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Market Analysis Brazil

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    Market Analysis Brazil Market Analysis Brazil Presentation Transcript

    • Origin Business Engineering Market Analysis Brazil
    • Index 1. Introduction 2. Brazil Culture and Doing Business 3. Brazil and its Macroeconomic Situation Origin 2010 | © Origin Business Engineering B.V. 2
    • I Chapter 1 - Introduction Origin 2010 | © Origin Business Engineering B.V. 3
    • Outline » Brazil and Its Culture Culture, Politics, Economy, Social Issues, Technology; » Doing Business in Brazil Competitiveness Staring a business » Macroeconomic situation Origin 2010 | © Origin Business Engineering B.V. 4
    • Chapter 2 – Brazil culture and doing II business Origin 2010 | © Origin Business Engineering B.V. 5
    • Brazil- Culture and Language » Primary Attribute: Brazil is not like the rest of Spanish‐Speaking Latin  America, and they are proud of it. » Brazilian culture is diverse in nature. An ethnic and cultural mixing of  Indians, Portuguese and Africans.  Italian, German, Spanish and Japanese immigrants settled Brazil and created a  multicultural and multiethnic society. Brazil was a colony of Portugal for over 3 centuries. The Portuguese arrived  during this period (nearly 1 million) and brought their culture.  Brazil is a member of The Community of Portuguese Language Countries  (CPLP). Origin 2010 | © Origin Business Engineering B.V. 6
    • Brazil culture, language and religion » The native inhabitants had strong contact with colonists.  » Many exterminated, while others mixed with the Portuguese.  » Brazil holds Amerindian influences in its culture, food and language (Brazilian Portuguese has  hundreds of words of Indian origin, mainly from the Tupi‐Guarani). » Brazil has the largest Catholic population in the world.  Many other beliefs have been incorporated into the Brazilian Catholicism: • Spiritism,  • Buddhism,  • Hinduism,  • Ayahuasca,  • Judaism as well as religious syncretism, such as  • Candomblé,  • Umbanda,  • Macumba, which mix Catholicism with African tribal religions.  Origin 2010 | © Origin Business Engineering B.V. 7
    • Politics – President Lula » Lula’s second presidency was a step towards democratic consolidation; » Orthodox expenditure policies permitted an increased emphasis on anti‐poverty  initiatives; » It boosted Lula’s popularity, despite scandals that emerged in 2005; » For his second term, Lula announced an economic program that would accelerate GDP  growth through increased Government investment.   » Earns lot of respect from business arena in Brazil; » Original Petrobras director; » Has supported with success the monetary policy set in by former president Henrique  Cardoso who was able to tame the hyperinflation that has a big influence on the  country in the 1990’s; » Currently Mr. Henrique Mereilles is heading the Central Bank of Brazil and has so far  supported and sustained the anti inflationary policy of this predecessor; Origin 2010 | © Origin Business Engineering B.V. 8
    • Origin 2010 | © Origin Business Engineering B.V. 9
    • Politics- Lula » Lula’s second presidency was a step towards democratic consolidation. » Orthodox expenditure policies permitted an increased emphasis on anti‐poverty  initiatives.  » It boosted Lula’s popularity, despite scandals that emerged in 2005.  » For his second term, Lula announced an economic program that would accelerate  GDP growth through increased Government investment.   » “Growth Acceleration Plan” (January 2006) included investment projects and two  long term fiscal norms that will influence more than a third of federal expenditure.  » The norms are:   Increase minimum wage (2008‐2011). Proposal already became Law. Limit annual increases in spending on federal government personnel. Not surprisingly  this proposal is struggling to pass congress. • Federal Government Personnel controls the institutions of Brazilian Government.  Their  multiple benefits are stipulated in the Brazilian Constitution. Origin 2010 | © Origin Business Engineering B.V. 10
    • Politics- Party System » The party system is weak in this electoral system, which forms a single constituency within each  state, then votes on hundreds of candidates.  Congressional representatives show greater loyalty to interest groups. Discipline is weak for members of Political Parties.  The highly fragmented legislature makes it difficult for any party to secure a majority. Fragile coalitions are the norm.  Individual politicians exert great influence, and switching party allegiances is common. » The Partido dos Trabalhadores embraces views from traditional socialist to  pro‐market Social‐democrat, like Lula.  » His views are not universally accepted within the PT. » The Partido do Movimento Democrático Brasileiro has been an important  factor in all legislatures since the return to democracy.  » It has lent its support to both Cardoso and Lula, receiving concessions in  return. The party’s size and internal divisions produce unstable coalitions.  » Its bargaining power increased after a majority of the party granted official  support to Lula in 2006. Origin 2010 | © Origin Business Engineering B.V. 11
