Shaping a New Development Cycle
• Ricardo Villela Marino• Aécio Neves da Cunha• Marcelo Bahia Odebrecht •Luis Guillermo Plata Chaired by • Moisés Naím
Thursday 16 April16.15-17.30
The World Economic Forum on Latin America ended on a note of optimism in the midst of the global economic crisis. The chairman of the closing session on “Shaping a New Development Cycle”, Moisés Naím, Editor-in-Chief, Foreign Policy Magazine, USA; Co-Chair, Global Agenda Council on Illicit Trade, revealed that a declaration was sent to the heads of state attending the Summit of the Americas tomorrow in Port of Spain, Trinidad and Tobago.
The meeting ended on calls for “stronger collaboration” between private and public sector initiatives to address the global economic turbulence. The declaration envisions a new development cycle for the region, with governments, business and communities working more closely together. To address the current economic crisis, signatories call for efforts of such cooperation to be based on a solid international financial architecture, sound educational opportunities, clean technologies, sustainable use of natural resources, diversified sources of energy and an equitable socio-economic setting. “We need a new dawn in international cooperation,” the declaration says. It also calls for international financial institutions to support counter-cyclical policies, “with special attention to the most vulnerable countries”.
The declaration was sent to José Miguel Insulza, Secretary-General, Organization of American States (OAS), Washington DC, before he addressed the closing plenary of the World Economic Forum on Latin America via video link. Insulza reflected on the great expectations of Latin American countries towards the new administration of US President Barack Obama, “especially when he says that he wants very much to do policies with us and not policies for us,” he said.
“Latin American participants (in the meeting) feel they are able to face the crisis in better condition than any time in the past,” said Ricardo Villela Marino, Chief Executive Officer, Latin America, Banco Itaú Unibanco, Brazil; Young Global Leader; Co-Chair of the World Economic Forum on Latin America. He explained that several elements required for a new sustainable development cycle are already available in the majority of Latin American countries. He cited the healthy financial and banking system; the abundance of natural resources; the high reliance on clean and renewable energy; the favourable balance between natural resources and population, in contrast to other parts of the world; the consolidation of democratic institutions; and the fact that macroeconomic fundamentals resisted rather well in spite of the impact of the current crisis. “It is reasonable to expect Latin America of being capable of weathering the storm better than in the past”. However, the region now has to address a different kind of debt: “a social debt”, he said.
Marcelo Bahia Odebrecht, Chief Executive Officer, Engineering and Construction, Odebrecht Brazil, and President, Odebrecht Group, Brazil; Co-Chair of the World Economic Forum on Latin America; Young Global Leader, called for new public-private partnerships in the economic and social domains to curb poverty and improve income distribution.
At the end of the session, Naim concluded that the mood has definitely changed since the Annual Meeting in Davos three months ago. “We are no longer in a free fall; we are no longer in this calamitous mood we all perceived in Davos.” He said that the next World Economic Forum on Latin America will take place in Carthagena, Colombia, in 2010.
Saturday, April 18, 2009
FORUM DE RIO - POLITICAS PARA O DESENVOLVIMENTO
Brazil: Policies for Productive Development
• Fernando Dantas Alves Filho • Sérgio de Oliveira Cabral• Ricardo Hausmann • Aloizio Mercadante • Mark Spelman Moderated by • Felipe Larraín Bascuñán
Thursday 16 April09.00-10.45
Felipe Larraín Bascuñán, Professor of Economics, Catholic University of Chile, Chile, asked panellists to focus on the reforms needed to unleash the region’s potential over the long term.
Aloizio Mercadante, Federal Senator of Brazil, noted that Brazil has shown substantial economic growth and significant poverty reduction, and has increased its middle class. The recession is hurting the country, yet Brazil seems to be in relatively good shape to resist the international storm. Brazil has the most diversified export platform of Latin America. Among the challenges Mercadante cited was the tax burden, suggesting that tax reform is crucial, including tax exemption for a number of sectors to encourage innovation and growth. He stressed the importance of maintaining a healthy ratio between GDP and public debt and asserted that responsible management of public funds is imperative. “Tax exemption must be instituted considering the reduction of public debt that has been in progress over the past fiver years,” Mercadante said. He highlighted the top five impediments to growth in Brazil: excessive tax regulations, inadequate infrastructure, restrictive labour regulations and inefficient government bureaucracy.
