Brazil – Government PoliciesSocial, Fiscal, Monetary, Environment and Energy Policies

Whitney Hamnett PirkleBhushan HolêNiraj ShahDavid WelguiszBen CarterNisarg 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?

Hydro75,3%

Thermal 22,3%

Nuclear2.0%Wind

0,4%

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

Thank you