1. brazil
This special advertising feature was produced by Insight Publications, a division of Impact Media International Ltd. www.insight-publications.com.
PROMOTION // ECONOMIC DEVELOPMENT
I
n the lead-up to the Rio+20 conference on sustainable development, Brazil
is proposing that a number of social and economic goals be adopted for the
2015–2030 period as part of the country’s efforts to export its successful sus-
tainability programs to the rest of the world. The concept of sustainability has
gone hand in hand with Brazil’s recent growth: the country closed out 2011 by
overtaking the U.K. as the world’s sixth-largest economy. In 2011, while many
countries were still struggling to recover from the global crisis, Brazil recorded an
estimated 3% growth, maintained low inflation, and saw rising employment and
incomes among its citizens. President Dilma Rousseff has vowed that 2012 will be
even better, as Brazilians can expect more jobs, opportunities and growth for their
country.
The current snapshot of the country shows a far different picture than a Brazil that
once suffered from inflation rates of 50% a month. Rousseff is targeting a growth
rate of between 3.5% and 5% this year. It’s not just the government that’s feeling
bullish, however: The World Bank estimates that Brazil’s GDP will rank among the
top five in the world by 2020. Sustaining Brazil’s success rests on several factors,
including innovative companies that emerged stronger after surviving the country’s
economic downturn through the 1980s and 1990s. Four trends in particular indi-
cate that Brazil’s time on the world stage is not ending anytime soon.
Part IV of a series
Reprinted from the March 26, 2012 issue of Forbes magazine
MANAGINg sustainable success

2. PROMOTION 2 // Brazil
Healthy Demographics
A booming economy needs a lot of
young people to maintain it, and Brazil
has them in spades. More than 60% of
the country’s population of 195 million
people are under the age of 29, and their
purchasing power has risen along with
their incomes. More than 18 million have
recently entered the ranks of the middle
class, and the country’s ability to create
new consumers for products and ser-
vices supports long-term investment.
For example, Brazil now has around
1,000 cities with more than 150,000
inhabitants. These new and expand-
ing consumer markets have attracted
Brazilian companies such as developer
WTorre, which has enjoyed an annual
growth rate of 20% over the last several
years. At the same time, foreign inves-
tors such as Mitsubishi, Hyundai and
Suzuki have profited from the 3.5 million
cars that were sold in Brazil last year.
The fact that many of the companies
that survived the lean years are family
owned bodes well for their future, as they
will be passed along to a younger gen-
eration that is developing sophisticated
technologies and products and has
plans to grow abroad.
Infrastructure Investment
All eyes will be on Brazil in 2014 and
2016 as the country hosts first the World
Cup and then the Olympics. As it pre-
pares to welcome a massive influx of
new visitors, thanks to the games, Rio
de Janeiro expects to receive about $34
billion in private investments, generat-
ing more than 90,000 jobs. In addition to
aiding Brazil’s resurgence and increas-
ing its global profile, the events have
kick-started the kind of infrastructure
improvements the country has needed
in order to entice companies to base
operations there. For instance, the lack
of a public transportation network has
long been one of Rio’s biggest prob-
lems, with just one underground train
line for 6.1 million people. However,
Fetranspor is creating new bus routes
that will cut travel times by more than
75%, while a new metro line is being
built to connect Barra da Tijuca with the
rest of the city. The government is also
offering $2.5 billion in tax incentives to
companies for the expansion of telecom
infrastructure in some of the 12 cities
throughout the country that will be host-
ing World Cup events.
Government Policies
President Rousseff has a tough act to
follow, as her predecessor Luiz Inácio
Lula da Silva left office with 7.5% GDP
growth in 2010. But rather than being
daunted by having to follow in the
footsteps of perhaps
the most popular politi-
cian in Brazil, Rousseff
entered her second year
with popularity ratings
over 70%. Her govern-
ment has maintained and
built upon Lula’s success-
ful economic policies.
Among the government’s
biggest priorities is
decreasing the number
of poor Brazilians. More
than 20 million were lifted
out of poverty in the last decade, thanks
to policies aimed at building new homes
and improving marginalized areas and
slums, also known as favelas. Rousseff
is looking to increase those numbers
with the launch of a national campaign
titled, “Brasil: pais rico é pais sem
pobreza” (A rich country is a country
without poverty). The government also
recently announced a readjustment of
the income tax rate for individuals that
will benefit 25 million taxpayers, while
it has simplified the process for starting
a small business and continues offer-
ing tax breaks to attract investment.
Meanwhile, the resignation of seven
ministers due to corruption allegations
last year is a sign that Rousseff is seri-
ous about creating a government that
citizens and investors can trust.
Stock Market Growth
The Bovespa, Brazil’s stock mar-
ket, has come a long way since the
days when only a few companies—
like iron ore producer Vale and oil
giant Petrobras—were represented and
investor participation was minimal. The
index posted its biggest weekly gain in
a month in early January, when traders
moved $2.46 billion in stocks in one
day. In addition to making money, the
stock exchange is also making a differ-
ence in the country by recommending
that its listed companies publish regu-
lar sustainability reports. The move
comes ahead of the U.N. Conference
on Sustainable Development that will
be held this summer in Rio, where a
new all-electronic platform for Brazilian
equities will open in the fourth quarter
of 2012. The stock exchange, which will
be run by U.S.-based market operator
Direct Edge, is another sign of the city’s
emergence as a global financial hub,
while the competition with the Bovespa
is expected to drive innovation and
price improvement.
Such trends have helped spur a
renewed sense of self-esteem among
Brazilians. “Brazilians used to prefer
imported wine and food products over
national ones, but now they are discov-
ering that Brazilian gourmet products
can be both high quality and a good
value,” says Bazzar restaurant owner
Andre Paraiso. His establishment now
produces and sells gourmet Brazilian
products, while other domestic entre-
preneurs are going abroad in an effort
to expand the country’s presence and
brand. For example, sunglasses and
accessories brand Chilli Beans is grow-
ing its franchises faster in the U.S. due
to the cheaper rents, while TVRecord
has bought the exclusive television
rights for the 2012 and 2016 Olympic
Games and the Pan American games in
2015 and 2019. “We don’t just want to
be the best channel in Brazil; we want
to be the best channel in the world,”
says Alexandre Raposo, president of
TVRecord Network for Brazil.
At the same time, the company is con-
tributing to the sustainability campaign
in Brazil with its new headquarters in
Porto Maravilha in Rio, which is part of
an ongoing project to revitalize the port
area with new museums, restaurants,
cultural attractions, historic-building
improvements, new schools and homes
by 2015. In this special section we’ll
examine other ways in which sustain-
ability is being used to further Brazil’s
growth across a number of regions and
sectors. v
Construction proceeds on the new National Stadium
in Brasilia, which will seat more than 70,000 and is
expected to accommodate crowds for the 2014 World
Cup and the 2016 Summer Olympic Games.
©EraldoPeres/AP/Corbis