    • Economy: The Real » In 1994 Brazil adopted a fixed exchange rate to manage inflation.  » Effective in ending hyperinflation, also affected competitiveness.   » Now Targeted Inflation Rate is used to manage inflation. » The Real is “free” to move with the market.  » Since Lula’s presidency, the Real’s nominal exchange rate has been  volatile.   Currently the exchange rate is at R1.75:US$1, compared to R4:US$1 during  the 2002 presidential elections.  The appreciation of the Real has made a lot of other Brazilian products more  expensive and less competitive in international markets.  Origin 2010 | © Origin Business Engineering B.V. 12
    • Economy: Bovespa » The Bolsa de Valores de São Paulo (Bovespa) stock market outstanding  growth in recent years.  » Largest stock exchange in Latin America reaching a record level of US$723  billion in 2006. » The Bovespa index broke records in 2007, as international credit rating  agencies put Brazil at one notch below investment grade.  As a result of abundant liquidity in global stock markets and business  confidence, number of IPOs rose from zero in 2002 and 2003, 26 in 2006 and 30  in the first half of 2007.  Foreign investors account for 35.5% of all investment in stock market in 2006, up  from 32.8% in 2005.  Origin 2010 | © Origin Business Engineering B.V. 13
    • Economy: The Banking Sector » Brazil’s banking sector is solid, diversified, and well regulated.  » At the end of 2006, the banking sector had total assets of  US$875 billion and employed around 425,000 people. » Average return on equity for 2006 stood at 23% for the  second consecutive year.  » During 2006, total credits increased 21%. » Lula’s government is trying the increase credit amounts for  micro‐credits by means of his Growth Acceleration National  Program. Origin 2010 | © Origin Business Engineering B.V. 14
    • Economy: Production and Employment » In 2007 and through to October of 2008, the Gross Domestic Product has  grown 4,7% and 5,2%.   Somewhat inferior to the growth experienced in the region.  » Consumption is primary type of expenditure, 80% of the GDP.  » Brazil’s Balance of Trade is positive, representing 26% of the GDP for  2006. This percentage has dropped since 2004 (29%GDP). Explained by  the increase in Consumption, creating demand on imports. » The open unemployment rate in 2006 was 10%. » Commerce and the Industrial and Service Sectors accounted for 520,000  new jobs.  Origin 2010 | © Origin Business Engineering B.V. 15
    • Labor Laws- CLT » “The Brazilian worker is a worker surrounded by laws on all  sides but dead from hunger. So many laws! But we lack one  to keep him from dying of hunger.—Minas Gerais trade  union leader from the 1950s (French, 2004)”. The rights and duties of employers and employees in Brazil are set out in  the “Consolidation of Brazilian Labor Laws – CLT”, issued in 1943.  This system of labor and social security laws was "quite elaborate and  advanced for an underdeveloped country which was just beginning to  industrialize"—indeed, Brazil's system was considered "one of the most  advanced in the whole world." Origin 2010 | © Origin Business Engineering B.V. 16
    • Labor Laws: Benefits » Compulsory benefits add 60% to 80% in salary:  Employers contribute 8.5% of wages to deferred‐salary account at the Length of Service Guarantee Fund  (FGTS).  Employers contribute 20% of employee’s wages to the National Institute for Social Security (INSS), the  country’s public pension system, as well as a maximum of 8.8% on other social security taxes.  The INSS coverage includes medical and hospital assistance; sick pay after 15 days of absence, at 70% of  salary; maternity benefits of up to one month’s minimum wage; and retirement pay.  » Paid vacations of 30 calendar days are granted after a full year of service.  » Employees are granted full sick pay for the first 15 days of a documented illness. Female employees receive mandatory maternity leave of four months and male employees  receive paternity leave of five days.  A mandatory bonus of one month’s pay (called the 13th salary) must be 50%‐paid until  November of each year. The remaining balance is traditionally paid at year‐end. » A transport subsidy for workers is mandatory for all employers.  Companies must provide their employees with transport to and from work or subsidize their  mass‐transit expenses by paying all such costs exceeding 6% of an employee’s gross salary. » Companies must pay into a national subsidized savings program for workers (PIS),  administered by the national savings‐bank system.  Such payments are deductible for purposes of corporate income tax and the social  contribution on net profit. Origin 2010 | © Origin Business Engineering B.V. 17
