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back to index backLATINtalk January,  2006


Brazil Is no Friend of Business

Doing business in Brazil is not easy at all due to all the red tape involved in opening and even closing a business. Brazil appears in 53rd place in a list of more than 100 countries.

Chile ranks as the most business friendly country in Latin America particularly regarding protecting investors.

The latest World Bank index on the "ease of doing business" shows Chile in position 36, -one down from the previous-, out of 155 countries with New Zealand, Singapore, Canada and United States top of the list.

However Chile is ahead of all other Latin American countries, with Argentina ranking 51, Brazil 53, Uruguay 76 and Mexico 125.

The ranking takes into account several basic indicators when starting a business: ease of doing business; hiring and firing; enforcing contracts; getting credit; closing a business; registering property; investment protection; trading across borders and dealing with licenses.

Other factors include political and economic stability, size of markets, predictable laws for investors, legal framework, and available infrastructure with bureaucracy figuring as one of the main obstacles, underlines the World Bank.

Because of this, in some countries such as Brazil, 152 days are needed and 17 steps to open a new business compared to ten steps and 53 days on average in other developing countries and 7 steps and 28 days in members from the Organization for Cooperation and Economic Development.

Source: Brazzil Magazine - GAI
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