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Brazil-The 1981-84 Period

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In 1979 a second oil shock nearly doubled the price of imported oil to Brazil and lowered the terms of trade further. The rise in world interest rates increased sharply Brazil's balance of payments problem and the size of the foreign debt. Nevertheless, the government continued borrowing, mainly to face an increasing debt burden, while it tried vainly to maintain the high-growth strategy. At the beginning of the 1980s, however, the foreign-debt problem became acute, leading to the introduction of a program to generate growing trade surpluses in order to service the foreign debt. The program was achieved by reducing growth and, with it, imports, and by expanding exports. As a result, in 1981 real GDP declined by 4.4 percent. The 1982 Mexican debt crisis ended Brazil's access to international financial markets, increasing the pressure for economic adjustment.

The austerity program imposed by the International Monetary Fund (IMF--see Glossary) in late 1979 continued until 1984, but substantial trade surpluses were obtained only from 1983 on, largely as a delayed result of the import-substitution industrialization programs of the 1970s and the reduction in imports brought about by economic decline. The austerity program enabled Brazil to meet interest payments on the debt, but at the price of economic decline and increasing inflation.

Inflation accelerated as a result of a combination of factors: the exchange-rate devaluations of the austerity program, a growing public deficit, and an increasing indexation (see Glossary) of financial balances, wages, and other values for inflation. The first two factors are classical causes of inflation; the last became an important mechanism for propagating inflation and in preventing the usual instruments of inflation control from operating.

By the mid-1980s, domestic debt nearly displaced foreign debt as Brazil's main economic problem. During the high-growth 1970s, a significant portion of foreign borrowing had been by state enterprises, which were the main actors in the import-substitution industrialization strategy. Initially, they borrowed to finance their investments. However, toward the end of the decade, with the acute shortage of foreign exchange, the government forced state enterprises to borrow unnecessarily, increasing their indebtedness markedly. Their situation worsened with the sharp rise in international interest rates in the late 1970s, the devaluations of the austerity program, and the decreasing real prices of goods and services provided by the public enterprises stemming from price controls. Because the state enterprises were not allowed to go bankrupt, their debt burden was transferred gradually to the government, further increasing the public debt. This, and a growing disorganization of the public sector, transformed the public debt into a major economic problem. By the mid-1980s, the financial burden stemming from the debt was contributing decisively to its rapid expansion.

The 1985-89 Period

During the second half of the 1980s, it became increasingly clear that a large-scale fiscal reform, one that enabled noninflationary financing of the public sector, was needed not only to control inflation but also to restore the public sector's capacity to invest. Both were essential for an economic recovery. However, political obstacles prevented the reform from materializing. And, because inflation had become the most visible symptom of the public-sector disequilibrium, there were several attempts to bring inflation under control through what came to be known as "heterodox economic shocks." The period saw three such shocks: the Cruzado Plan (1986), the Bresser Plan (1987), and the Summer Plan (1989).

The objective of the Cruzado Plan was to eliminate inflation with a dramatic blow. Between 1980 and 1985, the rise in the GPI had escalated from 86.3 percent to 248.5 percent annually. Early in 1986, the situation became desperate, prodding the implementation of the plan. Its main measures were a general price freeze, a wage readjustment and freeze, readjustment and freeze on rents and mortgage payments, a ban on indexation, and a freeze on the exchange rate.

The plan's immediate results were spectacular: the monthly rate of inflation fell close to zero, economic growth surged upward, and the foreign accounts remained under control. However, by the end of 1986 the plan was in trouble. The wage adjustments were too large, increasing aggregate demand excessively and creating inflationary pressures. Moreover, the price freeze was maintained for too long, creating distortions and leading to shortages of a growing number of products. The plan could have been rescued if adjustments had been made at crucial moments. Instead, inflation accelerated again, and there was a return of indexation.

