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Archive for the ‘Brazil Economy’ Category

Strange horizon for immigration in Brazil

Posted by Nadiva Olivier on February 24, 2012

A question placed at is something brand new inside Brazilian Culture: rejection to immigrants. The pool is about reducing or increasing demands for foreigners ? people that want to come to live in Brazil.

The questions and percentage of answers are like that:

– Yes (reducing demands for foreigners) – 17,50%

– No (that means: do not reduce them) – 82,50% –

Date: January 31st, 2012.

This is an awkward situation because one of the facts that stimulate people to come to Brazil is the sweetness of Brazilians. The other reason, of course, is the situation we are living : not an economic paradise but a scenario where the economy is dynamic, the Government is dealing well with their political, economical and other issues and industry is answering in a good mood to challenges.

What are these bad emotions made of? What kind of protection or whatever is arising in our cultural and social horizon? What is the real reason for that?

While we don´t know how to answer, it is important to notice that this window is just starting to close. Hurry up with your initiative to establish a business here!

Note: This post is from Jan31st2012. Today – Febr5th, 2012 – at UOL portal (link below) it was published a report on immigration to Brazil, with emphasis on immigration from neighboring countries to Brazil. However, this is just the beggining. The thing is that Brazil will suffer a big shock of knowledge with the immigration that is just starting and will increase alot – from China, Europe and the United States.


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Look the earth from the sky…

Posted by Nadiva Olivier on February 22, 2010

Leonard Boff, a very important Brazilian opinion maker and also a theologist, addressed a letter do Workers Party (PT) which meeting was held recently. He remembered that the election campaign officially will begin in a moment and there is a risk that we sank in a childish discussion between Lula and last President – Fernando Henrique Cardoso. His concern is that the great issue is far away from these por comparisons and is related actually to the environment.

For both contenders when the issue is development and nature, the paradigm is the same, and thew will probably serve to distract voters from real problems that Brazil and the world will face.

A serious electoral competition, the height of the planetary phase of humanity and the importance of Brazil in it, should be the issues and also the future to be built collectively. Who has the best design to our people and their relationship to the nascent global society? Who is proposing an essential contribution to the dramatic scenarios looming on the horizon?

Boff made three suggestions to the Workers Party. He first wrote on the motto of the national meeting – The Great Transformation. This is the same name of a book written by Karl Polanyi (1944) in which he shows how the liberalism turned everything into a commodity. Is this the Great Transformation thought by PT? To be something else, the party must take seriously this irrefutable fact: The Earth has changed because we are already in global warming. The wheel can no longer be stopped, only diminish its speed. If the thermometer of the Earth rises to more than two degrees Celsius over the coming decades, as provided by the best research center, will face Brazil and tribulation in the world of desolation. Many PAC projects (Brasil´s Government programs to accelerate progress) may be canceled. If they do not include climate issues in their program they will show lack of practical intelligence and historical irresponsibility.

Another equally disturbing issue is the unsustainability of the system Earth. As of September 23, 2008 we learned that the Earth has exceeded 30% in its ability to restore the goods and services necessary for life. We are consuming today what we will need tomorrow. If we universalize the consumption level of the middle classes worldwide, including the eighty million Brazilians, we would now have three land equal to this. This model of growth, as it seems behind the PAC, shows its viability in the medium and long term. Not that we stop producing. We produce but within a different paradigm of less predator-Earth system, with an agreement regarding the supportability of each ecosystem and a wide social inclusion, designed with an ethic of care, universal responsibility and the pursuit of the good life for all.

Finally, the Workers Party (PT) must raise the fact that Brazil is certainly the key to the balance of the planet. He is the power of water, the holder of the largest forests, large dioxide sequestration of carbon and regulatory climate, with great biodiversity and vast arable land and can be a table set for the famines of the world, with unmatched ability to generate alternative energy and a highly creative people, who did a test of civilization of the most significant, non-imperialist, and with an enchanting view of the world that allows you, in the midst of contradictions, celebrate their feasts, cheering for their teams and dance at carnivals… crucial characteristics to give a human face to globalization in progress.

Great talk! Will PT listen to it?

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An environmental vision.

