What steps if any, should be taken to provide for the poor and needy people in this country? The current economic crisis shaking the global economy has prompted many nations to review their economic policies to cope with the challenges of minimizing the impact of recession brought about by instability of securing markets, associated demand and questionable production supply and raw materials. As it stands, the world’s leading nations are in trouble of entering an even greater crisis brought about by.
It must be understood that the resources that are provided are finite in relation to the needs and wants of human beings. This mismatch is a problem that must be dealt with immediately and effectively because if this is allowed to continue there will not be enough for everyone and the basic needs for survival cannot even be provided adequately. As the Brazilian model has shown, the country does not even have the basic provisions that are necessary for survival. The population is suffering and the government is unable to make any lasting progress because of the problems that it is facing.
Key to finding a lasting solution is in understanding the root cause of the problem. A quick look at the world population reveals that while global economies are reeling from one economic uncertainty to the next, the need for goods and services of their respective populace are increasing as rapidly as their population increases and matures. Putting this in the context of Maslow’s Hierarchy of Needs an upward pressure is placed upon the demand for the basic necessities such as food and natural resources and the aspiration for self-actualization becomes more and more undeniable.
This brings to mind the fact that as long as there is poverty, peace is hardly attainable; and if governments do not secure the basic needs, peace and stability may never become a reality (Issit 2). From this, it is clear that there is an urgent need for the governments all over the world to curb if not control the growth of their respective populations. The first reason is because of the enormous strain that this is putting on the world’s resources could trigger over inflation (Issit 2). This can be best explained by a simple supply and demand model.
When there is a shortage of supply and the demand for the good remains constant. This simply means that there is less of the good that is available and the same number of people wants the good. This can be likened to a bidding war where there is only one item and people offer the seller as much as they can to be able to attain it thus raising the price and eliminating all those who do not have enough resources to compete. Conversely, when there is an oversupply and the demand remains constant, the equilibrium price falls.
Analogous to this would be the growth of the population and the increase of demand with the supply remaining the same or even decreasing. As such, if the governments are unwilling or unable to deal with the problem there could be widespread hunger and not amount of welfare or government intervention would then be able to alleviate the situation for it would already be too late (Issit 2). This concern comes on the heels of the recent UNESCO report showing that while the world is recovering from crisis it still has not addressed the fact that more and more individuals are suffering from hunger and unemployment.
The recent studies on population growth reveal that in the next couple of years the increase of human beings per country will exert so much pressure on the demand for natural resources and on the environment that it will cost more to feed each person than it ever has. With there being to emphasis on plans for rehabilitation or a move to more sustainable methods, it remains to be seen whether or not the world will be able to recover from the damage that is projected to be caused. The second reason is because of the fact that the population of the world is growing at a very rapid pace, most especially in the developing countries.
As can be seen in the graph below, the exponential increase in population without the corresponding increase in food supply will lead to an imbalance. These are the problems affecting Brazil and in order to solve these, there is a need to implement programs that provide sustainable development. Brazil is currently one of the leaders in methane capture technology and biodiesel. Using this as a springboard, access to cheaper alternative fuels could allow the country to make significant progress in manufacturing.
Having cheaper and cleaner energy can provide a two-fold revenue stream that can eventually be used to finance much needed infrastructure projects in the area. The carbon credits from the sale can be used to build schools and training centers while the cheaper energy can be used to boost certain industries within the Brazilian economy as well as bring in foreign companies and investors. Increasing the country’s exports and reducing the imports remains to be the key for Brazil. The highly competitive global market is in constant search for the lowest priced goods and at this point in time Brazil is able to offer that.
It is imperative, therefore, that Brazil take advantage of this global sourcing trend and further build on the lead that it has there. Other economic avenues that Brazil could also explore would be in outsourcing. While most of the Asian countries have become highly competitive in this field (e. g. India and the Philippines), there is still a lot of potential in this market. The geographical location of Brazil makes it an ideal investment choice for American firms. One other factor that makes this a viable option for this country is its financial network with the United States makes it easier for capital to enter the country.