There’s a major new international investment in the pipeline for Brazil. Yesterday (the 23rd) the giant US vehicle manufacturer General Motors confirmed a new plant to be sited in Santa Catarina. It’ll be in Joinville.
The Company’s investment amounts to the equivalent of over $R 700 million altogether ( US 417 million dollars to be exact) and the purpose of the new factory is to make gearboxes. These will be for both the domestic Brazilian market of course but also for an important level of export to Europe. In fact, the projected production of around 150.000 units per year will be aimed equally ('fifty-fifty') at both markets.
Marcos Munhoz, the Vice-President of General Motors Brazil summarised the new project as follows ' By investing in this new plant for gearboxes GM reaffirms the importance of Brazil as an international automotive manufacturing centre.' Many commentators agree with him. So does the workforce in the area. The new plant will of course mean a significant boost for employment and the expected creation of 350 new jobs will be, the company says, only the beginning.
If everything goes according to schedule, the new facility will be operating by 2014. Even if that target proves just a bit optimistic, it’s certainly true that whenever it comes, the economic benefits to the 350 and their families will be important. This is also true for the equal number of people (or more) who’d benefit from this in a secondary spin-off way, plus of course the various levels of government who’ll find their ‘tax income’ increased !
All this extra money at different levels will have important impacts on social and community programmes in the area. In particular these will include Social Housing/Ownership schemes ( Social Housing Brazil ) such as the immensely popular Minha Casa Minha Vida which many more people will be able to afford.
Friday 24 February 2012
Many of Rio's legislators absent
The recent carnival holiday in Rio de Janiero was apparently not enough for many of the area’s parliamentarians. Following the five-day break, only 31 of the seventy deputies in Alerj (the Legislative
Assembly) turned up. Consequently, the gathering was found to be inquorate following a request for a count from Rep. Luiz Paulo. It therefore had to be ultimately cancelled...a very disappointing start to the renewed session, to say the least. In the other House (House of councillors) the situation was even worse because only 7 members were present to open the proceedings.
Now, to be fair, some of the absent politicians must have had legitimate excuses. Doubtless there were numerous genuine cases of illness of self or close family, attendance at weddings, baptisms or funerals, official business elsewhere and so on. So, some had real reasons for not attending. But what about all the others ?
With such a busy schedule and so much of importance to debate and discuss, many are dismayed at the lack of urgency. This is particularly worrying for those who keep an eye on the situation regarding important social projects such as Minha Casa Minha Vida, the revolutionary new affordable-housing programme.
Regarding the absent members, some are cynically (or realistically) unsurprised, such as Councilman Paul Pinheiro (PSOL). He reminded listeners that a lack of quorum (particularly at times like these) is a common problem in municipal or regional legislatures. In general, he concluded, the chamber(s) filled-up only when a vote is seen as very important by members themselves or the executive.
The general problem is set to worsen this year, many fear. This is because 2012 is of course an election year. Incumbent representatives seeking re-election can therefore be expected, alas, to spend even more time outside the Assembly as they campaign to retain their seats.
Assembly) turned up. Consequently, the gathering was found to be inquorate following a request for a count from Rep. Luiz Paulo. It therefore had to be ultimately cancelled...a very disappointing start to the renewed session, to say the least. In the other House (House of councillors) the situation was even worse because only 7 members were present to open the proceedings.
Now, to be fair, some of the absent politicians must have had legitimate excuses. Doubtless there were numerous genuine cases of illness of self or close family, attendance at weddings, baptisms or funerals, official business elsewhere and so on. So, some had real reasons for not attending. But what about all the others ?
With such a busy schedule and so much of importance to debate and discuss, many are dismayed at the lack of urgency. This is particularly worrying for those who keep an eye on the situation regarding important social projects such as Minha Casa Minha Vida, the revolutionary new affordable-housing programme.
Regarding the absent members, some are cynically (or realistically) unsurprised, such as Councilman Paul Pinheiro (PSOL). He reminded listeners that a lack of quorum (particularly at times like these) is a common problem in municipal or regional legislatures. In general, he concluded, the chamber(s) filled-up only when a vote is seen as very important by members themselves or the executive.
