1 Associação Commercial, Industrial and Services from Montes Claros

2 Associação Commercial, Industrial and Services from Montes Claros

Montes Claros, 2008

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CONSEL BOARD Antônio Silvério Paculdino Ferreira - President Alexandre Pires Ramos - Vice-President Antonio Henrique Sapori Ariovaldo de Melo Filho César Silva Campaante Durval Alexandre Pedro da Silva Edgar Santos Filho Esmeraldo Pizarro Evandro Magalhães Dantas Feranndo Martins de Carvalho Gilson Rodrigues Pinho Hélder Silva Melo José André Coimbra Sobrinho José Carlos Nogueira Gontijo José Geraldo Feranndes Santos Marcos Fábio Martins de Oliveira Newton Carlos Amaral Figueiredo Roann de Freitas Pereira Ruy Sérgio D´Angelis Sérgio Luiz da Silva

FISCAL BOARD Ayer David Cerqueira - Efective José Ildeumar Soares Pereira - Effetive Roanldo Eustáchio David Alcântara - Effetive José Gilson Veloso Caldeira - Surrogate Marcelo José Martins Furtado de Souza - Surrogate

SUPERIOR BOARD David William Crosland Guimarães - President Valdir Veloso Figueiredo - Vice-President Feranndo Ferreira Deusdará Alexandre Pires Ramos Jayme Crusoé Loures de M. Meira João Bosco Martins de Abreu Jamil Habib Curi Alberto Celestino Ferreira

4 BOARD OF COMMERCIAL, INDUSTRIAL AND SERVICES ASSOCIATION FROM MONTES CLAROS - ACIMOC

PRESIDENT Geraldo Eustáquio Andrade Drumond

VICE-PRESIDENT Adauto Marques Batista

COMERCCIAL VICE-PRESIDENT Sérgio Danilo Gonçalves Terence

INDUSTRIAL VICE-PRESIDENT João Paculdino Ferreira

SERVICES VICE-PRESIDENT Adriano Becattini de Miranda

MICRO AND SMALL COMPANIES VICE-PRESIDENT Eranndes Ferreira da Silva

ECONOMY VICE-PRESIDENT Geraldo Matos Guedes

ACCOUNTABLE AND JURIDIC VICE-PRESIDENT Edenilson Durães de Oliveira

AGROBUSINESS VICE-PRESIDENT Gilberto Gualter dos Santos

COMMUNITARY VICE-PRESIDENT Marcelo Zuculin Júnior

ENVIRONMENTAL MAANGEMENT VICE-PRESIDENT Július César Denucci

ADMINISTRATIVE VICE-PRESIDENT Reanto Antônio Silva Tupianmbá

SOCIAL DIRECTOR Feranndo Ferreira Deusdará

1º TRESOURER 2º TESOURER José Argemiro dos Santos Victor Hugo Marques Pian

GENERAL SECRETARY 2º SECRETARY Rita de Cássia Oliveira Bichara Edilson Carlos Torquato

5 Associação Commercial, Industrial and Services from Montes Claros

TECHNICAL TEAM:

GENERAL COORDIANTION: Geraldo Eustáquio Andrade Drumond ACIMOC President

RESPONSIBLE CONSULTANT: Ada Consultoria & Negócios – Strateg Sociedade Simples Ltda.

CONSULTANT: Aloysio Afonso Rocha Vieira Economista – CORECON 4632-10a MG

Geraldo Matos Guedes Vice-Presidente para Assuntos Econômicos ACIMOC

6 BOARDS

Board 9 – Number of Formal Jobs on 2006, December The 31st...... 62 Board 10 – Formal Job Variation On December The 31st – Between 2005 and 2006...... 63 Board 11 – Medium Salary From Formal Jobs In 2006, December The 31st...... 64 Board 12 – Formal Job Floating – 2007/Jan To 2007/Dec...... 65 Board 13 – Admission Medium Salary - 2007/Jan To 2007/Dec...... 65

MAPS

MAP 1 – Localization of Montes Claros City in Mians North...... 16 MAP 2 – Southeast Region Road Guide...... 28 MAP 3 – Localization of Montes Claros City...... 41

7 Associação Commercial, Industrial and Services from Montes Claros

TABLES

1 – PCI – Potential Consume Index – Montes Claros 2008...... 25 2 - Company Sectorial Distribution - Montes Claros 2007...... 26 3 - Company Sectorial Distribution – Montes Claros 2007...... 26 4 - Consume Potential – R$ - Montes Claros 2007...... 27 5 - Ten Hugest Mineiro Municipe Populations...... 28 1 - Montes Claros – Total and Presumed Population 2000-2007...... 35 2 - Montes Claros – Population by Domicile Situation, 1991 e 2000...... 35 3 - Montes Claros – Population distributed by Age Group, 2001...... 35 4 - Montes Claros – Human Development Index – IDH (1991, 2000)...... 39 6 - Distance from Montes Claros to Main State Capitals...... 41 7 - More important Munícipes of the Region, Productive Assets and their distance from Mon- tes Claros...... 42 8 - ELECTRIC ENERGY INSTALLED CAPACITY...... 42 5 - Montes Claros – Electric Energy Consumption in Mwh: 1999 to 2005...... 43 6 - Montes Claros – Electric Energy Consumer Number 1999 to 2005...... 43 7 - Montes Claros – Garbage Generated Volume (Monthly Médium from 1997 to 1999)...... 44 8 - Montes Claros – Health Services 2005...... 45 9 - Montes Claros – Health Equipments 2005...... 45 10 - Montes Claros Teaching – Enrollment, Teachers and School Net 2006...... 46 11 - UNIMONTES In Numbers – 2004 to 2007...... 47 12 - Montes Claros – Entrepeneuring Tax...... 55 13 - Montes Claros – Municipal Institucioanl Quality Index...... 55 14 - Montes Claros – Entrepeneuring Densification – 2005...... 56 15 - Montes Claros – Public Fiannces - Income x Debt: 2004 a 2007...... 56 16 - GDP PM and Montes Claros Constant: 1995 a 2004...... 57 17 - Annual Growth Taxes, IPCA and GDP Real Growth Tax in Montes Claros (1995-2004)...... 58 18 - Real GDP Growth of and Montes Claros (1995-2004)...... 58 19 - Added Value (GDP) and Sectors Percentage in Montes Claros – Years 1995, 2000, 2002 and 2005...... 59 20 - GDP Per Capita to Current Prices in Montes Claros (1995-2004)...... 59 21 - GDP Per Capita to Current Prices in Montes Claros (1995-2004)...... 59

8 INDEX

1 APRESENTATION...... 11 1.1 ACIMOC...... 13 1.2 MONTES CLAROS CITY...... 15 2 MONTES CLAROS HISTORY...... 17 3 MUNICIPAL COMPETITIVITY...... 23 3.1. Consume Potential...... 25 3.2. Population...... 28 3.3. Road Transportation Infra-structure...... 28 3.4.Installed Industrial Park...... 29 3.5. Health Infra-estructure...... 30 3.6. Educational Infra-structure...... 30 3.7. Instittions for the Development Foment...... 31 4 DEMOGRAPHY...... 33 5 INFRA- STRUCTURE AND SOCIAL ASPECTS...... 37 5.1. Physical Aspects (Climate, Soil, Hidrography)...... 39 5.2. Life Quality...... 39 5.3. Road, railway and air Structure...... 40 5.4. Comunication...... 42 5.5. Energy...... 42 5.6. Basic Sanitation...... 43 5.7. Health...... 44 5.8. Education...... 45 5.8.1. Superior Teaching...... 46 5.8.2. High School and Fundamental Teaching...... 48 5.8.3. Teaching Municipal Net...... 48 5.9. Culture, Leisure and Social- political Organization...... 49 5.10. Public Safety...... 49 5.11. Public Organisms...... 50 5.12. Tourism and Invironment...... 50 6 MUNICIPAL ECONOMY...... 53 6.1. Entrepeneuring Tax...... 55 6.2. Municipal Institucioanl Quality Index...... 55 6.3. Entrepeneuring Densification...... 55 6.4. Municipal Income...... 56 6.5. GDP Behaviour...... 57 6.6. Industrial Park...... 59 6.6.1. Main industrial segments...... 59 6.7. Emplyment and Jobs...... 62 6.8. Fiscal and Fiannce Incentives...... 66

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6.8.1. Municipal Incentives...... 66 6.8.2. State Incentives...... 66 6.8.3. Federal Incentives...... 67 6.8.3.1. SUDENE...... 67 6.8.3.1.1. FNDE...... 67 6.8.3.1.2. FNE...... 67 6.8.3.2. Northeast Brazil Bank...... 68 7 POTENCIALITIES...... 71 7.1. Agroenergy...... 73 7.2. Biotecnology...... 73 7.3. Education...... 73 7.4. Fruitculture...... 74 7.5. Cattle for Cutting...... 74 7.6. Information Technology...... 74 7.7. Textile...... 74 7.8. Tourism...... 74 7.9. Health...... 75 7.10. Fenics – A Unic Opportunity Case...... 75 REFERENCES...... 77

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12 APRESENTATION

1.1. ACIMOC: last, to represent and strengthen the classes congregated. Since its foundation, in 1949, December the 31st, Comercial, Industrial and Services During last years, ACI was ahead of its time Association from Montes Claros – ACIMOC with new pproposals and ideas. The entity thas been the strongest and most organizes itself, propose strategic plans and representative of all professioanl and draws important lines in social-economic economic associations. Always envolved with development. To unite the public and private policy and administrative questions of the city, powers and the organized society for that it works to bring the development and the development is undoubtely a further step to progress to Montes Claros. achieve an objective: the motivatioanl strenght that moves the entrepeneurs towards ACI is a civil non profitable association that success. aims to promote the development, the progress and people well being, to discuss the social- IN 2007, ACI registered a milestone in its economic problems of its members and the history through great advances. Thanks to community, to defend free enterprise, the free cooperation and fight spirit of the team concorrence, the legitimacy of profit, anda t composed by the directors’ board, employees

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and partners – foment organisms and the integrate business, leisure and press. To its members, besides movements of intertainment to industry,in Montes Claros. common interest, ACIMOC offers exclusive Among the products, we may point out: services in several subjects. Health Plans; English and Spanish courses; Drive licence or renewing of CNH in its Services offered today by ACIMOC to its categories A, B, C, D or E; media marketing members and community: or policy researches, bank account opening, special bank check, credit cards, and loans NET – Trainning Excellence Nucleus: It is with payroll discoun; tourism packings, club, a result of a partnership between ACI and agreement cards for truck fleet, drugstore, Equilíbrio Company. Focusing in the people awarding; college discounts among others. and organisation development, NET offers

courses, lectures, semianrs and debates that Assessories and Consultories: ACI offers broach themes as: organizatioanl dyanmic, assessory, consultory and law in motivation and leadership, knowledge entrepeneur matters services (Tribute, maangement, entrepeneuring Comercial, Civil, Labor areas). The maangement, accountability and fiannces, conditions are special for members, ensured marketing, serving the client, among others. them fast and easy access to more relevant judicial information about the enterprise. Specialization Courses: To eanble company

owners and graduated professioanls the RMPC: Credit Protection Mineira Net: offers access the specialized capability in areas access to RMPC, allowing the member to such as Strategic Administration, consult the data bank from SERASA and Environmental Maangement, Entrepeneuring EQIFAX permanentely updated in several and Human Resources, through partnership points in the country, with information about with universitary centers. shares, concordat, bankrupticy, protests, halted or stolen, canceled and lost checks, PROE – Educatioanl Complementation improving this way the security in offering Program – is a device considered perfect for products and services. the integration among teaching institutions, students and companies. It allows the Planning and Projects: specialized services company owner to fulfill his social role and in Technical Fiannce-Economic Assessory to oxigen his company with the hired trainee helping in decision making in enterprises knowledge. PROE has agreements with of several segments investments. With colleges and High Schools institutions, Oficial Banks partnerships, it is offered besides hundreds of companies. Hiring a assessoria concerning available credit lines trainee through PROE presents advantages, for investment and floating capital. The such as non creation of labor link; it is department offers support service to excellent as a mean for professioanl entrepeneurs all over the country on qualification. municipal, state and federal incentives, inclusively SUDENE. COMERCIAL DEPARTMENT – Trough several and important partnerships, the SICOOB CREDINOSSO: Microentrepeneurs, Comercial Department eanbles its members, microcompanyowners and Small Company their families and employees a diversified Owners Credit Cooperative from North of group of products and services. The goal is to Mians, under SICOOB CENTRAL

