Go Further with the Help Of

THE BEST OF Year IV

¤ 5,00 BY CHIEKOTOKYO AOKI Number 11 Nov/Dez 2010

, totum R$ 12,00

HOW TO GO FURTHER WITH THE HELP OF

On the agency’s menu, more than 900 events every year for promoting Brazil and its companies around the world INTERVIEW INNOVATION SCIENCE Luiz Olavo Baptista, Suzano wants to The Brazilians the lawyer who be a giant in the race to is to defend Brazil in energy from recreate the at the WTO biomass cosmos

Contents

66 RICARDO TELLES

40COVER How ApexBrasil works to convince the world of the quality of the products made in Brazil Nely Caixeta HANDOUT

CERN 24 30 HANDOUT 80 10 76

HANDOUT

HANDOUT THE YEATMAN JNTO BEACON GLOBE-TROTTER 30 The Peruvian fi rst lady, Pilar Nores de García INTERNATIONALIZATION 76 EXECUTIVE TRAVEL ANTENNA has begun to export initiatives for combating 58 São Paulo works to integrate the Latin New York at the price of a banana, an island of 10 Hand-made toys for the children now win over the poverty American capital markets into the happiness in Abu Dhabi and new European market Nely Caixeta BMF&Bovespa airline routes to Brazil. Andressa Rovani Eliane Simonetti Marco Rezende TECHNOLOGY A VIEW FROM CAPITOL HILL 32 Suzano wants to reach its 100th BUSINESS EXPRESS TOURISM 22 What Brazil gains or loses from the new anniversary as a world biotechnology 64 Decades after the arrival of the Brazilian Corporate leader Chieko Aoki combines the traditional complexion of the United States Congress giant by investing in innovation multinationals in Africa, now the banks are and the modern tracking the route from Tokyo Flávia Carbonari, Washington Alessandro Greco discovering the continent Chieko Aoki Andressa Rovani SCIENCE INTERVIEW IN TRANSIT 24 Meet the Brazilians who are part of the European 54 Luiz Olavo Baptista, the lawyer from Brazil at 68 ANALYSIS From student in Oxford to the World Bank, physics center which reveals in laboratory what the WTO, says that the country knows how to Hit by the crisis, Spain begins to wake up to the adventures of a Brazilian in the happened after the Big Bang act to defend its commercial interests the challenge of overcoming its limitations struggle against global warming Suzana Camargo, Geneva Nely Caixeta Adriana Setti, Barcelona Eduardo Ferreira

4 P I B P I B 5 Editorial

TOTUM EXCELÊNCIA EDITORIAL A good Nely Caixeta PIB BRAZILIAN COMPANIES GO INTERNATIONAL pilot A TWO-MONTHLY MAGAZINE FOCUSING ON INTERNATIONAL BUSINESS AND ECONOMICS

Odessy. This is how one could define the trials and Publisher tribulations of a company in the throes of internatio- Nely Caixeta • [email protected] editor nalization. They involve adventures, facing the unex- Marco Rezende pected, dangers and concessions. This is because to win Contributors to this edition Alessandro Greco, Andrea Flores, Paris, Andressa Rovani, over the world is no easy task. It is necessary to find a Adriana Setti, Barcelona, Armando Mendes, Chieko Aoki, Eliane Simonetti , Eduardo Ferreira, window that is lit twenty-four hours, seven days a week Flávia Carbonari, Washington, for your product, in the right country, at the right time, Suzana Camargo, Zurique and W.F.Padovani Photo Editor and where the language of business is spoken. Max Nogueira For the small and medium-sized Brazilian companies, however, the tran- sition between being a national plant in a small pond, and a deep-rooted tree designer Renato Dantas in the foreign markets, is eased by an experienced gardener in this field: the cover Brazilian Trade and Investment Promotion Agency – or just ApexBrasil. In Marcelo Calenda Copydesk and Preparation 2010 alone, this institution has promoted the presence of Brazil at more than Mary Ferrarini 900 events worldwide – at a pace of almost three international shows a day. Translation Christine Puleo, John Jardine, Kevin Wall and The example of ApexBrasil supports a recent survey carried out by the Paul Anthony Harold Steele Inter-American Development Bank: that with a trade development agency ADVERTISING working for it, a country can go a lot further much faster. The analysis re- INTERNATIONAL AND BRAZIL vealed that opening an office abroad to support foreign trade results in an (55-11) 3097.0849 [email protected] increase in exports of 5.5 times more than when the same task is designated Av. Brigadeiro Faria Lima, 1903, cj. 33 to an Embassy. The cover story of this edition shows just how this formula Jardim Paulistano - 01452-911 - São Paulo - SP PRINTING is being applied by Brazil. Editora Parma But it is not just products that provide depth to Brazil’s presence abroad. DISTRIBUTION IN BRAZIL Support: DPA Cons.Editoriais Ltda. Suzana Camargo writes, from Geneva in Switzerland, about the tireless (55-11) 3935-5524 – [email protected] Exclusive distributor: Fernando Chinaglia search by scientists from all around the world – of whom 78 are Brazilian Direct sales: TecnoCourier – São Paulo – at Cern, the European Center for Nuclear Research, to reproduce what Where to buy past copies: direct from the publisher happened after the Big Bang, when the universe was created. One of the Administrative Consultant Luiz Fernando Canoa de Oliveira main drivers that helps Cern work so well is international collaboration. [email protected] We also include an interview with Luiz Olavo Baptista, a lawyer from EDITORIAL CORRESPONDENCE Av. Brigadeiro Faria Lima, 1903, cj. 33 São Paulo who has been retained by Itamaraty to represent Brazil in the CEP 01452-911 - São Paulo - SP World Trade Organization disputes, is committed to fighting in the trenches [email protected] Signed articles do not necessarily represent for Brazilian international trading rights and to defending the country’s the opinion of the editors. Totum reserves interests with the World Trade Organization. the right to edit or summarize letters. This is the first edition to include a new section called Beacon, through Legally responsible journalist Nely Caixeta (MTb 11 409) which readers can follow the latest inspirational ideas being talked about PIB – Brazilian Companies go International around the world. The first person interviewed was Pilar Nores de Garcia, is published by Totum Excelência Editorial Av. Brigadeiro Faria Lima, 1903, cj. 33 an Argentine economist who launched a program to fight poverty in Peru, CEP 01452-911 - São Paulo - SP which has since been copied by the United Nations. To close, we suggest (55-11) 3097.0849 - [email protected] Print run for this edition a special stop in Tokyo for travellers visiting Japan with business in mind, Portuguese – 15.000 to contemplate the perfect combination between the traditional and the English – 5.000 modern, with the expert Chieko Aoki as their guide. Print run audited by Nely Caixeta

6 P I B Letters Ano IV Number 11 Ago/Set 2010

¤ 5,00 R$ 12,00 totum

OASIS Why European multinationals are offsetting their losses Dear editors in Brazil I am a student of foreign trade and recently had the opportunity to read some of the English version issues of PIB. The magazine, with which I first became acquainted during

a visit to the Brazilian embassy in Caracas, HALAL DIET has some interesting content, is instructive How to export food to Islamic POSITIVO countries and makes for very agreeable reading. Teaching the Congratulations to the entire team at PIB. world a new way of learning HENRY JOSÉ NUNEZ LA URBINA AN ANT ARMY CARACAS VENZUELA After assembling direct sales networks in Latin America, Natura is now internationalizing its production line 06/09/10 04:08 Students and lecturers of the Foreign Trade course at Methodista appreciate the content 01-PIB11-capa-ENG.indd 1 of PIB magazine which combines information and knowledge at the speed required by lacuna in the Brazilian media. I was happy to see the world of international business. that the magazine’s editor is the journalist, Nely PROFESSOR JOÃO ALMEIDA SANTOS Caixeta who I knew many years ago in the interior COORDINATOR OF THE FOREIGN TRADE of Minas Gerais. When there is competence, COURSE AT METHODISTA knowledge and a will we can become leaders. SÃO PAULO – SP ROSA MUBARAK I have been reading PIB magazine since its ELETROBRÁS – FURNAS first edition. When I changed jobs I made RIO DE JANEIRO – RJ a point of introducing the magazine at the When I was 18 years old, 62 years ago, my new address and making it known to all. It mother, who was German, won a competition for is good to see Brazil to the fore in the world readers sponsored by Selections of the Reader’s and PIB helps perform this function very Digest. Now it’s my turn to write to you, not well through the various topics covered and to compete with my mother’s achievement interesting questions examined. PIB is a obviously, but to say how happy I am each time magazine which makes you want to read I receive my copy of the bi-monthly magazine. thanks to its color scheme, interesting front It is comprehensive for those who have an cover headlines and creative reports. interest in politics, business, handcrafts and CIDA MARTINS fashion. After reading the magazine from cover ARENT FOX LLP/ ATTORNEYS AT LAW to cover, I pass it on to a friend in the United WASHINGTON DC States. PIB is an exceptional magazine. Even the advertisements are a cut above the average. After buying PIB at a newsstand in downtown Rio, I was impressed with the magazine’s LISA MATULA reports both in relation to the content of the SÃO PAULO - SP subject matter as well as the quality of the graphic design. All this makes for a first class To acquire past editions of PIB, please send your publication, filling an important and unique request via email to [email protected].

Please address letters and e-mail to: The Editor, PIB – Avenida Brigadeiro Faria Lima, 1903, cj 33 – São Paulo, SP, 01452-911 – Brazil; [email protected]

8 P I B Antenna 1 Gamar toys: 2 Creators ANDRESSA ROVANI made in four and creature: languages national wine has icon Made by hand

Made with care and love, the fi rst wooden toy fashioned by electronic engineer Maurício Gilson went straight to the hands of Marco Antônio, then just two years old. This not only made the boy happy, but also led to a spark of inspiration for Maurício, a future entereprneur in search of an idea. And so Gamar Educational Toys was born in 2004. In the following year, due to efforts by a client, the products ended up at a fair in Paris, France. “The reception was so good there that in the following year, 2007, we were invited to participate 2 in the event, all expenses paid,” said Maurício, who handles the businesses alongside his wife, Mari Borba. The fair was not just for toys, but A gem of Brazilian wine also for fair trade products. The alternative path Brazilian drink has gained the representative it deserves. has shown to be an advantage. Gamar toys Created by the Campana brothers, developed by Brazil since their creation, have been concerned with homeware company Tramontina, and launched in Milan, sustainability, safety, and quality, and have won over Europe. “We are pioneers in having the the “Laçador” corkscrew, or loosely translated into Eng- European EN71 standard for toy safety,” he says. lish, “the lasso-er” corkscrew, promises to be an ambas- Today, the pedological guides that come with sador of drink throughout the world. “We thought of a the toys-which include fl ying dragons, Don gem,” said Humberto Campana. The new representative Quixotes, cows, and clowns, among its 86 models- is already in action. The image of the corkscrew became are produced in four languages in addition to Portuguese: English, French, German, and an icon of the new brand “Wines of Brazil” created as part Spanish, and represent Gamar around the world. of the institutional campaign of Ibravin (Brazilian Wine The next step is the United States, where Gamar Institute) for the international market, with the concept intends to arrive in early 2012. “In February, I will “Open your mind, open a Brazilian wine.” participate in the Toy Fair, in New York, as a visitor. 1 The next year, I hope to have a stand there.” PICTURES: HANDOUT

10 P I B P I B 11 Antenna

1 Café Jacu: In 2 Curitiba: 52 square Celebrating Michelin Guide meters of green restaurants per inhabitant 3 Deborah Colker Brazilian Group: Success in Washington Culture

Brazil really is on the rise. In the Will Paris last months, a series of events celebrating the Tupiniquim surrender? culture-going way beyond samba, soccer and caipirinhas-sucessfully Considered the most expensive made its mark on the capital of coffee in the country--with 90% the USA. Georgetown University, of its production sent abroad- the oldest Catholic university Jacu Bird Coffee, made with beans in North America, brought to ingested and eliminated by the bird its Second Festival of Brazilian of the same name, has its eyes on Literature big names in national the wallets of the French, and their contemporary literature, such as demanding palates. With a local Critovão Tezza and Marçal Aquino, partner, the Camocim Farm, which to a full audience. But it was not produces the beans in Espirito just Brazilian books that grabbed Santo, the company intends to attention. The Fourth Festival of make France its principal consumer, Brazilian Cinema, in turn, became a spot previously occupied by a cult moviehouse in Washington, Japan. The path is through drawing more than 2,000 viewers investment in gourmet coffee to see prize-winning titles like labels. “Our objective is now to sell “Estômago” (Stomach) by the produce to restaurants, hotels Marcos Jorge, and “Meu Nome and cafeterias,” says the owner of Não é Johnny” (My Name is the Jacu brand, Henrique Sloper Not Johnny), by Marco Lima. Araújo. If relying on visibility, In the Kennedy Center,the renown

the success of the business is ADAM JONES local center for concerts, music certain. “We are in eight Michelin 2 lovers met for fi ve consecutive Guide restaurants, two of them nights for a tribute to Choro. Also with two stars,” says Henrique. The Champion of Green there was choreographer and dancer Deborah Colker, from Rio, In an era of global warming, a German company Siemens who packed the hall for three Brazilian city has been drawing and the research group of nights, presenting her famous attention from worldwide the British magazine “The choreography MIX, which gave specialists in climate change. Economist”, considered her international prominence Curitiba, with its 52 square rates of energy effi ciency, in the 1990s. This is proof that meters of green area per carbon dioxide emissions, Brazil is gaining ground on the inhabitant, was elected the soil and building use, traffi c, American cultural scene.