The two other stabilization plans amounted to renewed attempts at bringing inflation down from very high levels. It was soon clear that without a thorough reform of the public sector, controlling inflation would be impossible. Both plans introduced a price freeze and eliminated indexation, but there were differences between them, and with the Cruzado Plan. Neither was able to address the public-sector disequilibrium effectively. The objective of the Summer Plan, for instance, was mainly to avoid hyperinflation in an election year.

In fact, the public-sector disequilibrium became virtually locked in as a result of the 1988 constitution, which created advantages for various segments of society without indicating how these advantages would be paid for. Moreover, it transferred large portions of the tax revenues from the federal government to state and municipal governments, without requiring them to provide additional public services. With less revenue and more responsibility, the federal accounts experienced growing deficits. In addition, several subsidies were locked into the legislation. These factors and the financial burden of the public debt meant growing problems of public finance.

The 1980s ended with high and accelerating inflation and a stagnant economy, which never recovered after the demise of the Cruzado Plan. The public debt was enormous, and the government was required to pay very high interest rates to persuade the public to continue to buy government debt instruments (see also Trade Policies, this ch.).

Data as of April 1997

Background		Following more than three centuries under Portuguese rule, Brazil peacefully gained its independence in 1822, maintaining a monarchical system of government until the abolition of slavery in 1888 and the subsequent proclamation of a republic by the military in 1889. Brazilian coffee exporters politically dominated the country until populist leader Getulio VARGAS rose to power in 1930. By far the largest and most populous country in South America, Brazil underwent more than half a century of populist and military government until 1985, when the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue industrial and agricultural growth and development of its interior. Exploiting vast natural resources and a large labor pool, it is today South America's leading economic power and a regional leader. Highly unequal income distribution and crime remain pressing problems.
Location		Eastern South America, bordering the Atlantic Ocean
Area(sq km)		total: 8,514,877 sq km land: 8,459,417 sq km water: 55,460 sq km note: includes Arquipelago de Fernando de Noronha, Atol das Rocas, Ilha da Trindade, Ilhas Martin Vaz, and Penedos de Sao Pedro e Sao Paulo
Geographic coordinates		10 00 S, 55 00 W
Land boundaries(km)		total: 16,885 km border countries: Argentina 1,261 km, Bolivia 3,423 km, Colombia 1,644 km, French Guiana 730 km, Guyana 1,606 km, Paraguay 1,365 km, Peru 2,995 km, Suriname 593 km, Uruguay 1,068 km, Venezuela 2,200 km
Coastline(km)		7,491 km
Climate		mostly tropical, but temperate in south
Elevation extremes(m)		lowest point: Atlantic Ocean 0 m highest point: Pico da Neblina 3,014 m
Natural resources		bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, uranium, petroleum, hydropower, timber
Land use(%)		arable land: 6.93% permanent crops: 0.89% other: 92.18% (2005)
Irrigated land(sq km)		29,200 sq km (2003)
Total renewable water resources(cu km)		8,233 cu km (2000)
Freshwater withdrawal (domestic/industrial/agricultural)		total: 59.3 cu km/yr (20%/18%/62%) per capita: 318 cu m/yr (2000)
Natural hazards		recurring droughts in northeast; floods and occasional frost in south
Environment - current issues		deforestation in Amazon Basin destroys the habitat and endangers a multitude of plant and animal species indigenous to the area; there is a lucrative illegal wildlife trade; air and water pollution in Rio de Janeiro, Sao Paulo, and several other large cities; land degradation and water pollution caused by improper mining activities; wetland degradation; severe oil spills
