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Brazilian barriers

Brazilian barriers

The prevailing attitude of this government is to impose barriers. In contrast to openness, transparency and a competitive posture.

Three of them have significantly "soured" the international perception of Brazil: Environmental, Sanitary and Economic-Financial.

The devastation of the Amazon and the Pantanal, the statistics of contamination and deaths due to COVID-19 and the interference with the populist style in companies controlled by the Brazilian State has put the country against international investors and positive expectations about our economy.

In international news portals, comparisons of Brazil with dictatorships and the horrible results they have produced for their populations are appearing with increasing frequency.

The energy sector has great potential for losses in this sad scenario. The prevailing expectation of analysts is that state-controlled companies (oil & gas and electricity) will be used ostensibly to benefit the official candidate through price controls (for the 2022 election).

Of course, everyone knows what results from this intervention. Not using complex theories, but from actual experiences lived in the not too distant past, right here in Brazil.

Rafael Herzberg's picture

Thank Rafael for the Post!

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Tariq Siddiqui's picture
Tariq Siddiqui on Feb 23, 2021

Thanks Rafael.
Barriers are death knell for business development. I can understand certain level of barriers, like Joan's act in US wind industry. There is, however an optimum point, beyond which they start hurting the host country as well as international contractors and investors. 

Rafael Herzberg's picture
Rafael Herzberg on Feb 24, 2021


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