Brazil cost

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., to start 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

• Licence Raj
• Fakelaki

References