National Intellectual Capital and the Financial Crisis in Brazil, Russia, India, China, Korea, and South Africa
In the first decade of the twenty-first century, the biggest event of worldwide proportion was the 2008 global financial crisis, which was caused primarily by ineffective governance, failed surveillance systems, and implementation flaws. While fisca
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C.Y.-Y. Lin et al., National Intellectual Capital and the Financial Crisis in Brazil, Russia, India, China, Korea, and South Africa, SpringerBriefs in Economics 18, DOI 10.1007/978-1-4614-6089-3, © The Author(s) 2013
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Date
Sep 2008
Country
Brazil 1. Public bank could purchase the stock of real estate firms and other sectors (US$880 mn to US$1.09 bn) 2. Loans to companies for refinancing their external debts (US$20 bn) 3. On January 21, 2009, the central bank cut its basic rate by 100 basis points (from 13.75% to 12.75%) 4. Expansion of borrowing capacity of PETROBRAS and the National Bank (BNDES) to keep up planned investment levels (US$5.3 bn) 5. US$6.5 bn in support for the agricultural sector 6. A 12% increase in the minimum wage Fiscal policy: 1. Injection of over US$43.8 bn to keep up consumption levels 2. Ensure a budget of at least US$11.4 bn for spending 3. The sectors worst hit by the crisis were granted fresh tax cuts and more resources 4. US$9.2 bn earmarked for the Growth Acceleration Program in the 2009 budget 5. US$6.3 bn reserved for the Sovereign Fund on projects 6. Release US$17.5 bn to help Brazilian firms get raw materials 7. A series of tax cuts totaling around US$3.7 bn to boost consumption 8. Extra US$4.2 bn of government investment, in addition to US$16.6 bn already planned 9. US$2.5 bn Treasury Bond for infrastructure investments Lowering car tax Infrastructure building—focusing on transport system and energy segment.
#1 Please see next column
#2
#3 US$221.4 bn
Item
#1(reference #) Please see the next column
Amount
Appendix 1 Summary of Main Stimulus Packages of the Six BRICKS Countries
Central government
Sponsor & remarks
Russia
Country
Federal government investment rose 12.7%, reaching US$9 bn (BRL20.5 bn)
#6
#6
#6
#6 US$9 bn (BRL20.5 bn)
2008/2009
March – 4th quarter, 2009
#7 US$200 bn (about 7% GDP)
Extended payment deadlines for various taxes.
#6
2009
Late 2008
Temporarily reduced the industrial products tax on automobile sales, household electrical appliances and construction inputs. Lower income tax rates for middle-income families.
#4 #5 US$40 bn (BRL72 bn)
March 2009
Item
2009
(continued)
Federal government #7 From 2008–2010, US$152 bn (around 15% of 2008 GDP)
The federal government and some states
Central government
Central bank
Central bank
Sponsor & remarks
Increase liquidity in the banking sector and aid Russian firms unable to Central government roll over large foreign debts coming due.
Public banks provided about 41% of all loans (18.5% of GDP). Reduced the basic interest rate to its lowest level in 20 years (8.75%, equivalent to a real annual rate of less than 5%)
Reduced deposit requirements, bought portfolios from smaller banks, and provide loans to micro- and small enterprises
Budget for new homes for low- and middle-income families program was increased from US$19 bn to US$40 bn (BRL72 bn).
The 2009 stimulus package amounted to a US$20 bn injection into the economy, equivalent to 1.2% of Brazil’s GDP, which composed of: 1.
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