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Over the last few decades, Brazil has experienced relatively weak economic growth due to stagnant productivity. To boost productivity, Brazil should embark on an ambitious structural reform process. In doing so, it is crucial that authorities select a few reform priorities to avoid dispersing political capital on an overly broad reform agenda. The paper aims to identify Brazil’s reform priorities in two steps. First, it estimates the impact that different reforms have on Brazil’s productivity. Second, it analyzes survey data to assess the extent of public support for reforms. The results show that banking sector reforms would generate the largest productivity gains and have the highest level of public support. Moreover, they would also be relatively easy to legislate and generate significant fiscal savings.
Over the last few decades, Brazil has experienced relatively weak economic growth due to stagnant productivity. To boost productivity, Brazil should embark on an ambitious structural reform process. In doing so, it is crucial that authorities select a few reform priorities to avoid dispersing political capital on an overly broad reform agenda. The paper aims to identify Brazil’s reform priorities in two steps. First, it estimates the impact that different reforms have on Brazil’s productivity. Second, it analyzes survey data to assess the extent of public support for reforms. The results show that banking sector reforms would generate the largest productivity gains and have the highest level of public support. Moreover, they would also be relatively easy to legislate and generate significant fiscal savings.
Brazil is at crossroads, emerging slowly from a historic recession that was preceded by a huge economic boom. Reasons for the historic bust following a boom are manifold. Policy mistakes were an important contributory factor, and included the pursuit of countercyclical policies, introduced to deal with the effects of the global financial crisis, beyond the point where they were helpful. More fundamentally, it reflects longstanding structural weaknesses plaguing the economy, that also help explain Brazil’s uninspiring growth performance over the past four decades.
In the last ten to fifteen years, profound structural reforms have moved Latin America and the Caribbean from closed, state-dominated economies to ones that are more market-oriented and open. Policymakers expected that these changes would speed up growth. This book is part of a multi-year project to determine whether these expectation have been fulfilled. Focusing on technological change, the impact of the reforms on the process of innovation is examined. It notes that the development process is proving to be highly heterogenous across industries, regions and firms and can be described as strongly inequitable. This differentiation that has emerged has implications for job creation, trade balance, and the role of small and medium sized firms. This ultimately suggests, amongst other things, the need for policies to better spread the use of new technologies.
Going for Growth is the OECD’s annual report highlighting developments in structural policies in OECD countries. It identifies structural reform priorities to boost real income for each OECD country and key emerging economies.
Brazil is a country of extreme inequalities, one of the most important of which is the acute concentration of rural land ownership. In recent decades, however, poor landless workers have mounted a major challenge to this state of affairs. A broad grassroots social movement led by the Movement of Landless Rural Workers (MST) has mobilized hundreds of thousands of families to pressure authorities for land reform through mass protest. This book explores the evolution of the landless movement from its birth during the twilight years of Brazil&’s military dictatorship through the first government of Luiz In&ácio Lula da Silva. It uses this case to test a number of major theoretical perspectives on social movements and engages in a critical dialogue with both contemporary political opportunity theory and Mancur Olson&’s classic economic theory of collective action. Ondetti seeks to explain the major moments of change in the landless movement's growth trajectory: its initial emergence in the late 1970s and early 80s, its rapid takeoff in the mid-1990s, its acute but ultimately temporary crisis in the early 2000s, and its resurgence during Lula's first term in office. He finds strong support for the influential, but much-criticized political opportunity perspective. At the same time, however, he underscores some of the problems with how political opportunity has been conceptualized in the past. The book also seeks to shed light on the anomalous fact that the landless movement continued to expand in the decade following the restoration of Brazilian democracy in 1985 despite the general trend toward social-movement decline. His argument, which highlights the unusual structure of incentives involved in the struggle for land in Brazil, casts doubt on a key assumption underlying Olson's theory.
Going for Growth is the OECD’s regular report on structural reforms in policy areas that have been identified as priorities to boost incomes in OECD and selected non-OECD countries (Brazil, China, Colombia, India, Indonesia, Latvia, Russian Federation and South Africa).
