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Council leads new industrial policy focusing on health, decarbonization and digital transformation to promote international competitiveness and inclusion.
The National Industrial Development Council (CNDI) was recently reactivated, in 2023, with the aim of fostering discussion and implementation of a industrial policy in Brazil. This initiative, led by the Ministry of Development, Industry, Commerce and Services (MDIC), seeks to establish a series of guidelines and actions to promote the growth and competitiveness of the sector. industrial sector in the country.
The thematic missions proposed by the CNDI range from sustainable agro-industrial chains to the digital transformation of the industry, with the aim of meeting current and future market demands. A industrial development policy It is essential to boost the economy and create new employment and investment opportunities. Furthermore, the formulation of a new industrial policy demands a careful process of analysis and planning, aiming to guarantee its effectiveness and long-term sustainability.
Importance of Industrial Policy: Industrial Development Policy and New Industrial Policy
Around the world, actions coordinated by national governments to direct industrial systems are increasingly common in order to respond to major themes, such as digital transformation and decarbonisation. Industrial policy is crucial to boosting industrial sector, leverage digital transformation and promote decarbonization, aiming at competitiveness, productive development and international insertion.
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This is the case, for example, of the Energy transition, formulated by Germany and aimed at energy transition with a focus on renewable sources. The mission is made up of goals to reduce energy consumption and greenhouse gas emissions and increase the number of electric cars, among others. The actions include training producers of electronic machines and equipment and technological development of the electric mobility sector. The coordination of five multisectoral thematic platforms is governmental and financing relies on public resources.
Contemporary policies not only seek to develop technological solutions or support companies in conquering global markets, but also to achieve relevant social objectives, such as environmental preservation, health, food and energy security, improvement of urban mobility and respect for the imperatives of national sovereignty.
Industry Recovery Plan and Challenges
In the Industry Recovery Plan, the National Confederation of Industry (CNI) identified opportunities and challenges, such as the need to develop a low-carbon economy and digital transformation, capable of increasing productivity in companies. The plan proposes 4 missions: Decarbonization, Digital Transformation, Health and Health Security and Defense and National Security.
Measures to Reduce Brazil Cost
For them to advance, it is also necessary to face structural issues that hinder the competitiveness of the Brazilian productive sector, such as the Brazil Cost. The estimate is that this set of structural, bureaucratic, labor and economic difficulties takes away R$1,5 trillion per year from companies located in the country, representing around 20,5% of GDP.
One of the proposals to address these barriers is the regulation of tax reform on consumption, establishment of the carbon market, and the implementation of commercial agreements with strategic partners.
CNDI: Participants and Industrial Missions
In addition to the MDIC, on the government side, the ministries of the Civil House, General Secretariat of the Presidency, Science, Technology and Innovation, Finance, Foreign Affairs, Planning and Budget and more are part of it. On the civil society side, there are 21 advisors, including the CNI, industrial sectors, Institute of Studies for Industrial Development (IEDI), Association of National Technological Development and Innovation Companies (P&D Brasil) and several union entities.
Principles of the New Industrial Policy
Neo-industrialization is one of the priorities of the multi-annual plan from 2024 to 2027, present in 50 programs from 24 ministries. In addition to the organization of thematic missions, the principles of the new industrial policy are:
- Socioeconomic inclusion;
- Equity, particularly gender, color and ethnicity;
- Promotion of decent work and improved income;
- Productive and technological development and innovation;
- Increased productivity and competitiveness;
- Reduction of inequalities, including regional ones;
- Sustainability;
- Qualified international insertion.
Advances in Industrial Policy since the recreation of the CNDI
At the first CNDI meeting, in July last year, the federal government announced R$106,16 billion over the next four years as a way of stimulating its development in areas considered strategic for the country. The resources will come from BNDES, Finep and Embrapii — most are lines of credit or financing, and there are also funds to support innovation.
Source: Industry Portal
