São Paulo, July 1, 2003 (Agência Brasil - ABr) - Minister Tarso Genro asked the members of the Economic and Social Development Council to be patient, and he reiterated that the goal of the group is to establish a consensus to define the paths for Brazil's economic and social development. The secretary of Economic and Social Development made this statement at the first meeting of the thematic group that is discussing the "Strategic Foundations of Development." In São Paulo, on Monday (30), they discussed the possibility of assigning priority to short-term proposals. The meeting of the thematic group continues today in Rio.

The president of the Federation of Industries of the State of São Paulo (Fiesp), ´Horácio Lafer Piva, said that it is necessary "to have the courage to see what doesn't need to be done." He considered the role of the government positive, acting as an interlocutor with segments of society, but he emphasized that it is up to the government to find instruments that permit greater control of public finances. Piva also underscored the importance of alleviating burdens in the areas of taxation, social security, and labor relations.

He said that the challenge is to determine priorities, but he recalled that it is necessary to establish conditions for economic growth, even though current conditions, with high interest rates, do not allow this growth. Such growth would result in greater competitiveness and job creation, added the Fiesp president, who does not believe there will be growth this year.

For another member of the Council, the economist Luiz Gonzaga Belluzo, economic prospects for the second half of the year are a cause of concern: "We have very bad signs in terms of productivity and employment." Even though the government carried out a "competent" transition, he said, questions such as currency appreciation threaten the economy's long-run equilibrium, and the public sector lacks investment capacity. Belluzo warned that, if this economic trend continues, the country will end the year in a serious recession.

"We can't neglect what is happening with the economy right now," affirmed Belluzo, who foresees timid growth this year. "Between zero and 1%," if measures such as reducing interest rates are taken. "To the extent that interest rates fall, the funneling of resources to cover the debt would be reduced a little, and the economy would have more room to grow." (DAS)