Will It Work? Lula’s Government Will Rely on State-Owned Companies Like BNDES and Petrobras to Promote National Market Expansion

The Current President Highlighted The Importance Of State-Owned Enterprises In The Market Growth And Economic Uplift Of The Country. The Lula Government Aims To Rely On BNDES And Petrobras To Promote A New Cycle Of Innovation, Research, And Development In The Country.

Receiving The Presidential Sash For The Third Time Last Sunday, (01/01), Current President Lula Commented On The Commitments Of His New Government And Highlighted Some Important Points That Will Be The Pillars In The Coming Years. Among Them Is The Strengthening Of The Lula Government’s Relationship With Brazilian State-Owned Companies, Such As BNDES And Petrobras. The President Stated That He Aims To Rely On Both To Promote Market Growth Over The Next 4 Years.

BNDES, Petrobras, And Other Brazilian State-Owned Enterprises Will Be At The Center Of The Lula Government To Ensure Strong Growth In The National Market

Throughout His Campaign In The Presidential Race Held In The Last Months Of 2022, Current President Lula Confirmed That He Would Reinforce Support For Brazilian State-Owned Companies If He Came To Power.

Now, After Taking Office As President Of The Country For The Third Time, He Again Highlights His Commitment To Encouraging Public Companies, Such As Petrobras And BNDES (National Bank For Economic And Social Development).

The New Lula Government Aims To Rely On These Organizations To Promote Significant Market Growth Over The Next 4 Years.

“Public Banks, Especially BNDES, And Growth And Innovation-Inducing Companies, Such As Petrobras, Will Play A Fundamental Role In This New Cycle,” The Current President Stated In His Inaugural Speech.

The Workers’ Party Governments Are Known For Relying On State-Owned Enterprises As A Way To Encourage Support For Developing A Partnership Between The State And The Market.

Thus, The Lula Government Aims To Foster Growth In Public Infrastructure Projects With The Support Of BNDES, While Controlling Fuel Prices In The National Market, Strengthening Its Relationship With Petrobras.

Lula Also Stated That In His Third Term, He Will Continue Not Supporting The Process Of Privatization Of National Assets And Will Likely Halt The Complete Privatization Of Structures Such As Brazilian Refineries.

BNDES And Petrobras Will Be Essential In The Reindustrialization Process Foreseen For The National Market In The New Government

The New Lula Government Will Also Focus On A National Reindustrialization Process, Aiming To Make The Country Even More Present In The International Scene.

For That, The Current President Highlights The Importance Of State-Owned Enterprises In Developing Projects That Can Contribute To The Initiative.

“It Makes No Sense To Import Fuels, Fertilizers, Oil Platforms, Microprocessors, Aircraft, And Satellites. We Have Technical Capacity, Capital, And A Market Sufficiently Able To Resume Industrialization And Offer Services At A Competitive Level. Brazil Can And Must Be At The Forefront Of The Global Economy,” The President Stated.

BNDES Has Been An Ally Of The National Market Since Lula’s Second Term In 2008 When It Began With Tax Incentives, Injecting Money Into The Economy, In An Economic Policy Based On Easy And Cheap Credit.

Thus, The National Treasury Ended Up Subsidizing The Development Bank, With Disbursements Rising From R$ 91 Billion In 2008 To R$ 190 Billion In 2013.

Despite This, The Last Years Of Bolsonaro’s Government Severely Reduced The State’s Relationship With State-Owned Enterprises, And In 2021, The Loans Amounted To Only R$ 65 Billion.

The New Lula Government Will Then Resume The Development Of Policies And Public Organizations In Brazil, Aiming To Contribute To The Quality Of Life Of Brazilians.