HANDOUT greenest of 18 Latin American waste, water, waste water (Flavia Carbonari, Washington) cities evaluated by the new situation, air quality, and 1 Green City Index (GCI). The the environmental agenda index, presented by the of the local government. FLAVIO COLKER

12 P I B P I B 13

Antenna 1 1 Lourve 2 Report, 3 DHL: Museum, the result partnership in Paris: of two with BB will Emerging Tourists Fill the right years of facilitate destination discussion export

Democracy on the rise Paris In a year of presidential and legislative elections in Latin America, the Organization of American States (OAS), headquartered in Washington, and the United Nations Development Programme (UNDP) launched the report “Our Democracy.” In a detailed analysis covering the longest period of democracy in the history of the region, the report of more than 250 pages follows the evolution of the political processes in 18 countries. The report points out the largest defi cit in the current Latin democracies-- in addition to inequality and poverty--the growing problem of public security, indicating the reduction of homicides in São Paulo as an example of success in the continent. The report is the result of two years of discussion among 850 political and social leaders, of which 60 were Brazilians of note, such as Dilma Rousseff, Fernando Henrique Cardoso, José Sarney, and José Serra. The document (in Spanish) can

be accessed at www.nuestrademocracia.org (Flavia Carbonari, Washington) HANDOUT 2

Expressing

Brazil is increasingly sending more of its citizens According to Valter Patriani, president of CVC, 40 Exports abroad. While the crisis in Europe persists, the million new consumers will enter into the Brazilian Small Brazilian businesses are robust Brazilian economy has encouraged its tourism market in the next four years. In 2009, the becoming more agile in exporting residents to travel abroad. According to recent company sold 12 million trips to French cities. their products abroad. An agreement data from the French Tourism Development Agency (Andréa Flores, Paris) between the Banco do Brasil and (Atout France), Europe expects to receive from 1 logistics and express transport 15% to 20% more Brazilians this year compared company DHL Express has simplifi ed to last year. According to the agency, these foreign trade operations, integrating percentages will continue growing in the next services and solutions of the two ﬁ ve years, with the arrival of 36 million visitors. institutions. With the partnership, This is good news for France: in the ﬁ rst quarter clients will be able to completely of last year, Brazilians spent 72% more in the manage export processes and country than during the same period of 2009. control costs of remittances among Part of this movement is linked to the desires different service options. The of the emerging middle class in Brazil: they are partnership also includes Brasil teachers, public workers, small business owners, WebTrade (BWT), an electronic and independent professionals who, with increased system for foreign trade produced spending power, are seeing holidays abroad by the Bank of Brasil for Brazilian becoming a reality. CVC, one of the largest tourism exporters which offers various operators in Latin America, will end 2010 having functionalities. Users will have a sent 50% more Brazilians to France than last special discount for remittances year. To guarantee an attractive price, trips are of merchandise abroad using the short, and generally sold in 4-night packages. services of its partner carrier. KURT MUEHMEL ANTONY NAGELMANN BENH LIEU SONG 3

16 P I B P I B 17 Antenna Abayas made in Paraíba Apontador 1 It was at the Pure London fair Honored this year, in the English capital, that the Natural Cotton Color An application that guides Group from the Brazilian city of drivers through traffic in João Pessoa received a proposal major Brazilian cities has been it could not refuse from a Saudi recognized internationally. Arabian buyer: to transform the Apontador Trânsito, developed for blouses and tunics of natural cotton smartphones by the Apontador that it produces into abayas-the group, is one of five champions in traditional garment that covers the m-Media & News category of Arabian women from head to toe. the World Summit Award (WSA), The group, formed by eight and also elected as the most cooperatives from state of Paraíba, creative and innovative company went to work as soon as it received in its category. The goal of the the request for 150 pieces, among event, which takes place in mid- them abayas, bags and clogs. Of the December in Abu Dhabi, is to FLÁVIO TÔRRES DE MOURA/EMBRAPA ALGODÃO modifications requested--the Saudi select and release the best online 1 buyer sent a model to the factory- applications from around the world. were longer pieces, with full-length “To receive the WSA is proof that

sleeves and covered necklines. HANDOUT we are headed in the right direction, With half of the payment already 2 always with the aim of connecting made, the Brazilian pieces were the user with information around sent at the end of November to the him,” said Rafael Siqueira, director buyer. Instead of traditional black, of technology for Apontador, the abayas from the Northeast In the Folds of the who represents the company of Brazil are of light colors, due in the United Arab Emirates. to the unique characteristics of Business 3 the cotton utilized. Developed in A delicate technique of folding paper has caught the the laboratories of Embrapa, the attention of international buyers: kusudama, a specific thread is naturally colored, and type of origami. This was the method that motivated therefore, does not need to be Andrea Iogolia to open, eight years ago, a company dyed, doing away with any sort of that produces, on average, 1,000 folded papers per chemical tinting and saving 70% month. In addition to servicing corporate clients and FLÁVIO TÔRRES DE MOURA/EMBRAPA ALGODÃO of water used in conventional marketing activities, a small part of the company’s 1 processes. The Renaissance lace, production is destined for Argentina, the United States, made by hand by embroiderers, and Portugal. Kusudama Arte em Origami (Kusudama is highly valued abroad. Origami Art) is now prepared to drive its international “For being an exclusive product, sales abroad with a new site--since the physical store

ecologically sustainable and only represents 5% of sales. “Foreign buyers value HANDOUT made by the community, we have this type of product much more and and they find the strong acceptance abroad,” said store while doing a Internet search,” says Andrea. To 1 Cotton pieces find Patrícia Félix, who supervises facilitate export, she is studying new ways of making Arab buyer one of the cooperatives involved. it easier for customers abroad to pay for the product. Buyers include Portugal, “Today, the purchase can take up to 20 days to clear. Chile, Canada, France, Japan The process is very bureaucratic,” she points out. 2 The art of 3 Apontador: and now, Saudi Arabia. kusudama: application bouquet made honored in

TIBERIO of paper the Emirates

18 P I B P I B 19 Antenna 1 Game 2 New for export: façade success of for Puket: Musigames looking abroad

Dressing the World Between 2008-2009, Puket has doubled the number of its stores in Brazil, which today totals HANDOUT 90 locations. After reformulating its concept store, recently launched in São Paulo, and with the domestic market well covered, the hosiery and lingerie brand now wants to expand its international presence. The company already has two locations in Venezuela and wants to grow through franchises in Panama, Colombia, Mexico, Chile and Argentina. CHICO PORTO 1

Good, but room for improvement

The export promotion agencies for Latin America and the Caribbean have been successful in supporting In the game the expansion and diversifi cation of exports, but they could be even more effective. The statement is part The Brazilian gaming industry is closely following the development of the study “Odyssey in International Markets”, of the international market. Four national companies, in addition by the Interamerican Development Bank (IDB). to Softex (the Association for Promotion of Excellence in Brazilian The analysis reveals that the opening of an export Software), participated in Game Connection, one of the sector’s major promotion offi ce abroad results in export increases fairs, which took place in France in November. One of these companies 5.5 times higher than when the same task is assigned was Musigames,from the state of Pernambuco, which is currently in the to an embassy. “Agencies are like GPSs that offer process of intense follow-up on projects fi nalized during the event. “The direction to companies on their odyssey through fair was really great for us. We had important meetings with our partners unknown routes when venturing into international and we met new publishers with whom we must try to work with in the markets,” says the study’s author, Christian Volpe, future,” said Américo Amorim, executive director of Musigames. who evaluated the effectiveness of agencies from the According to a survey by the Softex Observatory, between 2005- period 2000 to 2007 in Peru, Costa Rica, Uruguay, 2009, the volume of export of Brazilian electronic games grew 270%. Chile, Argentina and Colombia, with Brazil sitting out. Musigames, riding this wave, has been exporting since they were A calculation for Peru exemplifi es the study, created in 2007. Today, 70% of the company’s earnings come from the and shows that the growth rate of exports United States and Europe, where Musigames exports its iPhone and was 17% higher for companies supported by iPad games, such as Drums Challenge and iMusic Puzzle. “We will soon the local agency. The study also shows that be launching our fi rst games for social networks,” said Américo. promotion agencies are much more effective when supporting the entire export process. ZE TAKAHASHI 2

20 P I B P I B 21 A View from Capitol Hill News from the US with a Brazilian slant FLÁVIA CARBONARI Pros and cons of the new Time is US Congress for Brazil money While US liberals and left-wingers from all over the world The new Congressional structure lamented the defeat of Democrats in the recent US Congres- could have an immediate impact on sional elections, Brazilians were asking themselves: and the main themes that interest Brazil: what about us, does it make any difference? In the opinion the tariff of US$0.54 on ethanol im- of analysts and defenders of Brazilian private interests in ports,01 the tax credit of US$0.45 per Washington, yes it does. But not necessarily for the best. gallon for companies mixing ethanol In principle, a House of Representatives with a Republican into their gasoline blend and renewal majority, such as the one that was elected, could be very of the Generalized System of Prefer- advantageous for Brazil due to the party’s ideological align- ences (GSP), which benefi ts around ment with free trade. However, in times of crisis (the same 10% of exports to the US (see right). one that took votes from Obama) and a weak USD (which These three trade incentives expire favors US exporters), the appeal of protectionism could hold at the end of December. The transi- greater sway. In a Wall Street Journal/NBC News poll, 52% tion period between the elections of respondents said that the opening of the US economy and the new legislature is known as hurts the country, and this percentage rises to 61% among the “lame duck” – when there is no respondents who identify with the Tea Party - the ultracon- time or political authority to make servative movement that crushed the majority parties and key decisions. If there is no debate, became the new political force in the country. It’s no coinci- the incentives disappear. Sources in Where does dence that not even Republican Party candidates defended Washington are confi dent this will free trade in the election campaign. happen, but they say the ethanol lobby is preparing a counter-attack: a proposal, already in discussion, to Brazil stand? convert tax credits into direct subsi- ARCHITECT OF THE CAPITOL dies for producers. 1 Try sleeping with all Weaker Here! this noise going on adversary In the last US academic year, which If Congress doesn’t pull its fi nger Despite the defeat in the ended in May 2010, 8,786 Brazilians out, the Generalized System of Prefer- House of Representatives, Demo- attended classes in universities and ences will expire. In 2009, Brazil was crats kept their majority in the educational institutions, 0.2% more the fourth most benefi ted country Senate, which helped to weaken than last year. In terms of the number by the program, which applies lower one of Brazil’s main adversar- of Latin American students taking customs tariffs to products from ies in US Congress, Republican classes in the US, Brazil trailed only emerging markets. Of the 230 coun- Senator Chuck Grassley. Senator Mexico. But the previous academic year tries that the US imports from, 131 for the State of Iowa, the US’ (2008/2009), with an already weaker are benefi ted by the GSP program. largest producer of corn (ethanol USD and the Brazilian economy resist- For this reason, Brazil isn’t the only raw material produced in the ing the crisis, witnessed the biggest one interested in its renewal. The ma- country), Grassley is heading the 1-year percentage increase (+15.7%) in jor threat now comes from Haleyville, strong lobby fi ghting to preserve the data series compiled by the Insti- a small town from Alabama that is subsidies for US producers and tute of International Education. The home to a sleeping bag industry. The to remove Brazil from the GSP number of Americans attending classes company says it is suffering at the program. With the renewal of in Brazil has been growing since 1995, hands of a competitor in Bangladesh, a third of the Senate, Senator when the Institute started compiling its which exports to the US. Members Grassley will stand down as annual report. In 1995, there were 386 of Congress representing Alabama opposition leader in the House 1 Capitol 2 University Americans studying in Brazil. Today, State have entered the dispute and Finances Commission, which has Hill: are the in the US: there are 2,777. are threatening to block renewal of major infl uence on tariffs, import changes good 8,786 Brazilian SHUTERSTOCK the GSP program. quotas and trade treaties. for Brazil? students 2

22 P I B P I B 23 Science

1 Damázio and colleagues: recreating the Big Bang

he highly concentrated the control rooms of the enormous Considering the size of the work person to the right of center. Everything is larger than being carried out by Cern, it’s easy the photo of this page, life at the Cern center, a bona-fide to understand why scientists from wearing glasses, dark city where buildings and facilities all over the world want to be there. clothes and a blue-rib- spread out over kilometers and At the European lab, these scientists Tbon work pass around his neck, is cross over national borders. Offi- are looking to recreate, on a micros- the Brazilian Denis Damazio, an cially, the Cern center is based in copic scale of course, post-Big Bang electronics engineer from Rio de Geneva (that’s where its mail is sent conditions. In the control rooms, re- Janeiro who works at the European anyway), close to the border with searchers are unable to hide their 1 1 Organization for Nuclear Research France. But some of the Cern buil- excitement. “We’ve just entered (Cern) – the world’s leading resear- dings are located on Swiss soil and into a new phase, where heavy ions ch laboratory in nuclear physics – in others in French territory, while the will be sped up until they collide”, Geneva (Switzerland). It could well underground circular says David Chinellato, the event of the be that Denis and his colleagues are, ring of the accele- with a smile. The Bra- in the photo, closely observing the rator bores through Brazilian zilian physicist (27) moment after a collision of very the subsoil of both researchers with boyish looks is high energy subatomic particles – countries. 2,500 rese- working on his PhD the work for which the giant Cern archers work at Cern. are at Cern. With a de- super-accelerator, known as the If we include visitors working gree from Unicamp, LHC (Large Hadron Collider), was and service providers, on experiments Chinellato has been projected and constructed. around 6,000 people visiting Switzerland This is not just any event. For pass through the at Cern non-stop since 2008. centuryScientists from all over the world are trying to recreate a laboratory scientists and engineers with a who- Cern center each day. On his first trip, he of what happened after the “Big Bang”, the birth of the universe. le host of degrees and specialties, we The services and support buildings spent seven months. Last year, he are talking about THE EVENT. It is are always packed, while demand worked there for “only” four mon- A group of Brazilians are participating in the experiment in the represented in the form of colored has already exceeded infrastructure ths. This year, he’s back for another European center of nuclear research in Switzerland images (i.e. those smaller ones on – at lunch time, for example, it’s hard stint. “Here you learn new ways of the page to the right) which appear to get a table at any of the center’s thinking”, he says. SUZANA CAMARGO, GENEBRA FOTOS: CERN on the monitors spread throughout three restaurants. There are currently 76 resear-

24 P I B P I B 25 Science 1 Accelerator 2 Toledo and 3 Map of the ring: 27km Chinellato: on machine: in diameter the frontier the subsoil of of science two countries

1 2 3

chers from Brazil working at Cern. so-called basic particles (the smal- energy with each new movement Giant cranes were used to transport With a degree from the Federal rooms – involving three daily shifts, Our young physicist from Campi- lest units of mass and energy kno- until they eventually collide. After thousands of tonnes of metal to University of Rio de Janeiro, Dama- lasting 8 hours, 24 hours a day. “We nas is involved in an experiment wn to man, the “little bricks” that a collision, the physicists use special the underground. “The hole where zio is no novice at Cern. He worked at have to be alert to any alteration or involving the ALICE detector, one form the atoms – basic elements of detectors to analyze the new, resul- the ATLAS is located is the largest the European physics center during malfunctioning in the accelerator, of Cern’s four main projects. The matter), these physicists will learn ting particles. cavern constructed by man”, says his PhD studies, before moving on explains physicist Carley Martins research center is also conducting more about the laws of nature. In Damazio (35) helped build the Damazio. Such a gigantic cave was to the Brookhaven National Labora- (from Rio de Janeiro State Univer- another three large experiments order to see the events triggered by LHC. He is understandably (and needed to house this “multi-use de- tory, a nuclear physics center in the sity – UERJ), another Brazilian on (ATLAS, CMS, LHCb) and two the collision of particles at very high visibly) proud. The Cern super-ac- tector”, which is capable of tracing US. Our Brazilian researcher, who is the team. It’s a very tense and tiring smaller ones (TOTEM and LHCf ). speed, the LHC produces two bea- celerator is one of the most specta- the trajectory and energy of the par- part of the ATLAS experiment team, job because it demands total concen- Each project is investigating a diffe- ms of subatomic particles (hadrons) cular works of engineering known ticles generated in its innards. It wei- continues working at the Brookha- tration”. Only researchers who meet rent aspect of how the universe was - protons or heavy ions -, which tra- to man. The Large Hadron Collider ghs 7,000 tons, is 46 meters long and ven Center (US). Like Damazio, all a minimum quota of working hours created and how it works. Upon clo- vel in opposite directions inside the (LHC) lies in a 27km circular tunnel, 25 meters high, and cost 540 million the +2,000 LHC researchers work can put their names to scientific ar-

sely studying what happens with the circular accelerator, accumulating some 100 meters below the earth. FOTOS: CERN Swiss francs. in observational shifts in the control ticles on the Cern experiments.

