The president of the American Chamber of Commerce of Rio de Janeiro, Joel Korn, says that direct investments in Brazil are for the mid- and long-term and have to be analyzed as such.
His remarks were made as the consultancy firm, A. T. Kearney, announced that Brazil has fallen from 9th to 17th place on its list of best investment destinations.
Korn said Brazil had good and bad points. He said the lack of a specific agenda for reforms was negative, but that macroeconomic management was excellent.
He also pointed out that Brazil was higher on the list than two years ago. “We cannot use the list to direct policy. What has to be done is more deregulation, less red tape and lower costs for doing business,” he declared.
With regard to income distribution which was cited as a factor that scared off investments, Korn said it would improve with reforms, economic growth and a smaller government.
“The private sector cannot continue to pay for public debt,” he said.
Korn concluded by saying that things were on track. “I am confident. I think Brazil is on course and we have to just move ahead.”
Translator: Allen Bennett