Before departing on her first official visit to Cuba, President Dilma Rousseff spoke at a vital meeting for urban planning in the industrial city of Camaçari in Bahia (apparently this is her first presidential visit to the city). During her warm and good-natured address she congratulated the mayor Luiz Caetano and the municipal government on these desperately needed infrastructure improvements.
The gathering was to launch the plans for the rivitalisation of the river basin area, a project which is expected to cost R$ 280 million altogether. The programme is aimed to improve not just the main river of Camaçari but also many of its tributaries which have been badly degraded in recent years.
The whole vast improvement scheme is intended to impact positively on over 90,000 people in 19 local districts. Although most people will not need to be relocated it is unfortunately necessary that some homes along the river will need to be vacated. However the families concerned will be provided alternatives.
‘Dilma’ spoke with feeling about the affordable housing scheme Minha Casa, Minha Vida launched nationally and locally by the governments of her and her predecessor the popular ‘Lula’. She contrasted this sharply with what she saw as the failures of the twenty years or so before her PT-led coalition government came to power.
The President went on to explain that having a decent, secure home is a vitally important thing for every Brazilian family in Bahia as elsewhere. She said that a central orientation of her administration is to work towards maximising that right.
Tuesday 31 January 2012
BRAZIL TO SPEED UP MINHA CASA, MINHA VIDA
The national Minister for Planning, Miriam Belchior spoke to the media together with Jorge Heredia, President, Caixa Economica Federal and Guido Mantega, the Minister of Finance.
This happened following a high-level meeting with twenty leaders of the country’s construction industry. The purpose of the gathering was to exchange views and air problems about how the MCMV housing scheme could be expedited.
Following the conference the Minister reported that she and the other government officials had worked hard with the industry representatives to identify problems and explore solutions . The main difficulties tended to include utility connection delays plus of course the slow processing of necessary paperwork in some cases to authorise the units for habitation.
To tackle these issues the Government has promised to be more pro-active in dealing with the city administrations of municipalities with over two hundred thousand people, plus a more streamlined relationship with 'ANEEL', Brazil’s national agency for electricity supply.
The aim in 2012 is for the latest phase of Minha Casa Minha Vida is to achieve a national total to date of over a million units nationwide, launched or completed. This figure would represent over 50% of the total projected by the target date of 2014.
For his part, the Finance Minister, Mr.Mantega emphasised yesterday how important the housing industry is for Brazil’s GDP. He also explained that so-called housing credit (loans) are expected to grow by over forty per cent this year, continuing the rate of expansion seen last year.
Friday 27 January 2012
BRAZILIAN HOUSING LOANS BREAK RECORDS
In recent times, the Brazilian governments of both President Dilma Roussef and her predecessor the popular ‘Lula’ have taken great pride in the development of their flagship affordable homes scheme. The ‘Minha Casa Minha Vida’ programme has proved (and still proves) to be a life-enhancing innovation for millions of people in this, the leading BRIC nation. This is vitally linked to the very recent (historically) availability for the first time of mortgages for ordinary Brazilians of modest means.
More generally, new figures announced this week show that 2011 was a record year for financial support for the building and/or buying of property in Brazil. Loans attained their highest-ever levels, just a shade under $R 80 Billion. This was an increase of well over forty percent over the 2010 figure. And as for the number of actual units funded, they approached half a million, a massive increase of 17% over the year 2010.
These statistics were released on the 26th of this month by ‘ABECIP’- Associacao Brasileira Das Entidades De Credito Imobiliario e Poupanca. This is the Sao-Paolo based Brazilian Association of Savings and Credit. The Spokesman on this occasion was Mr. Octavian Lazar, the new President of the organisation. He explained that his group expects real-estate credit levels to remain high this year but lessening slightly compared to last. Even so, Lazar expected the rise to be impressive. He went on to comment that continued growth should be above all else sustainable in the current economic climate.
More generally, new figures announced this week show that 2011 was a record year for financial support for the building and/or buying of property in Brazil. Loans attained their highest-ever levels, just a shade under $R 80 Billion. This was an increase of well over forty percent over the 2010 figure. And as for the number of actual units funded, they approached half a million, a massive increase of 17% over the year 2010.
These statistics were released on the 26th of this month by ‘ABECIP’- Associacao Brasileira Das Entidades De Credito Imobiliario e Poupanca. This is the Sao-Paolo based Brazilian Association of Savings and Credit. The Spokesman on this occasion was Mr. Octavian Lazar, the new President of the organisation. He explained that his group expects real-estate credit levels to remain high this year but lessening slightly compared to last. Even so, Lazar expected the rise to be impressive. He went on to comment that continued growth should be above all else sustainable in the current economic climate.
Brazilian unemployment lowest for a decade.
The average rate for the whole year of 2011 was six per cent exactly, a figure that was well within the most optimistic expectatations.
After all, for the period 2001 to 2010 the average rate for the country was very nearly 10 %, although this statistic did mask a few large fluctuations (hence of course the description ‘average’).
It’s important to understand that in Brazil the unemployment figures are percentages of the so-called ‘working population’, not the whole national citizenry. This former term is defined as all those people in work plus those who are not in employment but who are actively seeking it, and identified as such.
However, IBGE comments that, while encouraging, the latest percentages indicate there still is further improvement to be made. Also, a cause for concern is the fluctuation in the numbers of people actually employed as distinct from unemployed.
As a contrast, though, the average monthly wage of employed Brazilians is apparently at the record level of R$ 1,650.
All this is positive news for the growing middle classes and the take-up market for such schemes as the affordable-housing programme ‘Minha Casa Minha Vida’.
Wednesday 25 January 2012
PPP's in modern Brazil
There are few in Brazil who do not share a positive attitude to the near-revolutionary 'Minha Casa. Minha Vida' scheme. This enables millions of people to consider seriously owning a decent home of their own. The programme involves an unusual co-operation between private investment and the public sector but it’s also interesting to look at the wider picture in Brazil.
