[comp.society.futures] How Brazil Really *Could* Develop a Computer Industry

rburns%master@Sun.COM (Randy Burns) (11/22/88)

There has been much talk in how the Brazilian 
government has made it a national policy to 
develop a local computer industry.  This is move
that mimics their development of a local automobile
industry.  It is unfortunate that they are attempting
to develop their computer industry using much the
same policies of extreme and accross the board 
protectionism.

I suggest that Brazil develop its computer industry
using another means:National Site Licensing. Brazil
should license the rights to manufacture a 
representative range of computer products, and software
from the top vendors of these products. 

Currently, these computer vendors are getting very, very
little revenues from Brazil or any developing country.
If the Brazilian goverment purchased a national site 
license, this technology and software could be duplicated
in Brazil free of charge.  The inventors and software
vendors would still be paid. The Brazilian government
could pay for its subsidy through increased tax revenues
brought about through better overal productivity rather 
than through raising consumer prices of information 
products. 

Protection, could still have a place in this policy. Local 
companies could apply for protection from competive imports, 
after they had actually gone into productions, and only 
a level of tariffs that would guarentee that their actual
production would be purchased. Since the information 
products market is complex, imports of items for which 
there is no local source should be allowed.

This plan is very similar to the way that Japan actually 
developed. The Japanese government played a very active 
role in importing new technologies, but was prohibited by
early treaties from imposing tariffs. 

This plan would allow Brazil  to treat is software much like
large corporations do now. It would open the possibility of
distributing software updates through networks. It would also
open the possibility of a much higher degree of standardization
than exists in the American computer industry. 

This approach could actually enable Brazil to leap to the 
forefront of industrial nations. It could also develop a 
sophisticated computer market where none now exists. It is 
an opportunity which should not be passed up.