This document summarizes Brazil's institutional arrangements for promoting productivity and industrial policy. It describes how Brazil transitioned from a closed market economy in the 1980s to opening up in the 1990s, privatizing state-owned industries. In the 2000s, the government recovered its role in industrial policy through new forums and regulatory frameworks. Key institutions created include ABDI (Brazilian Agency for Industrial Development) and CNDI (National Industrial Development Council) in 2004 to connect actors and inform decision-making. The presentation evaluates these arrangements based on criteria for effective policy institutions and notes both strengths like social consensus on productivity, and weaknesses like limited long-term planning due to election cycles.

1. GLOBAL DIALOGUE ON THE FUTURE OF
PRODUCTIVITY:
TOWARDS AN OECD PRODUCTIVITY NETWORK
Mexico City, 6-7 July 2015
Institutional arrangements to promote
productivity
Jackson De Toni
Brazilian Agency for Industrial Development
www.abdi.com.br
Jackson.detoni@abdi.com.br

2. • 1980’s
• Closed market; State driven economy
• 1990’s
• Abrupt economic opening
• Absence of the State in the Industrial Development Policies
• Privatizations (1995-2000) – Telecommunications, energy, transportation, steel and
mining
• 2000’s
• Recovery of the State’s role in the Industrial Development Policy formulating
• Competitiveness forums – new governance
• New regulatories frameworks to improve innovation and industrial investment
• PITCE (2004) – Foreign Commerce, Technological and Industrial Policy
• ABDI and CNDI (2004) - a new agency and a new tripartite council
• PDP (2008) – Productive Development Policy
• “Plano Brasil Maior” – the recent industrial policy…
Previous Framework
Industrial Policy BRAZIL

3. Management
System
SystemicCoordinationUnits
Management Committee
PR/Cabinet Affairs, MDIC, MF,
MCTI, MP
Coordination: MDIC
Executive Group
Coordination: MDIC
National Industrial
Development
Council
Management and
decision-making
level
ForeignTrade
Innovation
Investment
Professional Education
and Qualification
Sustainable Production
Competitiveness of
Small Businesses
Executive
Committees
Sectoral
Competitiveness
Councils
SectoralCoordinationUnits
Higher advisory
level
Articulation and
formulation level
Regional Industrial
Development
Consumer Welfare
Labor relations and
working conditions

4. created in 2004 to
connect multiple actors
and tro produce
intelligence to decion
making process
Brazilian Agency for
Industrial Development

5. VISION 2018
To be a byword for public-private linkage
and industrial intelligence and to promote
employment, innovation and
transformation in Brazilian industry.
MISSION
To develop strategic action for industrial
policy and to promote productive
investment, employment, innovation and
competitiveness in Brazilian Industry.
Production of
Intelligence
Support for industrial
development through
the implementation of
the portfolio of
products and services
Public-Private
Linkage
Monitoring and
evaluate of
Industrial Policy
Main Strategic Objectives
Institutional Role

6. Institucional criteria applied to brazilian context (Banks paper)
(1) Research and analysis (technical skills)
• It’s reasonable, but the academia knowledge should be
“translate” to “real business world”
(2) Mandate to focus on the long term
• Limited by the election cicles, limited long run planning
(3) Independence (funds, quality of researchers, legal constitution)
• Independence of funds, but ambiguity in terms of juridic
condition
(4) Transparency and public control (work to public input and scrutiny)
• Strong control by the audit bodies and several tribunals
(5) Integration with the decision making process (efectiveness)
• Limited by the high complexity of the “political game”

7. A possible synthesis of brazilian situation
Weaknesses/Threats
• Democracy as political system with several limitations: rent seeking, conflict
relationship among de republican powers, low accountability and social
participation
• High social inequality despite the recent movement to social inclusion
• The recent industrial policies were more counter-cyclical measures (credit and
fiscal renounce), than transformative (and structural) initiatives
• Complexity of business environment
Strenghts/Opportunities
• The low productivity problem became rapidly a key issue to main national
political actors (social consensus)
• More integration to world economy (some important GVC)
• State bureaucracy relatively well prepared (in weberian meaning)
• New institutions to reinforce the arenas of corporations public-private

8. Thank you
Muito obrigado !