Industrial and Foreign Trade Policy (PICE)
Running along in parallel with the Collor Plan was the PICE, a program which aimed to both raise real wages and promote economic openness and trade liberalization.
Selected policies included the gradual reduction of tariffs (with the selective protection of certain key industries), an export financing mechanism through the creation of a Foreign Trade Bank (similar to the American Ex-Im Bank), reduction in customs duties, implementation of anti-dumping mechanisms and the use of government-generated demand for high-tech sectors.
On paper, the PICE had seemingly contradictory goals: to stimulate the entry of foreign companies while increasing local innovation.
Later studies by the Institute of Applied Economic Research (IPEA), an independent government think tank, argued that the policy seemed to have produced that very contradictory effect: local production saw improvements in quality and productivity in face of foreign competition, but it simultaneously curbed domestic innovation due to unrestricted competition from imported technology.
Read more about this topic: Plano Collor
Famous quotes containing the words industrial, foreign, trade and/or policy:
“A few ideas seem to be agreed upon. Help none but those who help themselves. Educate only at schools which provide in some form for industrial education. These two points should be insisted upon. Let the normal instruction be that men must earn their own living, and that by the labor of their hands as far as may be. This is the gospel of salvation for the colored man. Let the labor not be servile, but in manly occupations like that of the carpenter, the farmer, and the blacksmith.”
—Rutherford Birchard Hayes (1822–1893)
“Europe has a set of primary interests, which to us have none, or a very remote relation. Hence she must be engaged in frequent controversies, the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves, by artificial ties, in the ordinary vicissitudes of her politics or the ordinary combinations and collisions of her friendships or enmities.”
—George Washington (1732–1799)
“Literature flourishes best when it is half a trade and half an art.”
—W.R. (William Ralph)
“There is absolutely no evidence—developmental or otherwise—to support separating twins in school as a general policy. . . . The best policy seems to be no policy at all, which means that each year, you and your children need to decide what will work best for you.”
—Pamela Patrick Novotny (20th century)