Throughout the last decade the arrangements known as public-private partnerships (PPP’s) have steadily been making inroads in Brazil.
Essentially these are financial co-operations between the public sector and private finance. Their aim is to enable the development of various construction projects for public facilities (such as hospitals and schools for instance) faster than would otherwise be possible.
The basic idea is that private money, at least mostly, enables the building of these needed facilities and then the public sector (national, state or local) repays the cost over an extended period or else simply ‘rents’ the establishments.
Initially, the idea was launched in Brazil by the national government with a view to enabling very large scale projects. In recent times, however the concept has gained popularity for more medium sized projects, not just in health and education but sectors such as the environment, sport and real estate.
The co-ordinator of the organisation 'PPP Brazil' is Bruno Ramos, who is, not surprisingly, very optimistic about the future extension of the concept throughout the country. Ramos commented that even in areas and States initially wary of the PPP idea, they are now looking with great interest at launching schemes. However, the concept can be complex when putting particular projects into practice. Contracts must have safeguards built-in, especially those relating to time-scale and the quality of the ‘product’.
The United Kingdom is one of the world leaders in widespread use of PPP's, which have been supported by all three of the main political parties there, in government or opposition. However, there are those in every party (and elsewhere) who are not fans of the idea. They claim that the larger long-term cost to the public purse of such projects outweighs the convenience of being able to launch the completed schemes quicker.
Among the enthusiasm in Brazil there are also people there who share these concerns.
Throughout the last decade the arrangements known as public-private partnerships (PPP’s) have steadily been making inroads in Brazil.
Essentially these are financial co-operations between the public sector and private finance. Their aim is to enable the development of various construction projects for public facilities (such as hospitals and schools for instance) faster than would otherwise be possible.
The basic idea is that private money, at least mostly, enables the building of these needed facilities and then the public sector (national, state or local) repays the cost over an extended period or else simply ‘rents’ the establishments.
Initially, the idea was launched in Brazil by the national government with a view to enabling very large scale projects. In recent times, however the concept has gained popularity for more medium sized projects, not just in health and education but sectors such as the environment, sport and real estate.
The co-ordinator of the organisation 'PPP Brazil' is Bruno Ramos, who is, not surprisingly, very optimistic about the future extension of the concept throughout the country. Ramos commented that even in areas and States initially wary of the PPP idea, they are now looking with great interest at launching schemes. However, the concept can be complex when putting particular projects into practice. Contracts must have safeguards built-in, especially those relating to time-scale and the quality of the ‘product’.
The United Kingdom is one of the world leaders in widespread use of PPP's, which have been supported by all three of the main political parties there, in government or opposition. However, there are those in every party (and elsewhere) who are not fans of the idea. They claim that the larger long-term cost to the public purse of such projects outweighs the convenience of being able to launch the completed schemes quicker.
Among the enthusiasm in Brazil there are also people there who share these concerns.
Tuesday 24 January 2012
NIOBIUM IN BRAZIL PART-OWNED BY CHINESE
It has emerged in Brazil that four months ago in September a Chinese group obtained a 15% share in the world’s largest Niobium producer.
The company is called ‘Companhia Brasileira de Metalurgia e Mineração’. The metal is quite rare outside Brazil, which has the vast majority of the World’s exploitable reserves ( believed to be over ninety per cent). However, some experts believe there are untapped reserves in Africa and elsewhere, although they are years away from significant development, even if suitable accessible quantities exist.
Niobium is a very valuable metal because of its important uses for the electronics and nuclear industries. It is also in demand as a strengthening component in steel alloys, in particular for aviation engines, some of whose components operate under high pressure and temperature.
The Brazilian company is based in Minas Gerais where it is an important component of the Moreira Salles group.
The Chinese organisation paid just under two billion US dollars for its share. A very important wedge of cash for the Company, certainly, but many commentators question the wisdom of the sale to overseas buyers of such a vital strategic material. Of particular concern is that this isn’t the first or only such sale. Apparently a Japanese and Korean combine also bought a 15% share in March of last year, for a similar (but slightly lesser) amount.
So Asia is seriously interested in international investment in Brazil, at least in this important metal. Certainly the two fifteen-percent sales have brought much needed cash into the country, enabling Brazil to afford more easily social projects such as affordable housing.
However, many are seriously concerned over the other long-term and more controversial implications.
The company is called ‘Companhia Brasileira de Metalurgia e Mineração’. The metal is quite rare outside Brazil, which has the vast majority of the World’s exploitable reserves ( believed to be over ninety per cent). However, some experts believe there are untapped reserves in Africa and elsewhere, although they are years away from significant development, even if suitable accessible quantities exist.
Niobium is a very valuable metal because of its important uses for the electronics and nuclear industries. It is also in demand as a strengthening component in steel alloys, in particular for aviation engines, some of whose components operate under high pressure and temperature.
The Brazilian company is based in Minas Gerais where it is an important component of the Moreira Salles group.
The Chinese organisation paid just under two billion US dollars for its share. A very important wedge of cash for the Company, certainly, but many commentators question the wisdom of the sale to overseas buyers of such a vital strategic material. Of particular concern is that this isn’t the first or only such sale. Apparently a Japanese and Korean combine also bought a 15% share in March of last year, for a similar (but slightly lesser) amount.
So Asia is seriously interested in international investment in Brazil, at least in this important metal. Certainly the two fifteen-percent sales have brought much needed cash into the country, enabling Brazil to afford more easily social projects such as affordable housing.
However, many are seriously concerned over the other long-term and more controversial implications.
Monday 23 January 2012
Brazil has too much water…and too little!
Brazilian news is often positive these days but there are exceptions.
In recent weeks certain areas of the country have suffered badly from flooding due to excessive rain. This has been particularly true of the states of Minas Gerais and Rio de Janiero but it's also been a serious feature elsewhere. Although tragic deaths have been relatively few, many thousands have been affected with their homes, facilities and infrastructure either totally destroyed or at the least badly affected throughout the waterlogged areas.
