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Request for Proposal ROUND 1

Section 3. Proposal Contents

Sampson Crooks

on 3 March 2013

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Transcript of Request for Proposal ROUND 1

Protection Section 3. Proposal Contents 2. Social Environment 3. Business Environment 1. Political Environment Round 1:
1. Political Environment
2. Social Environment
3. Business Environment Political Reform The political system has been known for having corrupt political leaders who are never punished, or at least that is the perception of the people of Brazil. Due to this perception the people of Brazil are fighting for Political System Reform. The driving force behind this reform comes from the Civil Society Organization who aim to empower people who are excluded of power. Control of political power and opinion is driven through private financial entities that have been able to discourage voters. Popular Inititiatives Direct Democracy
Referendum and Popular Initiative

Representative Democracy
Electoral Process Politics of Brazil The politics of Brazil is comprised of a framework that consist of a federal presidential representative democratic republic, where the President serves as both the head of state and head of the government. There is a multi-party system where Brazilian's are divided between internationalist liberals and statist nationalists. Political Parties Internationalist Liberals
Consists of politicians arguing that internationalization of the economy is essential for the development of the country.

Statist Nationalists
Rely on interventionism, and protection of state enterprises. Legal Systems of Brazil Brazilian Judiciary has administrative and financial autonomy guaranteed by the Constitution to guarantee individual collective and social rights, and resolve conflicts between citizens and state entities. Department of Public Prosecution is an independent body and does not belong to any of the three branches - Executive, Legislative and Judicial. It has autonomy in the structure of government and cannot be extinguished or have the powers transferred to another institution. Attorney General of the Union (AGU) is the highest advisory body to the Executive. The Brazilian Federal Constitution classifies it as essential to justice. Therefore, the national court takes the position of senior management and is not linked to any of the three branches (Executive, Legislative and Judiciary). Brazilian citizens and foreigners, who need legal, judicial and extra judicial assistance, and demonstrate a lack of resources, can count on the free services of the Public Defender of the Union (DPU).
The federal legislature consists of the Chamber of Deputies and Senate. New laws begins in the Chamber of Deputies and is revised by the Senate, and vice versa. The House and Senate form the National Congress, the Brazilian Parliament located in Brasilia, Brazil's capital, where the senators and congressmen work. Federal Executive Branch acts to implement government programs and policies. It is formed by direct administration bodies such as ministries, and indirect, such as public corporations and municipalities. Brazilian regulatory agencies are responsible for overseeing the provision of public services performed by the private enterprise. In addition to controlling the quality of the service, they establish rules for the sector. Public foundations, executive and regulatory agencies, public companies are some examples of independent agencies - the organs that integrate the indirect public administration. The current federal government comprises 26 ministries, nine departments of the Presidency and six bodies the president may, by special law, create, extinguish and modify the structure of ministries, departments and public administration bodies. Government Monetary Initiatives:
Flexible monetary policy
Credit expansion
Lower borrowing cost
Increase in public investment
Policies to prevent currency from appreciating
Responsible fiscal stance to shore up economic growth
Central bank reduced benchmark interest rates
Cut borrowing costs when economy started to shrink
Policy to prevent the Real from gaining to protect manufactures against imports (predatory competition)
Revive slow growth by stimulating consumption
Take measures to raise productivity of Brazilian companies
Belief domestic demand will be fueled by low interest rates, moderate credit expansion, government social spending and a tight labor market
Energy price cuts to consumers/industry to increase competitiveness and tame inflation
Cut taxes on payrolls and consumer goods
Eased (manipulate) reserve requirements for banks to provide credit for capital goods investment
Plans to attract billions of Reals in infrastructure investments Brazil’s Monetary Policy Brazil’s Monetary Policy Monetary policy is a tool the government uses to influence its economy. The government attempts to influence the overall level of economic activity in line with its political objectives by using its monetary authority to control the supply and availability of money. The goal is low unemployment and inflation, economic growth and a balance of external payments. Brazil’s Monetary Policy Transparency International carried out a survey of 3,000 businesspeople in 30 diverse countries around the world.
The survey was conducted from May-July 2011 and asked businesspeople for their views on bribery and corruption, what works to stop corruption in the private sector, and what the business community can do to put corruption out of business. ‘Putting Corruption Out of Business’ survey Demonstrations and political or labor strikes can occur in urban areas and may cause temporary disruption to public and private transportation.

Individuals with ties to criminal entities and traffickers operate along all the Brazilian borders. These organizations are involved in the trafficking of illicit goods and drugs.

Colombian terrorist groups have been known to operate in the border areas of neighboring countries. Colombian groups have kidnapped residents and tourists along the Colombian border.

Blackouts in the large cities have struck areas with high concentrations of hotels and resident U.S. citizens.

Flooding and mudslides can occur throughout the country, and can be fatal.

The U.S. Embassy restricts travel of U.S. government employees in areas where narcotics traffickers and other criminals have recently engaged in violence. The violence is usually directed against rival groups, local security forces, local government authorities, and occasionally civilians.

