VZCZCXYZ0016
OO RUEHWEB
DE RUEHSO #0663 3471118
ZNR UUUUU ZZH
O 121118Z DEC 08
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8775
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 9926
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8945
RUCPDOC/USDOC WASHDC 3227
UNCLAS SAO PAULO 000663
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: GLOBAL ECONOMY-BRICS AND ANTI-CRISIS ARSENAL DECEMBER 11,
2008
The BRICS now start to decelerate strongly
Editorial in economic newspaper Valor Economico (12-11) says:
"...The development of the financial crisis showed the limits of
theories that pointed out to an economic global schizophrenia, with
the countries that form half of the world's GDP plunged in recession
and the emerging countries, the other half, escaping with health
from the contagion. The BRICS are certainly in better form than the
developed countries to face a deceleration, but left behind their
best memorable performances. If the cause for the joint
deceleration of the emerging countries is common, the differences on
the policies adopted to face the peculiar difficulties will dictate
the greater of lesser degree of adaptation to one of the worst
crises in almost a century."
Anti-crisis arsenal
Editorial in liberal Folha de S. Paulo (12-11) comments: "...In the
sequence of solutions that were proposed during this collapse [the
economic crisis], now is the promise of President-elect Barak Obama,
of a gigantic package of public expenditures in infra-structure. It
is not enough to avoid a run on banks, or assure conditions for the
circulation of credit. One can conclude that in the U.S. the
government needs to realize, itself, that it needs to make the
expenditures that consumers and companies refuse to make. In a few
months, a whole arsenal of measures painfully learnt during the
years of the 1929 crisis was put into practice. More it is not yet
known."
White