Thursday, September 30th 2004 - 21:00 UTC

Brazil among the most bureaucratic for business.

Brazil is considered among the worst of 53 poor and emerging countries regarding regulations stability, tax load, financing for development and labour costs, according to the latest report from the World Bank released this week in Washington.

"World Development Report 2005" confirms that Latinamerica and Africa are the worst regions of the world to attempt making business, while China and India, direct competitors of Brazil are described as having achieved "significant advances".

A better business climate has a direct impact on potential investments for Brazil, privileging India and China.

The chapter "A better investment climate for everyone" was elaborated taking into account 30,000 interviews with businessmen from 53 different countries which were done between 2002 and this year. China leads with 3,948 interviews followed by India, 1,827 and Brazil 1,642.

The interviews indicate that 76% of Brazilian businessmen are unsatisfied with the country' regulations lack of stability; 84,5% with the tax load; 71,7% with the lack of financing; and 56,9% with labour costs.

Brazil is described as an "excessively bureaucratic" country with an average 15% of sale prices been absorbed by difficulties faced with making contracts stand, different "tips", excessive paperwork, inadequate infrastructure and costs related to "making the machine get rolling".

Francois Bourguignon, head economist of the World Bank admitted that years of reforms and privatizations in Latinamerica and Brazil have been unable to reduce poverty in the region.

"Macroeconomic stability is a basic condition for a favourable business climate. Many reforms are still pending in Brazil", said Mr. Bourguignon.

The World Bank's chief economist illustrated the Brazilian case saying that 57% of all financing in the country "is concentrated is 2% of the largest corporations".

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