3. PROMOTION 3
What is Brazil, aside from the world’s
fifth-largest country by population—
home to more than 192 million people
and counting—and its sixth-largest
economy, according to the latest data
from the International Monetary Fund?
What really defines the country, sets it
apart and makes it different from every-
where else?
According to global branding consul-
tancy Interbrand, Brazil began to carve
out an identity of its own in the 1950s.
That was when 17-year-old Pelé helped
his team win the World Cup for the first
time, when Antônio Carlos Jobim and
João Gilberto played the first notes
of bossa nova, and when the first VW
Beetles rolled off the production line in
São Paulo.
Half a century later, Brazil’s brand
certainly includes the clichés of super-
models and soccer stars, beaches and
bikinis, samba and bossa nova, carnival,
capoeira and caipirinhas, but it increas-
ingly encompasses so much more.
For decades, Brazil concentrated
on producing commodities that were
transformed into consumer goods else-
where. Today, some of the nation’s
leading names are capturing the unique
combination of beauty, style and imagi-
nation that is inimitably Brazilian to
create world-class products the rest of
the world craves.
Drawing on the wealth of raw materi-
als the country has to offer—precious
metals, gemstones and tropical woods
—and bringing together the best in tra-
ditional skills and contemporary design,
homegrown businesses are export-
ing brands that are recognized and
respected globally. Take a look around
you, and you’re sure to find something
“Made in Brazil.”
A Vision of Fashion
“I love chillis and have a collection of
spices from around the world. I even eat
salad with them,” begins Caito Maia,
the CEO of Chilli Beans, Brazil’s hottest
sunglasses brand, as he explains how he
came up with its name. “Chillis are uni-
versal. Everyone knows what they are.”
Maia started out selling sunglasses
to his friends and routinely sold out of
his stock. He then set up a wholesale
sunglasses business, but went bust
when sales routinely outstripped supply.
Brazil: Making a name for itself
Over the last 50 years, Brazil has gone from commodity producer to
consumer-goods producer, building global brands.
luxury & Trendsetters:
In Amsterdam Sauer’s
boutiques, traditional val-
ues and innovation coexist
harmoniously, always with
the focus on the client’s
needs. Amsterdam Sauer has
been mining, manufacturing
and marketing its fine gem-
stone jewelry for more than 70
years in 25 stores across Brazil, and
internationally via the Internet: www.
amsterdamsauer.com.
“We reach a discerning clientele
that appreciates quality over just gen-
eral appearance,” says Daniel Sauer,
Amsterdam Sauer’s President. “This
is a more sophisticated consumer
looking for beauty, rarity, exclusivity
and good value. Our pieces per-
fectly express these assets, and are
renowned for their uniqueness, as
no two identical gemstones can be
found in nature.”
The brand’s history is tied to Rio
de Janeiro, from its first store on
Copacabana Beach to
the Amsterdam Sauer
Gemstone Museum, which
opened in Ipanema in 1989
and showcases a 3,000-piece
collection. And it remains a
family affair, with the third
generation taking up the
mantle of maintaining tradi-
tions while introducing innovation to
engage contemporary customers.
Amsterdam Sauer prides itself on
making clients feel comfortable, with
its multilingual staff even serving caip-
irinha cocktails and offering in-store
cigar lounges. “Jewels are products
for pleasure, passion and entertain-
ment,” Sauer insists. “People buy
jewelry when they are happy, or want
to be happy. So, we make our stores
as happy as possible. It’s almost like
being at a party.”
Amsterdam Sauer
Daniel Sauer of Amsterdam Sauer
shares some thoughts on heritage,
success and what buying jewels is
all about.
Q: How has being a family-owned
enterprise influenced your business?
Our history is the strongest asset of
the Amsterdam Sauer brand. It is our
responsibility to always maintain the
highest standards of products and
services while we search for constant
innovation and modernization, but never
forgetting where we came from.
Q: What is the secret of your success?
There is no simple formula for success.
Success can be defined as a combination
of a well-planned strategy with harmo-
nious and hard work, always bearing in
mind that the client is the reason for our
existence. We don’t work for us. We are
here for them!
Q: Last words on the subject?
Investing in fine gemstone jewelry is
not the same as investing in any other
area. Jewels are products for pleasure
and passion, not something you buy
to resell. For a man, the greatest plea-
sure in buying a jewel for a woman is to
watch her wearing it.
DellANNO–JeffersonBernardes

4. PROMOTION 4 // Brazil
It was only when he got involved with
the fledgling Brazilian fashion business
that he realized he needed a brand with
its own identity and a retail channel he
could control.
Chilli Beans was founded in 1997, and
today is Latin America’s leading sun-
glasses brand. With 400 points of sale
in Brazil, including vending machines—
and coming soon, trucks—and stores
in Angola, Portugal, Los Angeles and
Santa Monica, it is about to go global.
Maia expects to open 18 U.S. stores in
the next 18 months, both in California
and Las Vegas, and has plans for
another 50 in Colombia.
The brand already counts big-name
brands among its partners, having
just signed a tech deal with IBM and a
partnership with Mattel, with which it
produces co-branded Barbie®
glasses.
The company is now looking to ink new
agreements to help expand globally.
Maia’s goal is to become “part of the
portfolio of global brands in five years,”
something he thinks will require at least
a thousand points of sale.
Unlike other optical retailers, all of
Chilli Beans’ outlets are mono-brand,
meaning you won’t see anything other
than its own products in the store.
Alongside its adult and children’s lines
of sunglasses, however, you’ll also find
prescription frames, watches, headgear
and a few other surprises.
Every week, Chilli Beans launches
ten new sunglass designs that in most
stores, clients can try on virtually, using
a digital mirror that takes a picture of
them and then superimposes the style
of frame best suited to the shape of their
face on their reflection. As their heads
move from side to side, the sunglasses
move too, showing clients just how they
would look in the real world.
If they decide to buy, clients insert
a payment card into a slot beneath
the screen and, once payment is pro-
cessed, their sunglasses are delivered,
complete with carrying case. The next
step is social-media integration, and
Maia already has a database of 500,000
faces and e-mail addresses to keep his
customers, both previous and potential,
up to date with the latest models.
“You will receive your photo and the
next collection every week,” Maia says,
“so you can put the glasses on your
own face, just for fun. I’m not trying to
sell you anything; I’m just trying to ask if
you remember us.”
Chilli Beans is about to launch an
enhanced and expanded
e-commerce store, which can
also be accessed in its retail
outlets, that will sell bicycles
and other new products. There
are, of course, plenty of actual
models on display and very
enthusiastic vendors to talk to if
you’d prefer a second opinion.
“The secret of my busi-
ness is people,” Maia insists.
“Without people, nobody is
anybody. Everybody does
product, but if you do not
have a smile, nothing works.”
Forests Full of Furniture
For a nation named after a tree, it’s no
surprise that Brazil is famous for exotic
timber. Rosewood, tigerwood, king-
wood and tulipwood are among those
found in its forests. For decades, they
have been the materials of choice for
furniture designers worldwide.
In the 1950s and ’60s, the Scan­
dinavians used tropical veneers to add
luxury finishes to functional forms,
while Brazilian designers like Sergio
Rodrigues, Oscar Niemeyer and Percival
Lafer harnessed hardwoods to craft their
curvaceous, comfort-oriented styles.
Now, local brands with global ambi-
tions are making huge leaps forward in
manufacturing technology, while main-
taining the same standards of materials
and craftsmanship that saw Brazilian
furnishings find markets at home and
abroad.
Sierra Móveis is one homegrown furni-
ture maker that, while strengthening its
brand presence in Brazil, has its sights
set overseas. Focusing on 100% wood
products, Sierra has 100 stores nation-
wide under franchise partnerships, and
aims to open 40 more by 2013 for its
new Sierra Garden offshoot.
With three brands—Sierra, Sierra
Garden and Abraccio—6 million color
and fabric options, and 98% reforested
wood, Sierra Móveis appeals to those
who appreciate sustainable materi-
als and great design: “We’re looking
for premium clients,” confirms Andre
Tissot, Sierra Móveis’s president.
After exports foundered in 2008,
Sierra Móveis sidestepped external
channels and opened its own European
distribution center in Amsterdam. It reg-
ularly exhibits at the Maison & Objet fair
in Paris and maintains an office in Milan.
Expansion into the U.S., Tissot adds, is
“only a matter of time.”
In 2012, it will invest $30 million to
manufacture double-glazed windows
and doors, using Italian and German
systems, from the same timber it
employs to make furniture.
“We must invest in our raw materials,
because we have a product few offer:
wood,” Tissot continues. “This is where
we differentiate [and] what we have to
offer to the international market: a prod-
uct with its own design, timber from
reforestation and quality assurance.”
Luxury cabinetmaker Ornare offers
elegant storage solutions for every room
and also takes its environmental respon-
sibilities seriously. Forest Stewardship
Council (FSC)-certified since 2007, its
wood comes from sustainable sources
and offcuts are transformed into limited-
edition works by an NGO partner.
The company adapts its products
to suit market tastes, offering Brazilian
details to Miami-based clients, and
European styles at home. Moreover,
Ornare incorporates clever ideas like
Above: Luxury
cabinetmaker Ornare
offers elegant storage
solutions for every room.
Right: Murillo Schattan,
president, Ornare
Sierra Móveis incorporates great design and
sustainable materials into its products.

