Publication:
Industrial policy in Brazil : a framework

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eng

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Brasil

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BR

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dARK

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Instituto de Pesquisa Econômica Aplicada (Ipea)

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Reproduction of this text and the data it contains is allowed as long as the source is cited. Reproductions for commercial purposes are prohibited

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Discussion Paper 74 : Industrial policy in Brazil : a framework, A política industrial no Brasil : um quadro

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Abstract

Sugere que o Brasil deveria enfatizar políticas horizontais ou gerais, em detrimento a políticas verticais ou setoriais com vistas ao atual estágio de desenvolvimento econômico. Trata das políticas horizontais como pertinentes às perspectivas do Plano Real com sua ênfase na economia de mercado e o papel das autoridades de criar infra-estrutura institucional e física necessárias ao Mercosul e GATT. Apresenta o tratamento dos problemas de infra-estrutura (especialmente transporte), nas áreas de competição e regulação, informação e mercado financeiro como vantagem para a economia geral. Aborda os perigos de corrupção e lobbies industriais com respeito a políticas verticais.

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The arguments of this paper suggest that Brazil should emphasize general or horizontal policies rather than vertical or sectorial policies in the current stage of economic development. Horizontal policies are more consistent with the general perspective on the economy of the Plano Real, with its emphasis on a market economy and the role of the authorities being to create the institutional framework and necessary physical infrastructure.They are also more consistent with Brazil's international obligations under the GATT and Mercosul. The key horizontal policies, apart from the pressing need to address problems of infrastructure (especially transport), are in the areas of competition and regulation, information and financial markets. Well thought out and executed policies in these areas could bring great advantages for the whole economy and not just industry, given that the objective is to promote efficiency throughout the economy. The paper has also suggested that the case for vertical policies is not demonstrated, and has noted the dangers of such policies in the creation of industry lobbies and the possibilities of corruption. Despite the enthusiasm of industry ministers for vertical policies, they should be resisted.

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