Mark Spelman, Global Head, Strategy, Accenture, United Kingdom, highlighted the importance of looking at long-term strategies for the competitiveness of Brazil. He said that a focus is needed on interconnectedness with other parts of the world, systematic innovation and long-term goals with “intermediate stepping stones.” Among Brazil’s advantages he cited a natural spirit of entrepreneurship and asked how it could be fostered and accelerated. Spelman also said that the country’s strength lies in clean energy and food production, and agriculture will be important in the future.
Sérgio de Oliveira Cabral, Governor of Rio de Janeiro, Brazil, was asked whether the tax structure in Brazil is an obstacle to development. Cabral admitted that the tax rate in Brazil is very high and that reform is needed. “We have a huge sector of informal workers due to the cost of formal jobs,” he said. Cabral stressed that Brazil’s strong commitment to democracy – the strongest among the BRIC countries – is an excellent basis for stability and sustainable growth. “Democracy has a real interface with business and the economy,” he added. Cabral also suggested that increased public-private partnerships are key for development.
Ricardo Hausmann, Director, Center for International Development, John F. Kennedy School of Government, Harvard University, USA, and Co-Chair, Global Agenda Council on Financial Empowerment, pointed out that Brazil has high tax and interest rates, low public investment, a complicated tax structure, poor education indicators, weak infrastructure and poor regulatory indicators compared with the rest of the developing world. Yet, he said, “the appetite for investment indicates that in spite of the poor environment, prospects are good.” Hausmann reassured: “A lot of what it takes to be a successful country is already in place.” Among the country’s strong points are good business models and innovation in technology and agriculture.
Fernando Dantas Alves Filho, Territory Senior Partner, Brazil, PricewaterhouseCoopers, Brazil, noted a number of obstacles to development in the business sector in Brazil but mentioned that, “despite its problems, Brazil has competitive advantages over other BRIC countries, like a consolidated democracy, lack of natural disasters and border conflicts, and a commitment to sustainability.” Brazil has the capacity to double the area already used for agriculture.
Key outcomes
• Despite problems with its tax structure, excessive regulation and high interest rates, Brazil attracts a good deal of foreign investment• Tax reform is necessary for productive development to be viable• Brazil is in a healthy financial position to weather the global economic crisis• The agriculture, technology and energy sectors represent potentials for further development in the country
• Fernando Dantas Alves Filho • Sérgio de Oliveira Cabral• Ricardo Hausmann • Aloizio Mercadante • Mark Spelman Moderated by • Felipe Larraín Bascuñán
Thursday 16 April09.00-10.45
Felipe Larraín Bascuñán, Professor of Economics, Catholic University of Chile, Chile, asked panellists to focus on the reforms needed to unleash the region’s potential over the long term.
Aloizio Mercadante, Federal Senator of Brazil, noted that Brazil has shown substantial economic growth and significant poverty reduction, and has increased its middle class. The recession is hurting the country, yet Brazil seems to be in relatively good shape to resist the international storm. Brazil has the most diversified export platform of Latin America. Among the challenges Mercadante cited was the tax burden, suggesting that tax reform is crucial, including tax exemption for a number of sectors to encourage innovation and growth. He stressed the importance of maintaining a healthy ratio between GDP and public debt and asserted that responsible management of public funds is imperative. “Tax exemption must be instituted considering the reduction of public debt that has been in progress over the past fiver years,” Mercadante said. He highlighted the top five impediments to growth in Brazil: excessive tax regulations, inadequate infrastructure, restrictive labour regulations and inefficient government bureaucracy.
Mark Spelman, Global Head, Strategy, Accenture, United Kingdom, highlighted the importance of looking at long-term strategies for the competitiveness of Brazil. He said that a focus is needed on interconnectedness with other parts of the world, systematic innovation and long-term goals with “intermediate stepping stones.” Among Brazil’s advantages he cited a natural spirit of entrepreneurship and asked how it could be fostered and accelerated. Spelman also said that the country’s strength lies in clean energy and food production, and agriculture will be important in the future.
