Brazil Plans To Use $18.5 Billion In Public Funds To Accelerate Economic Growth

Brazil has some work to do. The country is still trying to shake off the worst recession in more than 90 years. The new President of Brazil, Michel Temer, is trying to pull economic rabbits out of his country’s economic hat. Temer plans to introduce a new “Advance” or “Avancar” program soon. That program will replace the Dilma Rousseff PAC program. The plan is to invest $18.5 billion in public funds by the end of 2018.

 

 

About half of the money will be used to rebuild the country’s crumbling infrastructure, as well as, fund transportation projects. Those projects include airport, highway, and railway restoration programs. The other half will go to housing, defense, education, health, water projects, tourism, and sports. The Rousseff plan was not that effective, but business leaders like Flavio Maluf, the president and CEO of Eucatex, think Temer’s plan will help the country’s GDP growth over the next five years.

 

 

Eucatex is one of Brazil’s leading exporters of building supplies. The Sao Paulo company sells floorboards, ceiling tiles, paint, varnishes and other building materials in countries around the world. Eucatex has an excellent reputation, and Flavio Maluf is one of Brazil’s leading environmentalists. Maluf’s grandfather was an entrepreneur, so he started a company that only sold one product back in 1951. The elder Maluf was a sawmill owner, and the mill had excess eucalyptus wood. Maluf came up with a eucalyptus wood ceiling tile, and he began selling the tiles. The response to the ceiling tile was overwhelming. Eucatex began to export the ceiling tiles to Argentina and Germany, and the company is now one of Brazil’s success stories.

 

 

Flavio Maluf is not only a successful corporate executive, he is also one of the country’s steadfast environmentalists. Eucatex is a good example of cause capitalism. For every tree the company uses to make building products, the company plants another tree. Eucatex operates four factories, and all of those facilities use clean energy. Eucatex offices in Brazil, and around the world, also use clean energy. Maluf and other corporate leaders think the Temer plan will also help the environmental causes.

 

 

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