893) Relatorio sobre as liberdades no mundo: o Brasil segundo a Heritage Foundation

Todo ano a Heritage Foundation, organização libertária americana, apresenta o seu relatório sobre as liberdades no mundo. O Brasil, segundo o relatório de 2008, é considerado apenas parcialmente livre, em função da grande intervenção do governo na economia, ou seja, o grande papel que o Estado possui na regulação das atividades econômicas, o que diminui, segundo a organização, o grau de liberdade individual e a capacidade da iniciativa privada de conduzir seus próprios negócios sem intervenção pública.
O relatório sobre o Brasil, em inglês, pode ser encontrado neste link (mas ele existe em português, também, no próprio site da Heritage).
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Paulo Roberto de Almeida

Brazil 2008: Freedom report

Brazil's economy is 55.9 percent free, according to our 2008 assessment, which makes it the world's 101st freest economy. Its overall score is 0.2 percentage point lower than last year, with lower scores in freedom from corruption and labor freedom. Brazil is ranked 21st out of 29 countries in the Americas, and its overall score is below the regional average.

Brazil is a regional economic power but is not notably strong in any of the 10 economic freedoms. The personal tax rate and the corporate tax rate are burdensome. Overall tax revenue is high as a percentage of GDP relative to other developing countries.

Brazil suffers from weak financial freedom and a large central government. Regulatory inflexibility makes starting a business take much longer than the world average. Significant restrictions on foreign capital exist in many areas, and the government remains heavily involved in banking and finance. The judicial system and other areas of the public sector are inefficient and subject to corruption.

Background:
The world's fifth-largest country, Brazil has abundant natural resources but has not realized its full economic potential. Real GDP growth was positive but relatively low over the past decade. High income inequality and the rapid growth of the urban poor population have fueled pressure for socialist policies. A convoluted tax system, inadequate transportation infrastructure, and barriers to foreign investment have also impeded growth. Other problems include government management of most of the oil and electricity sectors, an ineffective judiciary, weak public education, and excessive regulation. Agriculture and industry account for 10 percent and 40 percent, respectively, of GDP.

Business Freedom - 53.6%
The overall freedom to start, operate, and close a business is limited by Brazil's national regulatory environment. Starting a business takes more than three times the world average of 43 days, and obtaining a business license takes more than the global average of 234 days. Despite reform efforts, regulation is complex, discretionary, and non-transparent. Closing a business is difficult.

Trade Freedom - 70.8%
Brazil's weighted average tariff rate was 7.1 percent in 2005. Import and export quotas, bans and restrictions, market access barriers in services, prohibitive tariffs, border fees, restrictive regulatory and licensing rules, export support programs, non-transparent government procurement, and problematic protection of intellectual property rights persist. An additional 15 percentage points is deducted from Brazil's trade freedom score to account for these non-tariff barriers.

Fiscal Freedom - 68.6%
Brazil's top income tax rate is 27.5 percent. The standard corporate tax rate is 15 percent, but a surtax of 10 percent and a 9 percent social contribution on net profit bring the effective rate to 34 percent. Other taxes include a financial transactions tax and a tax on interest. In the most recent year, overall tax revenue as a percentage of GDP was 35 percent.

Freedom from Government - 55.5%
Total government expenditures, including consumption and transfer payments, are relatively high. In the most recent year, government spending equaled 38.5 percent of GDP. Public debt is still around 50 percent of GDP. Besides debt service, government spending is focused mainly on pensions, transfers to local governments, and bureaucracy.

Monetary Freedom - 75.7%
Inflation is relatively high, averaging 5.1 percent between 2004 and 2006. Relatively unstable prices explain most of the monetary freedom score. Although such public services as railways, telecommunications, and electricity have been privatized, the government oversees prices through regulatory agencies. The National Petroleum Agency fixes the wholesale price of fuel, and the government controls airfare prices. An additional 10 percentage points is deducted from Brazil's monetary freedom score to adjust for price controls.

Investment Freedom - 50%
Foreign capital enters freely and since 1995 has received national treatment. Foreign investment is restricted in nuclear energy, health services, media, rural and border property, fishing, mail and telegraph services, aviation, and aerospace. The government has carried out three major financial and energy privatizations since 2004 but has also established a more central role in setting energy prices and forecasting energy demand. Foreign exchange accounts are subject to limited restriction, and foreign participation in certain economic activities is prohibited. The central bank approves outward direct investment in some cases, including transfers and remittances, where it has broad administrative discretion.

Financial Freedom - 40%
Brazil's financial system is South America's largest and one of the largest among all emerging markets. Despite state involvement, banking and capital markets are diversified, dynamic, and competitive. Technically forbidden by the 1988 constitution, foreign investment in banking is nonetheless almost always approved. About 200 public and private commercial banks and many non-banking financial institutions conform to international best practices guidelines after a long period of consolidation. The top 10 banks hold 82.4 percent of total assets, and the sector is dominated by three publicly controlled banks. The growing insurance market remains fairly small. The stock market is not a major source of domestic corporate finance, but it is growing, and trading is active; there were 26 new IPOs in 2006.

Property Rights - 50%
Contracts are generally considered secure, but Brazil's judiciary is inefficient, somewhat arbitrary, subject to political and economic influence, and lacking in resources and staff training. Decisions can take years, and decisions of the Supreme Federal Tribunal are not automatically binding on lower courts. Protection of intellectual property rights has improved, but piracy of copyrighted material persists.

Freedom from Corruption - 33%
Corruption is perceived as significant. Brazil ranks 70th out of 163 countries in Transparency International's Corruption Perceptions Index for 2006. Businesses bidding on government procurement contracts at times encounter corruption, which is also a problem in the lower courts and can discourage investment.

Labor Freedom - 61.9%
Brazil's inflexible employment regulations should be improved to enhance employment and productivity growth. The non-salary cost of employing a worker is high, and dismissing a redundant employee can be costly. Benefits mandated by rigid labor legislation amplify overall labor costs. The high cost of laying off a worker creates a risk aversion for companies that would otherwise hire more people and grow.

Brazil

* Rank: 101
* Regional Rank: 21 of 29

Quick Facts

* Population:
186.4 million
* GDP (PPP):
$1.57 trillion
2.9% growth in 2005
3.1% 5-yr. comp. ann. growth
$8,402 per capita
* Unemployment:
9.8%
* Inflation (CPI):
6.9%
* FDI (net inflow):
$12.5 billion
* Official Development Assistance:
$361.8 million (6% from the U.S.)
* External Debt:
$188.0 billion
* Exports:
$134.4 billion
Primarily transport equipment, iron ore, soybeans, footwear, coffee, automobiles
* Imports:
$97.8 billion
Primarily machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics