ECLAC Strengthens its Cooperation with Brazil to Contribute to More Productive, Inclusive and Sustainable Development in the Country and Region

• Social development
• Population and development
• Production, productivity and management

During his visit to Brasilia, José Manuel Salazar-Xirinachs, Executive Secretary of the United Nations regional organization, signed agreements with BNDES and the Ministry of Management and Innovation in Public Services, celebrated 53 years of cooperation with IPEA, and presented a document with recommendations for a national plan of electric buses, among other activities.

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The Economic Commission for Latin America and the Caribbean (ECLAC) reaffirmed its commitment to productive, inclusive, and sustainable development in Brazil and throughout the region with a series of concrete initiatives for cooperation and technical assistance aimed at strengthening the South American country's productive, technological, and institutional capacities.

During an official visit to Brasilia on 20 and 21 November, ECLAC Executive Secretary José Manuel Salazar-Xirinachs highlighted Brazil's role on the current global economic and geopolitical stage and reiterated the need to overcome the three traps that can curb sustainable development in the country and the entire region: a low capacity for growth; high levels of inequality, low social mobility, and weak social cohesion; and low institutional and governing capacities.

Brazil, along with other countries in Latin America and the Caribbean, has vast natural resources and technical expertise that can not only create low-carbon solutions in different spheres but also provide powerful momentum toward a more productive, inclusive, and sustainable future in the region, remarked José Manuel Salazar-Xirinachs.

On Thursday, 21 November, ECLAC's highest representative and the Vice President of Brazil and State Minister of Development, Industry, Trade and Services, Geraldo Alckmin, participated in the event Promoting the Electric Bus Chain in Brazil: Proposal of a National Plan for the Sector, organized by both institutions with the support of German Cooperation as part of the Inclusive and Sustainable Smart Cities Program (CISI).

The use of electricity and vehicular interconnectedness are emerging as significant trends in urban mobility, affirmed José Manuel Salazar-Xirinachs. Switching bus fleets over to electric power is a strategic area for sustainable investment given its potential benefits regarding energy efficiency, a reduction in local air pollution and greenhouse gas emissions, and positive impacts on health, quality of life, productivity and competitiveness, as well as on the effective enjoyment of citizen rights, he added.

The electric bus industry is one of what ECLAC has identified as "dynamizing sectors" for productive transformation, the Executive Secretary stated. "Progress in the electric mobility industry in Latin America will largely depend on what Brazil is able to offer. Promoting investment in the production of electric bus lines, infrastructure, technology, and services is fundamental in order to take advantage of opportunities in demand not only in Brazilian cities but also in other countries," he said.

Vice President Geraldo Alckmin thanked ECLAC for its support and stressed that "Electric is a very important technology, and we must promote it. MOVER is a governmental green mobility program that promotes technological paths to decarbonization, including the electric mobility industry. However, it is important to understand that the world is globalized, but the market is inter-regionalized. As such, we must pay attention to the issue of competitiveness, costs, fiscal pressure, interest rates, the cost of capital, human resources, innovation, and logistics. The partnership between the Ministry of Development, Industry, Commerce, and Services (MDIC) and ECLAC is of the utmost importance for us to be able to stimulate the community and generate decarbonized mobility, be at the forefront of innovation, and preserve quality of life for the population," he stated.

During the event, ECLAC presented a report titled Guidelines and Proposals for a National Plan of Electric Bus Lines in Brazil (in Portuguese), which includes over 100 recommendations. For a year, more than 100 key actors were called upon in over 70 institutions in the electric mobility sector, including experts, companies, banks, and financial institutions, as well as representatives from academia and civil society.

On the same day, the IPEA-ECLAC Seminar: 50 Years of Cooperation for Development took place, opened by the Assistant Secretary for Institutional Articulation of Brazil's Ministry for Planning and Budget, João Villaverde, representing Minister Simone Tebet; President of the Institute for Applied Economic Research (IPEA), Luciana Mendes Santos Servo, and the ECLAC Executive Secretary, José Manuel Salazar-Xirinachs.

The day's activities, which included the participation of government representatives, ECLAC officials, and distinguished specialists, addressed issues such as opportunities and challenges regarding inclusive and sustainable development, digital and sustainable productive development, democracy and social cohesion, and the region's silver economy.

During his speech, Secretary João Villaverde stressed that we must continue to work and consider what new foundations we need to plan and develop Brazil, including its society. "To this end, we must understand current society. We must pay attention to the climate. We must think about how to be more resilient and create new opportunities," he said.

IPEA President Luciana Mendes Santos Servo emphasized the rich history of cooperation between the two institutions and addressed some of the central challenges for Brazil and the region. "We no longer have a climate crisis, we have a climate emergency. Latin America must come together in this debate to solve the problem structurally and create policies in an integrated and coordinated manner," she says. IPEA's current strategic focus, she noted, is specifically related to analyzing "the economic foundations and opportunities in Brazil and the Latin American region so that we can truly create a Big Push toward sustainable and inclusive development."

José Manuel Salazar-Xirinachs also reviewed the fruitful history of cooperation between IPEA and ECLAC, describing it as the Commission's "longest-lasting partnership," and highlighted the importance of considering the challenges, complexities, and opportunities the 21st century holds for a productive, inclusive, and sustainable future for Brazil and the region.

ECLAC, he explained, has identified at least 14 dynamizing sectors that drive policy and investment and transform development styles: 1) Energy transitions, including renewable energies, green hydrogen, and lithium; 2) Electric mobility; 3) Circular economy; 4) Bioeconomy, including sustainable agriculture, genetic resources, and bioindustrialization; 5) Agriculture for food security; 6) Sustainable water management; 7) Sustainable tourism; 8) Pharmaceutical and life sciences industry; 9) Medical devices manufacturing industry; 10) Advanced manufacturing; 11) Modern or ICT-enabled services exports; 12) Care society; 13) Labor intensive services; and 14) e- government.

"For each of these topics, we insist that it is not enough to analyze and discuss 'what to do,' but that we must also analyze 'how to do it,' that is, how to manage significant transformations. To do that, we insist on four basic themes: governance layouts, the technical, operational, political and prospective capabilities, spaces for social dialogue, and the political economy of reform," the ECLAC Executive Secretary summed up.

The visit to Brasilia also included, on Wednesday, 21 November, the signing of a cooperation agreement with Brazil's National Bank for Economic and Social Development (BNDES) and the Brazilian Cooperation Agency (ABC) aimed at strengthening the state's abilities through an exchange of knowledge and training of key actors for the development agenda in the region. José Manuel Salazar-Xirinachs, BNDES President Aloizio Mercadante and ABC Director, Embassador Ruy Pereira, participated.

On Thursday, ECLAC and the Ministry of Management and Innovation in Public Services signed another cooperation agreement that includes a Work Plan aimed at building a modern, efficient state oriented towards more productive, inclusive, and sustainable development. The Plan's two cornerstones are the creation of a National Strategy for Sustainable Public Procurement, which will be tied to high-priority policies such as "New Industry Brazil" and the country's Ecological Transformation Plan, as well as strengthening the Rural Environmental Registry (CAR), a crucial tool for environmental management and combating deforestation. The agreement was signed by Executive Secretary José Manuel Salazar-Xirinachs and the Minister of Management and Innovation in Public Services Esther Dweck.