Recipe Of Brazil: do the opposite of Argentina

Brazil's recipe: do the opposite of Argentina June 24, 2009 It seems that Lula da Silva has found the recipe for Growth achieve solid and sustainable Brazilian economy. The formula is simple: do the exact opposite of what is done in economic policy in Argentina. For Argentina, the country represents a threat, and that is why you have applied all measures against it. Withholding and export control and maximum prices are some of the provisions taken by the Argentine government to keep much of the income generated by industry and control the evolution of prices of key foods such as beef and dairy. For Lula however, in a world where demand for livestock products in the agricultural sector shows a perspective view of strong growth in the long run explained by multiple factors, the sector of the field represents an ally and an opportunity for Brazil's economy grow and strategically position itself in sectors such as energy. Probably this vision as opposed to a sector not always properly recognized, is the product of the ambition of Argentine farmers and the likely evolution of generosity and Brazilian farmers.

Already in the Growth Acceleration Plan (PAC), launched in 2007, Lula had stressed the importance of the field for the future of Brazil. The president of Brazil, which itself has a long-term plan for the sector, pointing to the same guidelines as the development of Brazil's biofuels potential as a global provider of agricultural livestock. In this way, Brazil could reconcile these goals without creating an adverse impact on its citizens through an inflationary effect. On the contrary, the plan for the sector, the intention is to first ensure self-sufficiency.

The international growth of companies like JBS (BVSP: JBSS3), Marfrig (BVSP: MRFG3) and Perdigao (BVSP: PRGA3; NYSE: PDA), is not casual. Lula encouraged and supported by multiple development tools, companies in the sector is now positioned in a global fit and ready to reap the benefits of global economic recovery, deepening their presence in markets where they currently operate and entering into new and promising. And while Argentina are sent to slaughter dairy cows, the dairy sector in Brazil is growing strongly. Yesterday, Lula launched the plan in the 2009-2010 agricultural livestock which includes the allocation of resources for the sector worth U.S. $ 53,000 million, an amount greater than that granted in the 2008-2009 season by 37%. The Ministry of Agriculture said via a statement: "(The goal is to) ensure income for the producer and promote sustainable growth of Brazilian agriculture?. It is with this very clear that the Brazilian countryside is not alone in its goal of sustained growth. Lula's government understands what the business field and the risks and volatility of economic activity, so it is that seeks to provide certainty so that it is devoted exclusively to think about growth.

Many of the resources (86%) will be allocated to large-scale production as the objective While some countries are entangled in resolving the daily problems and have neither the time nor the inclination to look much further, Lula is a space to try to anticipate events. Test your vision was what he said when it launched the plan: "Imagine a big bear hibernating in a cave ice. That bear is the United States and Europe. When you wake up, the bear will want to buy things and Brazil must be ready to produce, sell, make money and build your industry?. Without fear of the possible effects of inflation, Lula also determined an adjustment in the minimum prices that farmers receive for 33 agricultural crops and other livestock. The products are rice beneficiaries whose price will rise by 20% minimum, milk (15%), cassava (12%), soybeans (10%) and maize (6%). Is that industry profitability is not a threat to the economy, but the key to its development. Because it has been careful, the agriculture sector in Brazil is one of the drivers of economic recovery.

Proof of this, in May of 131,000 new jobs created, 53,000 (40.4%) corresponded to that sector. Regarding oil, Brazil also has good news in the last hours. The Chevron (NYSE: CVX) announced the launch of its oil drilling operations in a maritime area off the coast of Brazil. This private investment is one of the most important sector in a project worth U.S. $ 3,000 million and where Petrobras has a 30%. The project will allow extraction of 100,000 barrels of oil equivalent per day and 850,000 m3 of natural gas in 2011. The Brazilian economy has begun issuing its first signs of recovery. The Brazilian government plans on different economic sectors aimed especially its strategic position in the output of the global crisis. The Lula government's effort to maintain financial strength despite the temptations of short-term, is paying off. Brazil's economy begin to recover not only their strength but it will resume its plan to become a world leader. And while the real estate sector is suffering in the world, Brazil is beginning to spark a boom, which realized Reuters yesterday.

An example of this was what happened in a residential project of 104 units launched two weeks ago in Vila Carrao area in Sao Paulo: "We sold all the units in four hours?, Said Thomas Shapiro, president of GoldenTree InSite Partners. Soon we will touch on this topic.