The economist Marcos Lisbonformer Secretary of Economic Policy at the Ministry of Finance, warned that Brazil operates in an “equilibrium” that encourages economic backwardness, in which financial success is not determined by efficiency or innovation, but rather by advantages granted by the government.
Participating in the program ‘WW Special’, from CNN, as well as other Latin American countries (mentioning Mexico, Argentina and, “most tragically, Venezuela”), built a “consistency (…) very perverted”. In this scenario, according to him, the dominant belief is that the State exists to help and protect companies.
“[Brasil] It is a country where you make money not because it is competitive, it is innovating, it is efficient, it generates quality jobs. You earn money because you count on the government’s allowance in one way or another”, declared the economist. “This causes our delay”.
The idea that the State must provide subsidies and encourage investments for productivity to emerge is refuted by Lisbon. “The state is here to help companies, to promote them, to give subsidies. As if giving subsidies, stimulating investment, would lead to productivity. It doesn’t!”, he stated.
He details that this approach, in which the State protects against external competition and seeks to preserve jobs, results in “low productivity, poor quality jobs and low economic growth”.
For Lisbon, the private sector, upon understanding this “balance”, starts to prioritize earning money through and by obtaining privileges. The economist also points out that such practices involve the search for tax breaks, special tax regimes or special tariffs to protect themselves from foreign competitors.
Defense of privileges
Lisboa states that the problem does not lie only in the business community, but in the belief that society itself supports and defends this system of privilegesthe defense of exemptions and special regimes by various groups.
“Society believes in this balance. There are those who advocate not paying IPVA [imposto sobre a Propriedade de Veículos Automotores] for having a prosthesis, or those who defend tax exemptions for churches and football clubs. Specific sectors, such as the chemical industry, find it reasonable to pay less tax than others”, he highlighted.
Marcos Lisboa also gave as an example of distortion in the Brazilian economy its continuity after the end of the Covid-19 pandemic. The program was created in 2021 with the aim of protecting the events sector amid the pandemic.
“Perse was a mistake. The crisis is over, companies are making a profit, but they go to court with an injunction and say: ‘Look, I don’t want to pay taxes, can you give me an injunction here so I don’t pay?'”, the economist criticized and concluded.
WW Especial
Presented by William Waack, the program is shown on Sundays at 10pm on all platforms. CNN Brazil.
The CNN Brasil Members Club on YouTube is live. Be part of it and receive special content, behind-the-scenes and recommendations from the CNN journalism team. As a subscriber, you will have free access to the full text and cuts of WW Especial, in addition to having your question answered by the Fora da Ordem presenters. Click here and participate!
