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Wednesday, May 19, 2010 at 12:01 AM
12:01AM

Chart of the day: Brazil's PAC-2 infrastructure program

DateWednesday, May 19, 2010 at 12:01AM

Earlier this spring Luiz Inacio "Lula" da Sivla, outgoing president of Brazil, announces the second phase of the government accelerate growth program (PAC2).  First phase (2007-2010) was for half a trillion.  Didn't meet all its targets, but met plenty and was significant factor in Brazil's growth.  With PAC2, investment as a percentage of GDP rises from just under 17% to above 21%.

The key bottlenecks are electricity and roads.  Of the 1.6km of highways, only 12% are paved.  Moving stuff on unpaved roads costs, on average, one-third more.  At 8.5m square km, Brazil is close to the size of the US and China (both roughly 9.5m square km).

AuthorThomas P.M. Barnett CommentPost a Comment | Reference1 Reference |
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