Strikes by police and other emergency service providers are not uncommon. Security - Brazil What you would be willing to do in the fight against corruption?
I would support my colleagues if they fought against corruption – 96%
I can imagine myself getting involved in the fight against corruption – 77%
I would report an incident – 50% Corruption Survey - Brazil During the last 12 months, do you think that your company has failed to win a contract or gain new business in this country because a competitor paid a bribe?
66% yes 34% no

Which of the following is the main barrier to stopping bribery and corruption in the private sector in this country?
Corruption and bribery related crimes are not prosecuted – 38%
Businesses do not take the issue seriously enough – 5%
Unethical behavior is widespread among public officials – 21%
Corruption is widely accepted as a fact of life – 32%
None of these – 4% Corruption Survey - Brazil
Brazil ranks 69 out of 183 countries on Transparency International’s 2013 Corruption Perceptions Index.

Brazil ranks 14th out of 28 major exporting countries on Transparency International’s 2011 Bribe Payers Index, which assesses which major exporting countries are likely to pay bribes when they do business abroad.

Brazilians believe political parties and parliament are the most corrupt institutions and 64 percent of those surveyed said corruption had increased in the past three years, according to the Global Corruption Barometer 2010/2011. Brazil’s Corruption Perception Index (CPI) The Corruption Perceptions Index (CPI) ranks countries and territories based on how corrupt their public sector is perceived to be.

It is a composite index, drawing on corruption-related data collected by a variety of reputable institutions.

The CPI reflects the views of observers from around the world, including experts living and working in the countries and territories evaluated.

The CPI is the most widely used indicator of corruption worldwide. Corruption Perception Index 2012 Brazil Corruption Index/Security Worst Score Best Score United States Brazil CPI Data Comparison Brazil’s Demographic Details Almost 75% of Brazilians live in cities
Cities in Brazil, except for the state of São Paulo, are usually not arranged in a single network, but rather on various export paths to seaside ports. The most important cities are on the coast or close to it. Brazil’s Demographic Details Brazil has 96 men per 100 women according to the 2010 Population Census, there is a ratio of 96.0 men per 100 women in Brazil; a result of the exceeding 3,941,819 women in relation to the total number of men.

The contribution of all age groups up to 25 years of age to the total population in 2010 is lower than the one observed in 2000; whereas the other age groups had their contributions increased. The group of children from zero to four years of age of males, for example, accounted for 5.7% of the total population in 1991, while females accounted for 5.5%. In 2000, these percentages dropped to 4.9% and 4.7%, reaching 3.7% and 3.6% in 2010.

At the same time, the enlargement of the age pyramid top can be observed in the growth of the relative contribution of the population of 65 years of age or over, which changed from 4.8% in 1991, to 5.9% in 2000, and reached 7.4% in 2010.

Average number of residents per household fell to 3.3. The household density, the ratio between the number of persons living in private households and the number of private occupied households, recorded a decrease of 13.2% in the last census period. This behavior was maintained both in urban and rural areas.

The addition of almost 23 million urban residents led to an increase in the urbanization level, which changed from 81.2% in 2000, to 84.4% in 2010. That rise resulted from the natural increase per se in the urban areas, as well as from the migrations to those areas. Brazil’s Demographic Details Nationality: Brazilian

Ethnic groups: white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census)

Religions: Roman Catholic (nominal) 73.6%, Protestant 15.4%, Spiritualist 1.3%, Bantu/voodoo 0.3%, other 1.8%, unspecified 0.2%, none 7.4% (2000 census)

Languages: Portuguese (official and most widely spoken language). Note: less common languages include Spanish (border areas and schools), German, Italian, Japanese, English, and a large number of minor Amerindian languages

Literacy. Definition: age 15 and over can read and write, total population: 88.6% male: 88.4%, female: 88.8% (2004 est.)

Education expenditures: 5% of GDP (2007)

Health expenditures: 9% of GDP (2009)

Physicians density: 1.72 physicians/1,000 population (2007)

Hospital bed density: 2.4 beds/1,000 population (2009)

