Rice Business - Global Field Experience (GFE) Sao Paulo, Brazil: Brazilian Business

Under the governments of Lula da Silva and Dilma Rousseff, Brazil aimed at creating a global market for ethanol as a green transport fuel, and ethanol diplomacy became a signature component of Brazil's international insertion at the time. This study examines Brazil's international ethanol strategy and creates a comprehensive overview of the theoretical and practical approaches that Brazil undertook to promote ethanol as a tool to achieve energy security and combat climate change in a framework of South-South cooperation.

While Americans have been deeply absorbed with the topic of immigration for generations, emigration from the United States has been almost entirely ignored. Following the U.S. Civil War an estimated ten thousand Confederates left the U.S. South, most of them moving to Brazil, where they became known as "Confederados," Portuguese for "Confederates." These Southerners were the largest organized group of white Americans to ever voluntarily emigrate from the United States. In Confederate Exodus Alan P. Marcus examines the various factors that motivated this exodus, including the maneuvering of various political leaders, communities, and institutions as well as agro-economic and commercial opportunities in Brazil. Marcus considers Brazilian immigration policies, capitalism, the importance of trade and commerce, and race as salient dimensions. He also provides a new synthesis for interpreting the Confederado story and for understanding the impact of the various stakeholders who encouraged, aided, promoted, financed, and facilitated this broader emigration from the U.S. South.

A better policy framework for preventing, managing, and helping people recover from crises is crucial to lifting long-term growth and livelihoods in Latin America and the Caribbean (LAC). The need for this policy framework has never been more urgent as the region faces the monumental task of recovery from the worldwide COVID-19 pandemic. Whether specific policy responses will deliver the expected growth dividends will depend on the underlying vision of how labor markets adjust to crises and the quality of the policies enacted. This report estimates how crises change labor market flows, assesses how these changes affect people, and discusses the key policy responses. The key findings are threefold. First, crises have significant impacts on employment dynamics and structure in Latin America. Different labor market dynamics hide behind similar reductions in labor demand. Crises increase unemployment. This is the principal margin of adjustment despite highly informal labor markets. Across the region, the biggest employment losses are in the formal sector, driven by a reduction in job-finding rates rather than higher job-loss rates. Adjustment through reduction in hours worked does not seem to be an important factor in most countries' formal or informal sectors. Crises do not just shape worker flows temporarily-they have significant after-crisis effects on the structure of employment that last for several years. These effects are such that good job opportunities are gradually shrinking. Whereas in some countries the whole economy shrinks, in others informality serves as a partial buffer. Second, crises leave scars. Some workers recover from displacement and other livelihood shocks, while others are permanently scarred. For lower-skilled workers, earnings losses are persistent. Workers with higher education suffer no impacts of the crisis on their wages and very short-lived impacts on their employment. The responses are similar across male and female workers and workers with high and low previous participation in the formal labor market. New entrants to the labor market during a crisis face a worse career start - one from which it is difficult to recover. Yet, crises also bring efficiency gains, as detailed in this report. This study finds that both the structure of product markets and the conditions in local labor markets matter for the severity of crisis-induced employment and earnings losses across localities and sectors. Workers in more protected sectors that enjoy rents are sheltered from adjustment, while workers in localities with more informality cope better. This suggests the need for integrated responses at the worker, sector, and locality levels. Third, this study considers how the region's policy frameworks can more effectively respond to crises-mitigating scarring, speeding adjustment, and promoting long-term growth. It proposes a three-pronged strategy, including (i) creating a more stable macroeconomic environment at the aggregate level to smooth the impacts of crises, including "automatic stabilizers" such as countercyclical, publicly-financed income support that is lacking in LAC; (ii) increasing the capacity of social protection and labor policies to provide income support as well prepare workers for change through reemployment assistance; and (iii) tackling structural issues, including addressing product market competition, contestability issues, and the spatial dimension behind poor labor market adjustment.