14 CREDIMIANS system, founded in 2004, May, modern infra-structure to perform of activities being the first multisectorial credit such as trainnings sections, courses and cooperative allowed by BACEN in Mians lectures, besides workshops, semianrs and Gerais. It answers to all entrepeneur from business meetings. The entity organizes regioanl economy segments, that is, business meetings to spread regioanl products, commercial, industrial, country production propagate the opportunities of the region to and also self-employeed professioanls. “joint ventures” with antioanl and interantioanl groups and captivation of investments aiming ACI offers to its members and community to increase job offer in Montes Claros.

MISSION VISION

“To Promote, develop and reperesent the “To be acknoledged by the entrepeneur entrepeneur segment, contributing with segment as the entity that represents product and solutions for his business him and search for solutions to develop success”. his business.”

1.2. MONTES CLAROS CITY: The implementation of high technology projects foments specialized professioanl flow, Montes Claros since the beginning of Mineira at the same time it works as an atraction for North Region colonization characterizes itself the contry and urban populations of the region as the Regioanl Social-Economic Pole, what that, due to contry real state concentrate allows it not only to quantify the regioanl process and the small real state strangulation, production but also to influence in its have to come to Montes Claros in order to orientation and in the expansion of the North search for better conditions in life. of Mians Regions and part of Jequintinhonha Valley. The intensification of the industrilization One of the main integrant munícipes of process beginning in the 60 decade with Northeast Mineira Region – RMNE, Montes SUDENE’s arrival has allowed through the Claros always constitute itself in the main years the rise of social-economic indicators of urban center of reference of the population of Montes Claros, that during last years this area. The great city and RMNE consolidates itself as the atraction pole for this transformations took place through fiscal development through focused investments not incentives from SUDENE – Northeast only in the cattle breeding and industry but Developing Superintendency. Incentives also in the third party sector with the which allowed structural changes in the intensification of local commerce and service municipe reality, determining interanl flows workers. We also point out in this last case, to of people, habits, capital and technology. Thus, the consolidation of an educatioanl pole in Montes Claros is coming close to other college degree and health in the city, through production and consumer centers of the the atraction of users and clients in those two country. segments from all region and from other states

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in Brazil. As it will be shown late, Montes Cla- the local economy. ros is today regioanl and state reference as With 352.384 inhabitants1, the munícipe of far as college education and access to health Montes Claros is located in the High Medim public services are concerned. São Francisco River, North of Mians Gerais 2 Around Montes Claros it gravitates an State, having a total area of 3.582 Km ; the 2 aproximately 2 million people, coming from headquarters occupies 97 Km . the cities that formed the North of Mians and It has 10 Districts, anmed: Aparecida do Jequintinhonha Valley, as well as cities of the Mundo Novo, Canto do Engenho, Ermidinha, South of the Bahia State. All that population Miralta, Nova Esperança, Panorâmica, Santa constitutes itself as a potencial buyer market Rosa de Lima, São Pedro das Garça, São João of goods and services that are offered daily by da Vereda e Vila Nova de Mians.

MAP 1 – Localization of Montes Claros City in Mians North

1 Presumed population for the year of 2007 – Pesquisa Ancioanl por Amostra de Domicílios 2006 - IBGE.

16 17 Associação Commercial, Industrial and Services from Montes Claros

18 MONTES CLAROS HISTORY

In the beginning of brazillian colonization conflict area among the colonizers and the which started around 1530, the colonizers indian people that inhabit the region. brought from Madeira Island, a portuguese pssession on the Atlantic Ocean, the first Several indian nations occupied the region where the cattle breeding activity expanded cattle that wolud be created in the farms of itself and they gave strong resistence to the the first owners of Capitanias Hereditárias, colonizers, mainly the Cariri antion. that some decades ahead due to the expansion of the activity, the valley of São Francisco River In the last ten years of Seventeenth century, which was a region of good grazing and water with the help from Bahia’s Governor, who hired in plenty. paulistas explorers Matias Cardoso and Antônio Gonçalves Figueira, who came from The cattle breeding activity made appear two Fernão Dias Paes Leme expedition the great potentates, one from the Tower House, conflicts were finished via the extermiantion Francisco Garcias Dias D’Ávilla and other from and imprisonment of the indians. the Bridge House, Antônio Guedes de Brito. The first had his domains beginning on the Matias Cardoso and Antônio Gonçalves Salitre River up to the estuary of São Francisco Figueira, during the battle campaing against River. The second had his domains from the the indians, known the huge São Francisco Salitre River up to Medim São Francisco, River valley region and many of its tributaries. searching mainly Verde Grande River valley, Both decided to stay in the region where the a São Francisco tributary, and the Gorutuba currals were expanding. Matias Cardoso stayed River valley, a Verde Grande River tributary, at São Francisco river margin where he due to those two valleys were far form the became a farmer and founded several small

19 Associação Commercial, Industrial and Services from Montes Claros

towns. Antônio Gonçalves Figueira searched In the land doanted to the Church, around the for the Verde Grande river valley to live. Chapel built by José Lopes de Carvalho, which Through the permission signed in 1707, April was anmed Nossa Senhora da Conceição e São he received a piece of land o one mile widht by José, arises the small town which later wiill three lenghts, which formed Montes Claros be the origin of Montes Claros city that was at Farm. that time a crossing point where there were many roads. Those roads drove to North of The farmers constructed mills, made Minas Region, to the mining region and to the plantations and rised much cattle. In order to capital of the state. comercialize the cattle and agricultural products from his farms, Antonio Gonçalves In 1831, October, the 13th, a regioanl law Figueira built several ways that united the São created the Montes Claros das Formigas Francisco River region to the mining region municipe, transformed into village. Later, and to Bahia’s recôncavo. through a provincial law, in 1857, July the 3rd, the village received the “status” of city. Gonçalves Figueira in order to reach the cattle Commerce was growing, the cattle breeding market, built roads to Tranqueiras in Bahia activity solidified itself as one of the hugest until São Francisco River. He had a great bovine herbs in the province, schools were interest in the expansion of cattle commerce, built, the first plants were installed, Santa thus he connected himself to Velhas River and Casa de Misericórdia was instituted, the first also to Pitangui and Serro. The region was physicians arrived, also dentists, pharmacists, becoming populated and Montes Claros Farm lawyers and masters, almost all of them became the hugest Cattle Commerce Center children of the land that went abroad to study, in the North of Mians Gerais and it turned into but came back to their hometown, after a great crossing point, for who came from the received their diplomas. mining region, mainly Diamantian going to the country side of São Francisco River and to Here there is the way started by the rich Goiás lands had to pass through Montes Claros. Arraial de Formigas, then Arraial de Nossa Senhora da Conceição and São José de They were the meat from the cattle and the Formigas, Vila de Montes Claros de Formigas cereals produced in Montes Claros’ farms that and in the end Montes Claros City. alleviate the miners’ hunger. The city was improving and in the beginning After the return of Antônio Gonçalves of the second decade of XXth Century, it was Figueira, in middle XVIIth century, to paulista installed in Montes Claros, the first telephon shore, Montes Claros farm stayed abandoned. Company. In the same decade, electric energy André Gonçalves Figueira, one of his sons sold arrived. In the middle of the following decade, the farm to country man José Lopes de the edge of the railway came into town. Carvalho. In 1936, it started the railway connecting José Lopes de Carvalho, after buying Montes Montes Claros to Monte Azul, which would Claros farm, moves the headquarters to a place allowed the railway connection of EFBC with near Vieira river, a tributary of Verde Grande Leste Brasileira, uniting Brazillian Northeast river and builts a chapel well in front of his with Southeast region. farm headquarters, doanting a piece of land to the Church in exchange for the autorization Later, Brazillian government priorizes the for its construction. development of road transportation, Montes

20 Claros is again benefited with the 1959 – Creation of SUDENE in 1959.12.15, consolidation of its road net, which, in the through Law 3.692 that included Montes opinion of some people, is the second hugest Claros more 41 municipes in the North of road net in Brazil. Mians in its scope area;

In the end of XXth Century and in the 1963 – It was founded the first College Unit in beggining of the 3rd millenium, Montes Claros North of Mians, the Philosophy, Sciences and reached a status of a great city, the 5th in Letter School – FAFIL, having as sponsored Mians Gerais State in number of inhabitants entity Luiz de Paula Educatioanl Foundation – FELP; and one of the most progressist in the State. 1965 – It was implanted the first FUNM College Important Dates and are milestones in the Unit, the Law School – FADIR; history of Montes Claros: 1966 – FAFIL leaves FELP and goes into FUNM; 1857 – Categorized as city on July the 3rd (Montes Claros City); 1968 – Installed in FAFIL the Mathematic, Social Science and Phylosophy; 1880 – Installing the first fabric plant (Cedro Plant); 1969 – Created the Medical School – FAMED;

1884 – First Newspaper printed (Correio 1972 – Installed the Administration and Norte); Fiannce School - FADEC, with the courses of Administration, Accountable Sciences and 1892 – Installing theTelegraphic Service; Economic Sciences;

1909 – Creation of the first High School (Grupo 1987 – It started to work the Artistic Education Escolar Gonçalves Chaves); Scholl - FACEART;

1912 – Installing the Urban Telephonic 1989 – North of Mians College Foundation – Service; FUNM was changed into Montes Claros State University - UNIMONTES; 1917 – Ianuguration of electric light; 1996 – Featuring the first edition of FENICS; 1920 – Foundation of Commercial Association; 2002 – Biobrás was purchased by Novo Nordisk; 1926 – Ianuguration of Brazil Center Railway; 2007 –Creation of new SUDENE by 1938 – Ianuguration of Drinkable Water Complementary Law nº 125 of 2007/01/03; Service; Beginning of installation of Petrobrás Biodiesel 1956 – Installing the Long-distance Telephone Plant; Service; Beginning of ETE installation – Sewerage Installing the 10th Militar Police battalion; Treatment Station.

21 Associação Commercial, Industrial and Services from Montes Claros

22 23 Associação Commercial, Industrial and Services from Montes Claros

24 MUNICIPAL COMPETITIVITY

Among the 853 municipes that compose the TABLE 1 Mians Gerais State, Montes Claros can be PCI – Potential Consume Index - pointed out as far as atractivity and Montes Claros 2008 competitivity are concerned related to business opportunities.