Obesity - adult prevalence rate: 11.1% (2003) Brazil’s Demographic Details Brazil has a population of 190 million people, which makes it the most populous country in Latin America and the fifth most populous country in the world. Immigration was a major determinant of the population structure in Brazil. During colonial times, Portuguese and Africans immigrated to the northeastern region of Brazil. During the period between 1821-1945, approximately 5.2 million Europeans immigrated to Brazil, settling in the southern agricultural regions. After World War I, the Japanese community in Brazil grew to become the largest expatriate Japanese group of the world, with more than 1 million immigrants. Brazil’s Demographic Details Brazil’s Labor Force:
107.1 million (2012 est.)
Country comparison to the world: 6
Labor force - by occupation:
Agriculture: 20%
Industry: 14%
Services: 66% (2003 est.)
Unemployment rate:
6.2% (2012 est.)
Country comparison to the world: 63
6% (2011 est.) Brazil’s Labor Pool Brazil’s Labor Pool From 2003 to 2011, the unemployment rate dropped from 13% to 6%
Skilled engineers are becoming harder to find as Brazil builds out, goes more high tech, and needs to develop new technologies for its massive deep water oil discoveries.
Annual population growth, at 1.5% in mid-1990, is expected to drop to 0.6% by the end of the decade, while expansion in the labor force is projected to slide to 0.9% in 2020, from 2.3%.
Issues with Brazil’s Labor Force
The biggest obstacle in Brazil is the lack of workers and a low national savings rate.
Access to education has improved, but it’s education system is still poor by Organization for Economic Cooperation and Development standards.
Brazil lacks trained engineers, scientists, technicians, and laborers capable of learning advanced operating systems especially in the high-tech manufacturing and services industries of the future.
Brazil’s ratio of working age people to non working age people will shrink significantly between now and 2030.
In 2030 Brazil’s median age is projected to be 37.4
The country will face rising demands for pensions and health care programs for seniors, with a shrinking labor pool to support that spending
Inefficient and unreliable judiciary system that increases risk; high labor costs; and corruption. Brazil’s Labor Pool A labor pool is a source of trained personnel from which available workers are recruited. Employers hire workers with the applicable skills sets and knowledge required to fulfill their positions. Brazil’s Labor Pool Labor stats: Brazil vs. United States Brazil’s Labor Pool Labor stats: Brazil vs. United States Brazil’s Labor Pool Brazil has the 6th largest economy using nominal gross domestic product (GDP)
Ranked 2nd largest economy in western hemisphere/largest among Latin America nations
Economy driven by large/well-developed agricultural, mining, manufacturing, and service sectors
The next big commodity for export from Brazil is predicted to be oil
Brazil's had an annual GDP growth of 2.7% for 2011 and 2012 GDP estimate of 3%
Predicted to be one of the top 5 largest economies in the future Brazil has continued to enhance the transparency and reduce the complexity of its trade regime, including by streamlining its import procedures and consolidating import regulations.
Import licensing no longer applies to all goods although non-automatic requirements still affect over a third of all tariff lines or parts of lines.
Also, the growing number of rules of origin, and preferential tariffs, resulting from the increasing network of preferential agreements may offset in part the impact of efforts to simplify the import regime.
The tariff continues to be Brazil's main trade policy instrument.
Brazil applies MERCOSUR's Common External Tariff (CET), with a number of exceptions.
The average applied MFN tariff decreased from 13.7% in 2000 to 10.4% in 2004, reflecting to a large extent the stepped elimination of the general tariff increase adopted in 1997.
Unlike in many WTO Members, Brazilian tariffs on agricultural goods are on average lower (10.2%) than on non-agricultural products (10.5%).
Tariff dispersion is relatively low, but the tariff shows signs of escalation in most industries.
Brazil has bound its entire tariff, mostly at ceiling levels. In Conclusion In 2000 Brazil's imports were distributed among the following categories:

Consumer goods 6.6%
Food 6.2%
Fuels 14.9%
Industrial supplies 29.6%
Machinery 30.0%
Transportation 12.6%
Other 0.1% Brazil’s Imports The most popular export commodities from Brazil are road vehicles iron and steel. The country also exports a substantial amount of iron ore, soybeans, meat, and coffee. The top nine exports in 2000 were as follows:

% of Country Total
Road vehicles 7.9%
Iron ore and concentrates 5.5%
Soybeans 4.0%
Meat and meat preparations 3.5%
Coffee 3.2%
Animal feed 3.1%
Footwear 2.8%
Pulp and waste paper 2.9%
Aluminum 2.6% Brazil’s Export Commodities Over the last few years, most of Brazil's non-tariff barriers to trade, which for many years were the hallmark of Brazil's restrictive trade regime, were eliminated or drastically reduced.

Import duties were reduced from an average of about 50% in the late 1980s to 14.2% and a maximum of 35%.

While the overall level and pervasiveness of non-tariff barriers have been drastically reduced, some import duties remain high in comparison with other countries.

While the depression/inflation problems of recent years have reduced purchasing power by about 50% among the working and lower middle classes and further skewed the already highly uneven distribution of income, the Brazilian market remains enormously attractive to US businesses.

Although trade barriers continued to recede with the government of former President Itamar Franco who assumed office in 1992, trade liberalization lost some of its momentum, and there were serious concerns regarding automobile, telecommunications, and informatics sectors. The reforms gained new momentum under the next President Cardoso's administration. History Brazil's long-favorable foreign-trade balance deteriorated substantially between 1958 and 1974 as a result of industrial expansion, which necessitated increased imports of industrial capital goods and petroleum.
During 1975/76 and again from 1978 to 1982, the foreign-trade balance was in deficit. Beginning in 1983, Brazil recorded trade surpluses: $5.1 billion in 1983, $11.8 billion in 1984, and $11.3 billion in 1985. This achievement was the result of policies that restricted imports and offered substantial incentives to exporters
Between 1963 and 1981, exports expanded at an average annual rate of 17%, but they grew by only 9.1% between 1982 and 1985.
Coffee has long been Brazil's dominant export, but the proportion of its export earnings declined from 41.3% in 1968 to3.2% in 2000.
As a result of an ambitious energy development program, Brazil's reliance on imported oil dropped from 70% of its needs in 1980 to 45% in 1985. History Brazil
Trade Policy Trade: Trade balance (2011) --$20 billion surplus. Exports--$202 billion. Major markets--China 15%, United States 10%, Argentina 9%. Imports--$182 billion. Major suppliers--United States 15%, China 14%, and Argentina 8%. Exchange rate (October 3, 2011): U.S. $1 = 1.75 Brazilian reais. U.S. Chamber of Commerce Trade Reports for Brazil In 1995, Brazil joined with Argentina, Paraguay, and Uruguay to form the MERCOSUR common market, made up of 200 million people worth over $1 trillion.

