Over the past 30 years, Brazil, one of the BRICS countries, was at one time far ahead of China in terms of economic aggregate and per capita. Back in 1991, Brazil's GDP was 1 of China's57 times, and the per capita GDP is ten times that of China. The seemingly insurmountable divide between the two countries has become the two flagships of developing countries. However, in 2024, Brazil will find itself counterattacked by China, and the huge gap makes people sigh.
Brazil, the largest country in South America, has a vast territory, abundant natural resources and a relatively stable domestic environment. As early as the early 20th century, Brazil achieved rapid development with its superior conditions and became an economic leader in Latin America. However, with the premature decision to deindustrialize, Brazil paid a heavy price and fell into the middle-income trap. In contrast, China has chosen a more cautious and arduous path of development, and has succeeded in achieving economic take-off through gradual industrialization and the construction of a modern industrial system.
Over the past 30 years, China has adhered to the development of the real economy and is committed to industrialization and urbanization, which has provided a solid foundation for sustained economic growth. In contrast, Brazil relies on resource exports, over-relies on foreign investment, and fails to form its own core technology and complete industrial chain, resulting in insufficient economic growth momentum. The implementation of a large number of welfare policies also led to excessive fiscal spending, a surge in inflation, and a further exacerbation of the external debt problem, which eventually plunged Brazil into an economic crisis.
In terms of population size and geographical location, Brazil at that time was relatively superior. However, Brazil** has not been able to avoid the economic problems caused by premature deindustrialization. On the other hand, China has been working hard to promote the process of industrialization step by step after the reform and opening up, and eventually became the world's largest industrial power. The Chinese people have adhered to the style of modesty and prudence and hard struggle in economic construction, which has laid a solid foundation for China's rise.
China's development did not happen overnight, and after decades of hard work, China has occupied an important position on the world economic stage. Even against the backdrop of a global recession, China's economy has been able to maintain steady growth. By 2023, China's total GDP will reach 1789 trillion US dollars, GDP per capita came to 1250,000 US dollars, not only ranks first among the BRICS countries, but also far exceeds Brazil and other countries. The key to this resilience lies in choosing the right development path and strategy.
Brazil** has come to realize the mistake of premature deindustrialization and is working on restructuring its economy in an attempt to reverse the recession by developing its manufacturing sector. However, there are still long-term and difficult challenges to get out of the middle-income trap. Brazil needs to improve infrastructure, upgrade manufacturing, and stabilize people's livelihoods. This process requires the right development path and consistent policy implementation.
In just 30 years, the economic fortunes of China and Brazil have reversed dramatically, providing valuable lessons for other developing countries. China's successful experience shows that industry is the cornerstone of a country's economic prosperity, and manufacturing is the key to achieving a strong country. The perseverance and efforts of the Chinese people, as well as the enlightenment to other countries, have pointed out the way for the great rejuvenation of the Chinese nation. In the future, China will continue to encourage other developing countries to have the courage to explore economic development paths suited to their own national conditions.
February** Dynamic Incentive Program