You Think It's Bad Here, Take a Look at Brazil

Investment is the key to economic development. Here is an illustration of how a nation--Brazil--is suffering because it: 1) does not invest enough; and 2) not enough in the RIGHT things.

To sustain economic growth of 3 ½% a year, still too little to reduce unemployment dramatically, Brazil needs to invest 22% of GDP, says Alexandre Bassoli, an economist at HSBC, a British bank. Last year's investment rate was 18.5%. A voracious government crowds out private investment but, after paying interest and social security, barely has any money to invest itself. Foreign direct investment, vital to an economy that saves too little, has plunged (see chart). Lula's promises—the creation of 10m jobs the boldest among them—depend on doing better. More here.