The agreement covers tariffs for over 85% of some 9,000 items with the remaining 15% to be covered by 2003 and complete coverage to be achieved by 2006.

In 1999, Argentina implemented trade restrictions on certain Brazilian products because prices were ridiculously low from the currency devaluation. Brazil replied by putting its own trade barriers in place. Such measures did not bode well for the MERCOSUR community. Argentina had been in recession for several years, and its fallout of late 2001 further worsened MERCOSUR's situation. In addition, Brazil has had considerable problems with its electrical distribution system in the past few years, forcing the rationing of electricity and complicating production. Trade Tariffs & Restrictions Before World War II, trade policies were used mostly as a source of revenue or as a response to specific groups such as the coffee producers, rather than as a means of achieving national economic goals. In the early 1950s, Brazil began to use trade policy in a more deliberate way to promote industrialization. Brazil’s Culture Brazil’s Business Etiquette Do’s and Don’ts DO schedule extra time in between meetings since they are often delayed or cancelled without warning. Always be on time because as a foreigner it’s expected of you. DO expect to be interrupted. The Brazilian method of communication usually entails a lot of overlapping speech and people are not afraid to say what they think. DO expect to spend time getting to know your Brazilian business counterparts before any business takes place. DO make eye contact as this shows you are paying attention, interested and honest. DO expect meals to take longer, they are treated like a
celebration. DO accept food or drinks that you are offered during social or business occasions. DON’T rush business dealings with your Brazilian colleagues and avoid pressing for final decisions. DON’T publicly criticize your Brazilian counterparts. If you need to tell them something negative, do so in private so they do not lose face or their pride in front of others. DON’T show frustration or impatience, it will reflect poorly on you. Brazilians pride themselves on their ability to be in control, so acting in a similar fashion will improve your relationship and interactions. Expressions such as ‘como vai’ and ‘tudo bem’ are common forms of saying hello once you know someone and can show you are making an effort to know them.

It’s polite to address Brazilian business associates by their title and surname at the first meeting or when writing to them. Once you have developed a relationship, it’s common to use just first names, or their title followed by their first name.

An extensive system of regulations combined with the relaxed attitude to time often results in lengthy business meetings. To help establish successful negotiations, don’t rush the process and spend the time to continue developing relationships.

It’s a common practice to hire a middleman, to help with business dealings. They will help you navigate Brazilian bureaucracy for a nominal fee.

Portuguese is the dominant language in Brazil. Brazilians do not perceive themselves as Hispanics, and will only take offense if addressed in Spanish.

Make sure you explain what your company does, where it is, and where you fit in the organization; job titles do not always translate well.

Use your English business cards.

Make sure you are perceived as being accessible.

Contracts are signed by companies - but are negotiated by individuals. Brazil’s Social & Business Culture Brazil’s culture is a blend of Portuguese, African and indigenous Indian influences.

Brazilian culture is known for its hospitality, openness and colorful and rhythmic events such as Carnival, many of these events have a strong Catholic influence.

Brazil has distinct class structures prevalent in almost all aspects of society.

Brazil is a collectivist society, placing family at the center of the social structure.

The Brazilian business culture often has family members working at same company, either family owned or otherwise.

Brazilians depend on relationships with others. It is essential to spend time getting to know your Brazilian counterparts, both personally and professionally. Knowing the right people will also help minimize frustrations of doing business in Brazil.

Business negotiations can take much longer than you are accustomed to. Brazilians live life at a slower pace and it carries over into the business environment. Brazil has a very relaxed and flexible approach when it comes to time. Punctuality and precise plans are not common. Meetings are often delayed or canceled without prior warning. Brazil’s Social & Business Culture In most Brazilian cities, working hours are 8:30am to 5:00pm with an hour or two in the middle for lunch.

Business appointments should be scheduled at least two to three weeks in advance and confirmed once you arrive in Brazil. Business meetings can go on longer than anticipated.

Brazilians love to socialize and spend time with each other. Coffee is usually served before or during a meeting.

Some Brazilian business people dress fairly casually at their office but they generally expect visitors to wear appropriate business attire.

Brazilian companies tend to have vertical hierarchies. Managers at the top make most of the decisions.

Top management is dominated by men, but women are slowly gaining ground.

The distinct class structure is still prevalent in the society and business culture. Class is mostly determined by economic status and is reflected in salaries, resulting in large disparities of pay and status.

The handshake is the most common form of greeting business colleagues.