Sérgio de Oliveira Cabral, Governor of Rio de Janeiro, Brazil, was asked whether the tax structure in Brazil is an obstacle to development. Cabral admitted that the tax rate in Brazil is very high and that reform is needed. “We have a huge sector of informal workers due to the cost of formal jobs,” he said. Cabral stressed that Brazil’s strong commitment to democracy – the strongest among the BRIC countries – is an excellent basis for stability and sustainable growth. “Democracy has a real interface with business and the economy,” he added. Cabral also suggested that increased public-private partnerships are key for development.
Ricardo Hausmann, Director, Center for International Development, John F. Kennedy School of Government, Harvard University, USA, and Co-Chair, Global Agenda Council on Financial Empowerment, pointed out that Brazil has high tax and interest rates, low public investment, a complicated tax structure, poor education indicators, weak infrastructure and poor regulatory indicators compared with the rest of the developing world. Yet, he said, “the appetite for investment indicates that in spite of the poor environment, prospects are good.” Hausmann reassured: “A lot of what it takes to be a successful country is already in place.” Among the country’s strong points are good business models and innovation in technology and agriculture.
Fernando Dantas Alves Filho, Territory Senior Partner, Brazil, PricewaterhouseCoopers, Brazil, noted a number of obstacles to development in the business sector in Brazil but mentioned that, “despite its problems, Brazil has competitive advantages over other BRIC countries, like a consolidated democracy, lack of natural disasters and border conflicts, and a commitment to sustainability.” Brazil has the capacity to double the area already used for agriculture.
Key outcomes
• Despite problems with its tax structure, excessive regulation and high interest rates, Brazil attracts a good deal of foreign investment• Tax reform is necessary for productive development to be viable• Brazil is in a healthy financial position to weather the global economic crisis• The agriculture, technology and energy sectors represent potentials for further development in the country
FORUM DE LATINOAMERICA 2009 NO RIO DE 14 a 16 DE ABRIL
Leaders in Rio de Janeiro for World Economic Forum on Latin America 2009 Over 500 leaders from business, government and civil society are in Rio de Janeiro, Brazil, to take part in one of the most important meetings on Latin America convened by the World Economic Forum. The meeting, which runs from 14-16 April, is being held under the theme “Implications of the Global Economic Crisis for Latin America” and will address regional economic recovery linked with sustainable development
FORUM DO RIO - LUIS INACIO LULA DA SILVA
Luiz Inácio Lula da Silva • Alvaro Uribe Velez
Welcoming Remarks by • Klaus Schwab
Wednesday 15 April11.00-12.15
Klaus Schwab, Founder and Executive Chairman, World Economic Forum, welcomed the distinguished guests, and noted that participation in this year’s Forum is high despite the tough economic climate. The record engagement is a sign that participants understand the importance and benefits of the meeting, Schwab said. “Record participation shows the importance of Latin America and the entrepreneurial and forward-looking mentality and spirit of people who look beyond the crisis and see opportunities,” he pointed out.
Luiz Inácio Lula da Silva, President of Brazil, underlined the gravity of the current crisis. However, he said that Brazil is better placed that most countries to emerge intact from the downturn. Yet, he told participants that no one is immune.
“I said it at the G20 meeting and I’ll say it again – this crisis is real and serious. It started in the financial sector and it reached industry. It started in the US and is now in every country. What we need is to stem it so we can think about growing again,” Lula said. “Brazil was the last country to be hit by the crisis and it will be the first country to come out of the crisis and it will come out of this crisis stronger.”
Lula said he was keen to participate in a revamped IMF and said he was proud that Brazil will give money to an institution rather than the other way around, as in the past. “I spent 20 years of my life carrying a banner and shouting ‘Down with the IMF’ on streets, at factory gates, in front of crowds,” said Lula, a former union leader. “But a few days ago, I called my finance minister and said: ‘We are going to lend money to the IMF. We are no longer debtors; we want to be creditors’.”
