The Time Has Come To

¤ 5,00

totum YEAR VI number 27 JUL/AGO/SEP 2014 R$ 14,00

BRAZILIAN COMPANIES GO INTERNATIONAL THE TIME HAS COME TO

Guerrillas? Drugs? Forget it! Colombians attract investments BRAZILIANfrom Brazilian COMPANIES GO INTERNATIONAL companies, thanks to their strong economy, projects CO and innovation

:: ON THE GLOBAL CIRCUITS Contemporary Brazilian art is springing a surprise, gaining prestige and going international LOM :: BRAZIL ON BOEING´S ROUTE The giant aerospace company, led by former ambassador Donna Hrinak, is investing in partnerships with Embraer and universities :: SMALL BUT OUTSTANDING Innovative acclimatizing system heats up Joape´s exports BIA The glamour of Búzios with the Blue Tree Hotels signature.

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An-404x266-Ing.indd 1 19/09/12 14:17 The glamour of Búzios with the Blue Tree Hotels signature.

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An-404x266-Ing.indd 1 19/09/12 14:17 Contents 10 ANTENNA + Gisele Bündchen advertises sportswear + Asians tourists want to visit Brazil + Pharmaceutical companies aim for the global market + Enaex discusses the costs of foreign trade + Beer from Vinhedo in upstate São Paulo wins award in Portugal + Odebrecht leads internationally-active Brazilian companies + Three questions for Carlos Alberto dos Santos

OPINION • Brazil needs a new 48institutional structure for foreign trade RUBENS BARBOSA

SMALL BUT OUTSTANDING • 52Innovative acclimatizer from Rio Grande do Sul company is in 30 countries ANTONIO CARLOS SANTOMAURO

SMALL BUT OUTSTANDING • 56Hammock maker Redes Isaac, from Fortaleza, competes with Colombian producers in Europe

ANTONIO CARLOS SANTOMAURO HANDOUT

EXECUTIVE TRAVEL • New look 58for Guarulhos airport; Minas Gerais seasoning in Paris; an iconic hotel in Rio MARCO ANTONIO DE REZENDE

IN TRANSIT • Tiffany Kearney EXPRESS TOURISM 66draws a parallel between the 62 Fields medal and Brazil in the world Eva Perini lives between Brazil and Florence and presents her personal suggestions for a visit to the capital of Tuscany Brazilian companies business opportunitiesfor investments andcreating Colombia isattracting With itseyeonthefuture, 34 MARCO ANTONIO DE REZENDE, BOGOTÁ COVER

DIVULGAÇÃO DIVULGAÇÃO HANDOUT partnerships withcompaniesanduniversities Brazilian operations andisaiming to form Former ambassadorDonna HrinakheadsBoeing´s 30 NELY CAIXETA AND ARMANDO MENDES 20 and goinginternational springing surprises,gainingprestige Contemporary Brazilianartistsare ADRIANA SETTI, BARCELONA ART INTERVIEW Editorial

TOTUM EXCELÊNCIA EDITORIAL

Marco with minister Cecilia Álvarez: great time for Colombia PIB HANDOUT BRAZILIAN COMPANIES GO INTERNATIONAL

A QUARTERLY MAGAZINE FOCUSING ON INTERNATIONAL BUSINESS AND ECONOMICS If only Brazil could be like Medellin Publisher Nely Caixeta • [email protected] This was the feeling editor Marco Antonio de Rezende had when he Editors Armando Mendes, Dario Palhares returned to Brazil from a trip to Colombia at the beginning of September. and Marco Antônio Rezende

Marco is a veteran foreign correspondent. He spent over a decade based Contributors to this edition in Europe for the news magazine Veja and covered historic events like Antônio Carlos Santomauro, Dario Palhares, Eva Perini, de Florença, Rubens Barbosa, the revolution of the ayatollahs in Iran, the break-up of the Soviet Union Tiffany Kearney, de Boston

and the endless violence in the Middle East. He now presents us with COVER: a portrait of his latest immersion in foreign lands. Marco spent 10 days Protexto in Colombia during which he made seven flights and drove along almost Designer 1,000 kilometers of tip top asphalted roads through various regions, visi- Renato Dantas Copydesk and Preparation ting plants, work sites and the local headquarters of Brazilian companies Mary Ferrarini

which have crossed the Andes to play a part in the surprising rebuilding Translation of the Colombian economy. “I knew that Colombia was experiencing a John Fitzpatrick and Kevin John Wall good period after decades of civil war and international isolation but I ADVERTISING was still taken by surprise,” he said. INTERNATIONAL AND BRAZIL (55-11) 3097.0849 Of all he saw, Marco was captivated, above all, by the city of Medellin, [email protected] the second largest in the country. Not so long ago, Medellin only appea- Av. Brigadeiro Faria Lima, 1903, cj. 33 red in the media linked to the word “cartel” and the top drug trafficker Jardim Paulistano - 01452-911 - São Paulo - SP PRINTING Pablo Escobar. Nowadays, in a sign of its transformation, the word most D’Arthy Editora e Gráfica Ltda associated with Medellin is “innovation”. The stories of a city and country Where to buy past copies: direct from the pubisher that have reinvented themselves — and the role of Brazilians in this effort Administrative Consultant — are told in 14 pages of this issue. Luiz Fernando Canoa de Oliveira The reader will also find a report by Adriana Setti from Barcelona on [email protected] the impact Brazilian artists are making on the international art market. It EDITORIAL CORRESPONDENCE Av. Brigadeiro Faria Lima, 1903, cj. 33 is not just contemporary artists like Beatriz Milhazes and Vik Muniz who CEP 01452-911 - São Paulo - SP [email protected] are winning space in galleries and museums. Iconic names in Brazilian Signed articles do not necessarily represent the art from the 20th century, such as Lígia Clark and Sérgio Camargo, are opinion of the editors. Totum reserves the right to edit or summarize letters. also being discovered and revaluated. The interview in this edition is with Legally responsible journalist Donna Hrinak, a former US ambassador to Brazil and currently head of the Nely Caixeta (MTb 11 409) PIB – Brazilian Companies go International American aerospace giant Boeing’s operations in Brazil. She talks about is published by Totum Excelência Editorial the challenges and opportunities of cooperating with the Brazilian aeros- Av. Brigadeiro Faria Lima, 1903, cj. 33 CEP 01452-911 - São Paulo - SP pace industry. Our piece for travelers includes a short break in Florence, (55-11) 3097.0849 - [email protected] the jewel of the Italian Renaissance. Have a good trip! Print run for this edition Portuguese – 20.000 English – 5.000

Nely Caixeta

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BRAZILIAN COMPANIES GO INTERNATIONAL

A baby

BRAZILIANper COMPsecondANIES GO INTERNATIONAL Fanem, leader in neonatal equipment, exports to 100 countries and opens plant in India, the heart of the demographic explosion

:: TOGETHER AT LAST The Senai Innovation Institutes and Embrapii form a bridge between scientific research and Brazilian companies

:: GLOBAL PATH WORKING TOOL Suppliers of the oil and gas sector go in the opposite direction of Petrobras and continue to invest abroad ¤ 5.00

:: INTERVIEW totum Jaime Ardila, GM president for South YEAR VI America, believes Brazil is still afraid to number 26 open up to world trade APR/MAY/JUN 2014 R$ 14.00

“Dear Editors, UK Trade & Investment (UKTI) PIB26-ENG.indb 1 29/06/2014 02:38:51 uses PIB magazine as an essential working tool when we look for Brazilian companies going in- idea expressed by the president of GM for Sou- ternational. It presents information that is new th America, Jaime Ardila, in the last issue of PIB: and important and has a high quality of journa- “In today´s fully integrated world, it is very diffi- lism. The magazine has helped us validate our cult for a country to remain closed to trade rela- strategies and, for this reason, we wish to con- tions. It loses competitiveness.” Thanks for the gratulate your team and hope you continue to excellent magazine.” improve your work.” GABRIELA IGARZA A. RAQUEL KIBRIT | INVESTMENT MANAGER INTERNATIONAL REPRESENTATIVE CAMEX-PERU UK TRADE & INVESTMENT BRASIL - SÃO PAULO – SP AGRICULTURE PRODUCTS RIO DE JANEIRO - RJ FOREIGN STUDENTS “Our courses consider world issues and the chal- BRAZIL-CANADA lenges of international affairs. Graduates are “I am a foreign trade consultant living in 0tta- trained to conduct independent scholarly resear- wa, Canada. I started subscribing to your maga- ch and develop an understanding of major globa- zine when I began studying international trade. I lization issues in specific fields.. For this reason, want to congratulate you on the magazine which PIB magazine is a valuable source of informa- always presents material with high quality con- tion on the reality of Brazil in its political, eco- tent. I would like to take advantage of this op- nomic, social and cultural dimensions. It is very portunity and suggest you include articles about important for the foreign students taking cour- the Brazilian presence in Canada and the need for ses at the FEA/USP to have this reference mate- direct shipping routes between Brazil and Cana- rial about Brazil in their hands, in Portuguese and da.” English.” RAQUEL VIANNA CARDOSO | OTTAWA – CANADA DR. EDSON LUIZ RICCIO (PH.D.) PROFESSOR OF INFORMATION SYSTEMS CORPORATE WORLD & INTERNATIONAL MANAGEMENT “I am business director of Carreiras RH, a com- DIRECTOR OF INTERNATIONAL RELATIONS pany that recruits and selects professionals up SCHOOL OF ECONOMICS, ADMINISTRATION to mid-management level and provides tempora- AND ACCOUNTANCY – FEA/USP ry services. PIB magazine often provides me with excellent information on the corporate world SMALL COMPANIES which has helped enormously in defining the target of our Consultancy´s operations. Another “What the world expects is a Brazil that is con- aspect I find important is the fact that the ma- nected to the world. PIB magazine attracted my gazine appears in Portuguese and English. Con- attention right from the very first page. It gives gratulations to the Editors who are working hard us an insightful view of current international bu- to maintain the standard of producing a high le- siness developments. As a representative of Ca- vel of information, with content that is always up mex–Peru, I believe our countries need to streng- to date.” then their trade relations and expand the market ARYOVALDO ORTEGA MARQUES | BUSINESS DIRECTOR that is still underexploited to the benefit of our CARREIRAS CONSULTORIA EM RECURSOS HUMANOS small and medium-sized companies. I share the SÃO PAULO - SP

SEND LETTERS AND EMAILS TO THE EDITORS AT THE FOLLOWING ADDRESS: AVENIDA FARIA LIMA, 1903, CONJ. 33 SÃO PAULO (SP) – 01452-911 – [email protected]

8 REVISTAPIB.COM.BR Novo Portal do Sebrae. Direto ao ponto.

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Empreendedorismo Planejamento Finanças

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/sebrae @sebrae Antonio Carlos Antenna Santomauro Three women

2 ..Joanna is the best in the world... Gisele springs a surprise… Brazilian advertising has had its creative talent recognized internationally for a long time. Now it is the time for the advertising In an activity in which models appear to be women. Joanna Monteiro from Brasilia, who almost disposable, Brazilian supermodel is the vice president of creation at the FCB Gisele Bündchen reigns supreme. After Brasil agency, was elected the most creative almost two decades on the catwalk, the woman in the advertising world in August contract that she recently signed with by the American site Business Insider. She the Under Armour sports articles brand was chosen as a result of FCB Brasil´s good may have been the largest of her career: performance at the Cannes festival — the estimates indicate that Gisele will earn most important in the world in this area. The around US$ 275 million over a 10-year agency won the Grand Prix in the disputed period. Under Armour was founded in the Mobile category with a project for its client United States in the mid-90s and expects Nivea. The prize not only hailed Brazilian to have revenues of around US$ 3 billion advertising but also showed appreciation in 2014. Its products started being sold for the participation by women in the sector in Brazil this year in multi-brand stores which is not always recognized. “There are and the company is now looking to make still few women in the highest positions sponsorship agreements with football clubs. in the agencies, even in the United States, In her first job for the brand, Gisele appears where the advertising market is much larger

as a boxer attacking a punching bag. 1 and meritocracy prevails,” said Joanna. PICTURES: HANDOUT

10 REVISTAPIB.COM.BR 1 Gisele: 2 Joanna: 3 Carina: million dollar women´s cartoons on contract turn now cable TV

Brazil in a click

Exporters, importers and investors interested in improving their knowledge of what Brazil has to offer can now obtain information from a unified on-line source: the portal Brasil Export — Guia de Comércio Exterior e Investimento (www.brasilexport. gov.br), launched in July. Threes ministries — Foreign Affairs, (the Itamaraty), Development, Industry and Foreign Trade, and Agriculture — are responsible for the new tool in partnership with Apex-Brasil. The portal is available in Portuguese, English and Spanish and brings together 3 content from a number of sources on finding commercial partners and ...and Carina sparkles on raising foreign investment for Brazil. her return

To the winner, From Brazil to the mecca of cinema and back again: this was the path of Carina Schulze, a partner in Chatrone, a banana a film producer in Los Angeles which has had a Brazilian arm since last year. Carina from São Paulo, graduated in Literature, and moved to California in the 1990s to work in production. She set up Chatrone in 2006, in São Paulo Orange juice producer, the partnership with the American Aaron Berger. In Brazil, Grupo Cutrale, succeeded in persuading the company created the cartoon series Gaby Estrella, the American global banana distributor shown on the Gloob channel — the second season of Chiquita to consider a proposal to which is now under production— and is developing the buy the company for US$ 611 million. series Sem Volta for Record channel. (These projects are Cutrale´s initiative, in partnership with in partnership with the Brazilian company Panorâmica.) the Safra financial group, interrupted Her return was boosted greatly by the law that is a merger that was being negotiated encouraging local content to be shown on cable TV. between the American company and “Furthermore, although the American market pays well, its Irish competitor Fyffes, which the distributors sometimes buy things that are not always had been turned down initially. The shown. People who create, want to see their work on Chiquita shareholders will meet at the screen,” said Carina. Chatrone produced a cartoon the beginning of October to assess film in the US called Book of Life that will be shown in the offer from Cutrale and Safra. Brazil in October and was produced by Guillermo del Toro, the director of films such as Hellboy and Blade.

REVISTAPIB.COM.BR 11 Antenna

WITH AN EYE ON BRAZIL FERNANDO MAIA | RIOTUR 1

In Asian eyes :: Countries in which interest in visiting Brazilian destinations increased most* When the World Cup was showing the world Brazil´s Japan 137% tourist attractions — before and during the tournament 1 — China and Japan were the countries where there 2 China 105% was the interest had grown most in visiting Brazilian 3 Canada 74% destinations, according to the global travel site TripAdvisor. Americans and Argentineans remain the foreigners 4 Australia 68% who look most for information on Brazil on the site, in 5 United States 51% absolute numbers. Rio de Janeiro continues to be the most sought after destination by foreign visitors. :: Foreign countries with the greatest search for Brazilian destinations** Yellow card for industry 1 United States 2 Argentina 3 UK Brazil is in the company of China, the Czech Republic, Germany Poland and Russia as part of a group of markets in which 4 the industrial production costs are no longer well below 5 France the United States — in some cases they are even higher, 6 Canada according to the multinational consultancy Boston Consulting Group (BCG). A study by BCG analyzed the growth in the 7 Italy costs in the 25 main exporting countries between 2004 8 China and 2014. In Brazil, a combination of high wages and low Chile productivity pushed the industrial production costs 26 9 percentage points higher than the indices for the American market in the same period. Mexico had a better performance Source: TripAdvisor * August 2013 to July 2014 compared with August 2012 to and held on to its advantages even against China. July 2013 ** August 2013 to July 2014

12 REVISTAPIB.COM.BR 1 Rio de Janeiro: top destination

Attacking Market upgrade 2 Adibe: over- the-counter from the top drugs

3 Cristália: The São Paulo laboratory Cristália technology Another pharmaceutical laboratory from supplies products and raw materials for Mexico São Paulo, Cimed, wants to win over the to over 30 countries. Now it wants to American market and has set up a sales and move up another step on the world marketing office in Fort Lauderdale, Florida. pharmaceutical market and will start It is seeking local registration for some of exporting technology. It will begin its drugs that can be sold over the counter. cooperating with a company — the name This is the case with the anti-flu and anti- is still a trade secret — to build a plant allergy drugs, Cimegripe and Loratamed, in Mexico to produce antiretroviral drugs currently among the top sellers in Brazil. used in combatting AIDS. Cristália will At the moment, Cimed is exporting only to also supply this partner with the input African countries, sales of which account for and technology to produce the drugs. less than 2% of its revenues. Would it not be “We will then transfer the knowledge for a very daring step to try and grow in the US, the production of the active ingredients,” the father of Big Pharma? “The over-the- said CEO Ogari Pacheco. He says this is counter market there is five times larger than the first time the sector has transferred the Brazilian market,” is the answer from João technology abroad. Cristália is investing Adibe, the Cimed Group CEO. (The group also to expand its international presence — contains producers of food supplements and concentrated in Latin America, Asia, cosmetics.) Moreover, American distributors Africa and the Middle East— to the also sell products to countries such as United States, Europe and Japan. Mexico and Colombia which expands the potential market of the American operation.

