{"id":260608,"date":"2019-10-24T17:05:54","date_gmt":"2019-10-24T20:05:54","guid":{"rendered":"https:\/\/anba.com.br\/?p=260608"},"modified":"2019-10-25T12:05:16","modified_gmt":"2019-10-25T15:05:16","slug":"brazil-must-work-to-keep-attracting-investment","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/brazil-must-work-to-keep-attracting-investment\/","title":{"rendered":"Brazil must work to keep attracting investment"},"content":{"rendered":"

S\u00e3o Paulo \u2013 Brazil must do its homework in multiple aspects of its economy if it is to keep attracting foreign investment. This was the take-home point from the panels of Brazil Summit, a conference on the future of Brazil\u2019s economy held by British magazine The Economist<\/em><\/a> this Thursday (24) in S\u00e3o Paulo.<\/p>\n

Investment in infrastructure \u2013 especially mobility and sanitation \u2013, education & sustainability, and tax & social security reforms came up in several panels throughout the morning.<\/p>\n

Former Finance minister Joaquim Levy (pictured above on the big screen<\/em>) said a concerted effort must be undertaken to simplify tax procedures in the country. \u201cThis simplification work is a job of the whole society. The only way we\u2019ll achieve a more just, agile and simple country will be through a tandem effort by the judiciary, the government and the private sector,\u201d the economist said in the first panel of the day, Leading For the Long Haul \u2013 Shared Prosperity<\/em>.<\/p>\n

Levy also said the ongoing ideological battle regarding the environment does not affect the private sector. \u201cThe political noise isn\u2019t a problem. Our entrepreneurs [in agribusiness] are too mature for that,\u201d he argued, while discussing sustainable agriculture.<\/p>\n

During the same panel, CEO Marcos Lutz of private conglomerate Cosan said \u201cserious projects will find their way to capital abroad as well as domestically,\u201d and that Brazil has \u201cinfrastructure development needs.\u201d He mentioned basic sanitation as a strategic long-term investment. He also said processes for business owners must be made simpler. Lutz named privatizations, concessions and public-private partnerships as ways to get the market to finance infrastructure projects.<\/p>\n

Santander chief economist Ana Paula Vescovi concurred. \u201cInfrastructure plays a two-pronged role of inducing long-term growth and productivity. Investment in mobility leads to efficient travel, access and social wellbeing, and sanitation reduces social inequality and healthcare spending, apart from minimizing environmental impact. We can\u2019t get caught in the trap of growing and developing without looking after people,\u201d he said.<\/p>\n

\"\"<\/a>
Zeina Latif during the second panel<\/figcaption><\/figure>\n

The second panel, The Economic Outlook<\/em>, addressed tax and social security reforms. Verde Asset Management chief economist Daniel Leichsenring said a \u201ccomprehensive tax reform would lower the tax-related risks of investing in Brazil,\u201d and stressed that \u201cthe focus must be on education and human capital in the long term.\u201d<\/p>\n

XP Investimentos chief economist Zeina Latif<\/a> claimed that some specific rules and exceptions will need reviewing in order for a tax reform to come to pass. She also said the government must do some serious communication work on that end. Regarding the pension reform, Latif said \u201cit\u2019s really important to turn the page in the political agenda so we can move forward with other subjects.\u201d According to Latif, \u201csetting priorities and making wide-ranging reforms is key.\u201d<\/p>\n

The panel\u2019s moderator inquired how \u201cpolitical turmoil and noise affect business owners.\u201d Latif said she doesn\u2019t see much concern about the noise. \u201cBusiness owner confidence [in Brazil] isn\u2019t that great, but it\u2019s improving,\u201d she said. She also said investment in education must be a priority in order for skilled labor to be available.<\/p>\n

Arthur Carvalho, chief economist with Morgan Stanley Latin America, said \u201coverseas confusion breeds some distrust in foreign investment, but since Brazil is a closed-off economy, the external crisis does not impact the market that much.\u201d<\/p>\n

Hypothetically<\/strong><\/p>\n

\"\"<\/a>
The third panel covered hypothetical scenarios in global politics. On the big screen, Ricardo Sennes of Prospectiva<\/figcaption><\/figure>\n

