The practice has been demonstrating the impossibility of the neoliberal economic model throughout the world, including in Brazil. The maintenance of the neoliberal model will translate into the deepening of the economic recession and the denationalization of what still remains of the public patrimony in Brazil and, consequently, in greater subordination of the country in relation to the exterior. A government seriously committed to defending national sovereignty, Brazil's progress, the social well-being of its population and sustainable development must necessarily repel this scenario by replacing the neoliberal economic model with another that corresponds to the interests of the population with the government exerting an effective control of the economy, besides propitiating the retaking of national development.

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HOW TO INVENT A NEW BRAZIL
Fernando Alcoforado *
The practice has been demonstrating the impossibility of the neoliberal economic model
throughout the world, including in Brazil. The maintenance of the neoliberal model will
translate into the deepening of the economic recession and the denationalization of what
still remains of the public patrimony in Brazil and, consequently, in greater
subordination of the country in relation to the exterior. A government seriously
committed to defending national sovereignty, Brazil's progress, the social well-being of
its population and sustainable development must necessarily repel this scenario by
replacing the neoliberal economic model with another that corresponds to the interests
of the population with the government exerting an effective control of the economy,
besides propitiating the retaking of national development.
It is worth noting that, faced with the risk of having to submit to the dictatorship of
financial capital with the introduction of the neoliberal model, several nations began to
adopt alternative models. Asia's so-called "developing countries" have adopted various
mechanisms for disciplining entry and exit of capital. In general, they now achieve
greater economic success and greater stability than those applying the neoliberal model
such as Brazil. This is the case of China, where capital transactions depend on State
authorization, foreign financial operations, inbound or outbound, are authorized by the
government. Another example is India, where the use of quantitative and administrative
restrictions on capital transactions predominates. China and India, which have never
abandoned control over capital, are now synonymous with continued economic growth.
Unlike China and India, Brazil is a highly vulnerable country. To maintain the fragile
functioning of the economy, the Brazilian government depends on the inflow of capital
from the foreign market, increasing its dependence.
To invent a new Brazil, it is necessary to fulfill three stages: 1) Recovery of the
Brazilian economy devastated from 1990 until the present moment by the neoliberal
governments; 2) Adoption of the national developmental model of selective and
controlled opening of the national economy along the lines of those adopted by Japan,
South Korea and China in the 1970s, 1980s and 1990s, respectively, which had the
highest rates of economic growth after World War II World; and 3) Adoption of social
democracy along the lines of the Scandinavian countries (Sweden, Denmark, Norway,
Finland and Iceland) with the highest rates of simultaneous economic and social
progress and sustainable development policy.
In the recovery phase of the Brazilian economy, there should be an immediate audit of
the external and internal debts and the renegotiation of the payment of the country's
external debt and domestic public debt, aiming at its lengthening in time to reduce
charges and increase availability of public resources for investment. It should be
adopted also an economic policy that prioritizes: (1) the drastic reduction of public
expenditure on operation cost by reducing the number of ministries and eliminating
stewardship; 2) control of inflow and outflow of capital to avoid currency evasion and
restrict the access of speculative capital in the country; 3) the sharp reduction of the
interest rates of the banking system to encourage investments in productive activities; 4)
the selective importation of raw materials and essential products from abroad to reduce
the country's foreign exchange expenditures; 5) the adoption of the fixed exchange rate
policy in place of the floating exchange rate in force to protect domestic industry and