    • Social Issues: Distribution of Wealth and Industry » Brazil’s population is unevenly distributed across the regions.  » The wealthiest region, encompassing the states of São Paulo, Rio de  Janeiro, Minas Gerais and Espírito Santo, accounts for over one‐half of  Brazil’s GDP.   » Manufacturing is concentrated in the state of São Paulo.  Fourteen cities have a population of over 1 million citizens.  Although income inequality is a problem, increases in the minimum wage  have had a significant effect in distribution of wealth.  Origin 2010 | © Origin Business Engineering B.V. 18
    • Crime » The level of crime in Brazil’s major cities is high.   » Deficiencies in the security forces underpin concerns about  the ability to contain the problem.  Sporadic clashes between security forces and armed gangs spread  panic among the population.  A 3,000‐strong federal security force has been deployed in Rio de  Janeiro since January 2007. Organized criminal groups are involved in robbing cargo from  shipments, concentrating in São Paulo and Rio de Janeiro states. Origin 2010 | © Origin Business Engineering B.V. 19
    • Social Issues: The Environment » Brazil is a world leader in renewable energy, namely hydroelectricity and  ethanol. Nonetheless, rapid urbanization has contributed to high levels of  pollution in major cities.   » The Amazon forest and Brazil’s temperate forests are under threat from  the expansion of forestry, farming and mining.  » Over the last 30 years of the 20th century one seventh of the Amazon’s  forested area was lost.  » The rate of deforestation has declined in Brazil in recent years. Origin 2010 | © Origin Business Engineering B.V. 20
    • Social Issues: Labor Unions » The power of Labor Unions has declined with economic liberalization and  deregulation.   » They maintain influence in the government and resist labor reform.  Businesses argue that Brazil’s employment protection hampers employment  creation.  » The two main organizations : Central Única dos Trabalhadores (CUT) and  Força Sindical.  » The Movimento dos Sem Terra for short (MST, the Landless Workers’  Movement) has emerged as a new political force.  It has close ties with the PT, but has criticized Lula’s government for its slow push  in land reform. » Businesses have a relatively powerful voice in politics.  » Business organizations have worked alongside the PT government on  reducing tax and administrative procedures.  » They have objected to the government’s tight monetary policy and called for  a reduction in the corporate tax. Origin 2010 | © Origin Business Engineering B.V. 21
    • Social Issues: Education » Until the 20th century, Brazil was an underdeveloped nation with economic activity based on the  primary sector, possessing an unskilled workforce.  » With post‐war expansion, government focused on strengthening Brazil's University, while neglecting   primary and secondary education. » Today, Brazil struggles to improve public education.  » Despite its shortcomings, Brazil has progressed substantially in the last two decades.  » School enrollment for children (7‐14) rose from 80.9% in 1980 to 96.4% in 2000.  » In the same time period, 15‐17 age enrollment rose from 49.7% to 83%. Literacy rates went up from 75%  to 86.4%. » As of 2002: Literacy rates for people aged 15 or older is 88.2% 6.2 years of formal education, on average. (Compare with 12 years in the U.S., 11 in South Korea and 8 in  Argentina)  8.4 years for white people, 6.1 years for black people  » As of 2006: The nation invests 4.3% of GDP on Education ‐ the federal government aims to increase gradually this  number to 7%.  Origin 2010 | © Origin Business Engineering B.V. 22
    • Technology: Transportation » Brazil’s transportation infrastructure is below the curve:  Only 12.5% of existing roads are paved.   Even though roads are the most common means of transportation. Rail or waterway transportation is underdeveloped, even though it is  significantly cheaper.   Airline deregulations have brought price reductions in Air Cargo and  now more than 150 cities have direct access; it is still comparatively  expensive. Origin 2010 | © Origin Business Engineering B.V. 23
    • Technology: Communication and Energy » Privatizations in the 1990s attracted major private investment into  telecommunications sector; » Mobile‐phone penetration overtook fixed lines in 2003; » Since 1975 Brazil has used multiple sources of fuel for its transportation:  petroleum, ethanol, and liquid gas; » Diversification was a result of high petroleum prices, and it is unique in  the region; » The share of gas in the energy grid has increased to over 9%.  Lula’s government has tried to reduce dependency on Bolivia’s gas and has  announced plans to set up at least two plants in Brazil. Origin 2010 | © Origin Business Engineering B.V. 24
