Read more about the article Does the Brazilian policy for oil revenues distribution foster investment in human capital?

Does the Brazilian policy for oil revenues distribution foster investment in human capital?

This paper assesses the effect of oil revenues on health and education indicators (measures for human capital) in the Brazilian municipalities using exogenous oil price variations. The Oil Law of 1997, apart from to hugely increase the amount of oil revenues distributed to the eligible municipalities due to the withdraw of the internal control price system, broadened its possible uses by the eligible municipalities, including investments in health and education in addition to traditional investments in infrastructure. Since Brazil has decentralized primary education and primary health care provision to the municipalities, we use the oil price as an external intervention in local economies to identify the effect of the non-renewed natural resources in promoting sustainable growth. We also explore the high inequality in oil revenues distribution among municipalities. Similar to the previous literature, our results point to a small improvement of the human capital indicators in the long run. The contribution of the largest oil revenue recipients, however, is null for these indicators.

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Read more about the article Brazil’s Biggest Economic Risk Is Complacency
PRISCILA ZAMBOTTO

Brazil’s Biggest Economic Risk Is Complacency

This year can be a decisive one for Brazil’s transition to a more robust and sustainable growth path – but only if the government commits to fiscal and structural reform. If Brazil’s leaders fail to take this opportunity to lay the foundations for long-term prosperity, it may not be long before the economy stalls again.

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Read more about the article Trying to make sense of Mr. Trump’s tweet on Brazil and Argentina

Trying to make sense of Mr. Trump’s tweet on Brazil and Argentina

In our view, while clarification and formalization of measures do not come, I have to agree with a former colleague on the IMF Executive Board of Directors, the Argentine Hector Torres, who in a comment Monday on LinkedIn noted: “President Trump believes that governments of Brazil and Argentina are manufacturing currency devaluations to damage US farmers… and respond by raising tariffs on imports of steel and aluminum… the premise is wrong and the reaction folly! ”. Not without first contributing to the uncertainty that, as we have observed, has already negatively impacted the global economy.

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Read more about the article Brazil must hold to structural reforms while undergoing slow economic recovery

Brazil must hold to structural reforms while undergoing slow economic recovery

Brazil's economic recovery after the deep 2015-16 recession has been the slowest on record, with GDP per capita last year remaining more than 9% below its pre-crisis peak. The IMF's annual report on the country's economy, released two weeks ago, estimated current GDP to be nearly 4% below its potential level, which suggests insufficiency of aggregate demand. On the other hand, as the slow recovery reflects structural factors, it is necessary to avoid the use of measures to reinforce such demand that might run against the confrontation of such problems.

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Read more about the article Brazil’s ‘Tropical Trump’ Needs to Build the Wall — Around the Country’s Finances

Brazil’s ‘Tropical Trump’ Needs to Build the Wall — Around the Country’s Finances

  GLOBAL ATLANTA JANUARY 24, 2019 | TREVOR WILLIAMS (Photo) Otaviano Canuto dialogues with CNN Espanols Gabriela Frias during a World Affairs Council of Atlanta event Wednesday night. Brazil’s new president has…

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Read more about the article Is It Finally Getting Easier to Do Business in Brazil?
In the photo, consumer movement in Mercadao in Sao Paulo on 6 September 2018. The IPCA (National Broad Consumer Price Index) fell 0.09% in August, the IBGE said on on 6 September 2018. It was the lowest rate for the month since 1998, when the indicator showed a fall of 0.51%. Despite the deflation in August, the index advanced by 2.85%, above the 1.62% registered in the same period in 2017. For the 12-month period, the IPCA is up 4.19%. The food sector presents the second consecutive month of deflation. Of the items consumed by the family, the sharpest decline in August came from onions, with a drop of 22.9%, followed by English potatoes, down 11.89%. (Photo by Cris Faga/NurPhoto)

Is It Finally Getting Easier to Do Business in Brazil?

Recent reforms have helped improve Brazil's business environment. Further changes could do away with the "Brazil cost" once and for all.

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