2 3 HANDOUT HANDOUT

REVISTAPIB.COM.BR 13 Antenna

1 2 In brief On the heels of the giants INNOVATORS — The Brazilian companies Ambev and BRF are among the world´s most innovative companies in the list published by Forbes magazine. Ambev appeared in “We were very competitive on the 27th position and BRF in 92nd place. domestic market, even competing against multinationals. Now we are expanding MICROSOFT — Brazil accounted for 13 of the to Latin America,” said André Frederico, 73 awards made to Latin American com- corporate development director of the panies in the Microsoft Worldwide Partner Conference. Mexico won the largest number technology services provider Tivit that of prizes (19). recently acquired the Chilean company Synapsys for R$ 330 million. Tivit was CELTIC GUIDE —Mariana Borges, a Brazilian founded and based in São Paulo as part of the who lives in Dublin, has launched a guide Votorantim Group. It provides management to Ireland in print and digital versions, with information about events, the economy, and complete outsourced IT services and tourism, culture and art in the country. competes with giants like HP and IBM. Most of its shares were acquired in 2010 by an IN FLORIDA — The mergers and acquisitions American investment fund. Tivit had sales operator OPP, which was founded in Curitiba offices in France and the United States but and has its head office in São Paulo, has opened an office in Miami to give direct sup- only offered its services from Brazil until port to its international operation. now. The acquisition of Synapsis adds data centers in Chile, Colombia, Argentina and IN NEW YORK — The São Paulo real estate Peru to its infrastructure. Combined revenues broker Lello has expanded its operations should come to R$ 2.3 billion this year. The from Miami and Orlando to New York through a partnership with the American broker acquisition is being analyzed by the Brazilian Douglas Elliman. anti-trust regulators.

14 REVISTAPIB.COM.BR AWARDS FOR EXPORTERS 1 Enaex: Foreign trade Company category how do you cut costs? meeting in Rio :: Vale Exporting 2 Tivit: :: Itaueira Agribusiness acquisition :: Marchesan Capital Goods in Chile

Cutting costs for exporters and importers :: General Motors Durable Consumer 3 Minerva: was the theme of the National Foreign Goods meatpacker Trade Meeting 2014 (Enaex), held at the in Uruguay beginning of August in Rio de Janeiro. :: Vida Mansa Market Conquest Proposals were discussed to cut the costs of :: Usivale Small and Mid-sized logistics, relieve the tax burden and speed up Companies customs procedures in order to strengthen the Brazilian economy´s competitiveness. :: Fanem Technology The Enaex brings together companies, :: Camargo Corrêa Services service providers, academics and government representatives to discuss the sector´s :: Bunge Brasil Logistics problems and requirements. The mining giant :: Cenibra Management Vale won the 2014 Outstanding Foreign Trade :: Correios Support for exporters Award in the Exporting category (the prize winners in all categories are listed alongside). :: Magnesita Going International

3 Strong meat The road to Australia

Speaking of beef, Brazilian revenues from beef sales will beat records this year, according to the multinational agribusiness consultancy InformaEconomics - FNP. Brazil exported 1.045 million tons of beef and by-products worth US$ 4.75 billion between January and August, according to the Brazilian Beef Exporters Association (ABIEC). This was 10.4% and 13.8% higher, respectively, than in The Brazilian producer of beef and by-products Minerva is the first eight months of 2013. The heading for the Pacific. Minerva is on the list of the most reasons for this increase were mainly internationally active Brazilian multinationals drawn up by the the rise in Asian demand, driven Fundação Dom Cabral business school. The company announced by urbanization and the growing in its latest report that it had received the OK from its board wealth of countries like China and of directors to open a subsidiary in Australia which will join Indonesia. Political tensions also its offices in the United States, Italy, Colombia, Chile, Russia played a role as Russia stopped e and Saudi Arabia, amongst other countries. Minerva also importing beef from the United controls meatpacking and production operations in Paraguay States and Europe as a result of the — where it opened a distribution center in the first half of the Ukrainian crisis. Another factor was year — and in Uruguay where it acquired a second meatpacker, the recent suspension of the ban on also in the first half of this year. It exports to more than 100 Brazilian meat imposed for reasons countries and reported net revenues of R$ 1.656 billion in the of hygiene in May by Egypt and Iran, second quarter, 25.2% higher than in the same period of 2013. both big buyers of Brazilian beef. PICTURES: HANDOUT

REVISTAPIB.COM.BR 15 Antenna

3 Three questions for Carlos Alberto dos Santos HANDOUT: SEBRAE 1

Small companies are general competitiveness of the economy A project with the National regarded as inefficient and not as a whole. It is not enough for Confederation of Industry very productive. However, things us to have large competitive (CNI) for small companies to go do not have to be like that, says and aggressive multinationals international is beginning in nine Carlos Alberto dos Santos, the if we have great difficulty in states. Around 1,000 companies technical director of the Sebrae terms of productivity. When we will have the support of Sebrae (Brazilian Support Service for think of the national economy, and CNI in going abroad. Micro and Small Companies). we definitely need to talk about Dos Santos is an economist who small businesses as they form the What is the objective? Is it only to specializes in the sustainable majority of companies and employ export, take them to participate in development of small business and most of the working population. global value chains, or set up pro- says that the export market could duction lines abroad? encourage smaller companies to What Sebrae can do for the small Each case is different. Some are in gain an international standard. businesses? the initial phase of looking around, We have courses for them — trade fairs... Others are already Why is Sebrae supporting small and ranging from procedures and supplying Brazilian multinationals. medium-sized companies to go in- planning to export and self- Large builders with projects ternational? diagnosis of international abroad approach us because their You need to be competitive in business, to our innovation and local suppliers want to follow the global terms, not only local or technology platform, Sebraetec. international path. There is no regional, in an economy that is Most of these courses are free. set recipe. It is not only a lecture becoming increasingly more open We have an agreement with the or a course but a tailor-made and integrated. This also applies Small Business Development consultancy, part of the long-term to small businesses. A company Centers (SBDC) — the American strategy. Something in-depth may or may not operate outside version of Sebrae — on a platform that allows these companies to the country but the international for commercial intelligence. We differentiate themselves, grow and competition is here. In other have 11 states with more than become medium-sized on a path words, what is important is the 200 companies participating. that involves going international.

16 REVISTAPIB.COM.BR 1 Santos: small and globalized

2 Amazônia: silver medal Cold award- in Portugal 3 Port in Peru: Chinese winning beer for companies invest in IT from Paraná Amazônia is a Brazilian beer produced by the Germânia Three large Chinese brewery in Vinhedo, upstate information technology São Paulo, and won an corporations announced award at the international investments in research World Beer Challenge in Brazil during the held in Portugal in June. state visit by the It competed against 475 Chinese president, beers from all over the world Xi Jinping, in July: and was among the 75 top performers, winning a silver :: The search site Baidu medal in the American Style (the Chinese equivalent Amber Lager category. of Google) said it would invest R$ 120 million by 2017 in setting up a development center 2 in cooperation with 3 a Brazilian university or technology center. (Baidu has three similar units in China From the Atlantic to the Pacific and one each in the United States, Japan and Singapore.) Three companies from Paraná state — Pattac, Tucumann and Fortesolo :: The technology — will participate in running the Peruvian port of General San Martín, in giant Huawei pledged the Paracas peninsula, 250 kilometers south of Lima. The companies are to invest around R$ partners of the Spanish firm Servinoga and their consortium won the auction 200 million in an R&D organized by the Peruvian government for the concession of the port for 30 center which will focus years. In exchange, they will make investments of up to US$ 182.4 million. on cloud computing, In Brazil, the companies have won concessions for container terminals in big data, cyber security the ports of Paranaguá and Ponta do Felix — both in Paraná — the Parque and mobile apps. Nacional Marinho national park in Fernando de Noronha and Cataratas do Iguaçu park, amongst others. Servinoga — which is also part of the :: The equipment management of Paranaguá — has concessions in six ports in Galicia, Spain. maker ZTE announced its intention of forming a partnership with the telephony operator TIM to set up an R&D center to develop access networks. HANDOUT

REVISTAPIB.COM.BR 17 Antenna

Looking to the world HANDOUT/ODEBRECHT 1 In difficult times at home and internationally active of the 52 and the firm´s global numbers). abroad, Brazilian companies are Brazilian companies that took The car rental firm Localiza leads continuing to expand their presence part in this year´s survey. It was the ranking of Brazilian franchisers worldwide. The average index of followed by the steelmaker Gerdau abroad but appeared separately Brazilian-based companies that and InterCement, the latter´s due to differences in the calculation operate abroad rose from 21.3% performance boosted by the growing methodology. Localiza is also the to 22.9% between 2012 and 2013, demand from African countries. Brazilian franchiser that is present according to the Fundação Dom The fourth-placed company — in the largest number of countries Cabral business school and research the IT firm Stefanini — was also – eight in total. The Fundação Dom center (FDC), based in Nova Lima, present in the largest number of Cabral also asked the companies Minas Gerais state. This figure countries, with subsidiaries in 32 about the importance of the Brazil formed part of the FDC Ranking nations. It was followed by the brand in their international business of Brazilian Multinationals 2014, electric motors maker WEG, present and found that 58.7% said being based on the 2013 results, which in 31 countries, and the mining of Brazilian origin was a positive was announced at the end of August. giant Vale, present in 27. (The FDC factor in their global expansion. The curve has continued to rise calculated the “transnational index” However, almost half — 49.2% in the post-crisis period and the of each company using the UNCTAD — said their own company brand index has risen from 16% in 2010. criteria which take into account was a more important factor The construction group Norberto the ratio between the assets, than the Brazil brand in their Odebrecht was the most revenues and employees abroad international expansion strategy.

The Most Internationally Active The Most Internationally Active Brazilian Multinationals 2014 Brazilian Franchisers 2014 Company Index Company Index 1 CN Odebrecht 0,549 1 Localiza 0,094 2 Gerdau 0,547 2 Mundo Verde 0,036 3 InterCement 0,539 3 DepyAction 0,020 4 Stefanini 0,537 4 Chilli Beans 0,015 5 Metalfrio 0,530 5 Datelli 0,014 6 Magnesita 0,527 6 Hering 0,013 7 Marfrig 0,522 7 Giraffas 0,012 8 JBS 0,499 8 Yogoberry 0,011 9 Artecola 0,397 9 Arezzo 0,008 10 Ibope 0,390 10 Magrass Franchising 0,008 source: Fundação Dom Cabral source: Fundação Dom Cabral

18 REVISTAPIB.COM.BR 1 Road in the Andes: Odebrecht Technology in the United States... project

2 Assembling the KC-390: Embraer opened an Engineering and the interiors of the company´s executive first flight soon Technology Center in Melbourne, planes. Embraer carries out the final Florida, in September to develop assembly of its Phenom 100 and products and technologies. It will Phenom 300 jets, its main models in its initially be involved in work related to executive aviation line, in Melbourne. 3 HANDOUT/EMBRAER ... and a new plane in Brazil

In the defense area, Embraer is in the final is foreseen for this year. Meanwhile, Embraer´s assembly stage of the first prototype of the KC- Atech subsidiary has signed a contract worth 390 transport plane that can be refueled in US$ 18.5 million with the government of Indian mid-air. Work is taking place at Gavião Peixoto to supply an air traffic flow management and in upstate São Paulo. The aircraft is being built control system. India´s national aviation agency for the Brazilian Air Force (and the world market says the number of passengers, currently for military transporters) in partnership with averaging 150 million, should rise to 452 companies from the Czech Republic, Portugal million by 2020 which would make the country and Argentina. The KC-390´s inaugural flight the world´s third-largest aviation market.

Itaú´s Ace in Miami

Brazilian bank Itaú is also marking its presence in Florida along with Embraer´s aeronautical technology. Following six years in which it has sponsored the Miami Open tennis tournament, Itaú will now be the most prominent brand at the event which brings together some of the world´s top tennis players. Itaú will be the main sponsor of the tournament which will now be called the Miami Open, presented by Itaú. The next event takes place in March and April of next year. The tournament was lucky this year. Its latest winners are the leaders in the men and women´s world rankings — the Serbian Novak Djokovic and American Serena Williams. The Miami Open attracts more than 300,00o spectators and is shown in almost 200 countries.

REVISTAPIB.COM.BR 19 Art On the global circuits Modern and contemporary Brazilian art is notching up million dollar sales, being exhibited in leading museums and galleries worldwide, provoking surprise, gaining prestige and becoming more international ADRIANA SETTI, BARCELONA

orks by Brazilian and interactive installations. The artists are gain- works were seen by 423,000 people ing outstanding and were enthusiastically reviewed positions in the by the most respected newspapers world´s most in the United States and Europe, Wimportant exhibition areas, invad- including The New York Times, The ing international fairs and being Guardian and El País. While an sold for million dollar prices at enormous photo of Clark wearing auctions in London and New York. a blindfold welcomed visitors to the Lygia Clark (1920-1988) from the MoMA, a number of other Brazil- state of Minas Gerais was the main ian artists were also dazzling the attraction at the MoMA modern art Big Apple. museum in New York between May For example, Adriana Varejão and August. The Abandonment of Art from Rio de Janeiro was the high- exhibition presented 300 works by light of the Lehmann Maupin gal- the self-styled “non artist”, includ- lery from April 24 to June 21. (She ing paintings, sculptures, drawings was also among the team of con-

20 REVISTAPIB.COM.BR HANDOUT REVISTAPIB.COM.BR PAMM Miami in the at show on works 40 of one Milhazes, Mo Beatriz by th 21 Art THOMAS GRIESEL/THE MUSEUM OF MODERN ART 1 2 temporary artists catalogued in the Milhazes is one of the painters with Rio de Janeiro. As a result, estab- Vivid Memories exhibition on show the greatest potential on the interna- lished and emerging talents from the at the Fondation Cartier in Paris tional front and deserved an exhibi- Brazilian artistic scene, recognized until the end of September.) Tunga tion of this size in the United States,” for their quality and originality, have from Pernambuco state presented said American Tobias Ostrander, the provided many names to satisfy the his drawings and installations in chief curator at the PAMM. “At the constant need for renovation on the the rooms of the Luhring Augustine same time as Brazilian collectors international arts circuit which has gallery between April 19 and May 31. are becoming more active abroad, been adopting Brazil as a new hub. The Brazilian invasion of the Ameri- interest is expanding in the history The signs are that the benefit result- can circuit is not restricted to New of Brazilian art outside the country ing from the international expansion York. If you visit Miami in the sec- as the institutions try to understand is not a passing trend. Anders Pet- ond half of this year, you will have other forms of modernism and es- terson, the highly respected general the opportunity to see works by the director of ArtTactic, a abstract artist Beatriz Milhazes at London-based company the Pérez Art Museum (PAMM), a Brazil´s greater visibility that provides art con- reference point in the city that hosts has benefited a number of sultancy and research one of the most important art fairs services, wrote the on the international circuit, Art Ba- sectors, including the arts chapter on Internation- sel in Miami. The exhibition Jardim al Perception, which Botânico runs until January 11, 2015 was part of the latest and presents 40 works, including Sector Survey Research. paintings, collages and engravings thetic movements that had not pre- This was published by the Latitude spanning 25 years of her career. viously featured on the international project, a partnership to promote Milhazes, who is 54 and from scene,” he said. the international expansion of Bra- Rio de Janeiro, is the living Brazil- This is also an opportune mo- zilian art signed in 2007 between the ian artist whose works sell for the ment. The heating of the Brazilian Brazilian Contemporary Art Asso- highest price. In November 2012, economy, combined with the vis- ciation (ABACT) and the Brazilian her painting Meu Limão caused a ibility Brazil has achieved in recent Trade and Investment Promotion furor at an auction by Sotheby’s in years has benefited a number of sec- Agency (Apex-Brasil). Petterson´s Nova York. The work, showing small tors, including the arts. This combi- survey showed that 66% of interna- circles and flowers in striking colors nation of forces has allowed Brazil- tional collectors felt confident about in kaleidoscope form, was initially ian artists to take part in internation- the Brazilian art market in the com- valued at between US$ 700,000 al fairs while curators and collectors ing five years and 88% had a strong and US$ 900,000 and eventually have, at the same time, started to at- view of the quality of the art pro- sold for US$ 2.098 million. “Beatriz tend events held in São Paulo and duced in Brazil. “The ‘discovery’ of