However, Lula said: “We want to lend the IMF money with a condition that the money can help the economies of poorer countries and developing countries,” adding that profound changes are necessary. “The IMF needs to change the way it behaves. It needs to be a multilateral financing institution with democratic rules for participating countries. No one is better than anyone else because they give a dollar more. But we need to go further than emergency measures, transforming the paradigms that took the world economy to the edge of the precipice. We cannot postpone profound and structural solutions.”
President Alvaro Uribe Velez of Colombia agreed that Lula’s economic stewardship has helped Brazil and serves as an example to the rest of the continent. He said Colombia has made great strides in gaining the trust of Colombians and outside investors and that trust will be vital when the economic crisis ends. “When the crisis is over, investment will be made in those countries where there is deeper trust,” Uribe pointed out.
Uribe’s confidence rests on the gains made in his energetic fight against drug traffickers, guerrilla movements and paramilitaries that have blighted the country. Uribe noted that the homicide rate has been cut in half, the number of kidnappings has fallen from more than 3,000 a year to 194 last year, and the number of municipalities destroyed by bombs in the last four years is down from 200 in the years before his government took office. “We have demobilized 35,000 members of paramilitary groups and 15,000 guerrillas and although 3,000 have come into force again, 2,000 of them have been defeated or taken prisoner,” Uribe explained. “We know there is a lot to do, but we struggle every day.”
The meeting closed with the two presidents looking forward to the Summit of the Americas in Trinidad and Tobago on Friday. Lula said he hoped the summit would serve as a forum for resolving regional issues, while Uribe said he hoped it would foment regional integration.
Welcoming Remarks by • Klaus Schwab
Wednesday 15 April11.00-12.15
Klaus Schwab, Founder and Executive Chairman, World Economic Forum, welcomed the distinguished guests, and noted that participation in this year’s Forum is high despite the tough economic climate. The record engagement is a sign that participants understand the importance and benefits of the meeting, Schwab said. “Record participation shows the importance of Latin America and the entrepreneurial and forward-looking mentality and spirit of people who look beyond the crisis and see opportunities,” he pointed out.
Luiz Inácio Lula da Silva, President of Brazil, underlined the gravity of the current crisis. However, he said that Brazil is better placed that most countries to emerge intact from the downturn. Yet, he told participants that no one is immune.
“I said it at the G20 meeting and I’ll say it again – this crisis is real and serious. It started in the financial sector and it reached industry. It started in the US and is now in every country. What we need is to stem it so we can think about growing again,” Lula said. “Brazil was the last country to be hit by the crisis and it will be the first country to come out of the crisis and it will come out of this crisis stronger.”
Lula said he was keen to participate in a revamped IMF and said he was proud that Brazil will give money to an institution rather than the other way around, as in the past. “I spent 20 years of my life carrying a banner and shouting ‘Down with the IMF’ on streets, at factory gates, in front of crowds,” said Lula, a former union leader. “But a few days ago, I called my finance minister and said: ‘We are going to lend money to the IMF. We are no longer debtors; we want to be creditors’.”
However, Lula said: “We want to lend the IMF money with a condition that the money can help the economies of poorer countries and developing countries,” adding that profound changes are necessary. “The IMF needs to change the way it behaves. It needs to be a multilateral financing institution with democratic rules for participating countries. No one is better than anyone else because they give a dollar more. But we need to go further than emergency measures, transforming the paradigms that took the world economy to the edge of the precipice. We cannot postpone profound and structural solutions.”
President Alvaro Uribe Velez of Colombia agreed that Lula’s economic stewardship has helped Brazil and serves as an example to the rest of the continent. He said Colombia has made great strides in gaining the trust of Colombians and outside investors and that trust will be vital when the economic crisis ends. “When the crisis is over, investment will be made in those countries where there is deeper trust,” Uribe pointed out.
Uribe’s confidence rests on the gains made in his energetic fight against drug traffickers, guerrilla movements and paramilitaries that have blighted the country. Uribe noted that the homicide rate has been cut in half, the number of kidnappings has fallen from more than 3,000 a year to 194 last year, and the number of municipalities destroyed by bombs in the last four years is down from 200 in the years before his government took office. “We have demobilized 35,000 members of paramilitary groups and 15,000 guerrillas and although 3,000 have come into force again, 2,000 of them have been defeated or taken prisoner,” Uribe explained. “We know there is a lot to do, but we struggle every day.”
