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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (2874)	12/28/2005 7:41:50 AM
From: elmatador	Read Replies (1) \| Respond to of 217716

On 'Concentrating every thing in a few sectors' may not be a good thing but a large country ahs to have an 'anchor' to its economy. Some sector that allows the others to gravitate around it. The import substitution policies failed. It allowed sectors to extract huge profits, protected behind barriers, selling outdated products at extortive prices, did not invest in new technologies... Case in point IT in Brazil. Due to its Informatics Law which barred entry of new technology in an important sector. On regional jets. Embraer was an accident. An exception rather than the rule. The company was financed by the military government. In the hands of the state it was bankrupt. The suppliers (avionics, engines, and components makers) ganged up together to give credits to Embraer to keep the it going not to lose the customer. There's been a lot of resources misspent for the failures of investments that Brazil made and got nothing in return, nuclear, ship building are case in point. Nefarious Petrobras is the result of a monopoly that sabotaged the economy for half century. Embrapa is resources that have paid back: Genetics to developing Hindu cattle interbreeding with European types, developing better birds, developing Soya -a temperate crop- to grow in higher latitudes... Those were investments that paid back. Nature is set and we can't fiddle with it. So the possibilities to the Brazilians to screw up are negligible, albeit the possibilities to screw up in the infrastructure -ports and roads and bridges- an stupid regulations. In the industrial sector -not subject to the laws of nature- Brazil has all possibilities to screw up. Labor law. Protection for the ones who came first to the detriment of the ones that came late... To long to list. The way I look at it, pretty soon the US and Europe no longer have the money to dole out for subsidies, and then they have to remove them, without any pressure.