Brazil's self-deprecating humor is an untouted national treasure. A favorite local joke speaks of the riches that God bestowed on Brazil: its vast land mass; its beautiful beaches and natural wonders, from the Amazon in the north to the fabulous Foz do Iguacu in the south; its natural resources, from gold and precious stones to deep ports and a vast network of rivers; its agricultural diversity and fertile soil. To compensate for such largesse, as the joke goes, He peopled this marvelous land with "Brazilians."

Brazil has emblazoned on its flag the national motto: "Order & Progress" ("Ordem e Progresso"). The irony of this motto has been the failure to observe such a lofty standard. Progress has been slow, and quite often more motley than orderly. But at the same time, the Brazilian-American Chamber of Commerce, based in New York City, is a vibrant group; the American Chamber of Commerce, based in Sao Paulo, Brazil, is a strong, active group representing a wide range of diverse business interests. The President of BankBoston is Brazilian. Some may suspect that the buzz on Brazil is muted by those businesses that already know the Brazilian secret, and don't want to share it with competitors.

Brazil sailed through the first half of the 20th Century with little interplay with much of the rest of the world or much involvement in the world politics being played out in Europe with World War I or in Europe and Asia in World War II. The authoritarian rule of Getulio Vargas prevailed from 1930 to 1945, with an interlude of democracy from 1945 to 1964. Brazil was a distant second to Argentina, in terms of its role in South American commerce, while Argentina asserted itself as the 8th largest economy in the world in the days leading up to World War II.

Brazil was not unknown to foreign business interests, and particularly US business interests, during the 20th Century, especially in the agricultural sector. By the late 1960s, bilateral trade between the US and Brazil was close to US $ 1.5 billion; US private investment in Brazil grew from roughly US $ 1 billion in 1961 to more than US $ 2.5 billion in 1974. By the late 1990s, US exports to Brazil totaled almost US $ 16 billion (1997 figures). Meanwhile, US imports from Brazil totaled almost US $ 10 billion (1997 figures).

Brazil in no way can be confused with Mexico, Argentina or any of the many other Spanish-speaking cultures of Latin America. It is separate and apart because of the Portuguese roots of its culture; because of the aggressive frontiersmen (the flagbearers or bandeirantes) who skewed its borders in South America as long ago as the 17th Century; and because of its unique blend of cultures from Europe, Africa and the indigenous population. In its shear size - in terms of area (larger than the Continental US) and in terms of its population (estimated at roughly 167 million in 1996), its unparalleled shorelines (for both tourism and shipping operations), its agricultural and industrial opportunities, Brazil has long regarded itself as first among equals in South America. And, possibly, in private, first among less than equals.

Brazil at times has been less than a tropical paradise for business interests. The military dominated Brazil from 1964 to 1985. While Brazil's natural advantages and huge labor pool allowed the country to become the economic power of South America during the 1970s, the rewards were pretty much distributed within a closed circle. Furthermore, while the period was focused to a degree on a massive building of infrastructure, the competition was fairly inbred; the potential for corruption was great. Moreover, this period of growth with virtually no consideration of cost or budget, coupled with a steep increase in interest rates and the precipitous drop in commodity prices that were a staple of the Brazilian economy, laid the foundation for the hyper-inflation that plagued the economy in the 1980s and early 1990s. Another Brazilian joke from a senior Planning & Economics Ministry official in the mid-1980s: "We have now managed to contain our inflation at the rate of 30 %. For you outsiders, not familiar with the Brazilian economy, that's per month, and not per year."

Brazil has borne its share of unfortunate developments, with an element of tragicomedy thrown in that befits the Brazilian culture. Brazil's first post-military President-to-be, chosen by the Congress, was the popular, even revered President-elect, Tancredo Neves; Neves died prior to inauguration in 1986, following a victory tour through Europe during which he contracted a fatal case of pneumonia. The Vice President never meant to be President, Jose Sarney, assumed the position of President (1986-90) and somehow did not allow the ship of state to be ceded back to the military. The first popularly elected President following the military regime, Fernando Collor de Mello, was a youthful, attractive JFK-clone, but one with a future that he wanted to buy today. The percentage of corruption pursued by Collor's henchman, even by Brazilian standards, was beyond the palatable. A second Vice President never meant to be President, the briefly tenured Itamar Franco, assumed the Presidency that Collor left virtually kicking and screaming, resigning on the day trial commenced, following impeachment proceedings begun months earlier. Echoing the same aura of corruption, some 18 Brazilian legislators were recommended for removal from government in early 1994.

