Brazil cost ( pt, Custo Brasil ) refers to the increased operational costs associated with doing business in
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
,
making Brazilian goods and services more expensive compared to other countries.
There are several factors that contribute to the extra cost, including:
* High levels of public deficits;
* The economy divided into cartels;
* Inefficiency of public services;
* Maintenance of high real
interest rates;
* Exaggerated net interest spread of financial institutions (among the highest in the world);
* Excessive bureaucracy for importing and exporting, creating difficulties for foreign trade;
* Low
education
Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty ...
levels and lack of qualified labour;
* Excessive layers of
bureaucracy (red tape), e.g., starting a company in Brazil takes at least 120 days;
* High levels of
corruption within the public sector;
* High tax burden;
* Expensive labour costs;
* High social security costs;
* Complex and inefficient fiscal legislation;
* Economic instability;
* High electricity cost;
* Legal uncertainty;
* High interest rates;
* High
crime
In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definitions of", in Ca ...
rate, which adds
extra security costs;
* Underdeveloped infrastructure, including a deteriorated network for domestic shipping by rail, highway and coastal navigation*.
: In 2007
transport
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelin ...
costs consumed 13% of GDP, 5% more than in the United States. The high transport costs are exacerbated by the scattering of industry over Brazil's vast territory.
See also
*
Licence Raj
The Licence Raj or Permit Raj (''rāj'', meaning "rule" in Hindi) was the system of licences, regulations, and accompanying red tape, that hindered the set up and running of businesses in India between 1947 and 1990. Up to 80 government agenci ...
*
Fakelaki
''Fakelaki'' or ''fakellaki'' is the phonetic transliteration of the Greek word φακελάκι. It means "little envelope" but is also used in Greek popular culture as a jargon term referring to the bribery of public servants and private companie ...
References
Finance in Brazil
Corruption in Brazil
{{Brazil-econ-stub