BRAZIL’S CANDIDACY

CERN CURRENTLY has 20 member countries (all Our participation would cost the government coffers project and, shortly, there will be a need for investment (National Network of High-Energy Physics), there is European), which contribute annually to Cern’s budget approximately USD10mn per year. in new machines and technologies. “It would be great a certain lack of coordination and this means a loss of proportionally to their national GDP. In practice, the A commission of the Ministry of Science and Tech- for Brazilian industry, as it would provide a boost to our effi ciency”, he says. main fi nanciers are Germany, France, United Kingdom nology has already visited Cern and delivered a letter of technological development”, says Carley Martins. Upon becoming a member country, just investing and Italy. The LHC super-accelerator alone cost 5 billion intentions. “Brazilians made a very strong contribution However, the participation of Brazil is not consensus money isn’t enough. You have to show scientifi c pro- Swiss francs. In 2010, the budget to keep the center to the ATLAS and ALICE experiments”, says the physicist among scientists. Alejandro Toledo, from USP, asks if it gress. For fi ve years after signing the fi nal contract, Cern functioning stands at 1.1 billion Swiss francs. Rüdiger Voss. “It would be very good if Brazil became a wouldn’t be better to use this money to send a greater performs constant assessments at the research bodies Recently, Cern created the possibility, for the fi rst member country.” In doing so, Brazil will be able to parti- number of researchers to the center. “What we need is of the new member country, in order to certify that a time, of accepting member countries from outside Eu- cipate in internal bidding processes to supply equipment. more people”, he says. He criticizes the lack of centrali- practical return is indeed being obtained from the money rope. It is a way of collecting more funds for the project. This could be one of the most advantageous points for zation and organization of Brazilian projects. “Despite invested. Using optimistic forecasts, Brazil could become Brazil was the fi rst country to run for the new position. the national industry, mainly since Cern is a long-term the work of Rede Nacional de Física de Altas Energias a Cern member country in 2012.

26 P I B P I B 27 Science 1 Cavern of the Atlas detector: measuring particles Carley Martins (58, from Espí- longer a gap between Brazilians and rito Santo) has a wealth of interna- researchers from other countries”, tional experience, having worked at Martins believes. “There IS a diffe- the Angra dos Reis Nuclear Plant, rence in research investments from the Fermi National Accelerator La- one country to the other.” Denis boratory (US), and taken his spe- Damazio has a personal project to cialization course in Italy and PhD further integrate Brazilian research in the US. “We are in the midst of a centers with daily events in Switzer- very important moment, as we are land. He is organizing a live Internet witnessing scientific and historical broadcasting channel, and already progress”, he says. Another Brazi- has the support of the ATLAS team lian scientist with vast experience and the federal universities of Rio is physicist Alejandro Szanto de de Janeiro and Minas Gerais. He ASTRONOMICAL Toledo, ex-director of São Paulo is promising the first live Internet NUMBERS University’s Physics Institute. With broadcast in March or April 2011. previous stints at research centers “My idea is to transform this into km circumference

in Germany, the US and Cuba, To- CERN something permanent and that, in 27 is the extension of ledo (65) stresses the importance of the future, secondary schools can the tunnel where the LHC being there. “We’re part of a project also access this science channel”, is located; that has reached the intellectual li- he states. mit of knowledge”, he says. One of the engines that make meters below the Most Brazilians working at Cern Cern function is precisely inter- 100 earth is the ave- are students and professors from fe- national collaboration. Damazio’s rage depth of the tunnel, and deral and state institutions, such as team includes Russian and US 175 meters in some points; USP, UFRJ, Unicamp and UFMG. To scientists. In Martins’ team, Greeks, participate in the project, for stays Turks, Germans and French work of six months to a year in Switzer- 1 side by side. Despite the cordiality billion Swiss francs was land, each researcher has to fork out and friendship between everyone, 5 the cost to build the super- around 10,000 Swiss francs. With sicist Chinelatto, whose passion for technology and knowledge to aca- research. However, in order for ba- there is a certain degree of compe- accelerator; the exception of Damazio, who- physics was inherited – both his demic life in Brazil”. sic research to be developed in Swit- tition between the teams involved se participation is financed by the parents are also physicists. At the There is no doubt that Cern is zerland, new technologies had to be in the four main Cern experiments million is the number US laboratory Brookhaven, Brazil’s end of next year, he will finish his forming a new generation of profes- developed. And this is what many – ATLAS, ALICE, LHCb and CMS. 600of collisions caused scientists have to pursue financing PhD. “To do what no-one else has sionals in the area of science. “Each countries bring back with them Healthy competition, you could say. by the accelerator in only one on their own, and ever done. This will year, around 1,000 PhD theses are from participating in the project – “It’s logical that everyone wants to second; obtain study grants be an unforgettable compiled at the European Center cutting-edge technology. In order make a big discovery”, says Martins. at foundations such Using learning process”, for Nuclear Research”, says the Ger- to build the LHC, several countries, One of them, the dream of many is the as Fapesp, Faperj, Internet, he says. In the opi- man Rüdiger Voss, from the Cern including Brazil, contributed. The physicists, would be confirmation -271.3º tempera- CNPQ or Capes. scientist wants nion of Toledo, one physics department. “Only 10% of result is that the new technologies of the existence of the mysterious ture required to keep the LHC The data obtained of the main benefits these theses are used at the center, used are now put to work at USP, boson of Higgs, an elementary par- running; from the LHC project to link Cern of working at Cern all the rest is knowledge that is dis- for example (though, of course, on ticle responsible, in theory, for pro- can spawn master’s to Brazilian is that it will qualify seminated worldwide. The disco- a smaller scale). viding mass to other particles. The- billion kilometers is the and PhD degrees, universities and usher in a new veries and technologies created by The physicist Carley Martins, oretically conceived by the English 10distance that a beam of which will qualify generation of Bra- Cern go well beyond physics, says working out of Cern for the past physicist Peter Higgs in the 1960s, light travels in around 10 hours, Brazilian physicists zilian researchers, Voss. “They can be used in the phar- year, is in direct contact with the it was never detected in an experi- sufﬁ cient to go to Neptune and internationally. “Being at Cern is scientists and physicists. “We will maceutical sector, in computing, in team of researchers from the Sta- ment. The LHC experiment exists back; like being in Formula 1, with state- be a more scientifically and cul- engineering.” Cern works with ba- te University of Rio de Janeiro. At (among other scientific challenges) of-the-art technology”, points out turally evolved country”, says the sic research, which seeks to expand weekly meetings, he passes on news to try to find it. If it can’t, physicists ,000 tonnes is the Alejandro de Toledo. There are lots scientist, one of the leaders of the the frontiers of knowledge. The la- and information on the latest deve- will have to think of another answer 100 weight of the ALICE of young people working at the la- ALICE experiment team, while boratory does not perform applied lopments and results obtained from to a basic question: what gives mat- detector; boratory, such as our Brazilian phy- adding that “we are transferring research, the most practical form of the super-accelerator. “There is no ter mass?

28 P I B P I B 29 Beacon 1 Pilar : 2 In action: 3 With Local initiatives and innovations in a global world elected inspecting a peasants at humanitarian new installed a village in leader of cookstove the Peruvian the world Altiplano

The meaning of being first lady

How economist Pilar Nores de García’s initiatives for fighting poverty in the Peruvian Altiplano led to their inclusion in a worldwide United Nations program ANDINA/JHONY LAURENTE HANDOUT NELY CAIXETA HANDOUT 1 2 3

magine a blonde and beau- ed a unique initiative to improve the a further several hundred million A graduate of the University of In addition to the United Na- asked for my help because we are tiful woman born in Argen- living conditions of families living on people elsewhere in developing Córdoba with a master’s degree in tions’ seal of approval, numerous the only ones to have sufficient on tina, married to a popular the Peruvian Altiplano: the replace- countries, these archaic cooking economic and social development, countries have already shown inter- the spot experience”, said Pilar in a South American president, ment of the traditional cookstoves in methods are the cause of 1.9 mil- Pilar is the mother of four children est in introducing the system. “They recent interview. who dedicated her work to areas of extreme poverty for more ef- lion premature deaths very year from a marriage of 34 years to the Since its implementation, Sem- Ihelping the poorest members of the ficient structures where smoke from around the world. Such deaths in- current Peruvian president, Alan brando has successfully achieved a population. If you thought of Evita the fuel burnt is no longer inhaled by clude those of children that die from García. A naturalized Peruvian, she 50% reduction in bronco pulmonary Perón, you were wrong. An econo- home dwellers. The system is simple chronic illnesses such as bronchitis, is daughter of a traditional Argen- RESULTS ACHIEVED BY illnesses and has also significantly mist specializing in social develop- but the results are sur- pneumonia, lung can- tine family – her father was a gover- THE SEMBRANDO reduced chronic infant malnutrition ment, Pilar Nores García, 61, is today prising. cer, cardiovascular nor of Cordoba province. In August PROGRAM in 70 thousand homes throughout one of the principal leaders in the The reduction in Pilar begins disease and low birth of this year, she and her husband, Peru (see more in the box). In ad- thousand people fight against poverty in Latin Amer- infant mortality on the weight. World Health who she met in Madrid in the sev- dition, each stove costs about 200 to export her attended over ica. While in Brazil President Luiz Peruvian Altiplano has Organization esti- enties, hit the headlines with the 280 sóis (approximately R$ 120). The simple model four years Inácio Lula da Silva has achieved thrown light on the mates indicate that announcement of their separation. international success of its first international recognition for his ac- Sembrando program for fighting exposure to smoke This however has not stopped the thousand new cook- lady is one more component in the complishments on the social front, which is now seen as misery to the from rudimentary Peruvian press from continuing to 70 stoves installed optimism which has been contami- not far away in Peru – a country an important tool in stoves and open fires treat her as the country’s first lady. nating Peru, which following a long world reduction in cases of with a third of its population living reaching the United is the fourth worst Over the past few months, she has period of stagnation, has been grow- bronchial pneumonia below the poverty line –, Pilar is Nations’ Millennium risk factor for the travelled to several countries to talk 50 ing at close to Chinese rates. After and 38% in gastrointestinal beginning to export her model for Development Goals. As a result, the health of the inhabitants of these about the success of her crusade and a short interruption due to the in- illnesses fighting misery to the whole world. UN chose the initiative for world- countries. “This is a campaign to convince international institu- ternational financial meltdown, the Implemented some four years wide replication through the Global which makes us very proud since we tions to adopt the model and finance sóis (about R$ country is expected to end the year ago, the idea gave rise to the Sem- Alliance for Clean Cookstoves, a ma- have finally managed to attract the it. In October, Pilar was elected 200120) is the cost of recording growth in excess of 8%. brando program over which Pilar jor public-private partnership with attention of leading international Humanitarian Leader of the Year a new unit With this expansion and the surgical presides and maintained through the aim of replacing open fires and institutions that work with health at the Bravo Business Awards cer- annual reduction execution of projects for combating donations from the Peruvian govern- dirty stoves in one hundred million problems”, said Pilar in an interview emony, sponsored by Latin Trade 1.1 of 1.1 tons of CO2 poverty, Peru is on the way to being ment and international institutions homes throughout the world by 2020. with a Peruvian radio station during magazine of Miami, and an event at emissions by each installed one of the highlights in economic such as the Bill & Melinda Gates The principal means of cooking the launch of the alliance in partner- which awards are made to outstand- new stove and social development in Latin Foundation. The Program has adopt- for about six million Peruvians and ship with the UN in September. ing personalities in the region. America over the next few years.

30 P I B P I B 31 Technology HANDOUT RICARDO TELES 1 2 Innovation is in its DNA

he journey of Suzano, the world’s second largest pulp producer, By fusing new processes and internationalization, Suzano wants has been one of innovation ever since it was founded by the to celebrate its 100th-year anniversary not just as a global Ukrainian immigrant Leon Feffer back in 1924. The company paper giant, but as a biotechnological heavyweight as well was a global pioneer in producing eucalyptus pulp on a large 1 Eucalyptus 2 Pellets: scale, in the 1950s, and making printing and writing paper from from the betting on ALESSANDRO GRECO Tnothing more than eucalyptus pulp. 50 years on, innovation remains firmly Mucuri plant, crushed wood PICTURES: RICARDO TELLES at the roots of the company and is now helping it increase and expand in Bahia for the future

32 P I B P I B 33 Technology

1 2

operations, on foreign soil. chosen by Suzano to obtain the and led to the creation of Suzano five plants in Brazil, commercial of- be more precise, two weeks before, create the possibility of directly At the end of July, Suzano an- final product, which is the innova- Energia Renovável. In 2015, this fices in Argentina, the US, England, with the acquisition of the UK com- assessing the DNA of the trees and nounced that it should become the tive part. It created the so-called company should account for 20% Switzerland and China and around pany FuturaGene, the world’s sec- genetically modifying them – an world’s largest producer of wood “energy forests”, in which eucalyp- of the Suzano group’s business. All 4,000 employees, Suzano spent the ond largest plant-dedicated biotech unrivaled strategy in the search pellets in 2013, with annual pro- tus was developed with great care of the production will be shipped last 18 months working with vari- company (eucalyptus, acacias, pine, for eucalyptus that produces even duction and exports to produce pellets to the EU, which has fixed targets ous partners, includ- cotton, alfalfa) for more per hectare while consum- of 3 million tonnes of with high burn pow- to reduce carbon gas emissions by ing the consultancy US$82mn. The pur- ing fewer natural resources. And these small pieces of Suzano should er and a very short 20% by 2020 and expand the share firm McKinsey, to Together, chase complements this is without considering the im- crushed, processed become the planting cycle (2-3 of renewable energy sources. With answer one question: Suzano and its strategy for 2024. pact that biotechnology will have and dehydrated world’s largest years in small areas). a total investment of approximately what does it want to FutureGene In the last 8 years in terms of new frontiers for the wood – the world’s “No-one else is doing US$800mn, the new company will be in 2024, when it Futuragene, which business (something still difficult largest pellet com- wood pellet this in the world. We invest in three units in Brazil’s celebrates its 100th make it possible has laboratories in pany, the Finnish producer in have dramatically Northeast to produce the pellets, birthday? It reached to directly access Israel, China and state-owned com- 2013 reduced our produc- each one with capacity to produce one answer: a global trees’ genes in the US, created a pany Vapo, produces tion cost”, said An- 1 million tonnes by 2014. paper, pulp, biomass database featuring 1 million tonnes/year. tonio Maciel Neto, The company’s increased focus, and biotechnology thousands of genes 1 Investment 2 Center Making pellets, used to substitute CEO. “Competitiveness here starts by entering into biomass energy, company. from various trees. Together with in the plant: of Forest coal in the energy production pro- in the laboratory.” didn’t occur overnight. With an- It entered the biotechnology over 1,100 different clones of euca- productivity Technology:

cess, is nothing new. It’s the path The pellet plans are ambitious nual net revenue of R$4.1bn in 2009, PICTURES: RICARDO TELLES sector at almost the same time. To lyptus developed by Suzano, they in sight investment