22 REVISTAPIB.COM.BR 1 and 2 Entrance and installation at the Lygia Clark exhibition at the MoMA: 300 works were seen by 423,000 people

3 The artist in her studio: highest amount reached for a Brazilian work at an auction abroad THOMAS GRIESEL/THE MUSEUM OF MODERN ART CORTESIA DA ASSOCIAÇÃO CULTURAL 3 Brazil has totally changed my map tory and traditions. “My reference The elite troupe of modern and of the world,” said Pablo León de la points were turned upside down. I contemporary Brazilian artists are Barra, a Mexican who is the curator began to investigate the South, not not only the target of foreign cura- for Latin America of the UBS Map tors but are also part Global Art initiative of the Solomon of a market that had a R. Guggenheim Museum in New The country accounts for global turnover in 2013 York which aims to identify inno- of 47.4 billion (around vative contemporary artists abroad. a mere 1% of turnover on US$ 62.2 billion), ac- Speaking at a panel in Madrid at the the global market cording to the TEFAF beginning of the year promoted by Art Market Report 2014, the magazine ArtReview (a refer- published by Arts Eco- ence for the art world), he described nomics, a Dublin-based his surprise on finding that São Pau- only Brazil, and expanded my re- consultancy. This volume was 8% lo was a city that could be seen as search and world to latitudes in arts higher than last year and just missed the “New York of the South”, with well beyond the European-North breaking the historic record of 48 its own references and artistic his- American axis.” billion (around US$ 63 billion) regis-

ARTIST WORK INITIAL PRICE AUCTION YEAR VALUATION OBTAINED HOUSE (US$ ´000) (US$ MILLION) Lygia Clark Contra Relevo (objeto 600 to 800 2.225 Phillips, NY 2013 nº 7), 1959 Sérgio Camargo Sem Título nº 21/52, 1964 400 to 600 2.165 Sotheby´s, NY 2013 Beatriz Milhazes Meu Limão, 2000 700 to 900 2.098 Sotheby´s, NY 2012 Lygia Clark Bicho Invertebrado 1,200 to 1,800 1.865 Phillips, NY 2013 (sculpture), 1960 Adriana Varejão Parede com Incisões a la 320.2 to 480.3 1.786 Christie´s, 2011 Fontana, 2001 London Sérgio Camargo Relevo 289, 1970 700 to 900 1.325 Sotheby´s, NY 2013 Lygia Clark Bicho-em-si-md (nº 4) 400 to 600 1.169 Sotheby´s, NY 2014 (sculpture), 1960

REVISTAPIB.COM.BR 23 Art

tered in 2007, the year before the global economic crisis broke out. The consultancy, headed by Claire McAndrew, an economist who specializes in arts, an- tique and collections, said the growth was driven mainly by the amounts obtained from sales of works of modern art (postwar to the 1970s) and contemporary art that had a turnover of 4.9 billion (US$ 6.43 billion) in 2013 (11% more than the previous year). The United States was responsible for 38% of the transactions that brought together works of art from all over the world (with most deals carried out in New York), followed by China with 24%. Brazil accounts for a mere 1% of the global turnover, considering the amounts obtained by Brazilian artists abroad and sales from exports by other local artists. How- ever, the trend is pointing upwards in both areas. In May of last year, the painting Contra Relevo (Objeto No 7), by Lygia Clark, was

sold for US$ 2.225 mil- CORTESIA DO ESTÚDIO ARTISTA lion in the New York auc- 1 tion house Phillips. The buyer´s Varejão and Sérgio Camargo (1930- in art works, more than double the identity was not revealed, as is the 1990) – see box on page 26 – easily volume registered in 2012 (US$ 51.1 practice in this market. It was the surpassed expectations of the values million), according to Apex-Brasil. highest amount ever paid for a Bra- at auctions abroad in recent years. Some of these paintings, sculptures, zilian work at an auction abroad at The appreciation of Brazilian photographs and installations went that time. Three months later, her artists is not only measured in the to institutions like the Guggenheim painting Superfície Modulada No 4 high figures achieved by some in- and MoMA in New York, the Art was sold for R$ 5.3 million (about dividuals. It can also be seen in the Gallery of Toronto, the Tate Modern US$ 2.36 million) at the Bolsa de spectacular growth of exports of in London and the Centre Georges Arte in São Paulo. Among the other works of art, not only by established Pompidou and Fondation Cartier in Brazilians who have broken through talents but emerging names. In 2013, Paris. Others were bought for rea- the million dollar mark, Adriana Brazil exported US$ 127.4 million sons other than love of culture, i.e.

24 REVISTAPIB.COM.BR 1 Lezart by Tunga 2 Polvo Portraits IV, at the Houston polyptych by Adriana Museum of Fine Arts Varejão at the Galpão exhibition in 2009 in São Paulo CORTESIA DA GALERIA FORTES VILAÇA 2

profit. “Our calculation of the current re- to 6 this year in the Bienal pavilion, The higher number of deals also turn is now more optimistic than the registered an increase of around boosted funds investing in works of initial rate of 80% and we expect a 35% in sales volume over last year, art. Brazil Golden Art was set up in return of around 150%, with some from R$ 99 million to around R$ 157 2010 and was a pioneer. It is run by works rising to 300%,” said Reis. million. the Brasil Plural bank, based in São “Brazilian art has appreciated con- In 2013, 457 works changed Paulo, with offices in Rio de Janeiro, sistently in recent years due to the hands during the event, a figure Porto Alegre and New York. It raised exceptional quality of its produc- that rose to 780 this year. It is the US$ 20 million from 70 investors tion that is recognized internation- biggest art fair in Latin America and invested in 630 works by con- ally. This makes it a completely safe and a record 136 galleries took part, temporary Brazilian artists. It was investment and it is a far cry from including 58 foreign outlets from 17 founded by Heitor Reis, ex-director being a bubble.” countries. This compares with the of the Museu de Arte Moderna da The global recognition is the re- first event held in 2001 when there Bahia, and three well-known fig- was only one foreign ures in the financial market (Ro- participant among the dolfo Riechert and André Schwartz, The prestige abroad 41 exhibitors. “Brazil partners in Banco Brasil Plural, and reflects a more professional has been making ef- Raphael Robalinho of RR Capital). forts to become more The collection includes items by il- domestic market professional and part lustrious names like Adriana Vare- of the international cir- jão and Tunga, as well as emerging cuit of international art young talent like Marina Rheingantz fairs. The SP-Arte´s rise and Henrique Oliveira. The works flection of a domestic market that is confirms that we are on the right are stored in museum-like technical becoming increasingly diversified path,” said Luisa Strina, the owner conditions in a specialist company and professional. The galleries on of the oldest and most established in São Paulo. Although there is no the Rio-São Paulo axis have expand- art gallery in Brazil that bears her plan to set up a BGA museum, the ed and organized themselves in re- name. works are shown regularly at exhibi- cent years. The Brazilian Contempo- The ArtRio event followed the tions held in Brazilian institutions. rary Art Association (ABACT) was SP-Arte exhibition and marked its BGA is starting a “divestment” founded in 2007 with eight mem- fourth edition between September process in 2014 in which it will sell bers and now has 52 galleries rep- 11 and 14 with a record participa- its assets to make a profit. For the resenting 1,000 artists, and accounts tion of 110 galleries, including 51 time being, offers are only being for 90% of national sales. Half these from 13 other countries. Works by made to quota holders in the fund. companies have been founded since 2,000 artists filled five warehouses Returns on investment will only be 2000. The SP-Arte event, that took at the Mauá Pier. “The Brazilian seen when the process has ended. place for the 10th time from April 2 economy has done very well in re-

REVISTAPIB.COM.BR 25 Art

cent years and this is reflected in the Paulo exhibition runs until Decem- magazine and featured in an inter- art segment,” said Brenda Valanasi, ber 7 and is regarded as one of the view with Charles Esche, the British one of the ArtRio partners. “We most important in the world. It is no curator of the São Paulo Bienal. always count on important talents coincidence that Brazil was featured Spain was the foreign country but in recent years they have been in the September issue of ArtReview with the greatest weight at the Ar- able to intensify their resident pro- 1 grams in galleries and institutions in other countries, had the chance to exhibit in foreign museums and their art has been publicized in different medias.” ArtRio occurred simultaneously at the 31st Bienal exhibition in São Paulo and took advantage of the presence in Bra- zil of curators and collectors from various parts of the world. The São

THE MOST HIGHLY PRICED The contemporary Brazilian artists who are proving to be a success abroad

ADRIANA VAREJÃO (adrianavarejao.net) Born in 1964 in Rio de Janeiro where she still lives. She likes to work with tiles and bricks and falls back on Brazil´s colonial period as one of her sources of inspiration. Besides paintings, she also produces sculptures, photographs and installations. She has wor\ks in the Tate Modern in Lon- when Meu Limão went for US$ 2.098 million. She is the don and the Fundación La Caixa in Barcelona, as well as main attraction at the Pérez Art Museum Miami in the her own pavilion in the Instituto Inhotim in Brumadinho. second half of 2014. She also has works on display at the Her most valuable work is Parede com Incisões a la Fon- MoMA in New York. tana, a painting sold for US$ 1.786 million at Christie’s in London in 2011. In 2014, she was highlighted at the JAC LEIRNER Lehmann Maupin gallery in New York and was one of the She comes from an artistic family and was born in artists featured in the Vivid Memories exhibition at the São Paulo in 1961 where she maintains her headquar- Fondation Cartier in Paris. ters. She has an irreverent, acid style and uses diverse materials collected in everyday life (from cigarette packs BEATRIZ MILHAZES to bank notes that she sometimes takes years to convert Born in Rio de Janeiro in 1960 where she still lives. into works of art). In 2013, her work Names, made with Her works draw attention by their vivid colors that make garbage bags, was bought for US$ 52,500 at an auction a reference to modernism, pop art and elements of held by Phillips in New York. She has works on display at Brazilian culture. She uses wood engraving, silkscreen the MoMA, also in the Big Apple. printing and other techniques to create her canvases. In 2013, her work O Casamento was sold for US$ 850,000 OS GÊMEOS (osgemeos.com.br) at an auction at Christie’s but the record was set in 2012 The “Gêmeos”, i.e. twins, from São Paulo, Gustavo

26 REVISTAPIB.COM.BR 1 Beatriz Milhazes: 2 Adriana Varejão: 3 Tunga: Meu Limão was exceeding sculptor, auctioned for auctioneers´ illustrator and a record US$ expectations performing 2.098 million abroad artist tRio event, with 10 representatives. Eight galleries from Barcelona (one ment of Catalonia. “The Brazilian est in art,” said Jordi Mayoral, the of Europe´s liveliest cities from the market is strategic for us, both for owner of an eponymous gallery. His point of view of contemporary art) its economic potential but also be- company, located in the modern- took part, paid for by the govern- cause of Brazilians´ increasing inter- ist Eixample district, (Barcelona´s 2 3

and Otávio Pandolfo, were born in 1974 and are the 2014 and Muniz was the second best performing Brazil- most famous and respected graffiti artists in Brazil. ian contemporary artist in terms of auctions in 2013. Six Their large murals draw attention in the streets of São of his works were sold in auctions in London and New Paulo, Los Angeles, New York, Boston and Vancouver, York for a total of US$ 372,000. among other metropolitan areas, and also feature on the planes of the GOL airline. In 2013, their painting TUNGA (tungaoficial.com.br) Glass House was auctioned for US$ 149,000 by Phillips Tunga usually says he was born in Palmares in in New York. upstate Pernambuco and in Rio de Janeiro in 1952 at the same time. He is a sculptor, illustrator and performing VIK MUNIZ (vikmuniz.net) actor and is known for using various kinds of material, He was born in São Paulo in 1961 and has lived in such as magnets, iron and lead and also for the large New York since 1983. He is one of the best known con- dimensions of his works. He even withdrew from the temporary artists in Brazil. His creations (which include São Paulo Bienal event in 2014 because the organizers portraits of celebrities like Pelé and the singer Seu Jorge) did not meet his demands for space to build his gigantic are famous for their pointed effect made from unusual installation. In 2014, Tunga exhibited his works at the materials ranging from chocolate to waste. His works Luhring Augustine gallery in New York. His work Dar are photographed when they are finished. They were Table with Light was sold for US$ 43,750 at an auction shown at the New York gallery Luhring Augustine in at Sotheby’s in New York in 2013. PICTURES: HANDOUT/MURILLO TINOCO

REVISTAPIB.COM.BR 27 Art HANDOUT 1 equivalent of New York´s Chelsea) Halley, Italian Massimo Vitali and sult, 40% of the deals made by Bra- took works to Rio signed by stel- the trendy young Russian Oleg Dou. zilian galleries occur during these lar names like Salvador Dalí, Pablo “Rio de Janeiro has an artistic tradi- events, in Brazil and abroad. For this Picasso, Joan Miró, Miquel Barceló tion and a unique sensitivity which reason, as well as attracting foreign- and Antoni Tàpies, amongst others. is why we believe it will shortly con- ers to the Brazilian events, it is also “ArtRio is one of the most inter- essential to take part in esting fairs in Latin America and is the international cir- also an increasingly larger window The international cuit to reach the global to reach Brazilian collectors,” added expansion project has 49 market. Taking emerg- Joan de Muga, owner of Joan Prats, ing Brazilian galleries one of Barcelona´s most respected galleries under its wings to international fairs is galleries which took the work of one of the focus points five artists to Brazil, including pho- of the Latitude project. tographs by the Brazilian Caio Rei- This is a platform to go sewitz. “This is the third time we vert itself into a genuine center of at- international that started with five have taken part in ArtRio and are traction for the international artistic participant companies and now has aware that it could grow even more,” community.” 49 galleries under its wings. In 2013, said Carlos Duran Baste, from the Art fairs bring together the pub- 13 of them were present at the Art Senda gallery that exhibited works lic, artists, curators, collectors and Basel event held in Miami, the most by artists like the American Peter galleries in the same place. As a re- important international fair for the

FROM THE USEFUL TO THE AGREEABLE WORKS OF art is the third most popular “passion aims to map how people with US$ 1 million or more investments” category. The World Wealth Report in disposable assets use their respective fortunes. published in 2013 by the French multinational These reserves reached a combined maximum, consultancy Capgemini assesses the feelings of historic total of US$ 46.2 trillion in 2012. The study high-net-worth individuals ( HNWIs). The study shows that works of art are becoming significant

28 REVISTAPIB.COM.BR 1 10th edition 2 ArtRio: 110 of SP-Arte: galleries present, 35% increase in including 51 sales volume from abroad

houses that work mainly with older pieces made before the 1970s. These have been highly valued by their history and are, therefore, theoretically more important in terms of being public assets,” said Mônica Novaes Esmanhotto, Latitude´s executive manager. “The problem with the decree is that the criteria for making evaluations and procedures are still unclear. This means that some collectors reacted initially by hesi- tating over whether to lend works for exhibitions in public places.” The fear owners of important items have is that the visibility will HANDOUT/ MURILLO TINOCO 2 draw the IBRAM´s attention and lead to a temporary freezing of the Brazilian galleries abroad. The Arco to monitor items declared to be of painting or sculpture. The decrees event in Madrid, another essential “public interest”. This means that states that preference should be part of the international circuit, as soon as a committee elected by given to national museums should drew 12. the institute raises a certain work there be a legal sale or auction of the On the other hand, the usual sus- of art to this category, the item in works tracked by IBRAM. However, pects remain the main obstacles to public museums rarely the faster growth of this market: the have an acquisition high tax burden, customs barriers Decree declaring art works plan and/or the funds and bureaucracy. In June, the Brit- as items of public interest to pay the market price. ish magazine The Economist pub- Until there is greater lished a report under the headline has raised doubts clarity over the rules Tropical Growth, on a government of the game, works by measure that has made Brazilian famous Brazilian art- galleries and collectors lose sleep. ists like Tarcila and In October 2013, president Dilma question cannot be restored, loaned Portinari run the risk of going back Rousseff signed decree number (to an exhibition, for example) or to the private rooms of the Brazil- 8124/2013 that regulated law 11 904 moved without prior authorization. ian upper class. This will result in (on how museums should be run). “Above all, the measure affects the an outcome that goes totally against Under this measure, the Brazilian secondary market, that covers gal- the real public interest and will put Museums Institute (IBRAM) has leries focused on retail, and auction a brake on the international expan-

parts of the investment portfolios of the HNWIs, production to the third most popular place after particularly in the emerging countries, including jewelry/watches and luxury articles. “Not only can Brazil. Buying paintings, sculptures and instal- a well chosen piece of art act as a hedge against lations already accounts for 16.9% of what are inflation, it has the potential to outperform over known as Passion Investments. This raised artistic the long-term,” the report stated.