Environment - international agreements		party to: Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling signed, but not ratified: none of the selected agreements
Geography - note		largest country in South America; shares common boundaries with every South American country except Chile and Ecuador
Population		198,739,269 note: Brazil conducted a census in August 2000, which reported a population of 169,872,855; that figure was about 3.8% lower than projections by the US Census Bureau, and is close to the implied underenumeration of 4.6% for the 1991 census (July 2009 est.)
Age structure(%)		0-14 years: 26.7% (male 27,092,880/female 26,062,244) 15-64 years: 66.8% (male 65,804,108/female 67,047,725) 65 years and over: 6.4% (male 5,374,230/female 7,358,082) (2009 est.)
Median age(years)		total: 28.6 years male: 27.8 years female: 29.3 years (2009 est.)
Population growth rate(%)		1.199% (2009 est.)
Birth rate(births/1,000 population)		18.43 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)		6.35 deaths/1,000 population (July 2009 est.)
Net migration rate(migrant(s)/1,000 population)		-0.09 migrant(s)/1,000 population (2009 est.)
Urbanization(%)		urban population: 86% of total population (2008) rate of urbanization: 1.8% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)		at birth: 1.05 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 0.98 male(s)/female 65 years and over: 0.73 male(s)/female total population: 0.98 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)		total: 22.58 deaths/1,000 live births male: 26.16 deaths/1,000 live births female: 18.83 deaths/1,000 live births (2009 est.)
Life expectancy at birth(years)		total population: 71.99 years male: 68.43 years female: 75.73 years (2009 est.)
Total fertility rate(children born/woman)		2.21 children born/woman (2009 est.)
Nationality		noun: Brazilian(s) adjective: Brazilian
Ethnic groups(%)		white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census)
Religions(%)		Roman Catholic (nominal) 73.6%, Protestant 15.4%, Spiritualist 1.3%, Bantu/voodoo 0.3%, other 1.8%, unspecified 0.2%, none 7.4% (2000 census)
Languages(%)		Portuguese (official and most widely spoken language); note - less common languages include Spanish (border areas and schools), German, Italian, Japanese, English, and a large number of minor Amerindian languages
Country name		conventional long form: Federative Republic of Brazil conventional short form: Brazil local long form: Republica Federativa do Brasil local short form: Brasil
Government type		federal republic
Capital		name: Brasilia geographic coordinates: 15 47 S, 47 55 W time difference: UTC-3 (2 hours ahead of Washington, DC during Standard Time) daylight saving time: +1hr, begins third Sunday in October; ends third Sunday in February note: Brazil is divided into four time zones, including one for the Fernando de Noronha Islands
Administrative divisions		26 states (estados, singular - estado) and 1 federal district* (distrito federal); Acre, Alagoas, Amapa, Amazonas, Bahia, Ceara, Distrito Federal*, Espirito Santo, Goias, Maranhao, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Para, Paraiba, Parana, Pernambuco, Piaui, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondonia, Roraima, Santa Catarina, Sao Paulo, Sergipe, Tocantins
Constitution		5-Oct-88
Legal system		based on Roman codes; has not accepted compulsory ICJ jurisdiction
Suffrage		voluntary between 16 and 18 years of age and over 70; compulsory over 18 and under 70 years of age; note - military conscripts do not vote
