In short, this phenomenon is the result of two misunderstandings: the first concerns the design of our industrial policy. Countries that have succeeded (South Korea is perhaps the most paradigmatic example in this regard) have built industrial policies that have protected the industry in its initial period. Yet that, gradually, was exposing the industrial companies to the international competition. Unlike them, we opted for a semi-autarchic industrial policy, which isolated much of the industrial sector from competition from other countries.

In addition, it was important to build an ecosystem conducive to industrial development. Successful countries have created appropriate business environments, maintained their macroeconomics, invested in infrastructure, qualified their workforce, and other actions.

Brazil, however, has advanced very little on these fronts.