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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.
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Brazil – Government Policies Social, Fiscal, Monetary, Environment and Energy Policies Whitney HamnettPirkle Bhushan Holê Niraj Shah David Welguisz Ben Carter Nisarg Mehta
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
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
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
Take Aways • Dynamic, complex emerging power • Interdependent government policies • Economy vs. Social • Energy vs. Environment • Open border vs. Protectionism • Challenge – Balancing act