Brazil  

Brazil is Latin America’s largest economy. It has a large labour force and workers enjoy high levels of access to productive physical capital, such as machinery, factories and offices. However, the unemployment rate runs at 9%, putting Brazil in the bottom 30 on this variable. Loan defaults are very low, but Brazil has the second highest margin between lending and borrowing interest rates – 14 percentage points – indicating a serious lack of competition within the banking sector. Manufactured goods rather than raw materials generate most export revenues, but export revenues overall are very low when compared to the cost of imported goods, ranking the country only 80th worldwide. Brazil receives very little foreign direct investment, ranking the country 69th on this variable. However, domestic savings are slightly low at 19% of GDP, and household expenditure as a percentage of GDP is the 10th highest in the Index, which allows Brazil to sustain a significant domestic market.

Despite the extremely high 17 formal business start up procedures, 490,542 new businesses were registered in 2007, the second highest figure in the Index, suggesting Brazil to be a place of entrepreneurial determination. The level of internet infrastructure as measured by bandwidth is the 23rd highest in the Index, but the number of secure servers per person only ranks around the global average. Computer access is very low by global standards at just 16 personal computers for every 100 citizens, but this is still the highest figure among the South American countries. High-tech and ICT exports as a percentage of manufactured exports are moderately strong at 12% and 3.2%, respectively, placing Brazil amongst the top 50 with respect to these variables. R&D as a percentage of GDP is very low at just 0.7%, a figure that compares badly with other large industrialised economies, indicating weak commercialisation of innovation. However, payment for royalties is high, indicating that Brazil is able to capitalise on its intellectual property. In terms of value added by the service industry, Brazil ranks in the top third, internationally.

There is open competition among rival political parties for the office of the President, and the office is assigned through free and fair democratic elections. There is also a high level of open political competition among multiple parties for the legislature. Political rights and civil rights are categorised as very high, allowing citizens to participate in elections and associate with political parties. The political system has the second highest number of checks and balances in the Index. In addition, the judiciary is not independent, but subject to interference from other branches of government, and regime stability is average, with Brazil ranking 43rd in the Index on this variable.

Primary school enrolment is above the global average, with 94% of school-aged children enrolled in primary school, but Brazil is fourth from bottom among South American countries on this variable. At this education level, there is one teacher for every 21 children and the enrolment ratio of girls to boys is very high, suggesting that girls enjoy good access to education. Brazil scores highly for gross secondary enrolment, ranking 13th, internationally, but falls to 65th for gross tertiary enrolment. Brazil ranks 63rd on the number of years of secondary education per worker, which suggests correspondingly low labour productivity. Levels of tertiary education are average, with 25% of the eligible population enrolled in a higher education establishment, and an average of 3.6 years of tertiary schooling per worker, which places Brazil at 65th and 73rd respectively on these measures. Educational expenditure per student is less than $1,400, a below average figure, internationally.

On average, Brazilians have a health-adjusted life expectancy of 60 years, with 21% of respondents saying they suffered non-age-related health problems and 28% reporting pain.* These figures are all significantly above the global average. Infant mortality, at 2%, also ranks around the average compared to other countries in the Index. The incidence of undernourishment is moderate at 7%. Brazil receives average ratings on the number of doctors and hospital beds for the population, at 12 and 24 per 10,000 people, respectively. 77% of the population has access to improved sanitation facilities and the same percentage of respondents said they were satisfied with the quality of their water.* Only two-thirds of respondents said they felt well rested but subjective reports of health satisfaction were the 38th highest in the Index.*

Brazil faces serious security concerns related to the presence of cross-border refugees and internally displaced persons. Human flight also poses a serious challenge, as does political terror, with the country ranking 94th on the variable that assesses the government’s use of violent methods against its own citizens. The murder rate is very high at approximately 29 people per 100,000 capita, putting Brazil amongst the bottom 10 countries in the Index for this variable, and 60% of Brazilians don’t feel safe walking alone at night.* Although subjective perceptions of safety are among the worst in the Index, crime rates are slightly closer to Index averages, with 11% of respondents having been a victim of assault and 18% reporting theft of household property in 2008; Brazil ranks 82nd and 71st on these two variables.* There were no deaths due to civil war in 2008.

Although Brazilians are free to participate in the political and electoral process, only 26% of respondents said they were confident in the honesty of elections – the 10th lowest ranking country in the Index.* The rule of law is implemented equally and universally but only 40% of respondents polled are confident in the judicial system.* Similarly, 72% of respondents said they believe local businesses and politicians are corrupt.* Regulation is poor and governmental effectiveness is low, suggesting uncompetitive conditions for enterprise and inefficient bureaucratic practices. Despite such perceptions, Brazil still has the second highest levels of confidence in local businesses in the region.* Confidence in the country’s military is also very low, with fewer than half of respondents expressing confidence in the armed forces.*

Brazilians enjoy the highest possible rating for freedom of movement, religion, and speech. Tolerance for ethnic minorities and immigrants is very high, with more than eight out of 10 respondents believing that Brazil is a good place for these minorities.* Eight out 10 respondents also said they were satisfied with their freedom to choose what to do with their lives.*

While Brazil has the fifth highest religious membership in the Index at 77%, membership in arts, sports, and environmental associations is low, at 19%, 15%, and 7%, respectively.* Social support networks are strong, as almost half of Brazilians are married, and 88% believe they can rely on friends and family.* Volunteering and charitable giving are about average for the Index, with 26% of respondents giving money and 16% giving their time in 2008.* In Brazil, less than one in 10 believe others are trustworthy, but despite this, just over half of respondents say they would help a stranger, putting Brazilians in the top third of countries on this latter variable.*

* Data taken from the Gallup World Poll

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