Since the creation of this blog in 2010, its counter of visualizations doesn't work and the same is happening with my YouTube channel since its creation in 2020. For no reason, I'm being harmed in so many ways and for so long. Why can I not have a YouTube channel and blog with their counter of visualizations working like everyone else? However, all the world is demanding justice and equality. The Brazilian institutions including from the government must do more to increase political inclusion, fairness, innovation and productivity. The world is demanding a fairer, inclusive and better Brazil, because they know about our huge potential and it must be heard for all. If you want to know my channel here is the link https://youtube.com/@lucianofietto4773?si=KvQJG6g3z4r_ziJi This post is a summary of the same book from last weekend, book published in 2023 at https://www.worldbank.org/en/country/brazil/publication/brazil-future-towards-productivity-inclusion-sustainability
The policies that Brazil needs in the next 20 years to respond to the megatrends are the same policies that enable an economy to innovate. Brazil needs policies to support growth and to boost productivity through innovation. These policies can be placed into categories that complement the levels of innovation: institutions that stimulate competition between firms and lower barriers to technological transfer, efficient allocation of resources to markets, removal of distortions in the financial markets, and high skilled workforce. Other reforms are not removing barriers to innovation levers but about realizing their potential to raise productivity. For example, a reform in the financial market would be to extend to housing and rural credit lines. Because the innovation levers are influenced by government capabilities, reforms to raise public sector productivity should also be a priority. Policies are needed to attract and retain FDI, in particular in key service sectors that are enablers for the rest of the economy. Reducing restrictions on FDI in modern services can enhance inflows of technology and capital into modern services like ICT, finance, and business services. Brazil faces opportunities and challenges on its way to higher productivity growth through innovation. First, higher levels of competition are desirable. Second, Brazil still needs to improve the quality of its education and expand it at all levels. Third, adopting tech from more advanced economies, through FDI and trade, can boost productivity by enabling adaptive innovation. Fiscal policy is one key lever for Brazil to shape its future. But fiscal space is limited. Brazil is spending an increasing share of its budget on interest payment. Public spending on education increased as a share of GDP in recent years, despite a reduction in the number of students in the system due to demographic changes and migration to private schools. Population ageing opens a opportunity for Brazil to improve educational outcomes without putting too much pressure on the government budget. Brazil invests too little in infrastructure. Spending has fallen dramatically over the years, from about 4.8% of GDP in the 1980s, to just over 2% in the 2010s, and to only 1.6% in 2020. Brazil has one of the strongest public-private investment frameworks among Latin American countries that could prove a major boon as Brazil steps up its infrastructure priorities. Social trust affects Brazilians' perceptions of the future in ways crucial for long-term policy planning. Trust not only affects the credibility of promises to deliver public goods, but also shapes citizens' expectations and the ways in which they decide to plan for the future. Improvements in subjective well-being coincided with rising per capita incomes and growing political inclusion. Polling data show that citizens are deeply concerned with the quality of public services. Recent findings from the IPSOS survey commissioned for this study about Brazil's future, citizens consider the improvement in education and health as priorities to eliminate poverty, alongside giving the poor more voice. Improving safety to increase trust. Although it has decreased in recent years, Brazil is still one of the most violent countries in the world, with a homicide rate of 30.4 per 100,000 inhabitants (IHME 2021). Violence can have serious consequences on the safety, leading to an environment of fear and mistrust. It also generates economic burden. According to President's Executive Office (2018) the cost of criminal activity in Brazil have escalated to R$285 billion in 2015. This can be achieved by deterring and controlling violence through higher conviction rates and more severe punishments, as well as by reducing environmental and individual risk factors for violence, through community interventions that build social capital and cohesion, and by allowing conflict resolutions through negotiations. Sustainable economic and social progress requires governments to make decisions that go beyond responding to the short-term needs of voters. Trust in government in Brazil is lower than in other countries, and particularly among the better educated, women and urban dwellers. According to Gallup World Poll, fewer than 30% of Brazilians trust government. Interpersonal trust is also exceptionally low in Brazil, even when compared with other Latin America countries. The worst scenario to Brazil is to keep its low productivity, low inclusion and environmental degradation, so this is what can happen. Following years of highly uneven service delivery and low job creation, the country is now approaching a new state of crisis. And the population seems to have lost faith in government and policymakers. The middle class and the poor are fed up with the lack of progress, the diminishing job opportunities, making them more susceptible to populism and clientelistic policies. Agreeing on a set of key performance indicators could help Brazil keep track of its progress. Selecting such indicators would allow governments and citizens to monitor which scenario the country is likely to moving into and take corrections as needed. Continuous innovation is critical to making progress. Too many Brazilians are still kept from contributing to their own fortunes and their country's economy, a major missed opportunity. At the same time, the old growth model will not deliver future prosperity, especially given the headwinds of megatrends. There are risks to inaction, and major opportunities from action. This book provides many entry points for the latter
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