These were mainly in the east or central regions of the Country. However, in parallel to this, another and ironically, opposite climatic problem is badly affecting other (more southerly) areas. This is serious drought. Too little rainfall as opposed to too much!
For the last two months, more than three million people have been affected, in over 500 towns and districts in Santa Catarina, Parana and Rio Grande do Sul. The severe lack of water has obviously hampered agriculture to a very challenging extent as well as disrupting the daily needs of families, institutions and businesses of all kinds.
Recent rainfall levels have improved in some of the area but as yet not enough to redress the problem to any real extent. An example of the scale of the problem comes from Santa Catarina.The organisation ‘Epagri’ (The Company for Agricultural Research and Rural Extension) has reported that the drought damage to agricultural production in the area has so far reached a value approaching half-a-billion Brazilian Reis, an enormous sum.
The main casualty seems to be corn, with a loss of nearly two-thirds of a million tons of expected production. This is a drop of about one-sixth. And it’s a similar story in other areas too (especially Parana and Rio do Sul) throughout the drought ridden south. Both national and state governments are doing what they can in partnership with municipalities, but so far, palliative measures have been limited in their effects.
In recent weeks certain areas of the country have suffered badly from flooding due to excessive rain. This has been particularly true of the states of Minas Gerais and Rio de Janiero but it's also been a serious feature elsewhere. Although tragic deaths have been relatively few, many thousands have been affected with their homes, facilities and infrastructure either totally destroyed or at the least badly affected throughout the waterlogged areas.
These were mainly in the east or central regions of the Country. However, in parallel to this, another and ironically, opposite climatic problem is badly affecting other (more southerly) areas. This is serious drought. Too little rainfall as opposed to too much!
For the last two months, more than three million people have been affected, in over 500 towns and districts in Santa Catarina, Parana and Rio Grande do Sul. The severe lack of water has obviously hampered agriculture to a very challenging extent as well as disrupting the daily needs of families, institutions and businesses of all kinds.
Recent rainfall levels have improved in some of the area but as yet not enough to redress the problem to any real extent. An example of the scale of the problem comes from Santa Catarina.The organisation ‘Epagri’ (The Company for Agricultural Research and Rural Extension) has reported that the drought damage to agricultural production in the area has so far reached a value approaching half-a-billion Brazilian Reis, an enormous sum.
The main casualty seems to be corn, with a loss of nearly two-thirds of a million tons of expected production. This is a drop of about one-sixth. And it’s a similar story in other areas too (especially Parana and Rio do Sul) throughout the drought ridden south. Both national and state governments are doing what they can in partnership with municipalities, but so far, palliative measures have been limited in their effects.
Sunday 22 January 2012
Britain wants to double it's trade with Brazil
Mr. Hague reminded listeners that his country is one of the top four leaders in Brazil investment at present, having increased its exports to her by over a third in the last couple of years alone. He especially emphasised the contribution of British firms such as BP (British Petroleum), British Gas, Shell and Rolls Royce.
Obviously British investments are throughout the country as a whole but are particularly noteworthy in Rio.
During his two-day trip to Brazil, the Foreign Secretary spent much of his time in Brasilia conferring with Foreign Minister Antonio Patriota but the schedule also included a visit to Rio de Janiero. This was where he attended an official lunch with State Governor Sergio Cabral and City Mayor Eduardo Paes. The main purpose of the meeting was to discuss the State’s plans for the 2016 Olympic Games, bearing in mind that London itself will be having a similar Olympic experience this very year!
Other matters were tactfully addressed, including the recent flare up again of the Falklands controversy as well as Britain’s promise to support Brazil becoming a member of the UN Security Council. William Hague also confirmed that the Queen’s grandson Prince 'Harry' will visit Rio in March to promote British interests vis-a-vis Brazil investment, connected to the issues surrounding the UK’s hosting of the Olympics this year.
Friday 20 January 2012
Dilma and Education In Brazil
President Dilma Rousseff and her year-old government have always claimed that improving education for Brazilians is a priority. The social and economic development of the country, including inward international investment, crucially depends, they believe, on a better-educated workforce.
As for more recent Brazilian news, earlier this week, the administration announced that Aloizio Mercadante will be the new national Minister of Education. He will be taking over from Fernando Haddad, who has resigned from the federal government so that he can run in this year’s elections for Mayor of Sao Paolo. The city is not just the largest in Brazil but the biggest in the whole southern hemisphere so it would certainly be an important step for Mr. Haddad if he achieves election.
As for the President herself, Dilma spoke this week at the launching of an important new initiative in Rio State The Julia Moreira da Silva Municipal Centre for Early Education. This is a kindergarten-age facility in Angra dos Reis on the Costa Verde of Rio State.The President attended together with the outgoing Minister of Education, Fernando Haddad and also Luiz Sergio, Minister of Fisheries ( after all, the region is coastal).
Speaking at the inauguration of the school, Dilma commented on problems still facing many families in Brazil and reiterated the determination of her government to tackle the problems by improving education. “ ( At present) inequalities begin as soon as people are born." she said "This school ( and others like it) is the way to achieve equality of opportunity”
The new facility was built by a partnership of the Federal Government and the municipal administration of Angra dos Reis. Minister Haddad commented that there is a network of about 500 schools like this throughout the country and the number is rapidly growing.
As for more recent Brazilian news, earlier this week, the administration announced that Aloizio Mercadante will be the new national Minister of Education. He will be taking over from Fernando Haddad, who has resigned from the federal government so that he can run in this year’s elections for Mayor of Sao Paolo. The city is not just the largest in Brazil but the biggest in the whole southern hemisphere so it would certainly be an important step for Mr. Haddad if he achieves election.
As for the President herself, Dilma spoke this week at the launching of an important new initiative in Rio State The Julia Moreira da Silva Municipal Centre for Early Education. This is a kindergarten-age facility in Angra dos Reis on the Costa Verde of Rio State.The President attended together with the outgoing Minister of Education, Fernando Haddad and also Luiz Sergio, Minister of Fisheries ( after all, the region is coastal).