The third panel was themed The World If\u2026<\/em>, with hypotheses about the future of the world economy and how they might affect Brazil. Oliver Wyman partner Ana Carla Costa said that although global recession could affect Brazil, \u201cwe can fix up the engines of domestic growth. I believe in a simplified tax reform, not a comprehensive one. The scenario is still one of cautious optimism, with a growth estimate of up to 2%,\u201d she said.<\/p>\n

Regarding the eventuality that Donald Trump might lose the election next year, Eurasia Group managing director for the Americas Christopher Garman said \u201cmaybe the Brazil-US agenda will be put in the backburner. Some of the gains that otherwise would be had may not come to pass, but despite the Trump-Bolsonaro connection, what we have in the agenda right now isn\u2019t that big of a change.\u201d<\/p>\n

Regarding the election scenario in Argentina, Ana Carla said the Mercosur might lose traction in case Kirchnerism makes a comeback. There are specific agreements to be reached. There\u2019s a lot of room for expanding the trade agenda. We need to do our homework,\u201d she said.<\/p>\n

As for the popular uprisings in Chile, Bolivia and Ecuador, panelists said there\u2019s a risk that the same could happen again in Brazil, but some argued that there\u2019d also be \u201cpro-government demonstrations,\u201d since society is so polarized right now. \u201cThe fuel for the rebellion is there. The reasons for so-called new middle-class discontentment \u2013 education, safety and healthcare \u2013 haven\u2019t improved since 2013,\u201d said Garman.<\/p>\n

Environment<\/strong><\/p>\n

\"\"<\/a>
Former Environment minister Marina Silva during panel on the Amazon<\/figcaption><\/figure>\n

Earth\u2019s Greatest Forest\u00a0 \u2013 A Future for Amazonia <\/em>was the fourth panel in the conference, addressing deforestation, invasion of public lands and mining in indigenous territories, and the ways in which corporations and society can work for sustainable development.<\/p>\n

WWF-Brasil<\/a> CEO Mauricio Voivodic said that in the last twelve months, Brazil\u2019s environmental image took a turn for the worse. \u201cThe Brumadinho disaster, forest fires and now the oil spill in the Northeast all take away from society, and not the government. It doesn\u2019t bode well with foreign investors. International agreements might be terminated, and there could be a boycott from foreign businesses,\u201d he said.<\/p>\n

Fama Investimentos founder Fabio Alperowitch said it\u2019s a myth that sustainable investment is less profitable. \u201cNinety percent of studies show that it\u2019s more or just as profitable, and sustainable investment is not as risky as unsustainable investment.\u201d In his opinion, although subjects like sustainability and human rights have become completely polarized, they matter to the whole of society. \u201cWe need to bring the financial market into these discussions, which are of the utmost relevance to everyone.\u201d<\/p>\n

Former Environment minister Marina Silva also sat on the panel. She mentioned a USP study according to which 70% of South America\u2019s economy depends on rainfall in the Amazon. \u201cAgribusiness can make a difference in the region, because deforestation is bad for business. We need to create certification of origin, and consumers need to demand ethics, social responsibility and respect towards indigenous populations, more than just technical and sanitary quality.\u201d<\/p>\n

Afternoon Brazil Summit panels featured Justice minister Sergio Moro and former attorney-general Raquel Dodge, among other speakers. For the full program, please refer to the event\u2019s website<\/a>. The Arab Brazilian Chamber of Commerce<\/strong><\/a>\u00a0supported the event, and its member companies got discounts. The Chamber\u2019s Marketing and Strategy director Janine Bezerra de Menezes, Market Intelligence manager Ana Becker and director diretor Daniel Hannun were in attendance.<\/p>\n

Translated by Gabriel Pomerancblum<\/strong><\/p>\n

 <\/p>\n

Bruna Garcia\/ANBA<\/div>\n
Bruna Garcia\/ANBA<\/div>\n
Bruna Garcia\/ANBA<\/div>\n
Bruna Garcia\/ANBA<\/div>\n","protected":false},"excerpt":{"rendered":"

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