Democracy is the basis for economic development, says business center leader

“Democracy brings competitiveness to the country. Places where democracy is not very stable are unsafe for investment. So it is an asset.”

This statement was made by Marina Grossi, president of CEBDS (Brazilian Business Council for Sustainable Development), an entity that brings together more than 80 business groups operating in Brazil, whose revenue is equivalent to 47% of the country’s GDP.

Among the associated companies are giants such as Ambev, Banco do Brasil, Bradesco, BRF, Cargill, JBS, Petrobras and Vale.

In an interview with SheetGrossi commented on the organization’s performance in the face of the elections and said that the group should meet to discuss President Jair Bolsonaro’s (PL) insistence on discrediting the electronic ballot box and the electoral process.

According to her, there is no talk about the possibility of contesting the results of the polls, but the CEBDS wants to make it clear that the legal framework and respect for the laws are fundamental elements for attracting investments and for the sustainable development of Brazil.

“In all our declarations, the presupposition is the validity of democracy. For us, this is a basis without which nothing else exists”, he says.

In April, CEBDS published an open letter to candidates with the main guidelines for the next government. What should be a priority? Sustainability has entered the agenda, now it is mainstream. We see it as synonymous with development. This is the third time that we have made the letter for the presidential candidates, but it is the first time that the issue of ESG (environmental, social and governance, its acronym in English) is so strong.

An economy with greater prosperity, with resilience to climate issues has to be seen as synonymous with development. Development today equals a low carbon economy.

To see how important this issue is, today a good part of the Mercosur agreement with the European Union is based on environmental and social criteria. So the ESG stamp is increasingly being a condition for the new normal in terms of projects seeking funding. The direction is unmistakably heading in that direction.

For Brazil, this is a source of funds. We have very concrete proposals in this regard, such as a regulated carbon market, which unfortunately has not yet been implemented.

Another proposal is that zero illegal deforestation actually happens. We had a victory for Brazilian diplomacy in Glasgow to bring forward the Brazilian target for 2028. Illegal deforestation has caused us enormous damage.

More than two years ago, we launched a statement against illegal deforestation and talking about how it harms not only the country’s image, but also the inflow of resources for our companies and for our state and federal governments.

I would also highlight legal certainty in the proposals. The security of our laws, of our Rule of Law. It is this security that attracts investors.

We are precisely seeking to influence with proposals that can be staggered for the next government. We were now with the former governor [Geraldo] Alckmin, was the first we talked to. We have a recording of Senator Simone Tebet and we should have a talk with her soon. We have already invited the top four on the list of candidates to talk to us and listen to these proposals.

Was there a response from President Bolsonaro about the presentation of these proposals? I don’t think there’s been an answer yet. They’re looking at the schedule.

You spoke about the centrality of the climate issue for the development of the economy. How do you evaluate the environmental policy of the Bolsonaro government? What we have sought in our positions is to say that it is not possible to continue with increasing illegal deforestation. We made that very clear. It’s not easy, but we need to fight it.

We have several positions showing that this has been hindering us, it has taken away resources. Some associate CEOs say that this stain takes Brazil out of a conversation where we only have an advantage. We keep defending ourselves about one thing, when in fact, if we solve the issue of deforestation, 80% of emissions are solved.

You need to show a plan for this. The government signaled in Glasgow that it was going to be more ambitious. The important thing is that this is done. The government promised, in this it had our support, but it cannot not do it. It has to happen, otherwise we fall into disrepute. That’s why we are insisting a lot in this letter to the presidential candidates for this to be resumed with great force. Our credibility depends a lot on it.

Does CEBDS position itself or intend to make any definition on which candidate to support in the electoral dispute? We cannot, because we are non-partisan. What we advocate is that, regardless of the government, companies have fiduciary duties, they will have to deal with that. As long as we are in a democratic regime, and the person is democratically elected, we will have to deal with him. Any company. That’s why we cannot be partisan, because we will respect whatever the outcome. The election determining one or the other, we are going to talk to him.

Now, whoever it is, and it is Brazil that will decide who will be the winner of this, it is necessary to make this agenda. The ruler or ruler who wins will be charged in the future for opportunities he may be missing.

Several entities and businessmen are signing a manifesto for democracy. Has CEBDS signed or intends to sign? We had a conversation. In all our statements, the presupposition is the validity of democracy. This for us is a basis without which nothing else exists. When we talk about legal security, zero illegal deforestation, we are presupposing a democratic environment, where all laws are respected. Not respecting the law or legal uncertainty does not attract investments.

These are words dear to the business sector: predictability, milestones, guidelines that guide and are complied with. Democracy is a presupposition, a foundation of anything else.

At the leadership council meeting we had last Thursday (28), the CEOs supported making this very clear in the proposal to the presidential candidates, because it is an assumption.

Companies are signing, sectorally or not, but for us this is a presupposition for any discussion. Democracy brings competitiveness to the country. Places where democracy is not very stable are unsafe for investment. So she is an asset.

Have member companies expressed any concern about the president’s insistence on discrediting the electronic voting machine and the electoral process? Let’s have a meeting that will discuss just that. But I can tell you that, if there is legal respect as expressed in everything that we put, without a doubt everyone agrees that this is a necessary asset for the legal system and for the predictability and competitiveness of the country.

But does the group see any risk of electoral contestation? We don’t discuss it. The point is just to make it clearer than that [democracia] it’s an assumption. There was no discussion as to whether there is risk or not. We are already showing that the legal framework and respect for the law is a fundamental element for attracting investment.

Would an eventual electoral contestation impact the market and the sustainable development agenda? We don’t really discuss it. I cannot as the president of CEBDS say anything, because this was not even considered. Democracy was discussed [no sentido de entender] if we have to make this more explicit, but if there is a risk this was not even raised as an agenda item.

Even with Alckmin, who was there, he even said that there is polarization and all, but there was no such atmosphere. We are sad that polarization does not help to discuss the proposals, because we are all the time in a conflict that has little space to discuss proposals, as it should be.

This is the third election that CEBDS participates in collaborating with suggestions and proposals. Do you remember at any other time seeing a movement of the business community in favor of democracy? How does CEBDS see this? We do not deal with this topic. But democracy is a fundamental value. At other times this was not dealt with.

Does the fact that this is new show a concern of the business with this issue now? Again, I cannot speak as president of CEBDS. I can only speak of what was dealt with. There is no doubt for us that democracy is a presupposition for all these actions. It’s a universal value. Obedience to laws and rules cannot do without democracy. She is the support for all of this.

X-RAY

Marina Grossi, 60

An economist, he is president of CEBDS and a member of the boards of directors of companies and organizations such as: Neoenergia, Norte Energia, Fundo JBS Amazônia and GRI (Global Reporting Initiative). She acted as a climate negotiator, representing the Brazilian government at international conferences, and led the group of developing countries (G77 + China) in 1999. Also with the government, she headed the research sector on global changes, as an advisor to the Ministry of Science and Technology, and coordinated the Brazilian Forum on Climate Change, from its creation, in 2001, until 2003.