the same pattern as the night
sky over Brazil; the globe has a white equatorial band with the motto
ORDEM E PROGRESSO (Order and Progress)

@Brazil:Economy

Overview: The economy, with large agrarian, mining, and manufacturing
sectors, entered the 1990s with declining real growth, runaway
inflation, an unserviceable foreign debt of $122 billion, and a lack
of policy direction. In addition, the economy remained highly
regulated, inward-looking, and protected by substantial trade and
investment barriers. Ownership of major industrial and mining
facilities is divided among private interests - including several
multinationals - and the government. Most large agricultural holdings
are private, with the government channeling financing to this sector.
Conflicts between large landholders and landless peasants have
produced intermittent violence. The COLLOR government, which assumed
office in March 1990, launched an ambitious reform program that sought
to modernize and reinvigorate the economy by stabilizing prices,
deregulating the economy, and opening it to increased foreign
competition. Itamar FRANCO, who assumed the presidency following
President COLLOR's resignation in December 1992, was out of step with
COLLOR's reform agenda; initiatives to redress fiscal problems,
privatize state enterprises, and liberalize trade and investment
policies lost momentum. Galloping inflation - by June 1994 the monthly
rate had risen to nearly 50% - had undermined economic stability. In
response, the then finance minister, Fernando Henrique CARDOSO,
launched the third phase of his stabilization plan, known as Plano
Real, that called for a new currency, the real, which was introduced
on 1 July 1994. Inflation subsequently dropped to under 3% per month
through the end of 1994. The newly elected President CARDOSO has
called for the implementation of sweeping market-oriented reform,
including public sector and fiscal reform, privatization,
deregulation, and elimination of barriers to increased foreign
investment. Brazil's natural resources remain a major, long-term
economic strength.

National product: GDP - purchasing power parity - $886.3 billion (1994
est.)

National product real growth rate: 5.3% (1994 est.)

National product per capita: $5,580 (1994 est.)

Inflation rate (consumer prices): 1,094% (1994 est.)

Unemployment rate: 4.9% (1993)

Budget:
revenues: $113 billion
expenditures: $1