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Andre Passos Cordeiro | Urgent green industrial policy

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Andre Passos Cordeiro |  Urgent green industrial policy

The transition to a green economy opens up another window of opportunity for Brazil to make a leap in development, as it did during independence, during the period opened by the crisis of 1929 and after the Second World War.

In the 1st period, our political and cultural configuration was, perhaps, too infected with the evil of D. Mary 1st, who on January 5, 1785 ordered “that all factories, manufactories or looms (…) be extinct and abolished, wherever they are in my possessions in Brazil”. The rationale was the risk of damage to agriculture and mining activities due to the movement of labor.

It took us 1930 and the post-war period to realize that the opposite is true.

In 1822, already in the industrialized world, our manufacture was insignificant and, consequently, our share in the production of world wealth was only 0.5%. And only after 1930, with an acceleration in the 1950s and 1970s, did we begin to climb the mountain of economic growth, until in the mid-1980s we reached more than 3% of world GDP.

The engine of this lift? Significant and ongoing government policy of industrialization. Without it, it would take a whole century for industry to account for 12% of GDP and grow from 0.5% to 1% of global GDP. At the same time, after about 50 years (1930-1980), we began to rely on an industry that produces 35.9% of GDP, and the country tripled its share in world GDP.

However, the task was considerable and incomplete. In 1930, 4 industrial and technological revolutions had already taken place in the world, and Brazil was a distant observer. Until then, practically nothing of what they brought new was done here: we exported the most primary, we imported the most developed product of these revolutions.

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There are several reasons for this disparity and growth constraints in Brazil. I would like to highlight one premise of all: the entry into the industrial age is the main engine of growth and nowhere in the world it was spontaneous. It took Brazil some time to learn this lesson and for some time we have made more mistakes than we have succeeded. In the 1990s, the situation of structural under-competitiveness was seen as a simple lack of competition, and Brazil opened its domestic market to imports without making the necessary adjustments.

We have opened the country, and rightly so, but we have suspended for a long time any industrial policy worthy of the name. The synthesis phrase of this period was The best industrial policy is no industrial policy.” former Finance Minister Pedro Malan. data CSIS, a bipartisan think tank in the US, show that China spends $248 billion annually on industry stimulus policies; United States, $84 billion; Japan, US$26 billion; and Germany, US$16 billion. Brazil is providing US$6 billion.

The distance is very great, and the overall result of this reality is tragic: Brazilian industry has lost its share of world manufacturing output, falling almost continuously from 2.5% in 1990 to 1.32% in 2020, and the country’s share of world wealth from 3% in 1980 to 2% in 2021.

We get lost in the eternal discussions about less state and more market, when the most correct thing is more union between the 2. It is necessary to resume industrial policy and organize a conversation on an equal footing between it and fiscal and monetary policy. It should be an industrial policy that integrates production chains into missions aimed at accelerating the transition of the Brazilian economy to the current production paradigm: sustainable and cyclical.

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The starting point of transformation is the chemical industry, which brings innovation to the entire production chain, without which neither technology nor the way of organizing production can be competitive. The chemical industry can add value to natural resources such as pre-salt gas by preventing it from being simply burned as fuel or wasted when re-injected into oil wells, while at the same time providing technologies to recover the by-product. from it to the production process after consumption.

It can also add value to green hydrogen by going beyond energy use and producing green ammonia to use as fertilizer. It is chemistry that makes it possible to produce plastic for lighter parts needed for an electric car.

Without chemistry, there is no renewable energy: plastic solar cells based on conductive organic polymers are being developed to create light and inexpensive panels, windmill blades are made from plastics and chemical additives, synthetic fibers are used to insulate electronic components. wind generators.

In the field of health and sanitation, ensuring the constant availability of chemical products is inevitable for consistent progress. During the pandemic, we saw how many basic pharmaceutical ingredients are needed throughout the country. The supply of chlorine, polymeric membranes, PVC for pipes without the risk of interruption due to global crises is necessary to increase the pace of water and wastewater treatment in Brazil. All this is industry, all this is chemistry, all this is strategic.

The window of opportunity for green transformation is narrowing as competing countries already have their own (robust) plans. Brazil has all the resources to pursue a sustainable and lasting industrial policy that will lift us out of poverty. The time has come.

