The administration that will take office in Brazil next year will face huge challenges. In order to discuss and propose public policies that allow Brazil to return to the path of sustainable growth, FGV’s Brazilian Institute of Economics (IBRE), in partnership with Comitê para Desenvolvimento do Mercado de Capitais (CODEMEC), will gather managers from the public and private sectors, researchers and experts in several fields on October 1 and 2. The meeting takes place at FGV’s Cultural Center (Praia de Botafogo, 186. Rio de Janeiro/RJ), from 8:30 a.m. to 6 p.m.

The event will be attended by names such as Thomas Tosta de Sá, CEO of CODEMEC; Paulo Manoel Protásio, Chairman of CODEMEC’s Board of Directors; Guilherme Afif, President of Sebrae Nacional; Luiz Ildefonso Simões Lopes, Executive Chairman of Brookfield; and Carlos Rebello, Director of the Brazilian Securities and Exchange Commission (CVM).

The agenda for the first day includes topics relevant to the Brazilian economy, such as the creation of a new standard for the social security system, with emphasis on a mixed distribution and capitalization model, which has been debated by the economists of the presidential candidates. Another relevant issue is investments in logistics and social infrastructure and the participation of BNDES in the process.

For Manoel Pires, Coordinator of the IBRE’s Fiscal Policy Observatory and one of the debaters, the social security reform is necessary even if the regime changes. “The distribution system assumes that today’s generation will fund the current generation of retirees. In the capitalization scheme, today’s generation of workers makes its own savings to finance their retirement. Thus, the regime is balanced by definition. The problem is that people will accumulate a small amount of savings since they retire early. In practice, therefore, it would be necessary to set a minimum age. In other words, the capitalization system should be accompanied by the same reform that has to be made in the distribution system. Therefore, it seems to me that discussing capitalization only makes sense after the current system’s parameters are reformed”.

On the second day, the discussion will revolve around the role of entrepreneurship in the development of national innovation and technology, driven by new sources of financing with the strengthening of the capital market. The event will include a debate panel on the electoral scene at the end.

“I am very optimistic about the role of the capital market in Brazil’s economic and social development for three reasons. First, the government periodically transfers Treasury funds to the BNDES, lending to companies at subsidized interest rates. That money is gone and the new BNDES policy is already geared to other sources of funds from the capital market. Second, the interest rate (Selic) dropped. With the drop, investors will have to seek other investments, such as debt securities and debentures. Third, and most important of all, is what I call ‘the new role’ of micro, small and medium enterprises, which create the most jobs and innovation in the economy, do not depend on the government and rely on capital market instruments for financing, such as ‘crowdfunding’, venture capital and private equity funds”, said Sá.

The event is open to professionals, students and others interested in the topics that are being discussed. Go to the website to learn more and to register.