Brazil: Paraná State becomes the 4th largest economy in the country
By Guilherme Marques Moura*
Among the factors that allow the improvement in the standard of living of a locality is productivity. The more productive the workers, the higher the wages and therefore the more they can consume. Increased productivity is closely linked to competitiveness.
A competitive State better manages its productive resources, seeking both the generation of well-being and public services and local economic development, generating more jobs and income for the population.
In Brazil, the Center for Public Leadership (CLP) annually classifies Brazilian municipalities and States according to competitiveness.
The Competitiveness Ranking produced by the CLP aims to support Brazilian public leaders in decision-making, with a focus on improving the management of their States. There are 86 indicators adopted, with thematic axes such as human capital, infrastructure, innovation, sustainability, among others.
São Paulo, which is the most populous State and which generates the most wealth, is also the Federation unit that leads the Competitiveness Ranking of the States.
More specifically, Paraná, now the 4th richest State in the country, rose one position in the competitiveness ranking, now occupying the 3rd place.
The great challenge of the future will be to reconcile the improvement of the well-being of the population in the face of demographic changes and to promote sustainable development.
Among the potentials of Paraná, the indicator points to environmental sustainability, the efficiency of public administration and its innovative capacity.
Traditionally, the state is referenced as an example of sustainable development in the country, such that 10% of the 500 most sustainable municipalities in Brazil are in Paraná, according to the Sustainable Development Index of Cities (IDSC).
But the ranking indicates that there is still room for improvement, mainly in the recovery of degraded areas, efficiency of the Judiciary and the granting of master’s and doctoral scholarships.
Among the main challenges for state managers, the annual report highlights the cost of labor, potential workforce growth and budget planning. The first two indicators raise concerns about the future of the labor market.
People from Paraná have the 6th highest average income from work according to the IBGE, reflecting the higher productivity and average qualification of its inhabitants.
However, the drop in the birth rate and the aging of the population may prove to be restrictions on economic growth in the future. Despite the concern with regard to budget planning, Paraná occupies a median position in terms of solvency and fiscal dependence.
Among the cities, Barueri (SP) leads the ranking, followed by Florianópolis (SC) and São Caetano do Sul (SP). In line with Paraná, Curitiba stands out as the 6th best positioned in the competitiveness ranking, the 3rd when considering the South Region.
Known as one of the most innovative capitals in the country, the city stands out for its economic complexity and the application of resources for research and scientific development.
The ranking also highlights the functioning of the public machine and access to basic sanitation as potential for the municipality. The city leads in three aspects of sanitation: water supply coverage, domestic waste collection and garbage disposal.
Regarding the points of improvement, the main challenge lies with the environment. Among the 415 municipalities analyzed, Curitiba occupies only the 346th position in relation to natural forest cover and 354th in the recovery of degraded areas.
Despite having the 15th highest average income from formal work, the capital of Paraná occupies an intermediate position in terms of income growth (186th) and job creation (315th) of this type of work. In contrast, the city stands out when analyzing the competitiveness of its human capital, occupying the 15th position, mainly reflecting the qualification of its workers (12th) and the average income of workers (15th).
In general terms, the results of the Competitiveness Ranking of Municipalities highlight the leading role of Paraná and its capital. Despite the points for improvement, workers both in the State and in Curitiba have significantly higher incomes and qualifications than those in other municipalities in the country.
The practical implication of this protagonism is the possibility of a better quality of life for its inhabitants. The great challenge of the future will be to reconcile the improvement of the well-being of the population in the face of demographic changes and to promote sustainable development.
*Guilherme Marques Moura, PhD in Economic Development, is a professor at the Business School of Universidade Positivo (UP)
With information from Gazeta do Povo
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