The general problem is set to worsen this year, many fear. This is because 2012 is of course an election year. Incumbent representatives seeking re-election can therefore be expected, alas, to spend even more time outside the Assembly as they campaign to retain their seats.
Tuesday 14 February 2012
WORLD CUP LAW DUE
It may be stating the obvious to remark that the forthcoming World Cup in 2014 will be a massively important sporting event for both host nation Brazil and the whole world. It goes without saying too that it will also have a huge impact on the economy of the country plus implications for both domestic and international investment. This is not least because of the many major construction and infrastructure projects already under way.
Another spin-off from the whole situation is the developing range of extra contacts with the UK that are developing because of it. Not least of these is the forthcoming visit by Prince Harry, an event featuring more in Brazilian news these days. A 'peg' to hang his visit on is the aim to compare notes about Britain’s Olympic hosting this year and Brazil’s in 2016 but we can be sure the Football event in 2014 will feature in the discussions too.
Against all this background the specially-constituted Brazilian parliamentary committee for the '2014 law' is due to report very soon and present its draft ideas for the World Cup.
There are many aspects under consideration in the Bill, but perhaps the most controversial are those of particular interest to President Dilma Rousseff.
One of them is the intention to provide half-price tickets to purchasers over 60 years of age ( more mischievous commentators have remarked that that is a group that includes Dilma herself!). If the proposal is fully passed, ‘senior citizens’ would be able to get 50% discounts in all categories of ticket.
Another major debate is expected to focus on the question of whether alcohol can or should be served at the FIFA events, and if so at which ones and in what containers. Considering the numbers of people involved, this is an issue of quite important economic as well as social importance.
Another spin-off from the whole situation is the developing range of extra contacts with the UK that are developing because of it. Not least of these is the forthcoming visit by Prince Harry, an event featuring more in Brazilian news these days. A 'peg' to hang his visit on is the aim to compare notes about Britain’s Olympic hosting this year and Brazil’s in 2016 but we can be sure the Football event in 2014 will feature in the discussions too.
Against all this background the specially-constituted Brazilian parliamentary committee for the '2014 law' is due to report very soon and present its draft ideas for the World Cup.
There are many aspects under consideration in the Bill, but perhaps the most controversial are those of particular interest to President Dilma Rousseff.
One of them is the intention to provide half-price tickets to purchasers over 60 years of age ( more mischievous commentators have remarked that that is a group that includes Dilma herself!). If the proposal is fully passed, ‘senior citizens’ would be able to get 50% discounts in all categories of ticket.
Another major debate is expected to focus on the question of whether alcohol can or should be served at the FIFA events, and if so at which ones and in what containers. Considering the numbers of people involved, this is an issue of quite important economic as well as social importance.
Foster is first woman president of Petrobras
On Monday of this week Maria de las Gracias Foster was officially inaugurated as the first-ever female President of Petrobras, the giant Brazilian oil company. To give it its full (but not often used) name, Petróleo Brasileiro is Latin America’s largest company by far. It’s also certainly in the world top ten (but the exact ranking depends on different definitions of ‘top’).
Petrobras is about two-thirds owned and controlled by the Brazilian public sector, to the value of almost $US 225 billion. The vast majority of this is via direct government possession of shares. It’s not just a domestic enterprise but, also, increasingly, an international one with growing links overseas, particularly with Africa and Asia. By any measure the company is an important contributor to the national economy and influences many decisions regarding both domestic and international investment in Brazil today.
The company is widely diversified, with a full range of activities in exploration, production, refining, transporting and processing of petroleum, including both land-based and maritime installations. The company also prides itself on its environmental approach and therefore sees itself as providing opportunities for ethical investments in Brazil.
