Study Shows A Good Plan Could Leverage Industry Development In The Country

Industrial development in Brazil has shown a comeback in recent years. The question reflects the histories of emerging countries, which demonstrate that it is rare to return to technological progress once it has been paused. Today, according to an analysis carried out by the World Bank, Brazil is not even among the 17 main industrial producers in the world. In addition, manufacturing, which represented a quarter of the national GDP, today does not reach 9%.

According to Professor Paulo Feldmann, from the Faculty of Economics, Administration, Accounting and Actuarial Science (FEA) at USP and a researcher in the area of ​​industrial policy at Fudan University (China), in the world, Brazil is the country that has deindustrialized the most. The reasons for this to happen are diverse and affect other areas of Brazilian public policy.

Historic
The specialist comments that it is necessary to understand the reasons for this to have happened, since the industrial weakening in the country is presented as a reflection of the problem of the business environment in the national territory. As an example, we have transport logistics in Brazil, which, because it is by road, in addition to being expensive, is not very functional. The country also has a very high tax burden, which harms the internal development of the industrial sector, and the quality of the workforce still does not meet the necessary demands.

The biggest problem for the issue, however, seems to lie in the fact that we do not create any support or differentiation for Brazilian companies. “All countries in the world have measures, incentives and forms of support for their local companies. Brazil is the only country that does not have these incentives”, adds Feldmann. It is also interesting to note that the Brazilian legal apparatus does not help industrialists, since even foreign branches are considered Brazilian when located within the country.

To resolve the issue, it is essential that we protect local businesses. The professor comments that actions are necessary “for them to compete on an equal footing with foreigners”. In addition, Brazil needs a well-structured industrial plan, its formation was postponed due to the belief that the market would solve the situation gradually, which did not happen, therefore, it is necessary to plan and define the role of the State.

Change
There are some sectors that must be prioritized to leverage the industrial plan in question. According to Feldmann, some sectors from the past do not present a viable recovery, but he reinforces that Brazil has a unique characteristic: the abundance of renewable sources for energy generation.

The biggest obstacle for the development of these areas, today, is found in the lack of knowledge for the manufacture of the necessary materials for the operation of these energies. Thus, Brazil is hostage to the export of materials and equipment from other countries, when it could be producing. In addition, it presents itself as one of the greatest sustainable powers in the world, but the development of different areas must be encouraged for this to occur.

It is also important to highlight that promoting the industrial sector does not mean that the agricultural sector will be left aside, but that a new area, which can help in the social development of the country, will receive more attention from the public sector. Another important highlight for the theme is the need to carry out this plan in a lasting way, it being important to understand that it should not be maintained by a single government.