Brasil Maior Plan
The Brasil Maior Plan (PBM)[1], announced in August 2011, joins and articulates the Federal Government’s industrial policy efforts for the 2011-2014 period, with a focus on stimulus to innovation and competitiveness of Brazilian industry. The PBM continues advances obtained through the Industrial, Technological and Foreign Trade Policy (PITCE) (2003-2007) and the Production Development Policy (PDP) (2008-2010).
This legacy includes formulating and implementing systemic and sectorial policies, especially within the context of reacting to the damaging effects of the international financial crisis, which are the cases of the Investment Maintenance Program (PSI) and tax incentives on fixed assets and durable goods.
The institutional aspects are also noteworthy, and relate to the State’s mobilization capacity, its interaction with the business sector and society, and the establishment of follow-up and assessment structures for implemented policies. The PBM integrates instruments from several Federal Government ministries and agencies, whose initiatives and programs are joined in an integrated and comprehensive effort to foster national production as well as generating jobs and income in the country.
The BNDES’ institutional performance
The BNDES participates in the Executive Group[2], a body responsible for consolidating the PBM programs and efforts, as well as for monitoring the results, advising the Managing Committee[3]; and for the National Industrial Development Committee (CNDI)[4], an agency linked to the Presidency of the Republic, with the participation of civil society, which establishes the general PBM strategies, as shown in the following image:
Click on image to enlarge it.
Source: Elaborated by the BNDES, based on data from Brasil Maior: innovate to compete, compete to grow – Plan 2011/2014, p. 32.
In sectorial terms, the 19 executive committees and competitiveness councils are grouped into five blocks of production systems. The BNDES participates in all the committees, either as a coordinator, vice coordinator or a participant.
The launch measures
The plan established an initial set of 35 measures[5], especially of a systemic nature, which will be supplemented throughout the 2011-2014 period, based on dialog with the production sector. The following are highlighted:
- tax relieve for investments and exports;
- expansion and simplification of financing for investments and exports;
- increase in resources for innovation;
- improvement of the innovation regulatory framework;
- stimulus to the growth of micro and small businesses;
- strengthening of commercial defense;
- creation of special regimes to add value and technology in production sectors; and
- regulation of the governmental purchasing law to stimulate the country’s production and innovation.
The BNDES has contributed a total of eight measures, all of which were implemented:
- ISP extension until December 2012;
- Expansion of cash flow for MSMEs (BNDES Progeren);
- Re-launch of the BNDES Revitalization Program (Revitaliza);
- Creation of the BNDES Qualification Program;
- Pre-approved credit for business innovation plans;
- New resources for Finep (R$ 2 billion);
- Expansion of sectorial programs; and
- Creation of a program for the Climate Fund (MMA).
These measures were developed into the following efforts:
| Actions | Objective |
|---|---|
BNDES Credit Limit
|
Revolving credit for the financial support of companies or economic groups, which represent low credit risk, earmarked for current investments in their respective sectors of operation, as well as investments in research, development and innovation. |
| Creation of the BNDES P&G Program | Contribute to the development of the Goods and Services Supplier Chain related to the oil and natural gas sector (P&G). |
The BNDES Progeren Revision
|
Increase production, jobs and salaries by means of financial support for working capital. |
| Creation of the BNDES Qualification Program |
|
|
Re-launching of the BNDES Revitaliza |
|
The BNDES Procaminhoneiro (Pro-Trucker)
|
Financing for the acquisition of trucks, chassis, tractor trucks, trailers, semi-trailer trucks and truck beds, new or used, made in Brazil. |
The BNDES Finame Components
|
Acquisition of parts and components, made in Brazil, for machinery and equipment in their production phase or under development and technological services related to the production or development of machinery and equipment. |
The BNDES PSI
|
Stimulate the production, acquisition and export of capital goods. |
| Creation of the Climate Fund Program | Support the implementation of undertakings, the acquisition of machinery and equipment and technological development related to reducing greenhouse gas emissions and adapting to climate change and its effects. |
| Changes to the BNDES Operational Policies Establish as non-eligible items: the acquisition of imported goods with no domestic manufactured equivalent (except for machinery and equipment) and the expenses incurred from internalizing imported goods with no domestic manufactured equivalent (except for machinery and equipment);
|
Encourage local content. |
Resources for innovation
|
Expand resources allocated to support innovation projects. |
The BNDES’ disbursement to the Brasil Maior Plan (PBM)
The BNDES plays an important role in financing investments in the Brasil Maior Plan’s (PBM) programs and in achieving strategic goals – fixed investment, professional qualification, innovation, diversification of exports, and expanding added-value, among others. In 2011, the BNDES’ support for sectors in the PBM (agriculture and cattle-raising, industry, trade and services) accounted for 86% of the BNDES’ disbursements. Of these, some 55% was allocated to Mechanical, Electro-electronic and Health Systems (Block 1 of the PBM[6]), which encompasses the sectors with greater capacity to transform the production structure due to their strength in disseminating innovation and in inter-sectorial linkage. In the case of strategic objectives, the support for fixed investment was responsible for approximately 70% of releases, and other knowledge-intensive sectors (high and medium-high technology, in the OCDE classification) for 62% of disbursements[7].
1. Brasil Maior Plan: www.brasilmaior.mdic.gov.br.
5. The list with 35 measures can be found at www.brasilmaior.mdic.gov.br.
6. This number includes the acquisition of capital goods (FINAME) by sectors from other blocks.