MercoPress. South Atlantic News Agency

Brazil's gov't pushes for further industrial development

Lula underscored the role of protectionism in hindering industrial development

President Luiz Inácio Lula da Silva Monday launched the New Industry Brazil (NIB) plan which promises to invest R$ 300 billion (US$ 60.12 bn) by 2026 in a move to boost the South American country's economy. The project laid out by the National Industrial Development Council (CNDI) aims to transform Brazil's industry into a more innovative, green, exporting, and productive sector, it was explained.

“It's very important for Brazil that we once again have an innovative industrial policy, a fully digitalized industrial policy as the world demands today, and that we can overcome, once and for all, this problem of Brazil never being a definitively great and developed country. We're always on the verge, but we never get there,” said Lula Monday during the CNDI meeting at the Planalto Palace.

The R$ 300 billion resources will be made available through specific lines within the More Production Plan.

The head of state also stressed that foreigners only talk about free markets when they are selling but adopt a protectionist stance when buying. He also noted that in 2009 during a G20 summit in London, the end of protectionism was already debated amid global recession but the subsequent events went in the opposite direction.

”We had discussed ending protectionism as a way of recovering industry (...) Protectionism has increased because many people talk about a free market for selling, but when it comes to buying, they protect their market like nobody else,” said Lula, who insisted that the government must fulfill its role of stimulating national industry by purchasing shares in companies through the BNDES (National Bank for Economic and Social Development). These policies were dropped under former President Jair Bolsonaro.

“The new policy places innovation and sustainability at the heart of economic development, stimulating research and technology in the most diverse segments, with social and environmental responsibility. This policy represents a vision of the future. A declaration of confidence in our ability to compete and lead the world in strategic areas,” said Vice-President Geraldo Alckmin, who is also Minister for Development, Science, Technology and Innovation, and chairs the CNDI.