Those conditions of atractivity and competitivity are guaranteed among other factors, for:

3.1. Consume Potential:

Montes Claros was considered by Brazillian Market Atlas1, published by the economic paper Gazeta Mercantil, the most dyanmic municipe of Mians Gerais State and the 27th in Brazil.

The most dianmyc cities are chosen among the 300 municipes with greatest potential in Brasil, using the following dianmysm indicators with the respective weights:

* The basket is composed by expenses in: Health- Education-Sanitation- Science and Technology- Habitation

1 Brazillian Market Atlas 2008. Published by Gazeta Mercantil, it presents the social-economic perfil of all Brazillian States in maps enriched with infra-structure, education, health and exterior commerce data – besides other indicators, among them itens as products and service consume, with detailed information about family income; bank information; consume goods; construction materials; aquisition and construction reforms; vehicles; culture; health and tourism services.

25 Associação Commercial, Industrial and Services from Montes Claros

Social Classes. Those indicators are detailed on following Tables 2, 3 and 4.

Still according to Target, Montes Claros presents an IPC-Target of 0,16826, which places it in the 7th position in the State Ranking and 89th in the Antioanl Ranking in 2007.

TABLE 2 Company Sectorial Distribution Montes Claros 2007

Source: Target Marketing – IPC Target 2007 – Brasil in Focus TABLE 3 Company Sectorial Distribution Montes Claros 2007

Source: Brazillian Market Atlas 2008, Gazeta Mercantil. Target Marketing3, in its publication “IPC Target 2007 – Brazil in Focus” also brings the sectorial detailing and the estratification of Consume Potential from Montes Claros city by Source: Target Marketing – IPC Target 2007 – Brazil in Focus 3 http://www.targetmark.com.br/

26 TABLE 4 Consume Potential – R$ - Montes Claros 2007 Source: Target Marketing – IPC 2007 Brazil in Focus

27 Associação Commercial, Industrial and Services from Montes Claros

3.2. Population: TABLE 5 Ten Hugest Mineiro Municipe Populations Montes Claros is the fifth hugest municipe of (Excluded the Capital ) Mians Gerais (Table 5), exclude the Capital Bele Horizonte. This position will favour to a whole dyanmic as far as public State and Mu- nicipal investments are concerned. Those investments will keep an adequated ifra- structure and that guarantees the municipe productive moving.

3.3. Road Transportation Infra-structure:

According DER-MG (2002) data, Montes Claros is the second antioanl crossing point. Through the Municipe, which is served by Federal Roads (BR-125, BR-365) and State Roads which allow a connection to other roads (BR-040, BR-116), transit daily 14.414 vehicles. Source: IBGE – 2007

Montes Claros Town

MAP 2 – Southeast Region Road Guide

MAPA 2 – Guia Rodoviário da Região Sudeste 28 Around 70% of that movement is characterized In Montes Claros are located companies of the by cargo transportation, having in the most varied productive sectors ando f great municipe a connecting point and a flowing of importance. Among them we point out: production among South, Southeast, Northeast and Centerwest Regions. Cotemians: beginning in Montes Claros where it has four production units, from a to- The urban comuting presents a monthly flow tal of eleven that manufacture and distribute of around 2 million people. products that present trade marks of success in the market. They are threads, fabric, T- 3.4.Installed Industrial Park: shirts, socks, bath towels and blankets for the The Montes Claros Industrial District has internal market, for the USA, Europe and important productive units for the ancioanl and Mercosul. worldwide sceanrios. Besides the fact that it Elster Water Measure S.A. – a leader is installed nearby downtown and Sewrage company, manufacturing advanced products Treatment Station – ETE; that location allow and intelligent measure solutions. Located in favourable conditions to install companies Montes Claros, is part of Elster Group, the with a diversified business profile. hugest worldwide in water, gas and energy Inserted in North of Mians region, the so called measure solutions, present in more than 38 drought polygon, Montes Claros is part of the countries around the world. action field of SUDENE and FINOR since 1959, Lafarge – worldwide leader in construction December. Up to the year of 2004, SUDENE’s materials, with an important position in all Mineira Area attracted R$ 7,55 billion on activities: Cement, Concret and Drywall. It has investments, being that, R$ 1,7 billion were 71000 employees in more than 70 countries. guaranteed by Northeast Investment Fund In Brazil it employs 1,5 thousand employees (FINOR), administrated by Northeast Bank. in plant units in Rio de Janeiro, São Paulo, The projects implanted in the city and region Mians Gerais, Bahia, Peranmbuco and Santa received the hugest index of approval. Catarian. The plant in Montes Claros

29 Associação Commercial, Industrial and Services from Montes Claros

manufactures the cement Portland. 3.6. Educational Infra-structure:

Nestlé – has the production unit of condensed As far as universitary education is concerned, milk installed in Montes Claros and it is the Montes Claros is getting a very good position hugest plant of Latin América in such a and consolidating in an Educatioanl Pole. product. Besides Universidade Federal de Mians Ge- rais, with the Agricultural Science Institute, Novo Nordisk – danish pharmacist, one of the there are other seven Colleges. They are main world manufacturer of insulin and leader offered besides more than 40 graduation in the brazillian market on that segment. Its courses, several Post graduation courses as plant in Montes Claros iniciated in 2007 specialization and master degree. There are received investments of US$ 200 million. also institutions as Getúlio Vargas Foundation, SEANC, São Camilo. Vallée Nordeste S.A. – since 1978, the company that works in the pharmacist area, produces veterianry products of all classes, with focus on production animals, such as bovines, goats, porks and horses. Vallée hás the most complete line in the market in its segement.

3.5. Health Infra-estructure:

Health Infrastructure

The town is a pole as far as health service is concerned and possesses the best health equipment among the municipes in the area that limits with the cities of Salva- Hospital Aroldo Tourinho dor-BA, Brasília-DF and Belo Ho- rizonte. It is a reference in medium and high complexity procedures and in health public actions developed in Mians Ge- rais.

Montes Claros is reference in health to the North of Mians, Jequintinhonha Valley and South os Bahia in high and mé- dium complexity. Many of the actions developed in this sector are reference for the health state policy. Hospital Universitário Clemente de Faria

30 3.7. Instittions for the Development Foment: EMATER-MG – Empresa de Assistência Téc- nica e Extensão Rural do Estado de Mians Ge- Due to be the main city in the North of Mians rais; Region, Montes Claros congregates in its structure the main public institutions to IBGE – Instituto Brasileiro de Geografia e support and give incentive to its development. Estatística; We point out: IDENE – Instituto de Desenvolvimento do Nordeste; Caixa Econômica Federal;

IEF – Instituto Estadual de Floresta; Banco do Brasil;

IMA – Instituto Mineiro de Agropecuária; Banco do Nordeste;

SEBRAE – Serviço de Apoio às Micro e CODEVASF – Companhia de Desenvolvimen- Pequeans Empresas; to do Vale do São Francisco;

SEANC – Serviço Ancioanl de Aprendizagem COPASA – Companhia de Saneamento de Comercial; Mians Gerais; SEANR – Serviço Ancioanl de Aprendizagem DER-MG – Departamento de Estradas de Ro- Rural; dagem do Estado de Mians Gerais; SESI – Serviço Social da Indústria; DNOCS – Departamento Ancioanl de Obras contra as Secas; SEST – Serviço Social do Transporte.

31 Associação Commercial, Industrial and Services from Montes Claros

32 33 Associação Commercial, Industrial and Services from Montes Claros

34 DEMOGRAPHY

Fifth State municipe in terms of population, TABELA 2 Montes Claros is located among in the 2,3% of Montes Claros – Population by Domicile mineiros municipes with population between Situation, 1991 e 2000 100.000 and 500.000 inhabitants, with a demography density of 85,2 inhab/Km2. Among the 853 mineiros municipes, 20 are in this rate and only three have more than 500.000 inhabitants. (IBGE, Censo 2000).

TABLE 1 Montes Claros – Total and Presumed Population 2000-2007 Source: IBGE

During the period 1991-2000, Montes Claros population presented a medium annual growth task of 2,39%. The urbanization tax grew 3,44, confirming the municipe’s position as a typically urban municipe.

Besides typically urban, Montes Claros population is young with 55% with potencial conditions to answer the labor market (from 18 to 59 years of age), as shown in Table 3. Source: IBGE – Censo Demográfico 2000 e Projeção da População do Brasil 1980-2050 TABLE 3 Montes Claros – Population distributed by According to IBGE, the proportion of antural Age Group, 2001 people1 for the municipe of Montes Claros (Censo de 2000) is of 65%.

Source: IBGE, Censo Demográfico 2001.

1 It refers to people who always lived or were borne in the domicile municipe at the time of the Census.

35 Associação Commercial, Industrial and Services from Montes Claros

36 37 Associação Commercial, Industrial and Services from Montes Claros

38 INFRA-STRUCTURE AND SOCIAL ASPECTS

5.1. Physical Aspects (Climate, Soil, 5.2. Life Quality Hidrography): In the 1991-2000 period, Montes Claros Montes Claros municipe hás characteristic Municipe Human Development Index (IDH-M) climate, semi-arid tropical kind, hot and dry. grew 8,60% being Education the segment which more influenced to that growth with The predomiannt vegetal cover is Cerrado 42,2%, followed by Income(33,2%) and Caducifólio and Sub-Caducifólio with slight Longevity with 24,6%. occurrences of Cerrado Superemifólio. There are, also, transitions areas such as Cerrado/ During that period, the hiatus of human Caatinga. development – distance between the municipe IDH and maximum IDH limit (1 – IDH) was According to EMATER- Technical Support and reduced in 22,2%. Country Extension Company from Mians Ge- rais State, with soils of high variation as fars Taking as reference the 2000 IDH, Montes as typology is concerned – Red Clay, Claros is among the regions considered of Cambissolo Háplico, Neosolo Quartizarenico, medium human development, according the Red Latossolo, Latossolo Red Yellow, Neossolo United Antions Development Program, being Litolito –, Montes Claros presents an annual in the 969th position in the antioanl ranking medium precipitation of 1060 mm and 101st in the state ranking. concentrated from october to march period and an annual medium temperature of 24,2 oC. TABLE 4 The localization in the Alto Médio São Fran- Montes Claros – Human Development Index cisco, specifically in the Grande Verde River – IDH (1991, 2000) valley, provides the municipe with several watercourses with permanent and semi- permanent regimes. Amon them, we can point out: Verde Grande River, Sítio River, Peixe River, Vieira River, Bois Stream, Cedro Stream, Canoas River, Traíras Stream, Pacuí River, São Lamberto River, Riachão, Vale River and Pradinho River. Source: Atlas de Desenvolvimento Humano no Brasil

39 Associação Commercial, Industrial and Services from Montes Claros

5.3. Road, railway and air Structure: monthly people transportation is presumed in 2.000.000. In 2008 this structure will be According to its geographic localization and the improved as far as lines and vehicles are Road System growth, the Antioanl Road Plan, concerned with integration and quality classified Montes Claros as the Couintry’s “2nd improvement of the services. hugest Crossing Point”. As a complement the city has a huge taxi fleet The Municipe connects itself to the rest of the distributed in 11 places. Country by the following means of transportation: ariways, railways and roads, The cargo and value transportation is served with predomianncy of the last one. by more than twenty acting companies in the municipe, such as: Localized 7 km far from city, in Northeast Accord Express Distribuição e Logística Ltda; region, Montes Claros Airport has 2.100/45 meters of extension, with asphalted runway. Centralmians Transportes e Serviços; It can receive bif airplanes and operates daily from 6:00AM to 10:00PM. Expresso Elias Mudanças;