5. A BRAND
PHENOMENON
WITH BRAZILIAN
SPICE
"When you create a brand
that resonates with customers
they begin to look at it as a guide
to what is cool."
Excerpt from the chapter on Chilli Beans,on the book
Bold: How to Be Brave in Business andWin
by Shaun Smith & Andy Milligan.
Chilli Beans is the largest sunglasses
and accessories’ brand in South America.
Known as a young,provocative and creative
retail business,we keep innovating
in the way we involve our customers
by launching new collections every week
and enabling them to continually
reinvent themselves.
We are a franchise chain with over
400 stores in Brazil and also in the USA,
Portugal,Angola and Colombia.
We want more in Brazil and worldwide.
How about spicing it up?
www.chillibeans.com
C
M
Y
CM
MY
CY
CMY
K

6. PROMOTION 6 // Brazil
ventilation for humid climates to ensure
that its furniture doesn’t just look great,
but works well, too.
“We are always concerned with
design,” says Murillo Schattan, Ornare’s
president, “and look for designers to
interact with our product. We also have
a design studio and always try to launch
something new. We are now starting a
Home Collection concept. This is the
innovation for this year.”
Founded in 1986, Ornare will open
seven stores in 2012 and seven more in
2013. It works closely with Brazilian and
U.S. architects, taking them to Art Basel
Miami Beach and Fiera Milano to net-
work and stay on trend. Sales in Miami
are booming as Brazilians buy prop-
erty there, and Ornare is now looking
at opening in New York, Los Angeles,
Chicago and Washington, D.C.
Dell Anno, part of Unicasa Industria de
Móveis, is another high-end brand find-
ing success abroad, while domestically
Brazilians snap up its sophisticated fur-
niture products. Its kitchens, bathrooms,
bedrooms, closets, home theaters and
office environments are sold at 270 deal-
ers nationwide, and a commitment to
constant change keeps it ahead of the
crowd.
Outside Brazil, the company has
17 exclusive stores throughout Latin
America and has been retailing over-
seas for a decade. Exports account
for just 2% of production, but recent
orders, like furniture for 1,600 homes in
Dubai, should lead to a big jump in for-
eign sales.
As Franck Zietolie, Dell Anno’s direc-
tor and president, notes: “Everyone is
competitive. Whoever does not inno-
vate is at risk. We have at least two
new product releases per year, link our
brands with celebrities and use design-
ers to develop the collections.”
Dell Anno’s environmental approach
is just as forward thinking. All of its
wood furniture comes from 100% refor-
ested sources and arrives in recyclable
packaging. Even the wastewater in its
state-of-the-art factory is treated. “We
are completely green,” Zietolie confirms.
Above: Franck Zietolie,
director and president,
Dell Anno
Right: All Dell Anno’s wood
furniture comes from 100%
reforested sources and arrives
in recyclable packaging.
WE HAVE PLANTED AN IDEA:
BRING EVERYONE TOGETHER TO
CONTROL DEFORESTATION.
GRIFFO
The Green
Municipalities
Program has already reached its first
objective: gathering most of the
municipalities in a covenant against
deforestation. Almost 90 of the 143
municipalities have adhered to the
program so far. They have commited
to control deforestation and
stimulate the sustainable economy,
among other measures. In exchange,
they will be entitled to tax and credit
advantages. The goal is ambitious:
reducing the deforestation to less
than 35 km2 per year, until it reaches
zero. The idea has fallen on fertile
soil. Now all it requires is to be taken
care of!
GREEN
PROGRAM
MUNICIPALITIES
GOVERNMENT
©RicardoJaeger
©RobertoMajola

7. Brazilian Jewelry Brands Shine
With long histories in Brazil, family-
owned jewelry companies have built on
the past to give their brands worldwide
recognition.
One of the most renowned jewelry
companies in Brazil, and with over 47
stores worldwide, Amsterdam Sauer is
internationally recognized for its vertical
integration into the market. The process
starts with mining the gemstones and
proceeds to cutting and faceting them,
and finally to designing and creating
truly fine works of jewelry. The company
offers luxury service and aims to expand
through the quality of its product.
In 1945, when Hans Stern began mar-
keting Brazilian gemstones, there was
no market for them. Undeterred, the
young German émigré made it his life’s
work to see his adopted country’s semi-
precious stones recognized as equally
precious because of, rather than in spite
of, their vibrant colors.
Today, H. Stern—the surname means
“star” in German—is a red-carpet sta-
ple, worn and even co-designed by
actresses such as Catherine Deneuve
and Katie Holmes. Thanks to savvy mar-
keting, like worldwide warranties and
workshop tours; innovative ideas, such
as its signature Noble Gold and Stern
Star diamond cut; and celebrity caché,
it has become a global jewelry brand in
constant evolution, with 90 new models
every year.
“With each collection, we make our
life a bit more complicated,” admits
Roberto Stern, the founder’s eldest
son, who took the creative and corpo-
rate reins in the 1990s. “We are always
looking for new materials, textures and
colors, and thinking and working with
innovation.”
H. Stern has stores in 30 countries,
where its creativity sets it apart from
other luxury brands. The frontier for
future growth lies east, Roberto Stern
believes, and he is hoping that Asians will
find his jewels just as fascinating as the
rest of the world has for over 65 years. v
PROMOTION 7
2011H.Stern®|worldwidelocationsatwww.hstern.net
C O B B L E S TO N E S c o l l e c t i o n
Ad HStern Forbes USA.qxp 17/8/2011 11:16 Page 1
“We are always looking for
new materials, textures and
colors, and thinking and
working with innovation.”
Roberto Stern
President and Creative Director, H.Stern

8. PROMOTION 8 // Brazil
Rio de Janeiro is about to step into
the spotlight: Three global events will be
held in the city over the next four years.
To create the best impression possible,
the city council, public organizations,
private-sector partners and Cariocas,
as Rio’s residents are known, are doing
their best to ensure that Brazil’s second
city shines.
This June, hundreds of high-level
delegates will convene in the city for
Rio+20, the United Nations Conference
on Sustainable Development. In 2014,
Maracanã stadium will host the final of
the FIFA World Cup soccer tournament.
Two years later, the eyes of sporting
fans from around the world will turn to
Rio again for the 2016 Olympic Games.
With a population of 6.3 million, and 6
million more in its greater metropolitan
area, Rio de Janeiro is the sixth-largest
city in the Americas. While less affluent
per capita than São Paulo—Brazil’s big-
gest metropolis, which is home to almost
twice as many people—Rio is catching
up where it counts. Rio attracted $7.3
billion in FDI in 2010, which is seven
times more than 2009, and, crucially,
twice as much as São Paulo.
Brazil’s economy expanded 7.5% in
2010 before sliding back 3.5% in 2011
due to reduced Eurozone demand.
Recent growth and an influx of capital
have helped the Brazilian real to stretch
further, making Rio much more acces-
sible to rising local incomes.
The authorities are also concentrat-
ing on making Rio a safer place to live,
work and visit. Urban renewal projects
are bringing vital services to the hillside
favelas, home to as much as 20% of the
population. Clinics, nurseries, schools
and community policing are making the
streets safer, which means that those in
and near the shantytowns are enjoying
improved living standards and seeing
property values rise.
Companies such as Rio-based hair
treatment brand Yenzah are quick to rec-
ognize that a new class of consumers is
becoming upwardly mobile. Consumers
want better products to improve their
appearance and social position, say
Rodrigo Goecks and Marcelo Chrispim,
the company’s founders.
Learning valuable lessons
There have been surprising domino
effects from Brazil’s success in secur-
ing host-nation status for the 2014
FIFA World Cup and the 2016 Olympic
Games. For example, the Ministry of
Education (MEC) is working to ensure
that more Brazilians are granted access
to a university education. This will give
them the training needed to apply for
the thousands of new jobs both events
will create.
The MEC lists 137 higher-education
institutions in the Rio de Janeiro state,
of which 80 are in the city itself.
Many have designed courses and
signed agreements with institutional and
private-sector partners to provide the
kind of qualifications required. At the
same time, the state’s Secretary of
Tourism, Antonio Pedro Figueira de
Mello, announced last year that more
than $860,000 has been set aside to
subsidize additional classes.
At present, more than 6 million
Brazilians are enrolled in tertiary educa-
tion, but the government aims to have
10 million in college or studying for a
degree via distance learning by 2015.
Today, around 40% of those leaving
secondary school go on to university,
and the goal is to reach 50% by the end
of the decade.
One seat of learning that will be instru-
mental to achieving those goals is Gama
Filho University (UGF), Rio’s second-
largest university, with 3,000 graduates
a year earning bachelor’s, special-
ist, master’s and doctorate degrees.
With roots going back to 1939, UGF
has three campuses—Piedade, Barra-
Downtown, and Centro-Candelária—and
offers every­­thing from architecture to
nursing and from law to petroleum
engineering.
“The big challenge in Brazilian edu-
cation is to have sustainable and
long-lasting growth,” says Professor
Márcio André Mendes Costa, UGF’s
dean. “We educate fewer professionals
than we need, and not as efficiently or
as well as we would wish. The federal
government is trying to tackle these
problems, [and we are] following the
Ministry’s goals.”
Training people to produce a suffi-
cient quantity of high-quality workers
is something clearly dear to Mendes
RIO de Janeiro:
Giving Rio a facelift
Current public and private endeavors are transforming the city and
creating a new class of consumers.
“The big challenge in Brazilian
education is to have sustain-
able and long-lasting growth.”
Professor Márcio André Mendes Costa
Dean, Gama Filho University
The Maracanã stadium is being renovated ahead of the 2014 World Cup soccer tournament.
©FelipeDana/AP/Corbis

