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Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 1 RIO WITH ITS EYES ON THE PRIZE 2016 Summer Olympic Games FIRJAN NY BREAKFAST Joaquim Vieira Ferreira Levy Secretaria de Fazenda October 2009 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good Slide 2 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 2 Brazils fundamental sources of strength 20+ years of regular elections 20 years of trade liberalization 15 years of price stability 10 years of fiscal targets, established after deep fiscal restructuring at all levels of government Strong banks, with high capitalization and credible supervision Innovative social policies, with more jobs and education Slide 3 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 3 Credibility in Policies CPI Target zones and actual realization Slide 4 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 4 Diversity in Trade Trade surplus Main Exports Tranps Equip Steel Chemicals Machinery Other Main Partners Slide 5 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 5 Sound Net External Position External Debt as % of GDP External Debt and Ratings Risk Premium and X rate Climbing the rating ladder Slide 6 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 6 A strong domestic market Auto production and sales Wages and inflation Investment Domestic Credit Slide 7 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 7 Also helped by an active fiscal policy Fiscal strength has allowed the government to move ahead with investment plans PAC National Program to Accelerate Growth is helping public investment since 2007 PAC will inject R$ 600+ billion in federal, public enterprises and subnational projects BRASILBRASIL Fiscal Balance % GDP Slide 8 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 8 Fiscal can still provide a cushion 12-month Primary and Nominal Consolidated Fiscal Balance as % of GPD Ext. public debt & Reserves primary nominal Net public debt/GDP Structural surplus by States and Municipalities Slide 9 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 9 Real Interest Rates above 5% Inflation-indexed NTN B bond yield There is a large monetary cushion Slide 10 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 10 and an external cushion, Energy Independence Oil demand/production Small External Obligations Interest Payments/Exports A hot open capital market Foreign Participation in Stock and Fixed Income markets Slide 11 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 11 as well as a political cushion: Stability breeds a new environment Economic stability in Brazil has allowed people, firms, and government to focus on micro issues, putting a premium on service delivery and management issues subnational governments are responding to the new environment in the same way companies did in the 1990s when competition and stability forced them to change the way they operated and improve the services they delivered. currently, there is a healthy competition among subnational governments good managers have been rewarded by winning elections and attracting new private investment to their states the federal government relies on states to conduct the PAC Slide 12 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 12 Recent changes at subnational level are best illustrated by the turn around of Rio de Janeiro VistaChinesa RI0VistaChinesa RI0 Slide 13 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 13 With a US$ 200 billion GDP, the state has a diversified and open economy Rio is a world class economy Slide 14 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 14 Oil: one more factor to Rios energy Rio produces 80% of Brazilian oil (1,7 mm bbl/day) and is where the PRE-SAL Tupy field is located A 50+ US$ billion investment portfolio unaffected by crisis Oil revenues channeled to pension & environment protection funds Government focus is on service delivery, including improved personal and business security Fiscal Accounts of State of Rio de Janeiro Slide 15 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 15 Securities Exchange Regulator Insurance Regulator Central Bank open market desk and self regulation financial institutions Brazil Development Bank Major Pension Funds (Petros, Previ, Eletros) Insurance/Reinssurance entrants (Lloydss) and IRB Asset management funds FioCruz (Pharm, Health) Cenpes (oil-gas) IMPA (math) CBPF (Physics) National Science Academy million college students Leading schools of economics Headquaters of largest telecomm companies (Oi-telemar, Embratel) Rio: strong in knowledge and financial services Slide 16 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 16 Rio de Janeiro: prime logistic platform PORT of Rio Arco Rodovirio- road Beltway 70% of Brazil s GDP is within 500 mls PORT (Itaguai) and Thyssen mill Dutra BR 040 BR 116 Bahia COMPERJ Airport Old Refinery Porto do Au Nuclear Sub Shipyard Nuclear Angra Plant Slide 17 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 17 Overhauling public finances pays for: Rail service that gives people comfort and mobility to work, while reducing gas emission New plants that are changing the sanitation landscape and cleaning the Guanabara Bay New health care facilities and working positions Straightforward security policies All PAC counterparts and more Sanitation Plant of Alegria concluded in late 2008, after 12 years of construction Goals of current administration Slide 18 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 18 Olympic games will foster confidence and focus public policy, setting deadlines 2007 2009 Slide 19 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good Slide 20 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good Slide 21 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good Slide 22 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 22 and now on Slide 23 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good Slide 24 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good Slide 25 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 25 Thank you ! Rio de Janeiro, o melhor lugar para trabalhar Rio de Janeiro, the best place to work Gabfazenda@fazenda.rj.gov.br Obrigado Thank You Slide 26 Recte Rempublicam Gerere Gerindo a coisa pblica corretamente Proper Management of the Public Good 26 Thank you Niteri Campos Costa Verde Terespolis Sefaz/RJ excelncia de servios