New authorities will divide Ministry of Economic system into three: Finance, Planning, along with Business and Commerce

New authorities will divide Ministry of Economic system into three: Finance, Planning, along with Business and Commerce

In a press conference, the coordinator of the transition technical groups, Aloizio Mercadante, announced that the Ministry of Economy will be divided into three portfolios in the future government. The Ministries of Planning, Budget and Management (MPOG); from the farm; and Industry, Foreign Trade and Services (MDIC) will be recreated from January 1st.

According to Mercadante, one of the ideas discussed was the transfer of the planning area to the MDIC, which would allow the MPOG to take more care of personnel management, for example.

– We had the Ministry of Finance; Ministry of Industry, Foreign Trade and Services; and Ministry of Planning, Budget and Management. These structures will come back into existence. Brazil was much more efficient and had much more competent policies with this distribution than taking and throwing everything into the economy – argued Mercadante, adding:

– All intra-government demand is in the Ministry of Planning and Budget, it is also fundamental to relieve the Ministry of Finance to take care of the finance policy, macroeconomic. Second, industry and foreign trade generate employment and investment.

During the press conference, members of the transition team in the area stated that Brazil has gone through a process of deindustrialization and that the recreation of these structures is important to focus on the development of the area. The change, according to the transition, will not generate costs since the current structures will be reorganized to meet the new format.

Mercadante also stated that the National Bank for Economic Development (BNDES) and the Brazilian Trade and Investment Promotion Agency (Apex) will be under the umbrella of the new MDIC.

– President Lula made it clear that Apex and BNDES will be in the new MDIC. Those who tried to argue the contrary did not pass the preliminary with him. It is necessary to be focused and daring in order to promote Brazilian products [no exterior]🇧🇷 The BNDES has to be that instrument for boosting industrialization and rescuing the structures that already exist in the country.

Mercadante criticized the management of the BNDES during the Bolsonaro government. According to him, only 19% of the BRL 90 billion in credit offered by the bank goes to Industry – while 25% goes to Agriculture.

– They say the market gets nervous. I get nervous when I see the BNDES lending more to agriculture than to industry. We have to encourage the private market, we do. But this requires a complement of public financing with the BNDES, especially for infrastructure and industry.

Former mayor of São Paulo Fernando Haddad is the favorite name to occupy the Treasury and has already been tested for the position for almost three weeks.

To command the BNDES, Gabriel Galípolo is remembered as a possibility.

While the PT will have its name in charge of the main Ministry of Economy, there is a growing tendency for a traditional economist like Pérsio Arida and André Lara Resende to take over the Ministry of Planning.

At the Ministry of Industry and Commerce, the expectation is that the command will be with a name close to that of the current president of Fiesp, Josué Gomes, son of former vice-president José Alencar.

After participating in a series of meetings at a hotel in the central region of Brasília, former São Paulo mayor Fernando Haddad (PT), quoted to take over the Treasury, spoke a little about the role he imagines to be ideal for Planning.

He argues for a separation of short-term and long-term assignments. But he emphasizes that the decision will be Lula’s.

— Budget, management, logistics, digital government, have a very heavy day-to-day, and this often takes up the minister’s time, who ends up not being available to think about medium and long-term planning. I think planning is sometimes very hampered by this daily demand,” said Haddad.

Source: The Globe

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