• Categories
  • Archives

A Prize for Brazil, for Red Tape


A World Bank report suggests that firms in Brazil and similar poorer countries around the world face twice as much bureaucracy as in their wealthier counterparts.

The process of opening, running, or shutting a firm in a poor country is twice as difficult as in a rich country.


Brazil is the 141st most bureaucratic country in which to open a business, among the 145 countries surveyed. On the average, 152 days are required to open a firm here.


Only Haiti, Laos, Mozambique, and the Democratic Republic of the Congo are slower.

The study, entitled “Doing Business in 2005: Removing Obstacles to Growth” and based on research financed by the World Bank and the International Finance Corporation, also shows that reforms, such as the ones carried out last year by Turkey and France to reduce the time and cost of opening new businesses, produce big gains.


Following the reforms, these countries witnessed an 18% growth in the number of new firms registered.

In terms of ease of doing business, the principal economies are: New Zealand, the United States, Singapore, Hong Kong/China, Australia, Norway, the United Kingdom, Canada, Sweden, Japan, Switzerland, Denmark, and the Netherlands.

The study took into account five business incentive indicators: opening a new firm, hiring and firing employees, fulfilling contracts, obtaining loans, and shutting a firm.


Brazil’s Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, said last month that 5% of the Gross Domestic Product (GDP), or US$ 25 billion, annually, is wasted on bureaucracy.


According to Furlan, a World Bank report reveals that to start a company in Brazil, it is necessary to go through 27 federal, state, and municipal government organs.

Furlan participated in the Debureaucratize to Grow forum, sponsored by Exame magazine, in São Paulo, to make an assessment of bureaucracy in the country and its implications for private enterprise.

Simeon Djankov, an economist with the World Bank, gave at the time a preview of a report dealing specifically with small and medium-size companies in 145 countries in which Brazil appears nearly last on the list.

According to Djankov. the report indicates that, among the three levels of the Executive, the federal government has the best performance, while that of states and municipalities is worse.


According to the report, one of the things that stands out is the time it takes a small or micro firm to obtain a license to initiate its activities. The city of São Paulo receives the worst evaluation. There, 132 days are spent just to get a municipal license.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Bulgaria Can’t Get Enough of Brazil’s Presidential Candidate Rousseff

Brazil and Bulgaria are worlds apart. Bulgaria is a small eastern European nation with ...

Brazilian President Luiz Inácio Lula da Silva

Brazil’s Lula Starts Political Overhaul and Vows Not to Seek Third Term

Brazil's President Luiz Inácio Lula da Silva asked on Monday, April 23, for opposition ...

War: Brazil, I Beg to Differ

The ‘warrior race’ theory of North American genetics presupposes that we all love war. ...

Sugarcane Fields in Brazil Have Become Killing Fields

As countries look to reduce toxic emissions from cars, many are promoting a fuel ...

Reopening of China to Brazilian Chicken to Give Brazil a 10% Boost

Brazil's Agriculture minister, Reinhold Stephanes, said this Thursday, May 28, that the opening of ...

Jobs in Brazil: Exclusion Is the Norm

According to a new IBOPE study, 74 percent of the companies in Brazil have ...

Lula Now Has to Decide Whether This Italian is a Freedom Fighter or a Murder

The Italian prime minister Silvio Berlusconi arrives in Brasília on March 8. It is ...

When Is Tithe Time This Brazilian Church is Asking: Credit or Debit Card?

Starting Monday, October 6, parishioners from a Catholic church in Brazil will be able ...

67% of Brazilians Never Surfed the Internet, 54% Never Used a Computer

A study prepared by the Brazilian Internet Steering Committee released yesterday, November 8. shows ...

Brazil expands corn production

US Ethanol Production Leads Brazil to Double Corn Exports

Brazil should double foreign sales of corn in this crop to eight million tons. ...