The Federation of Industries of the State of São Paulo (Fiesp) and the Center of Industries of the State of São Paulo (Ciesp) are meeting with the presidential candidates to submit a series of proposals with the objective of recovering sustained economic growth and forwarding structural solutions for the Brazilian economy. The first meeting was this Thursday (21), with Ciro Gomes (PDT).
The entities point out that, in this recovery process, the adoption of modern industrial policies has a central role, which has been increasingly used by important economies in the world.
“A new consensus, based on international experiences and taking into account technological changes and sustainability, puts the industrial sector back as the engine of economic recovery. For that, structural solutions are needed, not just conjunctural ones”, point out Fiesp and Ciesp.
Representatives of São Paulo’s industry emphasize that implementing a fiscal framework that considers the sustainability of the public debt and the importance of public development as fundamental elements for the country’s economic growth. “For this, it is important to promote administrative reform, evaluate the elements of budgetary rigidity and review the existing special tax regimes.”
Another suggested strategy is to promote greater convergence between monetary and fiscal policies.”
The entities are proposing the institution in a broad, homogeneous and isonomic way of the Value Added Tax (VAT) at the national level, inserted in a growth program that ensures the neutrality of the collection in a few years. They emphasize that this new system should not burden production, exports and investments.
For industrial policy, the suggestion is to find mechanisms that reduce the vulnerability of critical chains (such as food, energy, information and communication technology, health and safety and defense).
Fiesp and Ciesp point out that it is necessary to boost technological orders and the State’s purchasing power, improve the regulation of chains and attract investments from foreign companies on the technological frontier. In addition, it is necessary to expand international cooperation agreements containing counterparts for the internalization of competences and promote technological licensing aimed at domestic production.
Other challenges are to accelerate the transition to industry 4.0, by defining a legal framework, adapting incentives and reducing financing costs for the industrial sector and defining an investment agenda.
Innovation and technology
According to the federation and the center of industries, expanding investment in innovation and technology requires a series of measures:
- Internationally competitive interest rates;
- Improvement of the regulatory framework for innovation and startups;
- Review of the governance of the National Fund for Scientific and Technological Development (FNDCT);
- Use of government purchases and technological orders as an incentive for innovation; and
- Improve policies for compulsory investment in research, development and innovation.
The proposals presented to the presidential candidates suggest the strengthening of foreign trade in order to contribute to the modernization of the economy, generation of employment, income and investments. “To become more competitive, the country must ensure full exemption from exports and reinforce actions in the areas of financing, reducing bureaucracy and promoting Brazilian brands and products. These measures must be accompanied by the expansion of the network of trade agreements.”
Fiesp and Ciesp point out that it is essential to increase investments in infrastructure. For this, it is necessary to reinforce the role of public administration planning, expand the concessions program and segregate federal investments from current expenditures, within a new fiscal-budgetary framework. At the same time, it is necessary to institute a long-term national logistics plan, expand the rail, pipeline, waterway and cabotage navigation modes, focusing on the structural reduction of transport costs.
In the case of the electricity sector, it is essential to review the current model, in order to allow free contracting by all consumers, exempt public policies from energy tariffs, rationalize sectorial charges and maintain priority in the promotion of renewable sources.
For the gas sector, it is necessary to increase supply and advance in a regulation that results in the entry of new producing agents.
Among the measures presented in the educational area to presidential candidates are:
- Strengthening national governance of basic education;
- Modernize the management of the educational public administration bodies;
- Valuing teachers and professionalizing school management; and
- Implement school curricula based on the National Curricular Common Base (BNCC).
Business entities propose to presidential candidates to improve public health policies, focusing on management, expenditure assessment and improvements in the management structure, considering the socioeconomic characteristics of each region. “Such policies should make primary care more effective, seeking to reduce the aggravation of diseases, as well as optimizing resources.”
And they also suggest expanding public policies to combat hunger, malnutrition and waste reduction through national policies and inter-institutional alliances that promote access to adequate and healthy food in the short, medium and long term.
Civil construction and housing
Regarding civil construction and housing issues, the proposals that are being sent to the presidential candidates provide for:
- Combat the housing deficit, through the continuity and improvement of social housing programs;
- Guarantee resources to support investments in the sector and improve financing mechanisms for the creation of new titles dedicated to funding the real estate market, with financial support or guarantee from the Federal Government;
- Expand the lines of financing of Caixa Econômica Federal and Banco do Brasil. It is also essential to preserve the resources of the Severance Indemnity Fund (FGTS) for investment in housing;
- Encourage productivity and competitiveness gains, through public policies to encourage technology in construction, approved innovative processes and methods; and
- Improve the quality of materials and services, in order to provide satisfactory performance, rational consumption and adequate life for buildings.
Business entities point out that boosting agro-industrial production means recognizing the country’s importance for global food security and for reducing carbon emissions. Thus, they consider it necessary:
- Increase the participation of bioenergy in the national energy matrix, by encouraging the use of biofuels to ensure the success of the decarbonization of the economy;
- Stimulating agricultural production to promote a food supply shock, generating exportable surpluses;
- Strengthen the agri-food supply chain by encouraging national production of inputs and bio-inputs and reducing food waste.
Fiesp and Ciesp recommend creating favorable conditions to accelerate Brazil’s transition towards a green economy. To achieve this goal, it is necessary to decarbonize and provide greater security to the energy matrix. Furthermore, it will be necessary to maximize the potential of the bioeconomy as a basis for the social inclusion of vulnerable populations and traditional communities. Another central element in this agenda is the fight against illegal deforestation.
Regarding labor relations, the following are suggestions sent to candidates for the Planalto:
- Strengthen the collective bargaining mechanism, aiming to provide social actors with instruments to define the best working conditions, through more flexible rules;
- Create and strengthen conciliatory bodies and prior conciliation commissions, facilitating the social pacification of labor disputes and their judicialization;
- Implement actions that reduce the cost of work, in order to expand the formalization of the workforce;
- Change the procedural legislation with the objective of establishing a reasonable period for the beginning of validity of the legal norms, in order to allow the adequacy of the changes by the companies.
The document that is being sent to the presidential candidates highlights that promoting legal certainty is an increasingly important value. “Investments and capital allocation depend on positive indicators of legal certainty, which include, among other elements, ensuring the predictability of regulation of economic sectors and the independence of regulatory agencies, as well as providing competition and competition rules that favor equality of means between agents.
Also suggested are:
- Ensure the stability of the taxation and finance system;
- Implement a debureaucratized business environment that immunizes the economic sectors against misconduct by public agents;
- Ensuring a stable judicial decision system that does not burden economic segments with unpredictable costs;
- Ensuring the self-restraint of control bodies, which must adopt cooperative practices and incentives for the right relationship with consumers and the state;
- Ensuring an electoral system with clear funding rules that ensure equality between competitors.