REVISTAPIB.COM.BR 29 Interview Donna Hrinak HANDOUT

30 REVISTAPIB.COM.BR Brazil appears on Boeing´s route The aerospace giant under the command of former American ambassador Donna Hrinak is investing in research in biofuels and materials and is pinning its hopes on partnerships with Embraer and universities NELY CAIXETA AND ARMANDO MENDES

oeing is an old acquain- three months ago. The company is Brazil as a platform for the world. tance of Brazilian pi- also pledged to work with univer- There is no way of exporting from lots and passengers. sities and maintain a partnership Brazil anymore as the production The first encounter with Embraer aimed at making the costs are much higher here,” she occurred in September use of biofuels for aviation commer- said in fluent Portuguese: “I don´t B1932 with the arrival of a group of cially viable. Hrinak is confident need to say what needs to be done. 14 F4B-4 fighter biplanes the fed- about this cooperation opportunity You know yourselves!” eral government had ordered to and is straight to the point when the strengthen its arsenal to combat the Your arrival marks the advance of revolt by São Paulo state. Twenty- Boeing´s operations in Brazil. From eight years later, the American being a mere supplier of planes, the company also began marking its We are showing company now has a local represen- presence in the domestic commer- the viability tation and is signing partnerships cial aviation sector, with the sale with Embraer and other companies. of a 707 model to Varig. Brazil was of Brazilian Are the prospects of developing the entering the era of long-distance jet biofuels for Brazilian Aerospatiale market behind flights. aviation in a this change of course? For decades the relationship had We have a history in Brazil. We a commercial bias until 2011, when project with Gol sold our first commercial plane Boeing put Brazil on its route for the here in 1960. Now we look at Bra- development of new technologies. zil with a different prospective The company put a heavyweight and the base of this new relation- name in charge of the operation: subject is Brazil´s low competitive- ship is no longer transactional but Donna Hrinak, the former US am- ness on the global economy. “Since research, technology and innova- bassador to Brazil between 2000 my last experience here in Brazil, I tion, science. However, you can´t do and 2004. have spoken to a number of multi- something like that from one day Under her command, Boeing national companies, not only Amer- to the next. You need to invest in now has a research center in São icans, which said their idea, 12 or relations and research. A scientific José dos Campos (SP) that opened 14 years ago, had been to set up in study requires a lot of time, par-

REVISTAPIB.COM.BR 31 Interview Donna Hrinak

ticularly when the aim is to make How many students from the Science various raw materials are available the results commercially viable. without Frontier´s program have re- according to the time of year. A physical presence is essential to ceived support from Boeing? move forward in this area and this Seventy-two to date, including What weighs in the balance in favor is exactly what we are doing with the 2014 class which has 25 stu- of these two states? What factors has the creation of a research technol- dents. They all attend universities Boeing taken into account to make ogy center in São José dos Campos in the US for a year. During their this decision? and partnerships with universities, college breaks, they carry out in- There are still a series of ques- Embraer and other local compa- ternships for four weeks at Boeing tions to be sorted out before we nies. Boeing is a company based on in Seattle, where our commer- make the final decision. There are technology and I believe there are cial unit is based, and company´s pre-requisites needed to ensure opportunities here. premises in other cities. This year´s the commercial viability of a new graduation took place at the Ken- industry that is beginning to arise: Has some particularly experiment nedy Space Center, in Florida. We the regulatory system, proper tax carried out here in Brazil awaken have mentors who work with the burden, companies ready to invest Boeing´s Interest? Or could we say academics throughout the teaching in the business. This includes Petro- was the combination of projects, i.e., bras which is also carrying out re- the volume of researches in a particu- search in the biofuels area. lar segment? Brazil has a lot to If I were to highlight one area, Are motor and fuel manufacturers it would be biofuels. Brazil´s expe- contribute to the also taking part in the research run rience with ethanol and biodiesel commercial aviation by Boeing and Embraer? shows Brazil´s importance in this industry that wants General Electric, that produces area. At the same time, the commer- turbines, took part in the initial cial aviation industry has assumed a to stabilize its carbon stage. What we are doing together responsibility over greenhouse gas emissions by 2020 with our client Gol, which is the effect emissions and is committed biggest client in Brazil and has one to stabilize its carbon dioxide emis- of the largest fleets of 737s in the sions from 2020. I would say that world, are flights using sustainable this new view of Brazil coincides year to ensure that the programs biofuels mixed with kerosene at a with the industry´s obligations and followed in the universities are rel- ratio of 50%. The purpose of these interests, in biofuel for aviation led evant to the industry. They work flights is to show that this is a prov- by Boeing. Besides the biofuels, on concrete projects, such as the en fuel that has been experimented other notable works are being car- biofuels. and that both the 737 and the F-18 ried out here, particularly the devel- fighter can fly using biofuel. opment of advanced materials. We Two years ago, Boeing began stud- knew about the research carried ies in partnership with Embraer to Are other companies testing biofuels out at the University of São Paulo develop biofuels for aviation. What besides Gol? and the Technological Research stage is this project at? Two years ago, Aeromexico, with Institute (IPT) but the seriousness Two states are particularly in- our support, accepted the proposal to of the aeronautic department at the terested in becoming industrial bring a delegation to Brazil that took Federal University of Minas Gerais, centers for aviation biofuel, Minas part in the Rio+20. Other companies, for example, came as a surprise to Gerais and Rio Grande do Sul. As such as Alaska Airlines, are already us. Since we began a partnership this is an electoral year, discussions using biofuels in regular flights. with the federal government´s Sci- are moving at a slower pace. How- ence without Frontier´s program ever the research programs with What raw materials for the produc- in 2011, we have seen that most Embraer are continuing and we are tion of biofuels are being analyzed? of the registered engineering and making progress. One advantage of Is sugar cane the favorite? aerospace students were from the Brazil is that the country has a va- It is one of them. We are look- Federal University of Minas Gerais. riety of sources and climates and ing at other sources like eucalyp-

32 REVISTAPIB.COM.BR

tus, the macaúba palm and even they modernized the energy sector tion, are you continuing to take part cooking oil. The students carried and the educational, tax, political, in Brazil´s defense programs? out an experiment last year using systems etc. during this period. We have some projects in coop- biodegradable waste. Other countries may not always eration with Embraer. The biggest give good examples but there could is the development of the KC-390 Do investments in research and tech- be good practices to be brought and transporter. We are also working nology such those of Boeing, help shaped according to Brazilian style. on the integration of bombs and encourage and qualify small and arms we manufacture to the Super medium sized suppliers, including Could Embraer suppliers supply Boe- Tucano plane, both for the United for the international market. Do you ing? States Air Force and other clients. have any examples here? We have taken some to visit our This is exactly our and Embraer´s units in the US and to other com- What is the outlook for the Brazilian desire which is that Embraer´s sup- panies in the sector. The problem is market in terms of commercial avia- pliers should also become suppliers scale. For example, the Boeing plant tion? to other companies. However, this In Everett, Washington state, is the Our forecast points to Latin is also a great frustration for me. biggest in the world and is where we America needing 3,000 planes in We have more than 60 suppliers in the coming 20 years — more than Mexico, with whom we spent more 40% in Brazil alone. That corre- than US$ 600 million a year. Yet we sponds to around US$ 340 billion. do not have a single one here. Latin America will need 3,000 There is a lot of expectation in Brazil Why? planes in the over regional aviation as the federal The production costs are very government intends encouraging the high in Brazil – 23% higher than in coming 20 years, building of smaller airports in medi- the US. Brazil is the eighth-largest of which 40% um-sized cities. What is Boeing main economy in the world but it is in trump card? 57th place in the global competitive are for Brazil The 737 is our smallest plane and ranking. It even dropped one place its capacity depends on the configu- this year... I think this is frustrating ration. Gol is working with a ver- for all the multinational companies sion that carries up to 177 passen- that operate here and, above all, for produce the 787, 777 and 767 tanker gers. Obviously we can also attend the Brazilian companies, the Latin models. We also have a unit in Rent- a smaller market but it is precisely multinationals, that would like to on that delivers 42 737 planes every because we do not compete with have higher profile in the world. month, a figure that should soon Embraer that we can be partners. jump to 46. This means that a Boe- We work above with 125 plus seats This is a permanent debate in Brazil. ing supplier needs to produce to this per plane whereas their planes are With your experience of Brazil and scale, without even talking about more or less at this figure. abroad, how would you suggest un- the quality certification required. ravelling this knot? Where would you We usually advise candidates not to Do you believe in the growth of local start? think of becoming a direct supplier regional aviation? I was studying the situation of to Boeing but to work for one of our I have no doubt about It. Brazil- Boeing in Mexico and my attention suppliers. This was why we made a ians are swapping buses for planes was drawn to the political outlook, point of introducing some Embraer on a growing scale. The highway particularly the Pact for Mexico partners to American companies transport system here is among the that was signed in December 2012. that work with us. best in the world but I do not think The political parties agreed to make people who change the bus for the a number of reforms during the ad- Brazilian government overlooked the plane are going back to the bus. ministration of President Enrique Boeing F/A18 and chose the Swedish The idea is not to have any more Peña Nieto who had just taken of- Gripen fighters to modernize the Bra- regional highway stations but re- fice. The Pact only lasted a year but zilian Air Force. Despite this frustra- gional airports.

REVISTAPIB.COM.BR 33 Cover

That’s what magical realism is With a vision of the future, Colombia attracts investments and creates opportunities for Brazilian companies MARCO ANTONIO DE REZENDE, BOGOTÁ

t the steel mill not clusively to companies with annual too far away from revenues in excess of 100 million the historical Bridge dollars. of Boyacá, where Readers may already be wary, Simón Bolivar fought but there’s no harm in asking: what Athe decisive battle for the indepen- do these companies all have in com- dence of Colombia in 1819, workers mon? They are all Brazilian: since graft around the clock, 24 hours a 2007, Votorantim Siderurgia owns day, seven days a week, to produce Acerias Paz del Rio, in Boyacá. The 450k tons of steel a year, almost a Colombian subsidiary of the con- other Brazilian companies that have quarter of the expected national tractor Odebrecht is constructing, run to Colombia in recent years to consumption in 2014. 425km to and already operates as conces- surf an unprecedented wave of the North of Bogota, in the region prosperity. At the ar- of Barrancabermeja, a large trans- rival lounge of flights national construction firm is racing The country from which arriving from Brazil against the clock to deliver, by 2017, at the modern airport a 528km double-lane stretch of Ruta investors and tourists fled of Eldorado, in Bogota, del Sol, the highway that transports has changed very quickly it is commonplace to almost 70% of Colombian GDP to see drivers holding up the ports of Barranquilla and Carta- signs waiting for execu- gena, in the Caribbean. At a modern tives of Brazilian com- building in the financial heart of the sionaire, Ruta del Sol – the highway panies such as Petrobrás, Gerdau, capital, one of the world’s largest fi- that is Colombia’s biggest public Natura, Artecola and many others. nancial institutions is also present, construction work right now. And There are already over 50 Brazilian providing customized services ex- Banco Itaú BBA has teamed up with players (more on this later) produc-

34 REVISTAPIB.COM.BR Medellín's rail network: easy transit

other cities no longer obligatorily request armor-plated vehicles and safety guards. A peace accord with the guerrilla, on the brink of being signed after tough negotiations in Havana, and improved safety conditions in general will likely put an end to talk of violence and bring the good things to the surface. Indeed, Colombia has been garnering a growing reputation of solid economic policy, has carried out and continues to carry out necessary reforms in practically all areas and is cementing its status as one of the most thriving econo- mies in Latin America. The country has been growing at almost 5% p.a. since 2010 (6.7% in the first quarter of 2014), and 2013 annual CPI inflation was the lowest in the last 60 years at 1.94%. To the displea- sure of their Argentine neighbors, in the next two years Colombia is expected to become the third largest Latin American economy in size, after Brazil and Mexico, knocking

DIVULGAÇÃO/ AGENCIA DE COOPERACIÓN E INVERSIÓN MEDELLÍN Kirchner and co. off the podium. ing in the country, constructing stra- was caught in the crossfire of the Unemployment, which re- tegic infrastructure works or pres- drug cartels and the civil war, from mained stuck at high levels for ent via franchises. where foreign investment and decades — totaling 12.7% in 2010 — They are joining multinationals has been falling for 48 from all over the world, seduced by straight months and is the opportunities in a territory the Schooling: Colombia, with now approaching 8%. size of Mato Grosso and Rondônia A read of the newspa- together, with 48 million inhabit- 9.4 years, is approaching pers on a single day in ants, right in the heart of the conti- Chile, with 9.7 September is enough nent and with escape routes to the to glean a series of Atlantic and the Pacific. Last year, positive news reports. foreign direct investment in Co- Created two years ago, lombia totaled 16 billion dollars, 10 tourists fled like the devil from the the law of PPPs, or APPs in Co- times more than in 2003 according cross, has changed its look and atti- lombia – meaning Public-Private to the Colombian Central Bank. tude in a very short period. Foreign Partnerships – has already led to The country that until recently executives working in Bogota and the concession of nine new high-

REVISTAPIB.COM.BR 35 Cover MARCO ANTONIO DE REZENDE 1 2 ways of the so-called 4G (or fourth and broad access to markets repre- the factory in the lands of a bucolic generation) group, and there are an- sent more business opportunities for farm, where cattle still graze. From other 251 APPs underway in sectors the Brazilian companies that joined the room of general manager James such as urban transport, waste col- those who discovered the Colom- Posadas you can see a pack of horses. lection, health, airports, water and bian gravy train before. Take Mar- The partnership between Mar- sanitation, as well as another 178 copolo, which arrived in 1999. The copolo and Fanalco gained traction in approval phase. Colombia, with city where Brazil’s presence is most when Bogota City Hall decided to 9.4 years of schooling on average, obvious is the capital city, Bogota. build the Transmillenium bus net- is reaching Chile, the Latin Ameri- All you have to do is look up to see work at the end of the 1990s. “Buses can leader with 9.7 years (Brazil is the red articulated buses running aren’t an expensive product, but the tied with the Dominican Republic the segregated lines of the Transmil- freight is”, says company CEO José at 7.2 years). By 2015, the country lenium system, the local BRT system Rubens de la Rosa. “It isn’t easy to will reach the target of producing 1 inspired on the Curitiba model, cre- move a large product — 13 meters million barrels of oil per day. And in ated by Jayme Lerner: almost all of in length by 2.55m by 3m in height 10 years, commercial aviation grew — via the Amazon rain- 250%, from 12.1 million to 28.6 mil- Inspired on the BRT of forest or the Andean lion passengers in 2013. cordilleras”. To explore “We have healthy macroeconom- Curitiba, the Transmillenium the opportunities of the ic indicators and major infrastruc- bus makes Bogota breathe Bogota mobility project ture works underway”, said Cecília and the market of the Alvarez, heads of one of the 16 min- neighboring countries, istries (Trade, Industry and Tour- it decided to produce in ism) in the Colombian government. them are produced by Superpolo, Colombia. 2013 saw the production “But we also offer investors the ben- the local name of the joint venture of 2,100 buses, 1,200 of which for the efits of 14 free trade accords already between Brazil’s Marcopolo and collective transport system of the signed and that guarantee products Colombia’s Fanalco. The bi-national capital of Panama, called Metrobus. made in Colombia access to a market bus bodies are assembled at a plant In addition to Brazil and Colom- of over 1.5 billion people.” (see pages in Cota, in Greater Bogota, em- bia, Marcopolo makes buses in Ar- 44 and 45 for interview with minister ploying 1,500 workers in an area of gentina, Mexico, South Africa, Egypt, and tables with economic indicators). 77,000m2. The rapid industrial and India, China, Australia and the US. Good macroeconomic indicators urban expansion of Bogota planted In terms of volume, according to

