Brazil almost has a Pirate government already:
It looks like Brazil may be the country to watch if you’re interested in much more consumer-friendly copyright laws. As that country goes through a copyright reform process, among the proposals is one that would create fines not just for infringing, but also for hindering fair use and the public domain. Also, there is a big push underway to legalize file sharing in exchange for a small levy on your broadband connection. Brazil may be doing it this way because of the massive success that the Brazilian musical genre technobrega has had by embracing file sharing as a way to promote new works.
One to watch, indeed.