Transfered to - Airport Infra- Expresso Venice Ltda; structure Brasilian Enterprise in 1980, March Linx Transportes Ltda; the 3rd, Montes Claros airport has an Aeroanutical Ministry allowance. Movimentar Transportes e Serviços Ltda;

Today the air transportation in Montes Claros Mudanças Pioneira Ltda; is served by Trip Linhas Aéreas, which operate Pitangui Cargas e Serviços Ltda; daily flights to Belo Horizonte City, São Paulo City, Salvador City and other cities in minei- Somudanças; ro country side. Temoc Transportes e Serviços Ltda; In railway transportation Montes Claros is Transnorte Cargas e Encomendas Ltda; served by Centro Atlântica Railway with car- go transportation. It receives Diesel oil, gas, Transportadora Eficaz Ltda; alcohol from Belo Horizonte and those products are distributed for interanl Transportadora Januária Ltda; consumption. Brasil Car Transportadora de Veículos; As far as railway distance is concerned Mon- Prosegur Brasil S/A Transportadora de Va- tes Claros is localized 420 km from Belo Hori- lores e Segurança; zonte and 1.100 km from Salvador. Rodoban Segurança e Transporte de Valores The road transportation is intensily used due Ltda. to the existing road structure. The city is served by 10 intermunicipal companies thet The city has vehicle representatives of several operate in its Bustation with daily trips to main antioanl trade marks as (Ford, Chevrolet, Fiat cities in Brazil. e Volkswagen) and interantioanl trade marks (Nissan, Mitsubishi, Honda, Toyota), besides The urban transportation is made by two vehicle renting companies which are local and companies with 36 lines, 96 vehicles. The franchised antioanl companies.

40 MAP 3 – Localization of Montes Claros City

Source: Prefeitura Municipal de Montes Claros. Extracted from: . TABLE 6 Distance from Montes Claros to Main State Capitals

Source: DER-MG

41 Associação Commercial, Industrial and Services from Montes Claros

TABLE 7 More important Munícipes of the Region, Productive Assets and their distance from Montes Claros

5.4. Comunication: The city is also has local newspapers and receives the main antioanl newspapers. Montes Claros is served by fix and mobile telephonic services by the main antioanl 5.5. Energy: companies (Oi, TIM, Claro, Telemig Celular). The electric energy supply for industrial, It has radio stations in AM frequency (Rádio comercial and home using in Montes Claros Fundação José de Paiva Neto, Rádio Educadora, and as well in all North of Mians is Companhia Rádio Terra) and FM frequency (Rádio Energética de Mians Gerais – CEMIG Transamérica FM, Rádio São Francisco de responsibility. Today Cemig operates 55 Assis, Rádio Montes Claros, Rádio FM Itatiaia, usines, being 49 hydroelectric power plants, Rádio Unimontes, Rádio Popular Comunitária four termoelectric plants and one eolic, FM, Rádio Bom Pastor, Rádio Vida Nova). totalizing an installed capacity of around 6.132 MW. The city has the main opened TV channels (Globo, SBT, Record, Cultura, Bandeirantes, The installed capacity of Electric Energy to Rede Vida, Rede TV, Canção Nova) besides serve Montes Claros can be related as in the cable and satellite TV services. following board (Table 8).

Table 8 ELECTRIC ENERGY INSTALLED CAPACITY

42 The monthly consumption in 2006/April was the period. We point out resident consumers of 29.301 Mwh. The consumers total number who represent, in avarege, 84,5 from the total. increased from 84.501 in 1999 to 107.624 in The others are distributed among industrial, 2005 what represented an increase of 27% over commercial, country comnsumers and others.

TABLE 5 Montes Claros – Electric Energy Consumption in Mwh: 1999 to 2005

Source: CEMIG.

TABLE 6 Montes Claros – Electric Energy Consumer Number 1999 to 2005

Fonte: CEMIG

5.6. Basic Sanitation: monthly consumption is around 1 million m³.

The supplying and draining sanitation Regarding to sewerage there are 79.036 services are supplied by COPASA – Companhia connections corresponding service to 96% of de Saneamento de Mians Gerais, a public all population. To this service there are no state company, that is responsible for economies and that is why que quantitative impounding, treatment and water distribution, of water connection do not keep proportion to besides draining sanitation. According to the sewerage connections. company, Montes Claros has 93.272 connectings/economies, including Nova Besides, not all the habitations which have Esperança District, what corresponds to serve water connections have sewerage 99% of all population. Economies here mean connections. Today, the great investment that the water colective connections as it happens is being done is the ETE – Sewerage Treatment in apartment buildings. Station that will solve one of the greatest environmental city problem that is the According to the State Company, the medium destiantion of the sewrage directly into the

43 Associação Commercial, Industrial and Services from Montes Claros

watercourses. We can poit out that ETE can odontological offices and 08 Health Centers receive industrial residuary water according localized in the Country Zone (Districts). to standardization. The Health Centers are ready to serve around Montes Claros Districts are supplied the Water 45 thousand people/month. The odontological Supplying System through tubular wells service gives around 40 thousand procedures equipped with underwater hydraulic pumps. per month, which 2.420 are urgency/ emergency procedures. The urban cleaning service and garbage collecting is ESURB – Empresa Municipal de Montes Claros City Hall supports fiancely Santa Serviços, Obras e Urbanização responsibility Casa and Haroldo Tourinho Hospitals in case that has structure for treatment and recycling of community service in urgency and of 270 garbage tons daily. emergency cases. It was implanted by the Health Municipal Secretary the night shift in In the City Hall there is an edit to select a three of its health units and there are 03 company that will install Residue Utilization medical - odontological buses totally equipped Usine (garbage) in the city, that also will be to serve the country zone and peripheryc selling energy coming from this alterante districts. source. In Montes Claros, the “Visual Acuity” Program take physicians to the schools, where the TABLE 7 students with visual problems receive new Montes Claros – Garbage Generated Volume Glasses. There had already been served more (Monthly Médium from 1997 to 1999) than 35.000 between 05 and 14 years of age, according City Hall data.

Regarding the underfeeding, a number greater than 800 children with ages between six months to 1 year and 11 months receive milk at no cost. It is distributed milk, soybean oil, iron sulfat and A and B Vitamins. Health Source: ESURB Secretary distributed 130 different kinds of The trash collecting system serves to 100% of medicine from the basic drugstore. Montes Claros Districts with the use of a Montes Claros has today 108 dentists in Health compactator trunk, garbage containers Brook Centers and Municipal Policlinics. Weekly 42 kind and rotative collecting with a special thousand brush their teeth followed up by vehicle. The city has a controled earthwork dentists and nurses and with fluor application. and an icinerator for the hospital garbage. Besides the municipal net, Montes Claros has 5.7. Health: a high number of clinics in the examiantion The Munícipe of Montes Claros has a huge area and with a hospital net composed by the health net, with professioanls highly following hospitals: competent and first generation equipments in Fundação Hospitalar de Montes Claros – modern hospitals in the public and private Hospital Aroldo Tourinho; sectors. The municipal physical net has 15 Health Centers and 03 policlinics installed in Hospital Universitário Clemente Faria / the Urban Zone, equipped with medical and UNIMONTES;

44 INCOR – Instituto de Cardiologia Aroldo Plano Médico Hospitalar Santa Casa / PAS; Tourinho; UNIMED; Prontoclínica e Hospital São Lucas S.A. – Hospital Dilson de Quadros Godinho; Saúde Bradesco;

CAMED; Santa Casa de Caridade de Montes Claros;

PLANORTE – Convênios odontológicos; PRONTOCOR – Pronto Socorro do Coração;

The Health Plans segment is very diversified SALVDENT; regarding the number of Health Plans and the SALUTE – Núcleo de Odontologia Preventiva; cover kinds. Among them, we can point out: Policlínica Bom Jesus/Credencial; CAIXA PEC Assistência Previd. Serv. Fund. SERV. Saúde Pública; Clínica Bem Estar;

Plano Médico Hospitalar São Lucas; Clínica de Todos.

TABLE 8 Montes Claros – Health Services 2005

Source: IBGE

TABLE 9 Montes Claros – Health Equipments 2005 5.8. Education:

Montes Claros has a net of basic efficient teaching structure whose end is guaranteed by the Federal, Municipal, State, Private Nets acting. There are also Profissioanlizing teaching, Free Teaching, several preparatory schools for the university entrance examiantion, a state and a federal universities and seven private colleges.

Source: IBGE

45 Associação Commercial, Industrial and Services from Montes Claros

TABLE 10 Montes Claros Teaching – Enrollment, Teachers and School Net 2006

Source: IBGE (1) Data from Secretaria Municipal de Educação, 2008.

5.8.1. Superior Teaching: Those institutions offer graduation and post- graduation courses in several knowledges The Superior Teaching history in begins in areas such as: 1963 with the first superior teaching unit of Biologic and Health Sciences: Medice, North of Mians, Philosophy, Letters and Biomedice, Nursering, Biology, Nutrition, Science College – FAFIL, having as sponsored Odontology, Hospital Maangement, Physics entity Luiz de Paula Educacioanl Foundation Education, Psycology, Pharmacy, – FELP. Physioteraphy, Speech therapy.

The superior level formation – graduation and Exact Sciences: Mathematics, Information post-graduation – is today offered by a state Systems, Production emática, Sistemas de In- university – UNIMONTES -, a federal formação, Production Engineering, university – UFMG – and seven private Environmental Engineering, Design, Civil colleges - Pitágoras, FUNORTE, Santo Agosti- Engineering, Electric Engineering, Electronic Engineering, Mechanical Engineering, nho, Ibituruan, FACIT, Unopar, Unipac e Agronomy, Zootechnics, Architecture and FACOMP. Urbanism.

46 Human Sciences: Letters, History, tes Claros hoje overcomes 20.000 students, Phylosophy, Geography, Humaans: Letras, coming not only from Montes Claros but from História, Filosofia, Geografia, Pedagogy, Arts, all cities of North of Mians as well as the South Religion Sciences, Superior Ciências da Reli- of Bahia generating a supplying of goods and gião, Normal Superior. services that start with feeding and habitation services to consumption semi-durable goods. Social Sciences: Law, Direito, Social Sciences, Social Services, Company The Montes Claros State University, the Administration, Accountable Sciences, hugest teaching institution from North of Economic Sciences, Tourism and Hotel Mians, presented the following hystoric Sciences, Advertising and Propaganda. regarding offered courses, students, teachers The universitary community in Montes Cla- and tecnic-administrative employees during ros today A comunidade universitária de Mon- last years. (Table 11).

