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The Governments spend large sums of money to entice foreign direct investment (F

DI), offering generous tax incentives. We believe that foreign firms will genera
te positive externalities on domestic firms.
•Brazil has 12 billion barrels of proven oil reserves, the second-largest in South
America after Venezuela.
•Petrobras has the world’s largest capital expenditure programme, worth $220 billio
n over the next five years.
•The discoveries of oil made by Petrobrás have made it ease to forget that Brazil is
already the world´s largest exporter of coffe, sugar, chickens, beef and orange j
uice. It also exports vast amount of soya and iron ore, as well as other ores an
d metals.
This note summarizes Bahia s economic prospects. The state s future looks bright
; but it will require lots of hard work and leadership to bring the less fortuna
te people out of poverty.