Authors: Paul Holden and Geoffrey Shepherd
Produced for the World Bank, 1994

This report describes the current environment for doing business in Brazil and analyzes the ways in which public policies have affected the private sector ' s ability to develop in an economically efficient way. There has in the past been much to commend these policies. There is now much that is wrong, and this assessment suggests priority areas for government action. The policy framework has changed in the last four decades, and the report takes a partial historical perspective in order to show the cumulative weight of past policies in explaining the current business environment. The progressive development of macroeconomic instability over almost two decades and its debilitating effect on today ' s business environment is this report ' s central theme. The analysis also emphasizes the institutions (in particular the legal system) that underpin economic activity in Brazil and the way the financial intermediation has collapsed under the pressure of inflation. The report further looks at the regulatory regime for industrial activities. The choice of topics is selective, reflecting the apparent priorities revealed from discussions and surveys in Brazil. Detailed treatments of the private sector in agriculture and more generally in the poorer regions of Brazil are notable omissions.

For copies of the report:

Brazil PSA Vol. 1

Brazil PSA Vol. 2