Source: O Globo Online, 17/06/2009

BRASILIA - Despite being on the target of international investments in view of the probable overcoming of the financial crisis next year, Brazil is not yet ready to convert foreign capital into infrastructure works necessary for the country's growth, according to the executives of sector and specialists participating this Wednesday in a seminar that discusses the challenges and opportunities of the Brazilian economy after the turbulence.

According to the president of the Brazilian Association of Infrastructure and Basic Industries (ABDIB), Paulo Godoy, in addition to guaranteeing the financing of the projects, it is necessary to give legal conditions for the annual investment of R $ 160,9 billion foreseen by the sector in five years years, of which R $ 100 billion will be turned to the energy area (oil, natural gas and electricity).

- We have to prove that a democratic system is capable of doing things, unlike China, which has a central power that makes it happen. But we have to prevent resources from slipping between our fingers and getting lost in the bureaucracy's ways - he said, proposing the creation of new funds for infrastructure to operate concessions and partnerships with the government.

For the former president of the Central Bank (BC), Gustavo Loyola, Brazil will come out stronger from the crisis because other economies previously considered solid showed their weaknesses, considering the size of the shock. Faced with this new scenario, the trend is to diversify the risks of financial agents.

- International investors will have to bet on other countries, other currencies. Brazil, as a major emerging country, should benefit - said the economist.

However, Loyola considers that the country is not yet institutionally prepared to receive more resources and direct them to investments in infrastructure and in the productive sector. Among the main obstacles would be the difficulty in touching projects stuck due to environmental or accountability issues. He defended, for example, that the performance of bodies such as the Comptroller General and the Federal Audit Court punish any irregularities without paralyzing the works already in progress.

- The rules must be very clear, because the investor is not afraid of risk, he is afraid of uncertainty, which is when he is not even able to map the risks - said Loyola.

The president of the Brazilian Chamber of Construction Industry (Cbic), Paulo Safady Simão, also complained that the execution of important infrastructure projects for the country has faced problems in the environmental licensing processes.

- Nobody is against the inspection and protection of the environment, but the thing is getting exaggerated, while we need agility. Many times we have a project approved by the regional agency, but in the middle of the work, an environmental agency from another sphere appears and embargoes - he said.

The attorney general of the Union, José Antonio Dias Toffoli, said that the variety of independent control bodies is a premise of the rule of law and is an added value of Brazil to be shown to investors, who do not find a similar legal system in other emerging economies.

- More than changing legislation and discussing the role of these bodies, we have to discuss management and the efficiency of public administration. In addition, we have to think together with the private sector about mechanisms for not talking on paper, in the judiciary, which is always time-consuming - he suggested.