TABLE 11 UNIMONTES In Numbers – 2004 to 2007

Source: Universidade Estadual de Montes Claros – UNIMONTES

47 Associação Commercial, Industrial and Services from Montes Claros

The city has steel with all infra-structure for and the implantation of entering and complementary – technical formation to ser- permanence policies of the students, of ve the local labor market and served by FIEMG resource patterns evaluation, continue System institutions - FIEMG – Federação das forming and profissioanl valorization. The Indústrias do Estado de Mians Gerais, SEANC Teaching Municipal Net offers Childish – Serviço Ancioanl de Aprendizagem Comer- Education, Fundamental and High School cial, SEBRAE – Serviço de Apoio às Micro e Teaching, Preparing Municipal Schools and Pequeans Empresas, SESI – Serviço Social da Young and Adult Education. Indústria, SEST – Serviço Social do Transpor- te e SEANR – Serviço Ancioanl de Aprendiza- Childish education in the Teaching Munici- gem Rural. pal Net is offered in 37 municipal institutions called Childish Education Municipal Centers 5.8.2. High School and Fundamental Teaching: – CEMIs; four conviviality centers; 28 munici- Montes Claros is supplied by the Regioanl pal schools, besides nine phylatropic entities, Teaching Superintendency that works fore through accordings. Today more than 11.000 more 29 municipes. children from 2 to 5 years of age are served. The significative demand is in the 2 to 4 years In Montes Claros, the High School and Funda- of age group. mental Teaching, according to available data from the Superintendency and School Census With a structure of 62 teaching units, being of 2005, is served by: 12 contry-nucleus scholls, 26 contry schools and 24 urban schools, the Montes Claros Childish Education: 52 municipal units and Teaching Municipal Net serves the students 61 private; of Fundamental and High School Teaching. To Fundamental Teaching: 51 state units, 62 guarantee the study continuity in places where municipal and 50 private; there is no state structure, the Education Municipal Secretary made a partnership with High Scholl: 28 state units, 1 municipal and the Teaching Regioanl Superintendency, 16 private; allowing the installation of supplementary

Young and Adult Education: 13 state units, buildings of the state schools in Municipal Net 21 municipal and 6 private; units to attend High School students. Today 11 state schools are served through Special Education: 1 state unit and 3 private; conveannt.

Professioanl Education – technical level: 1 Students of low income and egressed from federal unity and 10 private. public schools have the opportunity to dispute a place at the university. The Teaching Mu- In its private net the city has today solid teaching institutions connected to great nicipal Net, starting in 2005, offers teaching nets in Brazil such as Pitágoras, semestrally 1.500 vacancies for the Positivo, Coque e Promove Nets. preparatory course for the university entrance examiantion. 5.8.3. Teaching Municipal Net: The Education Municipal Secretary is Focusing in inclusive and qualitative strehghtenin actions that articulate, mobili- education the Teaching Municipal Net elected ze, support and contribute for an education as its mission to coordeante the reformulation quality effectivation.

48 5.9. Culture, Leisure and Social- political fields, 05 Cooper tracks, 05 sport gymansiums. Organization: 5.10. Public Safety: The montesclarense culture is one of the richest of the state, uniting music, theater, Montes Claros has an adequate public safety folcklore, tipical food, handiwork and the infrastructure counting with several segments business/event tourism. of civil and military forces support attached to the State and the Federal Government: The city events calendar shows a great nunber of regioanl events. We can point out: Pequi 10th Militar Police Battalion: created by Law Festival (regioanl and antioanl levels), Number 1402 of 55/12/29 denomianted 10th Caranmontes – (Micareta), Folcklore Dance Ba. Its installation occurred on 1956, July the Interantioanl Festival, June Parties, August 25th. The 10th Militar Police Battalion offers Parties (catopés-folcklore), FENICS (see item a lot of services to the local community and 7 potencialities), Poetry Saloon Poetic Psiu. among them we can point out: patrol service; For Tourism effect, the greatest event in the urban and road transit service; forest police city is Caranmontes which attracts a number service; Firemen Service; Communitary bigger than 200.000 people from all Country. Police Station; Public Jailhouse Safety; School patrol; etc. Regarding the regioanl folcklore, Montes Cla- ros and Noorth of Mians have a lot of 3rd State Road Police Company: created manifestations that are the same in all through the decree 30.798, of 1989, December country due to they came from the same origin: the 20th and installed in Montes Claros in portuguese, african and indian. 1990, January the 2nd.

Reiandos, reisados, congados, macumbas, can- 3rd Forest Police Company: installed in 1990, domblé, childish songs, legends as well the January the 02nd, united to the 3rd Police tipical food are part of thepopular culture, Regioanl Comand. transmitted orally for many years. 8th Public Security Regioanl Office: the 8th In Montes Claros, the reiandos, the Catopês and PSRO, installed in Montes Claros, has under marujadas were parties of the religious its jurisdiction, the offices subordianted of ge- calendar since when the city was called For- neral vigilance, crimes against person, crimes migas Valley. The Lorenzo Feranndez State against woman, transit accidents, transit, Music Conservatory recreated the August patrimony crimes, etc. parties. Shortly after, the Montes Claros Cul- tural Municipal Secretary organized the “First 55th Infantry Battalion: “Dionísio Cerqueira Folcklore Festival” under the direction of Battalion”, “Advanced Sentinel of Mineiro Clarice Maciel becoming since then to be part Countryside” – The most remote origin of the of the popular parties calendar with success. 55th Ba is in the 1st Company of the 2nd Hunters Battalion cretated in 1851/04/19, In January the Magus Kings, in May Our Lady with headquarters in Salvador (Bahia). In Coroantions, processions and sereandes, June, Fires, in August, Reiandos and Catopês, 1975, by a representation of the Army, the two Marujos and Caboclinhos, in December, regimes were extinct and the 2nd Infantry presepes and little female shepherds. Battalion was transfered to Montes Claros. On 1983, September the 13th allowed the historyc The leisure infra-structure in the city is denomiantion of “Dionísio Cerqueira composed by 15 country/social clubs, 06 soccer Battalion”, to the 55th Infantry Battalion. On

49 Associação Commercial, Industrial and Services from Montes Claros

1975/11/24 it arrived to its new headquarters work, 03 Crimianl Jurisdictions, 02 Family in Montes Claros. and Succession Jurisdictions, 01 Childhood and Youth Jurisdiction, 02 Public Fiannce, Firemen Service: implanted on 1967, July Public Registers, Bankrupcy and Concordats the 2nd, the Firemen Service is considered Jurisdictions, 01 Crimianl Execution so far as extremely effective in the community Jurisdiction. Montes Claros has 15 Law support. Judges, 15 Justice Prosecutors and several Law Writers and Public Servents. Federal Police: the Federal Police Office was installed in 2000/08/23, covering an area 5.12. Tourism and Invironment: composed by 130 municipes starting in Buenópolis up to Montalvânia Bahia’s border. Montes Claros, although not being considered Tose 130 municipes include besides North of a city of potencial tourism has several points Mians, part of Jequitinhonha Valley. to be explored. In Montes Claros there are many caves having uncountable 5.11. Public Organisms: archaeological sites.

The public structure of Montes Clarosiscomposed There are 164 catalogued sites and the main still by a group of organisms from the State and one is the speleological compound of Lapa Federal circles whose acting most of the time Grande due to its archaeological importance covers all North of Mians Region. Among them, and touristic potential: Lapa D’Água and Lapa we can point out: da Anscente, that keep in their sediments fóssil animals (quotations from anturalist SPIX CODEVASF – Developing Company of São during his trips in the North of Mians – XIX Francisco Valley; Century), have oranmentations of great

EMATER – Technical Assistance and Country beauty, such as the formation of espeleotem Extension of Mians Gerais State Company; volcano very rare in Brazil, and others with more than 1 km of underground river, in which IMA – Agropecuária Mineiro Institute; there are beautiful waterfalls, 12 km far from thwe city. IEF – Forest State Institute; Lapa Grande is located in Vieira Mountain IBAMA – Invironmental Brazillian Institute; Range, distinguishing itself from the other

IBGE – Statistic and Geography Brazillian caves, due to its importance in a regioanl level. Institute; It is considered one of the hugest of the state having 3 km2 of area. It has speleological, DNOCS – Antioanl Department of Works paleontologycal and as a landscape and against Droughts; together with Lapa Pintada, Lapa D’água and Lapa Pequean creates a great scientific North Farm Regioanl Superintendency; interest compound.

Labor Ministry Sub-Office; Besides Lapa Grande group, Montes Claros has still the following touristic points: Labor Justice – Firts and Second Jurisdictions; Milton Prates Municipal Park: it has green area, lagoon, bicycle track; several animal IDENE – Northeast Developing Institute; species, restaurants, playground, courts with Justice Court where 06 Civil Jurisdictions shower, soccer field. It is ideal for picnics. The

50 Municipal Zoo is localized nearby Municipal shoes, typical regioanl medicines and Park with animals of several species. handiworks in straw, wood and clay.

Sapucaia Park: in Ibituruan Mountain Hystoric architecture which composes the Range, Sapucaia Park is a forest reservation. so called “old part of the city” with architecture Its is perfec for model aero-anutics, paraglide, connected to the religious structure formed by picnics, mountain climbing and roustic Cathedral, Our Lady Matrix and Saint Joseph runnings. Churches; Matrix Plaza ans its old big houses.

Guimarães Rosa Park: Created by Munici- Convention Center: Its in construction pal Law Number 793 of 1989, August the 7th, process. It is associated to Technological Park at the Carrapato Stream margins, urban zone, and it will allow the improvement of business covering a 46,35 area and very little explored. tourism actions, health education and entrepeneur events. It will guarantee the Center Market: where several products are quality of such events to all participants, commercialized, mainly groceries, condiments, offering perfect meeting conditions as meat, cereal, beavarages, regioanl typical fruit, expected of a Convention Center of that candies, dairy products, living fowls, clothes, importance.

51 Associação Commercial, Industrial and Services from Montes Claros

52 53 Associação Commercial, Industrial and Services from Montes Claros

54 MUNICIPAL ECONOMY

The great transformation of Montes Claros existent in the municipe. A number equal in- economy began after SUDENE’s implantation ferior to 40 inhab/1 MPE shows the plataform whos fiscal and fiannce incentives through of high entrepeneur. FINOR allowed structural modifications in the municipe reality improving local economy and, TABLE 12 therefore, the regioanl economy. Montes Claros – Entrepeneuring Tax

The Industrial sector reaches a bigger impulse after 1965 with the arrival of electric energy from CEMIG and with the beginning of effective SUDENE’s participation in the Industrial development in the region. Source: Secretaria de Estado da Fazenda e IBGE

The local economy focused in the beginning 6.2. Municipal Institucioanl Quality Index: in cutting cattle and milk followed by agriculture mainly products as bean, corn, Considering the last Census (IBGE – Census manioc, cotton, watered rice, started to have 2000), Montes Claros presents an IQIM – Mu- in industry its main economy activity. nicipal Institucioanl Quality Index of 3,73 that is superior to several municipes in Brazil. The The Montes Claros Industrial District, Dr. Municipal Institucioanl Quality Index is got Ubaldino Assis is located 5 km far from starting with three sub-indicator groups with downtown in the road Montes Claros/Januária identical weight identified as: participacion degree, fiannce capacity and maangement with 5 million km²/area. Considered as an capacity. The index varies from 1 to 6 and the excellent option for any kind of company not higher the value the better the institucioanl- only due to its localization in SUDENE Minei- political quality of the municipe. ra Area, but also to be close to the Center- South of Country and receives the Northeast TABLE 13 incentives with the advantage of being Montes Claros – Municipal Institucioanl connected to the greatest producers and Quality Index consumers centers.