Executive branch		chief of state: President Luiz Inacio LULA da Silva (since 1 January 2003); Vice President Jose ALENCAR Gomes da Silva (since 1 January 2003); note - the president is both the chief of state and head of government head of government: President Luiz Inacio LULA da Silva (since 1 January 2003); Vice President Jose ALENCAR Gomes da Silva (since 1 January 2003) cabinet: Cabinet appointed by the president elections: president and vice president elected on the same ticket by popular vote for a single four-year term; election last held 1 October 2006 with runoff 29 October 2006 (next to be held 3 October 2010 and, if necessary, 31 October 2010) election results: Luiz Inacio LULA da Silva (PT) reelected president - 60.83%, Geraldo ALCKMIN (PSDB) 39.17%
Legislative branch		bicameral National Congress or Congresso Nacional consists of the Federal Senate or Senado Federal (81 seats; 3 members from each state and federal district elected according to the principle of majority to serve eight-year terms; one-third and two-thirds elected every four years, alternately) and the Chamber of Deputies or Camara dos Deputados (513 seats; members are elected by proportional representation to serve four-year terms) elections: Federal Senate - last held 1 October 2006 for one-third of the Senate (next to be held in October 2010 for two-thirds of the Senate); Chamber of Deputies - last held 1 October 2006 (next to be held in October 2010) election results: Federal Senate - percent of vote by party - NA; seats by party - PFL 6, PSDB 5, PMDB 4, PTB 3, PT 2, PDT 1, PSB 1, PL 1, PPS 1, PRTB 1, PP 1, PCdoB 1; Chamber of Deputies - percent of vote by party - NA; seats by party - PMDB 89, PT 83, PFL 65, PSDB 65, PP 42, PSB 27, PDT 24, PL 23, PTB 22, PPS 21, PCdoB 13, PV 13, PSC 9, other 17; note - as of 1 January 2009, the composition of the entire legislature is as follows: Federal Senate - seats by party - PMDB 21, DEM (formerly PFL) 12, PSDB 13, PT 12, PTB 7, PDT 5, PR 4, PSB 2, PCdoB 1, PRB 1, PP 1, PSC 1, PSOL 1; Chamber of Deputies - seats by party - PMDB 95, PT 79, PSDB 59, DEM (formerly PFL) 53, PR 44, PP 40, PSB 29, PDT 25, PTB 19, PPS 14, PV 14, PCdoB 13, PSC 11, PMN 5, PRB 4, PHS 3, PSOL 3, PTC 1, PTdoB 1
Judicial branch		Supreme Federal Tribunal or STF (11 ministers are appointed for life by the president and confirmed by the Senate); Higher Tribunal of Justice; Regional Federal Tribunals (judges are appointed for life); note - though appointed "for life," judges, like all federal employees, have a mandatory retirement age of 70
Political pressure groups and leaders		Landless Workers' Movement or MST other: labor unions and federations; large farmers' associations; religious groups including evangelical Christian churches and the Catholic Church
International organization participation		AfDB (nonregional member), BIS, CAN (associate), CPLP, FAO, G-15, G-20, G-24, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAES, LAIA, LAS (observer), Mercosur, MIGA, MINURCAT, MINURSO, MINUSTAH, NAM (observer), NSG, OAS, OPANAL, OPCW, Paris Club (associate), PCA, RG, SICA (observer), UN, UN Security Council (temporary), UNASUR, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, Union Latina, UNITAR, UNMIL, UNMIS, UNMIT, UNOCI, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Flag description		green with a large yellow diamond in the center bearing a blue celestial globe with 27 white five-pointed stars (one for each state and the Federal District) arranged in the same pattern as the night sky over Brazil; the globe has a white equatorial band with the motto ORDEM E PROGRESSO (Order and Progress)
Economy - overview		Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and Brazil is expanding its presence in world markets. From 2003 to 2007, Brazil ran record trade surpluses and recorded its first current account surpluses since 1992. Productivity gains coupled with high commodity prices contributed to the surge in exports. Brazil improved its debt profile in 2006 by shifting its debt burden toward real denominated and domestically held instruments. LULA da Silva restated his commitment to fiscal responsibility by maintaining the country's primary surplus during the 2006 election. Following his second inauguration in October of that year, LULA da Silva announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. Brazil's