Speaking at the inauguration of the school, Dilma commented on problems still facing many families in Brazil and reiterated the determination of her government to tackle the problems by improving education. “ ( At present) inequalities begin as soon as people are born." she said "This school ( and others like it) is the way to achieve equality of opportunity”
The new facility was built by a partnership of the Federal Government and the municipal administration of Angra dos Reis. Minister Haddad commented that there is a network of about 500 schools like this throughout the country and the number is rapidly growing.
Brazilian Interest Rate Down Again
Last year the new government of President Dilma Rousseff declared that a central plank of its monetary policy was to reduce interest rates as steadily and regularly as possible. One obvious aim was to control the growth of the nation’s economy and inflation.
This Brazilian news reflects the most recent decision taken by the Monetary Policy Committee which controls interest rates in the country. In a bulletin issued following the announcement, members stated that the reduction was designed to help achieve this year’s overall inflation target of four point five percent.
An important part of the Central Bank’s strategy is to try to gauge the effects of the global slowdown on Brazil and as far as possible neutralise the negative aspects. Many countries are of course trying to do this. However, as Brazil has now become the earth’s sixth largest economy, she is in a better position than many others to influence events rather than just respond to them.
Many commentators are predicting that this latest cut in the Selic rate will not be the last. It’s expected that on the months to come there will be at least a couple more, each of them at the half a percent level.
Wednesday 18 January 2012
A warmer welcome for foreign Professionals
The Government of Brazil is working to develop a new policy for professionally qualified would-be immigrants to the country. The construction of the approach has been entrusted to SAE (The Secretariat of Strategic Affairs).
This Brazilian news will be far-reaching if it’s implemented.The idea is that highly-qualified engineers, executives and other professionals from overseas often have skills the Country needs and, although limits are still needed, their welcome should be more encouraging and flexible. These people will have their requests treated as a special category, distinct from less qualified applicants, whose paperwork will be processed as stringently as before.
The project co-ordinator for the professionals’ scheme is the economist Ricardo Paes de Barros. He has confirmed that the new policy will indeed be handled with care and subtlety. Mr Paes de Barros explained that up to now, the so-called Foreigners’ Statute of 1980 has governed immigration and work permit matters. Although amended and adjusted over the years it is now overdue for wholesale overhaul.
The demand from well qualified overseas people is certainly there. For example, in the first nine months of 2011, Brazil’s Ministry of Labour granted over fifty-one thousand work permits, nearly a third higher than the comparable period the previous year. And this happened under the present, cumbersome system with rules which many people say are far too tight on the one hand (‘strict’) and far too loose on the other (‘open to too wide a margin of personal interpretation’). Among other things the present procedure requires numerous documents stamped and authorised by consulates.
The SAE proposals for a new streamlined system are expected by the end of March. The various lawyers, economists and social scientists comprising the group will be basing their draft on the inspiration of more enlightened (but still sensibly balanced) policies provided by such countries as Australia and Canada.
If implemented, a new scheme of this kind will have obvious beneficial results for all those seeking (or continuing) to invest in Brazil
This Brazilian news will be far-reaching if it’s implemented.The idea is that highly-qualified engineers, executives and other professionals from overseas often have skills the Country needs and, although limits are still needed, their welcome should be more encouraging and flexible. These people will have their requests treated as a special category, distinct from less qualified applicants, whose paperwork will be processed as stringently as before.
The project co-ordinator for the professionals’ scheme is the economist Ricardo Paes de Barros. He has confirmed that the new policy will indeed be handled with care and subtlety. Mr Paes de Barros explained that up to now, the so-called Foreigners’ Statute of 1980 has governed immigration and work permit matters. Although amended and adjusted over the years it is now overdue for wholesale overhaul.
The demand from well qualified overseas people is certainly there. For example, in the first nine months of 2011, Brazil’s Ministry of Labour granted over fifty-one thousand work permits, nearly a third higher than the comparable period the previous year. And this happened under the present, cumbersome system with rules which many people say are far too tight on the one hand (‘strict’) and far too loose on the other (‘open to too wide a margin of personal interpretation’). Among other things the present procedure requires numerous documents stamped and authorised by consulates.
The SAE proposals for a new streamlined system are expected by the end of March. The various lawyers, economists and social scientists comprising the group will be basing their draft on the inspiration of more enlightened (but still sensibly balanced) policies provided by such countries as Australia and Canada.
If implemented, a new scheme of this kind will have obvious beneficial results for all those seeking (or continuing) to invest in Brazil
Brazil : Large increase in older workers
The most recent 'ten-yearly' census in Brazil shows a big increase in people aged over sixty still working in paid employment. During the decade from 2000 to 2010, people in this senior age group who were economically active increased by nearly two-thirds. This was from 3.3 million up to 5.4 million.
This national total of course includes regional ones which all reflect increases in their areas too. Some districts had remarkable expansions, including Santa Catarina with 105%, Amapa 135% and the Federal District with a massive 151%! Such increases are astonishing and for some time pundits of all kinds have been seeking to explain them.
On a regional basis, the Midwest of the country and the expanding North are seemingly both areas where the ‘senior workforce’ is particularly prominent. In each of them almost thirty percent of the labour force is in this age group, a statistic which, as we’ve seen, has surprised many commentators. This is partly due it seems to the expanding employment opportunities in the two regions plus of course a shortage of the necessarily skilled labour in younger age groups. Many companies and organisations feel obliged to resort to older workers with specialist skills and feel glad to get them.
Add to that the increased life expectancy of Brazilians (which now reaches the mid-seventies) and increasing numbers of older citizens needing or wishing to earn and explanations for the phenomenon begin to emerge.This economic information provides data for investment news too. Overseas capital institutions seeking to inject money into Brazilian companies are increasingly interested in the demographics of the necessary skilled workforce in the country.