9. Untitled-1 1 8/29/11 5:42 PM

10. PROMOTION 10 // Brazil
Discover our
tourist destinations:
www.santur.sc.gov.br
Discover a paradise with a 560-kilometer coastline with perfect waves for
surfing and that each year becomes a nursery for right whales. It’s a place
with rich gastronomy, rivers for rafting, gorgeous waterfalls and breathtaking
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AF ASA 0025-11AN REV FORBES 174x124mm.pdf 1 13/01/12 16:22
Costa’s heart. For him, this
means closer cooperation with
businesses to adapt theoretical
education to the practical needs
of enterprises, and greater rein-
forcement of initiatives that help
get as many people as possible
into higher education.
These initiatives include pro-
grams like PROUNI scholarships
and FIES financing, which allow
those who cannot afford to do so
to study, while providing incen-
tives to choose courses that
benefit the country in the long
term. The government offers
subsidies for those signing up
for math and languages at pri-
vate universities like UGF, if they
agree to teach in the public sector
within two years after completing
their degree.
Likewise, UGF has developed
courses with corporate partners
to provide professional training.
Its mechanical engineering labo-
ratories were paid for via a deal
with Mitsubishi; its IT courses are
industry-supported; and it works
with Petrobras to offer optional
courses that impart expert train-
ing for petroleum exploration.
“The advantage [for students] is
a great chance of getting jobs,”
Mendes Costa says. “For the
company, they can take people
already trained, and they do not
need to invest any more. That is
why universities have to work with
private companies.”
Beyond working with compa-
nies, UGF now wants to generate
innovations and has created an
incubator to develop them. It
will choose 12 projects, mostly
in engineering and IT, and will
support research leading to new
technologies and patents.
UGF’s dean is also enthusi-
astic about working with other
institutions and recently signed a
partnership with the University of
East London to offer sports busi-
ness management and branding
courses. London’s 2012 Olympics
experience will help Rio prepare
professionals to host the games
in 2016, Mendes Costa says. v
Dean Mendes Costa speaks of his efforts to shape
UGF into a university with a unique brand:
Q. How do you attract top-notch profession-
als to the university staff?
A. We pay our professors 25% more than the
national average, combined with incentives,
good communication channels and a positive
atmosphere.
Q. How has the university evolved internally
in recent years?
A. We have been ahead of the trend to have busi-
ness professionals as well as academia shaping
our curriculum. Including people from civil soci-
ety is one of our major management differentials.
Q. UGF is a brand identified with entrepre-
neurship. How does that affect Brazilian
society?
A. When you offer a person an education, you
are also developing a better citizen: a citizen
who can adapt to a constantly changing market,
and learn how to reinvent himself inside of that
market.

11. According to data from SIMBA2, a
road-transport research collaboration
between the European Union and the
emerging markets of Brazil, Russia,
India, China and South Africa, traf-
fic accidents in Brazil kill more than
34,000 people every year. They also
leave about 300,000 injured, and
about a third of those suffer perma-
nent disabilities.
Pedestrians and bystanders are
disproportionately affected, being
the victims of more than 75% of
accidents that occur in some urban
areas. In 1974, federal legislation cre-
ated compulsory third-party liability
motor insurance, known as DPVAT,
to cover personal injury arising from
vehicle accidents. And, since 1997,
Seguradora Lider has been responsi-
ble for making certain that everybody’s
insurance is not only paid, but that it
also pays up.
More than 51 million vehicle own-
ers are obliged to pay premiums
to Seguradora Lider, amounting to
around 6.7 billion reals ($3.75 billion)
every year. Of this, 45% is paid to
the public health system and 5% to
DETRAN, the national department of
traffic. The remaining 50% is retained
by the insurance consortiums to settle
damages.
“We are an insurance company that
provides coverage for the entire popu-
lation of Brazil,” says Ricardo Xavier,
DPVAT’s director and president. “We
are trying to reach Brazilian society
to explain that payment of insurance
is an obligation for the owner of the
vehicle and also a right of citizens. Any
foreigner who suffers a car accident in
Brazil, caused by a Brazilian vehicle, is
entitled to use the insurance. Everyone
is insured.”
PROMOTION 11
Sports and Business
The business of sport represents
only 1% of Brazil’s GDP, while in
most countries it accounts for up
to 5%.
This means there is a huge mar-
ket that has yet to be tapped by
sports industry companies, says
Hélio Viana, a banking executive
who has 25 years of experience in
sports business.
In September, Viana is staging
World Sports and Business in Rio,
an international trade fair aimed at
promoting the opportunities open
to international companies with
the potential to benefit from the
sports sector in Brazil.
In addition to organizing the
World Sports and Business
fair, in which the Portuguese-
headquartered Banif Investment
Bank is a partner, Viana will pro-
vide advice, consultancy and
support for companies that have
the potential to benefit from major
forthcoming sporting events in
Brazil. He emphasizes the impor-
tance of having a local partner and
how this can help foreign compa-
nies succeed. w w w.sierra.com.br
will be exhibiting at
2012
Insurance For All
A private company takes responsibility
for protecting the rights of all those
involved in traffic incidents.
©JoséFusteRaga/Corbis

12. PROMOTION 12 // Brazil
Porto Maravilha
Porto Maravilha plans to return Rio’s port to its former glory, bringing busi-
nesses, residents and visitors back to where it all began. The Porto Maravilha
Urban Operation is Brazil’s biggest urban rehabilitation, covering 1,200 acres, and
is managed by CDURP (the Port Area Urban Development Company) under a
public-private partnership that aims to ensure positive results for all concerned.
“We invest in the area, improve the infrastructure and add value, which attracts
investors,” CDURP’s CEO Jorge Arraes explains. “By law, all money raised here,
stays here, and we run it. This provides security for the investor. For the city
council, it generates jobs and tax revenue and improves the town.”
For Arraes, Porto Maravilha compares favorably to Barcelona, which hosted
the 1992 Olympics. The first two phases will be complete by 2015, putting util-
ity networks and a new traffic system into place and adding 15,000 trees. The
Museum of Tomorrow and Art Museum of Rio will help transform the run-down
neighborhood into a cultural hub. Porto Maravilha will then be primed for inves-
tors to develop homes, hotels, offices and leisure facilities to serve a population
expected to reach 100,000 within a decade.
“We have opportunities in hospitality. Rio de Janeiro has a shortage of accom-
modations. The market is heating up, and it offers a clear opportunity and very
strong demand. The entertainment area will also be a big draw for entrepre-
neurs. In our minds, this is no longer just a port,” says Arraes.
Before and after: the proposed restoration work on the sheds of Gamboa
For the last 35 years, the aptly named
Óticas do Povo (People’s Optical) has
been providing the people of Brazil
with an unrivaled choice in eyewear.
The company has constantly invested
in technological change, but continues
to offer the same high-quality prod-
ucts and personal service at affordable
prices that have been its hallmark from
day one.
According to Manoel Pessanha, the
company’s founder, respecting three
core values is vital to his business’
success: quality, because caring for
clients’ visual health means Óticas
do Povo cannot be negligent; service,
because he was brought up to treat
everyone respectfully and cordially;
and fair prices, because his target
market is less affluent, and “we have
to sell our products without making
exaggerated profits.”
His formula clearly works. With a
market-leading network of 84 stores
serving Rio de Janeiro, Minas Gerais
and Espirito Santo, Óticas do Povo just
opened its first outlet in Florianópolis
in Santa Catarina, and plans to reopen
12 recently acquired stores by April.
It is now aiming to expand into Rio
Grande do Sul and Paraná, thanks
to a $33 million investment in 45 new
stores, and has its sights set on São
Paulo by 2015.
“Brazil’s population is currently about
195 million people, of which 130 million
people really need to wear glasses,”
Pessanha says. “Unfortunately, only 45
to 50 million people use them. Selling
glasses is a market that will continue
to grow, in line with the growth of our
economy.” v
An eye for expansion
A focus on making quality eyewear
accessible to all

