Brazil, BRICS Membership And FDI: Economic Divergence And Future Prospects

Abstract

Brazil has long depended on IFDI to boost economic growth. Its membership in the BRICS grouping since 2001 has increased links with two of the world’s fastest-growing economies – China and India. However, Brazil has not been a strong economic performer within the BRICS group, attracting only a modest share of IFDI both globally and intra-group, in part because of its high cost of doing business. Brazil’s primary benefits of BRICS membership have come from increased trade, involvement in alternative governance arrangements, and broader support from China. Economic reforms, both domestically and internationally, are critical to Brazil’s continuing success in attracting IFDI.