Brazil – Government Policies

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

2. Governmental Structure

3. Social Policies

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

5. Energy and Environment Energy policies 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? • Focus on energy efficiency and renewable energy • Petrobras- Tupi oil reserves • Bioenergy - Ethanol • Price control – CIDE tax

6. Energy and Environment

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

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

9. Thank you