When initially meeting someone, it’s polite to say ‘muito prazer’ (‘my pleasure’). Brazil’s Social & Business Culture DON’T bring up topics of conversation such as corruption or deforestation as these are sensitive issues at the moment. Brazil is a country shaped by a diverse culture and geography. Understanding the diversity of Brazilian society and the values and attitudes of the people will help you develop better relationships and do business more successfully with your Brazilian colleagues. Brazil’s Culture The Judiciary Department of Public Prosecution Attorney General of the Union (AGU) Public Defender of the Union Legislative Executive Branch Regulatory Bodies Independent Agencies Organization of the Federal Execution Legal Systems - Sampson Crooks
Political Systems - Sampson Crooks
Monetary Policy - Ron Wiederholt
Corruption Index/Security - John Breneman
Trade Policy - Lisa Sharkey Environmental Standards - John Breneman
Living Standards - Lisa Sharkey
Culture - Ron Wiederholt
Religious and Value Systems - Sampson Crooks
Demographic Details - Ron Wiederholt Labor Pool - Ron Wiederholt
Infrastructure - John Breneman
Trade Agreements - Lisa Sharkey
Intellectual Property - Sampson Crooks
Economic Development - John Breneman Brazil Additional Information For more information on how the CPI data is gathered and calculated, visit the Transparency International CPI FAQs at - http://cpi.transparency.org/cpi2012/in_detail/

For annual, detailed results of the Corruption Perception Index: Please browse the research presented by Transparency International on their website at - http://cpi.transparency.org/cpi2012/results/

The Corruption Perceptions Index data is available for download in a data ZIP file. It contains an Excel spreadsheet of the full table, notes on the methodology and a description of the index's sources http://files.transparency.org/content/download/533/2213/file/2012_CPI_DataPackage.zip Corruption Perception Index The following selections provide the responses from Brazilian businesspeople and reflect the general view on business corruption within their boarders. Does your company…
Have a code of ethics – 73%
Have an anti-corruption policy – 46%
Conduct regular staff training on anti-corruption – 37%
Include corruption prevention in its risk management strategy – 56%
Have measures in place to support potential whistle blowers – 34%
Prohibit facilitation payments – 85%

In your view how effective are each of the following means to stopping corruption and bribery in the private sector?
International Conventions on bribery and corruption – 17%
National anti-bribery laws – 42%
Investigative journalism – 70%
Multi-stakeholder initiatives, involving business, government and civil society – 48%
Due diligence, for example by business partners, governments and banks – 52%
Inclusion of corruption risks in investors valuation models – 35% Additional Information 'Putting Corruption Out of Business' Survey For full feature article, including survey and results, use the Transparency International link: http://www.transparency.org/news/feature/putting_corruption_out_of_business

To download the complete data set for the 2011 survey: http://www.transparency.org/files/content/feature/2012_PuttingCorruptionOutOfBusiness_FullDataSet.xls Notes - US Department of State Security - Brazil Global Terrorism Index Of the 158 countries surveyed, only 31 had not experienced a single event classified as a ‘terrorist act’ since 2001.
These included Brazil, Croatia, Ghana, Jamaica and Poland.

This is Brazil's 5th consecutive year without a terrorism incident, following 2006 where there were 3 reported incidences totaling 20 deaths. Air pollution levels are high in big cities, mainly due to traffic congestion and the concentration of industrial activity.
Problems related to lack of sanitation are sometimes worse in middle-sized and small cities than in big cities, which have more resources to deal with them. Brazil - Urban Pollution Degradation of the quality of water resources is another serious problem stemming from:
extensively and poorly controlled use of fertilizers and pesticides
problems associated with the lack of basic sanitation
other contamination of diverse origins (discharge of insufficiently treated industrial effluent, accidents, etc.).
In areas of intensive agricultural production, this creates serious problems of soil erosion, sedimentation of streams and contamination and reduction of the level of underground rivers.
Deforestation at river heads also causes degradation of rivers.
Recently, however, the Ministry of the Environment’ Secretariat for Water Resources published its Annual Water Resources Management Plan which seeks to address these problems. Brazil - Water Resources Several schemes are being implemented to curb deforestation, such as the Program for Protection of Amazon Areas, or the Sustainable Amazon Program.
Deforestation in the Amazon region and elsewhere in Brazil is mainly due to economic pressures:
Expansion of the surface dedicated to agriculture
Infrastructure works like roads or dams
Activity in the timber industry in the Amazon region
Tourism in Pantanal or the Atlantic forest, etc.
Deforestation is also providing around 60% of Brazil’s greenhouse gas emissions and more than 3% of global greenhouse gas emissions. Brazil - Deforestation Shown by the development of the Brazilian Agenda 21 in 1992 and the 2004-2007 PPA, Brazil has an ambitious environmental agenda, an expansive Ministry of the Environment, and a wide variety of environmental legislation.
However, effective implementation is still lagging behind. Brazil has the legislation but lacks strongly in enforcement.
Brazil’s Ministry of the Environment endeavors to promote the environment as a horizontal issue that should be taken into account in all important public policies, other Ministries still consider the environment as an impairment to economic growth.
The three major problems stemming from the lack of environmental standard enforcement are continuing deforestation, poor water quality, and urban pollution. Brazil’s Environmental Standards Crimes and Infractions Act - classifies environmental offenses and sets out the corresponding penalties
Conservation Units Act - defines environmental conservation and sets forth the types of Conservation Units
Atlantic Forest Act - outlines rules for the production and use of resources in the Atlantic Forest biome and the protection of other forest areas
Public Forest Management Act - defines the sustainable use of public forests, sets forth the applicable rules on concessions, and creates the Brazilian Forest Service
Environmental Services Payment Act * - defines environmental services and the conditions governing the provision thereof, in addition to establishing a national law governing payment for environmental services
Federal Entities Competencies Act - sets forth the responsibilities of the federal, state, and municipal governments with respect to the environment Legislation - Ministry of Environment National Environmental Council - a deliberative body providing advice and counsel to the National Environmental System
National Legal Amazon Council - coordinates and oversees integrated national policies for the Amazon region in conjunction with state and municipal governments
National Water Resources Council - formulates mediation rules for different water users and coordinates the integration of public policies in Brazil
Steering Committee of the National Environmental Council - approves guidelines governing the activities of the National Environmental Fund
Genetic Resources Management Board - standardizes the authorizations for access to and transfer of genetic resources
Public Forests Management Commission - deliberates on management rules for public forests under concession
National Forests Commission - proposes and evaluates measures to comply with the principles and guidelines of public policies governing the forest sector, and monitors joint forest management efforts Brazil’s Ministry of Environment - Brazil's environment is one of the richest in the world, much of its fauna and flora is found nowhere else on earth.
- Its ecosystems contain more than 15% of the plant and animal species known to science.
- Brazil also holds 12% of the world’s available freshwater.
-According to the Ministry of the Environment, the value of environmental services rendered by Brazil's ecosystems is several trillion euros per year. (in terms of mega-biodiversity conservation and carbon sequestration) Brazil’s Environment Brazil’s Environmental Standards The United States engages with Brazil on trade and investment matters through a number of initiatives.

