Brazil cost ( ) refers to the increased operational costs associated with doing business in
Brazil
Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...
,
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
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...
;
* 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 the transmission of knowledge and skills and the development of character traits. Formal education occurs within a structured institutional framework, such as public schools, following a curriculum. Non-formal education als ...
levels and lack of qualified labour;
* Excessive layers of
bureaucracy
Bureaucracy ( ) is a system of organization where laws or regulatory authority are implemented by civil servants or non-elected officials (most of the time). Historically, a bureaucracy was a government administration managed by departments ...
(red tape), e.g., starting a company in Brazil takes at least 120 days;
* High levels of
corruption
Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted in a position of authority to acquire illicit benefits or abuse power for one's gain. Corruption may involve activities ...
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 (polity), state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definiti ...
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 Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...
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
*
Fakelaki
References
Finance in Brazil
Corruption in Brazil
{{Brazil-econ-stub
de:Brasilien#„Brasilienkosten“