This national total of course includes regional ones which all reflect increases in their areas too. Some districts had remarkable expansions, including Santa Catarina with 105%, Amapa 135% and the Federal District with a massive 151%! Such increases are astonishing and for some time pundits of all kinds have been seeking to explain them.
On a regional basis, the Midwest of the country and the expanding North are seemingly both areas where the ‘senior workforce’ is particularly prominent. In each of them almost thirty percent of the labour force is in this age group, a statistic which, as we’ve seen, has surprised many commentators. This is partly due it seems to the expanding employment opportunities in the two regions plus of course a shortage of the necessarily skilled labour in younger age groups. Many companies and organisations feel obliged to resort to older workers with specialist skills and feel glad to get them.
Add to that the increased life expectancy of Brazilians (which now reaches the mid-seventies) and increasing numbers of older citizens needing or wishing to earn and explanations for the phenomenon begin to emerge.This economic information provides data for investment news too. Overseas capital institutions seeking to inject money into Brazilian companies are increasingly interested in the demographics of the necessary skilled workforce in the country.
Tuesday 17 January 2012
Brazilian Ports to Break Record
There are three main sectors of Brazil’s maritime trade, import, export and domestic. All of them are expected to grow. However, of the three, by far the largest is the export dimension with an expected share approaching 60%. The general increase in water-borne commerce is based in no small part on new ports which have been developed or planned in the recent past. This includes facilities such as the Acu Superport in Rio de Janiero State.
Of particular concern for the national government is to try and boost the ‘domestic’ sector. This means providing incentives ( or indeed penalties) to get more movement of goods away from the heavily-congested road network. José Leônidas Cristino, the national Minister of Ports re-emphasised this as a priority recently. He explained that the target is, by 2025, to double the percentage of ‘internal’ freight carried on waterways from its present total of only 14%. He also outlined a new computerized system for handling traffic in all three sectors of maritime commerce. The aim of the new procedures is to cut down on the widespread congestion and delays which still bedevil some ports at ‘popular’ locations and times.
Clearly there is a close link between general trade and the extent to which vital international investment continues to be attracted to Brazil. Investment opportunities in the country are expected to be boosted by the expected further growth in maritime trade.
Monday 16 January 2012
A warmer welcome for foreign Professionals
The Government of Brazil is working to develop a new policy for professionally qualified would-be immigrants to the country. The construction of the approach has been entrusted to SAE (The Secretariat of Strategic Affairs).
This Brazilian news will be far-reaching if it’s implemented.The idea is that highly-qualified engineers, executives and other professionals from overseas often have skills the Country needs and, although limits are still needed, their welcome should be more encouraging and flexible. These people will have their requests treated as a special category, distinct from less qualified applicants, whose paperwork will be processed as stringently as before.
The project co-ordinator for the professionals’ scheme is the economist Ricardo Paes de Barros. He has confirmed that the new policy will indeed be handled with care and subtlety. Mr Paes de Barros explained that up to now, the so-called Foreigners’ Statute of 1980 has governed immigration and work permit matters. Although amended and adjusted over the years it is now overdue for wholesale overhaul.
The demand from well qualified overseas people is certainly there. For example, in the first nine months of 2011, Brazil’s Ministry of Labour granted over fifty-one thousand work permits, nearly a third higher than the comparable period the previous year. And this happened under the present, cumbersome system with rules which many people say are far too tight on the one hand (‘strict’) and far too loose on the other (‘open to too wide a margin of personal interpretation’). Among other things the present procedure requires numerous documents stamped and authorised by consulates.
The SAE proposals for a new streamlined system are expected by the end of March. The various lawyers, economists and social scientists comprising the group will be basing their draft on the inspiration of more enlightened (but still sensibly balanced) policies provided by such countries as Australia and Canada.
If implemented, a new scheme of this kind will have obvious beneficial results for all those seeking (or continuing) to invest in Brazil.
This Brazilian news will be far-reaching if it’s implemented.The idea is that highly-qualified engineers, executives and other professionals from overseas often have skills the Country needs and, although limits are still needed, their welcome should be more encouraging and flexible. These people will have their requests treated as a special category, distinct from less qualified applicants, whose paperwork will be processed as stringently as before.
The project co-ordinator for the professionals’ scheme is the economist Ricardo Paes de Barros. He has confirmed that the new policy will indeed be handled with care and subtlety. Mr Paes de Barros explained that up to now, the so-called Foreigners’ Statute of 1980 has governed immigration and work permit matters. Although amended and adjusted over the years it is now overdue for wholesale overhaul.
The demand from well qualified overseas people is certainly there. For example, in the first nine months of 2011, Brazil’s Ministry of Labour granted over fifty-one thousand work permits, nearly a third higher than the comparable period the previous year. And this happened under the present, cumbersome system with rules which many people say are far too tight on the one hand (‘strict’) and far too loose on the other (‘open to too wide a margin of personal interpretation’). Among other things the present procedure requires numerous documents stamped and authorised by consulates.
The SAE proposals for a new streamlined system are expected by the end of March. The various lawyers, economists and social scientists comprising the group will be basing their draft on the inspiration of more enlightened (but still sensibly balanced) policies provided by such countries as Australia and Canada.
If implemented, a new scheme of this kind will have obvious beneficial results for all those seeking (or continuing) to invest in Brazil.
Dilma and Patriota to visit Cuba
Brazil’s Foreign Minister Antonio Patriota will depart on a visit to Cuba on Monday 16th January. The main purpose of his journey is to prepare the ground for the later (separate) visit of President Dilma Rousseff.
Mr. Patriota will meet with, among others, his ‘opposite number’ Bruno Rodriguez, the Cuban Foreign Minister. The wide-ranging agenda for their discussions will include items of mutual interest and co-operation such as scientific and technical matters. In particular, areas such as agriculture and health will feature, as well as discussing broader issues of regional (Latin American) integration.
A central project is the ethical investment by Brazil in the development of the Cuban port of Mariel. This is an example of international investment carried out by the leading BRIC nation, even in a situation where expected financial returns (if any) are likely to be long-term and indirect and based on helping the other to flourish in many different ways.