    • Doing Business in Brazil » Opening a new corporation in Brazil takes 18 different procedures and last 152 days  on average; » In the Doing Business Report 2008, which appraises 182 different countries, Brazil  ranked 172 in ease of opening a new company; India was 181 » Environmental licensing: No predictability to when the environmental license will be  issued, or what the cost of environmental compensation will be; » Brazil is one of the few countries in the world that taxes investment.  Historic figures ‐ starting a business 2006 2007 2008 Macroeconomic stability [rank worldwide] 122 122 Procedures [number] 17 17 18 Duration [days] 152 152 152 Cost [% GNI per capita] 10.1 9.9 10.4 Paid in Min. Capital [% GNI per capita] 0 0 0 Origin 2010 | © Origin Business Engineering B.V. 25
    • Brazil’s competitiveness Assessed by the GCI 2008–2009 Pillar Rank Macroeconomic stability  122 Goods market efficiency 101 Labor market efficiency  91 Institutions 91 Health and primary education  79 Infrastructure 78 Financial market sophistication  64 Higher education and training  58 Technological readiness  56 Innovation 43 Business sophistication  35 Origin Market size  10 2010 | © Origin Business Engineering B.V. 26
    • Starting a business in Brazil - Summary This table summarizes the procedures and costs associated with setting up a business in Brazil No Procedure Time to complete Cost to complete 1 Check company name with State Commercial  1 day (1 hour) R$ 9 Registry Office 2 Pay registration fees 1 day See following  procedures 3 Register with Commercial Board of the state  1 day R$59.06 registration +  where the main office is located. Obtain ID  $100 expediting fee) number ‐ NIRE 4 Register for federal and state tax (Secretaria da About 1 month  No charge Receita Federal do Ministerio da Fazenda – (including inspection  SRF/MF), obtain the CNP J number, which also  visit) registers employees with the National Institute of  Social Security (Instituto Nacional da Seguridade Social – INSS) Origin 2010 | © Origin Business Engineering B.V. 27
    • Starting a Business in Brazil - Summary No Procedure Time to complete Cost to complete 5 Confirm INSS enrollment 1 day simultaneous  No charge with previous  enrollment 6 Receive state tax inspection 1 day (sim with  No charge previous procedure) 7 Get the authorization to print receipts/invoices  5 days No charge from Secretaria da Fazenda Estadual 8 Register with the Municipal Taxpayers’ Registry  5 days No charge (Secretaria de Financas e Desenvolvimento Economico) of the City of Sao Paulo 9 Pay TFE to the Municipal Taxpayers’ Registry 1 day (sim with  R$ 300 (may vary for  procedure 5 type of company) 10 Get authorisation to print receipts/invoices from  1 day No charge the Secretaria de Financas e Desenvolvimento Economico 11 Order receipts/invoices (notas fiscais) with CNPJ  3 days R$ 600 numbers from authorized printing companies Origin 2010 | © Origin Business Engineering B.V. 28
    • Starting a Business in Brazil - Summary No Procedure Time to complete Cost to complete 12 Obtain Fire Brigade Licence from state Procedure 11‐13 take  No charge 120 days 13 Inspection from fire brigade Included in previous No charge 14 Apply with the Municipality for an operations  Included in previous No charge permit (alvara de Funcionamento) 15 Register the employees in the social integration 1 day, sim with proc 13 No charge program (Programa de Integracao Social, PIS) 16 Open a FGTS (special fund for unemployment)  1 day sim with proc 13 No charge account in bank 17 Notify the Ministry of Labor (“Cadastro Geral de  1 day sim with proc 13 No charge empregados e desempregados” – CEGED) 18 Registration with the Patronal Union and with  5 days, sim with proc  Annual fee to be paid  Employees Union 13 depending on Union Origin 2010 | © Origin Business Engineering B.V. 29
    • Doing Business in Brazil: Establishing a Legal Entity » Foreign investors may organize as a Corporation, a limited liability company   or other kinds of companies provided by the Civil Code.  A Corporation must deposit 10% of its capital in a bank. It must allocate 5% of  its annual profits to a legal reserve until the reserve reaches 20% of the capital  stock.  The directors must be Brazilian residents and the shareholders, if they are not  residents, must have legal representatives in Brazil.  Origin 2010 | © Origin Business Engineering B.V. 30
    • Doing Business in Brazil: Corporate Law » Other regulations: Bank Accounts: Brazilian resident companies and individuals are not allowed  to maintain Brazilian bank accounts denominated in a foreign currency.  They may maintain these accounts in banks abroad if the funds are declared  on the individual’s income tax return.  Origin 2010 | © Origin Business Engineering B.V. 31
