From anti-globalist to globalist cheerleader

I wrote earlier that Brazil's economy has improved because of its anti-globalist nature... meaning that much of Brazil's growth has been powered by its relatively insular market and strong internal consumption.

That may be true of the past, but Brazil needs a strong globalized system in order to grow in the future.

But Brazil’s ethanol-fueled economy may have hit a rough patch. The country’s stock market went into bear territory this week, falling 20 percent from its recent high. The collapse of the Doha world trade round has put the brakes on Brazil becoming a major exporter of agricultural products to the United States market. Meanwhile, a drop in oil and metal prices could send the country’s economy into a tailspin.

Can Brazilian M&A Stay Hot?

All this probably explains why Lula is so keen to restart the failed Doha talks.