ECONOMY
by Luiz Bittencourt and Hélio Mendes
Luiz Bittencourt 
Hélio Mendes
BRAZIL AND THE BRAZILIAN LEATHER
With the end of October, the Brazilian economy show signs of recovery.
The numbers on economy register downrate and controlled inflation, American dollar is under R$4,00, low interest rate and tending to drop even more, Brazil’s risk score is close to zero, social security reform has been approved, administrative and tributary reforms are being developed, market is confident and people are hopeful.
In decades we don’t see such admirable scenario.
The virtuous environment built with hard work in the past 10 months is stimulating production and creativity. If there wasn’t the judiciary, the Congress and the press, Brazil would be one of the best countries in the planet.
However, even with excellent domestic perspectives, some productive sectors are facing hard difficulties and one of them is the leather sector.
With a irrisory intern market and defying the crisis on the international market, the tanner sector is unfortunately facing a dark phase.
Its product is victim of devaluation, suffers daily attacks from animal protection organizations and faces the competition against alternative materials technologically developed.
The results are catastrophic.
Since 2014, when the Brazilian leather exportation broke its record, the exportations dropped 65%, specially between its main clients, like China (-71%) and European Union (-61%). In relative values, the consequences are disastrous too. In 2014, leather exportations represented 1,3% of Brazil’s total exportations. Today, it doesn’t surpass 0,5%.
How to survive without domestic market and facing inhospitable international market?
If a country can retain it decadent tendency and, even in a hostile and corrupted environment, promote inflection in a period of ten months, why a productive sector can’t recovery its competitivity in a reasonable period?
Some lessons can be taken from the Brazilian success.
The administration needs to abandon its actions between friends, the planning must ground all activities, fiscal balance must be mandatory and professionalism, audacity and innovation must be priority.
Brazilian climate is completely favorable to business and sectors recovery, consolidated by public policies which grant the indispensable predictability, without paternalism, for those who exercise the best practices.
Difficulties exist to be overcome and must not be reason to stop adequacy to the new context, which demands organization to enable strategic alliances to support and expand comparative advantages.
Luiz Bittencourt – Metallurgical Engineer/UFF/RJ/Brazil; Master of Engineering./McGill University/Montreal/Canada; Postgraduated in International Trade /UniversidadeMackenzie/SP/Brazil – [email protected]
Hélio Mendes – Government and Business Consultant – www.institutolatino.com.br
www.revistadiaria.com.br
