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For Portugal to achieve a sustainable growth and their job creation, you must define a growth strategy anchored in the variable with greater scope for progression and greater future benefits: the private investment. This can be done, essentially but not exclusively, in five ways:
– Entry of multinationals in the country
– Reinforcement of investment by companies already established in Portugal
– private Investment comes from savings, which has been channelled primarily into real estate
– By the capital markets, privatisations or acquisitions of companies
– Through of the Startups in technology or individual entrepreneurs who challenge the present
All these groups can generate gross fixed capital formation (GFCF) directly or indirectly. The most important thing is to realize that all wish to win the market, profitability, specialization, cost-competitive, with few barriers to entry, and stability and fiscal policy. The country should simplify life for all of them, the last being a “novelty” that should be the subject of greater consideration.
The Uk should be to study the numerous success stories existing in the attraction of investment and their economic and social development. Not to copy but to extract ideas, adapting them to our culture.
we Look at the 20 countries with the best human development index (HDI), index of competitiveness, greater life expectancy, greater economic freedom and less poverty index. Regardless of which indicator we choose, the countries are practically the same: the nordic Countries, Germany, United Kingdom, Canada, New Zealand, South Korea, Australia, Ireland, Switzerland, among others. If we had governments that thought in the country and not in their own interests, estudaríamos these countries. All of them made the structural reforms in a given moment in its modern history, with a defined strategy to think of their future development and positioning geostrategic world: bet on innovation, investment and exports, have granted wage increases to track increases in productivity (and not otherwise), have reduced the tax burden and attracted foreign private investment. Given space and supported the private sector: we all know multinationals from those countries. Even Chile, Israel, Colombia o r Botswana, to name the least developed countries liberalised their economies, getting recently good growth economic. Or if you’d prefer, let us study specific locations, and with large entrepreneurial activity: Silicon Valley, Hong Kong, Singapore, Bangalore, Berlin, tel Aviv.
Raise taxes on capital uninhibit the investment, be it business or personal. Lower investment translates into lower growth and fewer jobs created. Scaling this variable is the reverse. The political aspect here based is that it is the private sector doing it, it is not interesting to the majority of the parties.
In 2016, the year that we went down 8 places in the competitiveness report of the World Economic Forum (where they were identified as the biggest problems the high tax burden, bureaucracy and lack of stability of tax policies), we present a state budget for 2017 that provides for increases of various taxes with a direct impact on investment, in particular the worsening of the taxation of the local housing and present a few incentives, being a sign contrary to that which we would demonstrate.
The current economy is going through a huge transformation and is entering new terrain: The Industrial and the services for the technological and digital: there are new companies with processes that are more modern, simple and interactive between provider and consumer, that give the best experiences, replacing the previous business models.
Examples of Startups Portuguese as Farfetch, Seedrs, Talkdesk, UniPlaces, Feedzai, Aptoide and international organizations such as the Uber, Cabify, BlaBlaCar, Airbnb, among many others, are looking to Portugal to hire and operate due to the low cost and high quality of workmanship and due to our quality of life, cheaper, and with a great climate. He says also that we have the conditions to be the Silicon Valley or tel Aviv (the largest center of technology and Startups outside of the US) from Europe. We should choose, such as strategic positioning of the world, to become a technological and innovation European, absorbing the headquarters and offices of these new companies. We are in the fashion, we have a strategic position, infrastructure and skilled population. Just want to and decide to.
The absorption of these companies will not bring levels of investment, considerable in the short term, other than it would be to install a large industrial unit and foreign. But Portugal has to look further ahead: we must attract these companies in their phase of growth and consolidation, to provide them the best tools, support their internationalisation and to assign tax incentives to keep them here. In the short-term we will have a young and dynamic business network, the more employment, population, consumption and growth. In the long-term we will have benefits even better: a society evolved, on the cutting edge of technology and innovation. It is important to note a major advantage in betting on this “new” economy: penetrates into new markets more quickly than in the traditional economy, and moves from a global and digital, via mobile applications through sharing skills, thereby mitigating our eternal problem of size and scale of the market.
The WebSummit-which will take place in November comes at a good time, being a unique opportunity to demonstrate the potential of our country to entrepreneurs and investors. We must seize the opportunity and take this high speed train.
To do this, govern-if the new business rules of equal competition, avoiding excessive regulation, at the risk of killing business or they withdraw the benefits of the innovation.
Two examples of paradigmatic are the tourist apartments and the Uber. Say before you more that these new businesses are a balloon of oxygen for many and that already have established advantages mentioned previously: the Unemployed who were able to join the Uber, or tourism (Tuk-Tuks), and owners that were able to monetize apartments or rooms. The question is: Being fair to approximate the legislation to the lease and traditional taxis, you should simplify the legislation of the installed: to reduce costs and barriers to entry, bureaucracy, and taxes. The solution is to simplify the life of these and do not hamper the entry of new players. The consumer has already demonstrated that in the case of taxis, the old models are outdated. Would like us to update the market at the best level. We should become a country with a dynamic business where we all win: Entrepreneurs, employees, investors, consumers and taxpayers.
Many businesses will suffer major changes in the next 10 or 20 years. We will be at the forefront of this transformation, embracing this new world of a healthy and positive way. The future is technology and innovation!
we should limit to the Startups technology: All entrepreneurship should be nurtured.
The phrase of Ronald Reagan remains timeless: “The vision of a government on the economy could be summed up in a short sentence: ‘If it moves, taxe-a. If it continues moving, regulate it. And if it stops moving, subsidie-the” – Show that no longer have a reason!
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André Rebocho Vaz was born in Lisbon, 10 April 1985, is a consultant and graduated in business management, married and has 2 children.
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