Subject line: The Need for Higher Education in BrazilThis memo is divided into four sections. The first three sections provide information on the current economic and educational landscape in Brazil and opportunities for market penetration. The last section is unfortunately limited given that Laureate is a private company, but we have included a cost analysis created by our analysts. Section I: Introduction Difficult Roads Ahead for Brazil: Brazil's prosperity in recent years has created a thriving middle class. For a long time, Brazil grew well above 4% (graph 1). However, expectations of poor ratings ahead (modest GDP growth) coupled with high inflation have significantly reduced growth expectations. Thus, whatever efforts are made to bring inflation back to normal levels, it is not reasonable to expect the government to reduce its spending, tax exemptions and other subsidies to the sector in the near future. of education. Given that investing more and establishing new infrastructure is timely and costly, a government under clear budgetary constraints will not be able to offer much flexibility to the education system. Providing this economic flexibility to the education system would be cutting to the bone when what this country really needs is its brawn and brains. For a country struggling to graduate from middle-income status, the lack of flexibility and the enormous need for education appear to be at two ends of the table. The question then becomes, how will education improve if the government's priorities are more short term than long term? Along with the emergence of a strong middle class, the need for quality...... middle of paper ......b.ebscohost.com/ehost/detail?sid=57ffb020-9399-4554-a80a -651355aa0abf %40sessionmgr111&vid=1&hid=121&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRlSpence, Janet T. "Education and Success." PsycNET. Np, and Web. May 1, 2014. .Springer. “Private and social returns to higher education: some new cross-sectional evidence.” Private returns and social returns from higher education: some new cross-sectional data - Springer. Np, and Web. May 1, 2014. .Unesco. “Unesco FGV Global Education.” . Np, and Web. May 1, 2014. Vasconcelos, JR and MA Oliveira, (2006). “Analysis of the economic activity matrix of interesting trade in Brazil”, IPEA, Text for discussion 1159.