The country's GDP is the 7th largest in the world at $2.2 trillion, and has grown rapidly in the past decade. Russia faces major issues, however. The country has significant security concerns in the Caucasus Mountain region, an ethically and politically fractured area of strategic importance as a transit point for Caspian oil to the West. Russia is also stricken by high rates of poverty outside of its major cities and a sharply reduced industrial capacity. While the nation's development has revitalized Moscow and St. Petersburg, the benefits have not trickled through the rest of the country.
Brazil's economy is the tenth largest in the world at just under $2 trillion. Brazil's economy has also grown rapidly in recent years. Brazil's economic drivers remain resource exploitation, including mining and agriculture. The country is developing significant manufacturing capacity, however, in an attempt to diversify its economy. Brazil's main economic problems are related to its volatility. The country's currency and stock market are unstable and its debt burden is high, at 38.8% of GDP (compared to 6.5% of GDP for Russia).
Russia has a strong education system, which can be an asset for economic development. If will need to spend its oil and gas revenues wisely, but Russia can leverage the quality of its education and its access to both European and Asian markets to develop manufacturing and service sector industries. For Brazil, that nation needs to take a leading role in the economic development of South America. There is significant potential for Brazil to diversify away from resources, including banking, manufacturing, pharmaceuticals, services and tourism.
Although both Russia and Brazil are often cited together as rising economic powers...
Brazil's diversity both in its people and in its geography gives it tremendous potential to develop a diversified economy. Russia has less diversity, but its education system and standards of living are similar to those found in Europe. This should orient the Russians towards the development of information-oriented industries in order to diversify away from oil and gas.
Sources:
CIA World Fact Book: Russia. (2009). Central Intelligence Agency. Retrieved December 4, 2009 from https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html
CIA World Fact Book: Brazil. (2009). Central Intelligence Agency. Retrieved December 4, 2009 from https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
Indexmundi website, various pages. (2009). Retrieved December 4, 2009 from http://www.indexmundi.com/
Chart1
6.7
65.3
28
Brazil Economy by Sector
Sheet1
Brazil Russia
Agriculture 6.7-4.7
Services 65.3-57.7
Manufacturing 28-37.6
Sheet1
0
0
0
Brazil Economy by Sector
Sheet2
Sheet3
Chart2
4.7
57.7
37.6
Russia
Sheet1
Russia Russia
Agriculture 4.7-4.7
Services 57.7-57.7
Manufacturing 37.6-37.6
Brazil
6.7
65.3
28
Sheet1
0
0
0
Russia
Sheet2
Sheet3
