In late October following a significant victory for Jair Bolsonaro in ’s ial elections, the stock market for ’s largest country shot up. Financial markets reacted favorably to the news because Bolsonaro, a free-market proponent, promises to deliver broad economic reforms, fight corruption and work to reshape through a pro-business agenda. While some have dubbed him as a far-right “Trump of the Tropics” against a backdrop of many ians feeling that government has failed them, the business outlook is extremely positive.

When -elect Bolsonaro appointed Santander Roberto Campos as new of ’s central in mid-November, ’s stock market cheered again with ’s Bovespa stocks surging as much as 2.65 percent on the day news was announced. According to Reuters, “analysts said Bolsonaro, a former army captain and lawmaker who has admitted to having scant knowledge of economics, was assembling an experienced economic team to implement his plans to slash government spending, simplify ’s complex tax system and sell off state-run companies.”

Admittedly, there are some challenges as well. Most notably, pension-system reform tops the list of priorities to get on the right track quickly. A costly pension system is increasing the country’s debt and contributed to losing its investment-grade credit rating in 2015. According to the new administration, ’s domestic product could grow by 3.5 percent during 2019 if approves pension reform soon. The other issue that’s cropped up to tarnish the glow of Bolsonaro coming into power are suspect payments made to his son that are being examined by COAF, the financial crimes unit.

While the jury is still out on Bolsonaro’s impact on ian society at large after being portrayed as the ian Trump by the opposition party, he’s come across as less authoritarian during his first days in office. Since the election, his tone is calmer and he’s repeatedly said that he plans to govern for all ians, not just those who voted for him. In his first speech as , he invited his wife to speak first which has never happened before.

Still, according to The New York Times, “some ians remain deeply divided on the new , a former army captain who has hailed the country’s military dictators and made disparaging remarks about women and minority groups.”

Others have expressed concern about his environment impact with the “an assault on environmental and Amazon protections” through an order within hours of taking office earlier this week. However, some major press outlets have been more upbeat: “With his mix of market-friendly economic policies and social conservativism at home, Mr. Bolsonaro plans to align more closely with developed nations and particularly the U.S.,” according to the Wall Street Journal this week.

Based on his publicly stated plans, here’s why Bolsonaro will be good for business and how his administration will help build an even stronger entrepreneurial ecosystem in :

Bolsonaro’s Ministerial Reform

Temer leaves office with 29 government ministries. Bolsonaro plans to reduce the number of ministries to 22, which will reduce spending and make the government smaller and run more efficiently. We expect to see more modern technology implemented to eliminate bureaucratic red tape and government inefficiencies.

Importantly, this will open up more partnerships and contracting of tech startups’ solutions. Government contacts for new technology will be used across nearly all the ministries including mobility, transportation, health, , management and legal administration – which will have a positive financial impact especially for the rich and booming SaaS market players in .

Government Company Privatization

Of ’s 418 government-controlled companies, there are 138 of them on the federal level that could be privatized. In comparison to ’s 418, has 25 government-controlled companies, the U.S. has 12, and each have eight, and has four. Together, -owned companies employ more than 800,000 people today, including about 500,000 federal employees. Some of the largest ones include petroleum company Petrobras, electric utilities company EletrobrasBanco do Brasil, ’s largest in terms of its assets, and Caixa Economica Federal, the largest 100 percent government-owned financial institution in .

The process of privatizing companies is known to be cumbersome and inefficient, and the transformation from political appointments to professional management will surge the need for better management tools, especially for enterprise SaaS solutions.

STEAM Education to Boost ’s Tech Talent

Based on Bolsonaro’s original plan to move the oversight of university and post-graduate education from the Education Ministry to the Science and Technology Ministry, it’s clear the new ial administration is favoring more STEAM courses that are focused on Science, Technology, Engineering, the Arts and Mathematics.

Previous administrations threw further support behind humanities-focused education programs. Similar STEAM-focused higher education systems from countries such as and have helped to generate a bigger pipeline of qualified engineers and technical talent badly needed by ian startups and larger companies doing business in the country. The additional tech talent boost in the country will help better compete on the global stage.

The Boys’ “Super” Ministry

The merger of the with the Treasury, Planning and Industry and Foreign Trade and Services ministries will create a super ministry to be run by Dr. Paulo Guedes and his team of Chicago Boys. Trained at the Department of Economics in the University of under Milton Friedman and Arnold Harberger, the Boys are a group of prominent an economists who are credited with transforming into ’s best performing economies and one of the world’s most business-friendly jurisdictions. Joaquim Levi, the recently appointed of BNDES (ian Development ), is also a Boy and a strong believer in and startups.

Previously, Guedes was a in Bozano Investimentos, a pioneering private equity firm, before accepting the invitation to take the helm of the world’s eighth-largest economy in . To have a team of economists who deeply understand the importance of rapid-growth companies is good news for ’s entrepreneurial ecosystem. This group of 30,000 startup companies are responsible for 50 percent of the job openings in and they’re growing far faster than the country’s GDP.

Bolsonaro’s Pro-Business Cabinet Appointments

Bolsonaro has appointed a majority of technical experts to be part of his new cabinet. Eight of them have strong technology backgrounds, and this deeper knowledge of the tech sector will better inform decisions and open the way to more funding for innovation.

One of those appointments, Sergio Moro, is the federal judge for the anti-corruption initiative knows as “Operation Car Wash.” With Moro’s nomination to of the Justice Department and his anticipated fight against corruption could generate economic growth and help reduce unemployment in the country. Bolsonaro’s cabinet is also expected to simplify the crazy and overwhelming tax system. More than 40 different taxes could be whittled down to a dozen, making it easier for entrepreneurs to launch new companies.

In general terms, and have long suffered from deep inefficiencies. With Bolsonaro’s administration, there’s new promise that there will be an increase in long-term infrastructure investments, reforms to reduce corruption and bureaucratic red tape, and enthusiasm and support for startup investments in entrepreneurs who will lead the country’s fastest-growing companies and make significant technology advancements to “lift all boats.”

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