Posted by Nadiva Olivier on September 26, 2009

American Hardwood Export Council, an organization that represents “companies and trade associations engaged in the export of a full range of U.S. hardwood products, including – lumber, veneer, plywood, flooring, moulding and dimension materials” – is doing an aggressive effort toward Brazilian furniture industry. The environmental legislation of the country (in force for 70 years) had a consequence: the expansion of forest resources in the U.S. has been greater than its use for 50 years. And they do not have large forested areas. A few years ago, businessman Lawrence Castelan, Florense Furniture (from the south of Brazil) said that he was importing three types of wood from the United States. This is something that is not recent. It is remarkable that Americans export quality wood for emerging countries….

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News on Brazil GNP

Posted by Nadiva Olivier on September 9, 2009

sao paulo buildingsThe Brazilian Government will announce the GNP results for 2nd quarter next week. Our economy grew something around 1.8 and 2.0. Brazil has hired the P.R. consultant Fleischman Hillard (NY) – one of the most expensive in the world – to invite national and international journalists, analysts and other VIPs to discuss our perspectives with Brazilian Minister, Guido Mantega. The meeting will be on Monday.

The figures on our GNP indicate the economy is healthy and can grow, although it will be a slow growth, for several reasons:

1 – Despite 2nd quarter figures are higher than last quarter, when compared to same period in 2008 shows negative performance.

2 – Investments (factories, infrastructure, and so on) that had been very high for last 3 years, fell dramatically since the 2nd half of 2008. Brazil is supposed to have lost something like 150 billion reais in investments that did not come here. It means less capacity for growth.

3 – The Government plans heavy investment in infrastructure that includes:

a) 34 billion reais for “trem bala” – a straight railroad line between Sao Paulo and Rio, with tunnels, bridges and so on, to be built in less than 4 years (a world record), which environmental licenses have not been obtained at present;

b) oil – about 100 billion reais are planned to buy equipment to the Petrobras project,

and so on

When talking about infrastructure investments we are talking about trillions of dollars that the Government does not have.

Of course it will be paid by us, with taxes increase.

3 – Central Bank kept interest rate to 8.75 (interest rate among banks). It is the smallest last years. The rate – less expected inflation – is around 4.8 – a record in Brazilian standards despite very high when you compare with other countries (around zero or 1%). The new level indicates that Brazil is on the road to lower levels, following international trends. Brazil has come a long way toward stability but there is still much to do.

The good news is that Sao Paulo industry (almost half of Brazilian industry) begins to show recovery.

The bad news is that the Government has increased the public debt that now amounts to almost 40% of GNP. All the figures are growing in the Government expenditures – salaries, etc.

It means that we can expect new taxes. This is bad because our tax burden is very high – 36/37% and tax on wages is also high – 50% – while in other countries is 10% / 15%.

Last Worldwide bank ranking listed Brazil in 145th position among 181 countries in the tax field. And last but not least, we have the worst tax system you can imagine. Companies go crazy hiring people and investing in IT to face the strong demand of control and routines in the tax system.

In the balance, you can see that we are not competitive and we can expect low growth… but Brazil can always surprise you! Fleischman Hillard is working very hard on that. You can expect good news on Brazil this week, starting with the launch of Forum Mundial Report, today, indicating that our competitiveness is much better: in a sample of 133 countries we are now in the 56th position!

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Single tax, an old ideal in Brazil.

Posted by Nadiva Olivier on July 18, 2009

money-treeGlobalization is eroding the efficiency of conventional taxes, such as value added taxes. At the same time, a new form of taxation, levied on bank transactions, was used in Brazil (1993-2007) and proved to be evasion-proof, more efficient and less costly than orthodox tax models.

The significant revenue-raising capacity of bank transactions taxation revived the centuries old ideal of the single tax.

The book of Marcos Cintra, a Brazilian that is a full-professor and vice-president of the Getulio Vargas Foundation in Brazil, just launched in USA, carries out a qualitative and quantitative in-depth comparison of the efficiency, equity and compliance costs of a bank transactions tax relative to orthodox tax systems, and opens new perspectives for the use of modern banking technology in tax reform across the world.

Take a look at the Book at Amazon website: Bank transactions: pathway to single tax ideal.

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