In Davos this week, Economy Minister Paulo Guedes criticized Belgium and France for “delaying” Brazil’s entry into the OECD, the Organization for Economic Cooperation and Development. Guedes claimed that protectionist policies in these countries would hinder Brazil’s membership. Days later, President Jair Bolsonaro said that Brazil’s accession to the organization was only a matter of time, and that “in 2 or 3 years, Brazil will enter the OECD”.
The case is old, and this conversation is more complex than our officials thought. started and won push In previous administrations, there was always a difference of opinion within the country. Brazil has been a part of various programs and committees, participating in the organization’s meetings since at least 1996. In 2012 it was classified as a “Key Partner” of the institution. Years later, it signed a Cooperation Agreement with the OECD in 2015 and requested membership as a full member in 2017.
In January 2022, Brazil strengthened this dialogue and was formally invited to start the accession process. However, this was not the first time. In 2007, Brazil was already subject to such an attack. However, then President Luiz Inácio Lula da Silva had refused the OECD’s invitation.
The process of getting involved in this type of structure is long and complex and can take years. Economic freedom includes adherence to various protocols and rules in addition to the adoption of measures that guarantee the efficiency and transparency of public policies. Therefore, they demand a complete restructuring of the Brazilian State, with the effective consolidation of a reform agenda and the creation of numerous internal political agreements for it.
Joining the OECD means receiving a seal of endorsement of good practice from an international perspective. It contributes to increase Brazil’s credibility and helps to increase its competitiveness and business environment in the country. It will also help attract investments and raise funds abroad at lower interest rates.
On the other hand, it will definitely require commitments in sensitive areas such as the environment. This will also involve a relative limitation of macroeconomic management, as there are certain expectations involving the degree and practices of State intervention regarding the control of interest rates, exchange rates and the taxation of foreign capital. Finally, as everyone knows, joining the OECD means absolutely giving up special treatment and benefits in the WTO. This means not taking advantage of longer periods to comply with trade agreements or a wider margin to protect national products.
We have known, at least since Jean-Paul Sartre, that “hell is other people”. It is true that various actors around the world may be interested in hindering the progress of the Brazilian election, as Minister Guedes has argued. However, to attribute our difficulties in this area to third parties is to filter the truth, at least from an absolutely optimistic point of view. In the coming years, our biggest problem for the OECD will be the lack of internal consensus.
source: Noticias
