Brazil creates working group to boost growth

Brazil’s Ministry of Development, Industry, Trade, and Services has set up the Working Group to Reduce the Brazil Cost, aimed at devising measures to boost the country’s competitiveness and growth. Activities will last four years.

Brazil cost is a concept used to define the challenges and obstacles to the country’s economic growth—such as logistical problems, red tape, legal issues, and a high tax burden that make the cost of domestic products high and investments less attractive. According to a study released in May this year by the Competitive Brazil Movement (MBC) and the ministry, the Brazil cost currently amounts to a yearly BRL 1.7 trillion.

The study was based on the additional expense Brazilian companies need to spend in order to produce in the country, compared to the average cost of production in OECD nations. Estimates are based on 12 indicators on key areas for business competitiveness, like the cost of employing a worker.

To tackle these challenges, the group is expected to propose public policies and regulations for the Executive. Solutions will be submitted to the National Industrial Development Council, which is also tasked with coordinating the working group.

Group members will meet every month, with extra meetings when necessary. At each assembly, the activities carried out will be reported to the council.