34 P I B P I B 35 Technology

to quantify). According to Maciel, 1 Research unit: the company continues to weigh biotechnology up its options in the segment. “We in action are looking at options related to our 2 Maciel: biggest asset, its forest base, such as competitiveness pulp ethanol”, he says. begins in the Biotech R&D work is the future laboratory for this sector, according to FGV Rio University professor Álvaro Cyrino. “Shortly it should create a competitive differential”, he says. With 350,000 hectares of planted eucalyptus area, the company plans to double this in 2015, due to its ex- pectations of greater productivity. “A gain of 10% means 70,000 less hectares of land. We are already talking about gains of 50%. Have you any idea what this represents in terms of costs?”, asks Maciel. “Producing much more in smaller areas means less use of water and fertilizer, for example.” In successfully blending innovation and internationalization, Suzano puts itself in an interesting position. “The Brazilian companies that most invest in innovation are also the most internationalized”, said Carlos Arruda, head of the 2 Innovation Center and professor at Fundação Dom Cabral. Interna- eucalyptus trees in 7 years (versus the opportunity for consumption says Raphael Bidermann, a pulp tionalization triggers stronger de- 21 years! in the rest of the world). growth in China and India. To meet and paper equity research analyst mand in a more competitive market, In this scenario, the union of this demand, Suzano is construct- from Bradesco. And he rounds off: resulting in the need to innovate. innovation and internationaliza- ing two new plants, one in Mara- “Suzano should benefit from this “I would say it is a virtuous cycle”, tion will provide a further boost to nhão and another in outlook. Currently says Arruda. the company’s exports. Currently, Piauí, which should 40% of its revenue However, biotechnology and it derives 55% of its revenues from become operational 55% comes from pulp and biomass energy wouldn’t be a busi- abroad. By year-end, this will be in H2 2013 and 2014, of Suzano’s this share could rise ness opportunity if weren’t for the 60%, which ignores its entry into respectively, with an revenue comes to 60%”. fact that the knowledge accumu- the biomass sector. In other words: investment of R$8bn. Judging by the lated by Suzano in over 45 years of in 2024, the percentage share of The strateg y from abroad, company’s track re- eucalyptus research is intrinsically revenue coming from abroad prom- seems correct. In and this cord of success in its related to this opportunity. This ises to be even greater, while a part 3Q10, the price of should rise innovation process- technology plus favorable climate will of course continue to come pulp was 50% higher es, which started and land puts Brazil at the forefront from paper and pulp. Regarding the than in the same pe- transforming euca- of this sector. Suzano has posted former, the strategy is to focus on riod of 2009, reaching an average lyptus into paper decades ago, it 50% productivity gains in the last 15 Brazil and Latin America and seek value of R$ 1,300 per tonne. ”China should reach its 100th-year anni- years – and the sector has achieved out new uses and products. In the is consuming a lot of pulp. The sce- versary with a piece of good news.

the amazing feat of growing new PICTURES: RICARDO TELLES case of pulp, the focus is to embrace nario is conservatively optimistic”, We never stop innovating. 1

36 P I B P I B 37

Cover

Trade fairs, Fashion shows: to sell what Brazil makes

2 ©3 ©2 ©1 ©1 ©

©1 ©1 ©3 ©1 ©2 The seven labors nyone visiting the zil House was the kickoff point for of Brazil- a food and gastronomy HANDOUT;

2 World Expo in Shang- publicizing the country as the next fair - were promoted, in addition to © hai or attending the host of the World Cup. A project by showings of soccer films and book of ApexBrazil World Cup in South the architect and set designer Grin- displays. In the same way, the Bra- Africa--the two great go Caria, the Brazil House served as zil pavilion at Expo 2010 Shanghai The agency promotes the country’s brand, supports the globalA events of the year--had a a showcase for Brazilian technology, combined expositions and events

HANDOUT APEX-BRASIL; chance to visit the Brazilian pavilion food, and design companies. Dur- for the general public with busi-

internationalization of brazilian companies and works to 1

© at Expo 2010 in China as well as the ing the Cup, events such as Flavors ness promotion among executives convince the world of the quality of products made in brazil Brazil House 2014 in Johannesburg. GLÓRIA FLÜGEL/HANDOUT APEX-BRASIL 3 *Collaboration of Alessandro Greco, Andressa Rovani and W.F. Padovani. PICTURES: NELY CAIXETA* © Launched in mid-July 2010, the Bra-

40 P I B P I B 41 Cover 1 Business 2 Alessandro Centers: in Teixeira: strategic areas in Dilma’s team BELGIUM (BRUSSELS OFFICE)

RUSSIA (CN MOSCOW) WHAT IS IT POLAND (CN WARSAW) CHINA (CN BEIJING) ABOUT BRAZIL? The Integrated Sector Projects UNITED STATES ARAB EMIRATES (CN MIAMI) (CN DUBAI) of ApexBrasil support the export efforts of 80 productive sectors, CUBA (CN HAVANA) grouped into six large areas:

Foods, beverage and agribusi- 1 ness ANGOLA (CN LUANDA) 1 Biscuits, wines, coffees; organic products, fruits and juices; meats; equipment, products and services THE PLOT THICKENS for the sugar-ethanol sector. The number of ApexBrasil events has soared... Home and construction 2006 2010 ...and the result was a better 2 Furniture, ceramics for coat- Events 394 940 performance by the compa- ing, handicrafts, glass and crystal, 01 Companies supported 4 699 12 937 nies involved in the program. decorative objects, metallic objects Sector projects 46 80 Evolution (%) of the percentage Sectors supported 52 80 share of ApexBrasil companies in and ornamental items. total Brazilian exports: Events to attract 0 357 * investments 2006 2010 Entertainment and services Market studies 0 57 * 6 .5 22.67

MAX NOGUEIRA/HANDOUT APEX-BRASIL Architecture services; fi lms, * 2009 data 3 2 TV content and new media; design; music and musical instruments; from the two countries (see more the agency, which is dedicated to to compete outside of Brazil. “The emerging companies. “China is in- Minas Gerais, director of business. contemporary arts on page 48). promoting the exportation of goods work that the agency is doing is creasingly assuming the role of the The result was the creation of a The common thread that brings and services, attracting investments, Herculean,” says Luiz Aubert Neto, steam engine driving the world, but strong effort directed to the Asian Machines and Equipment such showcases to the world is an and supporting the international- president of the Brazilian Associa- we find here a total lack of actions continent, which has been trans- 4 Auto-parts; aerospace; bread arm of the federal ization of Brazilian tion of Machines and Equipment for this country and formed into a driver and dough; medical and dental government that companies. This year (Abrimaq), whose members are for Asia in general,” of worldwide trade equipment; printing; agricultural most Brazilians are “The work alone, the number of trying to recover the position Brazil says Ricardo Schae- Brazilian and the region of the machines and tools; oil and gas; not familiar with: events organized by lost in the world market (read more fer, director of Man- most pointed growth. electro-electronics the Brazilian Agency of the Apex will likely sur- on page 50). “The help given by agement and Plan- Eximbank The shift towards for the Promotion of agency pass 900 (see details them is priceless.” Created 12 years ning at Apex, one of is almost emerging markets Fashion Exports and Invest- is herculean”, above). At any time, ago from the “rib” of Sebrae, which two natives from the ready came on top of the 5 Textiles and knitting; compo- ments (ApexBrazil, the agency can be si- provides entrepreneurship support, southern state of Rio steep recession in the nents for leather and footwear; Bra- for those new to for- says Aubert, multaneously show- Apex underwent a transformation Grande do Sol who for developed countries, zilian jewels and stones; personal eign trade), responsi- of Abimaq ing off Brazil and its starting in 2007. The agency grew came to flesh out the launching started in 2008 by hygiene products, perfumery and ble for planning and products at Anuga (a in size and ambition and broadened administration team, the global financial cosmetics. finalizing Brazilian food fair in Cologne, its scope of activities, and today con- along with fellow crisis. For the presi- participation in the two events. The Germany), at the Cannes Film Fes- solidated into seven main axes (see southern native Alessandro Teix- dent of Apex Brazil, it is important IT and Health mission given to the agency by the tival, in France, or at a World Expo notes on next page). eira, the agency’s president, and to recognize that there are growing 6 Software and IT services; Ministry of Development, Indus- like the one in Shanghai. The Brazilian pavilion at Expo Mauricio Borges from the state of markets, and Brazil cannot waste pharma-chemicals and pharma- try and Foreign Trade (MDIC), to Apex Brazil gives special atten- Shanghai was one of the most eye- ceuticals; biosciences; exports and which it is linked, is clear. Partici- tion to small and medium-sized catching representations of these ** Promotion and internationalization, Attraction of Investments, Studies in Commercial investments of companies linked to pating in international fairs and businesses that lack the means to changes, which provoked a shift Intelligence, Skills Training, New Business Platforms, Tradings Project and Strategic Support incubators or technology parks. events is part of the daily work of make the big investments necessary in the agency’s direction towards and Logistics.

42 P I B P I B 43 Cover 1 Indy Paddock: 2 Trade fair a show case in Luanda: in the United Brazilian buses States in Africa

time. “It is necessary to open Africa 3 Brazil Home up. China is already doing this. The Design:

market growing at 4.5% or 5.5% per HANDOUT furniture in year is not Europe, it is Africa,” said Buenos Aires Alessandro. “Ask a Brazilian busi- nessperson, what is the population of Malaysia and Indonesia together - few know that it is more than 120 when the entity was directed by million, and Nigeria has 120 million ex-minister DorotheaWerneck that inhabitants.” forms the backbone of its activities. And what about the new govern- In partnership with business enti- ment that will take over in January ties, the PSIs join together many 2011? For Alessandro, the issues re- promotional activities in agreement lated to foreign trade and interna- with the needs of each sector--they tionalization of Brazilian companies could be, for example, missions to

will have an increasingly important HANDOUT APEX-BRASIL other countries, business roundta-

role. This is more than mere spec- HANDOUT HANDOUT APEX-BRASIL bles, support for Brazilian compa- ulation or personal desire. Close 1 2 nies at international fairs, or visits to president-elect Dilma Rousseff candidate and coordinate her gov- of Waipa, an entity that joins togeth- tige and relevance,” he says, tight- countries, it will centralize foreign from foreign buyers to Brazil. The since they both worked together ernment program. er investment promotion agencies lipped but diplomatic. trade operations currently spread agency also reformulated its team. in the government of Olivio Dutra On the other hand, Alessandro in 162 countries. So, what will he be Among the new items on the out among Banco do Brasil, the Na- Three years ago, 60 people worked (PT-RS), he took a leave of absence gained proximity to the national doing starting in January? “I am go- agenda of the new government, the tional Development Bank (BDNES), at Apex. Today, there are more than from the presidency of Apex Brazil business milieu and its international ing to work in and outside Apex so establishment of the Brazilian Ex- the National Treasury, and various 300 qualified employees-96% hav- to work on the campaign of the PT peers through his role as president that foreign trade gains more pres- imbank is certainly at the top of the ministries. ing college degrees and 56% with a list. The long-promised and delayed This is the future. Even to arrive post-graduate degree. bank only needs a few details final- at this point, Apex Brazil had to lit- “We had to turn Apex Brazil on ized, and will most likely be head- erally reinvent itself, improving its its head,” says Alessandro. New po- HONEY FOR THE WORLD quartered in Rio de Janeiro. Repli- main tool for action--the Integrat- sitions were created, salaries were cating the model used by developed ed Sectoral Projects (PSI), created adjusted to market rates, and the en- FOR THREE years, the couple per month in 2002, Nutrisem- runs (together with ApexBrasil) a Vilson Thomé and Débora Schlem- pre now exports 12 containers a sector project to boost Brazilian per Thomé, from Itajaí, sold honey month. This volume represents honey exports. PRECISION CUT sachets door-to-door in Santa approximately 240 tonnes of honey Catarina. Since demand was good, per month. “Since it is a fresh food, FOUNDED IN 1989, Loktal Medi- in 2005, we didn’t even have the Loktal now has 55 employees and they realized they were looking at a we are looking at large volumes”, cal Electronics, a maker of elec- certification of the European Com- exports around 35% of its produc- promising market and started up a says Débora, who exports the prod- tronic surgical equipment from São munity”, recalls Uriel Binembaum, tion to 21 countries in Europe, honey outpost, supplied daily uct to the US and Europe. Paulo, has taken part in interna- commercial director and one of Latin America, Asia, the Middle by the producer and which Nutrisempre won the 2010 tional trade fairs and business mis- the founders of Loktal. Still, they East and Africa. In the opinion of sold bulk volumes. Apex Prize for best small company sions organized by ApexBrasil since had a competitive price for their the executive, Apex is almost like Created 20 years ago, it was in the category of Brazilian compa- 2005. This year, Loktal won an flagship product (a high-frequency an incubator of export companies. only in 2002 that Nutrisempre nies that most grew their exports. Apex Prize in the Market Opening electronic scalpel used in precision Their support is fundamental, he decided to expand its market to It was a period, according to category, in the segment of Small microsurgeries) and they sold all believes. “Brazilians still have their beyond national borders. The Débora, of major learning: “We had and Mid-Size Companies. their samples. doubts and fears when it comes to strategy paid off. Since it started to look for suppliers from all over The company had to venture In the following year, they venturing beyond national bor- exporting, the company has seen Brazil, seek credit and learn every- abroad with its image and courage returned with certification and re- ders...and one reason is language its revenues soar. “We had to adapt thing about this area, from a simple in order to prove that its products alized that they had been approved barriers”, he says. “But now we to quantities that we hadn’t oper- invoice to settling FX rates.” To had international quality and price in the initial test. “Europe opened are maturing, we are bolder; we no ated before in the local market”, explore foreign lands, the company standards. “The first time that we its doors to us when it believed in longer fear the competition. We can recalls Débora. From one container had the support of Abemel, which visited a trade fair in Dusseldorf our technology”, says Binembaum. get there”.