The Industrial District has companies of several industrial activities branches and Source: Boucinhas e Campos therefore can receive any kind of company in 6.3. Entrepeneuring Densification: any kind of activity. Regarding entrepeneuring densification, the 6.1. Entrepeneuring Tax: last available data (IBGE – 2005) show the existence of a total of 11.931 formal companies, The Entrepeneuring tax is got through the with a Occupied Population of 64.417 people, division of the number of resident population generating a total income of R$ by the number of micro and small companies 426.508.000,00, according to Table 14.

55 Associação Commercial, Industrial and Services from Montes Claros

TABLE 14 Montes Claros – Entrepeneuring Densification – 2005

Source: IBGE, Cadastro Central de Empresas 2005; Malha municipal digital do Brasil: situação em 2005. Rio de Janeiro: IBGE, 2007

6.4. Municipal Income: 2005 and 17,44 in 2007 related to 2006.

The municipal income during last years shows The Liquid Consolidated Debt in the Total a positive evolution, having grown in 2005 Income kept itself in a normal pattern during 15,35 related to 2004, 16,15 in 2006 related to the period and in 20% related to the legal limit.

TABLE 15 Montes Claros – Public Fiannces Income x Debt: 2004 a 2007

Source: Table made by the author with available data given by Montes Claros City Hall.

56 The General Budget from Direct Administration terms. The service sector trends to superate to 2008 has the total of R$ 439.515 mil. in participation in the GDP composition the industrial sector, reflecting the global trend of 6.5. GDP Behaviour: increment of services in the composition of The GDP- Gross Domestic Production, is one actual economies. of the main economic adjoined used to stablish The GDP to market prices that in 1995 was the production capacity of a determined R$ 836 million, in 2004 it went to R$ 2.197 economy. Theoretically, GDP expresses the billion, therefore with a 163% growth during production sumo f goods and services of an the period, more than doubled in a 10 year economy, during a year period. space. In Montes Claros case, the Tables from 15 to When one aanlise the Constant GDP, that is 20 bring the evolution aanlyses of Montes GDP to market prices getting out of it the price Claros GDP having as reference the historic general variation and comparing to the year series from 1995 to 2004, elaborated by before, one observes a GDP in 1995 of R$ 695 Economist Geraldo Matos Guedes. million evolving in 2004 to R$ 2.031 billion The complete aanlyses shows the annual GDP showing a 192% growth. growing trend as to market prices as to current One can notice a growing trend of those two prices, adjoined and per capita. In mosto f the items (GDP PM and caonstants) in a parallel years in the presented series, the GDP has growth taxes as far more superiors than the way what shows that in that period there were Brazillian GDP growth taxes. no oscilations with great variations, except in the years 1997 and 1998when those indicators We point also the GDP composition in sectorial had very close variations.

TABLE 16 GDP PM and Montes Claros Constant: 1995 a 2004

Source: Guedes, Geraldo Matos.

On the other hand when one look to the growth expressive growths in equal periods to the GDP taxes of GDP to market prices and the growth tax to marketr prices. correspondent real growth tax one can see that tax had a great variation in the period being There is a similarity on the periods of 1998/ negative in 2001 and almost nihil in 1998, 1999 with what happened to Brazil, due to during with expressive growth 1996, 1997 and 2000, that period there was a fiannce crisis and in 2003 and 2004. To real growth one see that 2001 there was an electric energy crisis. decreased in 1999 and 2001 and with (ROUBINI, 2008).

57 Associação Commercial, Industrial and Services from Montes Claros

TABLE 17 Annual Growth Taxes, IPCA and GDP Real Growth Tax in Montes Claros (1995-2004)

Source: Guedes, Geraldo Matos.

When one observe in a comparative way the Research results from 2003, the Agriculture GDP real growth of Brazil and Montes Claros and Cattle Census of 1996 and actualizes one can see a strong difference in its behaviour concepts and definitions introducing the last regarding 1995 for the first grew 2,15% and recommendations from UN and other interantioanl organisms”. In what is refered the latter 52,03%. Special differences can be IBGE explains that “the new series of ancioanl seen also in 1997, 2000, 2003 and 2004. accounts will have as an initial reference the The strong growth verified in 1996 and 1997 year 2000 with more detailing of activities and due to the fact that IBGE methodology passed to products to the Use and Resources Tables and institucioanl sectors to Integrated Economic other considerations. As the Institute itself Accounts. Fore the period before 2000 it was explains: “That series incorporates, totally, the done the data retropolation up to 1995 within annual IBGE researches, the annual the information available, presumed a new information from Juridic Person Economic- series of Use and Resources Tables in the Fiscal Information Declaration (DIPJ), added by classification of the system already known, the Antioanl Classification of Economic Activity chained with the new 2000 series”. (IBGE, Declaration (CANE) code, the Family Budget 2007).

TABLE 18 Real GDP Growth of Brazil and Montes Claros (1995-2004)

Source: Guedes, Geraldo Matos.

The Agriculture and Cattle sector represented On the other hand one can see that service in Montes Claros in 1995 only 2,60%, falling to sector had a small representative lost to 1,44% in 2000, going up to 3,31% in 2002 and added value generation from 1995 to 2000 falling to 2,85% in 2005 from total production, falling from 48% to 45%; in 2002 it came to a while industry had a representation of 48,83%, more expressive position, having been the 53,75%, 24,34% e 25,43%, respectively for the aanlized periods. We can point out the greatest GDP value generator in the years representative lost that the industrial segment starting in 2002, representing 58% of total had in 1995 to 2005 period. production.

58 TABLE 19 Added Value (GDP) and Sectors Percentage in Montes Claros Years 1995, 2000, 2002 and 2005

Source: Guedes, Geraldo Matos.

The per capita GDP to current prices in Montes in 1998 e 2001 there was a falling of 1,55% Claros that in 1995 was R$ 3,2 thousand reais, and 3,97%. The greates growth was in 1996 ended 2004 with 6.5 thousand reais, being that when that indicator has a tax growth of 27,75%.

TABLE 20 GDP Per Capita to Current Prices in Montes Claros (1995-2004)

Source: Guedes, Geraldo Matos.

When one aanlises the GDP per capita expressive growth of 49% and with negative behaviour to current prices, taking out the variations in 1999, 2001 e 2002. The 1996 inflation variation, one can see that it had a strong growth happened because in that year value of R$ 2,5 thousand in 1995, going up in the GDP had an expressive growth tax due to a 2004 to R$ 6 thousand reais, with an metodology change in IBGE as explained before.

TABLE 21 GDP Per Capita to Current Prices in Montes Claros (1995-2004)

Source: Guedes, Geraldo Matos.

6.6. Industrial Park: 6.6.1. Main industrial segments:

Related to installed industries we can point – Food: out: the greatest Condensed Milk Plant in the World (Nestlé), one of the three insuline plants Cardoso & Anscimento – Letícia Coffee: in Latin America (Novo Nordisk), one of the Triturated coffee, capuchinos and milk and most modern textile plants (Cotemians Group) coffee. and the fifth greatest cement plant in Brazil Cooperativa Grande Sertão: (Lafarge).

59 Associação Commercial, Industrial and Services from Montes Claros

Food product manufactoring – fruit pulps. growth disturbance and hormoanl reposition therapy. Comercial Comar Ltda:

Bisquit manufactoring. Vallée S/A: In the pharmacist branch, Montes Claros Corby Comércio E Indústria De Bebidas Ltda.: unit founded in 1978, it produces veterianry Bevearage Plant. articles (vaccines, etc) of all classes, focusing production animals as cattle, pork, goat and Indústria e Comércio Bibi Ltda: horse. Vallée has the most complete market Food product manufactoring (salty food and line in its segment. sweet popcorn). – Civil Construction: Nestlé: The company has 26 units in Brazil being 5 Antares Premoldados Ltda: in Mians Gerais (Uberlândia, São Lourenço, Pré-moulding manufactoring (glazed clay Ibiá, Ituiutaba and Montes Claros in North pipes, concrete blocks, blocos de concreto, of Mians). Its unit in the production of groove, posts). condensed milk is the hugest one in Latin America. Construtora Novais Ltda: Construction and pavements. Pandy Indústrias Alimentícias Ltda:

Fried potato industry. Indumetal: Metalic structures, Fabricante de estrutu- Somai Nordeste S/A: Egg production plant. ras metálicas, watertank and similars for industries, commerce and regioanl – Biotechnology: agriculture and cattle production.

Novo Nordisk: Lafarge Concreto S/A: The danish health company has two plants World leader in construction materials, being in Mians Gerais installed in Montes Claros. the best in its all activities: Cement, concrete In 2007, April it started the hugest insulin and Drywall. It has 71000 employees in more plant in Latin América in Montes Claros, which represented an investment around than 70 countries. In Brazil, it employees 1,5 US$ 200 million. With a constructed area of thousand employees in units located in Rio 37.000 m², Novo Nordisk plant has advanced de Janeiro, São Paulo, Mians Gerais, Bahia, insulin production technology. Responsible Peranmbuco e Santa Catarian States. The for the insulin production growth of 500% in plant in Montes Claros produces Portland the country, the new plant has the capacity cement. to produce 200 million of 3 ml refills for insulin pens per year. Around 95% of total Pavisan: volume produced by the plant will be exported Asphalt industry. to other countries as Germany, Áustria, United Kingdom, Ireland, Austrália, New – Logistic: Zeland and Caandá. Atende Logística Ltda.: The company has a complete diabetes Wholesale merchant. product portfolio, including advanced insulin aplication systems. Novo Nordisk is still Distrinorte: leader in areas such as coagulation and Food distribution.

60 Distribuidora Xodó: Produces advanced products and water Food distribution (candies). measure intelligent solutions. Located in Montes Claros, it is part of Elster Group, the Lima e Moraes Transportes E hugest company in water measure solutions, Armazeangem Ltda.: energy and gas. It is settled in more than 38 Transportation. countries.

Mercolub Petróleo Ltda: Reboques Triunfo: Oil and lubricants Wholesale merchant. Metalurgic industry (agriculture wagons, wheelbarrows, garbage containers) Rodoviário Líder Ltda: Transportation. Suporte Engenharia: Industrial mechanic montage. Skol Distribuidora De Bebidas: Beavarage distribution (beer and Usiangem Santa Luzia: refreshment). Metalurgic industry (trefilled in iron and steel). Tequimar: Warehouse services. – Textile:

Transmoc Transporte E Turismo Montes Cia de Tecidos Norte de Mians – Cotemians Claros Ltda: S.A.: Colective transportation services. Cotemians S.A. consumes annualy 100 thousand tons in fibres - 12,5% of all ancioanl – Wood/furniture: cotton consumption. It has four plants in Montes Claros from a total of twelve. Expansão Indústria e Comércio Ltda: Cotemians and coligated employee more Wood development (Sawing and pré-cut wood). than 16 thousand people. In 2006 its total income was R$ 4,16 billion and liquid income Florestal Vale do Jequitinhonha Ltda. – Florevale: was of R$ 3,57 billion. In its units it produces It produces wooden doors and it has aproject and distributes products that show great that will generate 200 new jobs in North of trade marks in the market. They are lines, Mians and the Northeast. It received fabrics, T-shirts, socks, bath and face towels, investments of US$ 5 million. nightgowns and blanckets for interanl market, United States, Europe and Mercosul. Mourões Touro: Production of prepared eucalyptus wood for Cia de Tecidos Santanense: several usages.. Santanense has 3 plants in Mians Gerais (Itaúan, Pará de Mians and Montes Claros). Refloralje Reflorestamento e Agropecuária The company ends 2006 invoicing R$ 293,4 Ltda.: million. In 2004, Santanense was bought by Production of prepared eucalyptus wood and Cotemians. reforest activities. Têxtil Paculdino S/A: W. C. W. Móveis Decorativos: Founded in 1981, it has modern technology Produces furniture under requests, indus- that produces lines Ne 24 e 28 and produces trial, commercial and residential. lines in air jact sewing machines of last generation. Since 1997, it has ISO 9002 – Metalurgy: Certificate given by german DQS. The sewing, 6 months after implantation was Elster Medição de Água S.A.: already “certified”.

