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Report advocates broad institutional reforms to improve Brazil's productivity

For the Latin American Development Bank, the country must guarantee access to quality inputs for companies and foster cooperation between them

The low productivity is due not so much to a bad economic structure, but to all sectors of the economy. This is one of the conclusions of the report "Institutions for productivity - Towards a better business environmet", published by the Latin American Development Bank (CAF), on Wednesday (29), in an event held in partnership with the Ministry of Economy, in Brasília / DF.

According to the document presented by Guilherme Alves, chief executive of CAF's Vice-Presidency of Knowledge, the low levels of per capita income in the Latin American countries are mainly responsible for their low productivity. And "the roots of the development problem of the region are deep and penetrate, transversally, the entire productive fabric," the text points out.

In order to solve this problem, the Latin American Development Bank suggests making adjustments in the institutional framework that conditions several of the areas in which companies operate. According to the institution, it is necessary to promote competition; ensure access to quality inputs for enterprises and encourage cooperation between them; calibrate regulations and labor policies "to achieve a balance that guarantees their objectives of protecting workers without discouraging innovation; improve the functioning of financial markets ". In this last point, the CAF advocates the search for better interventions aimed at favoring access to finance and better regulation.

Economy Minister Paulo Guedes explained at the opening of the event that the Special Secretariat for Productivity, Employment and Competitiveness (Sepec) was created to address these problems. "We think of the long-term legacy and short-term shocks. It is possible to produce short-term miracles, unlocking, deregulating, simplifying, removing legal and legal obstacles. "

"The macroeconomic agenda is more visible, the pension reform, privatizations and taxes. But there is this microeconomic dimension that has the same importance as the macro agenda. The productivity of the worker, the competitiveness of companies and the country in the long run, determine the prosperity of nations, "he added.


The Special Secretary for Productivity, Employment and Competitiveness, Carlos Da Costa, explained to the participants the main actions of Sepec that are already under way, such as Simplifica, a set of measures to reduce bureaucratic business environments, reduce Brazil's cost and increase the competitiveness of companies.  

"The recovery of confidence, which makes us innovate and invest, will come with more market and more free initiative, with the government hindering less, with new regulations to attract private capital," he said.

"Modern infrastructure, human capital qualification, management capabilities and digitalization of our economy through management capabilities are essential. It's no use having incentive laws if we do not have a business and social fabric and a business environment that allows our businesses to progress. Sepec's measures will have a short-term impact. We will make room for prosperity through competition, markets and focused government action, "he concluded.


In the panel "How to raise productivity in Brazil?", Secretary of Foreign Trade and International Affairs Marcos Troyjo highlighted the importance of countries emphasizing their driving force for growth in Foreign Trade. "In the 1980s, there was a debate between those who understood that countries grew because they exported and those who understood that countries exported because they grew. It seems to me that history has dealt with this question. The countries that grow because they export are more virtuous than those who export because they grow, "he explained.

Infrastructure is also a central issue to be addressed if the country is to increase its productivity. According to the Secretary of Infrastructure Development at Sepec, Diogo Mac Cord, while the infrastructure stock in Brazil is 5 thousand dollars per inhabitant, in Japan this indicator exceeds 40 thousand dollars. "The less a country invests in infrastructure, the lower its productivity. We can not, however, due to a bad legal and regulatory environment, attack wrong problems, "he said.

Seio's Secretary of Development for Industry, Commerce, Services and Innovation, Caio Megale, highlighted the "Brazil More Productive", which promotes improvements in Brazilian companies focused on tools and methodologies of lean manufacturing. The program has already served more than 3 thousand companies in the country, registering an average productivity increase of 52%. "A great leap in productivity that we can give is to focus precisely on micro, small and medium-sized enterprises, which have a lag in relation to large companies."

According to Megale, the program will be expanded, with the expansion of the number of services, sectors covered and methodologies applied to productivity gains in companies. It is expected to reach 100 thousand services and reach up to 300 thousand companies.

The debate was mediated by Jorge Arbache, Vice President of the Private Sector of CAF. In addition to the representatives of the Ministry of Economy, the event was attended by Mark Copman, executive of 3M.