The background to these talks rests on the fact that the two countries have become economically much more important to each other in recent years. A central fact is that from 2006 to the end of 2010 trade between Cuba and Brazil grew by a massive thirty per cent to nearly US$500 million. The following year, mutual commerce grew again, to a new total of $570m.
When Dilma meets the Cuban President Raul Castro ( Fidel’s brother) it will be against a backdrop of change in Cuban society. In recent times Castro has gradually been liberalising the island’s society and economy. In practice this means easing the formerly very tightly controlled system to allow elements of private enterprise and personal choice to become much more prominent.
The high-level visits by Dilma and Patriota reinforce the fact that Brazil sees great opportunities for its own economy in this relationship based on ethical investment. This is turn will feed through to the general domestic benefit of ordinary Brazilians as mutual commerce continues to grow..
Mr. Patriota will meet with, among others, his ‘opposite number’ Bruno Rodriguez, the Cuban Foreign Minister. The wide-ranging agenda for their discussions will include items of mutual interest and co-operation such as scientific and technical matters. In particular, areas such as agriculture and health will feature, as well as discussing broader issues of regional (Latin American) integration.
A central project is the ethical investment by Brazil in the development of the Cuban port of Mariel. This is an example of international investment carried out by the leading BRIC nation, even in a situation where expected financial returns (if any) are likely to be long-term and indirect and based on helping the other to flourish in many different ways.
The background to these talks rests on the fact that the two countries have become economically much more important to each other in recent years. A central fact is that from 2006 to the end of 2010 trade between Cuba and Brazil grew by a massive thirty per cent to nearly US$500 million. The following year, mutual commerce grew again, to a new total of $570m.
When Dilma meets the Cuban President Raul Castro ( Fidel’s brother) it will be against a backdrop of change in Cuban society. In recent times Castro has gradually been liberalising the island’s society and economy. In practice this means easing the formerly very tightly controlled system to allow elements of private enterprise and personal choice to become much more prominent.
The high-level visits by Dilma and Patriota reinforce the fact that Brazil sees great opportunities for its own economy in this relationship based on ethical investment. This is turn will feed through to the general domestic benefit of ordinary Brazilians as mutual commerce continues to grow..
Friday 13 January 2012
New York wants increased Brazilian tourism
Brazilian News today includes an interesting item from further north.
In a move warmly welcomed by many, the administration of New York City announced this week it will be lobbying the US Government to ease entry requirements for tourists from Brazil. The city’s Mayor, Michael Bloomberg and his staff feel that the current restrictions on visitors from Brazil. China and India (three of the four BRIC nations...interesting that Mr.Bloomberg seems less interested in the fourth country of the group, Russia) are seriously restricting the economy of the USA’s largest city. Not only that, but there are many negative knock-on results for actual service industry employment in the area in catering, accommodation and the many tourist sites.
Mr.Bloomberg was speaking at his ‘State of the City’ speech, given this time in the Bronx, ( decidedly not the most salubrious district of the metropolis). The name is modelled on the national ‘State of the Union’ speech given every year by the US President to the nation as a whole.
The Mayor went on to explain that his municipal government will be working closely this year with and through (in particular but not exclusively) two national US Senators, representing New York constituencies. They are Kirsten Gillebrand and Charles Schumer, Democratic Party representatives who will be pushing Washington for easing of the Tourist Visa procedures.
At the moment, a Brazilian wanting to visit the US (or New York in particular) must go through a rather cumbersome process. It involves completing a form on-line and then, eventually, undertaking a personal interview at a consular office of the US.
Increased numbers of tourists from Brazil to New York are likely to result in grater numbers visiting in the other direction too. The more Brazilians visit the economic powerhouse of the US, in return the more interest will develop there about South America’s leading nation. If handled carefully this could even result in a significant increase in inward international investment.
In a move warmly welcomed by many, the administration of New York City announced this week it will be lobbying the US Government to ease entry requirements for tourists from Brazil. The city’s Mayor, Michael Bloomberg and his staff feel that the current restrictions on visitors from Brazil. China and India (three of the four BRIC nations...interesting that Mr.Bloomberg seems less interested in the fourth country of the group, Russia) are seriously restricting the economy of the USA’s largest city. Not only that, but there are many negative knock-on results for actual service industry employment in the area in catering, accommodation and the many tourist sites.
Mr.Bloomberg was speaking at his ‘State of the City’ speech, given this time in the Bronx, ( decidedly not the most salubrious district of the metropolis). The name is modelled on the national ‘State of the Union’ speech given every year by the US President to the nation as a whole.
The Mayor went on to explain that his municipal government will be working closely this year with and through (in particular but not exclusively) two national US Senators, representing New York constituencies. They are Kirsten Gillebrand and Charles Schumer, Democratic Party representatives who will be pushing Washington for easing of the Tourist Visa procedures.
At the moment, a Brazilian wanting to visit the US (or New York in particular) must go through a rather cumbersome process. It involves completing a form on-line and then, eventually, undertaking a personal interview at a consular office of the US.
Increased numbers of tourists from Brazil to New York are likely to result in grater numbers visiting in the other direction too. The more Brazilians visit the economic powerhouse of the US, in return the more interest will develop there about South America’s leading nation. If handled carefully this could even result in a significant increase in inward international investment.
Wednesday 11 January 2012
Dilma Approves Congestion Pricing
The twin purposes of the legislation are to reduce toxic emissions from private transport on the one hand and to raise revenue to boost public transport alternatives on the other. Of particular interest too is the increased use of bicycles.
For many years such an approach has been debated in Congress before finally being approved. However, local municipalities have until 2015 to comply and launch their own tailored schemes. This means that the majority of plans will only be in place after the World Cup in 2014.
The new Law will apply to all ‘1600 plus’ towns and small cities in Brazil with populations over 20,000. Any one of them which does not have its local scheme in place by the deadline can incur financial penalties from central Government.