61 Associação Commercial, Industrial and Services from Montes Claros

In textile segment we can point out the Plásticos Vzp: existence of a Confection Pole whose Plasting package industry. organization is made by SINDVEST Norte – Reciplast: North of Mians Cloth Industry Syndicate which Recycling – recovered grain. unites 46 confection segment companies in Montes Claros. We may poin out in this T & D Indústria e Comércio Ltda.: segment companies as Roka, Vértice, Cleaning material plant. Tendelle, Gênios Uniformes, Divian Arte, White Martins Gases Industriais Ltda: among others. Medicianl gases plant and commerce.

– Others: 6.7. Emplyment and Jobs:

Denver S/A. In next boards we have the caracterization of Electrodes and solders plant. job generation and employment apropriation in Montes Claros. Funcioanl Lavanderia E Higienização De Roupas Ltda: In 2006, according to Labour Ministry, there Laundry services. were generated 54.909 formal jobs in the city and 19% were occupied by people in the age Hartmann Embalagens Montes Claros group from 16 to 24 years of age. The proportion Ltda.: of men is still superior than women. Men got Moulded fibre package production. 61% of the vacancies.

BOARD 9 NUMBER OF FORMAL JOBS ON 2006, DECEMBER THE 31st

Source: RAIS/2006 - MTE

62 Comparing year 2006 with 2005 there was an that gave a great contribution for this fianl increment of 2.589 new jobs; positive growth, was Services that, alone, generates variation of 5%. Only the activities in Public 2.924; it balanced the lost of 1.366 jobs in Administration and Agriculture had a non Public Administration and 48 jobs in increment during that period. The activity Agriculture.

BOARD 10 FORMAL JOB VARIATION ON DECEMBER THE 31st BETWEEN 2005 AND 2006

Source: RAIS/2005 e 2006 - MTE

In terms of medium salary, the formal jobs in Services (R$ 929,98) and Transformation Montes Claros in the year of 2006, according Industry (R$ 861,99). to Labour Ministry was of R$ 778,71. The In case of male worker the highest mediums female workers received lower salary than by activity were Services (R$ 976,23), Public male workers. While a male worker received Administration (R$ 960,08) and a medium salary of R$ 784,08, the female Transformation Industry (R$ 901,54). worker received R$ 769,99. Female worker had the highest mediums in The activities with higher level in medium Public Administration (R$972,45) and in salary were Public Administration (R$ 972,45), Services (R$929,98).

63 Associação Commercial, Industrial and Services from Montes Claros

BOARD 11 MEDIUM SALARY FROM FORMAL JOBS IN 2006, DECEMBER THE 31st.

Source: RAIS/2006 - MTE

Considering the formal job floating in the 2007, The activities that gave more contribution for January to December period, Montes Claros that positive balance were Commerce (1.005 tried a positive balance of 2.608 new of balance) and Services (783 of balance). vacancies, facing 21.549 employments and Those are also the activities with higher 18.941 discharges. floating in tyhe period regarding employments and discharges.

64 BOARD 12 FORMAL JOB FLOATING 2007/Jan to 2007/Dec

Source: CAGED/MTE Note: In total, “Ignored” are not included”

In terms of medium salary admission, the Administration (R$868,20) and Public Utility best paying activities in the period of 2007, Industrial Services (R$ 890,00). January to December were Public

BOARD 13 ADMISSION MEDIUM SALARY 2007/Jan to 2007/Dec

Source: CAGED/MTE Note: They were considered only admissions with a validadted salary;

65 Associação Commercial, Industrial and Services from Montes Claros

6.8. Fiscal and Fiannce Incentives: Geramians:

The municipe of Montes Claros has several Credit line for micro and small companies and options on fiannce and fiscal incentives to cooperatives that need to restructure their entrepeneurs who intend to instal their business and increases their participation in productive units here. The incentives are in the market. This credit line is perfect tor those the three circles – municipal, state and fede- who need to increase its capital or to invest in ral. increasing, readequation or modernization of facilities, equipment and products or services. 6.8.1. Municipal Incentives: Only the companies fitted in Simple Tax or that The municipe of Montes Claros has a group of made an option for Foment and Social and fiscal incentives for installation and Economic Development of Mians gerais State ampliation of companies through its Social and (Fundese), up to 2007, June the 30th, can Economic Development Municipal Board. require fianncing.

The incentives ruled by Complementary Law It can fiannce circulating capital; machines 04/2005, Law 2.300/95 and Decree 2.283 of / and equipment; civil constructions and land 2006/10/26. The icentives ruled by area purchasing with commerce destiantion; Complementary Law are: commercial vehicles; furniture and utensiles; informatization; training; product and process Doantion and subsidy for land area developing, including expenses with purchasing; purchasing, absorption and adaptation of technology and technical assistence. The Partial or total IPTU – Urban Real Etate and Contry Real Estate Tax and of ITBI – Real Estate fiannce value varies from R$ 5 thousand to R$ Transmission exemption up to 10 years; 360 thousand, with a percentage of 1% of the fiannce value that is discounted when the Partial or total ISSQN – Tax over Any Anture resources are liberated. The stated period can Services exemption up to 10 years; be of 36 months with three months shortage.

Taxes, Contributions and Public Prices Machine and implementation fianncing for exemptions up to 10 years. agriculture sector – BDMG Agrobusiness:

For Technology or Strategycal companies there Fianncing for agroindustrial or forest antioanl is a possibility of icreasing of incentive and or foreigner companies of any size, including different treatment in its aplication. cooperatives; for industrial or forest antioanl Strategycal companies are semiconductor, or foreigner companies; for the country software, equipment and drug/medicine producer through credit cooperatives belonging companies. Technology companies are the to Mians Gerais Central Credit Cooperative ones whose activities are related to the future (Credimians); to physical or juridic people in (biotechnology, annotechnology and biomass/ entrepeneurings directly or indirectly to Jaíba renewal energy). Project or other country programs. Credit for fixed or semi-fixed investments, machine or 6.8.2. State Incentives: agricultural implements of antioanl Mians Gerais State supports all manufactoring and environmental licence and entrepeneuring iniciatives within the state. technical assistence. It has a cover up to 80% In North of Mians, and therefore Montes Cla- of project cost with taxes of 11,25% per year ros, we can point out: according to used line credits, subjected to

66 consultation. Adding information can be got in enterprises, IRPJ re-investments, IOF and the electronic address http:// AFRMM exemption, Incentivated acelarated www.bdmg.mg.gov.br/solucoes_bdmg/ depreciation and discount for the PIS/Pasep bdmg_agronegocio.asp. and Cofins contribution.

Fianncing for implementation of any size 6.8.3.1.1. FNDE: company – BDMG Implantation: The Northeast Developing Fund – FNDE Fianncing for implantation of micro, small, objectives to assure resources to invest in the medium and huge companies covering acting area of Northeast Development investments in construction, installing, Superintendency – SUDENE, in ifra-structure machine, vehicle, equipment purchasing, and public services and in productive product, process and service developing. It has enterprises with great germiantive capability a cover up to 60% of project cost and up to 80% of new business and new productive activities. for companies installed in Royal Road circuit For the enterprises of juridic people interest with taxes of 12% per year, according to used that are implanted, improved, modernize dor line credits and stated period up to 96 months diversified in SUDENE’s acting area, FNDE with 24 months of shortage; for micro and participates up to 60% of total investment, small companies stated periods up to 60 limited to 80% of the fixed investment and months with 12 months of shortage. Adding represented by the subscription and information can be got in the electronic integralization of convertable debentures in address http://www.bdmg.mg.gov.br/ shares emited by project responsible solucoes_bdmg/bdmg_implantacao.asp. companies or their holdings. The convertibility is limited to 50% of the subscripted amount of 6.8.3. Federal Incentives: the debentures when they are infra-structure 6.8.3.1. SUDENE: projects or 15% for other sectors enterprises.

The Northeast Development Superintendency The stated period is up to 20 (twenty) years for – SUDENE is a special federal company, the infra-structure projects and up to 12 administrative and fiancely independent, that (twelve) months for the other enterprises, integrates the Planning System and Federal including the shortage period. Other Budjet, created by Complementary Law number conditions and regulations can be checked in 125, from2007/03/03, with headquarter in the eletronic address http:// Recife, in Peranmbuco State and connected to www.sudene.gov.br/site/ menu.php?cod=173&idioma=ptbr&hotsite=0. Integration Antioanl Ministry. 6.8.3.1.2. FNE: SUDENE has to estimulate through incentive administration and fiscal benefits, the The Northeast Fianncing Constitutioanl Fund prioritary private investments, the productive – FNE objectives to contribute for the economic activities and developing sub-regioanl and social development of Northeast, through iniciatives in its acting area, according the the federal fiannce institute of regioanl Deliberative Board definition from paragraph character, excecuting fianncing programs to 2º from art. 43 of Antioanl Law and according productive sectors, according to respective to current law. developing regioanl plans.

Fiscal Benefits allowed: IRPJ Reduction for new Its destiantion is the country producers, enterprises, IRPJ Reduction for existent indidual companies, juridic people, production

67 Associação Commercial, Industrial and Services from Montes Claros

association and cooperatives that develop Productive Microcredit Oriented Program from activities in agriculture, cattle, mineral, in- Northeast Bank that facilitates the access to dustrial, agroindustrial, touristic, infra- credid with solidary guarantee to thousand of structure, commercial and service sectors. entrepeneurs that develop activities related to production, commerce and services. Its fianncing limits, stated periods and Associated to credit, Crediamigo offers to the gurantees are according the line credit anture, entrepeneurs orientation and follow up the the taker, the size and fianncing programs and best aplication of the resource, therefore can be consulted in the address http:// integrating them in a competitive way into the www.sudene.gov.br/site/ market. menu.php?cod=213&idioma=ptbr&hotsite=0. FINOR: 6.8.3.2. Northeast Brazil Bank: The Northeast Investment Fund – FINOR is a The Northeast Brazil Bank A. S. is the largest fiscal benefit allowed by the Federal regioanl development bang in Latin América Government and created by Decree nº 1.376 and its mission is acting as S. A. é o maior of 1974.12.12. Made of resources applied in banco de desenvolvimento regioanl da Améri- shares and debentures, it supports fianncely ca Latian com a missão de atuar, an agent for installed enterprises or to be installed in the the sustaianble development in the Northeast acting area of the extinct Northeast integrating it into the antioanl economy Development Superintendency – SUDENE. dyanmic. Reinvestiment: Regarding fiannce incentives to entrpeneurs from the more varied sizes and segments, Fiscal benefit created by the Federal Northeast Bang acts, among others, in: Government that allows companies from in- dustrial, agroindustrial, infra-structure and Grow Northeast: tourism sectors, considered priorities With resources from Northeast Fianncing according Decree nº 4.213, from 2002/04/26 Constitutioanl Fund – FNE, it was created Grow that are in operation in the Northeast Northeast, a fianncing program with low Development Superintendency – SUDENE pwercentages and longer stated periods made area, to re-invest in their own equipment for company owners and entrepeneurs in all modernization or complementation projects. Brazil who want to invest in the region. They The re-investment corresponds to 30% of the are R$ 3 billion in credit lines available in Incom Tax in debt, calculated over the special conditions for several sectors. Its main exploration profit, added with other parcel (50% goal is to promote the growth of economic from the 30%) of Self Resources. activities on sustaianble bases, strenghted the interanl market. In order to do so, the company must opt for the incentive in the Income Declaration and Grow Northeast will benefit entrepeneurs of deposit the correspondent values in Northeast all sizes in industry, commerce, services, cul- Bank agencies, remaining that amount, while tural, tourism, grains, apiculture, cattle, raw not applied, reserved and preserved in a material, goat, fruit culture and flower culture remunerated account, based on Extramarket sectors, besides family agriculture. Tax stated by Brazil Central Bank from the

Crediamigo: deposit date up to its effective liberation.

