São Paulo - The Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, said yesterday (23) that 5% of the Gross Domestic Product (GDP), or US$ 25 billion, annually, is wasted on bureaucracy. According to Furlan, a World Bank report reveals that to start a company in Brazil, it is necessary to go through 27 federal, state, and municipal government organs.

Furlan participated in the Debureaucratize to Grow forum, sponsored by Exame magazine, in São Paulo, to make an assessment of bureaucracy in the country and its implications for private enterprise.

Simeon Djankov, an economist with the World Bank, gave an exclusive preview of a report dealing specifically with small and medium-size companies in 145 countries. Brazil appears nearly last on the list.

According to Djankov. the report indicates that, among the three levels of the Executive, the federal government has the best performance, while that of states and municipalities is worse. According to the report, one of the things that stands out is the time it takes a small or micro firm to obtain a license to initiate its activities. The city of São Paulo receives the worst evaluation. There, 132 days are spent just to get a municipal license.

Agência Brasil
Reporters: Marcelo Gutierres and Paulo Montoia
Translator: David Silberstein
08/24/2004