Liberal Arts Services

Economic Shifts: The Case of Brazil

Nanotechnology will have far-reaching effects on various kinds of industries, resulting in massive economic changes. Industries that can successfully incorporate this technology in their products, such as the computing, pharmaceutical, medical, chemical, and automotive industries, will see tremendous growth. And certain sectors, such as industries depending on fossil fuels, may eventually diminish, as alternative industries, such as those focusing on hydrogen and solar energy generation, take their place. In addition to its direct effects on specific industries, nanotechnology can serve a less direct facilitative role for industry change, such as the use of inexpensive computers for efficient information transfer by telecommunications companies.

The introduction of a single technological innovation can have transformative effects at many levels of a nation’s economy. In Brazil around 1900, the building of railroads was central to the nation’s economic growth, affecting the economy at various levels. Perhaps most obviously, it provided the inexpensive transport of passengers and freight for the growth and integration of the economy. Smaller sectors including mule trains, carts, and stagecoaches were effectively replaced. It will be important to consider what specific services and goods will similarly no longer be needed as nanotechnology-based services and goods take their place.

Railroads in Brazil also had other effects on the economy. For instance, since goods could be transported across great distances, agricultural producers were no longer protected from the entry of distant producers into their market domain. The government imposed tariffs to protect local producers but their uneven application resulted in great class inequalities. Policies that are meant to protect businesses from the sudden economic effects of nanotechnology might similarly have unexpected and adverse long-term consequences.

The construction of railroads also reduced the nation’s dependency on slave labor while increasing opportunities for immigrants. Brazil’s railroads, built largely by slaves, were developed primarily in southern areas, creating regional differences of opinion about the institution of slavery. As slaves were traded to the south, a larger number of immigrants facilitated economic growth in the north, and regional disparities of wealth resulted. In addition, a new class of professionals arose, whose role it was to monitor the new railroad industry. The growth of nanotechnology may lead to shifts in populations performing new forms of labor. Economic growth and stagnation for different areas will be an expected consequence. Likewise, wholly new types of laborers and professionals will likely emerge to supply the needs created by this new technology.