    • Foreign Investments » Investments: There are no restriction regarding investments. The  repatriation of share capital is not restricted if the investor registers the  investment with the Brazilian Central Bank (BACEN).  » A foreign investor’s capital gain on a sale to a local resident is the excess of  the sale price over the foreign capital registered at BACEN.  » Repatriated funds in excess of the amount of foreign capital registered  with the BACEN are subject to the 15% withholding tax.  » The Brazilian Central Bank registers all investments.  The registration process of foreign investments, whether in the form of capital  or loan, is relatively simple and straightforward.  The main advantage of securing registration of the foreign investment is to  acquire the right to remit dividends abroad, as well as to repatriate the FRC.  Origin 2010 | © Origin Business Engineering B.V. 32
    • Funding and Profits » FIRCE (Foreign Capital Control and Registration) – a department of the  BACEN ‐ is responsible for the registration of foreign capital. The following  transactions are subject to registration: Direct investments; Loans in cash or in assets; Repatriation of capital and remittances of profits or capital gains abroad; Remittances abroad of loan interest and repayments of loan principal; Royalties and technical assistance contracts; Any operation involving transfers of earnings abroad; Reinvestment of profits; Origin 2010 | © Origin Business Engineering B.V. 33
    • Competitiveness: Taxes » Municipal, State and Federal Government collect taxes, and have no  hierarchy.  Municipalities, States and the Federal Government will battle for the right to  tax transactions. » Brazil’s tax structure affects its competitiveness.  » The average ratio of investment to GDP in Brazil has been even lower than  previously estimated (16.4% in 2000‐06 against 17‐19%).  » Other factors contributing to the high business costs, known as “Custo Brasil”, are a burdensome tax regime, restrictive labor laws, a costly and  slow judicial system. Origin 2010 | © Origin Business Engineering B.V. 34
    • Public organizations dealing with private investments in Brazil The Brazilian Agency for the Promotion of Exports and Investment The Brazilian Chamber of External Commerce (CAMEX) belongs to the (APEX) was created in1997 and operated as a special department of structure of the Government Council. It is in charge of the the Brazilian Support Service to Micro and Small Enterprises (SEBRAE ) formulation, adoption, implementation, and coordination of policies until 2003, when it was renamed APEXBrasil and began to act as an and activities related to external trade of goods and services, autonomous agency working in association with the Ministry of including tourism. Among its functions are the coordination of the Development, Industry and Foreign Trade. Under its new status, organizations related to external trade; the regulation of certification APEX‐Brasil took on the role of coordinating and implementing trade of companies for the practice of external trade; the classification of promotion policies endorsed by the federal government. Its main products and rules of origin of goods; the formulation of directives on function is promoting the insertion of national companies into the tariffs; and directives for bilateral and multilateral negotiations, for world market, diversifying and raising exports, consolidating existing bad practices in external trade, and for export financing. markets, and opening up new ones. The Brazilian Agency for Industrial Development (ABDI), created in The Secretariat of the Federal Revenues (SRF), subordinate to the 2004, operated as part of the Ministry of Development with the Ministry of Finance, is responsible for administering federal taxes. At mission of promoting the implementation of the Ministry’s industrial the same time, it assists the executive branch of the government in policy, in accordance with external trade and science and technology formulating Brazilian tax policy and is responsible for preventing and policies. combating tax evasion, contraband, smuggling, counterfeiting, and trade fraud, along with other international trade‐related illicit acts. The SRF is also in charge of managing and executing customs The Brazilian Development Bank (BNDES) was established with the administration, inspection, and control. goal of supporting projects that contribute to the development of the country. Since its creation in 1952, the Bank has financed important public and private works in industry, agriculture, public transport, and The Secretariat of Agriculture Defense (SDAA), part of the Ministry of infrastructure. It also contributes Agriculture, coordinates the country’s system of agricultural defense, to the strengthening of the capital structure of private companies and including its international agricultural surveillance program. the development of financial markets. Origin 2010 | © Origin Business Engineering B.V. 35
