Free trade plays a significant role in improving the economic needs of people in a country. It leads to a healthy competition in today’s open market through continued innovation that brings about better products, good paying jobs for people and even better markets. Free trade, therefore, encourages economic development to both rich and less developed countries. Despite the fact that both Brazil and South Africa have plentiful resources for development and the economic powers in their respective regions, they have continued to experience high cases of poverty and injustices. The two countries are among those in the world with a high rate of economic inequality where few people control the economy by owning much of the country’s resources (Montalbano & Nenci 23-30). Lack of encouragement of free trade by both South Africa and Brazil has led to both countries being poor and with a high rate of injustices.
South Africa surpasses Brazil in inequality. In the recent years, the economic inequality in South Africa is becoming gradually unequal whereas Brazil’s economy is becoming progressively equal though inequality in Brazil is still high (Montalbano & Nenci 28). Because of these inequalities, both Brazil and South Africa continually experiences poverty and high rates of injustice. Although South has come up with policies encouraging free trade, there is no political and economic will. The governments of the day are not taking the free trade as a serious indicator that can result in economic growth in these countries. Also, there have been arguments that South Africa has continually employed apartheid practices due to their desire to gain larger profits, gaining larger market share and excluding competition from other countries (Montalbano & Nenci 35). Through this, South Africa’s free trade with other African countries is affected resulting to less market for their products. It also leads to poor investment in other states.
In the recent years, Brazil’s economic growth has stagnated. Brazil is one of those that have resorted to the adoption of the largest number of trade restrictions. This declines free trade between Brazil and other countries resulting in reduced economic growth and injustices. The tariff and non-tariff barriers imposed by Brazil discourage foreign investors from all over the world (Montalbano & Nenci 38). It therefore leads to continuous poverty.
In conclusion, despite the fact that both Brazil and South Africa have rich resources for development and the economic powers in their respective regions, they have continued to experience high cases of poverty and injustices. The two countries have continually practiced the most economic inequality globally. Although South Africa and Brazil have come up with policies encouraging free trade, there is no political and economic will. In the recent years, Brazil is one of those that have resorted to the adoption of the largest number of trade restrictions.
Works Cited
Montalbano, Pierluigi, and Silvia Nenci. "Trade Patterns and Trade Clusters: China, India, Brazil and South Africa in the Global Trading System." SSRN Electronic Journal (2010). Print.