debt achieved investment grade status early in 2008, but the government's attempt to achieve strong growth while reducing the debt burden created inflationary pressures. For most of 2008, the Central Bank embarked on a restrictive monetary policy to stem these pressures. Since the onset of the global financial crisis in September, Brazil's currency and its stock market - Bovespa - have significantly lost value, -41% for Bovespa for the year ending 30 December 2008. Brazil incurred another current account deficit in 2008, as world demand and prices for commodities dropped in the second-half of the year.
GDP (purchasing power parity)		$1.998 trillion (2008 est.) $1.901 trillion (2007 est.) $1.798 trillion (2006 est.) note: data are in 2008 US dollars
GDP (official exchange rate)		$1.573 trillion (2008 est.)
GDP - real growth rate(%)		5.1% (2008 est.) 5.7% (2007 est.) 4% (2006 est.)
GDP - per capita (PPP)		$10,200 (2008 est.) $9,800 (2007 est.) $9,400 (2006 est.) note: data are in 2008 US dollars
GDP - composition by sector(%)		agriculture: 6.7% industry: 28% services: 65.3% (2008 est.)
Labor force		93.65 million (2008 est.)
Labor force - by occupation(%)		agriculture: 20% industry: 14% services: 66% (2003 est.)
Unemployment rate(%)		7.9% (2008 est.) 9.3% (2007 est.)
Population below poverty line(%)		31% (2005)
Household income or consumption by percentage share(%)		lowest 10%: 1.1% highest 10%: 43% (2007)
Distribution of family income - Gini index		56.7 (2005) 60.7 (1998)
Investment (gross fixed)(% of GDP)		19% of GDP (2008 est.)
Budget		revenues: NA expenditures: NA
Inflation rate (consumer prices)(%)		5.7% (2008 est.) 3.6% (2007 est.)
Stock of money		$95.03 billion (31 December 2008) $131.1 billion (31 December 2007)
Stock of quasi money		$724.5 billion (31 December 2008) $792.8 billion (31 December 2007)
Stock of domestic credit		$1.249 trillion (31 December 2008) $1.377 trillion (31 December 2007)
Market value of publicly traded shares		$589.4 billion (31 December 2008) $1.37 trillion (31 December 2007) $711.1 billion (31 December 2006)
Economic aid - recipient		$191.9 million (2005)
Public debt(% of GDP)		38.8% of GDP (2008 est.) 52% of GDP (2004 est.)
Agriculture - products		coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Industries		textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment
Industrial production growth rate(%)		4.3% (2008 est.)
Current account balance		-$28.19 billion (2008 est.) $1.551 billion (2007 est.)
Exports		$197.9 billion (2008 est.) $160.6 billion (2007 est.)
Exports - commodities(%)		transport equipment, iron ore, soybeans, footwear, coffee, autos
Exports - partners(%)		US 14.4%, China 12.4%, Argentina 8.4%, Netherlands 5%, Germany 4.5% (2008)
Imports		$173.1 billion (2008 est.) $120.6 billion (2007 est.)
Imports - commodities(%)		machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics
Imports - partners(%)		US 14.9%, China 11.6%, Argentina 7.9%, Germany 7% (2008)
Reserves of foreign exchange and gold		$193.8 billion (31 December 2008 est.) $180.3 billion (31 December 2007 est.)
Debt - external		$262.9 billion (31 December 2008) $240.5 billion (31 December 2007)
Stock of direct foreign investment - at home		$294 billion (31 December 2008 est.) $248.9 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad		$127.5 billion (31 December 2008 est.) $107.1 billion (31 December 2007 est.)
Exchange rates		reals (BRL) per US dollar - 1.8644 (2008 est.), 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004)
Currency (code)		real (BRL)
Telephones - main lines in use		41.141 million (2008)
Telephones - mobile cellular		150.641 million (2008)