36 REVISTAPIB.COM.BR 1 Marcopolo plant: heart of Transmilênio

2 Transmillenium bus: city with fewer cars

3 Pedestrian street: the pleasant Bogota HANDOUT SUPERPOLO SAS DIVULGAÇÃO 3 de la Rosa, Colombia is already in president Álvaro Uribe plus the first of some of the country’s largest com- third place alongside Argentina term-of-office of Juan Manuel San- panies, including the biggest bank and Mexico (after Brazil and India). tos, recently sworn into his second Bancolombia, and the largest food Around one sixth of the company’s term —, the Colombian government company Nutresa. The city’s GDP revenues in 2013, of 3.7 billion reais, has a clear modernization target. is a bit higher than national GDP in came from the international opera- “The sectors based on innovation are relative terms. The city is proud to tion (280 million reais in Colombia). a symbol of our vision of the future, be the only one in Colombia with a The flagship product of Superpolo is of our bet on greater development permanent plan of science, technol- the triple articulated bus Gran Viale and of our ambition to compete on ogy and innovation, aimed at creat- BRT, measuring 21 meters in length equal terms in international mar- ing the conditions for Medellin to and with capacity for 145 passengers, kets”, as per the 2010-2014 National house the largest technological com- used on the exclusive corridors of Development Plan. plex on the continent by 2023. the Transmillenium. The system is Innovation has become a sort of The task of engineer Felipe efficient: it allows a bus parked at national hashtag, almost a religion. Hoyos is strategically proportional the bus stop to be overtaken, guar- to the name of the post anteeing fluidity — a blessing in the Innovation has become a that was tailor-made congested city of Bogota. The traf- created for him: vice- fic of cars is so intense that there is kind of national hashtag, mayor of IT, Economic a 50% alternate day traffic system almost a religion Development, Inter- during rush hours, depending on nationalization and whether your car plate ends in an Public-Private Partner- even or an odd number. ships. “Industry once What else could attract a Brazil- The best place to witness the new represented 30% of our economy, ian investor to Colombia? For the cult is the beautiful and surprising but now it’s less than 18%”, Hoyos time being, oil, mining and tradi- Medellin, with 3.7 million inhabit- told PIB. “In a joint work of the gov- tional sectors such as manufactur- ants in the metropolitan area. It is ernment, universities and private- ing and transport account for the the second largest city after Bogota sector companies, we identified in bulk of GDP. But as well as reaping and capital of the state of Antio- the sector of knowledge a path for the rewards of the administrative quia, but up until the 1990s it was our development”. continuity of the last 12 years — a only famous for being the home of There are 130,000 university stu- period covering the two terms of ex- Pablo Escobar. Medellin is the HQ dents and 12 universities in Medel-

REVISTAPIB.COM.BR 37 Cover DIVULGAÇÃO/ AGENCIA DE COOPERACIÓN E INVERSIÓN MEDELLÍN 1 2

lin. The best known is the University signals the financial paths, offers chart on page 40) is rooted in the of Antioquia (Colombia´s version of specific courses in coaching pro- strong partnership between the city Brazil´s USP, or São Paulo Univer- grams and monitors until the pre- hall, the academy and the commer- sity). Part of the vision of the future operational phase but does not get cial association. This environment of the city is born at the university. directly involved. The future en- spawned another idea to boost the In a partnership with the city hall, trepreneur must use his/her own city’s rebirth: the stimulus to busi- it created the Park of Entrepreneur- means to get the project off the ness clusters. They are groups of ialism, or Park E, to cultivate entre- companies from the preneurialism and support start-ups. same sector that share Many of the business opportunities City Hall, universities their sustainable ini- are identified by students during tiatives to increase the their academic studies. Afterwards, and companies work competitiveness and in order to create a company with on turnaround revenues of their busi- the support of the program, all you nesses. Five were iden- need is a diploma and an idea. At the tified and created since modern, clean HQ of Park E, a small, 2007: energy, construc- modern building in downtown Me- ground. A common factor among all tion, textiles, apparel production, dellin, the doors are always open the projects is the high added value design and fashion, tourism, fairs and a consultant is always available of the services or products created and conventions and, finally, medi- for the first interview. If the idea there, which in general are based on cine and odontology (Medellin makes sense and is approved by a the intensive use of IT. Of the 293 plays in Colombia and in neighbor- technical committee, the future en- projects, one is a flight simulator for ing countries the same role that São trepreneur receives a workstation small aircraft, based on the gradu- Paulo has in Brazil as a receiver of and works alongside other talented ation thesis of the project’s creator. so-called medical tourism). aspiring youngsters. Another 37 are in incubation phase. The theme of innovation mo- Park E helps the business plan, The turnaround at Medellin (see bilizes Medellin like street parties

38 REVISTAPIB.COM.BR MARCO ANTONIO DE REZENDE MARCO ANTONIO DE REZENDE 3 mobilize Salvador, in Bahia. At the cupies three buildings of excellent and Chile, but is accelerating its in- start of September, 2,700 people architecture covered by ivy, one of ternationalization in the region via representing 400 companies and which is exclusively the global back Medellin. “We didn’t come just be- public and academic institutions office of Hewlett Packard (HP). In cause the country has an open mar- joined up at a festive event to sign a the others, at colored and transpar- ket”, said Carlos Maurício Ferreira, document called Grande Pacto Me- ent open spaces reminiscent of the general manager for Latin America. dellinnovation, or the Great Medel- global HQs of Google, there are 45 “We came due to the country’s vision, lin Innovation Pact. The objective: the vision of the city de- to ensure that 1% of the region’s veloped by the Colom- GDP is invested in activities linked “We are here due to bians”. Inaugurated in to technology and innovation. The May in the building of most visible result of this enthusi- Colombian’s vision of what Ruta N, the Colombian asm is in another initiative, the so- a country and city mean” Algar Tech already pro- called Corporación Ruta N, a non- vides IT infrastructure profit entity better known as Ruta N and business software (the “n” is the exponential symbol), services to four mul- a city hall partnership with the local companies, including a start-up of tinational clients — one Brazilian public utility concessionaire EPM young engineers ready to assemble and three US. In the 45-person team, (water, sewage, gas and energy), a network of nano-satellites and the only 2 are Brazilians. “We are global inspired on the pioneering district Brazilian company Algar Tech. 22@Barcelona, in Spain. In short, it An IT company of the Algar is dedicated to receiving know-how Group, from Uberlândia (Minas and technology-intensive compa- Gerais), Algar Tech makes around 1 Route N 2 Ferreira, 3 TOTVS nies, receiving them in the landing 500 million reais in annual revenues. in Medellin: from Algar in Bogota: phase in the city. Installed next to It was already present outside of the force of Tech: “Local follow the the University of Antioquia, it oc- Brazil with subsidiaries in Argentina a vision company” client

REVISTAPIB.COM.BR 39 Cover

suppliers”, says Ferreira. “But we want to be a local company in each place”. Another two Brazilian IT and outsourcing companies are in Co- lombia, the giants Stefanini and TOTVS. The fourth most interna- tionalized Brazilian company, as per the Fundação Dom Cabral ranking, Stefanini operates in 33 countries and posted 2013 revenues of 2.11 billion reais, of which 40% abroad and 9% in Latin America (the company doesn’t disclose the per country breakdown). Its core business is management of IT applications and infrastructure for clients. In Colom- bia since 2011, the local Stefanini Strong private of countries and has grew 38% in 2013 and expects to built two solid Latin grow over 30% this year. “There are initiative: ban on American hubs in Ar- opportunities to increase presence state intervention gentina and Mexico, in large banks and strengthen the with almost 300 clients services that we provide to Colom- each. “During times of bian telecom operators”, said Mar- Brazilian GDP growth celo Ciasca, Latin American CEO. for business management systems, of 0.8% or lower, I believe in inter- TOTVS, market leader in Brazil started to go international 17 years nationalization as the main driver and in Latin America in software ago, and also operates in dozens of the competitiveness of Brazil-

THE CITY THAT TURNED THINGS AROUND

IN A survey taken this year with transforming its poor neighbor- is pleasant, clean, with most of the 2,000 executives in 32 countries by hoods, where organized crime domi- electrical wires buried underground, Indra, the giant Spanish IT group, nated the working population. In without the holes in the pavement Medellin and Santiago (Chile) were the biggest of them, Santo Domingo, seen in Bogota or São Paulo. There signaled as the best Latin Ameri- on the slopes of the cordilleras, they are modern hotels and high-cuisine can cities to live in. Santiago isn’t a built equipment such as schools, restaurants, such as In Situ, a surprise, as Chile has been first- health posts and UPPs and gave out wooden/glass box in the middle of in-class in almost everything for a property title deeds to those living the sumptuous vegetation of the long time now. But Medellin? Yes. there. And they built a comfortable Botanical Gardens. The only metro They tie in the perception of good cable car which in 12 minutes links line cuts the valley from North to public services, in the parameters the top of the hill to the metro sta- South, partly at a raised level, and of sustainable development and in tion in the valley. The Spanish gov- the metro stations offer new books the use of technology in the public ernment donated a modern library, for free that, in theory, should be administration. inaugurated personally by then king returned after being read. Only To rid itself of the old image Juan Carlos. Santo Domingo pro- 12% are returned, but vice-mayor of a lawless land, dominated by vided the tone of change in the city. Felipe Hoyos thinks it’s a good thing: narcotraffic until almost the turn of Medellin was always beautiful, “People having books at home is a the century, Medellin first set about due to its geography, but today it positive”.

40 REVISTAPIB.COM.BR 1 Medellin 2 In Santo 3 Restaurant at night: the Domingo, cable in Botanical best alongside car removed Garden: this Santiago the “narcos” is living!

had another motivation: following globalized Brazilian clients such as OAS and Odebrecht Agro and reaping new opportunities in a growth leras that run from North to South, market. The Colombian TOTVS which has always obstructed the grew 50% last year and expects to construction of good highways. But maintain this pace in the coming the main problem was the histori- years. Cysneiros likes the Colombi- cal lack of cash for roads, highways, ports and airports, since much of the na- The peace accords have tional budget went to the Armed Forces to already ensured excess combat narcotraffic money for infrastructure and guerrillas. With these problems now

DIVULGAÇÃO/ AGENCIA DE COOPERACIÓN E INVERSIÓN MEDELLÍN under control, the mon- 1 ey has started to appear ian companies”, said the director an model: “The bases of the private and some of Brazil’s major construc- of international market operations initiative are very strong, no-one tion companies are leading players of TOTVS, Álvaro Cysneiros. “Go- accepts State intervention”, he says. in this construction boom. ing international is essential in or- “But the partnership model between Odebrecht, with works in 26 der to learn practices, cultures and society, companies and the State is countries, made the first highway continue being the best on your worth being copied, and the country in Colombia in 1992. Now, it is lead- own turf”. With an eye on innova- is a construction site to eliminate in- ing the Ruta del Sol consortium with tion, the company opened a unit in frastructure delays”. a 66% stake. The project involves Silicon Valley in California. But its The country’s geography is tor- modernizing the country’s age-old decision to touch down in Colombia mented by the three Andean cordil- master highway and constructing a

2 3 MARCO ANTONIO DE REZENDE DIVULGAÇÃO/ AGENCIA DE COOPERACIÓN E INVERSIÓN MEDELLÍN

REVISTAPIB.COM.BR 41 Cover

THE ROAD WHERE GDP PASSES

RUTA DEL Sol is a 2.4 billion dol- petition from a store of the giant Believe Project, which Odebrecht lar project, directly or indirectly Colombian supermarket chain runs to qualify and certify labor, is employing over 4,000 workers. Olímpica, in conclusion phase. called Creer. It also offers talks in Odebrecht received the conces- Out of the thousands of work- self-esteem, considered essential sion for the central stretch of ers and engineers there are only to avoid accidents. At the end 528km, between Puerto Salgar, to 30 Brazilians and a dozen of other of the afternoon, at the central the South, and San Roque, in the Latin Americans, mainly Peruvians, campsite, our reporter witnessed North. But the total stretch from including the engineer leading the the ex-priest José Geraldo Fer- North Bogota to the Caribbean construction, Ricardo Paredes, reira (Minas Gerais), psychologist, coast is just over 1,000km. with 8 years of experience in works preaching to a group of Colombian The effect of the new high- in the Andean region. “Our mission workers: “If our self-esteem is way, 40% ready, is already visible is to build the road with workers low, our performance in life will be throughout the route. In Aguachi- from the region”, he says. The low”. The chief-engineer Paredes ca, a city of 100,000 inhabitants Brazilians are imported for specific took the microphone and gave his near the border with Venezuela, missions, such as maintenance contribution: “A gift of great value the three stores and motorbike work on the 400 heavy machines that we can give our children is the workstations 2 years ago now total and 620 trucks. For the locals, confidence that we have in our- 12. The handful of mini-markets many without prior experience, the selves, it is to go home after work has multiplied, but over the next company offers training programs. and be able to embrace our family”. few months they will face com- The Colombian version of the Building Ruta del Sol poses 1

CARIBBEAN SEA

BARRANQUILLA

CARTAGENA

SAN ROQUE PANAMA VENEZUELA

RIO MAGDALENA Ruta del Sol PACÍFICO BARRANCABERMEJA PUERTO SALGAR

BOGOTÁ COLOMBIA

EQUADOR BRAZIL HANDOUT/ODEBRECHT

42 REVISTAPIB.COM.BR 1 Completed 2 Martorelli stretch of signals Ruta del Sol: opportunities GDP passes to grow through here

brand-new second lane (see page on technical and political problems “To attract investors, Colombia left). Other Brazilian companies are – the former are easier to resolve. offers a safe business environ- also in Colombia. Camargo Corrêa, The works pass through long ment, respect of contracts and which built the Porce III hydro- stretches of soggy clay soil and credit facility”, he says. “The local electric plant, a 1.35 billion dollar this is resolved with the region’s banks are solid and have liquid- project, leads the consortium that abundance of limestone, which ity, we can finance our projects at is building, for the company EPM, dries the bottom of the riverbed, great rates”. Martorelli heads up the country’s largest hydroelectric and of stone, which stabilizes the the company of a building that is plant, Ituango, 180km from Medel- base. A more complicated process also home to the local Braskem, lin. The project, on the Cauca River has been facing the ire of some next to the beautiful Calle 93 park and in a mountainous region cov- groups that see the road passing in Bogota. ered by forests, foresees total invest- outside villages, as the govern- At the end of August, Mar- ments of 5.5 billion dollars. When ment project requires, when they torelli celebrated another multi- it comes on-line, in four years, Itu- previously crossed through them, million dollar contract - also ango will generate 2,400 MW. bringing some commercial activity related to the government’s infra- Andrade Gutierrez arrived in with them. There are negotiations structure strategy - with his board. Colombia in 1991. It had concluded when protests and road blocks oc- Together with the local group six projects, including a railroad cur, and the government ends up Valorcon, which has a 13% stake and a 400-meter stayed bridge, be- authorizing counter-concessions in the consortium, the Colombian fore abandoning the country in 1999 such as accesses or overways not Odebrecht will recover the navi- after two engineers were kidnapped foreseen in the original contract. gability of the Magdalena River, by the FARCs and after 6 months of Sometimes, the dwellers, who which runs alongside Ruta del Sol negotiations and ransom payments end up getting their point across, to the ports of the Caribbean. Via to free them. They returned 2 years demand a new church or a new this river, in the 16th century, the ago. “But we should have gone back school in the village. Spanish conquistadores entered earlier”, says Portuguese engineer Odebrecht arrived in Colombia in search of the mythical Eldorado. Bernardo Serafim (35), president in 1992, constructing pumping “Making the river navigable again of the Colombian subsidiary, with stations for British Petroleum. will make the country more com- an eye on the new package of infra- “Colombia has taken things to the petitive”, says Martorelli, with structure works up for tender, espe- next level because it decided to the 1.25 billion dollar contract in cially the G4 highways. face its problems, including an his hands. The annual cargo flow Serafim praises the transpar- infrastructure deficit”, said the en- capacity on the river will rise from ency of the tenders, but regrets that gineer Eleuberto Martorelli, presi- 1.5 million to 6 million tons at the small-size local companies, which dent of the Colombian subsidiary. end of the works. annual revenues of less than 100 2 million dollars, win projects worth 2.5 billion dollars. “It is a risk in terms of financing and execution capacity”, he says. At any rate, he says, the company considers Colom- bia to be a target market, “thanks to strong demand, the good business environment and resources capacity”. Andrade Gutierrez has done consulting work for the government whilst positioning itself in the bid- ding for works in the areas of oil and

MARCO ANTONIO DE REZENDE gas, transport infrastructure and

REVISTAPIB.COM.BR 43 Cover

BRING YOUR MONEY HERE POSITIVE INDICATORS, innovation, Colombia currently has 14 market opening, works and growth free trade agreements, which are the Colombian recipe to attract represents the possibility of investments, says the Minister of taking its products to a mar- Trade, Industry and Tourism, Cecilia ket of 1.5 billion people. We Álvarez. are also investing in civil construction — 3 billion dollars If I am international investor in homes for the low-income why should I take my dollars to population — and education. Colombia and not, for example, to In 20 years’ time, we want Mexico, Chile or Brazil? Colombia to have a popula- What a doubt! Colombia was tion with the best schooling the world´s second highest growth levels in the hemisphere. The economy in the first quarter of peace treaties will maintain 2014, after China, and at the end this growth rate. HANDOUT of August its annual GDP growth estimate was raised to 5% — more The wellbeing in Bogota, Medellin situation of Colombian industry? than any other neighboring country, or Cali has yet to be repeated in There is a mutual commitment including Peru, which is now in a the interior of the country, with between industry and government turnaround process, and Brazil, a massive contrast between rich in our country. Industry must in- with two negative quarters. Colom- and poor. And pacification still novate and the government must bia offers great opportunities, due isn´t 100% concluded. do its part to help and not hinder. to its macroeconomic indicators The recent evolution of the Gini An example: the company that and major projects underway – the index shows that social inequality compiled printed telephone number biggest in the world in infrastruc- is declining. The stated objectives lists had to reinvent itself. Google ture. We are looking at 25 billion of our government are peace, social ensured that. Companies must be dollars that are being invested in equality and education. All the competitive and the government highways, railroads and ports. And ongoing projects have this purpose. has the obligation to help them. My we shouldn´t forget the rectification In recent years, we took 4.5 million mission at the ministry is to help and improvements in the Magda- Colombians off the poverty line and industry follow the path of innova- lena River channel, a project worth poverty in general has fallen. This tion. In this respect, we also receive 2.5 billion reais, awarded to the gives confidence to foreign inves- the help of Colciencias, a govern- large Brazilian player Odebrecht. tors, as does the end of the control ment agency dedicated to support- I had the privilege to work with of part of the population by the ing the development of research, Odebrecht for 2 years, when I was guerrilla. Since 2002 we have been technology and innovation. Transport Minister, and I must take making progress in the pacification my hat off to their work in executing process. The companies that came In which sectors, in your opinion, projects and as a concessionaire. I to Colombia have not faced these are the biggest opportunities for can guarantee that this opinion is problems and if they do, they know Brazilian companies in Colombia? shared by President Santos, who that all they need to do is make a In all areas: energy, apparel told me of his delight when he phone call to receive all the help of industry, manufacturing in general, learned that the company won the the government. infrastructure, tourism, services... bid for the Magdalena River project. All you have to do is choose, the op- Industry is losing importance in portunities are out there. Legisla- What is the most concrete thing Brazil, due to a lack of competition has changed a lot to favor the that Colombia offers the compa- tiveness, low productivity and all success of public-private partner- nies looking to invest there? kinds of obstacles. What is the ships. It is time to invest here.