At her appointment, the new Petrobras president emphasised her commitment to the linked benefit of both to her company and Brazil as a whole. She thanked her mentor, national President Dilma Rousseff who was present at the occasion and pledged her loyalty. For her own part, President ‘Dilma’ complimented Ms.Foster and praised her career of over thirty years within the organisation as providing an excellent basis for her new leadership role. She concluded by expressing pleasure that she (the first woman to lead Brazil) could be present to welcome the first woman to lead Petrobras.
Petrobras is about two-thirds owned and controlled by the Brazilian public sector, to the value of almost $US 225 billion. The vast majority of this is via direct government possession of shares. It’s not just a domestic enterprise but, also, increasingly, an international one with growing links overseas, particularly with Africa and Asia. By any measure the company is an important contributor to the national economy and influences many decisions regarding both domestic and international investment in Brazil today.
The company is widely diversified, with a full range of activities in exploration, production, refining, transporting and processing of petroleum, including both land-based and maritime installations. The company also prides itself on its environmental approach and therefore sees itself as providing opportunities for ethical investments in Brazil.
At her appointment, the new Petrobras president emphasised her commitment to the linked benefit of both to her company and Brazil as a whole. She thanked her mentor, national President Dilma Rousseff who was present at the occasion and pledged her loyalty. For her own part, President ‘Dilma’ complimented Ms.Foster and praised her career of over thirty years within the organisation as providing an excellent basis for her new leadership role. She concluded by expressing pleasure that she (the first woman to lead Brazil) could be present to welcome the first woman to lead Petrobras.
Monday 13 February 2012
SECOVI HAS NEW PRESIDENT
Secovi (the Brazilian Association for Housing) has a new President. He is the prominent businessman Claudio Bernardes and he formally takes office today, Monday 13th.
The organisation is a very influential body which represents companies in the Brazilian real estate ‘industry’ and their new chief is a man regarded by many as an ‘urbanism’ specialist. He’s seen as someone with his finger well and truly on the pulse of the property market.
Mr. Bernardes is concerned with the changing dynamic in property occupation (and therefore demand) patterns of towns and cities. As a part of this he notes that supply and demand are even more important factors than most people realise ; the acute shortage of so-called ‘affordable’ homes for the expanding middle class is tending he thinks, to keep price-rises in many areas faster than they ideally need to be.
However, the rapid expansion of schemes such as ‘Minha Casa, Minha Vida’ will help to alleviate this. As he says himself “The Minha Casa Minha Vida scheme is very important to help the country reduce the housing deficit. This model is a winner and will continue to help wipe out the deficit” He emphasises that throughout the sector prices generally won’t fall, just level off the rate of rises in future.
The new Secovi boss firmly believes that much more needs to be done as the shortage of property in Brazil is still serious. The shortfall is still somewhere between six and ten million units, he thinks This can be tackled, of course, but first two main problems have to be addressed, land allocation and infrastructure and materials availability.
Both of these require co-ordinated approaches by both government and the private sector. If all that happens, the deficit can be tackled in a reaonable time.
The organisation is a very influential body which represents companies in the Brazilian real estate ‘industry’ and their new chief is a man regarded by many as an ‘urbanism’ specialist. He’s seen as someone with his finger well and truly on the pulse of the property market.
Mr. Bernardes is concerned with the changing dynamic in property occupation (and therefore demand) patterns of towns and cities. As a part of this he notes that supply and demand are even more important factors than most people realise ; the acute shortage of so-called ‘affordable’ homes for the expanding middle class is tending he thinks, to keep price-rises in many areas faster than they ideally need to be.
However, the rapid expansion of schemes such as ‘Minha Casa, Minha Vida’ will help to alleviate this. As he says himself “The Minha Casa Minha Vida scheme is very important to help the country reduce the housing deficit. This model is a winner and will continue to help wipe out the deficit” He emphasises that throughout the sector prices generally won’t fall, just level off the rate of rises in future.
The new Secovi boss firmly believes that much more needs to be done as the shortage of property in Brazil is still serious. The shortfall is still somewhere between six and ten million units, he thinks This can be tackled, of course, but first two main problems have to be addressed, land allocation and infrastructure and materials availability.