Some see the new Law as being not just excessive but to some extent contradictory as it seems to work directly contrary to other Government initiatives. For example, the National Confederation of Municipalities points out that Brasilia is simultaneously boosting the sale of cars to help the vehicle industry counter the global recession while punishing vehicle usage in urban areas. The organisation’s President, Paul Ziulkoski explained:” While the government encourages cars, this new law authorises the levying of taxes to limit their movement in the cities”.
He went on to explain that there is the strong possibility of conflict between cities as people struggle to have their vehicles registered in areas with comparatively cheaper taxation.
The new Law has obvious implications for investment opportunities in Brazil. There will be clear knock-on effects regarding real estate construction and development costs as well as day-to-day transport expenses for companies and individuals alike.
President Dilma Faces Complex Reshuffle
Not just the general population but those who are looking to (or continuing to) invest in Brazil will be watching developments with great interest.
To an extent, many of the departing Officials will provide few surprises, comprising (as most of them do) just temporary appointees.
They only expected to be in post a few months. They were put in place to take over from the half a dozen disgraced ministers embroiled in scandal in Dilma’s first year in Office.
Actually, one particular minister is keen to depart as soon as possible as he has other plans in prospect. The current Minister of Education, Fernando Haddad, is aiming to run for his Party ( Dilma’s PT) for Mayor of Sao Paulo, Brazil’s largest metropolitan area. It’s also the largest one in the whole Southern Hemisphere so would provide Haddad with a major power base for whatever long-term plans he may have after that.
The various knock-on effects for the other changes remain to be finalised although the Education ministry (the most prominent one incontention) will almost certainly be kept by the PT.
One question mark hangs over the number and extent of the Government ministries themselves. Altogether there are thirty-eight portfolios and it's widely believed in some quarters that Dilma will merge or combine more than a few of the smaller ones.
Tuesday 10 January 2012
A Place In The Sun Live Earls Court London 30th March to 1st April
Europe's largest overseas property show opens in London in eleven weeks. We exhibited at A Place in the Sun Live in Birmingham back in September 2011 and had a unbelievable response and gained 12 new investors for our Arco Iris Minha Casa Minha Vida Social Housing Scheme in Brazil.
We are expecting this next event to be even more successful because not only have we launched 2 more Arco Iris phases opening the doors for hundreds of new investors but we will also be promoting 2 luxury resorts in Pipa, North East, Brazil, that we will be developing in 2012..
Monday 9 January 2012
Rio Rentals Surge This Month
However, because of the strong continuing interest (and inevitable competition for temporary housing) in coming to Rio, particularly for the holiday season running up to Carnival, it’s still the case that anyone with a decent apartment to rent out can find themselves 'laughing all the way to the Bank' !
For the country as a whole, Flavio Dino, president of Embratur confirms Brazil’s growing popularity with international visitors. He reminded listeners that the country hosted visits last year from nearly five and a half million tourists from overseas, generating US$6.4 Billion in extra foreign exchange.
This too has an impact on popular destinations such as Rio, where, to put it bluntly, foreign visitors and their money are directly competing with Brazilians from elsewhere in the country for ‘goodies’ such as nice accommodation for the holiday season.
All this has some interesting implications for investment opportunities in Brazil, in particular those relating to property, whether temporary or not. Remember, it’s not just the more popular areas of Rio such as Copacabana or Ipanema and it’s not just in ‘high season’ either.
Other districts (and indeed cities) and other times of the year can also provide very lucrative returns from this area of Brazil investment.
NEW PHONE AND INTERNET SCHEME FOR ORDINARY BRAZILIANS
The country’s Communications Minister Paulo Bernardo has announced the main features of the new scheme. These involve a certain amount of flexibility as regards carriers coupled with comparatively generous limits on usage for either element (phone and internet) of the new deal.
S. Bernardo went on to explain further. To ensure that only the intended and targeted groups are able to access the arrangement, applicants must demonstrate that they are in receipt of some form of government welfare or benefit or be registered with CadUnico, the Brazilian Single Registry for Social Programmes.
The entire scheme is being jointly developed at national level by ‘Anatel’ ( the National Communications Agency) working together with the Ministry itself. The joint enterprise has invited the proposals and participation of prospective companies.
In Brazil at present there is an estimated total of more than 240 million mobile phones, an average of about 1.2 for every man, woman and child. Clearly, the new programme will have wide-ranging implications for ordinary Brazilians. For one thing, it will make more information more readily available for people in their daily lives. It will consequently affect patterns of consumer choice and spending, for everything from daily groceries and entertainment all the way up the scale to participation in the exciting new ‘Minha Casa Minha Vida' affordable homes scheme.
Friday 6 January 2012
BRAZIL : Industrial production increases.
Recent statistics show that Brazilian industry generally increased itsproduction in November, reversing to some extent the slight decline ofthe previous three months.
The figures were released on 5th January by IGBE (the BrazilianInstitute of Geography and Statistics). While the overall total of‘factory output’ is up a little ( zero point three percent), thatmasks some interesting variations in the individual categories thatmake it up. In general terms, two-thirds of them are up whileone-third are down, bringing about the slight combined increase.
Growth was marked most notably in equipment and machinery products,with a comparatively healthy four per cent. However, this must be seenas only partly reversing the cumulative 9% loss over the previous twomonths. Still, it was an increase. Others emerged in sectors ofproductive industry such as printing and publishing (nearly 3.5percent), metal products (4 %) and motor vehicles (one and a half).However, the leader in increases this month was indisputably clothingat 9.4%.
Of the nine main categories which declined in the monthly total, themain items worth mentioning are Oil refining and alcohol products(both over 5%, reversing previous increases), computers and relateditems (8%) and other electronic equipment (seven and a half).
Clearly, the results, sector by sector are variable and therefore thebest overall indicator is the slight total increase. This has obviousimplications for Brazil’s balance of payments, exports and imports andultimately interest rates, all of which affect the country’s vitalinward flow of international investment.
