Government leaders in Brazil need to understand that in an exceptional situation like the current one there is an imperative need to plan national development to retake the development of the country. The Brazilian government should elaborate an economic plan that contributes to the retaking of the development of Brazil that indicates for the population and for the productive sectors a perspective of overcoming the current crisis and retaking of economic growth. It is the inexistence of a development plan one of the factors that lead to the immobility of the private sector in the realization of investments in Brazil leading to a real paralysis. The development plan should guide and coordinate the country's companies that, organized in networks, and aided by trade, technology and credit policies, can compete successfully in the national and global economy.

1. 1
HOW TO OVERCOME CRISIS AND TO RETAKE THE DEVELOPMENT IN
BRAZIL
Fernando Alcoforado *
In order to overcome the current recessive crisis, the first measures that the Brazilian
government would need to adopt would be to solve the problem of public accounts that
would contemplate, on the one hand, the increase of the public collection with: 1)
taxation of large fortunes with assets over R$ 1 billion that could yield approximately
R$ 100 billion per year; And (2) an increase in the tax on banks whose profits have been
stratospheric, and on the other, to reduce government spending by: 1) drastically
reducing the number of ministries and public agencies and expenditures at all levels of
government; and, 2) a drastic reduction of the basic interest rate of the economy (Selic)
to reduce the size of public debt and the burden of paying interest and public debt
amortization.
In order to overcome the current recessionary crisis, the Brazilian government should
also immediately implement a broad program of public infrastructure works (energy,
transportation, housing, basic sanitation, etc.) to raise the population's employment and
income levels and, as a consequence, to promote the expansion of household
consumption resulting from the increase in the wage bill and the income of companies
with investments in public works. The federal government should attract the private
sector to invest in energy, transportation and communications infrastructure (R$ 1.6
trillion) to reduce the cost of its logistics. The increase in the wage bill and the adoption
of a credit policy will encourage the consumer to buy more. The public works program
would increase productive capacity and increase investment in industry, contribute to
rise commercial activity and services, as well as increasing levels of government tax
collection.
In addition to the public works program, the Brazilian government needs to take urgent
measures to combat economic stagnation, which would contemplate the following: 1) to
promote a broad export program, especially agribusiness and the mineral sector; 2)
drastically to reduce bank interest rates to encourage household consumption and
investment by businesses; and (3) to reduce the tax burden by freezing high public
sector wages, cutting public bodies and stewardship, and reducing interest charges and
public debt amortization of the public sector to be renegotiated with creditors. In order
to keep inflation under its control, the Brazilian government should encourage the
domestic production of goods and services and when it is insufficient to carry out
imports to combat demand inflation.
Government leaders in Brazil need to understand that in an exceptional situation like the
current one there is an imperative need to plan national development to retake the
development of the country. The Brazilian government should elaborate an economic
plan that contributes to the retaking of the development of Brazil that indicates for the
population and for the productive sectors a perspective of overcoming the current crisis
and retaking of economic growth. It is the inexistence of a development plan one of the
factors that lead to the immobility of the private sector in the realization of investments
in Brazil leading to a real paralysis. The development plan should guide and coordinate
the country's companies that, organized in networks, and aided by trade, technology and
credit policies, can compete successfully in the national and global economy.

2. 2
The development plan should contemplate the adoption of an industrial policy, moving
from the low technology to the medium technology sectors and then to the high
technology sectors, following the evolution of technology, world demand and the
productive capacity of industries, Competitiveness, made possible by substantial
increases in productivity and quality of work, to direct the flow of capital to priority
sectors, to manage international trade and to promote the country's limited integration
into the global economy, especially in terms of Financial markets to act as a buffer,
protecting the economic system from the movements of financial flows around the
world, as Japan, South Korea and China have done.
The Brazilian government should create a favorable economic environment in Brazil
(expanding consumer market, existence of business networks, low tax burden and
interest rates and availability of logistics of energy, transportation and communications,
etc.), to adopt developmental government policies to attract investors (domestic and
foreign) to invest, should promote capital accumulation by obtaining high domestic
(public and private) savings and short-term credit by low interest banks to avoid
excessive Brazilian dependence of foreign saving. Should promote the advancement of
technical progress and the organization of production in articulation with public and
private enterprises aimed at increasing productivity, which require high rates of
investment in R & D and innovation in companies, universities and research centers and
focus on industry to enable the country to take a leading position in the technological
field.
The Brazilian government must reverse the deindustrialization process that has been
taking place in Brazil since the 1980s, promoting industrialization in strategic sectors
for the country's development. It must promote the development of factors of production
(human resources, knowledge resources, physical resources, economic and social
infrastructure and capital) and the internal market in articulation with public and private
enterprises to leverage economic and social development with education, playing an
exceptional role in raising the literacy rate and qualification of human resources,
especially in the university system and particularly in the Engineering as did Japan,
South Korea and China in the second half of the twentieth century.
In addition, the Brazilian government should adopt measures to reduce Brazil's external
vulnerability. Capital control is the most important part of a sustained growth and
economic development strategy, especially in economies marked by macroeconomic
instability such as Brazil. The control of capital must be carried out with the taxation on
the inflow of foreign capital. The Brazilian government should require that a certain
percentage of the foreign investment be retained in reserve for a certain number of days
with the Central Bank to limit the volatility of capital flows. This type of control, called
"lock-in" policy, would prevent a sudden outflow of capital. Several countries in Asia
have adopted measures to discipline the inflow and outflow of capital, which have
achieved great economic success and greater stability than those countries applying the
neoliberal model such as Brazil. In China and India, for example, capital transactions
depend on government authorization. China and India, which have never abandoned
control over capital, are now synonymous with continued economic growth.
These are the necessary conditions for Brazil to promote its economic and social
development. In Brazil, regrettably, the government has no development plan since the
end of the military regime, the economic environment is unfavorable with the domestic
market in sharp decline, extortionate interest rates and high tax burden among other

3. 3
factors, capital accumulation is low whose rate of investment is insufficient for the
country to grow above 5% a year and external dependence on capital is very high,
technical progress and the organization of production in the primary, secondary and
tertiary sectors do not contribute to the increase of productivity and, with a few
exceptions, industrialization has been regressing since 1985 when it represented around
30% of GDP and today corresponds to 10% of GDP, production factors do not meet the
needs of the country and the internal market has suffered a violent retraction from 2014
aggravated even more with the government's recessive policy of Michel Temer
government.
* Fernando Alcoforado, member of the Bahia Academy of Education, engineer and doctor of Territorial
Planning and Regional Development from the University of Barcelona, a university professor and
consultant in strategic planning, business planning, regional planning and planning of energy systems, is
the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova
(Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São
Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado.
Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e
Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento 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. Muller
Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe
Planetária (P&A Gráfica e Editora, Salvador, 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) and As Grandes Revoluções Científicas, Econômicas e Sociais que Mudaram o Mundo
(Editora CRV, Curitiba, 2016) .