Regulatory Reform in Brazil

Removing unnecessary barriers to competition through targeted reforms can foster productivity and economic growth. This Regulatory Reform Review of Brazil analyses sectors that create barriers to competition, such as regulations that create obstacles to the entry of firms, inhibit the entry of firms, or restrict activities in professional and network sectors. In a complementary way, the review also identifies government efforts to develop policies and tools to improve the quality of regulations, such as ex ante assessment of draft regulations, stakeholder engagement in rule making, and administrative simplification. High-quality regulations can stimulate productivity by encouraging the efficient allocation of resources and promoting innovation. In turn, these measures can reduce prices for consumers, stimulate the creation of jobs, and help improve living standards. The review identifies areas for reform to bring the country’s regulations and institutional arrangements more in line with international best practices. It demonstrates how a proportional, clear, and efficient regulatory framework can drive improvements in Brazil’s economic performance and the welfare of its citizens.

Published on June 21, 2022Also available in: Portuguese

In series:OECD Reviews of Regulatory Reformview more titles

TABLE OF CONTENTS

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Foreword

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Abbreviations and acronyms

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Executive summary

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Product Market Regulation in Brazil1 chapter available

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Product Market Regulation in Brazil: An international comparison

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Regulatory Policy and governance in Brazil5 chapters available

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Assessment and recommendations to enhance regulatory policy in Brazil	Read PDF
Policies and institutions for regulatory governance in Brazil	Read PDF
Ex ante assessment of regulation and stakeholder engagement in rulemaking in Brazil	Read PDF
Revision of the regulatory stock in Brazil	Read PDF
Regulatory policy at sub-national level in Brazil	Read PDF

Case studies on regulatory reform in Brazil2 chapters available

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Case study on natural gas	Read PDF
Case study on public sanitation	Read PDF

Key messages

Recent reforms have addressed some of the barriers to the entry and expansion of firms, in particular foreign ones. To bridge the gap with OECD countries, Brazil could take steps to reduce tariff and non-tariff barriers and to further automatise and streamline trade formalities.
Brazil’s regulatory framework in the area of retail trade is more competition-friendly than in many OECD economies. In contrast, the provision of services by accountants, architects, engineers, lawyers, notaries, and estate agents is still subject to a range of regulatory constraints that limit competition and risk hampering innovation and productivity.
Brazil has made strides in the adoption and implementation of better regulation practices and tools, particularly by the federal administration. Establishing a complete and comprehensive legal and institutional set-up is key to address co-ordination gaps and the successful rollout of a better regulation policy. In particular, the governance of the RIA system and its adoption by policy makers throughout the administration could be strengthened.
Brazil’s efforts to review the stock of regulation are going in the right direction. To harness their potential, they could be articulated under a whole-of-government strategy for administrative simplification, within the scope of the country’s regulatory policy.
In the gas sector, recent and planned regulatory changes have been underpinned by strong stakeholder engagement activities and promise to narrow the gap between Brazil and OECD countries.

Contact

For further information, please contact Manuel Flores, OECD Regulatory Policy Division.

Brazil

Regulatory Reform in Brazil

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