Brazil's economic experience is considered one of the most successful in modern times. Brazil is now the seventh most prosperous country globally, and its political and international influence has reached the highest levels. Despite any current challenges, it is unlikely that Brazil will revert to its past state.
Brazil's experience might be the closest comparison to Egypt's situation, and following this model could be the way to save Egypt from its current economic crises. Brazil's history of governance is quite similar to Egypt's, with a slight difference in the civil period of the state.
Phases of Governance in Brazil:
From 1930 to 1975: Brazil was under absolute military rule, supported by the wealthy business class, while the people suffered from poverty. As protests and uprisings grew, the government responded with repression, leading to high crime rates, making the Brazilian population one of the most crime-ridden in the world.
From 1975 to 1985: The era of civilian generals came, marked by economic failure and financial collapse. Public debt rose by 900%, and the state could no longer secure loans from the World Bank.
From 1985 to 2003: The period of democratic civilian rule began, with leaders trying to save the country, but extreme poverty and a collapsed currency prevented significant success.
The Major Transformation:
In 2003, "Lula da Silva" took office. Da Silva was a poor man who grew up in a crime-ridden community and had experienced military oppression firsthand. This gave him a deep understanding of the people's struggles.
Da Silva's Successful Steps:
Balancing Social Classes: Da Silva reassured all segments of society, reaching out to the poor while also providing incentives for businessmen, understanding that the collapse of major companies would mean the collapse of the entire economy.
Austerity Measures: He implemented an austerity plan, reducing government spending and subsidies while redirecting funds towards economic development. This policy aimed to save money that could be used to improve the country’s financial situation.
Social Assistance: He created a program for financial support to poor families instead of general subsidies. This program benefited 11 million families, or about 64 million people, on the condition that they educate their children and maintain their health.
Raising Taxes: Taxes on the wealthy and large companies were increased, helping to fund social assistance programs and support the poor.
Encouraging Loans: Da Silva offered substantial incentives for obtaining loans to start businesses, which helped create jobs and stimulate the economy. Interest rates on loans were very low, making investment in Brazil attractive.
Results of These Policies:
Return of Migrants: About 2 million Brazilians returned from abroad, and 1.5 million foreigners came to invest in Brazil.
Investments: Brazil attracted massive investments, reaching $200 billion in 2011.
Agriculture and Raw Materials: Da Silva promoted agricultural production and raw material extraction, helping to achieve a surplus in the balance of payments.
Industries: Brazil began gradually developing its industries, starting with basic industries and progressing to advanced industries like automotive and aircraft manufacturing.
Currency: Da Silva introduced a new currency, the "Brazilian real," which became the strong national currency.
Tourism: Brazil capitalized on its fame in football and samba dancing to develop "festival tourism," attracting 5 million tourists annually.
Conclusion:
Brazil has become a global power, joining major economic alliances like "Mercosur" and "BRICS." Despite crises, the Brazilian economy has managed to stabilize and grow to the point where Brazil has become a creditor nation to the World Bank.
Lesson for Egypt:
Egypt can successfully implement Brazil's experience, provided the people unite with their government and president. To achieve this, everyone must feel a sense of justice and equality, and all population segments must be included, as Da Silva did in Brazil. The Egyptian people must see honesty in leadership and seriousness in economic reforms to achieve a better future.