cepal, santiago, chile, 29-30 de agosto, 2011
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Seminario Internacional Hacia un desarrollo inclusivo en América Latina y Chile CEPAL, IPD, FEPS. CEPAL, Santiago, Chile, 29-30 de Agosto, 2011. Financing development in an uncertain world: Evidence, beliefs and statements based on BNDES experience. João Carlos Ferraz. - PowerPoint PPT PresentationTRANSCRIPT
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CEPAL, Santiago, Chile, 29-30 de Agosto, 2011CEPAL, Santiago, Chile, 29-30 de Agosto, 2011
Seminario InternacionalHacia un desarrollo inclusivo en América Latina y Chile
CEPAL, IPD, FEPS
João Carlos Ferraz
Financing development in an uncertain world: Financing development in an uncertain world: Evidence, beliefs and statements Evidence, beliefs and statements
based on BNDES experiencebased on BNDES experience
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The relevant issues and the international context
The relevant issues and the international context
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What is at stake? What is at stake?
Long term financing serves purposes:Long term financing serves purposes:
• More and better jobs
• More and better infrastructure projects
• MMore and better innovative and competitive capabilities
Long term financing to foster investment Long term financing to foster investment
growing ahead of GDPgrowing ahead of GDP
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A development financing strategy is even A development financing strategy is even more relevant when there is…more relevant when there is…
• Increasing diversity among countries in the capacity to prosper, amidst a crisis of long duration
• Fierce competition in all markets for the generation, appropriation and distribution of wealth
• Extremely fast rate of technical change and increasing investments in innovation by countries and corporations
• State activism. The recent crisis has shown its relevance but “a role model” does/will not exist
• Increasing diversity among countries in the capacity to prosper, amidst a crisis of long duration
• Fierce competition in all markets for the generation, appropriation and distribution of wealth
• Extremely fast rate of technical change and increasing investments in innovation by countries and corporations
• State activism. The recent crisis has shown its relevance but “a role model” does/will not exist
The recent evidence
Besides large domestic markets and proactive public policies, countries less affected by the financial crisis have:
• A well-regulated financial system
• Strong public banks (ahead)
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Financing development:
the Brazilian experience
Financing development:
the Brazilian experience
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Financing development: the Brazilian experienceFinancing development: the Brazilian experience
As market sources are pro-cyclical...As market sources are pro-cyclical...
• A development bank is a stabilizing deviceA development bank is a stabilizing device
• Attention!!! Scale and scope mattersAttention!!! Scale and scope matters
• And... it must follow the investment cycleAnd... it must follow the investment cycle
• But... pro-activity is necessary during crisisBut... pro-activity is necessary during crisis
• The effective contribution: investment and The effective contribution: investment and employmentemployment
As market sources are pro-cyclical...As market sources are pro-cyclical...
• A development bank is a stabilizing deviceA development bank is a stabilizing device
• Attention!!! Scale and scope mattersAttention!!! Scale and scope matters
• And... it must follow the investment cycleAnd... it must follow the investment cycle
• But... pro-activity is necessary during crisisBut... pro-activity is necessary during crisis
• The effective contribution: investment and The effective contribution: investment and employmentemployment
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Statements and beliefsStatements and beliefs
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Development, financing and the StateDevelopment, financing and the State
• Without a Developmentist State, there is no development (Thanks, Peter Evans).
• Contemporary State: focus on building up competences => more and better jobs.
• Developing financing for the long term demands more State and more Market.
• Public banks are essential for systemic stability and the permanent availability of investment financing.
• To be effective, a Development Bank must have the necessary means.
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Development financing: food for thoughtDevelopment financing: food for thought
Each nation has its own structure, history & aspirations. Hence, singular institutions. BNDES is a singular institution. But, features of its “DNA” may serve as “food for thought”:
• Learning: flexibility and adaptation to change• Public service: having the public interest as a central value• Obsession with investment, with development• Hands on the real economy: ready, on place, on time • Competence: a credible, effective and efficient institution• Negotiating skills: the capacity to interact with stakeholders• Political leadership – at the institution, in the country
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CEPAL, Santiago, Chile, 29-30 de Agosto, 2011CEPAL, Santiago, Chile, 29-30 de Agosto, 2011
Seminario InternacionalHacia un desarrollo inclusivo en América Latina y Chile
CEPAL, IPD, FEPS
João Carlos Ferraz
Financing development in an uncertain world: Financing development in an uncertain world: Evidence, beliefs and statements Evidence, beliefs and statements
based on BNDES experiencebased on BNDES experience