3 HANDOUT

44 P I B P I B 45 Cover 1 Herchcovitch, 2 Jewels Rodrigues of Manuel and Slama Bernardes: in Moscow captive clientele

THE TURN OF BRAZILIAN JEWELS

IN ADDITION to being internationally renowned for the diversity and abundance of the precious stones extracted from its soil, a few years ago Brazil started to be noted abroad for the design of its rings, earrings, bracelets and necklaces. The participation of Brazilian companies at international trade fairs (one of the main channels of visibility abroad) has

HANDOUT APEX-BRASIL led more value-added jewels to 1 drive overall sector exports. Much tity, previously housed in two floors do Schaefer. “Apex was not control- kets, has been reinforced by the of the kudos should go to the Pro- in the center of Brasilia, gained a ling results. Today it is possible to hiring of new analysts through a Export Program implemented 12 home for itself in a building that monitor the export volume of each selective process. “Apex can only years ago by IBGM in partnership is a showcase for its projects. And of more than 10,000 companies that have superior performance if we with Apex-Brasil, which enables there’s more: a great deal of insti- are part of our projects.” have competent professionals,” says around 340 Brazilian businesses tutional memory had been lost due The Commercial Intelligence Ricardo. The problem is that an of- to display their products to the to poor record-keeping. This is no department, which is dedicated to fering of unattractive positions led world. Companies such as Vianna longer the case, says director Ricar- prospect studies of potential mar- to the agency losing staff to private and Manoel Bernardes (from Belo Horizonte), Bruner (Pirassununga) and Denoir (São Paulo) now have a loyal client base spread over the world, including neighboring Latin American countries, the US and

INNOVATION IN THE ELECTRICAL ENERGY GRID MARCIO RODR/HANDOUT Arab countries. 2 A PRODUCER of software and It participates in the Integrated find [software] suppliers, The result is there for all to equipment for electrical energy Social Project for Exporting Soft- but now it does, and has indeed see. Exports rose from US$239mn didn’t have the instruments neces- partnership also offered numer- grids supported by ApexBrasil, ware and Services, in partnership found them.” in 2000 to US$438mn in 2008 sary, which Apex now provides us ous actions in the areas of training, Treetech Sistemas Digitais was the with the Pro-Brazilian Software Another sector project of Apex- (+83%). This year, the sector ex- with, to support businesses in their adaptation of products, design, winner of the national phase of the Association (Softex). Brasil that targets the sector (IT+/ pects growth of around 10%. “The export strategy in all the phases of creation of sector image and direct FINEP 2010 Innovation Award, in In the dispute for this market, Outsourcing) plans to make Brazil support of the institute to exporter the process.” promotional activities abroad, the category of mid-sized com- you have to row against the tide. one of the three biggest suppliers companies was a specific move, The project aims to diversify mainly at fairs and road shows. The panies - awarded by the federal The normal image of Brazil abroad of outsourced IT services for inter- featuring no global strategy”, markets and expand exports in companies involved in the project governments Financier of Studies isn’t one of a producer of state- national clients, alongside India says Hécliton Santini Henriques, each one of the segments – jewels, account for over 80% of total sec- and Projects division, in recogni- of-the-art technology. But things and China (offshore outsourcing). president of IBGM. “At that time we precious stones and metals. The tor exports. tion of innovative companies and are starting to change. “With the To achieve this, it will have to focus people. Treetech develops its own contribution of entities such as on details of basic training. Among technology and is present in 33 Apex, our software products now other initiatives, the project seeks industry or to other government business roundtables, and other in- trip Mauricio Borges made to Rus- countries. It is a good example of have a globalized image, which to offer English courses to IT stu- bodies. In a training effort, once ternational trade situations. sia with Alessandro, years ago. “We a company integrated with Apex is how it should be”, says Djalma dents at schools and universities. a year all agency employees lock However, detailed studies are discovered that the Russians were efforts to make Brazil a renowned Petit, director of commerce at Sof- At the end of the day, it is in Eng- themselves in a hotel near Brasilia not always needed to detect the po- not familiar with Brazilian stones,” and respected exporter of high- tex. “Japan, for example, would lish that most global IT services for two days for a strategic align- tential of a market. Opportunities said Mauricio. “From our side, we technology products and services. previously never think of Brazil to are offered. ment meeting, using games to simu- are sometimes right in front of our knew that they had a strong market late the work of market prospecting, eyes. This is what happened on a for high-quality jewels. It was a per-

46 P I B P I B 47 Cover 1 Carlinhos 2 Shanghai: de Jesus and line to go into junior Chinese the Brazilian samba dancers pavilion

Inside the construction, they saw already overtaken the US as the pants), but it mainly represented ENTRY TO BRAZIL IN SHANGHAI a colorful, noisy and interactive main trade partner of Brazil and, a boost to Brazilian exports of presentation of Brazil. The work of in only 7 years, the volume of higher value-added products - fect marriage.” For Hécliton Santini UNDER THE intense heat of what Brandão. The wait was long, but putting all this together and also trade between the two countries in an event packaged in an Henriques, president of the Brazil- is almost the summer season, visitors seemed excited at the organizing an intense program of rose from US$4bn in 2002 to avalanche of soft power, in the ian Institute of Gems and Precious hundreds of Chinese people were virtual world tour offered by the business activities, all organized US$36bn in 2009. form of 119 presentations and Materials (IBGM), working togeth- patiently waiting their turn to pavilions of the 192 countries and backstage, was down to Apex- The growth is impressive, but workshops of artists such as er with Apex Brazil brought results. enter the Brazilian pavilion of the 50 international entities spread Brasil, which made the Brazilian there is still lots of room to grow Mauricio de Souza, Mart’nália, “Exports grew more than 80%,” he Shanghai Expo (the global trade across the 5,000km2 Expo area. pavilion in Shanghai the most ap- in the Chinese market. Brazil rep- the choreographer Carlinhos says. “In 2009, with the worldwide fair concluded in October and Many take replicas of a “passport” pealing face of the agency’s focus resents only 1% of international de Jesus and Carlinhos Brown, crisis, there was a reduction of 26%, which was attended by 73 million to be stamped upon leaving each on emerging markets. China is the purchases by China and growth in watched by over 33,000 people. but this year a rise of about 10% is people). It was a normal work- stand, a fun idea taken seriously by number one candidate to become trade between the two countries The cartoonist Maurício de Sousa expected.” On the same trip, Mauri- ing Friday in Shanghai, the city the Chinese who, in their over- the flagship of the agency’s new fo- was not accompanied by diversifi- drew for children and spoke to cio and Alessandro had the oppor- that best represents the spirit of whelming majority, have never cus. “In 10 years, China and Brazil cation of exports. China continues university students alongside Mei tunity to watch a local fashion show. the new monumental China (and stepped outside their country but will be one of the largest five global buying mainly basic products from Zihan, a very popular children’s “It was all very basic,” Borges recalls. global superpower candidate). who now, thanks to the economic economies”, says Alessandro Teix- Brazil, such as soy, pulp and fuels. book writer in China. And the two Soon after, they organized an event Nevertheless, there was a mas- boom, are starting to venture into eira, president of the agency. “They For Brazil, its time in Shanghai Carlinhos, in separate events, in Moscow to show the creations of sive line formed around the Brazil foreign lands. are two large markets in full-blown was an opportunity to promote made the Chinese forget their local designers like Alexandre Her- stand – a rectangular box coated Around 2.6 million visitors visit- development, with high growth the image of Brazil in China and shyness and dance to Brazilian chcovich, Walter Rodrigues and with green-painted wood, made ed the Brazilian pavilion, one of the and social recovery indices, which organize rounds of business meet- songs in the theater aisles and on Amir Slama, of Rosa Chá. by São Paulo architect Fernando 15 most popular ones at the Expo. are growing in tandem”. China has ings (with over 1,500 partici- the outdoor stage of the pavilion. In addition to sector projects, Apex has invested as well in special projects that use large events as hooks for business platforms. Take for example, Carnival in Rio de Janeiro. “It is the biggest party on the planet, but we use it to promote business,” says Ricardo. Dur- ing the days of celebration, Apex Brazil receives buyers, importers, and decision makers from around the world at its VIP section in Sa- pucaí. Some of them leave the VIP area and descend onto the streets, joining in the parade with the dancers and musicians: this encourages business deals, according to the agency. “There have been cases of companies that were going to invest in other countries, but then decided to bring the investment to Brazil,” Ricardo comments. Another example is the Formula Indy car races that have become a tool for promotion of Brazilian businesses, with a focus on the Ameri-

PICTURES: HANDOUT APEX-BRASIL can market. While China, as well FEOS MOD NE CONSEDMILIAE UTLAT. 1 2 as Asia as a whole and Africa are

48 P I B P I B 49 Cover 1 Business 2 Apex round table employees in Shanghai: during an annual face to face meeting

3 Borges and Schaefer: movement in favor of emerging nations PICTURES: HANDOUT APEX-BRASIL GLÓRIA FLÜGEL/ DIVULGAÇÃO APEX BRASIL 1 2 3

growth markets, the agency does 2008, but all the sectors supported improvement. “Resources are scarce. But there are difficulties to over- lem of promotion, but it is still not through our website and deposited not want to lose sight of the United by Apex suffered a smaller setback To avoid overlapping of activities, it come even with more traditional getting through, then there may be the money in the account,” recalls States as an economic partner. The with a drop in export value of 16.9%. is important to improve the interac- products that are many times re- a training problem.” From this con- Beatriz Willhelm Dockhom, owner idea is simple: a stand set up at the Or, in other words, despite the cri- tion with public and private teams lated to a lack of knowledge among clusion, Apex Brazil began work- of the company. “It was great news Formula Indy racetrack promotes sis, the overall performance of com- that work in synergy in foreign trade, small and medium business owner ing together with small businesses that turned into a puzzle. Today informal contact between Brazilian panies backed by Apex Brazil was “he says. There is also space for a about the labyrinthine and tricky through the Industrial Program of it’s funny, but it was a huge rush to businessmen and CEOs of Ameri- higher than the national average. stronger performance in services, world of international trade. In an Export Extension (Peiex). get the documents in order to place can companies. At the Indy 300, in The economist and businessman Ro- today very focused on companies analysis, Apex discovered that half An example is fitness clothing the money in the company account.” Indianapolis, ApexBrazil promoted berto Gianetti da Fonseca, director of providing Information Technology, of companies involved in export manufacturer Bia Brazil, from Por- Large companies are also partner- a business roundtable and acted as the Department of International Re- according to Gianetti. “Brazil has a sector programs could not actually to Alegre, which currently exports ing with Apex Brazil to train sup- a matchmaker, bringing executives lations and Trade (Derex), of FIESP, great potential in the areas of tech- export. “We were shocked by this 1,200 pieces per month to 60 coun- pliers. In May, Olex Import and from both countries face to face. said the work done by Apex Brazil nical services, such as architecture, number and we began to wonder tries. Prior to meeting the agency, Export (the logistics arm of the From another angle, the agency’s has evolved in a favorable way. For medicine, and law,” says Gianetti. what was happening,” says Ricardo. the company did not know what to construction company Norberto actions have strengthened the coun- him, there has been an effort for bet- “There is a lack of planning in the “If the company has a good product, do with money from sales abroad. Odebrecht) collected 16 of its key try’s resistance to crises. In 2009, ex- ter coordination with other govern- medium and long term, to put these if there are no barriers to entry into “Before working with Apex, a com- partners to introduce and make ports decreased 22.7% compared to ment agencies. But there is room for services at the center of attention.” other countries, if there is no prob- pany in Costa Rica made a purchase them available to Peiex.

IN SEARCH OF THE LOST MARKET the fact is that the Brazilian industry 2007 Abimaq has been working with Brazil Machinery Solutions) and a tonne, to import machines from Ger- is losing the fight for market share ApexBrasil on a sector program to site, developed by Abimaq with the many at 350 dollars a kilo - 3,500 WHEN HE says that just being in of sector revenue) fell 42% at the both abroad and domestically. “In boost export levels of its member support of ApexBrasil (http://www. times more”, says the president of Brazil is enough to lose competitive- peak of the 2008/9 crisis. To make our sector, we are seeing a violent companies. In 3 years, the partner- brazilmachinery.com), with informa- Abimaq. “In this small mobile phone ness, the president of the Brazilian matters worse, equipment imports process of deindustrialization and ship has benefited 175 companies. tion in Spanish and English on the here, I have the amount equivalent Machine and Equipment Industry keep on growing. denationalization”, says Luiz Aubert. For 2010-2012, they scoured prior- project and the target markets. to six soybean trucks.” Changing this Association (Abimaq), Luiz Aubert Yes, it’s true that part of what “If they cannot compete with the ity markets and identified South Brazilian machine producers scenario and recovering positions in Neto, knows what he is talking comes from abroad is equipment Chinese, companies start importing Africa, Germany, Angola, Argentina, should take part in 24 international the ranking of capital goods export- about. In the 1980s, the Brazil- intended to modernize industry and machines that they produce here, Chile, Colombia, Peru, Venezuela, trade fairs, in an effort to regain ers is what the ApexBrasil/Abimaq ian machine and equipment sector give it greater firepower in global and which already come equipped México, the US, Italy, India and Rus- market share in exports of high partnership hopes to achieve – the ranked 5th in the world. Now it is competition. But, this positive effect with a manual in Portuguese”. sia as the preferential targets. The added-value products. “We export target is to boost Brazil up to 9th in 14th. Exports (which averaged 30% of import growth notwithstanding, To reverse this scenario, since project gained a seal (with the logo iron ore to China at 110 reais per the global ranking in 2015.

50 P I B P I B 51 We can see in numbers. We can see in the daily life of Brazilians. We are living in Brazil for all.

35.7 million Brazilians are being propelled towards a new middle class and 27.9 million overcame poverty .* * Source: PNAD / IBGE. Preparation: FGV / CPS (social mobility) and IPEA (overcoming poverty). Preparation: PNAD / IBGE. * Source:

www.obrasildetodos.com.br

404x266_Rapaz AB_Secom_FimdeAno_INGLES.indd 1 06.12.10 17:38:27 Interview Luiz Olavo Baptista

was won by a group of three offices – Hammond, from Belgium, Greenberg & Traurig, from the US, and Baptista, from São Paulo.With a vast international curriculum to his name, Baptista spent four years as a member of the Appellate Body of the WTO, a form of global trade Su- preme Court, where he both ruled in favor of and against the country he is now defending. “I am already globalized”, he states. As well as keeping his eye on major international trade matters, Baptista is also responsible for encouraging a humanist vision at his team. A self- declared movie buff, he holds dis- cussions on international law based on the films shown at the law firm’s movie club (located on Avenida Paulista) and he encourages his employees to question their sentiments via poems. “Everyone needs a bit of poetry to live.” The choice of the Brazilian law firm is a sign of the times – and of the progress in Brazil’s presence abroad, which previously needed US lawyers to defend its interests. “Brazil needs to depoliticize trade issues”, says Olavo, who gave the following interview to PIB.

razil is one of the most active participants in The image of Does the growing insertion of Bra- In the global the World Trade Orga- Brazil is changing; zil into the global economy require nization (WTO). A mem- we have emerged Brazil to play a more active role in ber country since Janu- from a chaotic the WTO? Bary 1995, when the WTO was creat- As the Brazilian economy grows ed, Brazil has already participated childhood and are and gains a greater international trade trenches in 100 WTO disputes. Of these, it presence, the problems also ap- now entering was claimant 25 times. On another pear. The conflicts stem from the 14 occasions, it had to defend itself adult life swings in the international econo- against accusations from other my, which cause the need to adapt. Retained by Itamaraty to represent Brazil in WTO disputes, countries. In the others, it acted as Currently, Brazil uses the system the lawyer Luiz Olavo Baptista says Brazil knows what to third party. Now, after 15 years of cial interests: the São Paulo lawyer for resolving trade disputes than international disputes, the country Luiz Olavo Baptista. The choice, its proportional presence in the do to defend its commercial interests finally has a Brazilian on the front via a public tender process held by global economy of only 1%. How-

NELY C A I XETA VALSANIFLAVITA line fighting to defend its commer- Itamaraty (Brazilian government), ever, we are the fourth or fifth