On March 19, 2011, President Obama and President Rousseff signed the Agreement on “Trade and Economic Cooperation” to enhance cooperation on trade and investment between the Western Hemisphere's two largest economies. 

The agreement will expand our direct trade and investment relationship by providing a framework to deepen cooperation on a number of issues of mutual concern, including innovation, trade facilitation and technical barriers to trade.  The agreement represents a shared commitment to broad-based economic growth, and will become a foundation for cooperation in other trade fora. Brazil & the USA Agreements/Partner(s)
MERCOSUR – Mexico-Auto Sector (ACE 55)
Columbia, Ecuador, Peru & Venezuela (ACE 39)
Argentina (ACE 14)
Uruguay (ACE 2) Partial Preferential Agreements Multilateral Agreements Agreement/Partner(s):

MERCOSUR – Peru (ACE 58)

MERCOSUR – Colombia, Ecuador, & Venezuela (ACE 59)


MERCOSUR – Andean Community (ACE 56)


MERCOSUR - SACU (Southern Africa Customs Union) Brazil’s Framework Agreements Free trade agreements are intended to stimulate trade between countries by reducing or eliminating restrictions such as tariffs, quotas, special fees and taxes.



MERCOSUR – Bolivia (ACE 36)

MERCOSUR – Chile (ACE 35) Brazil’s Free Trade Agreements Trade Agreements Brazil & China Mercosur -- the Southern Common Market -- is a regional trade agreement in South America among Argentina, Brazil, Paraguay and Uruguay.

Mercosur is a major trading bloc in the global economy, accounting for three-fourths of the economic activity in South America.

Mercosur was originally set up under the Treaty of Asuncion in 1991 to promote free trade among its member states. Trading with MERCOSUR countries Brazil has a key and strategic role to play on a global scale Collegiate bodies of the Ministry of Environment: Brazilian Environmental Legislation Brazil's Amazon basin covers 6.5 million km², around 60% of the country's territory. The FAO’s Forest Resource Assessment indicates an average annual loss of 18,000 km² for 2000-2005 in Amazonia. The third major environmental problem is Urban Pollution. In many cases the strong migration flows from rural to urban areas during the last few decades unleashed an explosive and uncontrolled growth, which was not accompanied by parallel development of basic infrastructure. Basis for Growth Growth Acceleration Program (PAC) Brazil's Infrastructure Many believe that the disconnect between infrastructure and market size illustrates the potential for significant infrastructure growth in the coming years. Many economists believe that even though Brazil’s infrastructure is poor by international standards, there is a large potential for improvement. In a World Economic Forum survey, Brazil ranked 74th among countries in infrastructure. In the same survey, it ranked 10th globally in market size. Most countries with a market size comparable to or larger than Brazil’s have better infrastructure — the notable exception being India. Nearly 68% of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 66%.

56% of women have jobs. This is less than the OECD average of 59% and much less than the 80% employment rate of men in Brazil. Jobs The average household net-adjusted disposable income is lower than the OECD average of $22,387 USD.

The average household wealth is lower than the OECD average of $36,238 USD. Income Housing costs take up a large share of the household budget and represent the largest single expenditure for many individuals and families, by the time you add up elements such as rent (or loan repayments for those buying their own home), gas, electricity, water, furniture or repairs.

82% of people say they are satisfied with their current housing situation, lower than the OECD average of 87%.

