Posted by: changholt | October 4, 2012

Brazil’s biggest challenges ….

Brazil’s biggest challenges.… Infrastructure and Regulations

Brazil is one of the more impressive economies in the world and has unlimited potential, but also one of the more challenging to work in. A lot of these challenges can be traced back to their own government.  The question is what will they do, help or hurt the economy?

Each and every week you read new articles about it and his fellow BRIC countries (Brazil, Russia, India and China). As opposed to the more established economies in Europe, United States, and Japan where there is limited to no growth, Brazil offers great growth opportunities. However, its government regulation and infrastructure might be one of its greatest challenges.

For the amount of taxes, regulations, and import duties that the Brazilian government places on domestic and international businesses, one would think that these governmental revenues would be used for social projects and infrastructure socket may maintain its continued growth. Unfortunately, Brazil’s infrastructure be it the roadways and traffic congestion in all the major cities; and the airports and their inability to accommodate more flights.

We all hope that the Brazilian government makes it easier for companies to do business, what the same time accelerating infrastructure development. In the not too distant future Brazil will be the center of the universe with the 2014 World Cup and the 2016 Olympics. I just hope the infrastructure will be there so they can catch lighting in a bottle. Unfortunately, I haven’t seen the development that one would expect from Brazil (the host of the World Cup and Olympics) and the amount of time they’ll need to build the appropriate infrastructure. Which in the end will mean they will have to expedite the projects  — costing millions more than they should or building less than ideal infrastructure for Brazil’s long term growth.

We at HSI believe in Brazil and are excited about its future. These challenges can be overcome and I hope Brazil’s government is willing to make the hard decision and soon.

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