© 2017 Ipsos.

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Public Opinion & the

Brazil Infrastructure

AgendaCliff YoungPresident, Ipsos Public Affairs

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Agenda Convergence

© 2017 Ipsos.

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Effective Public Policy Outcomes

A Technically Sweet Solution

Public Priority

Agenda Convergence

4

The Brazilian Infrastructure Agenda

© 2017 Ipsos.

58%

16%

17%

17%

19%

19%

21%

25%

26%

29%

29%

29%

30%

31%

31%32%

32%

32%

34%

37%

40%

42%

45%

45%

46%

51%

62%

China

Germany

France

India

Japan

Saudi Arabia

Poland

Peru

Canada

Australia

Great Britain

South Korea

Chile

Spain

Global

Sweden

Turkey

US

Russia

Belgium

Mexico

Colombia

Italy

South Africa

Argentina

Hungary

Brazil

Dissatisfaction with Infrastructure: Brazil leads the Pack!

62% of Brazilian respondents are

not satisfied with their national infrastructure

Ipsos Global @dvisor Polls, September 2016 among 18,517 global respondents

© 2017 Ipsos.

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Infrastructure is not a priority in Brazil today!

53%

49%

45%

44%

29%

23%

22%

11%

9%

7%

3%

3%

Unemployment & Jobs

Crime and violence

Health care

Corruption

Education

Taxes

Poverty and Social Injustice

Inflation

Moral decline

Infrastructure

Terrorism & Extremism

Threats against the environment

Ipsos Global @dvisor poll conducted January 20 – February 3, 2017 among 18,557 global respondents

© 2017 Ipsos.

7Base: 1200

INFRA4) How much you do agree with the following statements:

Infrastructure trails other areas as an investment priority

65%

59%

52%

20%

Health

Job Creation

Education

Infrastructure

8© 2017 Ipsos.

Discussions on Infrastructurein Brazilian Social Media

Discussions on Economy in Brazilian Social Media

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Linking Infrastructure to Higher Order Priorities

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Linking infrastructure to the economic agenda

80%

73%

Infrastructure projects can be animportant mechanism for job

creation in Brazil

Investment in infrastructure willguarantee Brazil's long-term

economic growth

long-term

economic growth

jobcreation

Ipsos poll conducted October 7, 2016 among 1,005 US adults

© 2017 Ipsos.

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Jobs over long-term economic growth

Base: 1200

INFRA5) Which of the following phrases better reflects your opinion:

65%4%

31%Brazil should invest more in infrastructure to generate more jobs

Brazil should invest more in

infrastructure for long-term

economic growth

Don’t know

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Infrastructure:Meaning & Concepts

Be specific Be concrete

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What infrastructure means to people: It’s Public and Specific

Ipsos poll conducted October 7, 2016 among 1,005 US adults

© 2017 Ipsos.

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Specific priorities within Infrastructure

42%

51%

52%

53%

61%

62%

67%

67%

67%

77%

Airports

Nuclear infrastructure to generate…

Water supply and sewerage

Energy-generation infrastructure…

High speed broadband

The local road network

New housing supply

Rail infrastructure - track/stations

The motorway/major road network

Flood defences

Top Global Priorities: Water Supply &

Sewerage and Roads

Ipsos Global @dvisor Polls, September 2016 among 18,517 global respondents

15© 2017 Ipsos.

Discussions on Infrastructure Discussions on concrete projects associated with infrastructure

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Infrastructure is a bad word in Brazil!

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Corruption and Infrastructure

Base: 1200

INFRA9) : How much do you agree with the following phrases:

58%

All companies in the infrastructure industryare involved in corrupt practices

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Lava-Jato...

Base: 1200

LJT3) I will read some opinions that people have regarding Operation Lava-Jato, please, tell me if you agree or disagree with the following onionions:

95%

Should continue with theinvestigations, whatever the

cost?

19

And Problem with the Messengers

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Government, however, does not have the credibility

Ipsos Global @dvisor poll conducted November 2016 among 16,096 global respondents

Global Latin America Brazil USA

Political Parties 14% 10% 9% 18%

The Government 24% 23% 13% 30%

The Media 27% 32% 30% 27%

Big Companies 32% 36% 43% 36%

Banks 34% 41% 34% 42%

International Institutions 36% 48% 42% 32%

The Justice System 38% 20% 41% 47%

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What do we do in such a low credibility environment?

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Government still seen as the primary stakeholder in infratructure (Government-Private Sector)

% who is primarily responsible

Base: 1200

INFRA8) In your opinion, who is primarily responsible for for investments in the ... sector:

30

27

22

22

18

15

11

6

2

-6

-18

Water and sweage treatment

Oil Drilling

Power generation

Highways

Power transmission

Railways

Ports

Airports

Mining machines

Telecommunications

Construction

23

Building credibility through concrete measures

© 2017 Ipsos.

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Transparency is key

Local communities’ views on plans for infrastructure should be heard properly, even if it means delays. Agree.

74% 72% 72% 71% 70% 68% 67% 67% 67% 66% 65% 64% 64% 62% 62% 62% 61% 60% 60% 59%55% 55% 53%

47%44%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Ipsos Global @dvisor Polls, September 2016 among 18,517 global respondents

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Anti-System Sentiment: Brazil and the World

© 2017 Ipsos.

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Global Belief in a Broken System: Populist Politics

Ipsos Global @dvisor poll conducted November 2016 among 16,096 global respondents

Global Latin America Brazil USA

Traditional parties and politicians don’t care about people like me

63% 71% 68% 67%

Economy rigged for advantage of the rich and powerful

69% 74% 72% 70%

When jobs are scarce, employers should prioritize hiring people of this country

over immigrants53% 59% 53% 58%

Need a strong leader to take it back from the rich and powerful

63% 70% 66% 69%

© 2017 Ipsos.

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System is Broken: Caudillo Syndrome

Our country is rich Yet so many poor people

Why? Because the rich steal

We need someone strong who understands the poor to help the poor

Sometimes a strong leader may need to

bend the rules

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Summary

• It is a Jobs and Economy & Quality of life Agenda

• Infrastructure is not high on the priority list. Need to make it so.

• How: Frame infrastructure in economic terms

• Increase the conversation

• You have credibility gap and must recognize it

•New Global Political Super-Cycle: Anti-System & Populism

© 2016 Ipsos 29

Clifford YoungPresident, Ipsos US Public Affairs

Clifford.Young@ipsos.com

312.375.3328