Brazilian Bank of Economic and Social Development
The visit to the Brazilian Bank of Economic and Social Development (BNDES) gave us a historical perspective on the various changes in the Brazilian economy. The privatization in the 1990s has helped Brazil not only to open many industries to new investors but also secure its position as the economic powerhouse in South America. Brazil’s strength in high-demand areas – such as oil production, car manufacturing, and telecommunications – should help the country realize steady economic growth in the future. – Myla Lopez
A prevailing theme included the social issues of the poor. In Brazil, we visited a “Favella,” a neighborhood run by druglords with its own rules. Our guide, Gabriel, explained that if the leadership of the Favellas peacefully coexisted, their consolidated power could overthrow the Brazilian government….thankfully they maintain their rifts. BNDES’s social development area acts to promote financing of projects including modernization and improvement of basic social services in health and education and creation of job opportunities through financings to micro-entrepreneurs and enterprises managed by workers. The issues of safety, environmental and health standards were illustrated by Petrobras’ commitment to safety of operations and protection of the environment/human beings especially after its recent tragic accident.
Our
visit to BNDES also illuminated Brazil’s focus on privatization and the
government’s opening of the economy to foreign investors.
Brazil’s desire to privatize to create a competitive environment by
granting public service concessions to the private sector reduces the cost of
production and delivery of goods and has resulted in transparency in
transactions. In the 90’s,
Brazil’s priorities included privatization, trade liberalization, deregulation
and the “Real Plan” stabilization program.
I learned that as a government-owned enterprise, BNDES finances long-term
investments, foreign trade operations, and coordinates studies of public/private
investments to improve the competitiveness of the economy. – Shoshana
Another
element of the trip was local versus multinational companies. By being able to visit Brazilian and Argentinean companies we
were able to get a different view on business in Latin America.
The companies that we had been studying before we began our trip were all
multinational companies. They all
have a global approach in some form or another.
It was interesting to see that the Brazilian Bank of Economic and Social
Development (BNDES) is also a global player to some degree.
The United States, Spain, and Portugal are among some of their main
foreign investors. However, it’s
work focuses mostly on the Brazilian economy and social programs within the
country. – Schlott