Both of these require co-ordinated approaches by both government and the private sector. If all that happens, the deficit can be tackled in a reaonable time.
New Minister for Women
An important item of Brazilian news today is that a new government minister has taken over at the helm of Brazil’s ‘Special Secretariat for Policies for Women’. She is Eleonora Menicucci and her appointment has been warmly made and welcomed by President Dilma Rousseff.
Dilma emphasised that while Eleonora Menicucci will bring her unique talents and energy to the role she will nonetheless act within a framework of collective government policy and guidelines. She reminded listeners that the coalition administration does in fact have very little in the way of disagreements founded on political or religious bases.
The President and Ms. Menicucci are old friends and colleagues of many years’ standing. In fact they were both persecuted by the former military dictatorship and imprisoned together (and indeed shared a cell for a time) in the so-called ‘Tower of the Maidens’ wing in Tiradentes Prison in Sao Paolo.
During the inauguration last week, both women complemented each other and reminisced about the mutual support they gave each other during those awful times. However. The sociologist and pro-feminist Eleonora Menicucci reminded her audience that she has had many other experiences in life which she can also bring to her new responsibility.
She has been, for example, a Professor of Public Health and also pro-rector of ‘UNIFESP’ (Brazil’s Federal University of Sao Paolo).
Her CV further includes a Doctorate in Political Science from USP in Brazil plus post doctorate studies in Health and Women’s issues at Italy’s University of Milan.
Her appointment will be seen as very positive for the advancement of women in the country, especially regarding their position in the workplace and as consumers. This inevitably implies their increased participation in such schemes as the affordable housing programme ‘ Minha Casa Minha Vida ’
The appointment of Eleonora is therefore seen by observers as continuing the policy of the administration to include well-qualified women (and men!) at the highest levels of public prominence.
Dilma emphasised that while Eleonora Menicucci will bring her unique talents and energy to the role she will nonetheless act within a framework of collective government policy and guidelines. She reminded listeners that the coalition administration does in fact have very little in the way of disagreements founded on political or religious bases.
The President and Ms. Menicucci are old friends and colleagues of many years’ standing. In fact they were both persecuted by the former military dictatorship and imprisoned together (and indeed shared a cell for a time) in the so-called ‘Tower of the Maidens’ wing in Tiradentes Prison in Sao Paolo.
During the inauguration last week, both women complemented each other and reminisced about the mutual support they gave each other during those awful times. However. The sociologist and pro-feminist Eleonora Menicucci reminded her audience that she has had many other experiences in life which she can also bring to her new responsibility.
She has been, for example, a Professor of Public Health and also pro-rector of ‘UNIFESP’ (Brazil’s Federal University of Sao Paolo).
Her CV further includes a Doctorate in Political Science from USP in Brazil plus post doctorate studies in Health and Women’s issues at Italy’s University of Milan.
Her appointment will be seen as very positive for the advancement of women in the country, especially regarding their position in the workplace and as consumers. This inevitably implies their increased participation in such schemes as the affordable housing programme ‘ Minha Casa Minha Vida ’
The appointment of Eleonora is therefore seen by observers as continuing the policy of the administration to include well-qualified women (and men!) at the highest levels of public prominence.
Friday 10 February 2012
WIKIPEDIA IN BRAZIL…NEW INITIATIVE
It would be hard to overstate the importance of the internet for Brazil. This is not just for the country’s business and those local or international investment firms involved in it. It is also vital for many millions of ordinary citizens who surf, research and (increasingly) shop and buy on line these days.
Brazilian news this week reports a couple of interesting and potentially very important ‘cyberspace’ developments. The main one involves Wikipedia.
This week in Sao Paolo the annual I.T. festival ‘Campus Party’ was held. This is an international idea but those attracted and interested by the Brazilian ‘branch’ have been rapidly increasing in numbers. At the gathering, Kul Wadha spoke. Mr.Wadha is the main director of Wikipedia’s ‘parent’ organisation, the Wikimedia Foundation.
