It is a highly diversified economy with wide variations in levels of development.
Most large industry is concentrated in the south and southeast.
The northeast is traditionally the poorest part of Brazil, but it is beginning to attract new investment. Brazil successfully shifted from an essentially, fixed exchange rate regime to a floating regime in January 1999. Congress has approved several amendments to open the economy to greater private sector participation, including foreign investors. Some measures have been adopted to address large deficits in Brazil's pension programs, but more remains to be done. Despite fiscal austerity, the administration has acknowledged the need to invest more in education and health to redress social inequity.