This in turn affects the ability of Government (national, state orlocal) to deal with relief for natural disasters such as the recentfloods. It of course also includes longer-term projects including theaffordable housing programme, Minha Casa Minha Vida.
The figures were released on 5th January by IGBE (the BrazilianInstitute of Geography and Statistics). While the overall total of‘factory output’ is up a little ( zero point three percent), thatmasks some interesting variations in the individual categories thatmake it up. In general terms, two-thirds of them are up whileone-third are down, bringing about the slight combined increase.
Growth was marked most notably in equipment and machinery products,with a comparatively healthy four per cent. However, this must be seenas only partly reversing the cumulative 9% loss over the previous twomonths. Still, it was an increase. Others emerged in sectors ofproductive industry such as printing and publishing (nearly 3.5percent), metal products (4 %) and motor vehicles (one and a half).However, the leader in increases this month was indisputably clothingat 9.4%.
Of the nine main categories which declined in the monthly total, themain items worth mentioning are Oil refining and alcohol products(both over 5%, reversing previous increases), computers and relateditems (8%) and other electronic equipment (seven and a half).
Clearly, the results, sector by sector are variable and therefore thebest overall indicator is the slight total increase. This has obviousimplications for Brazil’s balance of payments, exports and imports andultimately interest rates, all of which affect the country’s vitalinward flow of international investment.
This in turn affects the ability of Government (national, state orlocal) to deal with relief for natural disasters such as the recentfloods. It of course also includes longer-term projects including theaffordable housing programme, Minha Casa Minha Vida.
Aid for Minas Gerais
In particular, the State of Minas Gerais has been badly affected in these ways. Obviously the general situation extends well beyond its borders but many of the worst results are contained within them.
On Tuesday of this week, national President Dilma Rousseff called on the State Governor, Antonio Anastasia to provide additional relief funding for the worse-affected areas. These include over 50 local towns and cities who are in an emergency situation, plus a similar number in a lesser (but still significant) condition. As well as these regional initiatives, The President also promised federal support through national government agencies.
The climatic problem is serious. However, the actual death toll, while tragic, has been comparatively low. The numbers directly attributable are still in single figures.
In a lesser sense, over two million residents of the State have been affected in all sorts of ways by the rains with nearly ten thousand people made directly homeless.
Needless to say, the genearal economy of Minas Gerais has been badly affected and the ‘knock-on’ effect for general social progress has been serious. It is hoped in government circles (both national and state) that international investment will also help with the recovery of the State, in tandem with the public sector efforts. In particular, it is felt that homelessness must be tackled urgently, either the short-term problem caused by the floods or the longer-term structural housing problem which Dilma and her administration ahave always been so avid to tackle.
article source : EcoHouse News
Thursday 5 January 2012
Dilma's First Year…Overseas Visits
However, both premiers have always shared the view that the BRIC nation’s overseas relations are of great importance. This is not least because of the crucial task of attracting ever-increasing overseas investments, in particular overseas property investment, to Brazil’s expanding economy. They’ve constantly emphasised, as they must, the message ‘Invest in Brazil’
Some commentators have formed the opinion that in terms of style, ‘Dilma’ tends to be more practical and discreet (and less ideological) than ‘Lula’ and point to several marked achievements, as they see them. These include her successful and impressive address to the UN in New York and of course the conclusion of the 'Apple' products assembly deal with China.
Dilma Roussoff’s actual travels for the year list simply as follows:
• A total of thirteen overseas visits
• Fifteen countries
• altogether 41 days out of Brazil
So far President Dilma Roussoff has not yet visited any Arab countries. This is a fact used as the basis for certain criticisms from some quarters. However she and the coalition government she heads deny these (while pointing to their criticism, for example, of the violence in Syria) and instead emphasis the remarkable achievements of Brazil’s new regime in many other directions.
Wednesday 4 January 2012
PRESIDENT ROUSSOFF : "WE WILL CONTINUE TRANSFORMING"
Speaking last Monday at her latest 'cafe com a presidenta' event, President Dilma Roussoff of Brazil re-emphasised that in her view, 2011 was a good year for her country. She prefaced her remarks by the mission-statement and motto "We will continue transforming the present and building a beautiful future for our children and grandchildren"
As well as speaking generally about the progress and prospects of inflation and GDP she emphasised certain specifics. Her comments were not of course entirely objective, as the timescale does include the first year of the President's own first term of office.
However, she listed some solid achievements of herself and her administration. These included a) the creation of more than two million new jobs nationwide, b) a definite reduction of social inequality and (as of this month) an increase in the national minimum wage to a new level of Reies 622.
In addition it must be remembered that the now-entrenched ‘thirteenth month’ payment convention is now far more widespread.
As from March this year there will be a further easing of taxes for more than five million small business people (self employed), thereby boosting the entrepreneur base of this sector of the economy.
However, for those of us concerned with the progress of the Affordable Housing business/movement, Caixa Economica Federal and Banco do Brasil confirm that progress is on course. A total in excess of Reies 125 Billion will have been committed by the target date of 2014 to the 'Minha Casa Minha Vida' scheme, as promised.
Article Source : EcoHouse News
As well as speaking generally about the progress and prospects of inflation and GDP she emphasised certain specifics. Her comments were not of course entirely objective, as the timescale does include the first year of the President's own first term of office.
However, she listed some solid achievements of herself and her administration. These included a) the creation of more than two million new jobs nationwide, b) a definite reduction of social inequality and (as of this month) an increase in the national minimum wage to a new level of Reies 622.
In addition it must be remembered that the now-entrenched ‘thirteenth month’ payment convention is now far more widespread.
As from March this year there will be a further easing of taxes for more than five million small business people (self employed), thereby boosting the entrepreneur base of this sector of the economy.
However, for those of us concerned with the progress of the Affordable Housing business/movement, Caixa Economica Federal and Banco do Brasil confirm that progress is on course. A total in excess of Reies 125 Billion will have been committed by the target date of 2014 to the 'Minha Casa Minha Vida' scheme, as promised.
Article Source : EcoHouse News
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