• Categories
  • Archives

Brazil Drowning in Red Tape

Brazilian bureaucracy and legislative complexities make the country one of the worst places in the world to open and run a business. But the country is also one of the most transparent of the emerging nations, at least with regard to corporate financial data, which is regularly made public.

That pretty sums up the conclusions of a report by the
International Finance Corporation which is housed in the World Bank. The IFC
report is entitled “How to Make Brazil the Country of the Moment.”

The
IFC report compares 145 countries with regard to the business climate and tries
to explain why Brazil has not been growing recently.


“Brazil has abundant resources and macroeconomic stability. But
over the last five years per capita income growth has been less than 1
percent annually””such growth rates are in the same category as countries
racked by civil war. So, there have to be other reasons for such low growth,”
says Simeon Djankov, the author of the World Bank report.


“What happened to growth? Where did it go? Our report tries to
answer those questions,” he explains.

One problem cited is the fact that
it takes an average of 152 days to open a business in Brazil. To put that in
proper perspective, suffice it to say that only Haiti, Laos, Congo and
Mozambique are worse. In Neighboring Argentina, it takes only 32 days to open a
business. In England and the Scandinavian countries it can be done in 10 days.


The red tape in hiring and firing employees is also monumental. On a
scale of 0 to 100, the rigidity of Brazilian legislation came in at 72, just a
little better than eleven African nations (Argentina is also rigid, coming in at
51 in this category).

The World Bank report did find some bright spots
in Brazil. 


“There are some islands of excellence where things really do
work efficiently” says the report.


There was praise for the private credit rating agency, Serasa.
And for the stock market and corporate reporting, which were cited as among the
best in Latin America. The report also cited improved property deed registration
and the proposed new Bankruptcy Law.

Agência Brasil
Reporter: Mylena
Fiori
Translator: Allen Bennett







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Your email address will not be published.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

Iran Trade with Latin America Jumps Over 200%. Brazil Is Number 1 Partner

With Brazil as its first partner in the region Iran had a threefold increase ...

Brazil’s Foreign Ministry Workers Go on Strike. Up to Four Months Pay Delays

Career officials of the Brazilian Foreign Ministry, known as Itamaraty, in Brazil, have been ...

LETTERS

Shanty towns and poor neighborhoods were more affected by the dengue outbreak. But in ...

No Apologies Necessary

Brazil has its problems, but that’s not something that anyone has to wear as ...

Brazilian Indians Want Their Indigenous Identity Recognized

The Rio Grande do Norte Legislative Assembly held a public hearing June 15 to ...

Dollar Pouring into Brazil This Month at a Clip of Over US$ 5 Billion

The balance between entry and exit of foreign currency in trade and financial operations ...

Camila Finn

Camila, a Brazilian, Is Supermodel of the World

Camila Finn, a 13-year-old, 5’9″ brunette from Brazil, beat 43 other girls to win ...

US Study in Brazilian Amazon Disputes Belief that Grammar Has Universal Features

Two studies that appear in the August/October 2005 issue of Current Anthropology challenge established ...

120 Ministers of Environment in Brazil for Biodiversity Conference

Some 6,000 representatives from more than 190 countries will begin discussions on alternatives for ...

Secrecy Violation at Brazil’s Savings Bank Seems Like Inside Job

Brazil’s Caixa Econômica Federal (the state-run Mortgage and Savings Bank) reports that it has ...