The BNDES support to local production and innovation systems

Transcription

1 The BNDES support to local production and innovation systems Globelics Academy Seminar Tampere, 23 May, 2013 Helena M M Lastres l hlastres@bndes.gov.br Office for Local Innovation and Production Systems and Regional Development SAR/BNDES

2 World Crises of the 3rd Millennium Main countries leading global expansion Real variation of GDP (moving average - 4 years) Advanced economies vs. Emerging economies Emerging Advanced Source: IMF/WEO sept./2011 and jan/2012 update. * : forecast Forecast

3 The Brazilian economy in the 2010s Domestic market leading economic growth Economic Policy Policies for social inclusion Inflation targeting Sound fiscal policy Floating exchange rate with reduced volatility Use of financial and regulatory instruments Measures to boost competitiveness Good external solvency indicators A robust banking sector Investment opportunities: Agribusiness, Oil & Gas, Energy, Logistics, Domestic Market Led Investments, World Sport Events...

4 Low unemployment rate with a consistent job creation Unemployment Rate (%) Net Jobs Creation (thous. of jobs) (*) On 12 month basis up to Sept. 12 Source: IBGE.PME and Caged. Produced by APE/BNDES

5 Sound macroeconomic fundamentals: Declining Net Public Debt/GDP Consolidated Public Sector Net Debt (% of GDP) Source: Brazilian Central Bank.

6 BNDES and Multilateral Banks US$ million Total Assets Shareholders Equity Net Income Loan Disbursements Capitalization ROA (%) ROE (%) Established BNDES IDB IBRD CAF China DB Dec 31st, 2011 Jun 30th, 2011 Jun 30th, 2011 Dec 31st, 2011 Dec 31st, ,76% 22,13% 12,36% 29,49% 7,9% 1,65 0,02 0,30 0,71 0,8 23,12 0,10 2,40 2,39 9, IDB = Inter-American Development Bank IBRD = The International Bank for Reconstruction and Development (World Bank) (*) Unlike other institutions, 12-month fiscal year ends June 30th CAF = Corporación Andina de Fomento CDB = China Development Bank Capitalization = Shareholders Equity / Total Assets ROA = Return On average Assets ROE = Return On average Equity

7 BNDES Highlights Founded on June 20th, % state-owned company under private law Key instrument for implementation of Federal Government s industrial and infrastructure policies Main provider of long-term financing in Brazil Support to micro, small and medium-sized companies Brazilian Export Bank

8 Annual Disbursements Despite the international financial crisis, that became more severe in 2008 s second semester, BNDES performance broke a record in Disbursements amounted to R$ 92.2 billion, representing a growth of 42% as compared to ,4 168,4 139,7 155,9 35,1 11,7 40,0 13,8 47,1 19,8 52,3 24,1 64,9 34,0 92,2 49,8 71,6 96,3 82,3 78, Converted to US dollar on the disbursement dates R$ Billion US$ Billion Average growth of 22% in disbursements during the period

9 Supporting Employment and Investments Investments supported and jobs created due to the BNDES 20% 25% 20% Investiments supported by the BNDES / Total national investment (GFCF) 22,6% 19,7% 21,7% 15% 16,7% 15% 10% 5% 10,1% 10,9% 12,1% 11,4% 12,5% 3,5% 3,9% 4,1% 4,4% 5,3% 13,0% 7,2% 10,8% 9,9% 10,5% 9,8% 10% 5% 0% Source: BNDES * BNDES Forecast Jobs created or maintained due to the BNDES / Total registered employment at the end of the year * 0%

10 Disbursements by Region 2011 R$ billion North 10,9 Northeast 11,3 18,8 Midwest 68,2 Southeast 29,6 South

11 BNDES: strategic priorities Creation in 2007 of two units at the Presidency Office aiming at discussing new policies for innovation and regional, local and environmental development Committee for Production Systems, Regional Development, Innovation and the Environment and Secretariat for Local Innovation and Production Systems (LIPSs) and Regional Development Main Purposes Bring the BNDES sector insights and operational areas together in order to build a systemic vision of development Contribute to incorporating the priority to regional and local development Propose new policies to support production and innovation systems, as well as regional and local development within a long-term sustainable perspective 11

12 The BNDES strategy for LIPSs and Regional Development Support to structuring projects and their surrounding areas, mainly in developing regions, in order to disseminate and foster development, by encouraging: enhancement of 3 types of LIPSs aiming at enrooting development and adding value to goods and services locally produced; and New policy with three main axes Representative and coordinating organism = companies + national, regional and local government + civil society + others Territorial development agenda, with specific targets, time schedule and budget Participative financial mechanism, such as collective funds 12

13 The BNDES strategy towards LIPSs and Regional Development Support for state plans for integrated development priority to the mitigation of regional imbalances Includes the support of LIPSs for social inclusion with nonreimbursable funds Support of national and regional policies and programs Individual and collective support for acquisition of production inputs by Small and Medium-size Enterprises innovation and technological assistance and services Ex. BNDES Card has significantly enlarged the reach of BNDES support within the different regions of the country 13