In terms of basic facilities, an estimated 93.3% of people in Brazil live in dwellings with private access to indoor flushing toilets, lower than the OECD average 97.8%. Housing In recent years, Brazil has succeeded in significantly reducing its poverty rate both in rural and urban areas, thanks to its impressive economic growth and increased political focus on poverty.
Approximately 40 million Brazilians have been able to step out of poverty and join the middle classes over the past decade.
But, although Brazil is a middle-income country and a major industrial power in the region, hardship and huge income inequalities still remain widespread in parts of the country. Rural Poverty in Brazil The IBGE (Instituto Brasileiro de Geografia e Estatistica) has released the findings from its 2010 census, which state that 22.03 percent of the 6,323,037 residents of Rio de Janeiro live in favelas, or ‘substandard’ and irregular housing communities. 2010 Census Living Standards Brazil The finance minister for Brazil, Guido Mantega said that it may take ten to twenty years for Brazilian citizens to have a standard of living similar to Europe.

Commenting on the study of the Centre for Economics and Business Research (CEBR), which points to Brazil as the worlds sixth largest economy, ahead of the United Kingdom. Standard of Living in
10 to 20 years The distribution of wealth is a barometer for a successful modern society, and while Brazil’s executives boast the highest pay in the world.

The minimum salary has just been increased to R$622 (US$335) per month for 2012.

Some thirteen million families, or 45 million people across Brazil, receive direct financial support from the Bolsa Familia program.

Depending on family income per person (limitied to R$140), the number and age of children, benefit amount received by the family can range from R$32 to R$306. Distribution of Wealth Religious and Value Systems Roman Catholics Brazilian Religion Unity and Diversity Right vs. Wrong Brazil comprises of 2/3 of Roman Catholics which was introduce to the country by Portuguese Jesuits in 1549 with the mission of converting the Indigenous people. Religion
Roman Catholicism
No Religion
Others Percent
3.2% Over the next four years, the government plans to spend around $470 billion (US) on 12,265 projects to improve roads, railroads, seaports, airports, stadiums as well as the country’s energy generation and distribution systems.
Analysts believe that Brazil’s infrastructure desperately needs every penny.
The country that is about to host the two largest mega-events in the world is a country where 14% of roads are paved (most of them in São Paulo). A team of Brazil's technocrats in logistics, generation and transmission, and in oil and gas are taking the sales pitch to What's Ahead: 2016 Olympics Brazil will showcase its biggest investment opportunities on a global road show to try to drum up investment in direly needed infrastructure projects while urging the private sector to accept lower returns than it had in the past. Finance Minister and the CEO of investment bank BTGPactual pitched Brazil's potential to hundreds of bankers and business leaders at the road show's launch in Sao Paulo. London, New York and potentially Tokyo and Singapore in the coming weeks in search of $460 billion in infrastructure investments through 2015. PAC is a strategic investment program created in response to the growth needed for the 2016 Olympics, which combines measures of management and works.
PAC is currently in its second phase, which started March 29, 2010 and is estimated to span through 2014, with an estimated investment amount of US$ 526 billion (R$ 958.9 billion) for the period from 2011 to 2014 PAC 2 Objectives – Axes, Areas, Targets and Estimated Investments Areas – Generation and Transmission of Electric Energy, Oil and Natural Gas, Shipbuilding, Renewable Fuels, Energy Efficiency, Mineral Research.

Target – Secure reliable supply through an energy supply mix based on renewable, clean sources; Develop discoveries in Pre-Salt, expanding its production.

Estimated investment – US$ 255,3 billion (R$ 465.5 billion) (2011-2014) and US$ 343,9 billion (R$ 627.1 billion) (post-2014). PAC - Energy Areas – Highways, Railways, Ports, Waterways, Airports, Equipment for local roads.

Target – Consolidate and expand logistics network, interconnecting several modes, thus ensuring quality and safety.

Estimated investment – US$ 57,3 billion (R$ 104.5 billion) (2011-2014) and US$ 2,47 billion (R$ 4.5 billion) (post-2014). PAC - Transports Areas – Light for All, Water Supply in Urban Areas, and Water Resources.

Target – General access to water and electric energy.

Estimated investment – US$ 16,6 billion (R$ 30.6 billion) (2011-2014). PAC – Water and Light for All Areas – My House, My Life, SBPE Financing (Brazilian Savings and Loans System), Urbanization of Precarious Settlements.

Target – Reduction of housing deficit, stimulating the civil construction sector and generating job and income.

Estimated investment – US$ 152,5 billion (R$ 278.2 billion) (2011-2014) PAC – My House, My Life Areas – Units for Immediate Attention (UPA) and Basic Health Units, Day-care and Pre-school centers, Sports courts at schools, PAC Squares, and Community Police Stations.

Target – Presence of the State in poorer districts – increasing coverage of services.

Estimated investment – US$ 12,6 billion (R$ 23 billion) (2011-2014). PAC – Citizen Community Areas– Sanitation, Prevention in Risky Areas, Urban Mobility and Paving.

Target – Tackle the major challenges of large urban areas, thus providing better quality of life.

Estimated investment – US$ 31,3 billion (R$ 57.1 billion) (2011-2014). PAC – Better City International Synergy (Team 2) has reviewed and researched the portfolio of failing global projects provided by International Company request for proposal (RFP) No. 2013. Our project management company specializes in turning around projects that have exceeded their schedule, budget or scope constraints. We are uniquely positioned in the marketplace and equipped to handle the challenges of performing in a global environment.

