In an article on Business and Bureaucracy, The Economist notes the roadblocks that corruption puts in the way of innovation and entrepreneurial ventures. “In Mexico, the proliferation of trámites, as pettifogging rules and paperwork are collectively known, has spawned a breed of middlemen called tramitadores, who deal with greasy-palmed bureaucrats on behalf of harassed businesspeople.Continue reading “Business and Bureaucracy”
Taxes. Brazilian entrepreneurs have to work 2,600 hours per year to handle paperwork for all their taxes,the highest figure among 183 countries surveyed by the IFC and the World Bank, in the Doing Business study.By comparison, the global average is 282 hours, and the Latin American and Caribbean average, 385 hours. Source: Bradesco Corretora
Heavy taxes and a lot of bureaucracy. Those are the thoughts that came to my mind when I saw the latest FGV estimate; Brazil’s informal economy is R$578bn, or the equivalent to Argentina’s total GDP. The good news is that although sizeable, the statistic reveals a more formalized economy than in 2003, when 23% of GDP was estimated to be informal.