Economic Regulations: Effect on Growth and Stability in Brazil and India

Abstract

Brazil and India are two of the important emerging economies of today. A comparative study of the two country's economic regulations is interesting and can give useful learning for both countries. Their similarities in terms of large geographical area, large size of population, high unemployment rates, dominant services sector, a mixed economy framework, common interests in international markets and trade platforms like WTO (pharmaceuticals, agriculture, etc.) on the one hand and contrasts by way of political experiences, economic upheavals, dependence on foreign financial flows combine to make this a rich and meaningful study (Oliver Stuenkel, 2010). The paper aims at identifying the reasons that have helped India to achieve rapid GDP growth and remain economically stable over the last quarter of a century and have also enabled Brazil, with a history of economic ups and downs to manage the effects of the 2008-09 crises quickly. The Brazilian economy posted positive economic conditions in barely a year, without resorting to large increases in government spending or monetary easing. This makes us think that the Brazilian economic regulations model has matured.