73rd International Atlantic Economic Conference

March 28 - 31, 2012 | Istanbul, Turkey

Fostering development and fighting the crisis: The case of Brazilian Development Bank

Saturday, 31 March 2012: 4:45 PM
Ana Claudia Alem, Ph.D. , Brazilian Development Bank (BNDES), Rio de Janeiro, Brazil
Fostering development and fighting the crisis: the case of Brazilian Development Bank

The paper intends to show the importance of national development banks in promoting economic development and in lauching countercyclical policies in times of crisis. It will present the case of the Brazilian Development Bank (BNDES) to this purpose.

BNDES was created in 1952 to be a source of funding for long term investments in order to foster the development of the Brazilian economy.

Throughout its history, the Brazilian Development Bank has become the main financier of infrastructure and manufacturing sectors in Brazil. Over time, the institution has diversified its activities, also financing technological development, Brazilian foreign trade, small and medium enterprises and the internationalization of Brazilian firms.

BNDES has had a key countercyclical role in the international financial crisis of 2008/2009, ensuring the financing of investments in a time of credit crunch. This largely explains the greater capacity of the Brazilian economy to recover from the crisis compared to other countries.

 Through analysis of macroeconomic data, the paper will show the importance of BNDES in fostering the development and sustaining the growth of Brazilian economy.