Read the interview below entitled “Reason with him” so as to answer questions 27 to 30:

Reason with him
Source: www.newsweek.com
22nd Sep, 2009 (Adapted)

Question (Q) 1: Margolis: When you took office, Brazil was regarded as an underachiever, and the last among the BRIC nations. Now Brazil is considered a star among emerging countries. What´s happened?

Lula: No one respects anyone who doesn´t respect themselves. And Brazil always behaved like a second-class country. We always told ourselves we were the country of the future. But we never transformed these qualities into anything concrete. In a globalized world you cannot sit still. You have to hit the road and sell your country. So we decided to make strengthening Mercosul (the South American trading bloc) a priority, and deepened our relations with Latin America in general. We prioritized trade with Africa and went into the Middle East aggressively. Our trade balance today is diversified. This helped us cushion the blow of the economic crisis.

Q2: Margolis: Has Brazil´s success in navigating the economic crisis changed investors´views?

Lula: There was no miracle. We had a strong domestic market. We had consumers who wanted to buy cars. We reduced part of the sales tax and asked the companies to offer consumers credit on affordable items. It´s the same case with refrigerators, stoves, washing machines, and with computers and the housing construction.

Q3: Margolis: What are the lessons for other countries?

Lula: The great lesson is that the state has an important role to play, and has great responsibility. We don´t want the state to manage business. But it can be an inducer of growth and can work in harmony with society.

Read the interview below entitled “Reason with him” so as to answer questions 27 to 30:

Reason with him
Source: www.newsweek.com
22nd Sep, 2009 (Adapted)

Question (Q) 1: Margolis: When you took office, Brazil was regarded as an underachiever, and the last among the BRIC nations. Now Brazil is considered a star among emerging countries. What´s happened?

Lula: No one respects anyone who doesn´t respect themselves. And Brazil always behaved like a second-class country. We always told ourselves we were the country of the future. But we never transformed these qualities into anything concrete. In a globalized world you cannot sit still. You have to hit the road and sell your country. So we decided to make strengthening Mercosul (the South American trading bloc) a priority, and deepened our relations with Latin America in general. We prioritized trade with Africa and went into the Middle East aggressively. Our trade balance today is diversified. This helped us cushion the blow of the economic crisis.

Q2: Margolis: Has Brazil´s success in navigating the economic crisis changed investors´views?

Lula: There was no miracle. We had a strong domestic market. We had consumers who wanted to buy cars. We reduced part of the sales tax and asked the companies to offer consumers credit on affordable items. It´s the same case with refrigerators, stoves, washing machines, and with computers and the housing construction.

Q3: Margolis: What are the lessons for other countries?

Lula: The great lesson is that the state has an important role to play, and has great responsibility. We don´t want the state to manage business. But it can be an inducer of growth and can work in harmony with society.

Read the interview below entitled “Reason with him” so as to answer questions 27 to 30:

Reason with him
Source: www.newsweek.com
22nd Sep, 2009 (Adapted)

Question (Q) 1: Margolis: When you took office, Brazil was regarded as an underachiever, and the last among the BRIC nations. Now Brazil is considered a star among emerging countries. What´s happened?

Lula: No one respects anyone who doesn´t respect themselves. And Brazil always behaved like a second-class country. We always told ourselves we were the country of the future. But we never transformed these qualities into anything concrete. In a globalized world you cannot sit still. You have to hit the road and sell your country. So we decided to make strengthening Mercosul (the South American trading bloc) a priority, and deepened our relations with Latin America in general. We prioritized trade with Africa and went into the Middle East aggressively. Our trade balance today is diversified. This helped us cushion the blow of the economic crisis.

Q2: Margolis: Has Brazil´s success in navigating the economic crisis changed investors´views?

Lula: There was no miracle. We had a strong domestic market. We had consumers who wanted to buy cars. We reduced part of the sales tax and asked the companies to offer consumers credit on affordable items. It´s the same case with refrigerators, stoves, washing machines, and with computers and the housing construction.

Q3: Margolis: What are the lessons for other countries?

Lula: The great lesson is that the state has an important role to play, and has great responsibility. We don´t want the state to manage business. But it can be an inducer of growth and can work in harmony with society.

Read the interview below entitled “Reason with him” so as to answer questions 27 to 30:

Reason with him
Source: www.newsweek.com
22nd Sep, 2009 (Adapted)

Question (Q) 1: Margolis: When you took office, Brazil was regarded as an underachiever, and the last among the BRIC nations. Now Brazil is considered a star among emerging countries. What´s happened?

Lula: No one respects anyone who doesn´t respect themselves. And Brazil always behaved like a second-class country. We always told ourselves we were the country of the future. But we never transformed these qualities into anything concrete. In a globalized world you cannot sit still. You have to hit the road and sell your country. So we decided to make strengthening Mercosul (the South American trading bloc) a priority, and deepened our relations with Latin America in general. We prioritized trade with Africa and went into the Middle East aggressively. Our trade balance today is diversified. This helped us cushion the blow of the economic crisis.

Q2: Margolis: Has Brazil´s success in navigating the economic crisis changed investors´views?

Lula: There was no miracle. We had a strong domestic market. We had consumers who wanted to buy cars. We reduced part of the sales tax and asked the companies to offer consumers credit on affordable items. It´s the same case with refrigerators, stoves, washing machines, and with computers and the housing construction.

Q3: Margolis: What are the lessons for other countries?

Lula: The great lesson is that the state has an important role to play, and has great responsibility. We don´t want the state to manage business. But it can be an inducer of growth and can work in harmony with society.

Read the text below entitled “Taxation Trends in the European Union” so as to answer questions 24 to 26:

Taxation Trends in the European Union
Source: www.ec.europa.eu
2009 Edition (Adapted)

    This year´s edition of the Taxation Trends in the European Union appears at a time of upheaval. The effects of the global economic and financial crisis have hit the European Union (EU) with increasing force from the second half of 2008. Given that the last year for which detailed data are available is 2007, this year´s report cannot yet analyze the consequences of the recession on tax revenues. Nevertheless, the report takes stock of the tax policy measures taken by EU governments in response to the crisis up to spring 2009.
    The European Union is, taken as a whole, a high tax area. In 2007, the overall tax ratio, i.e. the sum of taxes and social security contributions in the 27 Member States amounted to 39.8% of GDP. This value is about 12 percentage points above those recorded in the United States and Japan.
    The high EU overall tax ratio is not new, dating back essentially to the last third of the 20th century. In those years, the role of the public sector became more extensive, leading to a strong upward trend in the tax ratio in the 1970s, and to a lesser extent also in the 1980s and early 1990s.