54 P I B P I B 55 Interview • Luiz Olavo Baptista

largest user of the body for resolv- than what it would receive if it took entering its adult life. Also, Brazil- Could Brazil have appealed more ance and hedging. Brazil’s lack of a were to file a complaint at Mercosur. ing trade disputes. retaliatory measures. I don’t have ian companies abroad have started often for safeguard mechanisms? In party in the investment protection If it loses, it loses. If it wins, it wins. the details, but I don’t believe that to spread a positive, (imperceptible other words, should it have adopted treaties raises this insecurity. Some If it won, the benefit of the country Why is our demand greater? Brazil has failed to demand some- from our eyes) image of Brazil. a stronger attitude when defending legal decisions contradict the letter would be suspended, and Argen- Firstly, because we fight for our thing it was entitled to. In other its trade interests? of the law, and the slowness of the tina wouldn’t want that. So then, it rights. Since the WTO was creat- moments, it is not economically How do Brazilian multinationals help This need is always raised by the af- legal system is another factor men- would start to fulfill and respect the ed, Brazil has been listening to its convenient to immediately apply construct this image? fected industry. When industry is tioned by investors. treaty that created the entity. economic sectors to learn of their retaliatory measures. The cotton Firstly, in how they behave and passive and doesn’t ask its govern- Until recently, everyone would tell needs. And, above anything else, it trade dispute was resolved shortly how they go about their business. ment to intervene, then the govern- you that while US negotiators ar- Are you taking this view with you to is acting. Secondly, it is operating as before the start of the crisis. A cri- As good citizens in the countries ment believes there is no problem. rived for talks with the support Itamaraty? a good international citizen, which sis period is not a time for applying where they set up shop, maintain- The level of aggressiveness of indus- and backing of major law firms, No. This is how I think as a citizen. says: “I have rights and I want to retaliations, because it worsens the ing ethical and sustainable develop- trial sectors in all democracies de- diplomats from the Brazilian gov- It is important for trade matters to see them recognized”. I judged cas- international trade scenario. It is a ment practices, they project a posi- termines the interest taken by that ernment were left isolated, without be depoliticized. What should be es in which Brazil was on the attack question of responsibility. tive image of Brazil, while market- country’s government in the matter. the necessary backing of the eco- politicized are the signature of the (i.e. the accusing party) and others ing activities can also arouse public nomic sectors involved in the trade treaty and the creation of new ones. in which it defended itself. As a law- interest in Brazil. Are Brazilian businesses learning to Resolving daily problems needs to yer, I voted in both positions. stand up and fi ght for their rights? be an uncomplicated process. In Brazil is behaving like The Chinese currency is one of the Some are. Everyone that went to the The WikiLeaks fact, companies’ long-term proj- What are the complaints facing Bra- a good international next international challenges of Bra- WTO knows this. Cotton, chicken, episode shows ects feature what they call a dis- zil in the WTO? zil. Is there room in the WTO for this Embraer against Bombardier... All that the State no pute board – a type of committee Recently, the European Union at- citizen, who says: “I discussion? democracy implies that within it that resolves small problems. By tacked Brazil because of used tires, have rights and I The Chinese currency isn’t the only there are groups of interest. Some longer controls making the matter impersonal, you which it wanted to send to Brazil. want to see them one representing an international are abstract, others are economic. information – the simplify everything. Brazil said no, on ecological and challenge. Evidently, the underap- Regarding the cotton retaliatory sanitary grounds. Brazil had a good recognized” preciated currency causes trade measures: the relative weight of people want to know Why do you prefer the term worldal- reason to say no. But there was an distortions. There is nothing stipu- the cotton sector in the economy of ization to globalization? exception: we were importing used What lessons should Brazil take from lated in the Marrakesh Agreements the US and Brazil implies how hard dispute. This is a word with a very negative tires from Uruguay. Thus, the de- this dispute? (which established the creation of each company will work to resolve Our diplomats were always effi- connotation, which leads people cision of the WTO appellate body It served to affirm or defend the the WTO and defines the main this matter. The function of a State cient. They lacked the support of to react against it without think- was: stop importing from Uruguay, rights of Brazil vis-à-vis the other rules of international trade) to di- is to balance interests, taking into the sectors of society interested ing. But worldalization is a histori- or then import from everyone else WTO member countries. It was also rectly discuss the impact caused by account the common benefit of the in international negotiations. To- cal moment, and nothing will get as well. Brazil no longer imports important to gain greater knowl- the currency. However, the fact that entire society. day, we are seeing more awareness in its way. Just look at what is now used tires. edge of the rules and procedures the currency is underappreciated and involvement of the interested happening with WikiLeaks. The for ensuring that a given country’s causes situations that enable WTO In the eyes of the world, does Brazil parties, although there is a lack episode reveals a phenomenon al- Does the hiring of the fi rst Brazilian rights are respected. In this case, members and, thus, Brazil to use currently convey an image of legal of emphasis on trade integration ready signaled by several writers: law fi rm by Itamaraty show that we for example, an economic analysis safeguards when export growth security? agreements. They need to modern- that the State has no more control have the capacity to deal with such to determine the value of the subsi- hurts local industry. Not as hoped for. One of the facts ize themselves, and Brazil needs to over information. It can squirm, complex issues? dies was important. that most concerns investors is the depoliticize trade issues. kick and punish, but it can’t change It shows that Brazilians have spe- Brazil and China: one currency on the question of court-ordered debts. the fact that information can no cialists that are just as competent The change, for the better, in Bra- rise, the other going down. How can Debits of states and the federal gov- Could you go into more detail? longer be controlled. The popula- as other countries when it comes to zil’s image abroad is evident. In your we ensure fair trade? ernment were and are postponed When the government handles tion wants to know. It is what Mar- international trade law. opinion, what contributed to the re- There are several solutions at the by constitutional amendments trade questions as if they were shall McLuhan called a global vil- newed interest in Brazil from abroad? WTO that can be applied. and may be reduced. This makes State matters, it politicizes the mat- lage in his book. Everyone knows In the case of the cotton trade dis- The image is changing because investors think they run the risk ter and loses the capacity to seek a what everyone else is doing. There pute between Brazil and the US, we Brazil’s economic performance And will Brazil use them? of suffering the same type of treat- solution based solely on interpreta- is nothing hidden. The world has won the right to retaliate, but we has improved. A country without That is a political decision. The US, ment if they have to receive indem- tion of the law. Look, for example, become a small city. chose not to. Were we timid? a stable currency is not a country, for example, has heavily used anti- nity payments due to any govern- at the foreign trade problems with I don’t know. Many times, we adopt it cannot do business, and it cannot dumping measures and subsidies ment action that has caused them Argentina. The question would be Are we learning the game? economic positions that, for a coun- buy or sell. Brazil has emerged from against China, in the belief that the (the investors) damages. This also nipped in the bud if the party con- Yes, we are, especially in the WTO try as a whole, are more convenient a highly eventful childhood and is currency is grounded on subsidies. raises the cost of investment insur- sidering itself affected immediately trade disputes.

56 P I B P I B 57 Internationalization 1 BM&FBovespa: international leap

at. In the latest ranking compiled Capitalizing on this positive these two countries signed an agree- by América Economia, featuring momentum is important in facing ment with the Peruvian exchange the 500larg est Latin-American the numerous difficulties that lay to work together. Data compiled by companies, 226 are Brazilian (see in the path of BRAiN’s project – e.g. consultancy firm Economática show the top 20 on this page). In other all kinds of differences between the that this combined entity is now A global words, Brazilian companies are all laws of the neighboring countries, the second largest stock exchange, over Latin Americaand reinforce which will have to be settled before in market value, in Latin America. the perception of Brazil’s leadership reaching a concrete agreement – e.g. Brazilian businessmen will have to in the region due toits size, GDP and details such as forms of payment, strike some sort of deal with this ex- political and economic stability. custody rules, freedom of capital change to make São Paulo the main business center Since 2008, withinvestment grade movement, fees and taxes, etc. Co- investment and business magnet in and the increased relevance of Bra lombia and Chile, for example, have South America. São Paulo is working to integrate the Latin-American capital zil in theinternational scenario, the much more transparent and less In the opinion of Manoel Horá- country has conquered a new public complicated legislation than Brazil. cio Francisco da Silva, president of market and become a Latam center of reference for itslisted companies. In November, the stock markets of Banco Fator, the idea is positive – it ELIANA SIMONETTI LARGEST LATIN ew York, London, zils international scope and its ties AMERICAN COMPANIES Hong Kong, Singa- with other markets, and strengthen- Revenue in 2009 (US$bn)* pore are a reference ing Brazilian competitiveness – to 1 Petrobras (Brazil) – Oil/gas – 104.9 for investors from all shorten the path of investors in as- 2 Pemex (Mexico) – Oil/gas – 85.3 over the world. They sets from Brazil and Latin America, Nare window displays of good busi- reducing transaction costs and risks. 3 PDVSA (Venezuela) – Oil/gas – 60.6 nesses. These financial centers The group plans to negotiate 4 Pemex Refinaria trade the main global and move a a joint partnership proposal with (Mexico) – Oil/gas – 40.7 lot of money. “You could say that South American stock exchanges. 5 Petrobras Dist. these cities drive development”, The aim is to make BRAiN a bridge (Brazil) – Oil/gas – 31.6

notes Abram Szajman, president of between Latin-American and global 6 América Móvil the São Paulo State Trade Federa- markets. To help achieve this, the (Mexico) – Telecoms – 30.2 tion. “Latin America doesn’t have a entity will provide incentive to re- 7 Vale (Brazil) – Mining– 27.8 business center that represents an search and studies, sponsor discus- alternative for its companies when sion forums, take part in negotia- 8 Ultrapar (Brazil) – Oil/gas – 20.7 01 they go international and look to tions with the government and try 9 Wal-Mart (Mexico) – Retail– 20.6

raise capital.” to ensure that interests converge 10 Odebrecht (Brazil) – Multi-sector– 20.6 São Paulo wants to cover this around its proposals. 11 JBS Friboi (Brazil) – Agribusiness – 19.7 position. Making progress on Notwithstanding the differ- the project to make Brazil and ence in language and historical 12 Ecopetrol (Colombia) – Oil/gas – 18.1 BM&FBovespa the Latin-Ameri- resistance of Spanish-speaking 13 Techint can financial hub is the mission of countries to Brazil’s importance in (Argentina) – Steel/Metal – 17.7 BRAIN – Brasil Investimentos & the region, some new facts seem to 14 Telemar (Brazil) – Telecoms – 17.161 Negócios (www.brainbrasil.org), an align in favor of the BRAiN proj- 15 CFE (México) – Electrical energy – 16.9 organization created in March 2010 ect. Brazilian companies that have by entities from the financial and ventured beyond borders are no 16 Votorantim (Brazil) – Multi-sector – 16.4 capital market*. BRAIN started out longer considered foreigners by 17 Eletrobrás with 12 partners, each one commit- neighboring countries – a concrete (Brazil) – Electrical energy – 15.8

ted to contributing a million reais sign of integration. In November, 18 Gerdau per year to meet the following goals: Argentina voted Itaú Argentina as (Brazil) – Steel/Metals – 15.2

consolidate Brazil as an internation- its best bank service provider. Ode- 19 Cemex (Mexico) – Cement – 15.1 al investment and business center brecht Peru is considered by Peru- 20 Femsa (Mexico) – Beverages/liquors – 15

for Latin America, expanding Bra- vians the best company to work LUIZ PRADO/LUZ 1 * ranking of America Economia magazine

58 P I B P I B 59 Internationalization 1 Oliveira: 2 Odebrecht investors highway integration in Peru: chosen Brazil prestige

adds services, volume, raises stock Teixeira da Costa, a partner at Pro- Costa, who is part of BRAiN. “The exchange merger. Swedish, Danish, Paulo de Sousa Oliveira Jr, ex- ex- prices and makes the stock market spectiva Consultoria Brasileira de difficulties in implementing inte- Finnish, Estonian and Lithuanian ecutive director of BM&FBovespa. less vulnerable to speculative at- Assuntos Internacionais and ex- gration of regional capital markets exchanges joined forces to form This is already being talked up with tacks by foreign groups. “Colombia president of the Latin America Busi- should not be overlooked and the the OMX Group, later bought by the bourses of Colombia, Peru and and Peru should grow a lot. There ness Council, has two concerns: one proposal of BRAiN is to help over- Nasdaq. The New York Mercantile Chile – in principle for a partner- tives and commodities of the Bra- are no Colombians investing in Bra- is the mistrust of South-American come these problems.” Exchange was acquired by the Chi- ship deal. The idea is for informa- zilian exchange. Six months later, zil at the moment, just like there countries regarding the actual in- The consolidation of global stock cago Mercantile Exchange. tion on South-American trades to be clients of the Brazilian exchange are no Brazilians investing in the tentions of Brazil in a partnership; markets has been a swift process. In this environment, Latin Amer- centralized and sent by São Paulo to were directly trading in financial Bogotá exchange”, he says. “There and the other regards the funda- Some of the largest stock markets ica is behind the times. “Many trades offshore markets. instruments from the Chicago ex- are few flights from São Paulo to Bo- mentals of Brazilian economic sta- went public and initiated an un- in Brazilian or Latin-American as- The estimates of Paulo Oliveira change. Since the start of October, gotá. A partnership or a merger will bility, since the lack of key reforms precedented wave of M&A moves sets that are currently executed on indicate that the number of com- Brazilian investors can also trade in give the stock exchanges visibility – e.g. tax system, for example – con- – in the last two years alone, M&A the London and NY markets could panies listed on the BM&FBovespa companies listed on US markets, by and encourage more IPOs, which tinues to obstruct business. “There deals have brought in US$35.7bn. be executed in the scenario that could rise from 470 to 5,000 in 10 buying and selling Brazilian Deposi- will be healthy for companies and is an urgent need to simplify and The NYSE merged with Euron BRAiN intends to help construct years. Since Latin America is a major tary Receipts (stock certificates of economies.” rationalize the tax structure, and to ext, which itself is a hybrid of the in the Brazilian capital market”, producer and exporter of commodi- companies listed on non-Brazilian However, the economist Roberto gradually reduce the tax load”, says Paris-Amsterdam-Brussels stock explains BRAiN director-general, ties, BM&FBovespa could become markets) – a facility already avail- a global reference for commodity able for some time now in Argentina price setting. “BRAiN, and the con- and Chile. solidation of Brazil as an investment The pipeline is far from empty. center in Latin América will facili- A platform enabling foreign inves- tate the internationalization of com- tors to trade in stocks listed in Bra- panies and their ability to tap capital zil should be finalized in 1Q11. Soft- markets”, he concludes. ware will convert asset prices into BM&FBovespa prepared for this the currencies of other countries, move by making strategic alliances which will enable trading orders to and investing in technology. The be sent in local currency – e.g. an in- first alliance was signed with CME vestor in Japan will be able to access Group, controller of the Chicago the Brazilian stock market trading exchanges. Since September 2008, screen on his computer and buy or clients of CME Group in over 80 sell any asset in Yen. countries have been directly trad- BM&FBovespa has attracted ing in products, financial deriva- foreign investment in portfolio

BRAIN STRATEGIC AGENDA :: Develop partnerships with :: Support international ex- Latin American exchanges pansion of Latin-American :: List and trade foreign assets multinationals :: Construct a continental regu- :: Optimize regulations, bureau- latory framework cracy and taxes in Brazil :: Expand Brazilian banking :: Improve urban and business sector infrastructure :: Centralizing management of :: Expand airline network Latin American assets in Brazil :: Create a talent pool :: Center of decision-taking pro- :: Fostering profi ciency in foreign cess of multinationals opera- languages ting in the region BRAIN/HANDOUT HANDOUT 1 2

