To remove Brazil from its position of Olympic world champion in inequality, we need the leaders of its government, congress and judiciary to align (we suggest a ‘task force’) with a single aim, to achieve the following:
- reduce judicial insecurity – to regain confidence for private investment;
- include the poorest in the formal economy;
- five priority reforms to increase economic productivity; and
- establish a timetable for gradual opening of the economy.
The best social policy for Brazil is: to get its economy growing again.
This should be the priority agenda of the government, congress and judiciary.
Growth of the economy is the lever – for creating new business and generating new jobs, attracting private investment, boosting productivity growth, and opening of the economy.
The momentum provided by economic growth enables workers to earn more; and the government to collect more tax; and makes any income transfer program more financially sustainable.
Economic growth is also the sole means of avoiding impoverishment of a nation that wasted the opportunity of its demographic boom, and is beginning to age rapidly. ·
- Brazil is in fact aging faster than France. It took 120 years for France to become a country of the elderly. Brazil will be a white-haired country in 20 years.
We suggest: a task force for recovery of growth
Congress, government and judiciary need to be weaned from their corporatist agendas – and focus their attention on the agenda that’s truly in Brazil’s interest: recovery of growth.
To achieve this, VirtuNews suggests: creation of a task force, of the leading figures of the three powers, to resolve 4 questions:
1. How can we urgently reduce legal insecurity?
Investors’ confidence has been whittled away by legal uncertainty – it must be restored, to eliminating barriers to resumption of investment in infrastructure.
There are hundreds of government and other priority projects halted, which don’t leave the drawing board because of resistance from political corporatism and state bureaucracies. One vast, glaring example is development of water and sewerage infrastructure – which could release massive investment immediately.
2. How to bring the poorest into the formal economy?
From 2001 to 2013 per capita income growth was destroyed for Brazil’s poorest by increasing poverty, record unemployment, hits from the Rousseff government’s economic policies, and finally Covid-19.
3. What five priority reforms must be passed to boost productivity of Brazil’s economy?
A commitment must be made to pass them by the end of this year.
4. What exact timetable can we now set for gradual opening of the economy – enabling the country to become more competitive in the global markets over five years?
If we do not answer these questions urgently, competently and effectively, Brazil will continue to be condemned to low growth, record unemployment, and its high place on the world’s Olympic podium of inequality.