14 The BNDES strategy for LIPS and Regional Development Mapping and Policies for Local Innovation and Production Systems (LIPSs) - Commissioned study involving 200 researchers in the five Brazilian regions Main Purposes Consolidate knowledge on identification and mapping of Local Production Systems Analyze different LIPSs and trade flows of goods and services Assess existing support policies and provide means to design and improve policies for LIPSs in Brazil

15 Local and regional teams Importance of the knowledge and capacity of professors, post-graduate students and other researchers specialized in IS, LIPSs, regional and local development in: obtaining, processing and evaluating information revealing local production and innovation structures, their linkages, potentialities and requirements exchanging and cross-fertilizing experiences and recommendations of different parts of the country translating gathered information into policy prescriptions helping to connect and inform local, regional and national policy spheres and organizations 15 15

16 Results of research program Advances in mapping LIPSs GeoBNDES identification of around 700 LIPSs already supported by different types of promotion agencies in 22 Brazilian states Analysis of LIPSs relations with trade flows between states and with other countries what goods and services are imported from other regions and could be produced locally? Assessment of policies and instruments and recommendations for a second generation of LIPSs policy support with a central focus on inclusive and sustainable development 16 16

17 Supporting innovation and LIPSs: the Brazilian experience Main lessons learned need to overcome the imitative, mimetic syndromes in the use of analytical and policy concepts and methodologies alert to the use of concepts, indicators and models that dissociate social from economic development are capable of reaching only a limited group of those most visible actors, activities and regions of the world foreign experiences, concepts and models should broaden our knowledge and not limit our intelligence significant part of the negative results of the innovation and LIPSs policies implemented - creation of disparities, chasms, abysses and supposed paradoxes - derive from decontextualization 17

18 Need to put into practice long-term sustainable development strategies Overcome the restrictions of traditional policy concepts, models and indicators based on comparisons, which 1. usually lead to direct, non-critical and non-contextualized incorporation of policies, seriously contributing to reinforce inequalities 2. focus on the intensity in the use of materials and energy GDP versus GDH 3. lead to competition, which - besides inducing disputes among countries, regions and their blocs - also carries a restrict concept of competitiveness, reinforcing the tendency of stimulating the use of spurious competitive advantages, based on low wages and other work conditions; and intensive use of non-renewable resources within very short-term perspectives 18

19 Advance the design and implementation of modern, sustainable development policies Highlights on the need to contextualize policies the opportunities brought by a new development pattern based on collaboration and on the implementation of solutions for global problems such as inequality and sustainability from the production and innovation spheres to the institutional frameworks Growth based on the domestic market and the basis of social inclusion with improved distribution of income and innovation with environmental sustainability are fundamental ingredients for the new policy models for development (Coutinho, 2012) 19

20 Requirements of a new sustainable pattern of development: five guiding strategies 1. To negotiate and articulate public and private interests in a new and long term sustainable and indivisible development pact 2. To put long-term planning back at the heart of decisions, going beyond budget and short terms issues, highlighting the importance of inclusive participation 3. To contextualize policy objectives and methodologies, orienting them to the promotion of local, national and regional capabilities and the exploitation of potentialities 4. To advance in the definition and use of self-designed policy goals, concepts, models, indicators and evaluation systems 5. To incorporate a systemic and inclusive view aiming to articulate and to mobilize synergies so as to create and strengthen production and innovation capacities 20

21 How to make the urgent and necessary changes? Conceiving and developing new indicators to orient and assess efforts as the easiest and most effective way to speed up the adoption of the new generations of policies include and harmonize environmental and social sustainability criteria (green, blue and red), from the beginning, in public and private development policies (Sachs, 2012; Laplane, 2012) All public efforts and private business strategies should be assessed in order to positively move in the direction of higher social cohesion, total effectiveness of rights, and care for the environment. Kosakoff, 2012

22 How to make the urgent and necessary changes? Responsibilities of the new era Countries and organizations that are not leaders/comited to the present production paradigm can offer and implement better alternatives and have a fundamental role in re-orienting development (Sachs, 2012) by contributing to the formulation and dissemination of new development alternatives by conditioning financing and establishing targets so that changes can be implemented by primarily or only financing projects in accordance with the requirements of sustainable development in the third millennium by designing and implementing assessment systems that are able to operate the necessary transformations

23 Crisis, new development pattern and the need for policies Crisis and pressures for a new production regime Geo-political and economic structuring Urgent requirement for new policies capable of fostering deep-rooted, knowledge intensive, inclusive, cohesive and sustainable development, based on a long term perspective Significant opportunities for research and policy agendas need to develop and use advanced and adequate analytical and policy concepts, indicators, methodologies and models role of policy-makers, professors and researchers role of Globelics, its network, research activities, conferences and academy 23

24 Thank you very much! 24