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Brazil is the largest and most populous country in Latin America. Its massive land area of 8.5 million km² extends over almost half of the continent and is only slightly smaller than that of the United States of America. Located in the eastern part of South America, on the Atlantic Ocean, Brazil shares boundaries with every other South American country except Chile and Ecuador. Geographically the country is characterized by low-altitude plateaux surrounded by plains. Brazil ’s climate is largely tropical or subtropical with high temperatures and frequent rainfall. The southern region is more temperate, while the north-eastern part of the country is dry and prone to periodic droughts. The diverse vegetation across this vast land mass reflects the differences in soil and climate.

Brazil’s population of 189.3 million (in 2007) is currently growing at an annual rate of 1.2 per cent. Most of the country’s inhabitants are concentrated along the Atlantic coast, especially in the principal cities, Rio de Janeiro and Sao Paolo. The country is administered through a federal government and is made up of a federal district and 26 states, which are grouped into five regions.

Brazil has abundant natural resources. Its most remarkable asset is the huge portion of the Amazonian tropical rainforest that lies within Brazilian territory. Together, the Amazon forest and river basin make up the largest genetic reserve in the world and are believed to play an important part in stabilizing world climate. In this region deforestation – by loggers and cattle ranchers – has endangered a multitude of plant and animal species indigenous to the area and continues to be the cause of enormous environmental concern. In 2005 the government reported that one fifth of the Amazon forest had been cleared by deforestation.

Although agriculture accounts for about 7 per cent of gross domestic product (GDP) Brazil is a major agricultural producer and the largest producer at regional level. The sector has grown rapidly over the past two decades. The areas cultivated have expanded, and agricultural output increased by 47 per cent between 1990 and 2000 and by 30 per cent between 2000 and 2006 (FAO).

The country is the world’s largest coffee producer. Other important agricultural products include soybeans, wheat, rice, corn, sugar cane, cocoa, citrus and beef. The agriculture sector is divided between the export-oriented commercial sector, with production concentrated in the temperate fertile South and Centre-East regions, and the far more numerous smallholder family farms.

With its immense wealth of natural resources - including minerals, oil, hydropower and timber – and its large and well-developed agricultural, mining, manufacturing and service sectors, Brazil is the leading economic power in the Latin American region. GDP for 2007 was about US$1,300 billion, and the country continues to expand its presence in world markets.

Following a long period of economic instability, Brazil ’s present steady rate of growth can be attributed to a new strategy of expanding exports and encouraging foreign trade and investments, as well as to structural reforms introduced by the government from 1994. These reforms are based on public debt reduction, an increase in global economic efficiency and social security programmes, privatization of public enterprises and services, and tax reform. In the last decade Brazil has achieved dramatic results in improving living conditions for the nation’s poor people but it continues to have one of the most uneven income distributions in the world.