There has been a population switch going on in Brazil for last three decades. Forty years ago, Brazilians like to settle in rural areas, but that changed as new regulations and economic growth propelled Brazil into the elite emerging market category. Today, almost 75 percent of Brazil’s population live in a city or near a city, according to BMG Bank Vice-President Marcio Alaor
. That internal migration has presented several social challenges for cities of all sizes.
Marcio Alaor recently spoke about the Endeavor Index and how the internal migration is impacting businesses in his country. According to the Endeavor Index, there are 32 cities in Brazil that are prime candidates for foreign investment. Alaor thinks investors will return to those cities within the next 18 months. The five top cities on the Endeavor list are São Paulo, Campinas, Victory, Recife, and Florianopolis. Florianopolis is second on the list, and São Paulo takes the first spot since the city is the top capital investment city in the country.
Alaor told the group that his bank, the BMG Bank, recently moved its headquarters to São Paulo because of the amount of business opportunities in and around the city. Even though there are business opportunities in the cities on the Endeavor list, there are also challenges like an increase in favela communities and more crime. São Paulo deals with favela communities in several ways, but more pop up as the population increases. There are more than 10 million people living in São Paulo.
But the other four cities that represent the top five business cities are not as congested as São Paulo. Alaor said city governments have built a solid infrastructure to support foreign investment, and the location of those cities make it easier for investors to travel to the other major business cities. Alaor knows a lot about the cities that are breaking out of the recessionary mode by developing new technologies that are giving the economy a boost. BMG Bank and Marcio Alaor have played a role in the economic expansion by lending money to businesses when other banks turned them down. Alaor has single-handedly organized banking deals that have helped companies expand in spite of the recession and the brutal inflation.
Marcio is dedicated to improving Brazil’s position in the emerging market category, and if his track record is any indication of what he can do, he will help cities around the country follow the lead of the cities on the Endeavor list.
Like all countries that experience a devastating recession, Brazil is trying to dig out from under the negative press, and accent the positive aspects of the country. The Endeavor Index, created by the Endeavor organization, is helping entrepreneurs succeed, and so is Marcio Alaor.