A manual for Brazil's growth: 10 relevant themes

Empresário Jorge Gerdau Coordenador da Ação Empresarial

For the first time in these last eight years, 47 consecutive editions, the article "Point of View" does not reflect nor is signed by only one person. The text mentioned below represents the opinion of the AÇÃO EMPRESARIAL (ORGANIZATIONAL ACTION) – a group that started its activities in 1993 to discuss and propose measures that may result in improved conditions for the Brazilian organizational environment. Within these measures are the pro-employment, investment, economic growth and which are the solid bases for the competitiveness of the national product. And has as coordinator the businessman Jorge Gerdau Johannpetter.

The Ação Empresarial's objective was to provide its contribution to the 1993 constitutional review process, was exaustly involved in the tributary issue, with the hope that the Brazilian authorities would be able to develop a system that would contribute to the enhancement of the national competitiveness conditions. Up to the present time, only frustration. But it continues discussing and presenting proposals that may accelerate the Country's economic growth and to approximate us of a future that belongs to us, which is the economic and social growth, in spite of all the internal abnormalities.

The text below indicates that the Ação Empresarial has expanded its contribution items and has done this in a consistent and successful manner The reader of a country from the so called First World, if coming nowadays in Brazil and read this recommendation booklet issued by the Ação Empresarial – objectives, themes, suggestions - would say that the obvious is being recommended and the reader would be correct. The problem is that the Brazilian political action demoralizes even the obvious. The measures that represent this are present, necessary as oxygen, but lack of governors and politicians that would be capable to solve the political differences and get together to do what should be done. Let us then go through the list that the Ação Empresarial has prepared, based on which it intends to actuate politically from now on.

 

 

Sustainable economic growth: Priorities under an organizational point of view

 

Fundamental Objective

 

The fundamental objective to be pursued is the recovery of the country's growth on sustainable bases. To overcome the current low rates of economic growth, that places us at the last positions of the word and of Latin America, we should recover the investment capability by means of an increase in the internal savings, tributary relief on investments and production as well as reduction in public expenses and tax burden. Breaking the chains of the present would open the door for a promising future.

Only the combination of an adequate vision of the structures to be transformed and the determination in facing the present problems would assure a development compatible with the social requirements and the human dignity aspired by all the Brazilian citizens Within this sense, the organizational segment presents a set of themes that it considers of highest relevance to leverage the economic and social development of the country:

 

Relevant Themes

 

1. Modernization of the Political Institutions

- Enhancement of the electoral system.

- Loyalty of Political Parties.

 

2. Public Administration / State Efficiency

- Spend less (current expenses) and provide additional/improved services to population.

- Improvement in public administration/administrative rationalization and debureacratization .

- Fight corruption, frauds, wthholding and informality.

- Consolidate and deepen fiscal responsibility.

 

3. Tributary Reform

- Reduction of tax burden.

- Simplification of the system / non cummulativity of taxes.

- Tax relief on investment, production and exports .

 

4. Public and Legal Safety

- Citizen's safety.

- Contracts' compliance.

- Judicial Reform / Penal Execution Law.

- Depolitization and strengthening of the Regulatory Agencies.

 

5. Social Security Reform and Social Assistance

- Change in the rules in force aiming reduction of the social security deficit.

- Payment of benefits in proportion with contributions.

- Stimulation to the supplementary security mechanisms.

- Separation of assistance and security benefits / greater transparency.

 

6. Labor and Work Reform

- Update of the labor model.

- Flexibilization of labor relationships.

 

7. Infrastructure

- Competitiveness environment .

- Elimination of bottlenecks, modernization and expansion of systems, using public and private investments.

- Elimination of obstacles to Concessions and to Public-Private Partnerships (PPP).

 

8. Environment

- Policies and rules compatible with the current state of the Country's development and its growth requirements.

- Simplified and not costly environmental licensing system .

 

9. Agricultural Business

- A model that would enable the development of the agricultural business and the familiar agriculture under sustainable bases and in compliance with the laws.

- Respect to the property.

 

10. Market/Foreign Trade

- Stable economic and tributary rules and orientated to the competitiveness enhancement.

- Improve the commercial defense mechanisms and fight the predatory competitiveness.

- Negotiation of balanced trading agreements and rules / depolitization of the negotiation l process.

 

 

The ten themes described above - with the synthesis of what should be done - should be included in the manual of any social entity, whether organizational or not, and should have an effective commitment with the Country's future.

 

Revista Courobusiness - Edição nº 47 – julho/agosto 2006