Telephone system		general assessment: good working system; fixed-line connections have remained relatively stable in recent years and stand at about 20 per 100 persons; less expensive mobile cellular technology is a major driver in expanding telephone service to the low-income segment of the population with mobile-cellular telephone density reaching 80 per 100 persons domestic: extensive microwave radio relay system and a domestic satellite system with 64 earth stations; mobile-cellular usage has more than tripled in the past 5 years international: country code - 55; landing point for a number of submarine cables, including Atlantis 2, that provide direct links to South and Central America, the Caribbean, the US, Africa, and Europe; satellite earth stations - 3 Intelsat (Atlantic Ocean), 1 Inmarsat (Atlantic Ocean region east), connected by microwave relay system to Mercosur Brazilsat B3 satellite earth station (2008)
Internet country code		.br
Internet users		64.948 million (2008)
Airports		4,000 (2009)
Pipelines(km)		condensate/gas 62 km; gas 9,892 km; liquid petroleum gas 353 km; oil 4,517 km; refined products 4,465 km (2008)
Roadways(km)		total: 1,751,868 km paved: 96,353 km unpaved: 1,655,515 km (2004)
Ports and terminals		Guaiba, Ilha Grande, Paranagua, Rio Grande, Santos, Sao Sebastiao, Tubarao
Military branches		Brazilian Army (Exercito Brasileiro, EB), Brazilian Navy (Marinha do Brasil (MB), includes Naval Air and Marine Corps (Corpo de Fuzileiros Navais)), Brazilian Air Force (Forca Aerea Brasileira, FAB) (2009)
Military service age and obligation(years of age)		21-45 years of age for compulsory military service; conscript service obligation - 9 to 12 months; 17-45 years of age for voluntary service; an increasing percentage of the ranks are "long-service" volunteer professionals; women were allowed to serve in the armed forces beginning in early 1980s when the Brazilian Army became the first army in South America to accept women into career ranks; women serve in Navy and Air Force only in Women's Reserve Corps (2001)
Manpower available for military service		males age 16-49: 52,523,552 females age 16-49: 52,628,945 (2009 est.)
Manpower fit for military service		males age 16-49: 38,043,555 females age 16-49: 44,267,520 (2009 est.)
Manpower reaching militarily significant age annually		male: 1,690,031 female: 1,630,851 (2009 est.)
Military expenditures(% of GDP)		2.6% of GDP (2006 est.)
Disputes - international		unruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations; uncontested boundary dispute with Uruguay over Isla Brasilera at the confluence of the Quarai/Cuareim and Invernada rivers, that form a tripoint with Argentina; the Itaipu Dam reservoir covers over a once contested section of Brazil-Paraguay boundary west of Guaira Falls on the Rio Parana; an accord placed the long-disputed Isla Suarez/Ilha de Guajara-Mirim, a fluvial island on the Rio Mamore, under Bolivian administration in 1958, but sovereignty remains in dispute
Electricity - production(kWh)		438.8 billion kWh (2007 est.)
Electricity - production by source(%)		fossil fuel: 8.3% hydro: 82.7% nuclear: 4.4% other: 4.6% (2001)
Electricity - consumption(kWh)		404.3 billion kWh (2007 est.)
Electricity - exports(kWh)		2.034 billion kWh (2007 est.)
Electricity - imports(kWh)		42.06 billion kWh; note - supplied by Paraguay (2008 est.)
Oil - production(bbl/day)		2.422 million bbl/day (2008 est.)
Oil - consumption(bbl/day)		2.52 million bbl/day (2008 est.)
Oil - exports(bbl/day)		570,100 bbl/day (2007 est.)
Oil - imports(bbl/day)		632,900 bbl/day (2007 est.)
Oil - proved reserves(bbl)		12.62 billion bbl (1 January 2009 est.)
Natural gas - production(cu m)		12.62 billion cu m (2008 est.)
Natural gas - consumption(cu m)		23.65 billion cu m (2008 est.)
Natural gas - exports(cu m)		0 cu m (2008)
Natural gas - proved reserves(cu m)		365 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)		0.6% (2007 est.)
HIV/AIDS - people living with HIV/AIDS		730,000 (2007 est.)
HIV/AIDS - deaths		15,000 (2007 est.)
Literacy(%)		definition: age 15 and over can read and write total population: 88.6% male: 88.4% female: 88.8% (2004 est.)
School life expectancy (primary to tertiary education)(years)		total: 14 years male: 14 years female: 15 years (2005)
Education expenditures(% of GDP)		4% of GDP (2004)