60 P I B P I B 61 Internationalization 1 To attract Nunca julgue uma região pelo seu tamanho. neighbors: Port of Chilean Never judge a region by its size. company (stocks and fixed income bonds). Business 2011 report, compiled by Codelco According to the Brazilian Central the World Bank, shows that, out of Bank, investments in stocks traded 183 countries, Brazil fell from 124th in Brazil stand at US$21.628bn, ver- to 127th this year. While in Brazil it sus US$17.034bn in the same period takes 120 days to open a company, civil construction group and ex- of 2009. Fixed income investments in New Zealand it takes just one. president of Apex-Brasil. “There are, have more than doubled. “Investors “Attracting investments to a fi- however, three key questions to re- have already chosen nancial exchange solve: reducing Brazils tax load, in- us”, says Oliveira. Brain is such as BMFBovespa, vestment in infrastructure, and the “We need to assume with which foreign lack of people ready for productive our position and op- negotiating investors are highly work – training them is fundamen- erate as a major inter- with various familiar, will be easy. tal”, recalling the small matter of national player.” (see South For solid South- quality education. These are all bar- chart) American family- riers to strong and sustained growth. Brazil thus has a American owned companies, BRAiN´s proposal to develop an in- modern exchange, a exchanges IPOs will also be vestment and business center on robust economy, a much easier to imple- the São Paulo exchange depends on leading position on ment”, reckons Juan these reforms, and at the same time the continent, strong companies Quirós, controller of the Adventure encourages them. that attract investors – and even better, it will gain major international exposure thanks to the 2014 World Cup and the 2016 Olym- *Brazilian Association of Financial and Capital Market Entities (Anbima), Stock Market and pics. But unfortunately, attracting Futures & Commodities Exchange (BM&FBovespa) and Brazilian Banking Federation investments doesn’t just depend (Febraban) on the excellence of the Brazilian O que traz os investidores para Flandres: Why investors come to Flanders: exchange, the country’s macro- economic health or international 1 • Centralmente situada no coração da Europa • Centrally located at the heart of Europe sporting events. Doing business • Com uma extraordinária infra-estrutura de transportes • Outstanding transport infrastructure in Brazil still isn’t easy. The Doing • Capital humano globalmente reconhecido • Globally recognized human capital • Benefícios e incentivos fi scais • Tax benefi ts and fi scal incentives • Alta concentração de grupos de conhecimento e • High density of knowledge clusters and research centros de pesquisa centers FOREIGN INVESTORS IN THE BM&FBOVESPA O que traz os compradores para Flandres: Why buyers turn to Flanders: Share of foreign capital in total trading volume (YTD 2010) • Séculos de experiência no comércio internacional • Centuries of international trading experience • Produtos e serviços inovadores de alta qualidade • High-quality innovative products and services • De químicos e automotivos a alimentos, • From chemicals and automotive to food, moda e diamantes fashion and diamonds

www.ﬂ andersinvestmentandtrade.com

Source: BM&FBovespa HANDOUT Representação Econômica e Comercial de Flandres

62 P I B Al. Santos 705 cj 27 – 01419-001 São Paulo – SP Tel +55 11 3141 1197 – 2925 0117 – Email saopaulo@ﬁ tagency.com

9968-PT-EN-V2-ad21x28 NeverJudge.indd 1 21/01/10 16:10 Business 1 Headquarters 2 Executive of Banco Ricardo Espírito Santo Espírito Santo, in Angola from BES Africa on the horizon

Almost three decades after Brazilian multinationals touched down in Africa, Banco do Brasil and Bradesco are joining forces with Portuguese bank Espírito CLAUDIO GATTI Santo to identify opportunities on the continent 2 ANDRESSA ROVANI NEW FOREIGN BORDERS he internationaliza- businesses of companies such as 16 banks have operations abroad tion of Brazilian banks, Odebrecht, Vale, Camargo Correa which has accelerated and CSN, the largest of the ~1,390 (including 4 public-sector banks). this year, gained an un- Brazilian companies already do- totaling 93 external operations precedented chapter a ing business in Africa, total around and 11 bank subsidiaries Tfew months ago: Africa. Although US$15bn. This is the market that Brazilian companies two Brazilian banks have already been in should enter shortly. WHERE DO THE BANKS GO TO: the region for almost BES África Bradesco and Banco three decades (Ode- could be door do Brasil are in due Country brecht was the first for Brazilian diligence phase – Africa 1 to arrive: in Angola, banks to enter process of analyzing North America 13 in 1984) only now a company’s docu- Latin America 19 has the Brazilian ments, measuring a still untapped Asia 15 banking system spied market effective and poten- opportunities in the tial risks – to acquire Europe 19 region. The reasons a stake in BES África, Asian tax havens 1 are numerous: from 2003 to 2009, a division of Portuguese bank Es- Caribbean tax havens 25 Brazilian exports to African coun- pírito Santo. The holding company tries grew 20.3%, according to data results from a corporate restructur- Source: site of banks / study – Internationalização do by Secex (a Foreign Trade Division ing process that brought together sistema bancário: os casos do Brasil, Coreia e México –, by Maria Cristina Penido Freitas (2010)

of the Brazilian government). The stakes held by BES in various banks BANCO ESPÍRITO SANTO/DIVULGAÇÃO 1

64 P I B P I B 65 Business 1 Brandão, from Bradesco: partnership

2 Odebrecht, investing in Africa

3 Bendine, from BB: international expansion

4 Banco Patagonia: BB in Argentina

1 2 3

on the continent – from Cape Verde (Moza Banco) and is also study- them are in Luanda”, he explains. to grow”, says the executive. close ties with Espírito Santo, we located outside Brazil (including to Libya, Morocco, Algeria and An- ing opportunities in South Africa. The population’s low level of access In the view of Lázaro Brandão, believed it was a chance, because branches, representation offices gola. “We hope both BB and Bra- In addition to eyeing the growing to banking services does indeed board chairman of Bradesco, the de- structural issues are more or less or subsidiaries), Africa has only desco will buy a stake in this hold- volume of Brazilian and Portuguese signal promising investments. Ac- cision to explore the African market resolved thanks to the support of a one, according to a study by Maria ing, thereby becoming stockholders industries doing business in Africa, cording to Ricardo, only three out shouldn’t be seen as a sign of a pos- bank already present in Africa for Cristina Penido de Freitas - a proof the banks below this holding”, Banco do Brasil and Bradesco are of ten Angolan citizens currently sible strategic shift in direction at a long time. It’s still not a [sign of fessor at Unicamp (Campinas State said to PIB in São Paulo Ricardo also sizing up the market potential have a bank account, inherited Brazil’s second largest retail bank, boosting our offshore business], but University). “The new reality of the Espírito Santo, the main executive offered by local retail banking. “Af- from the civil war days of the latter which is prioritizing its domestic opportunities could arise.” Brazilian economy enables us to put of BES Investimento do Brasil. To- rica is going to grow a lot”, signals decades of the 20th century, which operations. Simply, he says, a good If it materializes, the business ourselves in a position where we day, Espírito Santo is doing strong Ricardo. And BES África could be obstructed economic development opportunity arose to operate be- will inaugurate a new phase of Bra- can also strengthen our offshore business in Angola, where it has the gateway for the Brazilian finan- and the creation of consumer mar- yond Brazilian borders and it wasn’t zilian finances in Africa. Today, out operations”, says Aldemir Bendine 36 branches. In Mozambique, the cial system to enter an untapped kets. “30 years ago, banking activity wasted. “Internationalizing opera- of the 93 Brazilian bank branches (CEO of Banco do Brasil). bank is in the process of buying market. “Angola, for example, only was superfluous in these countries, tions is a very cautious move”, de-

a 26% stake in a local institution has 600 branches, and a third of but now the services side is starting FOTOS: DIVULGAÇÃO clared Brandão to PIB. “Due to our

MOVING ABROAD

WITH THE strong real and oppor- financial institutions capable of (present in 23 countries) bought via its subsidiary BB Money Trans- tunities to acquire bank assets at financing projects that interest Banco da Patagonia (154 branches) fers Inc. In May, it received the green more attractive prices abroad, 2010 national groups. A study by BIS in order to provide services to light from the Federal Reserve Board has been a good year for moves by (Bank of International Settlements) 400 Brazilian companies located to provide financial remittance large Brazilian banks. A third factor, confirms that the credits and loans in Argentina. Bradesco acquired services in Brazil. A new subsidiary however, played a crucial influence of Brazilian banks abroad are val- the capital stock of Ibi México, an is expected to be announced shortly. in where these investments went: ued at US$51.4bn – ten times more important move since it was the “We have a very strong international the growing internationalization of than Chilean banks, for example. bank’s first international deal. presence”, says Aldemir Bendine. Brazilian companies. This stronger In terms of moves made in Recently, Banco do Brasil initiated “We were the first to make this Brazilian global presence calls for recent months, Banco do Brasil retail banking operations in the US move, 67 years ago.” 4

66 P I B P I B 67 Analysis 1 World Cup party in Madrid: a brief respite amidst the storm of the crisis

enjoy the summer season with money to burn. In order to successfully, and overnight, flood the streets with Spanish national team jerseys, Spanish retailers would have had to overcome one of their most criticized short- comings – the lack of flexibility to convert an unexpected opportunity into good business. The lost chance may not mean much for Spanish business, but it is illustrative of a modus operandi that has seen Spain lose out in many key points vis-à- vis economies of other developed countries. One of the effects of the prolonged crisis was to expose the fragilities stemming, among other things, from an attitude that the Spanish themselves admit is lax in light of the difficulties faced, a lack of appetite to assume risk and their strong attachment to economically inefficient traditions. DANIEL DIONNE 1 Some details of everyday Span- ish life are, in today’s world, unim- aginable in a country looking to be hilst the soccer Spain. There are no doubts that the competitive. Even in cosmopolitan players of the Fifa World Cup is the best excuse to cities such as Madrid and Barce- A siesta in the middle of Spanish national boost sales of the super-expensive lona, a pizza delivery can take up team were parad- uniforms of the teams taking part to two hours, banks close at 2pm ing in front of an (a soccer jersey featuring the name and finding something open on a Wunprecedented throng of people of hotshot Andrés Iniesta, for ex- Friday afternoon is no easy task. On a full-blown global crisis in Madrid, another unprecedented ample, costs upwards of ¤75). Still, Sundays, the only establishments phenomenon (which, in this case, in a Spain engulfed in a massive open are mini-markets run by im- didn’t need the psychic powers of economic crisis, retailers missed migrants. During August (peak an octopus to see it coming) was the opportunity to fill their pock- summer month), countless restau- gripping the streets of the country ets. In the final phase of the tour- rants, stores, drugstores, newspa- Hit hard by the crisis that rocked the global economy in 2008, that had just won the World Cup nament, you couldn’t find a Span- per stands and offices simply shut Spain (one of the least competitive EU countries) is finally starting for the first time: the official soccer ish soccer jersey for weeks on end, up shop (despite the presence of jerseys of the winning team, pro- frustrating proud Spain supporters thousands of tourists keen to buy). to wake up to the challenge of overcoming its limitations duced by the German brand Adidas, (la roja) and the countless tourists Important services are instantly ADRIANA SETTI, BARCELONA became the most prized souvenir in who, in July, traveled to Spain to interrupted.

68 P I B P I B 69 Analysis DOMINIQUE FAGET/AFP 1

The good life to the challenge of recognizing its tion. Among immigrants, this rises the country in which González im- In this outdated mechanism, tra- limitations and trying to overcome to 29% and, among youngsters aged plemented a harsh economic stabili- ditional practices and customs of a them. We are talking about a mas- 15-24, unemployment rises to a stag- zation plan in the past is, according not very urbanized society clash sive effort to change the mentality gering 40% (triple the global aver- to him, “ten years behind in terms with the frenetic pace of the 21st of a country that is one of the least age, according to the International of structural reforms”. century economy. The famous sies- competitive States of the Europe- Labor Organization). Spain can see a speck of light ta, the custom of taking a nap after an Union, according to a ranking In an interview to CNN, ex- at the end of the tunnel, having lunch, remains very much alive and compiled by the Global Economic president Felipe González (also posted modest 0.2% GDP growth kicking. Even in Madrid or Barce- Forum. Hit hard by the crisis that from the Zapatero party), who gov- in the third quarter of 2010 in re- lona, most stores in the less central rocked the global economy in 2008 erned Spain between 1982 and 1996 lation to the same quarter of 2009, districts close for business between (like the US, Spain said: “The crisis hit while countries such as Germany 2pm and 5pm. But the impact of the also cultivated a mas- a country that was and Holland are already signaling crisis has forced Spain to reconsider sive real estate “bub- 19.8% of not adapted, from a that the recession is a thing of the some of its traditions. Spain’s busi- ble”, which led its Spanish people competitive stand- past. “Germany is already recover- ness conservatism is now a recur- construction sector point, to the current ing thanks to its so-called structure ring theme of debate in the Spanish to come to a stand- are unemployed; scenario”. “We spent of efficiency, which only requires press – with the press highlighting still), the country almost many years living be- some fine-tuning to be made; Spain, the mismatch between consump- governed by socialist 40% among yond our possibilities, however, needs to reinvent itself”, tion trends in recent decades and José Luis Rodríguez with no support from says writer Alex Rovira, author of the dormant state of Spain’s en- Zapatero went from young adults a productive system La Buena Crisis, (published by Pun- trepreneurial spirit. Recently, the being one of the most capable of inserting to de Lectura). “The period of living chairman of the Spanish Associa- promising countries (Spain grew us into a global economic model.” tion of Economists, Valentí Pich, 3-4% in the years leading up to the With an inverted demographic accurately summed up the problem: financial tsunami) to, alongside Ire- pyramid due to its low birth rate “Spain has to stop living like a rich land, Greece and Portugal, one of (22% of Spanish population is over country”. the most problematic economies of 60 years old, while only 15% is un- 1. Employment line: 2. Zapatero: the Although resistance to adopting Europe. Currently, over 4.5 million der 15), an unsustainable pension unemployment government took a capitalist lifestyle has its defend- people are unemployed in Spain, the system and an inefficient educative benefit (el paro) is a while to react the scarecrow ers, Spain is starting to wake up LA MONCLOA equivalent to 19.8% of the popula- and human capital creation system, 2