The meeting closed with the two presidents looking forward to the Summit of the Americas in Trinidad and Tobago on Friday. Lula said he hoped the summit would serve as a forum for resolving regional issues, while Uribe said he hoped it would foment regional integration.
FORUM ECONOMICO DE RIO
Henrique de Campos Meirelles• Pedro Moreira Salles• Paulo AntonioSkaf • Wednesday 15 April14.30-15.15
The moderator, Emilio Lozoya Austin, Director, Head of Latin America, World Economic Forum, highlighted the timing of the 2009 World Economic Forum on Latin America, which is taking place between the G20 summit in London at the beginning of the month and on the eve of the Summit of the Americas, to take place at the end of the week in Trinidad and Tobago. He announced that a declaration from the Forum will be addressed to the participants at the Summit of the Americas.
• “It seems that, relative to other parts of the world, Latin America is affected in a different way than in the past,” said Lozoya Austin. Henrique de Campos Meirelles, Governor of the Central Bank of Brazil, also highlighted such differences. “During past crises, Brazil took a lot of time to recover and the crisis extended for a long period of time,” he said. Today, in spite of the seriousness of the current global recession, he argued that Brazil will likely grow above the world average, and will probably emerge sooner from this crisis than many other countries. He added that, even though the future still looks uncertain, recovery may already be underway in several sectors, including the automotive industry and retailing.
• However, Brazil may not avoid recession, according to Paulo Antonio Skaf, President, Federação das Industrias do Estado de São Paulo (FIESP), Brazil. He expects Brazil’s GDP to contract between 1% and 1.5% in 2009 due to the prolonged credit crunch. He said the Central Bank of Brazil has taken some measures to boost liquidity, but it has not been enough to revive credit. “You can have liquidity without credit. You can have money in the banking system, but it does not mean it necessarily reaches the companies’ coffers,” he said. Skaf called for a steep cut in base interest rates, which would put real interest rates towards 3% (annual), while the current Selic rate is at 11.25% (with inflation at around 4.5%). Meirelles said that the trend is already a declining one, and that the Central Bank needs to maintain a sense of balance. He emphasized that it is “the first time in decades that the Central Bank can pursue an anti-cyclical monetary policy.”
• A key element of the resilience of the Brazilian economy is the strength of its financial system. “The Brazilian banking system is well prepared to come back to the market once this [crisis] process is over, which we imagine will happen probably during the next 12 to 18 months,” said Pedro Moreira Salles, Chairman of the Board, Banco Itaú Unibanco, Brazil. • Countries with strong domestic consumer markets are in a better position to recover than those depending on exports. Slawomir Skrzypek, President of the National Bank of Poland (NBP), said that consumption is the main driver to keep GDP growth in his country, which he forecast to reach around 1% this year. Brazil also relies on its large domestic market of 190 million consumers to fuel economic activity.
• Skrzypek reflected on 20 years of change in Eastern Europe since the fall of the Berlin Wall. “The labour market in Poland is now much more flexible than in some other European countries. It is a good point from which to recover when the economy gets back on the path of sustainable growth,” he said.
The moderator, Emilio Lozoya Austin, Director, Head of Latin America, World Economic Forum, highlighted the timing of the 2009 World Economic Forum on Latin America, which is taking place between the G20 summit in London at the beginning of the month and on the eve of the Summit of the Americas, to take place at the end of the week in Trinidad and Tobago. He announced that a declaration from the Forum will be addressed to the participants at the Summit of the Americas.
• “It seems that, relative to other parts of the world, Latin America is affected in a different way than in the past,” said Lozoya Austin. Henrique de Campos Meirelles, Governor of the Central Bank of Brazil, also highlighted such differences. “During past crises, Brazil took a lot of time to recover and the crisis extended for a long period of time,” he said. Today, in spite of the seriousness of the current global recession, he argued that Brazil will likely grow above the world average, and will probably emerge sooner from this crisis than many other countries. He added that, even though the future still looks uncertain, recovery may already be underway in several sectors, including the automotive industry and retailing.
