Armínio Fraga: O País precisa encarar o problema da concentração de renda | THE BUSINESS OF LIFE

Published on: January 23, 2024 In a country as unequal as Brazil, it's necessary to have a "slightly more left-leaning" vision, says former Central Bank president Armínio Fraga. "It's not a left of dictatorship of the proletariat, nationalization of the means of production. It's not that. But having a tax system where the rich pay 5%, 10% in income tax, that's wrong," says the economist, founder of Gávea Investimentos. In his view, the tax reform was an important step, but insufficient to resolve the distortions of the Brazilian model. "There's still a lot of barbarity in our system," he told Nilton Bonder in this episode of The Business of Life. President of the Central Bank during Fernando Henrique Cardoso's second term (1999-2002), Arminio sees income concentration as one of the country's greatest challenges. "Income concentration needs to be addressed as a problem. And it has several dimensions. One of them, which is extreme poverty, has been addressed, especially with the Bolsa Família program. But we have to go further." The solution, for him, depends on a more efficient state and quality public services. In this sense, reforms are essential. "Administrative reform is coming onto the radar. If reasonably well done, it could mean a great advance." With a doctorate in economics from Princeton University, Fraga has alternated his career between the financial market, government, and academia. In the United States, he worked with mega-investor George Soros and at Salomon Brothers bank. In Brazil, he was part of the Garantia team. In 1991, he headed one of the Central Bank's directorates for the first time and, eight years later, assumed the presidency. His current assessment of Brazil is that there has been progress, but much more room for improvement. “We need a calmer macroeconomy, with less uncertainty. I see Minister Haddad as very isolated, facing some difficulties.” For him, the Central Bank is doing a “good job,” but needs support to control inflation. “The guy alone can't push this rock uphill. He needs a little push from fiscal policy.” Arminio also argues that the “green economy” should be one of the pillars of Brazil's development. “It's our vocation and it's within our reach.” In The Business of Life, Rabbi and writer Nilton Bonder talks with successful personalities to discuss their stories in different dimensions. Among those interviewed in previous episodes are Marina Silvia, Vik Muniz, Abilio Diniz, Luiz Seabra, Marisa Monte, Nora Rónai, Roberto Medina, Nizan Guanaes, Luiza Trajano, and Wagner Moura. See the complete list. Watch it on Brazil Journal: https://braziljournal.com/arminio-fra...