    • Public organizations dealing with private investments in Brazil (2) The Ministry of Development, Industry and External Trade (MDIC) is The Administrative Council of Economic Defense (CADE) is the responsible for different aspects of industry, trade, and services antitrust agency within the Ministry of Justice. It has the role of promotion such as intellectual property and technology transfer, orienting, auditing, and investigating, as well as preventing abusive measures, norms and industrial quality, as well as external trade behavior by a firm dominating a market and anti‐competitive policies. MDIC also takes care of regulating external trade and practices that tend to lead to such a dominant position. implementing programs and safeguard mechanisms in the area, participating in international negotiations, and supporting small and medium enterprises and activities of the registry of commerce. This is done through the Secretariats of External Trade, Industrial The Brazilian Institute of Environment and Renewable Resources Development, Commerce and Services and Industrial Technology. (IBAMA), a federal agency that is within the Ministry of Environment, is responsible for implementing the national environment policy, including the control and investigation of the use of natural resources INPI, discussed above, is responsible for the registry of brands, patents, and the licensing for investment that might have an environment and contracts of technology transfers and company franchising, as well impact. as the registry of software, industrial design, and geographic indications. There are other regulatory agencies for specific sectors— such as The National Institute of Metrology, Normalization and Industrial ANATEL for telecommunications, ANA Quality (INMETRO) acts as the Executive Secretariat of the National for water and sanitation, ANEEL for utilities, ANP for oil and gas, ANTT Council of Metrology, Normalization and Industrial Quality, and is for road and train transports, and ANVISA for sanitary surveillance. responsible for enforcing the technical and legal rules related to measurement of industrial processes. It is also in charge of harmonizing measurements with international patterns and of accreditation activities for laboratories of calibration and organizations of certification, inspection, and training necessary for the development of the infrastructure of technological services in the Origin country. 2010 | © Origin Business Engineering B.V. 36
    • III Chapter 3 – Macroeconomic Situation Origin 2010 | © Origin Business Engineering B.V. 37
    • Brazil key indicators Population (millions), 2008........................................................................... 194.2 GDP (US$ billions), 2007............................................................................... 1,313.6 GDP (PPP) per capita (int'l $), 2007.............................................................. 9,703.2 GDP (PPP) as share (%) of world total, 2007................................................ 2.8 Current account balance (% GDP), 2007 ..................................................... 0.1 Foreign reserves (months of imports), 2008 ............................................... 10.6 Unemployment (% labor force), 2008 ......................................................... 7.9 Human Development Index, 2006................................................................ 0.81 Origin 2010 | © Origin Business Engineering B.V. 38
    • Global Competitiveness Index Origin 2010 | © Origin Business Engineering B.V. 39
    • The most problematic factors for doing business Origin 2010 | © Origin Business Engineering B.V. 40
    • Brazil's current performance is poor against competitiveness indexes Brazil's rank (out of total) Relative  Institution Index 2005 2006 2007 2008 performance World Economic Forum Global Competitiveness Index 65 (117) 66 (122) 72 (131) 64 (134) ‐ IMD Quality of Life Index 39 (111) n/a n/a n/a = Overall Competitiveness  World Bank Ranking 42 (51) 44 (53) 49 (55) 43 (55) ‐ Economist Intelligence  Unit Ease of Doing Business Index n/a n/a 122 (178) 125 (181) ‐ Heritage Index of Economic Freedom 63 (155) 69 (157) 97 (157) 97 (157) ‐ Transparency  International Corruption Perception Index 62 (158) 70 (163) 72 (179) 80 (180) = United Nations  Development  Human Development Index 70 (177)  n/a n/a n/a = Programme Worldwide Centers of  Mastercard Commerce Index n/a n/a 48 (63) 56 (75) ‐ Source: World Economic Forum; World Bank; Economist Intelligence Unit; IMD; Heritage Foundation, Transparency International; United  Nations Development Programme; Mastercard; Organisation for Economic Co‐operation and Development; McKinsey analysis. There is a + sign if the most recent ranking is in the top 20 percent, = if it is between 20 percent and 45 percent, and – if it is below 45  percent (Brazil ranks in the 45th percentile in GDP per capita among countries in the GCI 2008–2009). Origin 2010 | © Origin Business Engineering B.V. 41
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