Friday, May 29, 2009

Carnaval


Carnaval is a celebration that unifies, easily crossing racial, social and political barriers. The annual spectacle is one of the most profound symbols of Brazil. The celebration marks the beginning of Lent, the Roman Catholic period of abstinence leading up to Easter Sunday.

Throughout Brazil the Carnaval celebration has taken on many different forms. In Rio de Janeiro and São Paulo samba schools from dozens of neighborhoods compete with lavish spectacles based on the year's theme. Each school involves thousands of performers and behind-the-scenes supporters, and as such each school serves as an important center of activity and pride for its community. Enormous floats, huge drum , swirling baianas and, of course, electrifying samba mark each school's performance.


Similarly, in Bahia, Brazil, Carnaval is a massive celebration in the streets. Samba, samba reggae and other musical styles pour from the trio-electrico
(the truck-based stages which are lined with deafening banks of speakers).

Renewable Energy


Brazil has made great strides in running its economy on renewable energy. Renewable energy represents 46 percent of Brazil’s total annual energy supply. By comparison, renewable energy accounts for only seven percent of the U.S. annual supply. The largest source of renewable energy in Brazil is ethanol, accounting for over one-third of Brazil’s renewable energy.

In addition, 90 percent of Brazil’s electricity comes from renewable sources, predominantly hydroelectricity. By comparison, only nine percent of the U.S. electricity supply is from renewable sources. About half of our electricity is generated from coal.

Due in part to its ethanol program, Brazil became net energy independent in 2006 after many years of energy dependence. Cane ethanol sells for half the price of fossil fuel gasoline, giving drivers ample incentive to fuel up with the domestically produced cane ethanol.


Tourism


For a long time now, Brazil’s natural beauty and Carnival rendered it international fame, attracting thousands of tourists all year long. But there is a very special attraction that you only discover when you go there: the Brazilian people. Much beyond the breathtaking scenery, the way these people live surprises everyone with its simplicity, willingness, hope, hospitality and happiness.

Studies carried out by Embratur’s (Brazilian Tourism Institute) indicate that 75% of the tourists who seek Brazil as their vacation destination do so first of all because of the natural beauty. But once they arrive there, they find such hospitality that they soon become enchanted with the mixture of colors, races and cultures of the people as well.
According to surveys, when foreign tourists are questioned about Brazil, they indicate happiness as the main characteristic of the people. Happiness that can be perceived in every moment they stay in the country – whether in the music, the warmth of northeastern beaches, the lively Rio de Janeiro nightlife or the exuberant Amazon.

Imports and Exports

Brazil exported US$26.4 billion worth of merchandise to the U.S. in 2006, up 8% from 2005 and up 67% in just 4 years. Brazilian imports from the U.S. rose 25% to $19.2 billion in 2006, up 55% since 2002.

Top ten Brazilian Exports to U.S.

  1. Crude oil … US$2.8 billion
  2. Steelmaking materials … $1.45 billion
  3. Semi-finished iron & steel products … $1.38 billion
  4. Industrial organic chemicals … $1.16 billion
  5. Fully built civilian aircraft … $1.16 billion
  6. Engines & engine parts … $1.07 billion
  7. Footwear … $902.7 million
  8. Finishing materials (e.g. shingles, wallboard) … $859.8 million
  9. Fuel oil … $670.5 million
  10. Stone, sand, cement & lime … $665.8 million

Top ten Brazilian Imports from U.S.

  1. Computer accessories, peripherals and parts … US$1.7 billion
  2. Civilian aircraft parts … $1.19 billion
  3. Civilian aircraft engines … $1.18 billion
  4. Organic chemicals …. $1.14 billion
  5. Fully built civilian aircraft … $1.06 billion
  6. Oil field drilling equipment … $894.5 million
  7. Plastics … $757.7 million
  8. Semi-conductors … $693.6 million
  9. Chemical fertilizers … $571.3 million
  10. Pharmaceutical preparations … $566.2 million

Friday, May 15, 2009

Regulatory Environment

The Brazilian Government is committed to protecting human rights; the first National Plan for Human Rights was unveiled in 1996. Principle human rights concerns include police violence and impunity, poor prison conditions, access to legal advice, violence and discrimination against indigenous communities and landless people, human trafficking, major deficiencies in the realization of children’s rights, tortures, working conditions, and corruption with relative impunity for those involved.


Voting is mandatory for all literate citizens ages 18-70. Voting is optional for illiterate citizens and for citizens ages 16-17 and over 70.

The labour market is characterized by well-developed regulations and Brazil has a system of labour courts where routine cases such as unfair dismissal, working conditions, salary disputes and other grievances are resolved, yet the labour market has a high rate of informal sector employment. As much as 40% of all workers are not formally registered, pay no income tax, and do not enjoy full protection under the labour code.