13. PROMOTION 13
What cariocas are
watching
Brazil’s second-largest TV network has
scooped up rights to global sports events,
making it and Rio the center of attention.
Rede Record has been broadcasting
since 1953, and started out as Brazil’s
first choice for sports. Fittingly, hav-
ing purchased exclusive international
rights to the London 2012 and Rio 2016
Olympic Games, as well as the 2015
and 2019 Pan American Games, the
network will soon become the world’s
window onto the decade’s biggest
sporting events.
This culminates a reinvention that
began in the nineties with a content
overhaul, skewing toward popular
programming like telenovelas to suit
changing tastes, and continued through
2004 under the slogan “On the way
to leadership.” From 2006 to 2011, its
turnover in Rio de Janeiro grew 424%.
“We shook things up a bit,” admits
Thomas Naves, the network’s marketing
director. “We made our product visible...
then restructured human and material
resources. Next was changing public
perception. We made a major invest-
ment in Rio de Janeiro, showing the
market we are thinking big.”
Today, Rede Record is Brazil’s sec-
ond-largest network and is aiming for
the top. The success of its programming
stems from the fact that it broadcasts
the “real” Brazil, with local news and
shows recorded in the streets. Its $290
million, high-tech RecNov studio com-
plex, built with recycled materials and
powered by renewable energy, employs
2,500 people.
“We can really approach the Cariocas
when we talk about the city,” confirms
Carlos Geraldo Santana, the network’s
president. “When people speak well of
Rio, they are also speaking well of the
people. TV Record represents Rio and
its people.” v
Carlos Geraldo Santana and Thomas Naves
DivulgaçãoTVRecord

14. PROMOTION 14 // Brazil
Environment
Building a
Better Brazil
Rapid growth will not come at
the expense of natural wonders
and quality of life.
No matter who wins the 2014 World
Cup, host country Brazil already appears
likely to claim at least one title: Greenest
Games. While the country is racing to
build and renovate 12 stadiums for the
event, Jose Roberto Bernasconi, presi-
dent of the Association of Architecture
and Consulting Engineering Companies,
says that all building plans must
take environmental sustainability into
account. Toward that end, builders are
hoping to exceed even FIFA’s standards
when it comes to reducing carbon emis-
sions and using green materials such
as solar panels, recycled stadium seats
and rainwater sprinklers. For example,
6,000 solar panels will be used to light
the Governor Magalhães Pinto sta-
dium in Belo Horizonte, as well as 1,500
nearby homes. Similar solar projects will
be undertaken at stadiums and airports
ahead of the Olympics.
Such efforts demonstrate Brazil’s new
commitment to ensuring that its rapid
growth does not come at the expense
of its natural wonders and quality of life.
The country has been widely praised by
the international community for its envi-
ronmental sustainability efforts, with the
World Bank recently approving a $50
million loan for the development and
adoption of cutting-edge technologies
and practices in the mining and energy
sectors. The World Bank will then adapt
the resulting best practices for other
developing countries.
Brazil is also at the forefront of inno-
vative concepts such as a market for
trading environmental assets, the first
of its kind in Latin America. Based in
Rio, the market will trade assets such
as straight carbon credits. In addition to
healing the planet, such efforts are also
helping Brazil’s bottom line, especially in
the fast-growing biofuels sector.
Last year’s expiration of U.S. import
tariffs and tax credits now opens up
the American market to Brazilian sugar-
distilled ethanol, which is considered
more environmentally friendly since it
uses less land and fewer fossil fuels than
American corn ethanol. The expected
increase in demand for Brazilian ethanol
has already led state-run development
bank BNDES to earmark up to $22 bil-
lion to finance the expansion of the
sugar-cane sector, while growers are
looking at smarter, more-efficient tech-
niques such as crop rotation.
Meanwhile, Brazilian governments
are working to combat sanitation
issues. For example, São Paulo state
water utility Sabesp plans to invest
nearly $1 billion in sanitation projects in
2012, including expanding the potable
water supply service and developing
waste­water treatment and collection
coverage. Other smaller municipalities
are carrying out similar efforts this year,
such as a $10 million investment by
northeastern Ceará state utility Cagece.
Tailor-Made for the Brazilian
Truck Market
Last year, Man Latin America was rated
the top company for licensing trucks in
Brazil, the ninth-consecutive time it has
achieved that position. The company also
saw its highest revenues in 30 years last
December, and is planning to invest more
than $1 billion between 2012 and 2016
to expand its operations in Brazil. Such
funds also will go toward the continued
development of the hybrid Volkswagen
Constellation truck. The automaker and
Petrobras have also signed a partnership
to develop alternative-fuel projects.
Customers and business leaders voted
Man President and CEO Roberto Cortes
Automotive Leader of the Year in 2011,
just a year after Cortes was honored
as Person of the Year for 2010 by the
Association of Sales and Marketing of
Brazil and readers of Autodata. Perhaps
above all else, Brazilians appreciate
that Man customizes its products for its
customers, working locally and offer-
ing affordable prices. Its partnerships,
including one with Volkswagen, and
innovation in areas such as hybrids and
modular consortium management sys-
tems, have also helped make it popular
both at home and internationally.
According to Cortes, Man’s business
growth must be accompanied by social
growth. “We are growing at a rate of
15% per year. In 1999 we sold 12,000
units; this year we’ll sell 70,000. We are
coming from a market share of 15%, and
we are now above 30%. Yet you only
become perennial if you take care of
the social environment.” For this reason,
Man is investing in biodiesel, especially
as Brazil’s vast farmland gives it greater
opportunities to succeed in this area.
While Man has been Brazil’s leading
producer of trucks since its purchase
of the Volkswagen division, it is facing
competition from American, German
and Swedish companies entering the
Brazilian market. Cortes says he is
confident in Man’s continued ability to
better understand its customers’ needs
and offer the most service support. “Our
autonomy is greater since our engineer-
ing is located here in Brazil. We are able
to change a Volkswagen product the
way our customer wants faster than our
competitors. We are doing just what the
customer wants, and this ensures our
sustainability.”
As Man expands, it is seeking new
partners; an example is its recent collab-
oration with synthetic biology company
LS9 to test renewable diesel on Brazilian
vehicles. “Our business model is based
on production partnerships, business
development, product development
and new technologies,” Cortes says.
“We benefit from what others have, and
the synergy does the rest.” Cortes also
believes that Man has the expertise in
agriculture, biofuels and hybrid technol-
ogy that investors need, as well as the
kind of local connections and knowl-
edge that comes from years of domestic
success. “I think the biggest advantage
of being Brazilian is being familiar with
the country’s culture, the country’s
needs and the people’s behavior.”
Such advantages will come in handy,
as investor interest is unlikely to
decrease anytime soon. “The economy
is growing fast, so I think investors have
many opportunities to invest here,”
Cortes adds. “This is a place where
you have political and social stability,
a strong economic system and a solid
financial system. Brazil is the place of
the moment and will remain so.”
Continued on page 16
“Our business model is
based on production
partnerships, business
development, product
development and new
technologies.”
Roberto Cortes
President and CEO, Man

