Covid-19: Brazilian economists and business representatives demand new government measures

RIO DE JANEIRO, BRAZIL – More than 200 economists, ex-ministers, bankers and entrepreneurs on Sunday, March 21st, published a manifesto calling on the federal government for more effective measures to tackle the coronavirus pandemic.

The letter, which should be forwarded to representatives of the three Branches of Power, cites four urgently needed measures; to step up the pace of vaccination against Covid-19; to distribute masks free of charge and order their use; to implement social distancing measures; and to create a national body to coordinate the measures.

Signing the manifesto, among others, are the ex-ministers of the Treasury Marcilio Marques Moreira, Pedro Malan, Mailson da Nóbrega, and Rubens Ricupero; the ex-presidents of the Central Bank Afonso Celso Pastore, Arminio Fraga, Gustavo Loyola, Ilan Goldfajn, and Pérsio Arida; and the ex-presidents of the BNDES Edmar Bacha and Eleazar de Carvalho. Also endorsing the document are the president of Credit Suisse, José Olympio Pereira, the co-presidents of the board of directors of Itaú Roberto Setubal and Pedro Moreira Salles, and the ex-chief economist of Bradesco Octavio de Barros.

The letter begins with an overview of what the crisis caused by the pandemic represents for the country. They classify the situation as “bleak” and criticize the federal government’s actions to date. “This recession […] will not be overcome until the pandemic is controlled by competent federal government action. It underutilizes and misuses the resources at its disposal, including by ignoring or neglecting the scientific evidence in the design of measures to tackle the pandemic,” reads the text.

The letter points out that the delay in vaccinating the population is more damaging than the reduction in economic activity for the economy as a whole. According to economists, the reduction in activity cost a loss of R$58 (US$10.5) billion in tax revenue at the federal level. The delay in immunization, in turn, will cost R$131.4 billion in terms of productive ungenerated income, say the economists.

The text quotes data on the retraction of the economy, unemployment and indebtedness of small businessmen. It says that, with 40% of the country’s labor force being casual workers without any protection against unemployment, immediate action by the federal government is required. The letter calls for measures to support small and medium-sized businesses and proposes “a reform in the social protection system, aiming to improve the current social assistance network and provide insurance for informal (casual) workers.”

“We are on the threshold of an explosive phase of the pandemic and it is essential that from now on public policies are based on data, reliable information, and scientific evidence. There is no more time to waste on sterile debates and fake news. We need to be guided by successful experiences, by low-cost and high-impact actions, by initiatives that can actually reverse the unprecedented situation that the country is experiencing,” states the manifesto.

Another point in the letter addresses the need for integration of the different spheres of power in the adoption of measures to prevent the spread of Covid-19; it cites successful international experiences with the adoption of a lockdown. “The need to adopt a national or regional lockdown should be assessed. It is urgent that the different levels of government be prepared to implement an emergency lockdown, defining criteria for its adoption in terms of scope, range of activities covered, implementation schedule, and duration.”

Furthermore, the signatories to the manifesto suggest that, in the absence of any coordination by the Ministry of Health, national coordination could be assumed by “a consortium of governors – guided by a commission of scientists and experts.”

Source: Exame