February 2, 2011
Brazilian entrepreneur says emerging markets will shape global landscape for years to come
Mario Garnero, Chairman of Brasilinvest, Brazil’s pioneer merchant bank, stated that BRIC countries (Brazil, Russia, India and China) will be “the dynamo of world economic growth for the next 10 years”. He addressed an audience of 500 business and political leaders during the Troika Russia Forum 2011 held at Moscow’s World Trade Center this Wednesday.
Garnero’s talk followed lectures by former US Treasury Secretary and Economic Head of the Obama White House Lawrence Summers and Nobel laureate in Economics Joseph Stiglitz.
Analyzing the growth strategy of each BRIC country, Garnero indicated that China follows a clear-cut foreign trade strategy for over 3 decades. “China will go on as the industrial powerhouse of the world for many years, though focused primarily in export markets, Chinese domestic market will lag behind”, he suggested.
The Chairman of Brasilinvest also stressed India’s competitive edge in low labor costs and value addition in textiles, outsourcing and IT. He praised Russia’s large scientific community and suggested the recovery of Europe’s economy will greatly benefit Moscow. He called for greater trade and investment exchange between Russia and Brazil, whose potential is huge.
According to Garnero, Brazil’s President Dilma Rousseff, who took office a month ago, “is quite convinced of the need for labour, social security and fiscal updates in Brazil. She rolled-up her sleeves and is working closely with society towards these much-needed reforms”.
For the next 5 years, Brasilinvest will attract foreign resources to Brazil’s expanding infrastructure and mega sports events that will capture the world’s attention like the 2014 World Cup and the 2016 Olympics. “We will also contribute major real estate projects in the economic hub of Campinas (state of Sao Paulo) and the revamping of the Port area in Rio de Janeiro”, he added.
Garnero concluded that Brazil’ s stance in the global economy will result from its competitiveness in agriculture, mining, offshore, biofuels, planes and bank conglomerates. Revenues from pre-salt oil will allow for Brazil to expand its investment in education and innovation. “At Brasilinvest we will also channel new technologies that can help Brazil’ s improvement in the energy and IT industries, these are priority areas for us”, he concluded.