1.- Short Notes on the History of South America.

2.- Current Economic and Political Situation in Brazil:

i. re-democratisation;
ii. new constitution;
iii. reforms on taxation; social security and judiciary;
iv. macro-economic aspects;
v. the Real Plan, characteristics;

a. pillars, exchange rate and interest rate;
b. lack of fiscal adjustment;

i. the Brazilian economy in the 90`s; and
ii. the political quandary.

3.- Mercosul: Formation and Evolution:

i. The Uruguay Round of the GATT and the move towards regionalism, NAFTA, MERCOSUL and the FTAA;
ii. Objectives and first successes of Mercosul;
iii. Exclusionary trade or possible trade (59% agriculture);
iv. Distortions, shortcomings and the exchange regime;
v. The fiscal weakness in Brazil;
vi. The adverse international situation.

4.- Mercosul and the Current Crisis:

i. Investment diversion;
ii. Economic discrepancies;
iii. Currencies and exchange;
iv. Troubled sectors: sugar; automotive; paper; textiles; poultry; shoes; steel.

5.- Future risks:

i. multilateral, WTO (social dumping, multilateral agreement on investments, agriculture, services, environment, etc.);
ii. regional, FTAA (agriculture, services, etc.);
iii. international (IMF, institutional); and, but not least,
iv. local.

6.- Conclusions.