A GREAT HIGH TECH FARM Maurício Munhoz What is modern in economics? Who is thinking about the new trends for this increasingly globalized world? The Chinese are certainly ahead. I had the opportunity to spend a period of my life at the economics faculty of Beijing University, and I knew the mechanisms of the so-called One Belt and One Road, which is a great design for the formation of an incredible economic bloc. The Chinese also saw, some time ago, the idea that currency is an instrument of account, of accounting itself. A concept that the brazilian economist Andre Lara Rezende described in a recent article. But Americans are not sleeping. The MIT and HARVARD have developed an Atlas of Economic Complexity that accompanies, through a BIG DATA, the movement of more than 5 thousand products in 126 countries, and thereby distinguish the degree of dynamism economies of the countries. You can view details of any country in any year. For example: in 1962, almost 49% of Brazilian exports were coffee. In 2017, five products accounted for almost 50% of exports: iron, soy, sugar, oil and meats. In the Legislative Assembly of Mato Groso, Brazil, we have developed the ICSM, the Sustainable Growth Index of the Municipalities, which accompanies the economic, social and environmental indicators of the municipalities of Mato Grosso. What Atlas and ICSM have in common is summarized in the text below, paraphrasing Paulo Gala: Agriculture can simply import the machinery and chemicals it needs, and in that case Mato Grosso will remain a large high tech farm that employs few people, primarily to run the tractor, the planter, and the combine. In addition, our primary exporting agriculture is very dependent on the commercial mechanism of the Chicago Stock Exchange, but the São Paulo Stock Exchange and Futures Exchange could be more integrated. The old custom of selling through Chicago is a dogma of the economy that deserves to be revised, as well as other ways and ways that the world productive sector has not yet learned to question. Maurício Munhoz is a sociologist and winner of the Celso Furtado Prize for Economy 2017/18


The Chinese multinational Cofco Agri, a company involved in the processing of agricultural products, has been fined for work similar to slavery. Thirty-one employees working in soybean management in Nova Maringá, 392 km from Cuiabá, Mato Grosso, Brazil, were rescued because they were without drinking water and housed in overcrowded and unhealthy places, among other irregularities, according to the Superintendence of Labor (SRTE-MT) ) And the Public Labor Ministry (MPT-MT).One of the workers rescued was still a victim of a work accident and is undergoing treatment. The New Maringá Cargo Workers' Union, responsible for recruiting the employees, should respond by grooming and reducing someone to the condition analogous to that of slave labor.In a statement, the multinational's press office said that it chose to hire employees with the participation of the union and that once it received the complaint about the situation of workers adopted the necessary adjustment measures before the supervision of the Ministry of Labor.Cofco Agri is part of Cofco Internacional, a group present in 29 countries and had a turnover of US $ 16.9 billion last year, according to the company's website.According to the Ministry of Labor, this was the largest operation to rescue workers in conditions analogous to slavery since 2009 when 78 people were rescued at a rural estate in Sapezal, 473 km far from the capital.Image of worker rescued in Chinese company Cofco Agri. (Photo: Inspection Team / SRTE / MT)


Maurício Munhoz is sociologistHow do the economic sectors contribute to the composition of the employment profile in Mato Grosso? I will use the ICSM (Index of sustainable growth of municipalities), in addition to the data from Brazilian Institute of Geography and Statistics and the Ministry of Labor, to set up a framework:Sector% Formal jobs *% GDP **% Wages paid ***Industry 18.39 17.6 25.54Agriculture 13.26 20.5 23.28Services and Trade 49.16 45.9 31.23Public Services 19.19 16.0 19.95* Signed or statutory certificate 2016 ** 2015 *** 2016The ICSM trends study created a quality index to interpret the optimization of the numbers above, making a mathematical relationship between formal jobs and GDP / wages paid. The industry reached the ICSM 1.2 while the Agriculture and Public Services were 1.1 and Commerce and Services with 0.8. That is, the industry is the sector that most drives the formal employment of Mato Grosso in relative terms.But as a sociologist, I could not go without trying to understand the strength of the informal economy, although there are no up-to-date official statistics on this or about unemployment in Mato Grosso.So, we will take the total population of Mato Grosso as 3, 4 million inhabitants in 2016. Of these, there were 800 thousand people with formal employment, the population of people under 18 years of age was approximately 1 million (can not sign wallet Of work) and retirees almost 400,000.Among the others are beneficiaries of social programs, such as the "Bolsa Família", which serves more than 490,000 people (including approximately 30% of those under 18, already counted above). Thus, workers in the informality, businessmen, students, those who are not looking for a job and the unemployed (technically unemployed are those who, not being working, had some recent attitude in search of employment).To better understand informality, we need to talk about the high tax burden. As Mato Grosso is a state with an agribusiness profile, there is always a good reflection on the contribution of the sector. In terms of revenues (business), agribusiness accounted for 51.9% of the state's total, but only 16% of the ICMS. Commerce, on the other hand, earned 34.7% of the total and collected 60.3% of ICMS.Of course, the burden ends up on someone's back. In Mato Grosso we live with an obsolete and absolutely punitive tax system, which, together with the weight of labor obligations, creates an environment where there is no incentive to increase investments, especially formal ones, starting with jobs.Certainly, there is no tendency of the state to industrialize, which we have seen is the main driving force of growth. On the contrary, the figures point to a deindustrialization of Mato Grosso. With high costs such as taxes, freight and energy, and especially because of the Kandir law that does not stimulate industrialization because it does not impose taxes on exports to the "in natura" products, we have seen industries closing and others moving to neighboring states, such as Goiás or countries such as Paraguay.And agriculture, as we have seen, is not a big employer. For more than 30 years Mato Grosso has been living with large commodities production, mainly soybeans, but with only 13.26% of the total, we can not say that the sector had a great growth in jobs.


