Will Brazil Bite the Oil Apple?

"'God is Brazilian,' Brazilian President Luiz Inacio Lula da Silva said Tuesday in relation to his government's announcement earlier this month that massive new oil reserves had been discovered offshore"

Not necessarily. Economists have found that having large amounts of natural resources can actually make a country poorer. In poor countries governments usually control access to natural resources. So having lots of natural resources makes politicians more powerful. And this can slow economic growth.

Satan tested Adam with an apple, and Adam failed to resist temptation. Huge oil revenues will present a tremendous temptation to Brazilian politicians to enrich themselves and their supporters and so increase the already bloated Brazilian state. Plus with high oil revenue, Brazilian politicians won't feel as urgent a need to reform their economy.