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control inflation; 6) the reintroduction of the market reserve in areas considered
strategic for national development; 7) the reestablishment of privatized state enterprises
considered fundamental for national development; and, 8) the adoption of a tax policy
such as taxation of large fortunes and greater taxation of the financial system that is
capable of securing the resources that the State would need to invest in education,
health, social security and in the infrastructure sectors, among others and burden the
population and the productive sectors as little as possible.
After the recovery or reorganization of the Brazilian economy, the national economic
development model of selective and controlled opening of the economy to be
implemented for 10 years should be adopted considering the adoption of strategies that
contribute to: 1) the increase of public and private savings aiming at raising the
investment rates of the Brazilian economy; 2) the realization of foreign investments,
preferably in the export-oriented areas, and in those in which domestic companies are
not in a position to supply the domestic market; 3) the maximization of Brazilian
exports to expand the country's foreign exchange earnings and boost the growth of the
national economy; 4) the concession of fiscal incentives to attract private investments in
less developed regions of Brazil; 5) the encouragement and reinforcement of research
and development activities and of the country's educational system; and 6) reduction of
social inequalities, including the adoption of measures that contribute to meeting the
basic needs of the population in terms of food, clothing, housing, health services and
employment, and a better quality of life. This whole set of measures should be put into
practice based on the planning of national economic activity that ensures economic
growth and the development of the country on a sustainable basis.
After 10 years of adopting the national development model for the selective and
controlled opening of the economy, a new model of society should be implanted to
enable a civilized coexistence among all human beings in Brazil. This new model
should be inspired by the social democracy existing in the countries of Scandinavia
(Sweden, Denmark, Norway, Finland and Iceland) where the most successful political,
economic and social system was implemented, with the necessary improvements and
adaptations in Brazil. It was the social democracy built up to this day in the
Scandinavian countries the only model of society that allowed the realization of
economic, social and political progress without similar in the history of humanity, with
the State acting as mediator of the conflicts between the interests of capital and of Civil
Society. It is not by chance that the Scandinavian countries are world leaders in the UN
Social Progress Index and the Human Development Index because they have great
political, economic and social successes.
The social democracy to be implanted in Brazil should therefore result from the
improvement of the current Scandinavian model that would operate with a tripod
structured on the basis of a neutral State, Active Organized Civil Society and Productive
Sector (state and private) efficient and effective. The neutral State would seek to
reconcile the interests of the Productive Sector (state and private) with those of Civil
Society mediating its conflicts in several instances of the executive and legislative
branches that, when the consensus is not obtained, the final decision would be in charge
of the population that would decide democratically through a plebiscite and / or a
referendum. In the new social democracy, the action of monopoly groups and private
cartels in the economy should not be allowed. Private companies would only operate in
economic sectors where there was competition. State-owned or mixed-economy

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enterprises would occupy the economic sectors where competition was not possible.
This is the new Brazil that would have to be invented.
It should be noted that this proposal for the invention of a new Brazil is detailed in our
book A Invenção de um novo Brasil (The invention of a new Brazil) published by the
Editora CRV from Curitiba. In order to make this solution feasible for Brazil, it is
necessary, first and foremost, a national salvation government made up of personalities
with proven competence and unblemished morality to convene a new Constituent
Assembly to correct the distortions of the 1988 Constitution and make it possible to
establish new directions not only in economic, political and social plans, but also in
ethical and moral plans. After the Constituent Assembly, with the political
reorganization of Brazil, general elections would be called.
The political, economic, State and Public Administration reforms are the sine-qua-non
condition to strengthen the Brazilian State and enable it to face the greatest economic
crisis in the history of Brazil. With the weakened Brazilian state as it is with
demoralized political institutions, it will not be able to overcome the gigantic economic
crisis that devastates the Brazilian economy. The growth in the number of unemployed
and corporate failures in the last two years demonstrates the need for a national
salvation government. The invention of a new Brazil will only happen when the
personalities committed to building a new political, economic and social order in Brazil
that matches the interests of the vast majority of the Brazilian people committed to
building a new political, economic and social order in Brazil are governing the Brazilian
nation.
* Fernando Alcoforado, 77, member of the Bahian Academy of Education and the Brazilian Academy of
Letters - Bahia Section, engineer and doctor in Territorial Planning and Regional Development by the
University of Barcelona, university professor and consultant in the areas of strategic planning, business
planning, regional planning and planning of energy systems, is the author of the books Globalização
(Editora Nobel, São Paulo, 1997), De Collor a FHC (Editora Nobel, São Paulo, 1998), Um Projeto para
o Brasil (Editora Nobel, São Paulo, 2000), Os Condicionantes de Desenvolvimento do Estado da Bahia
(PhD Thesis, University of Barcelona, http: //www.tesisenred.net/handle/10803/1944, 2003),
Globalização e Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento da Bahia do
Século XVI ao Século XX e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The
Necessary Conditions of the Economic and Social Development- The Case of the State of Bahia (VDM
Verlag Dr. Müller Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e
Catástrofe Planetária (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2010), Amazônia
Sustentável- Para o progresso do Brasil e combate ao aquecimento global (Viena- Editora e Gráfica,
Santa Cruz do Rio Pardo, São Paulo, 2011), Os Fatores Condicionantes do Desenvolvimento Econômico
e Social (Editora CRV, Curitiba, 2012), Energia no Mundo e no Brasil- Energia e Mudança Climática
Catastrófica no Século XXI (Editora CRV, Curitiba, 2015), As Grandes Revoluções Científicas,
Econômicas e Sociais que Mudaram o Mundo (Editora CRV, Curitiba, 2016) e A Invenção de um novo
Brasil (Editora CRV, Curitiba, 2017). Possui blog na Internet (http://fernando.alcoforado.zip.net). E-
mail: falcoforado@uol.com.br.