Landau: Lula plants a new disaster with industrial policy – 01/23/2024 – Panel

Economist Elena Landau assesses that the new industry stimulus program announced by the government is bad, has backward ideas and that, just as he planted the “disaster” of the Dilma governments in 2010, President Lula (PT) is “planting the disaster” of his successor at Planalto.

Nova Indústria Brasil, which is expected to generate around R$300 billion in contributions by 2026, brings a developmental vision and revisits PT proposals, such as the emphasis on national content and targeted credit.

“It’s like this: you put the new one in front of the old one. Again, you will choose the sectors carefully, again you will give targeted credit, again you will interfere in the market. It’s only with a new name”, he criticizes.

Landau, coordinator of the economic program of the then presidential candidate and now minister Simone Tebet (Planning), calls the national content policy a delay.

“It created a huge delay at Petrobras. The technological policy of doing things in Brazil will not work”, he adds. “The philosophy is the same as always, right? Protected economy, subsidies, electing certain sectors. So, as a design, it’s bad.”

The economist states that it is necessary to pay attention to the quality of the projects. “Otherwise it’s going to be R$300 billion worth of bad project. So it’s very bad. There’s nothing to celebrate there.”

She emphasizes that the problem in Brazil is not financing projects, but legal security. “It’s very sad to see this without any evaluation of public policy, because it’s not just a developmental ideology against I don’t know what, it’s you making public policy without evaluation.”

Landau also criticizes the president’s speech that money is not a problem. “The philosophy, again, is that you will spend. In 2010, Lula planted the disaster for Dilma’s governments. He is again planting the disaster for whoever comes in 2026 and 2027. It’s exactly the same. The harm from this policy won’t go away in a year and a half. The disaster of this policy will be left to his successor.”

The economist also says she thought it was good that ministers Fernando Haddad (Finance) and Tebet were absent from the announcement — both were fulfilling agendas in other states. “I thought it was very good that Haddad and Simone were not present in the ad. Very good signage.”

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