|No 53 Em Português|
e&e : the Organization and the Periodical
The e&e Organization
The e&e Organization and the Ministry of Science and Technology Sign a Partnership Contract
Previous studies disseminated by our Periodical have identified a 50% decrease in the capital productivity between 1970 and 1990 and this is the main hindrance in the real economy, restraining the Brazilian development. In December 2005 the Economy and Energy Organization – e&e, and the Ministry of Science and Technology have signed a partnership contract aiming at establishing the base for a capital productivity program in Brazil.
In this partnership the e&e Periodical will be the main communicating channel with society regarding the dissemination of results and permitting the healthy inspection of the project’s implementation.
The Working Program defines results, indexes, goals and terms whose anticipated dissemination will facilitate this control. A Follow-up Committee will be constituted in order to monitor the project.
Accordingly we are publishing in the present issue a summary of the Working Program established in the Partnership Contract between e&e and the MCT (No 0017/2005, D.O. 26/12/2005).
The project aims at supplying the Base for a Capital Productivity increase, which could constitute a national program. Associated with other initiatives of other governmental organisms and the civil society (as the texts edited about the subject by the STI/MDCI and the CNI), the project’s objective is to create conditions for surmounting the identified hindrance in the country’s economic development. The sectorial studies will try to identify in three sectors and nine enterprises the actions in the managerial and technological areas that will permit the best use of the existing capital goods, including the creation of a larger number of jobs using this capital. The constitution of a Follow-up Committee and the dissemination of results intend to create conditions for the continuity of the subject studies
Summary of the Working Program:
1. BACKGROUND AND JUSTIFICATION
The Economy and Energy Organization - e&e was constituted on July 31, 1998 as a supporting medium for the Periodical with the same name and in order to perform studies and develop projects in the economic and energy areas. On November 4, 2005 the Organization was granted by the Ministry of Justice the qualification of Civil Society Organization of Public Interest – OSCIP (in Portuguese).
The Economy and Energy Organization - e&e, whose statute were adapted to the requirements for its qualification as OSCIP, has essentially maintained its original finalities, namely:
· Contribution to the social and economic development of Brazil and other countries through research in the social, economic and production areas and the use of energy solely for peaceful purposes;
· Defense, preservation and conservation of the environment and promotion of the sustainable development;
· Promotion of economic and social development and fighting poverty;
· Elaboration of studies and research, development of alternative technologies, production and dissemination of information and technical and scientific knowledge concerning the ends mentioned above.
Various members of the Economy and Energy Organization - e&e have been working on the capital productivity subject for more than two decades. The subject was treated in studies of the former Secretariat of Industrial Technology (MIC) where the investment limitation was initially diagnosed as one of the problems for increasing the energy supply in Brazil. In the book “Brasil: O Crescimento Possível”, (Editora Bertrand 1966), the capital productivity decrease was identified as one of the hindrances to the country’s growth. Some of the authors of the book namely Carlos Feu Alvim (coordinator), João Camilo Penna, Omar Campos Ferreira and Aumara Feu, are members of the e&e Organization. The Economy and Energy periodical (edited by the Organization of the same name) has been publishing several articles about the subject, including doctor thesis about it. Presently the Ministry of Industrial Development and Foreign Trade (MDIC) and the Nation Confederation of Industry (CNI) are publishing a collection of articles about the subject with the coordination and participation of the e&e Organization.
From 1990 on, it is necessary in Brazil to invest twice the capital in order to generate one unit of the product relative to 1970. The capital necessity and the investment decrease have limited the Brazilian growth in the last two decades. A developing country where capital is scarce tends to have a larger productivity than that of developed countries and it gradually decreases in the normal development process. However, when the productivity rapidly approaches that of developed countries without their corresponding income, as in the case of Brazil, this maybe an inhibition point in the normal growth process.
The capital productivity decrease may be happening due to both the adoption of policies that are capital intensive as a whole and the reallocation of capital in sectors that are demanding the use of this factor. Therefore, the knowledge of its behavior at the aggregated and non-aggregated levels and the identification of the factors causing capital productivity decrease will permit to study the managerial techniques so that the resources will be allocated in a more productive and efficient way.
In the present project the e&e Organization would create a network of excellence for the subject that could be the base of a national Capital Productivity Program (or Multi-factorial Productivity emphasizing Capital Productivity).
A national program would be better managed when implemented by a Public Partner due to the initial actions such as the constitution by SETEC (Secretariat of Technological Development and Innovation) of a Follow-up Committee that will gather governmental specialists and officers.
