Brazil cost explained

Brazil cost (pt|Custo Brasil pronounced as /pt-BR/) 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;
• 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;
• Economic instability;^[9]
• High electricity cost;^[14]
• Legal uncertainty;^[15]
• High interest rates;^[16]
• 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]

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

Notes and References

1. News: From crisis to crisis in Brazil . 24 July 2007. The Economist. 29 October 2011.
2. News: Epic bank heist exposes Brazil's security flaws. 13 October 2011. Reuters. 29 October 2011. Guillermo. Parra-Bernal. Brian. Winter. Bruno. Marfinati. 28 October 2011. https://web.archive.org/web/20111028054713/http://www.reuters.com/article/2011/10/13/us-brazil-security-idUSTRE79C0OD20111013. live.
3. Web site: Custo Portugal . 2018-07-29 . https://web.archive.org/web/20160303223904/http://economico.sapo.pt/noticias/custo-portugal_10362.html . 2016-03-03 . dead .
4. Web site: Entenda o Custo Brasil. 5 September 2011.
5. Web site: Página não encontrada – Revista Ideias.
6. News: Why everything costs so much in Brazil . 29 April 2013 . . 2 May 2013 . dead . https://web.archive.org/web/20130502011345/http://super.abril.com.br/blogs/crash/why-everything-costs-so-much-in-brazil/ . 2 May 2013 .
7. Web site: Spread bancário custa R$ 261 bi aos brasileiros em 12 meses - Estadao.com.br . 2013-10-11 . dead . https://web.archive.org/web/20091228114316/http://www.estadao.com.br/noticias/economia%2Cspread-bancario-custa-r-261-bi-aos-brasileiros-em-12-meses%2C487268%2C0.htm . 2009-12-28 .
8. Web site: Mão de obra desqualificada é um dos maiores problemas dos empresários . 2013-10-11 . https://web.archive.org/web/20100809125941/http://www.administradores.com.br/informe-se/informativo/mao-de-obra-desqualificada-e-um-dos-maiores-problemas-dos-empresarios/16371/ . 2010-08-09 . dead .
9. News: Moving belongings overseas: Shipping blues . 30 June 2010. The Economist. 29 October 2011.
10. Web site: Abrir empresa no Brasil demora 120 dias. ~ Colunas de Hércules - O Mundo do Empreendedorismo . 2013-12-23 . dead . https://web.archive.org/web/20131224101323/http://www.colunasdehercules.com.br/2012/02/abrir-empresa-no-brasil-demora-120-dias.html . 2013-12-24 .
11. News: A survey of Brazil: An unfinished revolution . 25 March 1999. The Economist. 29 October 2011.
12. News: UPDATE 1-Brazil throws $25 bln lifeline to sagging industry. 2 August 2011. Reuters. 29 October 2011. 20 August 2011. https://web.archive.org/web/20110820084751/http://www.reuters.com/article/2011/08/02/brazil-industry-idUSN1E7710X620110802. live.
13. http://www.fiesp.com.br/wp-content/uploads/2012/05/encargos-trabalhistas-e-impactos-no-brasil-e-no-mundo.pdf{{dead link|date=November 2016 |bot=InternetArchiveBot |fix-attempted=yes }}
14. News: Untangling the custo Brasil . The Economist . 20 August 2012.
15. Web site: Brazilian Tax Reform.
16. News: Converging economies: One-track bind . 24 September 2011. The Economist. 29 October 2011.
17. News: Land of promise . 12 April 2007. The Economist. 29 October 2011.
18. News: Brazil's industrial policy: Bungle in the jungle . 17 February 2000. The Economist. 29 October 2011.