International Synergy has performed an in-depth analysis of Brazil’s political, social and business environment. We studied, documented and trained our project management teams to work within Brazil’s unique culture and business systems environment. With the knowledge we have gained, we are confident we can succeed in turning the portfolio of failing projects around.

The following presentation highlights the unique requirements and challenges that will be faced within Brazil’s political, social and business environment. International Company Request For Proposal (RFP) No. 2013 Agreements/Partner(s):

World Trade Organization (WTO)

International trade can serve to provide people in all parts of the world with new products, technologies and services to improve their standards of living. New markets are opened up that provide opportunities for employment and growth, thus stimulating global economic development. But for a global economy to function properly, clearly defined ground rules are needed. That's where the World Trade Organization comes in. Leaders of Brazil and China signed trade agreements aimed at increasing investment and trade flows at a time when economic growth in both nations is losing momentum.

President Dilma V. Rousseff of Brazil and Prime Minister Wen Jiabao of China agreed on a common agenda of investments in the mining, industrial, aviation and infrastructure sectors to encourage commerce between the two nations.

Finally, China the world’s second largest economy, after the United States, is Brazil’s biggest export market. Brazilian Values Traditional
Paternalism Modern
Favor Women
Equality Intellectual Property Growth Innovation Patent Services Values and practices have blended with religion and the culture resulting in a more tolerant society. Tolerance Pragmatism Brazilian's live according to idealistic rules however the theory and practice can be viewed as a contradiction. In the 1990's laws that were not enforced were ignored.
Doing the right thing requires conditions.
Laws and rules are often imposed from the outside.
Brazilian's value the rules and laws that work for the common good of the people. Over 8k patents issued, 35K application received in 2012. It is estimated that there will be 50K new patents issued in 2013. Intellectual Property laws provide protection through patents, trade marks, copyright, designs, circuit layouts, and plant breeder’s rights. Brazil is gaining traction and developing Intellectual Property law to promote new innovation. Enforcement Brazil Patent Application
Brazil Patent Fees
Brazil Design Application
Brazil Design Patent Fees
PCT Brazil Patent Application
PCT Brazil Patent Fees
International Patents
Trademark Registration Brazil
BR Domain Name Registration Brazil The United States is working with Brazil to guarantee protection of (IP) Intellectual Property. Through partnering with Brazil the United States is promoting the enforcement, adoption of policies which encourage innovation, and public awareness of the importance of intellectual property rights. The Brazilian National Council Against Piracy, private sector groups and other interested parties to protect the rights of innovators and consumers are joining in. Enforcement of (IP) is essential to economic growth in developing countries. Government Polices National Strategy is focused on Science, Technology and Innovation through 2012 - 15.
There is a push towards a strategy for the restructuring and modernization of the National Institute of Industrial Property (INPI). INPI Priority Sectors Information
Communication Tech
Pharmaceutical Products
Oil and Gas
Green Economy
Social Development GDP Brazil's investment into R&D at the present time is around 1.2% of the countries GDP. It is projected to increase to 1.8% by 2014. Protection Political Systems RFP Round 1 International Synergy Team Members:
Ron Wiederholt
Lisa Sharkey
John Breneman
Sampson Crooks References Economic Development Public Finances Despite slower growth in 2011, Brazil overtook the United Kingdom as the world's seventh largest economy in terms of GDP.
Urban unemployment is at the historic low of 4.7% (December 2011), and Brazil's traditionally high level of income equality has declined for each of the last 12 years.
Brazil's high interest rates make it an attractive destination for foreign investors.
Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchanges markets and raise taxes on some foreign capital inflows.
President Dilma Rousseff has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint. Forecast GDP Rank: 6th (nominal)
GDP: $2.493 trillion (2011 est.) GDP by sector: agriculture: 5.5%, industry: 27.5%, services: 67%
Inflation (CPI): 5.45% (October 2012)
Population below poverty line: 8.5% (2011)
Labor force: 104.7 million (2011 est.) GDP per capita: $12,916 (2011) GDP growth: 2.7% (2011) Labor force by occupation: agriculture: 20%, industry: 14% and services: 66% (2003 est.) Unemployment: 4.6% (December 2012) Public debt: 54.2% of GDP (2011 est.)
Revenues: $978.3 billion (2011 est.)
Expenses: $901 billion (2011 est.)
Credit rating:
A- (Domestic)
BBB (Foreign)
A- (T&C Assessment)
(Standard & Poor's)
BB- (Wikirating)
Foreign reserves: $377.5 billion
(November 2012) Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors
Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets.
After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years.
Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth to 2.7% for 2011 and similarly in 2012, though forecasts for 2013 growth are somewhat higher. Economic Development Economic Development In conclusion The International Synergy Team is well prepared to provide solutions to resolve failing global projects. Our team has a thorough knowledge of Brazil's political, social, and business environment to develop a comprehensive proposal that will efficiently and economically result in a successful project completion. We are confident in our team's expertise to lead this project within scope, schedule and budget. 2010 population census summary. (2011, April 29). Retrieved from http://www.ibge.gov.
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