Brazil investing in Brazil

[JMBroad]

BBC NEWS | Americas | Brazil unveils anti-poverty drive

The Brazilian government has unveiled a multi-billion dollar anti-poverty plan to provide jobs and infrastructure in the poorest parts of the country.

Interesting read.

Of the amount invested, according to the Local newspaper, 340 million is to go to 46 towns in Rio Grande do Norte.

Governo federal vai investir R$ 340 milhões em 46 cidades do RN - 25/02/2008 - DN ONLINE Cotidiano

[MikeC]

Its great news. Critically they must also address who gets to see that $. In a arecent article in TIME magazine, they estimate that in small municipios, i think under 50,000 peropel from memory, that up to 90% of the assigned budget, leaks out into hands of corruption, ie the target actually sees 10 cents in the government dollar. Lest hope the desperate get to see as much of the tax payesr $ as possible.

[JMBroad]

Originally Posted by MikeC

Its great news. Critically they must also address who gets to see that $. In a arecent article in TIME magazine, they estimate that in small municipios, i think under 50,000 peropel from memory, that up to 90% of the assigned budget, leaks out into hands of corruption, ie the target actually sees 10 cents in the government dollar. Lest hope the desperate get to see as much of the tax payesr $ as possible.

Totally agree.

[JMBroad]

Minimum wage in Brazil goes up this Saturday, which will result in an additional 14 million Euros going into the economy of Rio Grande do Norte.

Sounds impressive when presented like that. For the individual it represents an increase from an average wage of 150 € to an average wage of 163 € - in reality the spending power of someone earning a minimum wage remains pretty much the same.

Novo mínimo injetará R$ 35 milhões na economia do RN - 27/02/2008 - DN ONLINE Cotidiano

[lagarto]

Originally Posted by MikeC

Its great news. Critically they must also address who gets to see that $. In a arecent article in TIME magazine, they estimate that in small municipios, i think under 50,000 peropel from memory, that up to 90% of the assigned budget, leaks out into hands of corruption, ie the target actually sees 10 cents in the government dollar. Lest hope the desperate get to see as much of the tax payesr $ as possible.

Here is where all the $$$ are going..

Brazil Wholesale Inflation May 2008
Brazil's broadest price index rose at the highest monthly rate in five months in May, increasing speculation that the central bank will raise interest rates for a second straight time at its meeting next week. Wholesale, consumer and construction prices, as measured by the IGP-M price index, rose 1.61 percent in May, the Rio de Janeiro-based Getulio Vargas Foundation said today on its Web site.

Consumer price increases, as measured by the government's IPCA, quickened to 5.25 percent in the 12-month period to mid- May, the fastest pace in more than two years, the national statistics agency said yesterday.

Property Brazil - Brazil property for sale near Fortaleza

[RalphJ]

Originally Posted by MikeC

Its great news. Critically they must also address who gets to see that $. In a arecent article in TIME magazine, they estimate that in small municipios, i think under 50,000 peropel from memory, that up to 90% of the assigned budget, leaks out into hands of corruption, ie the target actually sees 10 cents in the government dollar. Lest hope the desperate get to see as much of the tax payesr $ as possible.

You hit the nail on the head Mike! A survey was done here by the federal gov't. within the last 2.5 years which showed proof of 92% of ALL Brazilian municipalities had accounting irregularities....and naturally one can assume that there were some that were simply not caught. One can throw all the money they want at a problem but until the enormous problems of the systematic corruption that exists at all levels is not seriously addressed it's just like throwing sand in a sieve.

Brazil is one of the most selfish and corrupt contries in all the world. This $ will never get down to poor folks, no way.

Go to Brazil & have fun, enjoy your time there. Dont invest, and if you must -- I advise Floripa (on the island-be prepared to pay), Sergipe/Maceio or extreme virgin LT areas like SL/Belem/Manaus.

Personally, Brazil is the last place I'd ever invest my hard earned $.

My two cents

[Coqueiro]

Originally Posted by Dotty

Raimundo,
Now is not the right time to buy holiday property in Brasil as it's way over priced and it's definately a tough one to sell on.There are hundreds upon hundreds of properties for sale here in Natal and they are seriously not moving .Everybody is trying to sell and tourists are not here to buy.I was in Pipa the other day and it was deserted and room rates are very negotiable with slashed prices in process
a bit like being in Benidorm!!

To be fair its low low season here, mid winter even. Lots of rain fresh nights not the best time to blow some cash on a holiday. Its normal for pousadas to be empty now, here in Itacare, we close for June and take a holiday. The bookings are looking good for July, it should be a bumper.

I spent a couple of days in Ponta Negra Natal at the end of 2002 and did not really take to it. It did remind me of Benidorm type place a bit.

If the Brasilian middle class decide that a place is not a desirable destination anymore, its the end for that town, think Margate.