Thursday, February 28th 2013 - 06:07 UTC

President Rousseff pledges to cut “Brazil cost” and keeping inflation in check

President Dilma Rousseff said on Wednesday that Brazil must cut its high business costs to become more competitive and vowed to keep inflation in check. The leader anticipated that 2013 will be a year of major infrastructure investments in roads, railways, ports and airports to try to stop bottlenecks from holding the economy back.

“Our country has to change in the direction of greater competitiveness” said Rousseff

The president said Brazil has no choice but to become more competitive and to reduce the costs of doing business and will proceed with such actions as opening up the country's crowded ports to private initiative despite opposition from labour unions.

“Brazil has an unnecessary cost with its ports. We have to open up to competition because the ports are part of the so-called Brazil Cost,” she said at a meeting of government officials and some of the country's top business leaders in Brasilia.

“Our country has to change, and change in the direction of greater competitiveness,” she said.

Brazil's oil industry will take a big step towards tapping the large potential of its sub-salt-level offshore oil reserves with auctions scheduled for November, she said.

Brazil's sub-salt offshore fields are believed to contain as much as 100 billion barrels of oil, enough to supply all US needs for 14 years. Output from the fields is expected to continue to expand to more than 6 million barrels a day by 2020, making Brazil one of the world's major oil producers.

The world economy should improve this year and help Brazil grow, Rousseff said, pointing to China's “soft landing” as a reason for diminished fears of crisis in many countries.

Brazil's economy only grew by about 1% last year, despite a barrage of tax breaks and other government stimulus measures. Most economists expect a rebound in the second half of this year as the effects of those incentives start to kick in.

Rousseff vowed continued commitment to the main pillars of the economic strategy that has given Brazil financial stability for over a decade: inflation targeting, fiscal discipline and a flexible exchange rate.

21 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.

1 ChrisR (#) Feb 28th, 2013 - 11:02 am Report abuse
“Brazil must cut its high business costs to become more competitive and vowed to keep inflation in check”

But she and all the other presidents have carried out policies guaranteed to ensure high business costs with protectionist measures which penalise imports.

And who pays to keep these inefficient companies in business: the consumer does.

No, Brasil has a long way to go before it becomes a true world class country and fixing the market (they think) will always end in tears: and it hasn’t finished yet.
2 gecmartins (#) Feb 28th, 2013 - 07:38 pm Report abuse
At least she understands that the fu**ing unions, whose leaders and members are lazy as hell, get in the way of development.
3 Brasileiro (#) Feb 28th, 2013 - 09:18 pm Report abuse
@ 1
Why do you ever talk about my country. In portuguese: “ Se nós vamos chorar, sofrer, passar fome, isso é problema nosso, porque somos nós que escolhemos nosso caminho. Você não precisa ficar nos alertando sobre nossos erros.”
4 ChrisR (#) Feb 28th, 2013 - 09:19 pm Report abuse
2 gecmartins

Understanding something and doing something about it are two vastly different things.

She gave in to the last union demands didn't she after telling them she would never do such a thing. It may have been the correct thing to do at the time but it hardly sends out the right message.

She needs the coursge and strength of Lady Thatcher to deal with the unions, somehow I don't see it in her despite her history as a cell leader whose cell murdered an American Military Officer in front of his wife and children.

Still, Dilma will need to curb the union powers in some manner, I just don't see anyone in her present goverment who can help her.
5 Brasileiro (#) Feb 28th, 2013 - 09:53 pm Report abuse

Do you dont see, or do you dont can? Please, your true is not our true. Consider that!!
6 Fido Dido (#) Feb 28th, 2013 - 10:03 pm Report abuse
Brasileiro, don't worry much about that moron. 1, it has never been to Brazil but it studied the nation through the web (he knows shit), 2 it claims to live in Uruguay but can't speak one word of Spanish by selling of his gold in uk (lolz), 3 it's moron you cannot take serious and doesn't understand the American continent and never will.
7 Brasileiro (#) Feb 28th, 2013 - 10:08 pm Report abuse
@ Fido Dido

Thanks brother.

one video for you......regalo
8 Ayayay (#) Feb 28th, 2013 - 11:21 pm Report abuse
I'd say at least this leader has real plans to create something.
9 Brasileiro (#) Feb 28th, 2013 - 11:31 pm Report abuse
In Europe maybe. But your mind dont belong us. Our society is very complex to asshole.
10 yankeeboy (#) Mar 01st, 2013 - 02:47 pm Report abuse
If they are not careful Dilma will take Brazil back to the 70s- 80s economy and the last 10 yrs of growth will be long gone.
Stop spending on the poor it doesn't do anything good for anyone. It steal from the working to give to the lazy.
Look at Argentina if you want to see how Socialism can ruin a potentially very wealthy country.
11 ChrisR (#) Mar 01st, 2013 - 04:03 pm Report abuse
@5 Brassiere and @6 Fido Dildo

You two nincompoops deserve one another: the two of you will now be able to rub two brain cells together.

Brassiere: still talking gibberish in pigeon English then? My Espanol is far better than that.

Dildo: found out who is shagging the girlfriend yet? I promise you will be the last to know.

Both of you: despite all your crap NEITHER of you offered a cohesive argument to my post. How pathetic is that?

I get better sense form the argies, that’s how shit you pair are.
12 Brasileiro (#) Mar 01st, 2013 - 04:22 pm Report abuse
@11 CryingR

My englisee is very bad, but you dont have sense. You are a stupid english. Your bad words, make me strong. Your country maybe need more help!
13 ChrisR (#) Mar 01st, 2013 - 06:51 pm Report abuse
12 Brassiere

“Your bad words make me strong”

My words are the truth, given with sincerity as to what will happen next, you moron.

