GLOBAL DIALOGUE ON THE FUTURE OF PRODUCTIVITY:

TOWARDS AN OECD PRODUCTIVITY NETWORK

Mexico City, 6-7 July 2015

Institutional arrangements to promote productivity

Jackson De Toni

Brazilian Agency for Industrial Developmentwww.abdi.com.br

Jackson.detoni@abdi.com.br

• 1980’s• Closed market; State driven economy

• 1990’s • Abrupt economic opening

• Absence of the State in the Industrial Development Policies

• Privatizations (1995-2000) – Telecommunications, energy, transportation, steel and mining

• 2000’s• Recovery of the State’s role in the Industrial Development Policy formulating

• Competitiveness forums – new governance

• New regulatories frameworks to improve innovation and industrial investment

• PITCE (2004) – Foreign Commerce, Technological and Industrial Policy

• ABDI and CNDI (2004) - a new agency and a new tripartite council

• PDP (2008) – Productive Development Policy

• “Plano Brasil Maior” – the recent industrial policy…

Previous FrameworkIndustrial Policy BRAZIL

Management System

Syst

em

ic C

oo

rdin

ati

on

Un

its

Management CommitteePR/Cabinet Affairs, MDIC, MF,

MCTI, MPCoordination: MDIC

Executive GroupCoordination: MDIC

National Industrial Development

Council

Management and decision-making level

Foreign Trade

Innovation

Investment

Professional Educationand Qualification

Sustainable Production

Competitiveness of Small Businesses

Executive Committees

SectoralCompetitiveness

Councils

Secto

ral C

oo

rdin

ati

on

U

nit

s

Higher advisory level

Articulation and formulation level

Regional Industrial Development

Consumer Welfare

Labor relations and working conditions

created in 2004 toconnect multiple actorsand tro produceintelligence to decionmaking process

Brazilian Agency for Industrial Development

VISION 2018To be a byword for public-private linkage and industrial intelligence and to promote

employment, innovation and transformation in Brazilian industry.

MISSIONTo develop strategic action for industrial

policy and to promote productive investment, employment, innovation and

competitiveness in Brazilian Industry.

Production of Intelligence

Support for industrial development through the implementation of

the portfolio of products and services

Public-PrivateLinkage

Monitoring and evaluate of

Industrial Policy

Main Strategic Objectives

Institutional Role

Institucional criteria applied to brazilian context (Banks paper)

(1) Research and analysis (technical skills)

• It’s reasonable, but the academia knowledge should be“translate” to “real business world”

(2) Mandate to focus on the long term

• Limited by the election cicles, limited long run planning

(3) Independence (funds, quality of researchers, legal constitution)

• Independence of funds, but ambiguity in terms of juridiccondition

(4) Transparency and public control (work to public input and scrutiny)

• Strong control by the audit bodies and several tribunals

(5) Integration with the decision making process (efectiveness)

• Limited by the high complexity of the “political game”

A possible synthesis of brazilian situationWeaknesses/Threats• Democracy as political system with several limitations: rent seeking, conflict

relationship among de republican powers, low accountability and social participation

• High social inequality despite the recent movement to social inclusion

• The recent industrial policies were more counter-cyclical measures (credit and fiscal renounce), than transformative (and structural) initiatives

• Complexity of business environment

Strenghts/Opportunities• The low productivity problem became rapidly a key issue to main national

political actors (social consensus)

• More integration to world economy (some important GVC)

• State bureaucracy relatively well prepared (in weberian meaning)

• New institutions to reinforce the arenas of corporations public-private

Thank youMuito obrigado !