember 2014. Brazil was badly hit byfalling commodity prices and an internal political crisis that underminedinvestor confidence. But analysts predictedthe economy would soon recover.
The economic downturnhas increased unemployment by 76 percent to 12.9 million people, or 12.6percent of the population. Brazil was once one ofthe fastest growing economies in the world, and many investors believe thatBrazil, one of the brix countries of the emerging economies of Russia, India,China and South Africa, has strong prospects for the best economic growth inthe world. Brazil’s major exports,which include oils, soybeans and minerals, have seen strong demand in theprevious period.
But the decline in theChinese economy, the largest in the Brix Group, led to a drop in demand forcommodities and falling prices. Another factor that hasaffected the economic downturn is corruption, which has rocked Brazil’s highestsociety, including accusations by President Dilma Rousseff of illegalmanipulation of government accounts that led to its isolation, as well ascorruption scandals involving some of the country’s largest and most famouscompanies. 2. Who or what is responsible for the currentstate of political and economic corruption in Brazil? In August last year, Rousseff, the country’s first female president,became the last Brazilian politician to see his career partially destroyed byrevealing illegal gains. The basis for her dismissal was that she had used thefederal budget to conceal the country’s rising deficit, The dismissal wasangrily driven by a person who presided over a presidency that saw thecountry’s worst recession in more than a century, and uncovered amulti-million-dollar corruption scandal that made Lake Pergolas look like a smallpond. About the enormous illegal gain that he has professed Includinggovernment officials, business leaders and the state-run oil company Petrobras,headed by Rosieff herself before becoming president in 2011.
Although Rousseffis not interested in taking advantage of the corruption scheme, prosecutors sayillegal proceeds were used to fund her electoral victories In 2010 and 2014,but Rousseff denies any irregularities. Many Labor activists, including theformer Treasurer, the media guru of Rousseff, and a former senator, have beensentenced to prison for money-laundering and other charges. President Timmertook office in the hope of starting a new page, but to no avail. Some of themare alleged to have been involved in corruption in Petrobras, and a few weeksafter Timmer took office, the Minister of Transparency Fabiano Silvera toresign after leaking a confidential record appeared that he advises thePresident of the Senate on how to avoid prosecution, and in a poll lastFebruary said that 65% of Brazilians surveyed believe that the Timmergovernment was more corrupt than the government of Rousseff, Only 10% on Hisgovernment’s performance, making Timmer’s political survival in jeopardy. As popular angermounts and the economic recession continues, Brazilian democracy is now at itsweakest since the return of civil rule three decades ago. It risks falling intothe long-term imbalance or “soft authoritarianism” sweeping the worldtoday; the struggle of Rousseff and Timmer Explain why it is time for Brazil totake a radically new approach to preventing corruption.
Brazil’s politicianswill not be able to ward off disaster and restore public confidence except byabandoning their own privileges and committing to genuine reform. Putin’s Russia case:1. Why did the Russian economy perform wellduring the 2001–13 period? Why did it run into trouble in 2014? What does thistell you about the efficacy of post-communist economic and politicalreforms? The performance of the Russian economy over the past two decadeshas been closely linked to Russian President Vladimir Putin. Economists’assessments differ from the years since Putin took office as prime minister in1999, but he largely agrees that his policy of strengthening public companiesand state agencies and maximizing the oil and gas economy has had a profoundimpact on the structure of the economy.
Moreover, Putin’s ambitions outside Russia and his militaryinterventions, sometimes described as costly adventures, have weakened theRussian economy, especially after Ukraine’s crisis, Russia’s annexation of theCrimea in 2014 and subsequent economic sanctions imposed by the West on Moscow. The collapse of oil prices in mid-2014 to double the crisis andcontribute to the contraction of Russia’s economy by about 4% in 2015. Criticssay that Putin uses his political power, and the popular support they doubt, ina way that delays the modernization and revival of the Russian economy.However, some believe that Russia’s monetary and fiscal policies helped ease itscrises and prolong its financial reserves.
2. How has Vladimir Putin been able to accumulateso much political power in Russia? Currently, mixed economies can be found in many countriessuch as England, France, the United States, Sweden, Brazil, Italy, South Koreaand India permanently or even temporarily As in the Duma, the result of the presidential election isalso expected to benefit Putin easily, to ensure his continued rule in Russia.But a year separates us now and the 2018 presidential election; can anythingweaken Mr Vladimir Putin’s popularity and thereby weaken his grip on power? TheRussian government has made a lot of propaganda and disinformation in order toensure Putin’s continued popularity and help to give positive publicity inRussia about his adventures abroad (from the Crimea to Donbass to Syria), butone aspect of Putin’s popularity and stability at home is the Russian economy .The country has come a long way since the dark period of the 1990s when, afterthe collapse of the Soviet Union, Russia was a failed state. In Russia, as inthe neighboring countries of the former Soviet Union, any kind of steady socialwelfare financed by the state may become relatively popular. If the Russianeconomy melts, the government will have to resort to austerity measures cut offfrom pensions and salaries, which is certainly a straw that can cut back thecamel. It is therefore not surprising that many experts believe that majoreconomic troubles are likely to destabilize Vladimir Putin’s regime.In any case, that way of thinking was the main motive behindthe Western economic sanctions against Russia.
The threat of economicinstability poses a threat to the destabilization of Putin’s regime. Economicsanctions may therefore be used as a soft power tool for external control ofPutin and his close associates. Take other violent steps abroad, especially inareas such as Ukraine and Syria.