Insight Report Brazil Competitiveness and Inclusive Growth Lab Report

The report identifies structural impediments to Brazil's growth, including the 'Custo Brasil' (Brazil Cost), low innovation output, and limited global value chain integration. It proposes a shift toward demand-driven innovation policies, the expansion of trade agreements, and the institutionalization of monitoring and evaluation for public spending to foster sustainable and inclusive economic growth.

• Brazil faces significant structural competitiveness challenges, ranking 80th out of 137 economies on the Global Competitiveness Index and exhibiting negative total factor productivity (TFP) growth over the past two decades.
• The 'Custo Brasil' (Brazil Cost) severely hinders business operations, characterized by a complex tax system, poor infrastructure, and an inefficient bureaucracy; Brazil and Venezuela share the lowest score (1.7) for the burden of regulations.
• Brazil's corporate tax rate is among the highest globally at 68.4%, and the time required for businesses to prepare, file, and pay taxes (1,958 hours in 2017) is vastly higher than the OECD average of 164.6 hours.
• Innovation in Brazil is primarily supply-driven and concentrated in universities and research centres, with 65% of Federal S,T&I investments directed there, often disconnected from business and societal demands.
• Brazil is one of the least integrated economies in the world regarding global value chains (GVCs), with trade representing less than a quarter of its GDP and high nominal import tariffs (13.6% average in 2016) compared to the OECD average of 2.39%.
• There is a critical shortage of skilled labour in Brazil, with 61% of firms reporting difficulties filling vacancies due to inadequate skills, particularly in the machinery and automotive sectors.
• Public policy effectiveness in Brazil is hampered by a lack of transparency and the absence of systematic monitoring and evaluation (M&E) mechanisms, particularly for industrial policies.
• The report recommends a paradigm shift toward firm-centred, demand-driven innovation policies and the creation of a 'National Innovation Policy Coordination committee' linked to the Office of the President.
• To improve trade, the report suggests expanding trade agreements beyond tariffs to include modern disciplines like e-commerce, government procurement, and regulatory convergence.
• The report advocates for the implementation of 'mission-oriented' research projects and the creation of co-investment funds to support early-stage start-ups and angel investors.

APA

World Economic Forum (2018). Insight Report Brazil Competitiveness and Inclusive Growth Lab Report. http://www3.weforum.org/docs/WEF_43923_Brazil_COMP_Lab_report_2018.pdf

Chicago

World Economic Forum. Insight Report Brazil Competitiveness and Inclusive Growth Lab Report. 2018. http://www3.weforum.org/docs/WEF_43923_Brazil_COMP_Lab_report_2018.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Insight Report Brazil Competitiveness and Inclusive Growth Lab Report |date=March 2018 |url=http://www3.weforum.org/docs/WEF_43923_Brazil_COMP_Lab_report_2018.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2018insight, author = {{World Economic Forum}}, title = {{Insight Report Brazil Competitiveness and Inclusive Growth Lab Report}}, institution = {World Economic Forum}, year = {2018}, month = mar, url = {http://www3.weforum.org/docs/WEF_43923_Brazil_COMP_Lab_report_2018.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }