![BNDES Building](https://upload.wikimedia.org/wikipedia/commons/a/ad/BNDES_Building.jpg)
The National Bank for Economic and Social Development ( pt, Banco Nacional de Desenvolvimento Econômico e Social, abbreviated: BNDES) is a
development bank
A development financial institution (DFI), also known as a development bank or development finance company (DFC), is a financial institution that provides risk capital for economic development projects on a non-commercial basis.
, total commitme ...
structured as a federal public company associated with the
Ministry of the Economy A ministry of economy, ministry of commerce, ministry of economic affairs or department of commerce is a part of the government in most countries that is responsible for matters related to the economy or economic policy.
List
Examples of such mini ...
of
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
. The stated goal is to provide long-term financing for endeavors that contribute to the country's development. BNDES is one of the largest development banks in the world (after the
Chinese Development Bank, which boasts assets of around RMB 7.52 trillion, or around $1.2 tn). Its non-performing loan ratio is also less favorable (2.2%) compared to the CDB's that stands below 1%.
Among the objectives of BNDES are the strengthening of the capital structure of private companies, the development of capital markets, the trading of machines and equipment and the financing of exports.
Since its establishment on June 20, 1952, BNDES has financed large-scale industrial and infrastructure endeavors and has played a significant role in the support of investments in agriculture, commerce, and the service industry, as well as in small- and medium-sized private businesses, even though its focus lies on larger firms.
The bank has supported social investments aimed at education and health, family agriculture, basic sanitation and mass transportation.
The bank offers financial support lines and programs to companies of any size and sector that have been set up in the country. The partnership with financial institutions with agencies established around the country facilitates the dissemination of credit, enabling greater access to BNDES's financial services.
BNDES has three integral subsidiaries: FINAME, BNDESPAR, and BNDES Limited. Together, the three companies comprise the BNDES System.
Criticism and controversies
BNDES has been accused of operating with larger firms in a corrupt manner
["BNDESPAR CONCENTRATES 89% OF ITS INVESTMENTS IN FIVE INDUSTRIES"](_blank)
/ref>["BNDES $7.5 billion bet on Friboi", ]O Estado de S. Paulo
''O Estado de S. Paulo'' (; ), also known as ''Estadão'' (; ), is a daily newspaper published in São Paulo, Brazil. It is the third largest newspaper in Brazil, and its format changed from broadsheet to berliner on October 17, 2021.
It has t ...
, February 15, 2010
www.estadao.com.br/noticias
and giving help to big corporations instead of small and medium-sized private businesses.
Operating with statutes of "ethical and environmental principles", in 2012, BNDES approved a 22.5 billion real loan for the construction of the Belo Monte Dam
The Belo Monte Dam (''formerly known as'' Kararaô) is a hydroelectric dam complex on the northern part of the Xingu River in the state of Pará, Brazil. After its completion, with the installation of its 18th turbine, in November 2019, the inst ...
, a project that displaced local communities. The plan was strongly criticized by environmental groups and indigenous populations.
In 2013 ~90% of BNDESPAR investments concentrates in five industries. In recent BNDES investments, lobby irregularities and conflict of interest
A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations i ...
arrives with JBS S.A.
JBS S.A. is a Brazilian company that is the largest meat processing company (by sales) in the world, producing factory processed beef, chicken and pork, and also selling by-products from the processing of these meats. It is headquartered in Sã ...
[ ISTOÉ about "BNDES feeding JBS": ] OGX/EBX Group
EBX Group is a conglomerate that comprises six companies listed in BOVESPA’s Novo Mercado, including: OGX, MMX, OSX, and CCX, founded and formerly controlled by Brazilian businessman Eike Batista, the chairman of the EBX Group, who was, in 2018 ...
, GPA (company)
Companhia Brasileira de Distribuição, doing business as GPA (formerly as Grupo Pão de Açúcar), is the biggest Brazilian company engaged in business retailing of food, general merchandise, electronic goods, home appliances and other products f ...
,Veja (magazine)
''Veja'' (, English: ''see'', ''look t it') is a Brazilian weekly news magazine published in São Paulo and distributed throughout the country by media conglomerate Grupo Abril. It is the leading weekly publication in the country and one of the m ...
abou
"new GPA", a business in which the BNDES should not be
/ref> and others.
The bank has been criticized for supporting the international expansion of some private firms.
Economists around the world recognize that Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
has its own development bank, a key financial organization, bigger than the World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
. As the Nobel Prize economist J. Stiglitz opinion, "''... the BNDES is a huge development bank (...) People don’t realize this, but Brazil has actually shown how a single country can create a very effective development bank (...) that actually promotes real development without all the conditionality and all the trappings around the old institutions''".
Despite the recognition of financial volume, effective infrastructure and organization, the bank is used by only a few industries. The concentration of financial volume in few and perhaps questionable industries contradicts the bank's development and diffusion goals. The concentration contrasts greatly with Brazilian's per capita income
Per capita income (PCI) or total income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.
Per capita i ...
and its many small and medium-sized enterprises
Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...
.
External links
*
Introduction to Banco Nacional de Desenvolvimento Econômico e Social in English
References
{{DEFAULTSORT:Bndes
Banks of Brazil
Companies based in Rio de Janeiro (city)
Banks established in 1952
1952 establishments in Brazil
Government-owned companies of Brazil
Development finance institutions
Economic development
Trade routes