I couldn't give a fuck what you think with this stupid attitude of yours that your country is always right.

No country is always right and my comments come from 47 years of senior positions in the engineering world that used to be Great Britain. Countries get strong by having genuine well intentioned comments put to them.

So tell me, what do YOU suggest to help your country move forward?
14 Brasileiro (#) Mar 02nd, 2013 - 12:43 am Report abuse
@ ChrisR

1) more base education
2) more security
3) more wealth (saúde)
4) another constitution
5) less sindicates
6) less deforestation
7) less parties
6) ports open in ten years (no taxes)
7) less taxes to the people
8) more routs
9) more railways
10) less crack (drugs)
11) more irrigation to the northeast
12) less or out Mercosul (because Brasil is in jail)
13) less army
14) more peace
15) more girls (hahahaha)
15 ChrisR (#) Mar 02nd, 2013 - 11:00 am Report abuse
14 Brasileiro

Thankyou for replying intelligently.

Yes, your English is not perfect but what you have just posted is easily read and you make a lot of sense. Particularly No. 15.

Now, can you see what the real problems are for your country as set out in your list. It all takes lots of money and when Brasil is going down in its revenue it is very difficult to keep money in the reserves to spend on these items.

But you really need these items from what I can see, especially item 7). Reducing taxes encourages people to come out and work and the ones in work to get better jobs or work overtime. The people get more money to spend, the boss gets more money to invest and grow the business and the country (eventually) gets more tax revenue (from more people working and taxes on the business).

This raises money to spend on your list.

Now can you see what a real economy works like?
16 Brasileiro (#) Mar 02nd, 2013 - 07:34 pm Report abuse
Thanks, milorde (hahahaha). Um presente (regalo). Great Cisplatina, dream for imperators, friendship for all brasilians.
17 God.Is.An.Illusion (#) Mar 03rd, 2013 - 12:58 am Report abuse
Let's start cut those ABSURD salaries of the Government officials.
Change the law that allows these people to give themselves an increase.
I propose an 80% cut in the sometimes monthly salaries of eightythousand Reais. Make it a sliding scale throughout the country. A start up to tenthousand inhabitants, and a modest increase for each fivethousand.Of course with a cap.

The bad apples will quickly leave Government. and the good ones, who actually work to improve the country, will stay.
18 ChrisR (#) Mar 03rd, 2013 - 02:26 pm Report abuse
17 God.Is.An.Illusion

Sorry, it does not work that way: in fact, it is the opposite of what happens.

“If you pay peanuts you end up with monkeys” is very true.

The deadheads will stay with the government on reduced pay because they are unemployable: the best one will leave before the axe falls to ensure they get the pick of the jobs.

What should happen is that the managers interview their subordinates (at all levels starting with the ministers) to decide what if anything needs to be done for them to do their job properly:

1) do they need training in certain areas;

2) is the equipment they have to use what is required for them to work efficiently;

3) are they adequately supervised and monitored so as to avoid the errors made becoming insurmountable problems later on;

Only when these and other basic questions are answered can any manager / supervisor make a fair and honest appraisal of each employee. Then comes the painful bit; the ones who are obviously lazy, inefficient and along for the ride need to be got rid off. Staged warnings and retraining and reappraisal should lead to a fair dismissal as long as the unions are on board and not a bunch of commies, otherwise they need to be fired as well.

The ones who are left and doing their job as required can then get a pay rise commensurate with the commercial area.

I now this is probably heresy in a socialist LatAm country but if improvements need to be made what other workable options are there?
19 God.Is.An.Illusion (#) Mar 03rd, 2013 - 03:47 pm Report abuse
“Você sabe com quem está falando?

You're already stuck with monkeys. And yet you're operating the supposedly 2nd most expensive Government in the world.
At least lower the salaries with 80%.
There are thousands of highly educated people who are able and willing to run this country effectively at 20% of the salaries wasted now.

Make it a COMPANY.
That's the only way.
Hire people to do a job and offer them a reasonable salary.
REASONABLE - not 60 or 80 times the minimum wages.

When s/he performs, OK, give them a modest raise.
When they fail, FIRE THEM.
No back pay.
No pension.
No nothing.

These ”Você sabe com quem está falando?” people get absurd salaries right from the beginning, whether they perform or not, with a job for life.
That needs to be changed.

How can hard working people have confidence in Government Officials when they see them appear on TV in court cases where they are accused from stealing.
20 ChrisR (#) Mar 03rd, 2013 - 04:21 pm Report abuse
19 God.Is.An.Illusion

I thought I was responding in a sensible manner about the government of Brasil.

Given your poor English shown in 19 I am not sure anymore.

Who do YOU think I was talking ‘to’ and where do YOU think:

1) I came from;

2) Where do I live now?

And whose country is, in your parlance ‘already stuck with the monkeys’?

Confusing, isn’t it?
21 God.Is.An.Illusion (#) Mar 03rd, 2013 - 06:31 pm Report abuse

The intimidating “Você sabe com quem está falando?” and their absurd salaries is what the average Brazilian Government official is getting away with.

ad 1) I have no idea
ad 2) I don't care
ad 3) which country are we talking about?

I'm sorry about my use of the English language.
Tell me which part you did not understand and I'll use synonyms.

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!


Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!