70 P I B P I B 71 Analysis 1 Siesta 2 Ana time: Rey and stores partner Joan shut up Redolad: shop in the turning off the State (or living off the fat of recently, embarked on an epic roll- paro (unemployment benefit) al- additional subsidies, the need for get their hands dirty. “I already pro- afternoon things around the land if you prefer) is over. The ercoaster ride of endless economic lows people to go a year without a reaction is starting to be taken vide services to 30 buildings and my only solution is an ethical approach packages, eight currency changes working while earning a ceiling of more seriously. end-of-month wage is guaranteed”, based on commitment, a long-term and ridiculously high inflation lev- around 80% of their last received In the first 7 months of 2010, he rejoices. view and a culture of effort and hard els, the Spanish have barely come to wage, depending on time of con- 55,575 companies were created in work”, he states. terms with the euro, effective since tribution. Times have changed, but Spain (4.29% more than in the same Turning things around 2002. Prices in pesetas (the former not everyone has got used to the period of 2009, after a fall of 36.16% Stories like this are part of a Shyness x competition Spanish currency) still frequently end of the easy-life culture. “Since in 2008). Jacinto Oliva Rodríguez- growing civil movement aimed at Although Spain has an admira- appear in small letters next to the the start of the crisis, we receive, Palacios (30), who had been unem- turning things around via sheer ef- ble history of overcoming obstacles Euro price, at stores, supermarkets on average, 300 CVs a day”, says ployed for 8 months, opened his fort and optimism. The video show- out over the next few years, since (having recovered from a civil war, or even realtors. For Cristina Mesquita own. Since March, he has been in ing the story of the aforementioned they have enjoyed many luxuries survived a brutal dictatorship and products with higher Nogueira (30, born charge of Sevilla al Cubo, a compa- Seville “garbage man” is one of the that their parents didn’t have”, says experienced an economic miracle prices, your average Spain was in São Paulo), who is ny specialized in doing what no-one most popular on the website of Esto businessman Jesus Aldana (43), in just over 50 years), the global Spanish citizen has head of reception of else wants to. Ever since a law was Lo Arreglamos Entre Todos (free who has his own digital advertising crisis caught Spain with its pants to get out his calcu- gripped by Camper (a boutique implemented requiring large trash translation = “lets fix this problem agency (with clients such as the bank down. Stunned, the country was lator and make the a mood of hotel). “Some candi- recipients in the old downtown re- together”) movement, an initiative Caja Madrid and the airline Iberia). gripped by a collective mood of de- conversion to dis- defeatism, but dates had the nerve gion to be replaced by containers of Fundación Confianza – a founda- “The opportunities will come. If this featism and low self-esteem that not cover if he’s looking to ask me for copies with a fixed time to exit each build- tion that helps spread stories of peo- thinking spreads through society, even winning the World Cup could at something cheap this is starting of their CV, since ing (thereby avoiding a bad smell ple who saw opportunities amidst we will speed up the recovery.” banish. Indeed, this somber mood or expensive. It is to change they only brought in the most touristic region of the the storm. The initiative has the It is with this aim that ONGs even failed to consider the success thus understandable one; others gave me city), an impasse has existed. Which support and backing of prominent and pro-employment and job crea- of Spanish companies who, in just that this same lack of dirty and crumpled sane condo member would want to Spanish citizens, such as renowned tion government bodies have gained a few decades, made it to the first flexibility had led most of those hit pages”, says Cristina, who obtained do this unpleasant job? Foreseeing Catalan Chef Ferran Adrià, who re- an even more important role, as in team of heavyweight multination- hardest by the recession (i.e. the un- her degree in Switzerland and has the imminent war in the corridors alized the urgent need to change the the case of Barcelona Activa, which als – e.g. Santander, Telefónica, etc. employed) to surrender over their lived in Barcelona for 10 years. of the beautiful historic buildings mindset of youngsters. offers courses to businessmen. The This general apathy, however, destiny, on automatic pilot, to gov- However, since the end of this of Seville, Jacinto charges 50 Euros “Spanish youths in their 20s don’t results are clear for all to see. The seems to be rooted in the shy and ernment aid. cozy system is approaching for mil- a month from those not wanting to realize they will have their work cut journalist Ana Rey (47) lost her job conservative economic habits of Until recently, being fired in lions of Spaniards (indeed, many at XiZ Comunicación a month after Spain’s provincial day-to-day life, Spain had its advantages. Indeed for are already receiving nothing) and Lehman Brothers went belly up in far removed from the hectic, ultra- some people, and however strange the austere measures imposed by September 2008. “I had never been competitive world of the large glo- this may seem, being fired was ac- the government in response to EU unemployed and, suddenly, the cri- bal companies. While Brazil, very tually an objective. The so-called guidelines are not fueling hopes of sis, insecurity and fear took a hold of me”, she recalls. But it didn’t take too long to turn things around. Ana enrolled in a free course of the Barcelona Association of Business- women (which has ties to Barcelo- na Activa) and, in a short time, she hooked up with a graphic designer and created Tactilestudio, a com- munication company. There, she divides her time between commu- nication work, such as creating sites for famous Spanish athletes and artists, and press agency stuff. “We can’t complain, we have received a lot of projects”, she recalls. “In addition, we do what we like. Isn’t that a privilege in today’s world?” You can TAMORLAN CREATIVE COMMONS RENATA GIORGI RENATA say that again!

72 P I B P I B 73 Ano IV Number 11 Ago/Set 2010

R$ 12,00 ¤ 5,00

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OASIS Why European multinationals are offsetting their losses in Brazil

POSITIVO HALAL DIET Teaching the How to export world a new food to Islamic way of learning countries AN ANT ARMY After assembling direct sales networks in Latin America, Natura is now internationalizing its production line

01-PIB11-capa-ENG.indd 1 06/09/10 04:08 Globe-Trotter • Executive Travel PORTUGAL 1 Central Park MARCO REZENDE at a good price Hotel Yeatman Safe Port in Gaia: view The business center for nor- from Porto NEW YORK thern Portugal with traditional stores, elegant shopping and 2 Hotel an obvious taste for good Yeatman, no The big apple at the Porto: vista design, Porto, at the mouth of cinematográfica price of a banana the Douro River, has joined the NEW YORK CITY’S official marketing, circuit of refined and must-visit 3 Ilha da tourism and partnership organization’s European cities such as Barce- felicidade, em site (www.nycgo.com), besides giving lona, Milan, Krakow. Neglec- Abu Dhabi: the most up-to-date suggestions for ted for many years, the historic Louvre à vista visitors and NYC’s own citizens, also center has been reborn thanks guarantees you the most fantastic dis- to building restoration. On the 4 Capitólio Nacional, counts at the best Manhatten hotels other side to the river in Vila no centro during this northern hemisphere win- Nova de Gaia is the brand new de Bogotá ter. Click on Get More NYC and stay at Yeatman Hotel with 82 rooms one of the luxury hotels on 59th Street and the largest cellar of Portu- 5 Emirates: (Ritz Carlton, The Helmsley Park Lane, guese wine in the country. Best a maior Jumeirah...), with a view over Central of all is the cinematographic operadora Park, for the price you would pay at any view of the Porto skyline. dos A380 JUMEIRAH ESSEX HOUSE less known hotel in the city. THE YEATMAN (www.the-yeatman-hotel.com) 1 2

ABU DHABI IN THE CLOUDS Art in the desert Super fleet of A 127 HECTARE golf course is the super jumbos major attraction of the USD 27 billion Saadyat Island mega development (“is- WITH THE UNVEILING of the A380 services land of happiness”) in Abu Dhabi. With on the routes to Manchester (United Kingdom), 500 meters of beach front, the island Hong Kong and New York, the national airline of combines homes, offices and entertain- the United Arab Emirates, Emirates, becomes ment with avant garde architecture the largest operator of super jumbos anywhere and will be completed within eight in the world. It has incorporated 12 into its fleet years. It will then have more than nine with a further 78 already on order. Emirates luxury hotels and four museums includ- has direct daily flights from São Paulo to Dubai ing the first Louvre Museum franchise using the Boeing 777 (currently). SAADYAT ISLANDSAADYAT outside France. H. GOUSSÉ/AIRBUS 3 5 NEW DESTINATION 95 TV channels One day after More eastern Bogota on board the other... luxury TAM HAS DECIDED to establish a bridgehead in the last major THE US AIRLINE Continental has DURING THE HARD line and AFTER EMIRATES AIRLINES South American market where it still does not operate, the capital of just completed the revamping of its atheist communist regime of and Qatar Airways, Brazil will be Colombia. The inaugural São Paulo-Bogota flight was scheduled for in-flight entertainment system with the dictator Enver Hodja, the served by another five star airline. December 19 and the route will operate a two class service, business DIRECTV in its fleet of 148 aircraft, all airport in Tirana, capital of Al- Singapore Airlines, which always and economy. “Bogota is the last leading South American market of them in the 737 family. Passengers bania, was known by the name ranks at the top of the world’s where we have not been operating and has a strategic importance can choose from 95 channels that of the village near where it is best, is to fly the São Paulo - Sin- for TAM: it is a metropolitan center with its economy based on transmit live and a further eight with located, Rinas. This Christmas gapore route three times a week, industry, commerce and financial and corporate services as well recorded programming. The service the airport will officially become stopping in Barcelona. The flight as offering a wide range of cultural and touristic options”, explains is free... in first class. In Economy, it known as Mother Teresa of Cal- will take 24 hours and 15 minutes

JAVARMAN/DREAMSTIME.COM Paulo Castello Branco, Commercial and Planning VP for TAM. costs six dollars for each flight. cutta (she was born in Albania). (including stopover). 4

76 P I B P I B 77 Globe-Trotter - Express Tourism 1 Ginza: 2 Tokyo: where Japan’s first tradition and luxury district modernity live Tokyo, side by side by Chieko Aoki 3 The Imperial Palace and its Born in Fukuoka (Japan), Chieko sumptuous Aoki, CEO of the Blue Tree Hotel gardens: symbol group, came to Brazil when she was of tradition and 7. And despite being a Brazilian citi- a ´must visit´ zen, she remains very much in touch with her country of origin, traveling to Japan every two months. To en- dure the 24-hour São Paulo-Tokyo flight, the secret of one of Brazil’s leading executives is simple: catch up on her reading, watch a lot of movies and sleep! Chieko gives us tips from the van- tage point of being someone who knows the city like the back of her hand: she recommends using the excellent public transport network in Tokyo, which allows you to cross the entire city quickly and cheaply. “Just remember to bring an English map and your hotel address in Japanese, in case you get lost in the midst of trains, subways and crowds of people”, she says. ATANAS BOZHIKOV/SHUTTERSTOCKATANAS LOVER OF ROMANCE 1 2 If you have a few hours...

Visit both the modern and traditional parts of Tokyo. Start with a visit to the Imperial Palace, the official residence of the imperial couple, in Shimbashi. It’s a must visit. The east wing of the royal gardens is open for visiting. From there, go to Ginza, the first luxury district of Japan. There you will find shops opened up centuries ago, such as Kyukyodo (in 1663), which sells traditional products such as rice paper, lacquer products, incense and letter paper. Ideal for those se- eking high-quality Japanese handicraft. Ginza is also home to Wako, founded in 1932 by the Seiko group, which sells watches, jewels and exclusive personal items. Next to Wako stands Mikimoto, famous for its pearls and, in front of Mikimoto, the Mitsukoshi department store, founded 400 years ago. Don’t miss the chance to have lunch or take tea there. Ginza is also home to the Sony Building, visited by 5 million visitors a year, and which offers products on clearan- YASUFUMI NISHI/JNTO ce sale on its underground floor. YASUFUMI NISHI/JNTO 3 3

78 P I B P I B 79 Globe-Trotter - Express Tourism

If you have the entire weekend... VISIT KYOTO, THE FORMER capital city and resi- the statue of Hachiko, the dog that inspired the mov- dence of the imperial family for almost 1000 years. ie Hatchi, starring Richard Gere. There, make sure to Surrounded by mountains, it maintains the heritage visit Tokyu Hands, known as “creative live store”, of tradition like nowhere else in Japan. Of the most where you can fi nd infi nite leisure/hobby items. They visited places, two temples stand out: Kinkakuji say everything you can imagine can be found on its (the golden temple, since it is draped in gold), with 10 fl oors. I always go there when I am in Tokyo. its stunning gardens; and Kyomizudera, famous for Another weekend escapade is the city of Hakone,

SXC its enormous wooden terrace. Rent a bike to visit the in the region of the famous Monte Fuji, an 1 temples and palaces, admiring the maikos (young hour’s train ride from Tokyo. In the city, hotels If you have the whole day... geishas), who you will see making their way to the offer the typical Japanese spa, with public baths, tea houses, where they dance for guests. Upon various types of beauty treatment and immense IF YOU ARE STILL WIDE AWAKE, then a great place to visit is the returning to Tokyo, visit Shibuya, where you will see banquet-esque meals. Tsukiji Market, which opens at night and closes at 7am. It is the world’s largest fi sh market, selling all kinds of fi sh to the highest bidder in true

Japanese style. After eating fresh sushi for breakfast at the Tsukiji Ma- JNTO rket, go to Asakusa (known as the low town or old town). There, start 2 your visit at the Kannon de Asakusa Temple, founded in 628 a.c. to provide home, so legend has it, to the Saint of Mercy who was fi shed out of the Sumida River. In the surrounding areas of the temple, don’t miss the opportunity to “purify” yourself by drinking the natural spring water, smelling incense smoke and reading “omikuji” (folded fortune paper). If you take the subway, you will be in Ginza in just 18 minutes. To enjoy the city’s gastronomic delights, go to the restaurant of chef Kihati, famous for his innovative, delicious and sophisticated “French- Japanese fusion” dishes. Taste the tempura at the traditional Ten-Ichi or, if you prefer, at the Yonemura. But if it’s art or fashion you’re looking for, 1 Japanese 2 Mount take a trip down to the districts of Roppongi, Omotesando and Harajuku. food: enjoy Fuji: only an In Roppongi, you will fi nd theRoppongi-Hills , home to the famous Mori the delicacies hour’s train Art Museum and countless stores and restaurants. At the end of the of the Tsukiji ride away afternoon, travel to Harajuku, where youngsters from far and wide take market from Tokyo part in dance shows, music and cosplay, transforming the district into a stage teeming with tourists. At night, dine out at Umenohana, speciali- 3 Asakusa: 4 District of zed in tofu, or at Inakaya, which offers a variety of grilled fi shes, meats take a walk Shibuya: stores and vegetables right in front of the client, in “traditional, hillbilly” style. around the with irresistible JNTO JNTO Kannon Temple products 3 4

80 P I B P I B 81 Globe-Trotter • In Transit EDUARDO FERREIRA*

Eduardo, on one of his trips around Climate the world changes

Eduardo recalls how his interest in investment and development

led him to travel the world EDUARDO FERREIRA/PERSONAL COLLECTION

XFORD IS A SMALL CITY, JUST aimed at attracting private capital from the “North” to invest in a 90-minute train ride away from renewable energy and energy efficiency projects in the “South”. OLondon, where the sun shows its face I worked for a year in the UK, in the environmental area of the only a few days during the year. I moved there investment bank JP Morgan – where, among other tasks, we in July 2006 to take my master’s degree in structured applications in these projects. My master’s degree Climate Change and Business Management. from Oxford helped me a lot in getting this job. The content The population is internationally and cul- of the course is multidisciplinary, ranging from environmental turally diversified – in Oxford, you will see physics-chemistry to economics and law. This knowledge has university and post-graduate students ranging major value for financial analyses in a new and complex sector. from chess champions, Olympic swimmers and Also, in order to handle the money of other people, a key feature (literally) crazy scientists. of an investment banker is discipline. Oxford (due to the highly Pub chats were the best way to relax and academic nature of its courses) is demanding and taught me to clear my head. The success of someone taking have lots of discipline. their master’s degree in Oxford is exponen- During the expansion of the bank’s business model to Asia, tially related to their presence in the pub, and I put my name in the hat for a job position in Singapore. Less not in class. The pub conversational topics than two weeks later, I was arriving with two suitcases and a were as diversified as the people participa- bicycle in the “New York” of Asia, as many people call Singapore ting in them. At the end of the first year of my – although I personally disagree. If I was married and looking for master’s degree, I had made some good frien- a safe country with a good educational system for my children, I ds, traveled around and visited all the pubs in would go to Singapore. the region. I also dressed up as “Harry Potter” I recently moved to Washington, where I now work for the for black-tie dinners and for the exhausting World Bank. I arrived at the start of the US summer season and days of exams – I’m not kidding: as if spen- was very well received. The opportunity arose when I saw an an- ding three consecutive days locked away in a nouncement to work in climate finance. It was a highly competitive room writing pages and pages of exam papers selection process, but the development profile was always an ob- wasn’t enough, we had to this in a suit, bow- jective in my career because I seek congruence between financial tie and academic gown. investments and development. I have really liked Washington, but Since I wanted to work with sustainable I plan to return to São Paulo before the 2014 World Cup. development and environment, I specialized in the mechanism of clean development created by the Kyoto Protocol as an instrument *Eduardo Ferreira, 30, is a specialist in climate change at the World Bank

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