44 REVISTAPIB.COM.BR Minister Cecília Alvarez sends the message: open doors energy. “We will have a very good ization, social projects and envi- 10-year period in this country”, says ronmental actions – a single smoke GDP GROWTH Serafim. screen cost 29 million dollars. Paz Several Brazilian companies del Rio has a partnership with uni- have set up shop in Colombia with versities to train and qualify techni- 7% 6,6% 6,4% franchises, including the car rental cians and also finances basic educa- 6% 5% 4,7% company Localiza, Chilli Beans, tion schools in the community. 4% 4% 4% the bookstore Nobel, the Wizard Colombia´s affluence has sped 3% language course school and shoe up the process of seducing Brazilian 2% 1,7% stores such as Via Uno and Carmen companies. Natura, present there 1% 0% Steffens. Larger groups, with a lon- for the last 7 years, considers Colom- 2009 2010 2011 2012 2013 2014 ger presence in the country, have bia one of the main Latin American made new investments. Petrobrás, markets, alongside Argentina and DIRECT FOREIGN which started its internationaliza- Mexico. "The constant growth of INVESTMENT tion in Colombia in 1972, bought the economy strengthens the pros- the Shell gas station chain for 140 pects of Natura in the country", said 16.772 million dollars in 2004 and now the vice-president of international 14.648 runs the largest gas station chain operations, Erasmo Toledo. "We 15.119 15.823 already have 50,000 consultants and 15% of 6.430 Boticário disputes local the products sold in the country are produced 2010 2011 2012 2013 2014 market worth 4 billion (Projection) locally". The interna- dollars with Natura tional operations of Na- tura represent 18.1% of SCENARIO global net revenues and have been growing 40% OF OPPORTUNITIES* in the country, as well as exploring p.a. since 2009. 0 deep-water wells on the coast of the At the end of August, it was the 20 Caribbean. Gerdau, which 10 years turn of another heavyweight in per- ago took control of the plants of the fumes and cosmetics, O Boticário, to 40 Diaco group, invested 600 million touch down in Colombia to contest dollars in expansion and modern- a piece of the rich 4 billion dollar 60 ization. And Votorantim continues market. According to Andrés Giral- 80 modernizing its Paz del Rio plant, do Torres, director of the operation, acquired 8 years ago for 361 million the plan is to post annual revenues 100 dollars in a move that marked the of 90 million dollars in 2016, when start of the internationalization of the chain of 100 stores to be opened Degree of the group’s steel division. over the next 5 years will already be Investor Protection The company – created by the up and running. Growth in civil con- General Quality State in 1946 to explore the neigh- struction (16.2% in the second quar- of Infrastructure boring coal, iron and limestone ter of 2014) has been a blessing for Degree of Development of mines and create jobs in a poor re- Duratex, which 2 years ago bought Financial Market gion – was bankrupt and had been its first stake in the local MDF slab/ Degree of Development of donated to its employees. As the plate producer Tablemac (so far, it Infrastructure and Transport plant modernized and became vi- has kept the brand name). “Duratex *In this ranking of 120 nations, by the World Bank, able, its headcount shrunk consid- was born 60 years ago to export”, Colombia ranks at the top (6th) in investor protection and in erably, from almost 8,000 to 1,700 said Antonio Joaquim de Oliveira, the middle (63rd) in financial market development. But it is one of the last (106th) in infrastructure, showing the size of workers. 214 million dollars were CEO. “But today we have a hard the opportunities for the homebuilders there. invested in technological modern- time supplying the local Brazilian

REVISTAPIB.COM.BR 45 Cover

market; and it’s also tough grow- attracting investments and the trick Pegatex, by buying a 55% stake. ing where you are already market for multinationals looking to touch As well as Proexport, there are leader”. It was thus with an eye down in the country is provided also local agencies for attracting to growth that Duratex identified by Proexport, a type of mega-Apex investments, such as Invest Bogota, in Colombia a market with good with offices in 30 countries. Proex- the Cooperation and Investment potential. Last year, the company port establishes connections, offers Agency in Medellin and Invest Pa- already had 35% of Tablemac and, information, signals the financing cific, in Cali, which all intensely in January 2014, it achieved an 83% paths and helps to obtain protec- promote the positive local attri- stake via a public offer. It has four tion in the innumerous free trade butes. Although Bogota enjoys the factories, which annually produce zones, if the case. There is even the strength of being the capital city 200,00m3 of panels for furniture possibility of setting up shop in the and producing in its macroregion al- and civil construction. country as a unibusiness free trade most 25% of national GDP, Cali, the Duratex has only one expatri- zone – if production is intended for capital of the Valle del Cauca region, ate in its central offices in Medellin, exports, both the raw materials that offers the attraction of being close financial director Rodrigo Delbem. arrive and the products that leave to the Port of Buenaventura, 115km 1 2 HANDOUT/BOTICARIO

All the other employees, around receive tax benefits (but it is also from the Pacific Coast. Unilever’s 1,000 people, are Colombians. Like possible to “export” to the local largest plant in Latin America was all Brazilians who invest there, market, at a different tax bracket). opened in Cali, which is also home Oliveira praises the commitment, When it arrived in Colombia in to Brazil’s Ortobrás and Furukawa. amiability and good education of 2004, Rio Grande do Sul company Ortobrás makes wheelchairs and Colombians. But he really took a Artecola – 9th in the Fundação Dom equipment for the disabled and in- liking to the bureaucratic simplicity. Cabral ranking of Brazilian mul- vested 5 million dollars in a plant “When I arrived, I asked to see the tinationals and Latin American with 50 employees. This year, Furu- fiscal sector and they showed me 2 leader in adhesives, laminates and kawa also opened a 5 million dollar employees in a room”. “In Brazil, we engineered plastics – bought a local plant to produce fiber-optic cables. have at least 200 people to deal with company and obtained the benefit At the reception organized at the multiple tax requirements of the of the unibusiness free trade zone. the residency of the Brazilian em- Revenue Service”. Last year, it took control of the larg- bassy to celebrate September 7, the Colombia has an active policy of est Colombian adhesives company, guests received green-yellow tapes

46 REVISTAPIB.COM.BR upon arriving and, upon leaving, a gift bag with Havaianas flip-flops. In the gift raffle, the Chilean ambassador won a basket of O Bot- icário products. In the festive at- mosphere, a foreign economist, who works for a multinational consultancy, told PIB that not everything is rosy and that there’s still a lot of work to do. “Even the free-trade accords can be bad, given the lack of infrastructure”, he says. “A Mazda plant was recently transferred to Mexico, where production costs are lower, to export back to Colombia”. HANDOUT HANDOUT/PAZ DEL RIO HANDOUT/PAZ 3 Another weakness that he signals a Colombian, decided to set up his visit Miami and not be viewed with is the excessive GDP dependency own business and, with an invest- an air of distrust, says Cera. “They on oil and gas exports, subjecting ment of 75,000 dollars, launched a want to show off their passport and the country to the mood swings of start-up in Bogota to offer home- credit cards with pride”. international prices. help services online. To open the In the opinion of another inter- company, all he needed was a bank national executive, Italy’s Matteo account, signed articles of incorpo- Cera, who spent 3 years working at ration and one day to register his the bank Morgan Stanley in London company at the trade board. “Co- and was a consultant of McKinsey lombia today reminds me of Italy in in the area of oil, what really mat- the 1960s, after exiting poverty and 1 Bogota: 2 Tablemac 3 Paz del Rio, ters is the virtuous trend of the Co- the war”. “My father told me of his the first of O (Duratex) Votorantim’s lombian economy, political stability joy in buying his first fridge and first Boticário’s stand plant in and improved safety. Cera married TV”. Today, Colombians want to 100 stores at fair Colombia

REVISTAPIB.COM.BR 47 Opinion

Foreign trade needs a single body in charge Industrial and commercial exporters are a dispersed group which has to deal with many intermediaries and faces difficulties in defending its legitimate interests RUBENS BARBOSA*

he trade balance results The outlook is horrible: the trade manufacturing had its worst perfor- for the first half of this balance is shrinking year after year; mance in many years; the percent- year have increased the the export prices index fell by 2.1% age of imported industrial products concern of business in July compared with the same of total domestic consumption con- leaders facing difficul- month of 2013 and the terms of tinues to increase (21.8%); capital Tties that the government should trade were lower in all comparisons goods imports slumped by 10.3%; adopt measures to strengthen with the same period of 2013; indus- car exports to Argentina plunged Brazil´s exports to take on the tough trial exports continued to decline in by 34% and Brazilian exports to dispute for the international market, 2014 and could lead to a trade deficit this market were 20% lower. High particularly manufactured products. of more than US$ 105 billion while technology products currently rep-

48 REVISTAPIB.COM.BR XXXXXXXXXXX resent less than 5% of exports and The “Brazil cost”, that includes them less bureaucratic and they are the risk of non-payment by Argen- taxes, social and labor charges, logis- very welcome. What draws atten- tina and Venezuela for exports has tical costs, interest rates, bureaucra- tion in the economic debate in the risen. The trade deficits with the cy and energy, represents over 35% current presidential electoral cam- United States and Europe have risen paign are the propos- by around US$ 7 billion and US$ 2.5 als by the candidates billion, respectively. The European The sector must be a aimed at increasing Union has also suspended its favor- competitiveness and able import duties on Brazil within topic for discussion in the cutting or eliminating the voluntary General Preference electoral campaign the internal barriers to Scheme, the SGP. the expansion of for- One of the main causes of this eign trade. situation is the loss of Brazil´s foreign The Brazilian gov- competitiveness. It is not our inten- of the end price of Brazilian exports. ernment is slow and fearful in tion here to examine the negative im- Removing its negative effects on ex- supporting exporters. Examples pact of the currency appreciation or ports depends, to a great extent, on of this were the latest measures to China´s aggressiveness in promoting government actions. Promises have encourage foreign trade. In terms its industrial products or the infra- been made to simplify the import of international negotiations, a new structure bottlenecks, worsened by and export processes and make strategy will have to be defined and the lack of investment. Nor is it our intention to speculate on the outlook and uncertainty of the global economy and the growth of world trade, or * Rubens Barbosa, former ambassador to the USA, is president of the Foreign Trade the cooling of the Brazilian economy Council of Fiesp and its effects on exports.

REVISTAPIB.COM.BR 49 Opinion

executed, giving priority to negoti- ness leaders in the industrial and ating free trade agreements (FTA) foreign trade sectors have difficulty with important partners. There are in defending their legitimate inter- around 500 FTAs registered at the ests efficiently. There are around World Trade Organization (WTO), 20 public bodies that interfere in of which more than 100 have been the foreign trade decision process negotiated in the last decade. Brazil and around 3,000 rules, regulations, was on the sidelines of this process. laws and constitutional edicts that It has concluded only one agreement have to be followed. that has been ratified , with Israel, The Foreign Trade Chamber (Ca- and others with Egypt and the Pal- mex), a collegiate body with the task estinian Authority that have not yet of coordinating the different federal been ratified. government bodies that look after Exports were the drivers of the the foreign trade policy, has no po- economy until recently. Their dyna- litical weight to exercise this role to mism needs to be recharged if Bra- the full. Although it is headed by the zil is to start growing again at higher Ministry of Development, Industry rates and give businesses access to and Foreign Trade, the bureaucratic new technologies and pursue inno- structure of the Camex must be al- vation to expand and diversify the tered to expand the coordination space available for Brazilian prod- between the bodies involved in the ucts on the world market. decision-making process and influ- Foreign trade does not have a ence the forming and execution of pressure group lobbying for it, such foreign trade policies. as the Febraban federation in the fi- Brazil needs a new institutional nancial sector and the Agricultural structure for its foreign trade that Ministry and other associations and is capable of coordinating a new institutions in the agricultural area external business strategy. The aim is not to create any new bureaucra- Foreign trade has no cies but to strengthen pressure group representing the export trade under a single command, fa- it to the authorities voring coordination in the government sphere and creating a full-time

support mechanism to XXXXXXXXXXX which defend the interests of the fi- act in defense of the interests of the nancial organizations and farmers in private sector. exercising all these responsibilities, their dealings with the government The responsibilities of a restruc- the Camex would become the focal and Congress. Exporters are a dis- tured Camex would be: to command point of the foreign trade decision- persed group and have to deal with and coordinate the different bod- making process and interface with many intermediaries (Finance Min- ies that interfere in foreign trade; the private sector. istry, Ministry of Industry, Develop- formulate foreign trade policies in The Foreign Trade Council ment and Foreign Trade - MIDC, coordination with the bodies that (Coscex) of the São Paulo Industri- Central Bank, Federal Revenue, are responsible for the area; and coal Federation (Fiesp), the National Foreign Ministry - Itamaraty, Agri- ordinate and undertake measures Industrial Confederation, Fiesp and cultural Ministry and the national to expand exports and imports and the association of Brazilian export- development bank, the BNDES, to provide guidelines for the export ers are putting forward different mention the most important). Busi- financing and insurance policy. By solutions to strengthen the Camex.

