Infrastructure investments in Brazil

Faced with the economic challenges brought by the pandemic, it is urgent to facilitate entrepreneurship in the country and signal to the market that investing in Brazil is worth it.

In recent times, Brazil has faced important challenges in resuming growth. To attract investment, the modernization of the Brazilian business environment is a crucial step, and one that has been pursued by the current administration – which still seeks to maintain legal certainty and, above all, respect for the framework of global competitiveness.

It was with this objective in mind that, at the end of the 1st half of 2021, Congress created the Parliamentary Front for Competitive Brazil, made up of more than 200 parliamentarians, with the aim of uniting efforts within the legislature around agendas capable of making the country move forward. in competitiveness and productivity.

One of the biggest obstacles – and main target of the front – is the so-called Custo Brasil. To change this scenario, the Parliamentary Front for Competitive Brazil, launched the legislative agenda with priority projects to unlock the country, among them are tax reform, administrative reform and regulatory frameworks for the infrastructure sector, especially in the areas of transport. and energy.

What are the main challenges to unlock the country? And what has been done to make Brazil more competitive?

Brazil is still a significantly bureaucratic country. Issues such as lack of competitiveness, tax complexity, outdated bureaucracy and legal uncertainty impact not only the ability to open and maintain companies, but also the generation of jobs and income and the attraction of investments.

The Provisional Measures (MPs) on economic freedom and the business environment are examples of Government initiatives that have helped to modernize and simplify the Brazilian business environment, making it more attractive to investors. But despite the advances, the poor performance in global competitiveness rankings shows that there is still much to be done in the country.

The Government expects that the effects of these laws will be perceived over the next few years and that the improvement in the Brazilian business environment will increase our performance in international rankings of global competitiveness, resulting in a significant economic impact in the long term, with the possibility of increasing of GDP, improving worker productivity and attracting foreign direct investment in Brazil.

Among some measures to reduce bureaucracy for those who produce, we can mention Inmetro, for example, which took an average of 36 days to license a product. Today, the time is 12 days and, by the end of the Government, we must reach the deadline of 36 hours for licensing a product that is not high risk.

The main solutions pointed out by experts to improve the Brazilian business environment and reduce the Brazil Cost are:

Debureaucratization and simplification of the Brazilian business environment

MVP 1040/2021 of the business environment, converted into Law No. 13,874/19, aims to reduce bureaucracy and ensure greater ease to undertake in the country. In general, the measure brings changes that promise to reduce bureaucracy in processes that affect the life cycle of companies, such as simplification of procedures for starting a business, foreign trade and debt enforcement. Among the highlights is the creation of the one-stop shop, which must unify the company’s registration through the CNPJ (this number must be the same used by the City Hall, the State and the Union).

Efficient regulatory frameworks

Regulatory frameworks are vital to unlocking the economy because they pave the way for attracting private investment, both from foreign and Brazilian companies. The new milestones in natural gas, sanitation and energy are some important examples for the achievement of new investments.

Modernization of important sectors of the economy

The new measure proposes to update the national auction legislation with the waiver of the intermediation of auctioneers in auctions carried out completely online. The auction market, which moves more than 6 billion reais in the country, can grow 35 times with the simplification of the process in the digital environment.

 Ease of hiring manpower

Brazil has already advanced in some measures such as exemption from payroll, especially during the pandemic; in the flexibilization of requirements in relation to NRs; in the simplification of eSocial; and in active qualification policies such as “Emprega Mais” and “Qualifica Mais Progredir”, which aim to improve the management training of small Brazilian entrepreneurs. But much remains to be done to reduce and simplify labor costs and standards.

Tax reform

We still have a long way to go before the reforms and measures necessary for Brazil’s sustainable economic growth are implemented and perceived by the market. Until then, we hope that Brazil continues to advance to become the country that grows the most and generates jobs in the world.

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