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William Ferreira de Paula
William Ferreira de Paula

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The Brazilian National Policy of Informatics Or How-To Not Create A Tech Industry In Your Country

In the year of 1984 the Brazilian Government introduced a new panacea of protectionist politics called "National Policy of Informatics" It prevented international companies sell and commercializing computer products in Brazil to guarantee that only the local industry had that right.

Well, the wet dream of protectionists ends up being a nightmare for the most interested and directly affected, "the consumers".

Products at most parts of that era were copies or reverse engineering of products sold in Japan, USA, and Europe, and they were sold at prices overinflated to 3 times and obsolete by 2 or 3 generations.

Some companies did some R&D but they were minimal, the great idea here was rent-seeking and not the creation of an industry, and Brazil is known for not having a strong venture capitalist culture, with some of the politicians saying that don't want adventures in the market, how if the market was something with all guaranties of the world.

This kind of blurred vision of the market is characteristic of people who don't understand how to manage a business, not even a grocery store, a distance from reality that has affected the country in many ways, and not just in the tech market.

The legislation ended at the beginning of the 1990s because the national market was too far behind the international market, even though the current tax policies continued the inflation of product prices making the computers a product to few and hurting the creation of a real market.

And we are seeing something stupid like this again with the current AI Regulation copying things done by EU that are not the best practices in the market, that will ensure that again we will not have a top-of-market industry, the pains of being government by many commodities-sellers-minded politicians.

So this is the recipe for failure, a tax asylum, the search for rent without understanding what is needed for that, and poorly minded politicians, was said that insanity is doing the same thing over and over again and expecting different results, politics appear to be the same in this country.

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