50 REVISTAPIB.COM.BR The simplest formula, which cre- to foreign trade. the trade negotiations agenda, two ates no new body, comes from the The private sector should take of business leaders‘ main priorities Coscex and is to alter the current advantage of the presidential elec- would certainly gain greater space structure and create the function of tion campaign to highlight its dis- and attention. a Camex president who would be satisfaction with the current poli- outside the MIDC but with a direct cies for the sector. It is important link to the President. At the same that foreign trade be one of the time, a wide-ranging reform of the issues for discussion in the presi- national customs system has been dential campaign, due to its impor- Santos: proposed, along with the consolida- tance for growth and job creation. pursuing tion of thousands of legal acts and Against this backdrop, the question lost norms to facilitate activities linked of strengthening the Camex and efficiency

REVISTAPIB.COM.BR 51 Small but outstanding You don´t need to be big to go international

Fresh environments, heated sales Innovative technology for acclimatizing areas opens doors to the international market for a producer from southern Brazil ANTONIO CARLOS SANTOMAURO

ecessity might be the Relief came in 2001, accom- mother of invention, panied by some original touches. as the old saying goes, Guilherme put into practice an ac- but in the specific climatization project that was dif- case of the southern ferent from those adopted by con- NBrazilian company Joape the cre- ventional humidifiers that used fans ativity that leveraged the business to drive the evaporated water inside – including shifting operations to the equipment to the surrounding other activities areas – had a pater- area. Under his system, the water nal origin. The man behind the sud- passes across a disc that rotates at 1 den change in direction was a small very high speed and is centrifuged cial establishments disappeared businessman called Guilherme dos in the form of droplets which evap- and gave way to the acclimatizers. Santos, the father of João, Ana and “Our appliances are Pedro, whose initials led to the perfect for open, wide name of the company founded 20 Success of acclimatizers, areas and are used a lot years ago. The patriarch was a tal- in events, restaurants, ented inventor and came up with a created for own use, tourist points where solution to his children´s needs by led to a change of area there is a great flow of developing a piece of equipment people, industry, com- that could lower the very hot tem- mercial areas, and also peratures in its industrial shed in in homes in smaller Santo Antônio da Patrulha, 82 kilo- orate almost instantly. versions,” he said. meters from Porto Alegre. This was João originally built 12 pieces In that same year, the “misting where they produced equipment for of equipment developed by his fa- fan system” technology was pat- commercial establishments, such as ther purely to cool down the family ented in Brazil. Its rights are also signaling material and shelves. “The company´s premises. However, it now protected in the United States heat was terrible. During the sum- did not take long for the invention and Mexico. Production became mer, the thermometer registered to draw the attention and interest more diverse and gained scale. The 47o C on the plant floor and 67o C of friends and clients and orders catalogue has 11 models and the on the roof where you could even exceeded 300 units just over a year company distributes 3,000 pieces fry eggs,” recalled João Henrique later. The result was that in 2003, of equipment every month to the

Schmidt dos Santos, the Jô of Joape. the sales point items for commer- domestic market and more than 30 MARCELO MATUSIAK

52 REVISTAPIB.COM.BR Thinking big: João wants to quintuple revenues by the end of the decade

countries abroad, including France, companies by the Brazilian Trade “People in the south, for example, Spain, Portugal, Colombia and Chile, and Investment Promotion Agency, are strongly influenced by Mexico as well as the US and Canada. Sales and business is inte- are doing well and revenues are ex- grated to this market. pected to amount to R$ 20 million Exports should jump The same thing hap- this year, 43% more than in 2013. “A pens in the north, only large part of this expansion will arise from 8% to 10% of with Canada. The fact from business abroad. The seasonal total revenues this year that we are now in the climatic factors in Brazil reduce our United States facilitates sales a lot during the winter,” said our presence in Canada João. and Mexico.” Exports account for 8% of total Apex-Brasil. It now only uses the The first international shipments revenues. More than half of this warehouse. of acclimatizers occurred eight amount comes from the North Pohlmann believes the United years ago, following an order from American market. This was the rea- States could create even more busi- a client in Paraguay. Further orders son why the foreign sales manager, ness for Joape as the company´s came from other countries shortly Lucas Pohlmann, who has held the distributors still only cover just afterwards. The company was elated position for nine years, moved from over half of the 50 states in the US. and decided to obtain advice from Rio Grande do Sul state to Florida in Besides this, the company´s physi- Apex. It now takes part in a program April. He is based in Miami where cal presence in that market will al- to develop business abroad that is Joape used a business center and a low it to take better advantage of run by APEX in partnership with warehouse provided for Brazilian the opportunities at regional level. the Brazilian Refrigeration, Air Con-

REVISTAPIB.COM.BR 53 Small but outstanding You don´t need to be big to go international HANDOUT 1

ditioning, Ventilation and Heating to be transformed into revenues Association (local acronym Abrava). in the near future. “Many plants In The company´s cross-border the United States want to use our business agenda includes taking technology but we are only listen- part in a number of international ing to proposals for the time being,” trade fairs directed at the acclima- he added. tization industry or sectors that The innovation and creativity require its equipment. The list in- that lies within the DNA of its con-

cludes bars and restaurants, events trollers led the company to enter HANDOUT and animal breeding establishments. a new market niche six years ago 2 The task of prospecting for business when it launched an electrically- at much lower prices next year. is bringing good results. “In France, powered vehicle for individual trav- A more promising prospect to we have a distributor that operates el called the Speedy. It is a version offset this appeared in the first a lot with stores selling decorative from southern Brazil of those mo- two-month period of the year at items. One of the focal points in Por- the Joape headquarters tugal is tourism, in establishments in Santo Antônio da Pa- like hotels and restaurants,” said Green Seal awakened trulha which has almost Pohlmann. interest of producers 100 employees. This is Joape not only uses its patented an acclimatizer made technology in the dispute for new in the United States with used tires. The business abroad but also gained a idea came, of course, victory in terms of sustainability from Guilherme who at the beginning of last year at the leads the company´s ARH Expo trade fair for the accli- torized scooters commonly used by research and development team matization sector held in New York. security services in shopping cen- which has a track record of more This was the Green Seal award for ters and large corporate areas. João than 200 patented devices. These products that consume lower ener- admits that the project has still not include not only the acclimatization gy than air conditioners and reuse taken off, due to the price but he system but a horizontal refrigerator water. This recognition promises says the Speedy will be re-launched and a valve for fuel tanks that is now

54 REVISTAPIB.COM.BR 1 Indoor freshness: 2 Sustainable 3 Challenge: Joape 4 Open air: acclimatizer at a creativity: model is promising to appliances installed gym in France with the structure cut the price of its in restaurant of a tire Speedy device in Florida MARCELO MATUSIAK HANDOUT 3 4

obligatory in gas filling domestic segment, which currently result, we can now make orders on stations of Rio Grande do have a share of 25% and lag behind a much larger scale.” Sul state. the industrial (40%) and commer- Brazil´s well-known logistical The patriarch noticed cial segments (35%). “This market difficulties are the main challenge that a tire on one of the share is more subject to seasonal cli- the company faces today. To prevent fleet´s cars had a cut in matic factors but the prospects are delays in port operations, it some- it that it could not be re- enormous,” said João. times sends the products by air paired although the tire it- Pohlmann believes the inter- instead of ship. “Air shipments are self was still in good state. national market will already start 30% more expensive but are vital to He found a good, cheap accounting for around 10% of reve- maintain the client’s satisfaction and and 100% sustainable so- nues this year and the goal is to raise make our relationship closer,” said lution. “We know that tire disposal its share to 15% or 16% by the end Pohlmann. is a serious environmental problem of the decade To comply with the Another more structural obstacle and thought of creating something company´s established plan, Joape is the lack of capital to expand in- different and innovative. We adapt- stalled capacity. João ed the structure of the acclimatizer says that Joape could and the result was fantastic,” said Domestic segment quintuple its revenues João who helped his father in the has greatest potential in three years if it had project. more resources. Some He is optimistic and pinning his for expansion investment funds have hopes on business heating up on the shown interest in ac- domestic and international fronts. quiring equity stakes in He said the domestic growth poten- the business but these tial was one of the most promising, has been working intensely in cut- are currently only at the discussion as his 12 distributors and retailers ting costs, a process that includes stage. However, he will not give up. cover only half of Brazil´s territory negotiating bigger volumes with “Even without contributions from adequately. Besides optimizing the suppliers and rationalizing produc- third parties, I intend having rev- sales channels, the company´s strat- tion. “We have obtained interesting enues of R$ 100 million within five egy foresees leveraging sales in the results in these areas this year. As a years,” he pledged.

REVISTAPIB.COM.BR 55 Small but outstanding YOU DON´T NEED TO BE BIG TO GO INTERNATIONAL.

Global hammocks

People selling hammocks are found everywhere on the beaches of Brazil´s Northeast but they rarely manage to expand their business beyond the sand. One exception is Redes Isaac from Fortaleza, a company that began to win over the world 29 years ago at a local handicrafts fair. Its products appealed to foreigners so much that when the tourists left, they took growing numbers of hammocks with them and even sold them at home. Small-scale exports soon attracted the attention of distributors. The result is that 50,000 hammocks are now produced a year, most of which are sent to 20 countries, including the US, France and Italy. A diversified portfolio ensured revenues of US$ 250,000 in the US and 500,000 euros in Europe in 2013. The sales were once higher, said the founder, Antônio José Carvalho de Vasconcelos, but fell as a result of the tougher competition and Brazil´s lack of enthusiasm for 1 foreign trade agreements. “We are taxed at a rate of 10% in Europe while Colombian hammocks are not taxed at all. However, I have already noticed a recovery in sales which should expand by up to 25% this year,” he said.

3 Important endorsement

There is nothing like treating us to serve Mexico clients well, particularly the big and Canada as well.” ones. After opening an office in the US The North American in January, Raumak, a manufacturer of equipment market accounts for 10% of the for the packing and handling of products, from Santa international sales of the Catarina state, is receiving backing from multinationals company that exports around 45% of to win room on the new front. “Companies with its production. Now, with four professionals in the which we have already worked in other countries – technical and commercial area located in the US, and such as Unilever, P&G, Mars and General Mills – are the endorsement of these companies, the sky is the helping us to create business opportunities there,” limit. “We had revenues of R$ 40 million in 2013 and said CEO Raulino Kreis Junior who set up the office in expect an increase of 10% this year, mainly due to the Atlanta, Georgia. “The location is ideal as it allows expansion of the international market,” said Kreis. PICTURES: HANDOUT

56 REVISTAPIB.COM.BR 1 Trade balance: 2 Two in one: 3 Raumark Isaac hammocks skate with machine: the are exported to Movpack clients do the 20 countries backpack advertising

Speaking the client´s language Backpack on wheels

Shopfisio´s export sales currently amount to a mere 2% of the total but should expand sharply by the end of next year. Andrian The Kickstarter site is where Movpack Nucci, the CEO of the e-commerce store that specializes in beauty, intends earning the US$ 100,000 it needs to physiotherapy, fitness and health products, dreams of between begin production of its motorized skate that 10% and 15%. He says the target is perfectly viable as his site, transforms itself into a backpack. The startup that is currently available only in Portuguese, will have versions is current located at the Bahia Technology Park in English and Spanish In the coming months. Even with just and has already set up an office in Reno, in the one language, the company is already exporting to countries, United States, where intends transferring its such as the US, Angola, Portugal, Japan and Belgium. The main head office. “From the point of view of urban items on the export list are electro-electronic equipment for infrastructure and public physiotherapy, rehabilitation and esthetic medicine. The price per transport, the US and unit is usually more than R$ 1,000 and can reach up to R$ 50,000. Europe are markets Shopfisio is based in Mogi Guaçu (São Paulo state) and was where our product founded in 2005 by Nucci, who had already operated in this will have the best area. It had revenues of R$ 30 million last year which should conditions to adapt,” rise to R$ 40 million this year. The company has 80 employees said Movpack co- and is also preparing to open physical stores – the first in founder Hugo São Paulo this September. “We are also launching three Dourado virtual stores which are more segmented: Shopestética, Shopmedicina and Shopveterinária,” said Nucci.

On the way to the Pacific

Chile is the latest market for Brazilian melons that are already exported to more than 20 countries. Although Chile has a lower consumption power, this development promises to raise the value of the Brazilian product in the eyes of the world. The reason is because Chile, which previously only imported melons from the US and neighboring Peru, is recognized for its strict sanitary standards. “Other South American countries that do not maintain their own control systems generally use Chile as a benchmark,” said José Ferreira de Mello Neto, superintendent of the Brazilian Support Service for Micro and Small Companies (Sebrae) in Rio Grande do Norte state. The state has been the domestic leader in the area for more than 10 years and has a Sebrae program directed at growing melons. The initiative currently brings together around 20 producers, most of whom are small. The work has literally borne good fruit. Exports from the state came to US$ 58.2 million last year, 7.6% more than in 2013. Furthermore, the melon producers from Mossoró, in the upstate area, received the Indication of Origin seal from the National Institute of Industrial Propriety (INPI) 12 months ago.

REVISTAPIB.COM.BR 57 Marco Globe-Trotter Antonio EXECUTIVE TRAVEL de Rezende

2 GASTRONOMY

The glory of Brazilian seasoning in Paris

WHO IS that Brazilian woman on the cover of the famous French gastronomic guide Gault et Millau? It´s Alessandra Montagne, the wife of French chef Olivier Montagne whom she met just as she was about to return to Brazil from France. Alessandra, from the Vale do Jequitinhona region in Minas Gerais state, had gone to Paris to learn French but love led her to stay on and inspired the newlyweds to open a restaurant in a district off the beaten tourist track in the 13th Arrondissement, near Chinatown, at Porte d´Italie. The Montagne´s place, called Tempero (the Portuguese word for seasoning), was chosen by the magazine to illustrate an article entitled “70 restaurants with a friendly price”. The formula for success lies in tasty recipes, attractively presented and at a low price. The lunch- time entrée and main dish or the main dish and dessert cost 15 euros while all three cost 20 euros (a bargain by Paris standards). Examples of the dishes include salmon marinated in Japanese missoshiro sauce, followed by pork comfit with vegetables and polenta. Or you can try cod cooked in celery cream and panacotta cooked cream with mango and passion fruit compote to finish. The restaurant has become such a success in just over a year that Alessandra and her husband have opened a second establishment - the Bistrot Tempero – with each looking after one place. Note that it is closed on Saturday and Sunday and only serves dinner on Thursday and Friday. www.tempero.fr

58 REVISTAPIB.COM.BR 1 Star Alliance 2 Alessandra and 3 Hilton App: AIRPORTS Lounge at Olivier and the look at the the new GRU: shrimps served room and impressive at the "Temperô" then choose São Paulo´s Guarulhos begins to show a new face INTERNET THE CHANGES at the new Terminal 3 in São Paulo´s Gua- rulhos International Airport look like something from the Wifi in the clouds: how first world, a compliment Brazilians often make when impressed. The terminal is very good and highlights much does it cost? the advantages of privatization. It has plenty of space, THE TORMENT of having people chatting on mobile architectural good taste, generous natural lighting, a calm phones on board planes has not yet become real- flow of passengers in all areas and there is room for up to ity but the Internet is already available in dozens of 34 planes on the runway at the same time. The feeling of airlines. The quality of the signal still does not allow order and tranquility contrasts with the suffocating atmo- Skype to be used or heavy downloads and we are talk- sphere everywhere else, particularly at the arrivals area ing about basic surfing. The Danish travel site Mo- of terminals 1 and 2. There is a good area for stores and mondo carried out a survey showing how some of the restaurants and a covered direct link to the garage building pioneers are handling charging for the inflight service. and the old terminals. Only three airlines were operating Companies like Turkish Airlines, Norwegian, JetBlue there until the World Cup but this rose to 13 by September. and SAS do not charge anything. While others, such as These include the elite airlines from the Middle East (Qatar, Singapore Airlines, Emirates and TAP, charge for the Emirates, Etihad and Turkish), Europe (Air France, KLM, apparatus that is connected and by megabyte, Ameri- Swiss, Lufthansa and TAP) and the Far East (Singapore and can Airlines, Air Canada and Delta, charge by the day Air China). North America is represented by Air Canada or minute. Check out this site for further information and United. A new lounge for nine of the 12 Star Alliance on how each airline charges. www.momondo.com companies that fly from Guarulhos was set up in the mez- zanine of the shiny new terminal. The lounge is reserved for business and first class fliers and measures 1,350 m². It HOTELS has a view of the atrium and runways and offers passengers privacy, snacks, drinks and free wi-fi, as well as four suites Hilton in the palm with showers. Have a nice trip! www.aeroportoguarulhos.net/ of your hand companhias-aereas-aeroporto-guarulhos

1 A SURVEY made in the US by the 2 Hilton chain (4,000 hotels with 11 brands in 80 countries), showed that 28% of guests are always disappointed with the location or kind of room they 3 get. Furthermore, 84% would like to choose the room personally, getting rid of the current lottery-like system when the guest receives the key in the reception. Hilton´s new app for smartphones is beginning to resolve the problem in an innovative way. Those who are registered (free of charge) in the HHonors loyalty program can chose their room from the eve of their arrival by looking at every floor plan and room availability (all with photos). The smartphone will also be able to be used to open the door of the chosen room from 2015 and guests outside the US will be able to check out digitally in 2016 (a service already available in the US) through their mobile phones. www3.hilton.com/en/about/ hilton/mobile.html

REVISTAPIB.COM.BR 59 Globe-Trotter :: EXECUTIVE TRAVEL

RANKING 2014 The list of the best cities

THE ECONOMIST magazine, like every quality British institution, cultivates tradition with a pinch of insightful humor. Its Big Mac index to measure the cost of living worldwide based on the local price of a sand- wich compared with the price in dollar in the US is one famous example. The magazine´s Economist Intel- ligence Unit (EIU) has been producing lots of studies and rankings for years. The ranking of the best cities to live has a practical purpose as it helps expatriate executives to negotiate their remuneration related to the difficulties and risks of each place. Anyone being sent to Melbourne, in Australia, this year should be happy with what the company offers as the city has been ranked the best place in the world for the fourth consecutive year in almost all the categories, including public health, infrastructure and education. The murder rate in Melbourne is half of the world average. It earned 97.5 points for factors such as stability, culture and environment. The other nine cities are Vienna, capital of Austria, Vancouver and Toronto, in Canada, Adelaide, also in Australia, Calgary, again in Canada, Sydney (Australia), Helsinki, capital of Finland, and in 9th and 10th places Perth and Auckland, in Australia and New Zealand, respectively. On the other hand, the worst-ranked cities in the world to live in 2014 were Abidjan (Ivory Coast), Tripoli (Libya), Douala (Cameroon), Harare (Zimbabwe), Algiers (Algeria), Karachi (Pakistan), Lagos (Nigeria), Port Moresby (Papua Nova Guinea), Dhaka (Bangladesh) and Damascus (Syria). www.eiu.com/public/topical_report.aspx?campaignid=Liveability2014