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leading truck and
bus company in
Latin America?
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is why our trucks can transport
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whether you are driving on a newly
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environment or across country, one
of our truck models will be right for
you. MAN Latin America is respon-
sible for VW Trucks and Busses in
Latin America. See what else MAN
can move at: www.man-la.com
Engineering the Future –
since 1758.
MAN Group

16. PROMOTION 16 // Brazil
Looking to the Countryside for
Agriculture Growth
As Brazil looks to increase sugar culti-
vation to meet expanding biofuel needs,
NovAmérica will likely help lead the
effort. It is the market leader in sugar,
with its agricultural branch cultivating
6.6 million tons of sugarcane a year,
while its service branch recently began
providing services for other groups,
including the cutting, transporting and
planting of sugarcane.
However, such work must comply with
the company’s environmental policy,
which requires that waste from sugar
manufacture be used as organic fertilizer,
and that water used in processing be
recycled and reused. The company’s
commitment has earned it a Certificate
of Environmental Compliance from the
São Paulo state government, while its
Future Project, created in 1987, passes
down these values through environmen-
tal-related activities for young people.
NovAmérica President Fábio de
Rezende Barbosa believes the biggest
opportunities for production are not in
the big cities but in the less-inhabited
areas in the countryside, which is where
his company is focusing. Barbosa is
planning to double the company’s size
within the next five years. He is seek-
ing out new business relationships,
similar to the partnership that resulted
in NovAmérica’s 2008 merger with sugar
and ethanol processor Cosan Group.
The two companies combined their
sugar operations at the Santos Port in
São Paulo, allowing them to ship 8.5 mil-
lion tons of commodities per year.
Nothing Wasted in Solutions
for Brazil’s Sanitation Needs
A growing economy that generates
more jobs and products also generates
more waste; but what many Brazilians
consider to be garbage, engineer-
ing firm Solvi sees as energy. The firm
provides sanitation and waste manage-
ment solutions in 160 cities throughout
Brazil and five municipalities in Peru,
with a mission to generate energy where
it is possible. Its investments in envi-
ronmental sustainability have included
adoption of new technologies, waste-
water treatment, water reuse and gas
emissions monitoring. Solvi has part-
nered with universities to develop new
clean technologies and raise awareness
of environmental issues.
Solvi is keenly aware of the impact it
can have on the people of Brazil as well.
For example, when the company closed
down a garbage dump in Bahia and
opened a new facility in its place, it hired
some 90 unemployed locals as recyclers.
According to Solvi President Carlos
Leal Villa, “Every businessman already
thinks financially; what they need to do is
also think environmentally and socially.
That is a big challenge for Brazil,” he
says. Villa believes that as the country
grows, so will the need for investment in
waste management. v
Continued from page 14
NovAmérica maintains environmentally conscious
sugarcane cultivation.

17. PROMOTION 17
Opportunities
Brazil’s New
Frontiers
Emerging markets offer fresh potential
for investment.
The north, northeast, southeast and
central regions of Brazil are proving to
be the favored new frontiers for foreign
investment this year. Both multinational
and national companies are realizing
that these emerging markets offer the
freshest potential in South America’s
largest economy.
In 2011, foreign direct investment into
Brazil reached a record $66.7 billion.
Until recently, 85% of this was focused
on the wealthy southern states of Rio
de Janeiro, Rio Grande do Sul and São
Paulo, but international investment ana-
lysts are deducing that there are other
equally attractive targets elsewhere
in Brazil, especially in states such as
Goiás, Pará, Santa Catarina and Rio
Grande do Norte.
As their economies grow, all four of
these states are actively improving their
infrastructure, especially their sewage
and sanitation systems; are expanding
their tourism sectors; and are receptive
to inward investment.
Goiás
Goiás is in the center of the country,
just 130 miles west of the national capi-
tal, Brasilia. The state is about the size
of Finland, with a slightly larger popula-
tion of 5.7 million.
Mitsubishi, Hyundai and Suzuki are
already established in Goiás, attract-
ing components industries to the
sector. Rekkof, the Dutch aeronautical
company, is setting up a major plant to
develop its new Fokker 100 airliner in
Anápolis, the state’s third-largest city.
Goiás is an open state with a dynamic
approach to economic expansion that
welcomes foreign as well as Brazilian
capital investment and public-private
partnerships, says Marconi Perillo, the
state governor, who is currently serving
his third term.
“We give about 60% tax exemption for
businesses to settle here in an attempt
to create more jobs and stimulate the
economy. With thousands of direct jobs
increasing the revenue of municipali-
ties and the state, we are starting a new
project to train 500,000 people.”
In addition to accounting for 45% of
Brazil’s total agricultural production,
Goiás is the primary source of food, ser-
vices and consumer goods for Brasilia’s
burgeoning population and is becoming
a new industrial and logistical hub for
the country through its increasing north-
south and east-west rail links.
An 1,800-mile railroad connecting the
country’s northern and southern regions
is due to be completed next year, and
more than 500 miles of it runs through
Goiás, making the state an ideal logisti-
cal center for countrywide trade.
The railroad will link Itaqui, Brazil’s
largest cargo port, which is located on
the northeast coast, to the state of Rio
Marconi Perillo, governor of Goiás, looks at an aerial
view of the Ribeirão João Leite dam project.
Photos:RodrigoCabral

18. PROMOTION 18 // Brazil
Grande do Sul on the country’s south-
ernmost tip. On its route through Goiás,
it will pass through Anápolis.
Lying midway between the state capi-
tal of Goiânia and the national capital
of Brasilia, Anápolis has the fastest-
developing industrial sector, with sev-
eral high-tech companies as well as
major food processing and pharmaceu-
tical plants.
The east-west railroad will link Bahia
on the east coast with Lucas do Rio
Verde in Mato Grosso state and con-
tinue on to the Pacific coast.
Governor Perillo has orchestrated a
huge investment in Goiás’ infrastructure
and logistic facilities. Gross domestic
product was $9.7 billion in 1999 and has
now reached $62.4 billion.
“Goiás’ economy is growing at more
than the national average, and last year it
grew at the same rate as China,” he says.
The governor believes strongly that
attracting foreign as well as Brazilian
capital is the way to continue grow-
ing the state’s economy. Management
purely by the state is an outmoded con-
cept, he says. “We want transparency,
quality services and results. Goiás is now
the ninth-most-important state in Brazil,
and we believe that in 20 years it will be
the fifth most important,” says Perillo.
With the support of the federal gov-
ernment, the Goiás administration is
investing $1.1 billion in water and sani-
tation projects. Together with federal
and private-sector partners, the state
also is completing a light rail transit sys-
tem worth $745 million and has plans
for the four major state highways involv-
ing investments of $1.4 billion.
Goiás also has a river port on its
southern border that provides a navi-
gable waterway to the South Atlantic.
“With good state and federal high-
ways as well as these rail and river
links, we have great logistics across the
state,” says Perillo. The Goiás adminis-
tration also is committed to reorganizing
power supplies and investing $687 mil-
lion in energy distribution, substations
and energy lines.”
Pará
In the north, Pará is Brazil’s largest
state and a gateway to the Amazon rain
forest. Known for the wonders of the
Amazon river, a local folk dance known
as carimbó and its indigenous culture,
Pará has untapped tourism potential.
The Agropalma Group, which pro-
duces and markets edible oils and
biodiesels, and the major energy com-
panies, Petrobras and Vale, are investing
in Pará. These companies see abundant
growth potential there for palm kernels
and soybeans that yield a very rich and
low-cost biodiesel fuel.
In addition to its plant life, the rain for-
est’s natural resources enable Pará to
export rubber; hardwoods like mahog-
any; and minerals such as iron ore and
bauxite, manganese, limestone, tin and
gold. These natural resources also are
used to generate hydroelectric power.
Governor of Pará Simão Jatene points
out that, in spite of the obvious high
value of Pará’s plentiful natural resources
and amazing biodiversity, the per capita
income of its 7 million-strong population
is only half the national average.
“It is unacceptable that a state that is
the second-biggest exporter in the coun-
try has a per capita income equivalent to
half of the country’s average,” he says.
Jatene adds that congressional dis-
cussions are under way to remedy this
imbalance by reforming the tax system.
Another project—Municípios Verdes,
or Green Municipalities—is aimed at
changing the way the state territory is
used. “We want to use the soil in a self-
sustaining way by reducing the area
used for livestock and stimulating good
agriculture.
“Above all, we want to avoid defor-
estation and preserve natural areas,
selecting some areas for intensive use
and others for eventual use,” says
Jatene. “Since the instigation of this
Administradora do Seguro DPVAT
DPVAT is the traffic insurance that protects all Brazilians who are victims of
accidents on the roads and streets of our country: for pedestrians, passengers
and drivers alike. The invaluable help DPVAT provides Brazilians is evidenced
by the more than 250 thousand claims paid last year alone. And there’s more:
DPVAT gives 45% of its revenue to help the Public Health System (SUS) cover
the costs of caring for traffic accident victims, and 5% to the National Traffic
Department (Denatran) to use in traffic education campaigns, giving millions
of Brazilians more peace of mind.
www.dpvatseguro.com.br DPVAT. THE TRAFFIC INSURANCE.
DPVAT INSURANCE PROTECTS
THE COUNTRY’S GREATEST ASSET:
190 MILLION BRAZILIANS.
DPVAT Insurance Administrator
Continued on page 20
The Municípios Verdes project in Pará has helped to
reduce deforestation in the region by 40%.
©PauloFridman/Corbis

