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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
Emerging Market – Agriculture, cattle, commodities
 Fiscal
 Tax codes
 Infrastructure spending
 Healthcare spending
 Education Spending
 Monetary
 DRU –Bank reserve
ratio
 Inflation target
 Central bank
Challenge
 Global economic uncertainty (Euro,China,US)
 World cup and Olympics spending
 Balancing fiscal and monetary policies
Energy and Environment
Energy policies
Environment

 Focus on energy
efficiency and renewable

energy
 Petrobras- Tupi oil

reserves

 Bioenergy - Ethanol
 Price control – CIDE tax

Thermal
22,3%
Hydro
75,3%
Wind
0,4%
Nuclear
2.0%
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?
Energy and Environment
Open Borders vs. Protectionism
Open Borders
Protectionism
 Require external capital  Protect Local Industries
for sustain growth
and Jobs
 Payroll tax cuts and
subsidies
 Encourage foreign
investments
 High Import Tariffs
 Energy sector
 Currency Manipulation
 Telecom sector
 Reciprocity
 Example – visa fees
Take Aways
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Dynamic, complex emerging power
Interdependent government policies
Economy vs. Social
Energy vs. Environment
Open border vs. Protectionism
Challenge – Balancing act
Thank you