1. Role of Governments Chapters: 61, 62, 63, 64, 65 and 66
Marcos Fava Neves

2. Exercise Role of Governments
Lets imagine that we were just elected to be a Governor of a poor place in a country. We need to atract international investments to bring development as soon as possible.
1 – When we atract international investments, what a transnational company (TNC) can bring to us?
2 – What can we do to regulate the international investments, building a institutional framework that takes the advantages and avoids the risks that comes with these investments
3 – At the end, how can we build a sequence of steps to have a plan to promote strategic developments?

3. What are the impacts that International Investments and Transnational Companies may cause in local communities?

4. Impact of TNCs on local community
Technical Assistance
Input Supply to Farmers
Management Assistance and Service Provisions
Resources of TNCs
Financial Investments and Expertise
Help Farmers’ Organizations
Provide Market Access
Neves, 2014

5. Impact of TNCs on local community - Resources
1 - Financial Investments
and Expertise
2 - Input Supply to Farmers
3 - Technical Assistance
Providing investments (capital);
Opening credit lines giving the needed guarantees for farmers;
Access to government official credit;
Knowledge of credit operations and bureaucracy;
Access to international credit;
Inward investments contribute to a good reputation for the region;
Foreign currency generation through the increase of exports;
Employment generation
Seeds;
Machinery;
Genetics;
Fertilizers and chemicals
“How to do package”;
On farm support;
Support on sustainability policies and sustainable practices;
Execution of research and development;
Support on standards (ISO, etc.)
Transferring of skills;
Supply of higher standard products within the internal market.

6. Impact of TNCs on local community - Resources
4 - Management Assistance
and Service Provisions
5 - Market Access
6 - Farmers’ Organizations
Assistance on economical/financial controls;
Training and farming management;
Transportation and storage;
Communication;
Certification;
Results/profit of the farm;
Support to demands on public investments in logistics and infrastructure.
Arranging sale contracts;
Providing access to marketing channels;
Access to niche markets – organic/fair trade/others;
Providing information on market trends, helping farmers decide
what to grow, and enabling reduction on price volatility
Establishment of local organizations;
Stimulating the arrangement of cooperatives;
Networks of local producers;
Incentives to cooperation.

7. What are the public policies needed to regulate these international investments?

8. Suggestions for public policies regarding foreign investments in agribusiness
Environmental Protection
Human Resources
Governance structure
Public Policies
Joint Actions for Farmers
Taxes
Policies on Market Access
Research and Development
Financing and Public Resources
Neves, 2014

9. Suggestions for public policies regarding foreign investments in agribusiness
8 Major Topics
How direct investment will take place and sorts of assets ownership (land, industry etc.)
Entrance conditions of resources (money flows);
What the promotion policies for FDI will be;
What the safeguards for the protection against risks (invasion, expropriation, fees, etc) will be;
What the stimulus package for investments (energy, logistics and other related to infrastructure) will be and how to remove obstacles to attract investments.
1 - Governance
Structure
2 - Environmental
Protection
3 - Human Resources
(people and labor)
Policies on water use;
Policies on agricultural practices (soil conservation, harvesting, among others);
International standards and certifications that will be required;
Policies on pollution control;
Sanitary policies;
Policies on conservation and rights over biodiversity.
Rural labor and wages;
Working conditions;
Benefits;
Community relations;
Child labor;
Corporate social responsibility;
Ethics and codes of conduct;
International labor.

10. 7 - Financing and Public Resources 8 - Policies on Market Access
Suggestions for public policies regarding foreign investments in agribusiness
8 Major Topics
Structure and tax policies;
Export and tax policies;
Purchase and compensation taxes;
Temporary tax incentives
4 - Tax Policies
5 - R&D
6 - Joint Actions for
Farmers and
Suppliers
7 - Financing and Public Resources
8 - Policies on Market Access
Development of local knowledge and incentives for local R&D;
Property rights and other protection forms, licensing contracts and royalties;
Linkages with local organizations/institutions as an incentive
Linkages to local organizations;
Incentives for coops/associations formation and sustainability;
Prepare farmers/co-ops/organizations for the relationships;
Sustainable supply contracts;
Dispute mechanisms and private arbitration
Access to public sources of financing;
Access to state banks and credit lines
Government purchasing policies and access to investors;
International agreements for market access;
General competition policies;
Food safety policies for market access.

12. Is it possible to have a sequence of steps to organize Government’s role?

13. A Framework for Governments in Attracting International Investments
Raise Strategic Areas and Business for Investments
International (TNC) Investments Strategic Analysis ( Positive x Negative)
Analysis of the Possible Resources of TNC
Design the institutional Framework
(policies/regulations)
Agreement
Monitoring
Post Contractual 3 2 1 6 5 4

14. Obrigado

15. E-mail: favaneves@gmail.com Facebook e LinkedIn Marcos Fava Neves
Gracias a los amigos!
Facebook e LinkedIn Marcos Fava Neves