The Obstacles To Foreign Investment In Brazil

Examining the role of China

It is to be admitted that the Latin American country has faced multitudinous economic challenges over the past few years. The listless economy of the country has been troubling the local and foreign investors alike. China has proved to be a good economically for Brazil, lending money to the Brazilian government in times of need. China has not only been lending money to Brazil but to other Latin American countries as well and the sum exceeds the loans sanctioned by the World Bank, Inter-American bank and the US Import-Export Bank together. But the Chinese government has definitely been operating on the assurance of repayment in the form of raw materials and natural resources of the region. This economic condition does nothing but adds to the already existing dependency of Brazil on developed countries. Although China has helped Brazil a great deal when the other European countries were battling the effects of a world economic crisis, there is a hint of resentment among the executives of Brazilian foreign trade and investment promotion agencies about the Chinese exploitation of the region’s resources. They want to be the owners of their own development and do not want their economy to be usurped by some other country. But it would be wrong to paint an altogether bleak picture of Brazil’s economic sector. Foreign investors including Chinese and North American companies are still investing in Brazil, though not in very great numbers. Jobs for translators have been created as a result and translation service companies are capitalizing on it.

The obstacles to foreign investmentĀ 

Brazil is facing obstacles in terms of attracting foreign investors in great numbers. Firstly, the investment climate of Brazil is not highly conducive for foreign investors. The Brazilian government takes no pains to facilitate the foreign companies as such. The taxation framework of Brazil is complex which is discouraging the foreign as well as Brazilian investors. Secondly, the labor costs in Brazil are quite high and there is a shortage of skilled workers which is a great challenge for newly established enterprises which are in need to hire staff. A third impediment is the high cost of utilities in Brazil which makes it practically impossible for the investors to manufacture products at a low cost. These areĀ  the snags which the Brazilian government needs to overcome, to make the investment climate more conducive for investors. The current investment rate is not very outstanding. But Brazil is a good market for Portuguese translators because foreign investment cannot be proclaimed as completely non-existent in the country.

How to overcome the obstacles

The government of Brazil has taken some initiatives to facilitate investors. The cost of electricity in Brazil was the highest in the world but now the government has reduced it to some extent. The government is also trying to attract qualified foreign professionals from other European countries to come and work in Brazil. This measure is taken to meet the demand of skilled professionals in the Brazilian industry. The newly launched concession programs by the government are going to resolve the problems of infrastructure to some extent. This is also going to reduce the number of trucks on the roads because people will have other alternatives to travel. Air pollution and other environmental concerns are a big challenge for the country. It is hoped that in the coming years, investment climate of the country will change which will create more jobs for Brazilians and will pave the way for translation services firms to do business in Brazil as the demand for their services shoots up. The future of Brazil is promising and the investors need not shrink from the idea of investing in Brazil.

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