São Paulo, July 5, 2004 (Agência Brasil) - In São Paulo, on Friday (2), at a luncheon sponsored by the Association of Brokerage Firms, the Minister of Development, Luiz Fernando Furlan, called for a campaign against bureaucracy and in favor of greater efficiency. According to Furlan, bureaucracy is not limited to the public sector. It is an "epidemic," he proclaimed.

"I estimate that we waste 5% of the Gross Domestic Product (GDP), annually, through inefficiency, duplication, and bureaucracy," Furlan said. "Are we unable to change this? Are we content to be a country that is efficient in production and inefficient in the system?" Furlan asked.

The Minister also mentioned the precariousness of the country's infrastructure as an obstacle to growth. He stated that the numbers for the second semester will not be as "eye-catching" as those for the first semester, a reference to the record trade surplus announced on Thursday (1).

"There is no way exports can maintain a 30% growth rate with the infrastructure we possess: roads, highways, railroads, waterways, ports, airports, bureaucracy, customshouse traffic," he affirmed.

Furlan recalled, for example, that Brazil spends US$ 1 billion each year just for the time ships remain in port waiting to load cargo.

Incentives to small firms are another important factor, in the Minister's judgment. According to him, Brazil has four million small firms, which represent a huge portion of the country's job supply. Nonetheless, only 10 thousand of them engage in export activities, he informed.

"We must boost the organization of small firms, not just for them to be more competitive, but for them to be strong enough to gain access to foreign markets," he declared.

Reporter: Mylena Fiori
Translator: David Silberstein