The overall freedom to start, operate, and close a business is limited by Brazil's regulatory environment. Starting a business takes about four times the world average of 38 days, and obtaining a business license takes more than the global average of 225 days. Closing a business is difficult.

Companies operating in Brazil have to deal with a wide range of regulatory agencies due to the federal structure of the political system. Public officials enjoy broad discretionary authority and the central government has historically exercised considerable control over private companies by upholding extensive and frequently changing regulations. According to a 2008 CMI report, the majority of responding companies found entry into Brazilian markets difficult and expensive, but promising if things were done right.



Brazil's top income tax rate is 27.5 percent. The standard corporate tax rate is 15 percent, but a surtax of 10 percent and a 9 percent social contribution on net profit paid by most industries bring the effective rate to 34 percent. In December 2007, the legislature vetoed a bill that would have renewed the financial transactions tax. In the most recent year, overall tax revenue as a percentage of GDP was 38.8 percent.

Tax regulations are mentioned as the single most problematic factor for doing business in Brazil, followed by inadequate supply of infrastructure and tax rates. Corruption is also ranked as a significant obstacle for doing business. The World Bank & IFC Enterprise Survey 2003 reveals that senior managers spend 7% of their time dealing with government regulations and that only 34% of companies agree that public officials interpret regulations consistently and predictably.


Legal Environment



Laws are issued by the federal government, the states and municipalities within their respective spheres of authority. The Brazilian legal system is of Roman tradition and all laws destined to regulate and discipline all kinds of situations must have been previously written and made public.

The head of the Brazilian legal system is the Federal Constitution. In its 250 articles one will find the citizens' fundamental rights and guarantees, the political and administrative organization of the Federal Republic of Brazil, the individual spheres of authority of the Executive, Legislative and Judicial branches, the outlines of the Brazilian tax system and the fundamental labor rights, among other matters.

Besides the Federal Constitution, the main legal documents in Brazil are the Codes. The most important are the Civil Code, the Tax Code, the Penal Code and the Civil Procedure Code. The Civil Code comprises over 2000 articles regulating matters such as Obligations and Contracts, Businesses and Corporations, Real Estate and related property rights, and many others. The Tax Code defines the main Brazilian tax regulations, which are complemented by many Federal, State and Municipal laws. The Penal Code brings the definitions of conducts considered crimes and the punishments for anyone fitting the respective legal descriptions. Finally, the Civil Procedure Code regulates the due process of law.

Political Environment



Brazil is struggling with an image of corruption that is aggravated by frequent scandals involving high-level politicians and bureaucrats. Lula da Silva was elected in 2002 based largely on a campaign platform emphasizing social programmes and change in a political culture that many viewed as corrupt and favoring vested interests. However, political scandals concerning money laundering and manipulation of large government contracts have continued to surface, discouragement public trust in the political system. President Lula da Silva himself has struggled to keep clear of several corruption scandals, while there have been investigations and convictions of some of his closest political allies.


High levels of political corruption are cited as a driving force behind growing public distrust towards the political system, which is aggravated by poor public services and the fact that economic inequality in Brazil remains pervasive despite high taxes and relatively strong economic growth. It is reported that graft limits the government's ability to address pressing issues, such as crime, lawlessness, poverty and urban sprawl, and that corruption may therefore play a central role in triggering social unrest among the poor majority of Brazilians. Some observers point to the fact that corruption scandals have stalled the President's efforts to push through important legislation and key reforms. Despite Lula da Silva's anti-corruption campaign, the current Congress is described by some observers as one of the most corrupt in the history of Brazil.

Thursday, May 7, 2009

Business Environment


Brazilian organizational cultures can, in general, be traditionally seen as closed systems in which leaders with strong personalities, rigid values, paternalistic patterns and highly centralized hierarchical structures prevail. The main cultural consequences of these organizational traits are the improvised style of doing things (lack of planning) which leads to the famous Brazilian "jeitinho," an expression that is difficult to translate but essentially says "Well, there is no way to reach the goal, but in a certain way (with the help of God), we will achieve it anyway".

Social & Cultural Environments


People: Very passionate and emotional.

National Passion: Soccer, in Brazil, is more than two teams of 11 players attempt to put an inflated ball into goal cages at opposite ends of a playing field. Soccer is a childhood tradition, starting as soon as a boy can walk, and continuing throughout childhood and adolescence in the streets and fields of every city and village. The greatest soccer players have been Brazilian, the largest stadium is in Rio de Janeiro and the Brazilian fans are the most fanatical.

Language: Portuguese, one of the world's major languages, ranked 6th according to number of native speakers (between 191 and 230 million).

Values: Brazilians tend to place importance on family and kinship relations. They have a genuine, strong bond with their parents and their children, and they cultivate their relationships with their aunts, uncles, cousins, and other relatives.

Religion: Christianity is the major religion with over 70 percent declaring
themselves as Roman Catholics.

Music: It is full of passion, sentiment, and joy. Samba and
Bossa Nova are the most popular and best known worldwide.