2. OBJETIVES OF THE PARTNERSHIP
2.1. GENERAL OBJETIVE
The objective of the partnership is to favor the governmental and entrepreneurial planning in the sense of using better the existing production capacity, increasing the economic growth and directing investments to sectors or techniques that are less capital intensive.
Three levels of action will be considered:
• Sectorial (specific sectors)
• In the Economy as a whole
2.2. SPECIFIC OBJECTIVES
The specific objectives of the present proposal will be achieved through three lines of action in what concerns this partnership: a) diagnosis and articulations; b) data collecting and case studies; c) development and test of tools and d) dissemination of results These lines of action – listed in the natural chronological order – permit concomitant actions where there are already activities and studies (prior to the present one) in each one of the topics.
The means to be used to reach these specific objectives are:
• Management tools at the entrepreneurial level, including quality assurance, management of knowledge, business strategy and innovation;
• Identification of governmental actions repercussion on capital productivity so that they are coherent with the aim of increasing it;
• Establishment of decision-making strategies concerning investments at the governmental and entrepreneurial levels that takes into account the repercussions on capital productivity.
The main activities of the Project are specified below and the Objective Zero will correspond to the set up of the Follow-up Committee.
Objective Zero: ESTABLISHMENT OF THE FOLLOW-UP COMMITTEE
• Indication of the Follow-up Committee by the SETEC’s Secretary which will gather specialists and government officers as well as summon the first meeting.
Objective 1: DIAGNOSIS AND ARTICULATION
Phase 1.a (Report 1.a - Preliminary Diagnosis and Perspectives)
• Survey of the state of the art concerning capital productivity studies and its practical consequences on the development of Brazil and of other countries;
• Evaluation of perspective of national and regional growth using the projetar_e program (developed by e&e together with the consultancy firm ECEN Consultoria Ltda) and the impact on growth of improving capital productivity;
• Detect the repercussion on capital productivity of the governmental actions and suggest policies that are coherent with the purpose of increasing it;
• Catalogue the institutions and specialists connected with the subject;
• Information about policies and strategies already adopted in other countries aiming at increasing the capital productivity (legislation and regulations);
• Initial catalogue of articles and references about the subject that will be part of a data base at the Internet;
• Proposal of a capital productivity index at the national level to be periodically disseminated (possibly every three months).
Phase 1.b (Report 1b – Proposal of an Articulation Network)
• Start building an Articulation Network with national and international (UNESCO, OCDE, CEPAL, BID, BIRD, UNIDO) organizations as a support for creating knowledge in the area (which is important for the development of other countries as well);
• Identify the institutional partners at the governmental level (MCT, IPEA, BNDES, MDIC, MF, State Secretariats) and class associations.
Phase 1.c (Final Report - Conclusions of the Project and Suggestions of Future Strategies)
Objective 2: DATA SURVEY AND CASE STUDIES
Phase 2.a (Report 2.a - Preparation of Specific Studies)
• Choice of three sectors and three enterprises in each one of them for the case studies;
• Test the existing diagnosis tools in the selected industries in order to evaluate the capital productivity (program or programs developed in the country and OECD methodology);
• Deepen the productivity study for Brazil emphasizing the selected sectors.
Phase 2.b (Report 2b - Results of the Three Sectorial Studies)
• Comparative studies between the country’s productivity in these sectors and those in other countries;
• Study in nine industries regarding the comparison between the capital productivity evolution and the financial results and growth as well as the evolution of the managerial methods used.
Phase 2.c (Seminar and Conclusions)
• Presentation of the studies for each sector;
• Suggestions about the decision-making strategies regarding investments at the governmental and entrepreneurial levels that take into account the repercussions on the capital productivity.
Objective 3: DEVELOPMENT AND TEST OF THE MANAGEMENT TOOL
One Phase: (Report 3 and software)
• Development of a tool regarding the use of capital productivity data in the establishment of a strategy and entrepreneurial policy;
• Software to be directly used by the executive staff;
• Construction of indexes to be followed-up with the help of the software that will permit to simulate results of situations and guide decisions relative to the enterprise management.
Objective 4: DISSEMINATION OF RESULTS
One Phase (02 Workshops, elaboration and maintenance of the Internet Site and elaboration of dissemination material)
• Support to the dissemination of collected texts about the subject edited by STI/MDIC together with CNI;
• Organization of material for motivating seminars for government institutions, class associations and research and education institutions;
• Workshops of the executive personnel with the Articulation Network or with the Follow-up Committee for discussing the phases of the study;
• Elaboration and dissemination of the capital productivity Site;
• Production of material for news dissemination.
TABLE OF RESULTS AND GOALS
TABLE OF RESULTS AND GOALS (Continuation)
Graphic Edition/Edição Gráfica:
Tuesday, 11 November 2008.