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Brazil cost

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Title: Brazil cost  
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Subject: Corruption in Brazil, Economy of Brazil, Orange production in Brazil, Plano Trienal, Brazilian Miracle
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Brazil cost

Brazil Cost (Portuguese: Custo Brasil ) 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 territory.[18]

See also


  1. ^ a b "From crisis to crisis in Brazil".  
  2. ^ a b Parra-Bernal, Guillermo; Winter, Brian; Marfinati, Bruno (13 October 2011). "Epic bank heist exposes Brazil's security flaws".  
  3. ^
  4. ^
  5. ^
  6. ^ a b c d e f "Why everything costs so much in Brazil".  
  7. ^,spread-bancario-custa-r-261-bi-aos-brasileiros-em-12-meses,487268,0.htm
  8. ^
  9. ^ a b c "Moving belongings overseas: Shipping blues".  
  10. ^
  11. ^ "A survey of Brazil: An unfinished revolution".  
  12. ^ "UPDATE 1-Brazil throws $25 bln lifeline to sagging industry".  
  13. ^
  14. ^ "Untangling the custo Brasil". The Economist. 20 August 2012. 
  15. ^
  16. ^ "Converging economies: One-track bind".  
  17. ^ "Land of promise".  
  18. ^ "Brazil’s industrial policy: Bungle in the jungle".  

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