Even with the advance of four positions in global ranking of competitiveness, Brazil continues among the last places. This year, the country appears in 58th position among 69 nations evaluated by the Institute for Management Development (IMD), in partnership with the Dom Cabral Foundation (FDC).
The survey shows that the improvement was driven by conjunctural factors, such as increased foreign direct investment and job creation, but that Brazil is still far from structural reforms that support its long -term development.
“Going up the ranking is good news, but from a structural point of view, there is nothing to celebrate. Brazil still needs to face deep challenges to be real competitive,” said Hugo Tadeu, director of the FDC Innovation, Artificial Intelligence and Digital Technologies, during a news conference on Monday.
The ranking evaluates four main pillars: economic performance, government efficiency, business efficiency and infrastructure.
Brazil had its best performance in the Pillar of Economic Performance (30th place), driven by indicators such as Foreign Direct Investment Flow (5th), Long -Term Employment Growth (7th), Eplorer Activity (8th) and Participation in Renewable Energy (5th).
On the other hand, it follows among the last places in essential areas for global competitiveness, such as Basic Education (69th), linguistic skills (69th), labor force productivity (67th), qualified labor (68th) and capital cost (69th).
“Brazil is growing with the support of traditional sectors, such as agribusiness and mining, but it lacks quality in this growth. Without qualified workforce, technology and innovation, we will not support this breakthrough in the long run,” said Tadeu.
The four -position jump is considered positive but fragile.
“There has been an improvement in conjunctural indicators, such as per capita income, gross capital formation and industrial investment. But they are short -term movements that do not guarantee continuity. Competitiveness is built with long -term public policies, not emergency measures.”
According to him, countries that lead the ranking, such as Switzerland (1st), Singapore (2nd), Denmark (4th) and Taiwan (6th), share characteristics such as commercial opening, regulatory stability, excellence education system and knowledge transfer strategies between universities and the productive sector.
“These countries have a vision of the future. Brazil, on the other hand, continues to react to circumstances with fragmented measures. If we do not face our structural bottlenecks, such as the cost of capital and low qualification, we will remain trapped in what the economy calls chicken flight,” he said.
Mismatch
Tadeu points out that Brazil is against the main competitive economies by raising taxes. IOF’s recent rise and the increase in tax burden, he said, make the business environment more hostile and remove investments.
“We are suffocating the productive sector. Taxes increase the cost of money and the private capital is scrutinized. We are against the world,” he said.
He also warned of the growing use of subsidies as an economic tool. Although Brazil has advanced in this indicator, the result does not necessarily represent structural improvement.
“Providing resources to specific sectors can mean less resources for other important areas. These incentives need to be linked to a long -term national strategy,” he added.
Possible Paths
To start reversing the scenario, Tadeu argues that reducing the cost of capital must be a priority. This involves simplifying the tax system, ensuring a more stable regulatory environment and providing predictability to investors.
He also emphasizes the need to invest in the qualification of labor, especially in medium enterprises, and to prepare leaders to deal with digital transformation. “The world already surfs technological waves, and Brazil needs to train professionals who can keep up with this pace.”
Despite the obstacles, the report recognizes that the country has important actives, such as the clean energy matrix, the ability to attract foreign capital and resilient sectors such as agribusiness and services.
However, Tadeu stresses that it is necessary to go further: “Brazil has potential, but it needs to stop being just a promise. Sustainable growth requires strategy, education and innovation.”