ICONS New look for Novo Mundo Hotel

THE NOVO Mundo, one of Rio de Janeiro´s most glamorous hotels in the past, is returning to center stage. The hotel, located on Flamengo beach, was opened in 1950 and, along with its neighbor, the Hotel Glória, was the right place for politics, business and pleasure in Rio which was Brazil´s federal capital at that time. It is near the Catete Presidential Palace where Getúlio Vargas had just assumed office after being democratically elected. It was also where Pelé celebrated his 1,000th goal. The Novo Mundo, with its fine architecture, remains very well located between the city center and the southern zone, with splendid views of Botafogo bay and the Sugarloaf Mountain, known locally as the Pão de Açúcar. It is now attracting leisure and business travelers once again following a long restoration. The reception area and apartments have been upgraded, the Business Center expanded and wifi is available free of charge in all areas. The Panamera Bis- trô on the 12th floor (with the famous view included in the menu) is expected to open shortly and be company for the traditional Flam- boyant restaurant. What has not changed are the two lion sculptures at the entrance, created over a century ago by the French artist Henri Alfred Jacquemar (who also created the rhinoceros at the entrance to the Museu d´Orsay in Paris). They were part of a group of four created to adorn the entrances to the former Girls School (Colégio de Meni- nas) of the baroness of Geslin in Rio. The school and the baroness are long gone but the lions remain. www.hotelnovomundo.com.br

60 REVISTAPIB.COM.BR 1 Melbourne, 2 Novo Mundo 3 A 350: the 2014: world´s hotel: a Rio latest jet best city icon is back is set to fly in Brazil

PLANES

Brand new Airbus 350 comes to Brazil

AIRLINES WANT planes that consume little fuel and arrive at their long distance destinations without stopovers while carrying lots of people in the most comfortable way possible. Passengers also generally want the same but, above all, they want comfort at low cost. Boeing has already met this wish (although rather late and with some technical problems) with the Boeing 787, otherwise known as the Dreamliner. (Ethiopian Airlines is the only other airline in Brazil to use it for the time

DAVID ILIFF/WIKIMEDIA COMMONS DAVID being.) The A 350 is also made of composite 2 1 materials that are lighter and should occupy the place of the A 330 as they also have only ART two turbines but can fly up to 400 passengers from one side of the world to the other. One A museum to discover of the five A 350s already built and still at the testing stage passed through São Paulo in August as part of the flights needed to obtain DOES A business trip to New York need to international certification. The Brazilian be just about work, work and more work? airline TAM will receive the first of the 27 it Perhaps you should take some time off and ordered by the end of 2015 while Azul, with an discover a small museum that usually goes eye on the lucrative niche of the international unnoticed between the giant Metropolitan routes, will receive the first of a series in 2017. and the attraction of the Museum of Modern www.airbus.com Art (MoMA). We are talking about the Neue 3 Galerie, at the corner of 5th Avenue and 86th Street, very close to the Met. It is completely dedicated to the production of German and Austrian painting and design from the beginning of the last century, a fabulous period that was marked by groups like Blaue Reiter, Die Bruck and Bauhaus and, in Vienna, by giants of design such as Michael Thonet, Otto Wagner and Adolf Loos. There will be a special attraction from October 9 to January 15: an unprecedented exhibition of portraits by the Austrian artist Egon Schiele, the first of this size outside Europe. Splendid stuff. It is worth checking out. www.neuegalerie.org

REVISTAPIB.COM.BR 61 Globe-Trotter Express Tourism

3 4 HERMÍNIA MOREIRA

62 REVISTAPIB.COM.BR 1 Landmark: 2 Tuscany turns 3 Santa Maria 4 Floor of stars: Florence, Il Duomo into the sea: Novella: Gothic Salvatore dominates Neptune’s and Renaissance’s Ferragamo by Eva Perini the scenery Fountain touches Museum EVA PERINI was born in Lucca but came to Brazil when she was a girl and returned to Italy in the1990s. In 2006, she set down roots in Flor- ence about 60 kilometers from where she was born. The choice could not be more convenient. Besides being closer to her relatives and friends again, this Italian businesswoman, HERMÍNIA MOREIRA who manages industrial real estate and heads an investment fund in historic buildings, found fertile soil to further her studies in art and enhance her private collection with acquisitions. Besides this, she founded the Progetto Vitalità Onlus project (www. progettovitalitaonlus.com) which is aimed at teaching art to students at fundamental level. Eva has made a personal tourist itinerary for PIB of this magnificent city which inspired Tsar Peter the Great at the beginning of the 18th century to build a new capital for Russia, Saint Petersburg. ISTOCK 1 2 If you only have a few hours... FLORENCE IS the capital of Tuscany tween 1489 and 1538 and belonged merchant Geri Spini, and houses the and has just over 370,000 inhabit- to the Strozzi family, the historic chain´s central store and the Museo ants and covers around 100 square rivals of the famous Medici. It is Ferragamo (www.museoferragamo. kilometers. Pedestrians reign almost now occupied by the Palazzo Strozzi it). This museum has a collection of absolutely in the beautiful central Foundation (www.palazzostrozzi. 13,000 shoes produced between the streets which is where we will begin org) and the Strozzina Contemporary 1920s and 1960s, the year in which our exploratory mission of this Mecca Culture Center (www.strozzina.org), the founder of the brand, Don Salva- of the Renaissance. The Santa Maria both of which are benchmarks in tore, died. Novella square is located next to collections and examples of Renais- the Grandi Stazioni railroad station sance and contemporary art. HAS THE walk made you a little hun- and is dominated by the basilica of gry and thirsty? Take a break in the the same name (www.chiesasanta- THE BEST suggestion for shopping is Caffè Giacosa (www.caffegiacosa. marianovella.it). This church, which a walk in the Via Tornabuoni, a cor- it). It was founded in 1815 and is the was built between 1245 and 1470, ridor right in the center where you birthplace of the famous Negroni combines Gothic and Renaissances will find a concentration of Italian drink (gin, Martini rosso and Cam- elements and contains works by and European luxury brand stores. pari), created in the 1920s by the bar- masters such as Giotto di Bondone, At the end of the street, in front of man Fosco Scarselli. Another good Sandro Botticelli and Giorgio Vasari. the River Arno, is the Palazzo Spini tip is Procacci (www.procacci1885. The second stopping point on the Feroni, the headquarters of Salvatore it/it/florence). The menu has meals, route is the Palazzo Strozzi, one of Ferragamo, the label found on some wines and local snacks, such as the highlights of Florence´s Renais- of the world´s most desirable shoes. Tartuffe rolls which go very well with

WIKIMEDIA COMMONS sance architecture. It was built be- It was built in the 18th century by the a glass of Prosecco.

REVISTAPIB.COM.BR 63 Globe-Trotter: EXPRESS TOURISM

If you have a whole day... REGARDLESS OF creed or religion, the Santa Maria del Fiore Cathedral is a must for everyone who comes to Florence. This building, known as Il Duomo, impresses visitors with the beauty of its Gothic-Renaissances lines designed by Arnolfo di Cambio and its sheer size. It was built between 1296 and 1436 and is the third-largest Christian temple in the world, ranked behind only St. Peter´s basilica in Rome and Sr. Paul´s Anglican cathedral in London. HERMÍNIA MOREIRA 1 THREE OF its structures deserve special attention. The dome, that was designed by Filippo Brunelleschi, is 45.5 meters in diameter and is adorned inside with frescoes HANDOUT by Giorgio Vasari and Frederico Zuccari, representing the Final Judgment. Another attraction is the belfry situated at the right of the frontage that was designed by Giotto di Bondone and has seven bells. The Baptis- tery is also separate from the cathedral and is famous for its three bronze doors, one of which was made by Lorenzo Ghiberti, and dubbed the Door of Paradise by Michelangelo Buonarroti, thanks to its absolute perfection. The originals were replaced by replicas in 1990 and are in the Museo del Duomo museum (www. ilgrandemuseodelduomo.it).

FROM THERE, we proceed to the Piazza della Signoria, the city´s central square where there are two postcard views of Florence — the Fontana di Nettuno fountain, dating from 1563, and the Palazzo Vecchio building, formerly 3 5 the Palazzo della Signoria. The original building work on the palace got underway in 1299 but the current format of the complex that, the former seat of the Florence 3 government, is the result of expansions that extended up to the 16th century.

TO END the day in style, I suggest some stops. First try a Negroni in the Caffè Cavalli (www.cavallicaffe.com). The combination of gin, Martini rosso and Campari was created in Florence by barman Fosco Scarselli 95 years ago and made the old Cafè Casoni, the predecessor of Cavalli, famous throughout the world. Afterwards, have dinner at Gustavino (www.gustavino.it) or Alle Murate (www. allemurate.it). The first is a new restaurant and wine bar that presents standards of Tuscan cuisine at honest prices, such as Beef tartar with mustard in grains, for around 13 euros. In the Alle Murate, which also specializes at regional cuisine, a good suggestion is lamb stew

with pecorino fondue and fried artichokes for 35 euros. HANDOUT

64 REVISTAPIB.COM.BR 1 Perfect couple: Ponte Vecchio bridge and River Arno

2 Tempting the If you have a whole weekend... taste buds: San Lorenzo market SORRY PARIS, Rome, Madrid and New York. Little Florence has the highest per capita index of art masterpieces in the world, most of which are 3 Caffè Giacosa: concentrated in three museums that are obligatory stops: Galleria degli birthplace of Ufizzi, Accademia and the Bargello. Reserve half of the Saturday and the Negroni Sunday for them. drink

4 Stop in Lucca: THE VERY first in the list is the Uffizi (www.uffizi.com), one of the 10 Eva Perini most important addresses in the art world. The Heart of the Renais- enjoys the sance, as the gallery is known, has 93 rooms spread over two floors. Villa Mansi

WIKIMEDIA COMMONS The highlights on the first floor are the areas devoted to Titian, the main 2 painter from Venice in the 16th century, and Caravaggio (1571-1610), the 5 Tartare with absolute master of the chiaroscuro style, the contrast between light and mustard: shade. Rooms some steps above are dedicated to three geniuses whose main dish at Gustavino ACERVO PESSOAL works you must visit: Michelangelo Buonarroti (1475-1564), Leonardo da Vinci (1472-1519) and Sandro Botticelli (1445-1510). 6 Door of Paradise: MICHELANGELO IS represented by the cheerful lively colors of the Holy perfection, Family (1504). Da Vinci´s works include The Baptism of Christ (1472- according to 4 1475), The Annunciation, from the same period, and the Adoration of the Michelangelo Magi (1481-1482). In the midst of so much divine inspiration, The Birth of Venus by Botticelli (1482-1485) stands out as perhaps the most famous piece of art in Florence´s main museum. The tempera on the screen marked a milestone in the Renaissance as it was the movement´s first large work (1.72m x 2.88m) to present a non-religious subject albeit one with a classical appeal.

THE ACCADEMIA delle Belli Arti (www.accademia.org) was founded in 1784 and has a smaller collection. However, its main attraction is a great rarity in all senses: the famous statue of David by Michelangelo. The sculpture, that stands 5.17 meters high, was begun 4 in 1501 and consolidated the esteem of the artist who had already created the Pietá 6 (1499). Other works by him can be seen in the Museo del Bargello (http://uffizi.firenze.it/ musei/?m=bargello), a reference point in Renaissance sculptures.

THE STORES in these museums offer a great treasure trove of souvenirs. If you still have any money left, have a look at the Oltrarno, a district on the other side of River Arno. Workshops and stores there offer a wide range of items, including ceramics, jewelry, and the traditional Florentine marbled paper. Back in the center, I suggest a walk to the Mer- cato di San Lorenzo market (http://mercatocentralefirenze.wordpress.com), for a snack and drink. The sandwiches in Da Nerbone are tempting, particularly the Lampredotto made with offal.

IT IS also worth heading to Lucca, 60 kilometers from Florence. The city was founded more than 2,000 years ago and has the maximum 3 star ranking from the Michelin Guide. Among the attractions are the San Michele and Amphitheater squares, the San Frediano basilica, the Museo Puccini museum (www.giacomopuccini.it) and, one of my favorite areas in the region, the Villa Mansi, with glorious gardens. To end the day, try the Bistecca alla Fiorentina steak in the Antica Locanda di Sesto restaurant (www. anticalocandadisesto.it). As for drink, there is nothing more Tuscan than a Chianti wine.

FOTOTECA ENIT/VITO ARCOMAN Salute e buon appetito!

REVISTAPIB.COM.BR 65 Globe-Trotter In Transit Serious math between beach and forest TIFFANY KEARNEY*

As I write this I am literally in of doctoral and master’s degree transit - flying from my adopted graduates over the years. city of Rio de Janeiro back to my I’ve been active professio-

hometown of Boston. Half a world nally in Brazil for a number PERSONAL COLECTION away, in Seoul, celebrations are in of years as an international full swing for winners of the Fields business consultant. I’ve seen the as a generator of knowledge and Medal - the most prestigious prize country mature as a market — and research. in mathematics, akin to a Nobel Pri- it’s still evolving. I attended the Artur Ávila is a product of the ze. Of the four winners, two stand Massachusetts Export Expo last purposeful environment that has out to me: the Iranian, Maryam year, and when I told people I work been fostered at IMPA (for an ac- Mirzakhani, the first woman to have with Brazil everyone had something cessible synopsis of his work: http:// won; and the Brazilian, Artur Ávila, to say about how difficult it is to do bit.ly/1BcP0lm). Widely known as the first Latin American. A native of business there, the regulatory rig- the top math research institute in Rio, 35 year-old Artur splits his time marole, the Custo Brasil, etc... Latin America, IMPA welcomes stu- as a researcher between France’s To put it in perspective, Brazil is dents and researchers from around CNRS and IMPA, Brazil’s National a young but maturing market. The the world. Within dynamical syste- Institute of Pure and Applied Ma- U.S. and Europe have been impor- ms, Artur’s main field of work, some thematics, where he completed his ting and exporting for hundreds consider it the best worldwide. Phd when he was 21. of years; Brazil, for most of its his- At a talk in Seoul, Stanford Uni- I first went to Brazil in 1999 in tory, was protectionist. It’s true that versity professor Eric Hanushek support of rolling out Nextel across doing business in Brazil is not easy, said that if Brazil could raise stu- the region. On that trip I met my but considering it is now the sixth dent scores on the OECD’s Pro- husband, Enrique Pujals. From Ar- largest economy in the world with gramme for International Student gentina — and a researcher at IMPA more than 15,000 companies expor- Assessment (PISA) test by 25 points, himself —, when Enrique told me he ting abroad means it’s not impossi- that would translate into a 270 per- was a mathematician, I had a hard ble. As Brazil looks outward more cent increase in GDP. With places time equating Rio as a place for aca- and more, I have also begun looking like IMPA taking the lead, the po- demics. Coming from Boston, whe- at Brazilian companies that want to tential for Brazil is great. In 2018, re education has industry status, it export. the International Mathematical was difficult for me to imagine re- Similarly, considering IMPA Union will award the next round of searchers doing serious math from still counts its existence in terms Fields Medals to another set of re- a place located on the edge of the of decades, how far it has come as searchers. As further testament to largest urban rainforest in the world an institution is inspiring. IMPA is IMPA’s importance, and evidence of above some of the world’s most fa- an example of how Brazil can gain Rio’s significance as a mathematical mous beaches. The stereotypes I international recognition not just as center, the Marvelous City has been held in my North American mind a exporter of commodities, but also chosen to host. quickly dissolved when I visited IMPA, perched above Rio’s idyllic Botanical Gardens. Founded in 1952, * when Brazil had only a handful of Tiffany Kearney ([email protected]) is a business consultant PhD’s, IMPA molded itself into a and Brazil market specialist. She lives between Boston and Rio with Enrique and global center of excellence in math their daughter, Emilia. research, having formed hundreds

66 REVISTAPIB.COM.BR linhascomunicacao_pib_ingles.indd 1 16/09/14 18:17 Organized by:

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