He explained that his group is planning to open a dedicated office and organisation for Brazil, a country that he says is an important priority. “..we’re trying to figure out things that we can develop specifically for the Country” he remarked. Wadha explained that while Wikipedia is used by a significant and growing number of people in the country, actual contribution of articles is very low. It seems that only about two per cent of Brazilians who use the site have actually contributed or edited an article for it. This figure amounts to only about one-third the world average and is a problem that Wikimedia/Wikipedia hopes will be alleviated by this new in-country focus within Brazil.
To take the initiative forward, a local executive director will shortly be hired. A main priority of his or her initial work will be liaising with universities, museums and other educational institutions to try and boost the numbers of useful articles provided in Brazilian Portuguese.
Brazilian news this week reports a couple of interesting and potentially very important ‘cyberspace’ developments. The main one involves Wikipedia.
This week in Sao Paolo the annual I.T. festival ‘Campus Party’ was held. This is an international idea but those attracted and interested by the Brazilian ‘branch’ have been rapidly increasing in numbers. At the gathering, Kul Wadha spoke. Mr.Wadha is the main director of Wikipedia’s ‘parent’ organisation, the Wikimedia Foundation.
He explained that his group is planning to open a dedicated office and organisation for Brazil, a country that he says is an important priority. “..we’re trying to figure out things that we can develop specifically for the Country” he remarked. Wadha explained that while Wikipedia is used by a significant and growing number of people in the country, actual contribution of articles is very low. It seems that only about two per cent of Brazilians who use the site have actually contributed or edited an article for it. This figure amounts to only about one-third the world average and is a problem that Wikimedia/Wikipedia hopes will be alleviated by this new in-country focus within Brazil.
To take the initiative forward, a local executive director will shortly be hired. A main priority of his or her initial work will be liaising with universities, museums and other educational institutions to try and boost the numbers of useful articles provided in Brazilian Portuguese.
Interest Rates challenged by President
Brazil’s president has taken another step forwards in her attempts to encourage interest rate reductions. This is clearly an important issue, not just for all who invest in Brazil but anyone who just lives there too!
Brazilian news recently reported a set of meetings with her economic team by the country’s president, Dilma Rousseff. She has again emphasised that in her view there’s no need for the cost of loans in the Country to remain so high. This is particularly puzzling, she feels, as the Selic rate (basic interest level) set by Brazil’s Central Bank (although still in double figures, 10.5%) is slowly but surely dropping.
That ‘benchmark rate has gradually been edging downwards in recent times, by cautious half-a–percent steps every time and the President wants to see much more progress. After all, the vast majority of Brazil’s main competitors throughout the world have much lower basic rates.
Also of great concern to Dilma and her team is the difference between the two main kinds of interest. There is one for banks to lend out money and one paid by the banks themselves to raise their cash in the first place. The technical term for the gap between the two is ‘the spread’.
There are a great many possible measures that could be taken to reduce this further. Indeed, the eventual package will be of great interest (no pun intended!) to anyone who borrows money. This includes literally millions of newly middle-class people who for the first time ever are able to obtain (and afford) mortgages. These enable them to buy their dream homes via the ground-breaking (in more ways than one!) new affordable housing scheme Minha Casa Minha Vida
Brazilian news recently reported a set of meetings with her economic team by the country’s president, Dilma Rousseff. She has again emphasised that in her view there’s no need for the cost of loans in the Country to remain so high. This is particularly puzzling, she feels, as the Selic rate (basic interest level) set by Brazil’s Central Bank (although still in double figures, 10.5%) is slowly but surely dropping.
That ‘benchmark rate has gradually been edging downwards in recent times, by cautious half-a–percent steps every time and the President wants to see much more progress. After all, the vast majority of Brazil’s main competitors throughout the world have much lower basic rates.
Also of great concern to Dilma and her team is the difference between the two main kinds of interest. There is one for banks to lend out money and one paid by the banks themselves to raise their cash in the first place. The technical term for the gap between the two is ‘the spread’.
