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Brazil cost ( Portuguese: Custo Brasil [ˈkustu bɾɐˈziw]) refers to the increased operational costs associated with doing business in Brazil, [1] making Brazilian goods and services more expensive compared to other countries. [2] There are several factors that contribute to the extra cost, including:

  • High levels of public deficits; [3]
  • The economy divided into cartels; [4]
  • Inefficiency of public services; [5]
  • Maintenance of high real interest rates; [6]
  • Exaggerated net interest spread of financial institutions (among the highest in the world); [7]
  • Excessive bureaucracy for importing and exporting, creating difficulties for foreign trade; [6]
  • Low education levels and lack of qualified labour; [8]
  • Excessive layers of bureaucracy (red tape), e.g., starting a company in Brazil takes at least 120 days; [9] [10]
  • High levels of corruption within the public sector; [9]
  • High tax burden; [11]
  • Expensive labour costs; [12]
  • High social security costs; [13]
  • Complex and inefficient fiscal legislation; [6]
  • Economic instability; [9]
  • High electricity cost; [14] [6]
  • Legal uncertainty; [15]
  • High interest rates; [16] [6]
  • High crime rate, which adds extra security costs; [2]
  • Underdeveloped infrastructure, including a deteriorated network for domestic shipping by rail, highway and coastal navigation*. [1] [6]

In 2007 transport costs consumed 13% of GDP, 5% more than in the United States. [17] The high transport costs are exacerbated by the scattering of industry over Brazil's vast territory. [18]

See also

References

  1. ^ a b "From crisis to crisis in Brazil". The Economist. 24 July 2007. Retrieved 29 October 2011.
  2. ^ a b Parra-Bernal, Guillermo; Winter, Brian; Marfinati, Bruno (13 October 2011). "Epic bank heist exposes Brazil's security flaws". Reuters. Archived from the original on 28 October 2011. Retrieved 29 October 2011.
  3. ^ "Custo Portugal". Archived from the original on 2016-03-03. Retrieved 2018-07-29.
  4. ^ "Entenda o Custo Brasil". 5 September 2011.
  5. ^ "Página não encontrada – Revista Ideias".
  6. ^ a b c d e f "Why everything costs so much in Brazil". Super Interessante. 29 April 2013. Archived from the original on 2 May 2013. Retrieved 2 May 2013.
  7. ^ "Spread bancário custa R$ 261 bi aos brasileiros em 12 meses - Estadao.com.br". Archived from the original on 2009-12-28. Retrieved 2013-10-11.
  8. ^ "Mão de obra desqualificada é um dos maiores problemas dos empresários". Archived from the original on 2010-08-09. Retrieved 2013-10-11.
  9. ^ a b c "Moving belongings overseas: Shipping blues". The Economist. 30 June 2010. Retrieved 29 October 2011.
  10. ^ "Abrir empresa no Brasil demora 120 dias. ~ Colunas de Hércules - O Mundo do Empreendedorismo". Archived from the original on 2013-12-24. Retrieved 2013-12-23.
  11. ^ "A survey of Brazil: An unfinished revolution". The Economist. 25 March 1999. Retrieved 29 October 2011.
  12. ^ "UPDATE 1-Brazil throws $25 bln lifeline to sagging industry". Reuters. 2 August 2011. Archived from the original on 20 August 2011. Retrieved 29 October 2011.
  13. ^ http://www.fiesp.com.br/wp-content/uploads/2012/05/encargos-trabalhistas-e-impactos-no-brasil-e-no-mundo.pdf[ permanent dead link]
  14. ^ "Untangling the custo Brasil". The Economist. 20 August 2012.
  15. ^ "Brazilian Tax Reform".
  16. ^ "Converging economies: One-track bind". The Economist. 24 September 2011. Retrieved 29 October 2011.
  17. ^ "Land of promise". The Economist. 12 April 2007. Retrieved 29 October 2011.
  18. ^ "Brazil's industrial policy: Bungle in the jungle". The Economist. 17 February 2000. Retrieved 29 October 2011.

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