Recte Rempublicam
Recte Rempublicam
GerereGerere
Gerindo a coisa pública corretamente
Management
of the Public Good
Gerindo a coisaProper
pública
corretamente
Proper Management of the Public Good
RIO WITH ITS EYES ON THE PRIZE
2016 Summer Olympic Games
FIRJAN NY BREAKFAST
Joaquim Vieira Ferreira Levy
Secretaria de Fazenda
October 2009
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Brazil’s fundamental sources of strength
20+ years of regular
elections
20 years of trade
liberalization
15 years of price stability
10 years of fiscal targets,
established after deep fiscal
restructuring at all levels of
government
Strong banks, with high
capitalization and credible
supervision
Innovative social policies,
with more jobs and education
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Credibility in Policies
CPI – Target zones and actual realization
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Diversity in Trade
Main Exports
Trade surplus
Tranps Equip
Steel
Chemicals
Machinery
Main Partners
40
35
30
25
2000
20
2008
15
Jul-09
10
Other
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Sound Net External Position
External Debt as % of GDP
Climbing the rating ladder
External Debt and Ratings
Risk Premium and X rate
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
A strong domestic market
Auto production and sales
Wages and inflation
Investment
Domestic Credit
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Also helped by an active fiscal policy
Fiscal Balance % GDP
Fiscal strength has
allowed the government
to move ahead with
investment plans
PAC
B
R
A
S
I
L
– National
Program to Accelerate
Growth is helping public
investment since 2007
PAC will inject R$ 600+
billion in federal, public
enterprises and
subnational projects
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Fiscal can still provide a cushion
Ext. public debt & Reserves
12-month Primary and Nominal
Consolidated Fiscal Balance as % of GPD
primary
Net public debt/GDP
nominal
Structural surplus by States and
Municipalities
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
There is a large monetary cushion
Real Interest Rates above 5%
Inflation-indexed NTN B bond yield
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
… and an external cushion,
Energy Independence
Oil demand/production
A hot open capital market
Foreign Participation in Stock and Fixed
Income markets
Small External Obligations
Interest Payments/Exports
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
… as well as a political cushion:
Stability breeds a new environment
• Economic stability in Brazil has allowed people, firms, and government to focus
on micro issues, putting a premium on service delivery and management issues
• subnational governments are responding to the new environment
in the same way companies did in the 1990s when competition and
stability forced them to change the way they operated and improve
the services they delivered.
• currently, there is a healthy competition among subnational
governments – good managers have been rewarded by winning
elections and attracting new private investment to their states
• the federal government relies on states to conduct the PAC
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
V
i
s
t
a
Recent changes at
subnational
level are best
C
h
i
n
e
s
a
illustrated by
the turn around
of Rio de
Janeiro
R
I
0
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Rio is a world class economy
With a US$ 200 billion GDP, the state has a diversified and
open economy
R IO D E J A N E IR O
P o p u la tio n .0 0 0
A re a k m 2 0 0 0
G D P B illio n U S $
1 5 .3 8 3
43
2 1 6 ,4
A rg e n tin a
4 0 .3 0 2
2 .7 6 7
3 3 8 ,7
C h ile
1 6 .2 8 5
757
1 8 1 ,5
C o lo m b ia
4 4 .3 8 0
1 .1 3 9
2 4 9 ,8
V e n e zu e la
2 6 .0 2 4
912
3 3 1 ,8
C ze ch R e p u b lic
1 0 .2 2 9
79
2 1 7 ,2
H u n g a ry
P o rtu g a l
9 .9 5 6
93
1 3 1 ,4
1 0 .6 4 3
92
2 5 5 ,5
M a la ysia
2 4 .8 2 1
330
2 1 4 ,7
P h ilip p in e s
9 1 .0 7 7
300
1 6 8 ,6
1 3 5 .0 3 1
924
2 2 0 ,3
4 3 .9 9 8
1 .2 2 0
3 0 0 ,4
N ig e ria
S o u th A frica
h ttp s ://w w w .c ia .g o v/lib ra ry/p u b lic a tio n s /th e -w o rld -fa c tb o o k /fie ld s /2 1 9 5 .h tm l (2 0 0 8 e s t)
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Oil: one more factor to Rio´s energy
 Rio produces 80% of Brazilian
oil (1,7 mm bbl/day) and is
where the PRE-SAL Tupy field
is located
 A 50+ US$ billion investment
portfolio unaffected by crisis
 Oil revenues channeled to
pension & environment
protection funds
 Government focus is on
service delivery, including
improved personal and
business security
Fiscal Accounts of State of Rio de Janeiro
R$ M M
2004
2005
2006
2007
2008
Prim ary Surplus
Fiscal Balance
2.212
558
2.223
80
1.850
(319)
3.064
457
14
4.924
2.283
Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Rio: strong in knowledge and financial
services
•Securities Exchange
Regulator
•Insurance Regulator
•FioCruz (Pharm, Health)
•Cenpes (oil-gas)
•IMPA (math)
•Central Bank open market
desk and self regulation
financial institutions
•National Science Academy
•Brazil Development Bank
•½ million college students
• Major Pension Funds
(Petros, Previ, Eletros)
• Insurance/Reinssurance
entrants (Lloyds´s) and IRB
• Asset management funds
• CBPF (Physics)
•Leading schools of
economics
•Headquaters of largest
telecomm companies
(Oi-telemar, Embratel)
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Rio de Janeiro: prime logistic platform
70% of Brazil s GDP is within 500 mls
Nuclear Sub Shipyard
BR 040
BR 116 Bahia
Nuclear Angra Plant
Old Refinery
Dutra
Airport
COMPERJ
Arco Rodoviárioroad Beltway
PORT (Itaguai)
and Thyssen
mill
Porto
do Açu
PORT of Rio
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Goals of current administration
Overhauling public finances pays
for:

 Rail service that gives people
comfort and mobility to work,
while reducing gas emission
 New plants that are changing the
sanitation landscape and cleaning
the Guanabara Bay
Sanitation Plant of Alegria – concluded in late
2008, after 12 years of construction
 New health care facilities and
working positions
 Straightforward security policies
 All PAC counterparts and more
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Recte Rempublicam Gerere
2007
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Olympic
games will
foster
confidence
and focus
public
policy,
setting
deadlines
2009
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
… and now on…
Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Obrigado
Thank You
Rio de Janeiro, o melhor
Thank you !
lugar para trabalhar
Rio de Janeiro, the
best place to work
[email protected]
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Recte Rempublicam Gerere
Gerindo a coisa pública corretamente
Proper Management of the Public Good
Thank you
Teresópolis
Niterói
Campos
Costa Verde
Sefaz/RJ – excelência de serviços
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