19. PROMOTION 19
INvesting in the
seeds of growth
While the mood of optimism in Brazil
is attracting big investors, it can be dif-
ficult for smaller investors to access the
market. But for investors of all sizes who
want to make a difference as well as a
profit, Global Forestry Investments (GFI)
is well situated to assist them by sim-
plifying the process of investing in the
reliable and high-performing sustain-
able forestry sector.
The company was founded in 2007
by Andrew Skeene and Omari Bowers,
who decided to develop trees rather
than houses when they noticed that for-
estry investments had grown at a rate
of 20% per year over the last couple of
decades. After starting with a small plot
of land in Mato Grosso, the pair real-
ized that trees planted on overlooked
farmland could be an even more reliable
commodity than gold. Since then, GFI
has purchased land and planted trees in
emerging markets, giving investors the
opportunity to buy sections of the land.
When those trees are sold, investors
can see a return of up to 20% of their
investment.
Such a long-term investment can be
ideal for both large and small investors,
with GFI providing the local know-how
to handle problems like clearing titles
or dealing with bureaucracy. “We make
it simple for investors from the U.K. or
Europe,” Skeene and Bowers say. “It’s
pretty difficult to land in a country and
undertake the due diligence and know
what solicitors to go to. Intelligence is
the key, and we have very strong con-
nections within Brazil.” The company’s
offices in São Paulo, London and Dubai
are also advantageous for foreign inves-
tors. “For example, a lot of people from
the UAE are seeking to invest heavily in
Brazil now, so we can act as a bridge for
them,” they explain.
The company is contributing to refor-
estation efforts in Brazil by planting a
tree in a protected area for every tree an
investor purchases. It is also giving back
by providing funding for a school and
performing arts centers. Looking ahead,
the company is investing in eucalyp-
tus trees and working with universities
to create new medicines, in addition
to creating a new $300 million equity
fund. “The opportunities are endless in
regard to infrastructure and agriculture.
For instance, one of the areas we are
pushing is sugarcane, because there is
a huge demand for ethanol. There are a
lot of opportunities in agriculture, infra-
structure and forestry, and we want to
align ourselves with the right people to
take advantage of them.” v
GFI founders Andrew Skeene and Omari Bowers

20. PROMOTION 20 // Brazil
program, we have already reduced
deforestation by 40%.”
Santa Catarina
In the south of Brazil, Santa Catarina
is experiencing increasing interest
from investors and record growth of its
exports. Although it is the smallest state
in the southern region, it recorded $2.9
billion worth of sales abroad in the first
six months of last year—20% more than
in all of 2010.
Raimundo Colombo, the state gov-
ernor, is confident of similar figures
this year: “International companies are
betting on Santa Catarina’s potential,”
he says, “including the Spanish paper
and cardboard manufacturer Europac,
which is going to build a new factory
here, and GM, which is opening a new
engine industry plant.”
In addition, notes Colombo, Santa
Catarina is home to German automo-
tive supplier ZF; the international fish
processing company Gomes da Costa,
whose Santa Catarina plant is consid-
ered to be the largest fish capture and
sorting installation in Latin America; and
a Siemens medical factory. “We have
strong policies to attract new investors,”
Colombo explains. “We offer improved
infrastructure, business opportunities
and fiscal incentives such as reduced
taxes, and our businesspeople are very
dynamic, organized and globalized.”
On hand to assist new investors in
Santa Catarina is the First S.A. Group,
a company that has two decades’ worth
of experience in assisting foreign com-
panies with the procedures required for
importing and exporting.
Brazil is a complex country, especially
in regard to taxation, which is where
First S.A. Group can help, says com-
pany President Natanael de Souza.
“Brazilians will best understand the
Brazilian legislation and how a foreign
product can be brought into the country
at the best cost.”
First S.A. Group, which focuses on
importation, storage and distribution,
has its own warehouses, hires com-
panies to transport goods, and has
affiliates in São Paulo, Espirito Santo
and Tocantines.
“Currently we have customers from
all over the world,” says de Souza. “We
handle the importation of Italian boats,
luxury goods, helicopters and other
aircraft, with the majority of products
coming from the Far East.”
In addition to business, Santa Catarina
is famous for the unspoiled beaches and
lagoons along its 350-mile coastline as
well as its forested mountains, folklore
and food. It is now the country’s third-
most-popular tourist destination.
Santa Catarina also is a major industrial
and agricultural center, with the competi-
tive advantages of six air and sea ports
and a highly qualified labor force.
With its economy thriving, the state’s 6
million residents enjoy one of the high-
est standards of living in the country.
Rio Grande do Norte
Rio Grande do Norte, which is situated
in Brazil’s northeastern corner, is Brazil’s
most sought-after investment area, and
is experiencing capital growth of 20%
annually. Today, more than $19.5 billion is
being invested by the federal, state and
private sectors in oil, gas and wind energy;
mining; transportation; tourism; and sani-
tation infrastructure development.
A new airport, scheduled for comple-
tion next year, will have the largest cargo
terminal in Latin America and the capac-
ity to handle 40 million passengers a
year.
“Rio Grande do Norte is the best loca-
tion in Brazil to build a cargo airport,”
says State Governor Rosalba Ciarlini.
“We are just three hours from Africa, six
hours from Europe and seven from New
York. All flights going to Africa, Europe
and the U.S. pass through our airspace.”
The state is Brazil’s second-largest
petroleum producer, the largest pro-
ducer of salt and a leading exporter of
a wide array of fish species and agricul-
tural crops.
“Now, more than ever, the northeast
has all the potential for further develop-
ment and offers opportunities for foreign
investors,” says Ciarlini, who is a medi-
cal doctor. Her particular ambition is to
extend sewage and sanitation facilities
throughout the state.
“When I was mayor of Mossoró, my
home city, I increased sanitation ser-
vices from 8% to 60% of households,
and I’m determined to do this for all of
Rio Grande do Norte. My goal is at least
80%. This is work that often is not vis-
ible. But for me it has always been a
personal project, which I consider to be
fundamental.” v
Continued from page 18

