世界经济论坛-巴西竞争力与包容性增长实验报告-2018.3-38页-3mb

Brazil Competitiveness and Inclusive Growth Lab Report Summary

Core Content

The Brazil Competitiveness and Inclusive Growth Lab Report (March 2018) is a comprehensive analysis of the challenges Brazil faces in enhancing its economic competitiveness and achieving inclusive growth. It outlines the current state of Brazil's competitiveness, the role of public-private collaboration, and the key areas that require reform to close the gap with higher-income countries.

Main Points

• Competitiveness and Productivity: Brazil's competitiveness, as measured by the Global Competitiveness Index (GCI), is below the OECD and Latin American averages. The country's productivity has been declining for two decades, with negative total factor productivity (TFP) growth. This is attributed to structural inefficiencies and resource misallocation.

• Innovation and Technology Readiness: Innovation remains a key challenge for Brazil. While it is relatively strong compared to other Latin American countries, it lags behind OECD nations. Brazil's innovation output, as measured by patent applications, is very low, with only 0.003% of global Patent Cooperation Treaty (PCT) applications. R&D expenditures as a percentage of GDP are also below OECD averages, despite a 17% increase from 2006 to 2014.

• Business Environment: Brazil's business environment is characterized by high regulatory and tax burdens. It ranks among the least competitive countries in terms of the ease of starting a business, requiring 11 procedures and 80 days. The corporate tax rate is among the highest in the world at 68.4%, and the time spent on tax preparation is excessively high.

• Global Value Chain (GVC) Integration: Brazil's integration into GVCs is limited, with exports and imports representing less than a quarter of GDP. The country has high nominal tariff rates (13.6% in 2016), and non-tariff barriers also hinder trade and foreign investment. Customs procedures are viewed as inefficient, further impeding trade.

• Public Policies and Institutional Framework: The report highlights the need for improved public policies and a more transparent and accountable governance system. The current policy environment is perceived as inefficient and opaque, which undermines business confidence and investment. The implementation of monitoring and evaluation mechanisms is crucial to assess the effectiveness of policies and reallocate resources to more productive areas.

• Inclusive Growth: Given Brazil's high levels of inequality and poverty, competitiveness policies must integrate inclusion as a cross-cutting issue. The recommendations emphasize the need to support both productivity and equity, ensuring that reforms benefit all segments of society.

Key Findings and Recommendations

Work Stream 1: GVC Integration and Innovation

• Innovation is a critical driver of competitiveness.
• Brazil's innovation ecosystem is underdeveloped, with low patent applications and R&D investment.
• Recommendations: Enhance the innovation environment through better IP processes, increased R&D investment, and improved education and training systems to address skill gaps.

Work Stream 2: A New Generation of Public Policies

• Public policy design and implementation are key to productivity growth.
• The current policy environment is seen as inefficient and lacking transparency.
• Recommendations: Implement rigorous monitoring and evaluation mechanisms, improve policy transparency, and ensure that public spending is directed towards productive sectors.

Work Stream 3: Institutional, Legal, and Regulatory Framework

• Regulatory and tax burdens are major obstacles to business growth and investment.
• Brazil ranks poorly in ease of doing business and has complex and burdensome regulations.
• Recommendations: Simplify the regulatory environment, reduce tax complexity, and improve the efficiency of customs and administrative procedures.

Expected Outcomes

• The implementation of the Lab's recommendations can help narrow Brazil's competitiveness gap with higher-income countries.
• Enhancing innovation and trade integration can boost productivity and create skilled job opportunities.
• Improving the regulatory and tax environment can increase private investment and foster economic resilience.

Conclusion

The report underscores the need for structural reforms and public-private collaboration to enhance Brazil's competitiveness and promote inclusive growth. It emphasizes that addressing institutional inefficiencies, reducing regulatory and tax burdens, and stimulating innovation are essential steps in this process. The success of the initiative will depend on the effective implementation of these reforms and the commitment of stakeholders across both the public and private sectors.

Key Figures

• Brazil ranks 80th out of 137 economies in the Global Competitiveness Index.
• The average number of days to start a business in Brazil is 80, compared to 7 in São Paulo after reforms.
• The corporate tax rate is 68.4%, placing Brazil 134th in the GCI sample.
• Brazil's R&D expenditure as a percentage of GDP is 1.17%, which is about half of the OECD average.
• The share of knowledge-intensive jobs in Brazil is 21.6%, compared to 39.8% in OECD countries.

Annex and Endnotes

• The report includes a list of members of the Brazil Competitiveness and Inclusive Growth Lab.
• Endnotes provide detailed sources for the data and analysis used in the report, including the World Economic Forum, World Bank, and UNESCO.

Summary

The Brazil Competitiveness and Inclusive Growth Lab Report is a strategic roadmap for enhancing Brazil's economic competitiveness and promoting inclusive growth. It identifies critical areas such as innovation, trade integration, and institutional reform as key to overcoming long-standing challenges. The report calls for systematic reforms, transparent governance, and collaboration between sectors to achieve sustainable productivity growth and economic resilience.