It has been more than 20 years since Brazil's 1988 Constitution formally established the Unified Health System (Sistema Unico de Saude, SUS). Building on reforms that started in the 1980s, the SUS represented a significant break with the past, establishing health care as a fundamental right and duty of the state and initiating a process of fundamentally transforming Brazil's health system to achieve this goal. This report aims to answer two main questions. First is have the SUS reforms transformed the health system as envisaged 20 years ago? Second, have the reforms led to improvements with regard to access to services, financial protection, and health outcomes? In addressing these questions, the report revisits ground covered in previous assessments, but also brings to bear additional or more recent data and places Brazil's health system in an international context. The report shows that the health system reforms can be credited with significant achievements. The report points to some promising directions for health system reforms that will allow Brazil to continue building on the achievements made to date. Although it is possible to reach some broad conclusions, there are many gaps and caveats in the story. A secondary aim of the report is to consider how some of these gaps can be filled through improved monitoring of health system performance and future research. The introduction presents a short review of the history of the SUS, describes the core principles that underpinned the reform, and offers a brief description of the evaluation framework used in the report. Chapter two presents findings on the extent to which the SUS reforms have transformed the health system, focusing on delivery, financing, and governance. Chapter three asks whether the reforms have resulted in improved outcomes with regard to access to services, financial protection, quality, health outcomes, and efficiency. The con
July 12, 2011-Over the course of a generation, Brazil has emerged as both a driver of growth in South America and as an active force in world politics. A new Council on Foreign Relations (CFR)-sponsored Independent Task Force report asserts "that it is in the interest of the United States to understand Brazil as a complex international actor whose influence on the defining global issues of the day is only likely to increase."Brazil currently ranks as the world's fifth-largest landmass, fifth-largest population, and expects to soon be ranked the fifth largest economy. The report, Global Brazil and U.S.-Brazil Relations, recommends that "U.S. policymakers recognize Brazil's standing as a global actor, treat its emergence as an opportunity for the United States, and work with Brazil to develop complementary policies."The Task Force is chaired by former secretary of energy Samuel W. Bodman and former president of the World Bank James D. Wolfensohn, and directed by CFR Senior Fellow and Director for Latin America Studies, and Director of the Global Brazil Initiative Julia E. Sweig.Recognizing Brazil's global role, the report recommends that the Obama administration now fully endorse the country's bid for a seat as a permanent member of the United Nations Security Council (UNSC). It argues that "a formal endorsement from the United States for Brazil would go far to overcome lingering suspicion within the Brazilian government that the U.S. commitment to a mature relationship between equals is largely rhetorical."Domestically, Brazil's "inclusive growth has translated into a significant reduction of inequality, an expansion of the middle class, and a vibrant economy, all framed within a democratic context." Consequently, Brazil has been able to use its economic bona fides to leverage a stronger position in the international, commercial, and diplomatic arena.The report stresses the importance of regular communication between the presidents of both countries. "Cooperation between the United States and Brazil holds too much promise for miscommunication or inevitable disagreements to stand in the way of potential gains." A mature, working relationship means that "the United States and Brazil can help each other advance mutual interests even without wholesale policy agreements between the two," notes the report.The Task Force further recommends that- the U.S. Congress "include an elimination of the ethanol tariff in any bill regarding reform to the ethanol and biofuel tax credit regime."- the United States "take the first step to waive visa requirements for Brazilians by immediately reviewing Brazil's criteria for participation in the Visa Waiver Program."- the U.S. State Department create an Office for Brazilian Affairs and the National Security Council (NSC) centralize its efforts under a NSC director for Brazil in order to better coordinate the current decentralized U.S. policy.The bipartisan Task Force includes thirty distinguished experts on Brazil who represent a range of perspectives and backgrounds. The report includes a number of additional views by Task Force members, including one that notes, "We believe that a more gradual approach [regarding Brazil's inclusion as a full UNSC member] would likely have more success in navigating the diplomatic complexities presented by U.S. support for Brazil." Another view asserts, "If the United States supports, as the Obama administration has said it does, leadership structures in international institutions that are more reflective of international realities, it must support without qualifications Brazil's candidacy [for the UNSC]."
Across the OECD, governments are seeking to undertake structural reforms to strengthen their economic growth. Based on a broad set of indicators of structural policies and performance, Going for Growth 2007 takes stock of the recent progress made in implementing policy reforms and identifies, for each OECD country, five policy priorities to lift growth. It calls for reforms in areas such as product and labour market regulation, taxation, pension, income support, health and education to boost labour productivity and employment. The set of internationally comparable indicators provided here enables countries to assess their economic performance and structural policies in a broad range of areas. The publication puts together the knowledge accumulated at the OECD in these various fields. In addition, this issue contains four analytical chapters covering: The employment effects of policies and institutions Product market regulation and productivity convergence Policies to strengthen competition in product markets Factors shaping the implementation of structural reform