22. PROMOTION 22 // Brazil
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PROM
OTION
Brazil, land of the
sam
ba, Sugar Loaf Mountain
and
Copacabana beach, is also distinguishing itself in the midst
of the worldwide financial crisis by the resilience of its eco-
nomic performance.
In the
face of the
global slowdown, the
Brazilian econ-
omy is predicted to grow this year by a relatively respectable
2.5%. Last year, the
South
American nation achieved
the
notable feat of being the least affected by the international
economic downturn.
Although business
activity in Brazil slowed gradually
through the last six months of 2008, its economy maintained
an overall growth rate estimated at 5.2%. This was a more
substantial performance than that of any of the world’s most
developed economies.
Significantly, domestic
demand, rather than exports, has
been
the
main driver
of Brazil’s growth. While highly
unequal income distribution continues to be a major prob-
lem
in this nation of almost 200 million people, it is the coun-
try’s burgeoning middle class that has fueled the economy’s
expansion.
The highest-earning
10% of the
population comprises
20 million people, and households with an annual dispos-
able income of more than US$7,500 increased
from 42.7%
to 57.1%
between 2005 and 2007.
For the first time in a generation, Brazilians have been ben-
efiting from stable economic growth, low
inflation rates and
improvem
ents in their social well-being.
BRAZIL
Con
tinued on next pag
e >>
Despite the global economic gloom, this Latin American giant
is enjoying growing
prosperity, tax cuts and increased productivity.
confidence is the keyword
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PROMOTION
When the name of the host city for the 2016 Summer Olympic
Games is announced in Copenhagen on October 2, there
is a good chance it will be Rio de Janeiro.
In its fifth bid to stage the world’s greatest sporting event, Brazil’s
cultural and commercial capital has made the final short list, along
with Chicago, Tokyo and Madrid.
If the Olympics do come to Rio in 2016, it will provide an enor-
mous boost for Brazil’s international prestige, and it will be the
first time that the Games have been held in South America.
There are good reasons to believe this may happen. Rio’s stag-
ing of the XV Pan American Games in 2007 was highly success-
ful and proved that the city has the facilities and know-how to
handle such a major international event.
Furthermore, Brazil is scheduled to host the FIFA World Cup
soccer competition in 2014, which in several previous instances
has acted as a trial run for hosting the Olympics. Mexico staged
the World Cup in 1968 and the Olympics in 1970; Germany did
the same in 1970 and 1974; and the U.S. followed suit in 1994
and 1996. Carlos Nuzman, the president of the Brazilian
Olympic Committee, provides an even more persuasive reason for
Rio’s selection: “Our budget is bigger than the others’, because
we have made clear what we need to do and we have the money,”
he says.
All three levels of government – federal, state and city – have
given guarantees that if Rio is declared the winner, work will begin
the next day with $700 million in immediate funding. They have
already provided $42 million to fund the bid to host the Games.
Much of the required infrastructure is already in place, and the
governments are spending $4 billion to build more. The Olympic
movement is presenting Rio – and Brazil – with a historic oppor-
tunity, says Nuzman.
“It can have a new city, a new country and a new continent,
where the Olympic Games have never been staged before. It will
also be ideal for reaching young people. Brazil has 65 million under
the age of 18, and the continent has 180 million. These young peo-
ple will be getting a very strong perspective for the future from
the Olympic Games.”
Winning the bid to host the Olympics would further underline
and strengthen Brazil’s increasing international stature. Nothing
illustrates Brazil’s progress better than the fact that the South
American nation is to become a contributor rather than a
receiver of IMF handouts.
Just five years ago, Brazil owed the IMF $33.9 billion. Yet today
the Brasilia government is lining up as a potential purchaser of
a bond designed to increase funds available to economically strug-
gling nations.
“Isn’t it chic that Brazil is lending money to the IMF?” com-
mented Brazilian president Luiz Inácio Lula da Silva with delight
when he heard the announcement. O
By Michael Knipe
Already set to host the FIFA World
Cup soccer contest in 2014, this
booming South American giant is
a favorite to stage a future
Olympic Games.
writing the next chapter
BRAZIL
Clockwisefromtopleft:VTQuatro–Comunicações;AntonioLacerda/epa/Corbis;AfloCo.Ltd./Alamy;
VTQuatro–Comunicações;©FranckCamhi/Alamy;©Fantravelstock/Alamy;YangLeiC/XinhuaPress/Corbis
Brazil2-09-alt_forbes 3/10/12 2:17 PM Page 1
PROMOTION
Brazil’s econom
y is surging upw
ard,
fueled by the vitality of its domestic market,
newly discovered oil resources and
major
infrastructure development as the country
prepares to host soccer’s 2014 World Cup
and the 2016 Olympic Games.
With econom
ic growth
predicted to be
above 5% this year, business opportunities
will benefit from the creativity and flair for
design and innovation that are ingrained in
the
Brazilian national character and
enhanced by the
country’s newfound
financial fitness, telecoms talent and entre-
preneurial energy.Brazil has a long-established status as a
cultural icon. The exuberance of its multi-
ethnic citizens; the magic of its music,
from samba to bossa nova; and the organ-
ized chaos and color of its Carnival — all
of these express Brazilian brilliance.
These days South America’s boldest and
most ebullient nation is making its mark on
the global econom
y.
Fashion weeks in São Paulo and Rio de
Janeiro
now
rank among
the world’s pre-
mier fashion events alongside those in New
York, Milan, London and Paris.
Foreign
prejudices against Brazil have dis-
appeared in the past three years, says
Mario Spaniol, the founder of Carmen
Steffens, which sells its handcrafted shoes,
handbags and
accessories in 23 foreign
countries. “These days we are proud to say
that we are a Brazilian brand, and we have
180
stores worldwide.”
The increasing global reach of the Carmen
Steffens brand and
the optimism Spaniol
expresses typify the current mood of Brazil’s
business community. Signs of growth in the
U.S. and
Chinese econom
ies are boosting
confidence in Brazil because they are the
South American country’s second-largest
export markets.With the nation preparing to host the
World Cup soccer competition in 2014 and
the Olympics in 2016, the government’s
Growth Acceleration Program has pumped
$250 billion into infrastructure projects.
Foreign direct investment is set to jump
a whopping 48%
this year to $38
billion,
according to the median forecast of about
100 economists in a central bank survey car-
ried
out in February.
The recent discovery of huge offshore oil
deposits near Rio de Janeiro will further pro-
mote future growth, transforming Brazil into
one of the world’s biggest oil producers.
As dom
estic demand
for steel rises,
Usiminas, Brazil’s largest producer of flat
steel, is boosting investm
ent 33%
this year
to ramp up output, and
may revive plans
to build a mill in the Minas Gerais state.
With all these developments in the
pipeline, utilization of industrial capacity has
been increasing every month. Further, merg-
ers and acquisitions are forecast to rise as
much as 40%
this year, as the buoyant con-
sumer market and the government’s steps to
foster hom
egrown conglomerates increase
the attractiveness of corporate combinations.
Both the government and
independentContinued on next page >>
creatively coming out ahead
BRAZIL
Brazil3x_forbes 3/10/12 2:20 PM
Page 1
brazilMaNaGiNG sustaiNable success
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PrOMOtiON // ecONOMic DeVelOPMeNt
I
n the lead-up to the Rio+20 conference on sustainable development,
Brazil is proposing that a number of social and economic goals be
adopted for the 2015–2030 period as part of the country’s efforts
to export its successful sustainability programs to the rest of the
world. The concept of sustainability has gone hand in hand with Brazil’s
recent growth: the country closed out 2011 by overtaking the U.K. as the
world’s sixth-largest economy. In 2011, while many countries were still
struggling to recover from the global crisis, Brazil recorded an estimated
3% growth, maintained low inflation, and saw rising employment and
incomes among its citizens. President Dilma Rousseff has vowed that
2012 will be even better, as Brazilians can expect more jobs, opportuni-
ties and growth for their country.
The current snapshot of the country shows a far different picture than
a Brazil that once suffered from inflation rates of 50% a month. Rousseff
is targeting a growth rate of between 3.5% and 5% this year. It’s not
just the government that’s feeling bullish, however: The World Bank esti-
mates that Brazil’s GDP will rank among the top five in the world by 2020.
Sustaining Brazil’s success rests on several factors, including innovative
companies that emerged stronger after surviving the country’s economic
downturn through the 1980s and 1990s. Four trends in particular indi-
cate that Brazil’s time on the world stage is not ending anytime soon.
Part IV of a serIes
For more information about the fifth report
in this series on Brazil, please contact:
Gabriel Gutierrez — G.Gutierrez@impact-media.com