Brazil – Government Policies Social, Fiscal, Monetary, Environment and Energy Policies Whitney Hamnett Pirkle Bhushan Holê Niraj Shah David Welguisz Ben Carter Nisarg Mehta

Governmental Structure

Social Policies

Fiscal and Monetary Policy  Fiscal  Tax codes  Infrastructure spending  Healthcare spending  Education Spending  Monetary  DRU –Bank reserve ratio  Inflation target  Central bank Emerging Market – Agriculture, cattle, commodities Challenge  Global economic uncertainty (Euro,China,US)  World cup and Olympics spending  Balancing fiscal and monetary policies

Energy and Environment Energy policies  Focus on energy efficiency and renewable energy  Petrobras- Tupi oil reserves  Bioenergy - Ethanol  Price control – CIDE tax Environment  Balance growth with environmental protection  National climate change plan – stop deforestation  Tax on carbon emission  Reduce nuclear power  Challenge: Can a democratic elected country enact policies to protect the environment?

Energy and Environment

Open Borders vs. Protectionism Open Borders  Require external capital for sustain growth  Encourage foreign investments  Energy sector  Telecom sector  Reciprocity  Example – visa fees Protectionism  Protect Local Industries and Jobs  Payroll tax cuts and subsidies  High Import Tariffs  Currency Manipulation

Take Aways  Dynamic, complex emerging power  Interdependent government policies  Economy vs. Social  Energy vs. Environment  Open border vs. Protectionism  Challenge – Balancing act

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