The Brazilian Government has launched a new development program named Productive Development Policy (PDP).
PDP has three purposes:
1.- To foster investments in 25 strategic sectors and to increase Brazilian exports
2.- To stimulate development in the informatics and in the biotechnology industries
3.- To consolidate the Brazilian leadership in agribusiness, civil aviation and mining
PDP points to four targets:
1.- To yearly increase the investment levels from the present level of 450 billion Real (18% of the GDP) to 620 billion Real (21% of the GDP) until 2010
2.- To increase expenditures in technological research from 12 billion Real to 18.2 billion Real until 2010
3.- To raise the level of Brazilian exports from 1,18% to 1,25% of the world total
4.- To promote a 10% increase in the number of small and medium exporting companies
PDP implementation is based on 5 instruments in order to reach its goals:
1.- 210 billion Real in loans from BNDES (The Brazilian Bank for the National Economic and Social Development) to be granted until 2010
2.- 21 billion Real in tax exemptions
3.- Increased maturity terms in BNDES loans and financing operations
4.- Reduction in labor costs for software exporting companies
5.- Creation of a Brazilian Sovereign Fund
Despite the fact that the financing of the projects contemplated under PDP shall come from public funds, most of the investments therein foreseen shall be made by private companies and individuals.
Less Taxes and Less Bureaucracy
In addition to reduce tax levies, PDP relieves to some extent the bureaucracy in the exports sector.
The Brazilian Sovereign Fund
It is purported to render financial assistance to Brazilian companies going abroad.
The 25 sectors contemplated by PDP:
The health industrial complex
Technology in the information and communication areas
Nuclear energy Industries devoted to national defense products
Textile and clothing
Woods and furniture
Parfums and cosmetics
Service areas related to the naval and coastal shipping industries; leather, shoes and handcraft
Natural gas and petrochemical