Northeast Brazil needs to focus on creating better brains

Past few years have seen Northeast Brazil being devoid of the importance it deserved on the national front. The development it should have received as per the policy projections made by several political parties has been stalled for a really long time. The needs of Northeast Brazil have lain subdued under the conflicting interests of various other states, each wanting its own share of budget and greater share of benefits. But an anticipated importance in the international market and political stability have led to a streak of development in Northeast, which is indicative of the bright prospects the future of the region holds, says Sergio Machado.

There was once a time when Brazil was politically strong and all the regions were aligned towards a common benefit the country but as the political instability grew, this virtue of unity diluted in to a thin idea which held less value. This is the time when President Lula allocated the largest amount of infrastructure projects and investments for the Northeast area. Since a couple of years, development in the area has been the centre of focus. But what the region really needs is sustainable development, remarks Sergio Machado, former president of Transpetro.

He elaborates that Northeast needs to focus diligently on improving its education system in order to create better brains that would further the development. Research centers should be more in number so that the region and its people stay abreast with the latest technology. Sergio Machado also remarks that the prevalent time is one of the best times of Brazil for it is reaching a level where it will be a supplier of various products and services at a global belvedere. It will supply oil, foods and other products. This would create a number of job opportunities for the people. The fact that Brazil is closer to Northern Hemisphere than the southern one should be used to the advantage of the country.

The Northern Brazil does not need cynics and critiques but those who are willing to take an initiative and be an active part of the global shift that is impending.

Development in Northeast indicates towards a stronger Brazil

Data from a recent survey of the Getúlio Vargas Foundation has revealed that the income inequality in Brazil has reduced drastically, indicating towards a significant reduction in the disparity. Crediting this change are initiatives such as social programs and economic growth.

The survey also recorded the greatest increase ever in the incomes of the poorest strata. Along with better education, significant investment in infrastructure and setting up of major industrial projects as a part of the Growth Acceleration Program (PAC) has contributed largely to reduce the income disparity. Sergio Machado says that PAC has led to a paradigm shift in the country by altering the way problems are approached.

In fact, the PAC has changed the growth paradigm of the country by allocating 25% of its investment to the Northeast in its very first phase. Inducing a development of this magnitude definitely expedited growth by multiple folds. Northeast has today on highly skilled labor other regions of the country.

Sergio Machado says that Northeast Brazil still needs a little more focus when it comes to development. He says that there is a need to ensure that the Northeast grows in an integrated way so that a local supply chain can be created. This will help in creating income and wealth for the region.

This can be only done when we get rid of the old practices that have proven to be futile and harmful. The authorities need to incorporate a broader view point instead of focusing on isolated industries. There also needs a better focus on improving the quality of higher education along with creation of more job opportunities for the people. The quality of education provided should match up to that of international standards and include a competitive edge.

Sergio Machado also remarks that Brazil should work its proximity to Europe and the UK to its advantage. These regions offer a plethora of opportunities. So, the government needs to bring in a a few policies that strengthens our business relations with our neighboring countries.

Brazil can emerge as the best alternate solution to the ‘oil Curse’, says Sergio Machado

The increased insurgence along with political instability in the Middle East and overtaking of various oil fields by the terrorist group ISIS has brought back old fears to life. There is an impending oil crisis that lies ahead of the world and could stem many global issues. History has been a witness to the infamous ‘oil curse’ ; concentration of power and income, extreme riches, impending attacks and massacres, overthrown of legacies, all because of presence of oil in a country or region. And now with ISIS planning to take control of various oil fields, there has been a keen focus shift of powerful economies towards alternative fuel options. This, is an opportunity where Brazil can emerge on the top, says Sergio Machado.

The world is looking for reliable oil suppliers; the countries which not only have oil in abundance but also have political stability and good prospects for development. Brazil is one of those few countries which fit all the parameters.

Perhaps that is why American President Barack Obama, in his recent visit to the country, touted Brazil as one of the future reliable oil suppliers to the US market.

Sergio Machado, former President of Transpetro said, “With the pre-salt, Brazil will have the world's fifth largest oil reserve. More than that, our democracy is consolidated and our economy grows with social justice, all of which represent a huge comparative advantage. This will definitely improve investor confidence and would attract future international buyers.”

Sergio Machado also remarks present Brazil as the ‘century Brazil’. He adds, “We have practically all the riches that the world needs. We are an energy powerhouse. In addition to the fossil energy, we have a broad potential array of fuels; oil, hydro, wind and solar.  We have a diverse energy mix, clean and almost 50% renewable energy.”

Brazilian economy is looking more than favorable as of now. There is a presence of large amount of land to produce food and that is why powerful economies like China and India are dependent on Brazil for imports. Brazil also holds huge potential for production of cleaner fuels like Ethanol and Biofuel.

Brazil will surprise the world with its latent potential, says Sergio Machado

Brazil is touted to emerge as one of the stronger economies of the world in next few years. This has put the country in a very powerful position at the global belvedere. The fact that Petrobras has emerged as the second most profitable company in America is an evidence enough to support the statement.

This isn’t something which Brazil is experiencing for the first time. There was a time when Brazil was among the most successful economies in the world. But due to some external circumstances and unfortunate upheavals, there was a lull in the economy. But the turnaround has already begun, says Sergio Machado, ex-President of Transpetro.

American President Obama’s recent visit to Brazil and Dilma Rousseff’s visit to China is a clear indication that Brazil is looking towards an array of prospects and the country must be prepared to make the most of these opportunities.

Brazil, due to its diversified set of advantages seems to be a better prospect than big economies like China and Russia at various levels. It is the country with largest arable land and will soon become a major supplier of oil and ethanol.

A major reason for such great prospects of Brazil is because of political stability and its glorious history. Sergio Machado draws an analogy between the good times that are to follow and the ones that existed. He remarks that both the times, there was a coming together of various intelligent minds and visionaries who, wither their esteemed leadership, would take Brazil towards unparalleled success.

Machado is extremely hopeful that the coming generation of youngsters would take care of the situations in the best way possible and bring more laurels to the country. The success, he says, is to be taken.