There are a great many possible measures that could be taken to reduce this further. Indeed, the eventual package will be of great interest (no pun intended!) to anyone who borrows money. This includes literally millions of newly middle-class people who for the first time ever are able to obtain (and afford) mortgages. These enable them to buy their dream homes via the ground-breaking (in more ways than one!) new affordable housing scheme Minha Casa Minha Vida
Thursday 9 February 2012
President Dilma Rousseff visits huge North East development
However, taking a wider view, it would be hard to exagerrate the importance of two interconnected things. These are reliable water supplies for the people on the one hand and good transport connections on the other.
On Wednesday this week President Dilma Rousseff started an important ‘tour of inspection’ visit to a massive infrastructure and environmental project in the Region.
It is the Sao Francisco River irrigation and water-supply scheme, designed to provide secure supplies to a huge area of nearly 400 towns and cities (plus their surroundings) comprising twelve million people.
It includes a canal, pumping stations, aquaducts and reservoirs plus of course linking conduits of various sizes.
A parallel and connected endeavour is the Transnordestina railway project of over 1700 km altogether. This is intended to link inland areas to the Atlantic ports of Pecem and Suape.
The whole approach takes in all or part of the states of Ceara, Pernambuco, Paraiba and Rio Grande and the work (parts of which have unfotunately over-run itheir target date) will cost a great deal of money ; estimated and expected totals of over seven billion $R are quoted.
However, the Brazilians expect that the development and improvement will be well worth the cost and will pay dividends for local and international investment institutions.
UK newspaper the Financial Times urges Brazil to be more choosy
While acknowledging the advances made by the country in recent years, the paper, via its Sao Paolo correspondent Joe Leahy, urges the BRIC giant to be more selective about the countries it deals with.
This is especially important now, he thinks, that the Country is developing so fast in so many ways.
Sometimes countries have to pick sides and always should try to act on principle more than expediency. Brazil does sometimes act in this way (as with its criticism of Iranian ‘stoning’ executions) but is unfortunately often more ambivalent.
A lot of the gist of the article seems inspired by the recent visit to Cuba of President Dilma Rousseff and what many see as her soft-pedalling in Havana on the human rights issue in the island nation. It is also focused largely on the Cuban regime-critical internet blogger, Yoani Sanchez, someone who is decidedly not a popular figure in government circles there!
Mr.Leahy analyses that Brazil is leaving the so-called Third World and is emerging as a global power (after all, the country is now in sixth place in terms of national GDP, having recently overtaken the United Kingdom). In this situation her international attitudes will have a profound effect on many things, not least the inward flow of international investment which is so vital to national prosperity
.
This all means the country’s government and diplomats should be more discerning about which side of the fence, or indeed multiple fences, they should aim to be on.
Monday 6 February 2012
Prince Harry to Visit Brazil
With sixty years on the throne, she is now the second-longest reigning British monarch and is only a few years away from exceeding Queen Victoria’s record. However, Prince Harry’s travels will culminate in Brazil,the leading South American nation, which is of such economic importance these days to Britain.
Brazilian investment news these days includes an interesting new fact. It is that the UK is now Brazil’s fourth-largest provider of overseas international investment, a fact emphasised by Foreign Secretary William Hague during his visit last month.
The Prince (second son of the Prince of Wales, Charles and the tragic ‘Lady Di’) will pack-in a number of very different events in Brazil. These will include a game of volleyball on a beach (which one is still a closely-guarded secret), meetings with students and ordinary citizens and conferences with government officials. Another focal point will be exploring co-operation options regarding the Olympics ; Britain is hosting them this year and Brazil next time, in 2016.
The imminent timing of Harry’s visit is probably not coincidental in another sense, as he and his team will probably have considerable ‘soothing’ to do. After all, his elder brother, Prince William, will shortly be on military deployment in the Falkland Islands. This is controversial (to say the least) in Argentina, but also her neighbours, Brazil and Uruguay
Thursday 2 February 2012
CONCERN ABOUT RIO +20
It’s only about five months until the important environmental conference ‘Rio +20’ takes place in the Brazilian city of the same name. The international gathering will be held under the auspices of the United Nations and is intended as a follow up to the famous UNCED (United Nations Conference on Environment and Development) in 1992 in Rio de Janeiro (hence the name ‘Rio plus twenty’).