• However, Brazil may not avoid recession, according to Paulo Antonio Skaf, President, Federação das Industrias do Estado de São Paulo (FIESP), Brazil. He expects Brazil’s GDP to contract between 1% and 1.5% in 2009 due to the prolonged credit crunch. He said the Central Bank of Brazil has taken some measures to boost liquidity, but it has not been enough to revive credit. “You can have liquidity without credit. You can have money in the banking system, but it does not mean it necessarily reaches the companies’ coffers,” he said. Skaf called for a steep cut in base interest rates, which would put real interest rates towards 3% (annual), while the current Selic rate is at 11.25% (with inflation at around 4.5%). Meirelles said that the trend is already a declining one, and that the Central Bank needs to maintain a sense of balance. He emphasized that it is “the first time in decades that the Central Bank can pursue an anti-cyclical monetary policy.”
• A key element of the resilience of the Brazilian economy is the strength of its financial system. “The Brazilian banking system is well prepared to come back to the market once this [crisis] process is over, which we imagine will happen probably during the next 12 to 18 months,” said Pedro Moreira Salles, Chairman of the Board, Banco Itaú Unibanco, Brazil. • Countries with strong domestic consumer markets are in a better position to recover than those depending on exports. Slawomir Skrzypek, President of the National Bank of Poland (NBP), said that consumption is the main driver to keep GDP growth in his country, which he forecast to reach around 1% this year. Brazil also relies on its large domestic market of 190 million consumers to fuel economic activity.
• Skrzypek reflected on 20 years of change in Eastern Europe since the fall of the Berlin Wall. “The labour market in Poland is now much more flexible than in some other European countries. It is a good point from which to recover when the economy gets back on the path of sustainable growth,” he said.
Sunday, April 12, 2009
FERIA INTERNACIONA DE LA INDUSTRIA ELECTL
FIEE Elétrica
25ª Feira Internacional da Indústria Elétrica, Energia e Automação
1 a 5 de junho de 2009
Feira Setorial / Internacional / Bienal
Linhas de Produtos e/ou Serviços:
equipamentos para geração, transmissão e distribuição, equipamentos e insumos
para GTD, componentes elétricos, materiais para instalações elétricas, instrumentação
elétrica e automação, empresas concessionárias, etc. Com cerca de 750 expositores,
será aberto(a) a empresários das 13h às 20h.
Promoção: Reed Exhibitions Alcântara Machado S/A.
25ª Feira Internacional da Indústria Elétrica, Energia e Automação
1 a 5 de junho de 2009
Feira Setorial / Internacional / Bienal
Linhas de Produtos e/ou Serviços:
equipamentos para geração, transmissão e distribuição, equipamentos e insumos
para GTD, componentes elétricos, materiais para instalações elétricas, instrumentação
elétrica e automação, empresas concessionárias, etc. Com cerca de 750 expositores,
será aberto(a) a empresários das 13h às 20h.
Promoção: Reed Exhibitions Alcântara Machado S/A.
FERIA INTERNACIONAL DE TECNOLOGIA PARA LA PRODUCCION DE ETANOL
BRAZIL ETHANOL TRADE SHOW
I Feira Internacional de Tecnologia para a Produção de Etanol
1 a 3 de junho de 2009
Feira Setorial / Internacional / Bienal
Linhas de Produtos e/ou Serviços:
máquinas, equipamentos e serviços para a agroindústria sucroalcooleira. Com cerca
de 80 expositores, será aberto(a) a empresários das 10h às 20h.
Promoção: Multiplus Produções e Empreendimentos Ltda.
I Feira Internacional de Tecnologia para a Produção de Etanol
1 a 3 de junho de 2009
Feira Setorial / Internacional / Bienal
Linhas de Produtos e/ou Serviços:
máquinas, equipamentos e serviços para a agroindústria sucroalcooleira. Com cerca
de 80 expositores, será aberto(a) a empresários das 10h às 20h.
Promoção: Multiplus Produções e Empreendimentos Ltda.
Subscribe to:
Posts (Atom)