The complexity of Brazil’s legal system has significantly impacted its economic landscape, increasing operational costs for businesses. Experts emphasize that simplifying this intricate web requires political will and robust collaboration between public and private sectors.
Collaboration Between Public and Private Sectors to Simplify Legal and Bureaucratic Challenges
During a seminar on Brazil’s economic costs, held on September 5, specialists advocated for improved cooperation across sectors. They noted that enhancing dialogue between the state and business owners is not enough; there must also be alignment within each group.
Key Discussions at the Seminar
- Participants: Jorge Lima (Secretary of Economic Development, State of São Paulo), Hadassah Santana (FGV Public Policy Professor), and Paulo Furquim (Insper Professor).
- Moderator: Joana Cunha (Special Reporter, El-Balad).
These experts discussed the necessity of legal simplification and establishing mechanisms for legal certainty to foster economic growth. Jorge Lima described an effective collaboration model as a triangle involving the executive branch, legislative branch, and the business community. Each vertex must work in harmony to mitigate Brazil’s economic complexities.
The Role of Each Sector
Lima argued that the federal government should lead efforts to simplify bureaucracy and eliminate obstacles due to the broad nature of these issues. He noted the importance of aligning the interests of legislators with the legal frameworks to ensure consistency.
He cited the agro-industrial sector as an example of successful collaboration among operators to collectively address shared challenges. Furthermore, the discussion revealed that Brazil holds the highest litigation rate globally, which contributes to delays in judicial processes—a point raised by Paulo Furquim.
Legal Security as a Foundation for Economic Growth
Hadassah Santana stressed that enhancing legal security is key to bolstering Brazil’s economic environment. She called for a comprehensive reform of the tax system, viewing it as just the beginning of necessary institutional changes. Confidence in the economic system is crucial for effective transformation.
Challenges in Brazil’s Regulatory Framework
Lima criticized the national legal system’s excessive complexity, with 136 entities empowered to create laws. This fragmentation obstructs fluidity in economic activities. He shared his own experience, noting that substantial time was wasted managing tax issues rather than focusing on sales.
He argued for urgent deregulatory measures, particularly for small and medium-sized enterprises. Lima also mentioned that by January 2026, all company registrations and closures in São Paulo could be processed digitally, which would streamline operations significantly.
Looking Ahead
Lima concluded that Brazil needs to address competitiveness risks immediately, not in the distant future. He highlighted how the slow pace of reforms has hindered the country, allowing smaller nations like the Dominican Republic to outpace Brazil in sectors such as tourism.