68 The guarded values in BNB may be used for of fiannce support for implantantion and already made expenses refunds in the ampliation of business units in Agroindustrial, calendar year corresponding to the option or Commerce and Services, Industrial, Country, to purchase new equipment. Tourism and Technology with or whithout Besides, Northeast Bank has several options associatede circulating capital.

69 Associação Commercial, Industrial and Services from Montes Claros

70 71 Associação Commercial, Industrial and Services from Montes Claros

72 POTENCIALITIES

In the context of a city as Montes Claros, investment of R$ 80 million. where there are an expressive number of institutions turned to universitary education, In Montes Claros industrial compound there technical and specialization forming, by the will produced around 48 million litters of side of developing and research units and biodiesel per year, generated a presumed living up with culture, arts, memory and income of 50 million reais, in the period for patrimony entities, the association with the raw material producers, what envolves productive capital creates a favourable around 15 thousand families. environment to new business and it is the According Mianspetro, Montes Claros has the improving for the existent ones. Fuel Distribution Base, with 4,5 million litters With its economic dyanmism, cofirmed by the capacity, what is a strong stimulus for presented data, it opens a space to suggest investors in that activity. some potential activities and for all North of 2. BIOTECNOLOGY: Mians Region, area which Montes Claros po- larizes the economy, society and policy. In the biotechnology field the city polarizes a singular condition and may allow a local/ They may be considered existing potentialities regioanl acting focused in several alterantive in Montes Claros: of investments in the sector. We may point 1. AGROENERGY: out: regioanl bioma, animal agrobiotechnology (cattle, goats, sheep, proks, fish and small The main objective of Research, Development, animals), vegetable (regioanl culture, baanans, Inovation and Technolgy Transfer in fruit, silvicultura, cotonicultura, fitocultura), Agroenergy is to develop and transfer production of genetyc solutions, medicines, knowledge and technology that may contribute veterianry vaccines, veterianry products, for a sustaianble of energy agriculture and the plague control, cloning banks, genetically ratioanl use of renewal energy objecting the modified organisms, inoculed agriculture, brazillian agrobusiness competitivity and the nutraceutics, pathogenyc culture, sinthetyc support to public policies. proteins, soil recuperation, re-vegetation, biosafety, sinthetic fibres, imunization. In this segment, a great opportunity of investment in the support to energetic matrix 3. EDUCATION: change through installation of processing of biofuels units. (alcohol, biodiesel). With the consolidation of the State University of Montes Claros as a reference in the Antioanl Within incentive program to Biodiesel University Education, Montes Claros has lived implanted by the Federal Government, Mon- each year with the increasing for that service. tes Claros receives in 2008 one of the three Therefore Montes Claros has a potential compounds of industrial units for biodiesel market for investments in professioanlizing production of Petrobrás, with a forecasted education, in graduation courses, post

73 Associação Commercial, Industrial and Services from Montes Claros

graduation courses, long distance and virtual 6. INFORMATION TECHNOLOGY: education, besides the technical study that also has an increasing demand for new Montes Claros demands and presents professioanls because of the growth of the in- conditions for the increasing of local business dustrial, commercial and services activities with local/regioanl/antioanl acting in the nets in town. and portals segments, e-commerce platforms, commodities market, informatized invoice As a consequence of that consolidation emer- “cim”, applications turned to the agricultural ges a whole demand for complementary goods business, cryptography of data, biotechnology and services offering in house building, feeding support, etc. and transportation systems. 7. TEXTILE: 4. FRUITCULTURE: By the tradition of the region and because of Not only Montes Claros but also the whole area the companies already installed in Montes that is influenced by it, has the hugest fruit Claros as in netting and fabric segment as in planted area and the irrigated fruit area gets confection, the towns is going to consolidate it a strong business opportunity in cultures as self into a Regioanl Pole in confections. baanan, orange, graviola, maracujá, mango, pequi, avocado, lemon and others. All this taking advantage of a very good sceanrio that is drawn for the next years, sustained Besides the in-antura fruit production, there among other factors: is a great potential – perhaps even greater than the first option – directed to the Annual growth of 3,9% of the world consolidation of an infrastructure for the consumption for textile fibers; agricultural business support (credit, Growth of textile world commerce on a tax of transportation and stocking) and the 5,6% per year, forecasted to surpass the installation of business facilities that may platform of U$ 800 billion in 2015; process the products and add value to the regioanl/local production. In Brazil, in period between 1995 and 2006, the production increases 12,0% but the 5. CATTLE FOR CUTTING: consumption increased 23%, which indicates In Montes Claros we have the hugest number that part of this major demand was of cattle and the one that more grows in the compensated by the reduction of exportations influence region of the town. This activity, and for the growth of the importations; whose tradition started 100 years ago, is going anos, sustentado entre outros aspectos por: to consolidate the region as the main one in the State. It is forecasted for this activity a 8. TOURISM: medium growth of 5% per year for the next 10 Montes Claros is located in a strategic region years, an economic growth from 15% to 25%, with specific and qualified cattle for exportation in the South/Southeast Pole and Northeast of Brazil extremely rich in touristic aspects: and availability for land at a low cost. Those regioanl cooking, geographic aspects, historic factors allow a significative reduction of production costs and increasing profits in and artistic patrimony, etc. terms of rentability. This activity, explored professioanlly, presents

74 several options, from the leisure tourism to editions on which the gains were consecutive events and business tourism, through eco- and the evolution, constant.With the support tourism, and through culture, cooking and lo- of private companies, public entities and cal art. foment organs, the major objective of FENICS is to stimulate the growth of all sectors of The business regioanl tourism has its strong business speeding their conquests. dot in events such as Fenics, Expomontes, Seminário Varejista Norte de Mians, Exposi- The Fair has as visitors entrepreneurs, libe- ção Agropecuária de Jaanúba, Festival da Ca- ral professioanls, business owners, students chaça em Salians, among others. The cultu- and public in general, with a number around ral tourism includes the Festas de 80000 people by event. With a total area of 38 Agosto,Festival Interancioanl do Folclore, Fes- thousand m², the Fair contains 230 stands and ta Ancioanl do Pequi, etc. In the Ecologic a number around R$ 110 million in generated Tourism, the region has Parque Estadual Lapa business. Grande (the hugest complexo of caves and createdrs of Mians Gerais), Parque Estadual ACI is located ahead time with proposals and de Grão Mogol, Parque Estadual Caminhos dos innovated ideas. The entity organizes itself, Gerais, Parque Estadual do Verde Grande, Par- proposes strategic plans and draws important que Estadual de Serra Nova, Parque Ancioanl lines for the social-economic development. To Vale do Peruaçu, Parque Ancioanl Grande Ser- join the private and public powers plus the tão Veredas. organized society for that development is, no doubt, a step further to achieve an objective: 9. HEALTH: the motivatioanl strength that gives the entrepreneurs an impulse to success. The improvement in the forming of professioanl in superior level in several The fair has as partners the Montes Claros specialities by local educatioanl sector and the City Hall, Ibituruan College, SEBRAE, Novo improvement of local demand for medium and Nordisk, FIEMG, Northeast Bank, Caixa Eco- high complexity health care transform Mon- nômica Federal, INDI and IDENE. And as tes Claros into a great potencial for investment supporters Music Scholl Lorenzo Feranndez, wiyhin this segment. Brazil Bank, ESURB, CEMIG, BDMG, Health Plan São Lucas, Vallée, Lafarge, Itatiaia Radio Montes Claros is responsible for solutions to and SICOOB CREDINOSSO. health problems of media and high complexity for a group of more than 150 municipes from The Fair has as visitors company owners, li- SUDENE Mineira Area and the complete Bahia beral professianls, entrepeneurs, students and South region, which correspond to a population general public. It makes available for the around 2 million inhabitants. Thus, the exposers stands with basic construction made formation of graduated students is increased of division walls in panels in white, carpet, in several specialities. special roof made of alumnium, lighting and a 10. FENICS – A UNIC OPPORTUNITY CASE: standardized identificafion plate with adesive black letters. The history of Feira Ancioanl da Industria, Event General Data: Comércio e de Serviços de Montes Claros – FENICS is a history of idealism and superlation Visiting Public: 80.000 people of Associação Comercial, Industrial e de Ser- viços of Montes Claros – ACI. There were 13 Total Area Total: 38.000 m²

75 Associação Commercial, Industrial and Services from Montes Claros

Fair Area: 21.000 m² and investors contacts through the eletronic address http://www.fenics.com.br/fenics/ Parking Area: 17.000 m² index.htm.

Covered Area: 8.000 M² Very soon, it will begin the construction of Convention Center in a 50.000m² area, with Number of Stands: 230 an investment forecasted of R$12 million. It

Presumed Generate Business: R$ 110 also is in negotiation the installation of a Million research unit of EPAMIG in Parque Tecnológico, with the implementation of Nucleo de P&D e FENICS keeps a permanent gate for visitors Inovação em Biodiesel and new cultures.

76 REFERENCES

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SEBRAE et alli. Caminhos para o www.montesclaros.mg.gov.br desenvolvimento. Software. Belo Horizonte, www.valle.com.br 2006. www.vemade.com.br SOARES, Gilberto Wagner. Influência dos custos na formação do preço de venda em micro www.ibge.gov.br e pequenas empresas do ramo de confecções www.lafarge.com.br em Montes Claros – um estudo de caso. Monografia. Montes Claros, Unimontes, www.unimontes.br Novembro, 2005. www.elster.com.br

SUMA ECONÔMICA Consultoria e www.facit.edu.br Publicações. Edição 358, Fevereiro 2008. Cop Editora Ltda. Rio de Janeiro, 2008. www.facomp.edu.br www.fasi.edu.br UNIMONTES-Universidade Estadual de Montes Claros, Departamento de Economia, www.fip-moc.edu.br Índice de Preços ao Consumidor da Cidade www.funorte.com.br de Montes Claros - Disponível em: . Acesso em: www.santoagostinho.edu.br 28 jan. 2008. www.unipacmontesclaros.com.br www.diarioon.com.br/arquivo/3828/ www.sudene.gov.br economia/economia-24717 http://www.vallee.com.br www.hojeemdia.com.br/v2/ index...1¬icia=6140 http://www.bancodonordeste.com.br www.aneel.gov.br http://www.bdmg.mg.gov.br

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