Listen to the Finance Minister…

Jair Bolsonaro, the newly elected brazilian president, doesn’t seem to be the most articulate politician available or the one with highest conviction behind his proposed agenda during the elections. But he surely is smart enough to have invited Paulo Guedes to work beside him.

So far, my view is that Paulo Guedes has a great sense of what to do and is working towards his goals in good pace. Despite criticism that he doesn’t work well in groups, often imposing his views, it might just work if there’s a team of military folks, Bolsonaro’s core team, to handle Guedes’ orders.

A lot of people are focused on the difficulty of the approval of Pension Reform, but most are forgetting about all the changes that don’t necessarily need approval from Congress to happen and that are moving forward.

These are measures related to cost cuts, productivity growth, reduction in bureaucracy, etc. They are key microeconomic reforms that for a country like Brazil are low-hanging fruits.

Those focused on the macro might fail to see this.

Here’s a link (in portuguese) that I recommend all interested in investing in Brazil to read: (Google Translator)

Guedes diz que metade dos servidores vai se aposentar e descarta concursos: ‘Vamos investir na digitalização’

Guedes won’t hire new employees for positions left by retired public servants:

“Cerca de 40% a 50% do funcionalismo federal irá se aposentar nos próximos anos, e a ideia é não contratar pessoas para repor. Vamos investir na digitalização.”

Below, from the folks that Bolsonaro chose for top jobs in large public companies.

Rubem Novaes, president of Petrobras, says:

Como liberal, somos contrários a empresas estatais. Petrobras também privatizada e o BNDES extinto, esse seria o meu sonho. Mas é como a música dos Rolling Stones, “You Can’t Always Get What You Want” (15/03/2019)

Roberto Castello Branco, president of Banco do Brasil, says:

Estou convencido que o Banco do Brasil deveria ser privatizado. É como se tivesse bolas chumbo nas pernas para competir com os bancos privados. Tenho dificuldade de fechar agência. Se você chega ao interior (do país), as autoridades são o prefeito, o padre e o gerente do Banco do Brasil (15/03/2019)

Pedro Guimarães, president of Caixa Econômica Federal:

Descobrimos que temos sete prédios na Avenida Paulista e 15 prédios em Brasília. A Caixa não precisa disso. Vamos buscar uma racionalização. A expectativa é reduzir as despesas em R$ 3,5 bilhões em dois anos (09/03/2019)

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