Finally, after lurching toward democracy, Brazil seems to have gotten it right with the election of former Finance Minister (and former Foreign Minister), Fernando Henrique Cardoso. President Cardoso, a well educated and skillful, well-regarded political operative, had had his own attack of arrogance in his run for the position of Mayor of Sao Paulo: he was photographed, on the eve of election, in the ornate ceremonial chair of the powerful Mayor of Sao Paulo, the largest city in the country (over 15 million) and one of the largest cities in the world. Candidate Cardoso, the apparent front-runner, lost the race for Mayor, but may have learned a valuable political lesson on the psyche of the average voter in Brazil. When he ran for President in 1994, he was elected with the largest popular majority in Brazil since the mid-1940s. But, of course, this was Brazil; and Brazil does not have Presidential elections on a regular four-year basis.

President Cardoso was elected in part based on the overwhelming popularity of the Economic Plan that he crafted, framed and helped to implement in July 1994. While not the dollarization program that had helped wrest Argentina out of its economic morass in the late 1980s, it did move Brazil toward a more stable currency (the "real", which translates into the "royal" or "real thing"), out of the era of blinding inflation and incalculable financial consequences, and into an era of fixed value and manageable inflation. Many wondered if the Plan would "hold" for the first 6 months, or the first 12 months. There had been a history in Brazil of economic reforms, of negotiations with the International Monetary Fund over the crushing foreign debt, of efforts to address and conquer inflation. But there had been little to no long-term impact from all these earlier efforts and campaigns, despite the mandatory portraits in the Brazilian media of smiling negotiators claiming victory over the mostly recently sighted economic monster.

The Plan did hold from 1994, through 1998, with various levels of confidence demonstrated by Brazilian politicos, business community leaders and consumers. The Plan was also viewed with different levels of interest, intrigue and distrust by foreign investors and business representatives. In early 1999, just about the time when confidence may be thought to have translated into concrete reality and absolute reliance, devaluation struck the Real.

What can be said now for the Brazilian economy? Maybe more important still, what about the businesses interested in diving into Brazil, with all its complexities and unknowable political and cultural forces? Consider:

* Size of market. Brazil is the most populous country in Latin America, and the 5th largest country in the world. It deserves an evaluation.

* Concentration of population. Most Brazilians live near the coast in Brazil, in cities such as Rio de Janeiro, Sao Paulo, Porto Alegre, and Salvador. Overall, roughly 40 % of the population is distributed among the top 10 cities in Brazil.

* Homogeneity of population. Portuguese is the single official language in Brazil, with little differentiation in dialect. Assimilation of various Eurocentric and Afrocentric cultures is the norm.

* Elimination of trade barriers and marketing initiatives. Establishment and development of Mercosul/Mercosur has meant a vibrant trade alliance that was previously unknown and virtually unimaginable between its principal members, Brazil and Argentina.

* Opening of markets and privatization. Key areas formerly dominated by the government, including steel, petrochemicals, telecommunications and utilities, are open to private investment and privately funded technical advancement.

* Thirst for consumption. Brazil's media does an excellent job of portraying to Brazil the state of the rest of the world. Brazilians are eager, motivated consumers.

Brazil has its flaws. The gap between rich and poor is extreme; the average wage of the typical Brazilian is minuscule by US standards. Working with a business partner who had adjusted to hyperinflation, but has not yet readjusted to the Plano Economico economy, can be a challenge. Taxation can be a heavy burden in Brazil. Fraud and possible corruption are factors to be given healthy consideration prior to signing the bottom line. Physical security is a concern in certain areas of Rio, Sao Paulo and other urban areas.

At the same time, the Government of Brazil has made clear that Brazil is open for business. Ambassador Rubens Barbosa recently announced a major new initiative to attract small to medium-sized businesses and niche players to the Brazilian marketplace. Carnaval is no longer the only reason to go to Brazil. A huge, attractive market, with a developing economy on an upward curve, pushing for stability and meaningful reform, is eager to be tapped.

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