It will also be the tenth anniversary of the subsequent WSSD (the World Summit in 2002 on Sustainable Development) in South Africa. This latest Rio conference, in June this year, is of course again being hosted and organised by the Brazilian government who earlier this month issued a controversial draft agenda for the event.
Already concerns are being expressed in some quarters about a perceived lack of ‘hard focus’. This is regarding the specifics proposed by the Brazilians, made public on the last day of January.
The overall themes of the conference ( and this is the crux of the unease) are supposed to be based on developing a green economy in the context of sustainable development and poverty eradication and also the institutional frameworks necessary in the first place for that sustainable development.
The main foreign criticisms of the twenty-page draft agenda seem to centre on one main area. That is the perception by some that several of the proposals to benefit international social and economic progress would actually detract from the environmental objectives. Others disagree of course.
The two sides of this question will obviously have considerable thrashing-out to do before and after the Conference, if indeed it is to end up being useful and/or successful.
Whatever the outcome, tackling climatic and environmental issues clearly has great relevance worldwide but also for those who care about Brazil’s long-term welfare in particular. The economy will be affected by decisions made and that will have a clear impact on everything from international investment to domestic housing policy.
It will also be the tenth anniversary of the subsequent WSSD (the World Summit in 2002 on Sustainable Development) in South Africa. This latest Rio conference, in June this year, is of course again being hosted and organised by the Brazilian government who earlier this month issued a controversial draft agenda for the event.
Already concerns are being expressed in some quarters about a perceived lack of ‘hard focus’. This is regarding the specifics proposed by the Brazilians, made public on the last day of January.
The overall themes of the conference ( and this is the crux of the unease) are supposed to be based on developing a green economy in the context of sustainable development and poverty eradication and also the institutional frameworks necessary in the first place for that sustainable development.
The main foreign criticisms of the twenty-page draft agenda seem to centre on one main area. That is the perception by some that several of the proposals to benefit international social and economic progress would actually detract from the environmental objectives. Others disagree of course.
The two sides of this question will obviously have considerable thrashing-out to do before and after the Conference, if indeed it is to end up being useful and/or successful.
Whatever the outcome, tackling climatic and environmental issues clearly has great relevance worldwide but also for those who care about Brazil’s long-term welfare in particular. The economy will be affected by decisions made and that will have a clear impact on everything from international investment to domestic housing policy.
Too many imports
There are quite a number of Brazilian ‘good news’ stories these days, regarding the country’s economy. However, an evolving modern society like theirs is complex. In recent times there have been a certain amount of ‘furrowed brows’ in this leading BRIC nation about the balance between imports and exports. In short, there are too many of the former, at least according to some commentators.
But what about the actual statistics ? Well, output from domestic productive industry only grew by a tiny amount ( less than half of one percent) last year. This was despite the surge in demand from the internal market for goods of all kinds. The shortfall can only be made up by imports of course. All this has a definite effect on international investment in Brazil.
Another fact, this one pointed out by the Centre for Industrial Economics and Technology at UNICAMP (university of Campinas) is that while Brazil’s GDP has grown by 16% in the last four years, the value of industrial production only managed a quarter of that figure.
Professor Celio at the Centre explained that high taxation, costs of energy and services and of course the dollar exchange rate all tend to work against international competitiveness for Brazilian industry at present.
While unemployment in Brazil is thankfully very low at present, in the long term the import/export situation needs to be improved or the situation will worsen. With fewer people working and earning, fewer of them will be able to afford to buy domestic products.These obviously include either consumer goods or indeed homes of their own, such as those avalable via the Minha Casa, Minha Vida scheme.
