Brazil needs to invest in ethanol plastic and specialty steels, says economist

The economist, Antonio Barros de Castro, former president of BNDES, said today in an interview with Folha de Sao Paulo, Brazil needs to take this opportunity to develop unique products such as plastic ethanol and specialty steels used in oil exploration and not just think of exporting raw materials. Another point made in the interview is that Brazil needs to restructure to achieve competitiveness in a world increasingly influenced by the Chinese economy.

According to the expert, in the ’90s and early this century, the Brazilian industry is prepared to compete with American products and Europeans, with good results but this was short lived. He said the primary products exports went from 30% of the total in 2004 to 44% in 2010, and manufacturing fell from 57% to 43%. “This was because the competition is no longer with the U.S. and Europe and is now with the system driven by China,” he says in the interview.

Therefore, in his opinion, a country like Brazil, which has advantages in the new context in the primary maximum and minimum in the industry, has to reinvent itself. “Even if the exchange rate and Brazil are cost neutral, much of the Brazilian industry is not competitive because the Chinese industrial system is more efficient,” said the newspaper.

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