ICSM, SUSTAINABLE GROWTH INDEX OF THE MUNICIPALITIESMato Grosso(Brazil), State Representative Janaina RivaI would like to present to you the ICSM, a sustainable growth index for municipalities, which we have created in my office based on several social, economic and environmental indicators of the 141 municipalities of Mato Grosso. It is a tool that can help in understanding the level of development and sustainable growth of the municipalities of Mato Grosso and that can also be useful for the elaboration and monitoring of public policies, such as the targeting of tax benefits, and parliamentary amendments. The ICSM, like the HDI, establishes a ranking of municipalities by development. But while the HDI is limited to diagnosing income, health and education, the ICSM also assesses the municipalities' environmental conditions and seeks to understand the roots of poverty by monitoring the municipal GDP profile and percentage of families benefiting from the “Bolsa Familia". ICSM outlines a profile of the municipal economy, presenting the main activities already in existence and those that are in the process of being better explored. Therefore, when a company wants to install a fish fridge, for example, the government can encourage it to settle in one of the municipalities that already has the potential to supply the raw material and, in order to Economic dynamism. In addition to encouraging investments for the needy communities, the ICSM can serve as a guide to the more prosperous municipalities, such as demonstrating that Cuiabá, although not a major agricultural producer, can be an important railway branch, housing processing Agribusiness, since it is geographically and strategically close to the producing regions, and counts on a respectable cultural and educational center, which today is an important capital for attracting companies and executives. Among the several conclusions that the ICSM can reach, is that the municipalities with less dynamic economic activities, generally where they prevail in livestock, end up being very dependent on the economy of the public sector, with municipalities as major employers, on the other hand, these municipalities Who have the highest percentages of families using the “Bolsa Família” program and have the lowest GDP per capita, so that their citizens almost always live with the lowest average salaries and the worst indicators of health and education. Another dimension of the well-being of society that ICSM introduced was environmental. Through the existence of forest areas in the municipalities but also by measuring the hot spots, the intention was to value the environmental capital of the municipalities since the forests, besides the economic potential, also add a subjective value, that is, if preserved it influences the Quality of life, including the promotion of biodiversity (hence the importance of forest economics and techniques such as sustainable management). However, the hot spots (which can indicate burnings and forest fire) represent the opposite. Example of tables that the study produces: The amount of municipalities by classification of the ICSM. And out of curiosity, a comparison of the GDP per capita of the municipalities of Mato Grosso with some countries. Among the municipalities with stagnant ICSM is Barão de Melgaço, whose per capita GDP compares with that of Iraq. On the other hand, municipalities such as the Cuiabá capital, considered with dynamic ICSM, have GDP per capita similar to that of Chile. Already in this other graph, we have a condensation of data on the economic activities of each municipality, where we see that if we add the forest area only from Colniza and Aripuanã in the north of the state, we will have an area larger than that of Switzerland. Of forests in MT exceeds the total area of ​​Italy), in addition to other economic activities such as the great mineral potential in Aripuanã. The study also reveals that soy is advancing in all regions in the state, living with family farming crops, such as rice that is not only produced in three municipalities of Mato Grosso. As the ICSM is annual, it is very interesting to compare the evolution of indicators such as deforestation, families with “Bolsa Família”, sectors: public, industry, services and agriculture in the municipalities' GDP, paid wage average, dairy basin, export profile, health, education , Among others. With this, I hope to expand the debate about the state and the way of production that we want, creating planning instruments and public policies that help to reduce social and regional inequalities in Mato Grosso.Janaina Riva, Mato Grosso (Brazil) State Representative