But what about the actual statistics ? Well, output from domestic productive industry only grew by a tiny amount ( less than half of one percent) last year. This was despite the surge in demand from the internal market for goods of all kinds. The shortfall can only be made up by imports of course. All this has a definite effect on international investment in Brazil.
Another fact, this one pointed out by the Centre for Industrial Economics and Technology at UNICAMP (university of Campinas) is that while Brazil’s GDP has grown by 16% in the last four years, the value of industrial production only managed a quarter of that figure.
Professor Celio at the Centre explained that high taxation, costs of energy and services and of course the dollar exchange rate all tend to work against international competitiveness for Brazilian industry at present.
While unemployment in Brazil is thankfully very low at present, in the long term the import/export situation needs to be improved or the situation will worsen. With fewer people working and earning, fewer of them will be able to afford to buy domestic products.These obviously include either consumer goods or indeed homes of their own, such as those avalable via the Minha Casa, Minha Vida scheme.
Wednesday 1 February 2012
FACEBOOK PULLS AHEAD IN BRAZIL
An interesting ‘technological’ item of Brazilian news today. The social network site Facebook has for the first time pulled ahead of its nearest rival to become the most popular in the country. This has recently been announced by ‘comScore’, a respected statistics firm.
It seems that the former favourite, Orkut (provided by Google) has now slipped slightly below Mark Zuckerberg’s site. The most recent figures, for December, indicate that Orkut attracted the still hugely impressive total of 34.4 million unique visitors while being overtaken by Facebook’s 36.1 M in the same month.
Of course, many in the online community are keeping their Orkut accounts while also signing-up for Facebook ; it’s certainly not a question of ‘either/or’. Nonetheless, the surge towards the latter site has been particularly remarkable over the last year, when Facebook’s numbers of visitors have nearly tripled. Orkut has increased only very slightly, by about five per cent.
Compared with other countries, Facebook usage in Brazil has apparently moved the country into the top four. It’s now the case that the South American giant is in this respect only exceeded by (in order) the United States, India and Indonesia.
Commenting on the recent Facebook boom in Brazil, Alex Banks, comScore’s MD in Brazil remarked that the nation has always been oriented towards such sites but previously usage favoured those provided by other organizations. All that is now changing, however.
It’s also interesting to note the position of other ‘players’ in the market. The number three position seems now to be held by Windows Live Profile (up by one-eighth over the last year) now on 13.3 M visitors, with ‘flavour of the month’ Twitter now scoring 12.5 million, a surge of over forty percent in the last twelve months.
The growth of these popular communications systems have immense implications for business in the country as well as personal contacts.
For those interested in domestic or international investment their potential is enormous.
It seems that the former favourite, Orkut (provided by Google) has now slipped slightly below Mark Zuckerberg’s site. The most recent figures, for December, indicate that Orkut attracted the still hugely impressive total of 34.4 million unique visitors while being overtaken by Facebook’s 36.1 M in the same month.
Of course, many in the online community are keeping their Orkut accounts while also signing-up for Facebook ; it’s certainly not a question of ‘either/or’. Nonetheless, the surge towards the latter site has been particularly remarkable over the last year, when Facebook’s numbers of visitors have nearly tripled. Orkut has increased only very slightly, by about five per cent.
Compared with other countries, Facebook usage in Brazil has apparently moved the country into the top four. It’s now the case that the South American giant is in this respect only exceeded by (in order) the United States, India and Indonesia.
Commenting on the recent Facebook boom in Brazil, Alex Banks, comScore’s MD in Brazil remarked that the nation has always been oriented towards such sites but previously usage favoured those provided by other organizations. All that is now changing, however.
It’s also interesting to note the position of other ‘players’ in the market. The number three position seems now to be held by Windows Live Profile (up by one-eighth over the last year) now on 13.3 M visitors, with ‘flavour of the month’ Twitter now scoring 12.5 million, a surge of over forty percent in the last twelve months.
The growth of these popular communications systems have immense implications for business in the country as well as personal contacts.
For those interested in domestic or international investment their potential is enormous.
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