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The dollar continues to reflect the political scenario

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The dollar continues to reflect the political scenario

Yesterday, financial agents evaluated the opposite decision of the Federal Supreme Court (STF) regarding the so-called secret budget. In addition, a decision was made by STF Minister Gilmar Méndez to issue an injunction that would exclude the Bolsa Família from the spending cap rule, with investors trying to understand how this measure would affect the processing of the transitional PEC in the Chamber of Deputies. Oh this PEC!!!!

Since he is an exchange investor, any reading that the budget will be exceeded or become more flexible will negatively affect the exchange market, whether through the PEC or in any other way. We will continue with volatility today.

Looking beyond, the US Central Bank (Fed), although slowing down the pace of monetary tightening at its December meeting, issued a tougher-than-expected statement warning that its fight against inflation was not yet over, raising fears that rising US interest rates will push the world’s largest economy into recession.

The currency market continues to react to political news. The voting on the PEC is saved for today. It is expected that it will indeed be reviewed to open the way tomorrow for discussions on the 2023 budget.

Yesterday, the spot price closed the selling day at R$5.3103.

For today on the calendar we will have an index of consumer confidence in the eurozone. Good luck and good luck in business!!

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Andrés Sánchez consults with the Ministry of Sports, but refuses a political post.

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Goal.com

The former president of the Corinthians dreams of working for the CBF as a national team coordinator. He was consulted shortly after Lula’s election.

Former Corinthians president Andrés Sánchez was advised to take a position in the Ministry of Sports under the administration of Lula (PT). However, he ruled out a return to politics. dreams of taking over the coordination of CBF selectionHow do you know PURPOSE.

No formal invitation was made to the former Corinthian representative, only a consultation on a portfolio opportunity with the new federal government, which will be sworn in on January 1, 2023.

Andrés was the Federal MP for São Paulo from 2015 to 2019. At that time he was elected by the Workers’ Party. However, the football manager begs to stay in the sport, ruling out the possibility of getting involved in politics again.

Andrés Sanchez’s desire is to fill the position of CBF tackle coordinator, which should become vacant after the 2022 World Cup. Juninho Paulista fulfills this function in Brazil’s top football institution.

The former president of Corinthians was in Qatar to follow the World Cup along with other figures in Brazilian football. During his time in the country, he strengthened his ties with the top leadership of the CBF.

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The EU has reached a political agreement on limiting gas prices – 19.12.2022

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Germany sentenced Russian to life imprisonment for political murder by order of Moscow - 12/15/2021
BRUSSELS, DECEMBER 19 (ANSA). European Union countries reached a political agreement on Monday (19) to impose a natural gas price ceiling of 180 euros per megawatt hour (MWh). The main sources of income for Russia and the minimization of the use of energy as a weapon by the regime of Vladimir Putin.

The agreement was approved by a supermajority at a ministerial meeting of member states in Brussels, Belgium, after months of discussions about the best way to contain the rise in natural gas prices in the bloc caused by Russia’s invasion of Ukraine. .

The value set by the countries is well below the proposal made by the European Commission, the EU’s executive body, in November: 275 EUR/MWh. However, the countries leading the cap campaign were in favor of an even lower limit, around 100 EUR/MWh.

Germany, always wary of price controls, voted in favor of 180 euros, while Austria and the Netherlands, also skeptical of the cap, abstained. Hungary, the most pro-Russian country in the EU, voted against.

The instrument will enter into force on 15 February, but only if natural gas prices on the Amsterdam Stock Exchange exceed 180 euros/MWh for three consecutive days. In addition, the difference compared to a number of global benchmarks should be more than 35 euros.

Italy, the EU’s biggest supporter of the ceiling, has claimed responsibility for the measure. “This is a victory for Italy, which believed and worked for us to reach this agreement,” Environment and Energy Minister Gilberto Picetto tweeted.

“This is a victory for Italian and European citizens who demand energy security,” he added.

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Currently, the gas price in Amsterdam is around 110 EUR/MWh, which is already a reflection of the agreement in Brussels – in August the figure even broke the barrier of 340 EUR/MWh.

However, Russia has already threatened to stop exports to countries that adhere to the ceiling. (ANSA).

See more news, photos and videos at www.ansabrasil.com.br.

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