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NATIONAL DEVELOPMENT PROJECT

Ciro Gomes and the Brazilian Industrial Policy

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Industrial policy is still the center of a national project

The calls for a "post-industrial" economy are still nothing more than discourse of highly industrialized nations. Although the pattern in the world is the decrease of the participation of the industry in the GDP, it is the production of high value-added that guarantees balance and advantages in the trade balance. If we become an exclusively agro exporting nation, we will be condemned to misery and to a global peripheral position, without the resources to sustain patterns of consumption of imported high added value products.

We have to negotiate between government, employers and employees a new industrial policy as part of a national development project. A nation has to choose what it will import and what it will produce domestically to finance its consumption. No nation today can produce everything, much less import everything.

We have no industrial policy

The fall in prices of   commodities   agricultural and mineral resources and our deindustrialization have made our balance of payments unsustainable. Industry that has already accounted for 36% of GDP in 1985 has returned to 1910 share levels and may reach 9% of GDP this year. Reversing this scenario requires state planning, investment, and command. In the last three years the Brazilian industry has again experienced processes of dismantling and denationalization. It does not have access to credit with interest rates of international standards, does not scale because of our still small domestic market and is three generations behind technologically. It also faces an unrealistic and depreciated exchange rate and has no protection whatsoever, as does the national industries of developed countries. On the contrary, the current government moves to play in the international market, to be crushed, what remains of our industry of hands and legs tied in the international market to be crushed. As if that were not enough, the only lender in Brazil at interest rates compatible with productive activity, BNDES, became the target of the neoliberal discourse, which, by identifying it as the last defense of the national company, seeks to criminalize its activities credit.

The basic principle: from solid primary base

Brazil was the country that experienced, between 1930 and 1980, the most dizzying industrialization of the twentieth century. We do not need to find a way to industrialization, but to retrace it, adapting it to new times and circumstances. In order to re-industrialize the country, there is no need for nationalization or generalized protectionism, nor is it necessary to prioritize, in the first instance, the development of highly technological sectors in which we are in a totally backward position. At the outset, we have to choose sectors that do not have a great technological backwardness and add value to products that we export in the raw state, in which we will have comparative advantages. There may be, in this first phase, the election of four sectors:

  1. Oil and gas industry complex , which generates a 25 billion mark in the accounts with the outside. Although self-sufficient, we still export crude oil and import it into derivatives that we can easily produce here.
  2. Health industrial complex , which generates a deficit of $ 0 billion in our accounts, although most of the imported chemical components and remedies are patent-pending. The creation of reverse engineering institutes, for example, would solve this problem in a few years and would greatly reduce the cost of our health and medicines.
  3. Creation of an agribusiness industrial complex , a sector that generates 90 billion surpluses, but in which 40% of production costs are imported. Brazil does not produce pesticides or agricultural implements, nor does it process the cereals and fruits it produces, selling them in the raw state.
  4. Industrial defense complex , responsible for 20 billions in annual expenses that could be higher. Brazil can not do without an industry capable of producing basic defense items in the national territory, nor can it continue depending on GPS or foreign satellites for the defense itself.

Cyrus and the way to reindustrialize and grow

Ciro argues that no experience of economic success in the world occurred without five factors. The first is a   low interest rate , which is equivalent to less than the average profit of productive businesses. This is necessary because no one risks investing in industrial production when they can earn more, in security, with interest income. The second factor is a   high internal savings rate , that is, the country has to reinvest a large part of what it produces.

China has its gross capital formation around 40% of GDP, while Brazil holds 15%. The third is a   strong coordination   between government, with investment capacity, entrepreneurs and an academy dedicated to producing the necessary technological advances for growth. The fourth factor is   massive investment in education , as this increases labor force productivity and scientific development. The fifth factor is   maintaining a realistic, stable exchange rate that avoids populism that is easy to import and provides security for the development of national industrial sectors. This clarity of our situation is another reason why we are "All with Cyrus".

BIOGRAPHY SUMMARY

Policy of Ciro Gomes

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At 0 years old. And re-elected on 1986.

1989

Governor of Ceará

Won UN award for reducing child mortality.

1994

1983

Mayor of Fortaleza

And was considered best mayor of Brazil.

1990

Minister of Finance of Itamar Franco

Helped in the Real Plan. One of the lowest inflation in history.

The first candidacy for the Presidency

Number of Votes: 7.426.190 - 10,97

2002

Minister of National Integration of Lula

Responsible for the transposition of the São Francisco River.

2007

Secretary of Health of Ceará

He was then Director of Transnordestina S / A.

1998

The second candidacy for the Presidency

Number of Votes: 10.170.882 - 11,97

2003

Deputy Federal Ceará

With the highest proportional votes in the history of Brazil.

2013

MASS TESTIMONIALS

Why am I with Ciro?

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