Constraints on Development in Brazil

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BRAZIL IN STATS:
Population: 198.3 million
GDP per capita: 11310.88 ($)
GDP: 2242.9 billion ($)
Unemployment: 6.6%
Inflation: 6.2%
FDI inflow: 64.0 billion ($) as of 2013

CONSTRAINTS ON DEVELOPMENT: TAX
The top individual income tax rate is 27.5 percent. The top corporate tax rate of 34 percent includes a 15 percent corporate tax, a corporate surtax, and a 9 percent social contributions tax on net profits. There are other federal, state, and municipal taxes. The tax burden is equivalent to 35.3 percent of domestic income.
Public spending equals 40.4 percent of GDP, and public debt amounts to 66 percent of the economy.

CONSTRAINTS ON DEVELOPMENT: OPEN MARKETS
Brazil’s average tariff rate is 7.7 percent. The government has worked to improve customs procedures, but non-tariff barriers
(import bans on certain goods) deter imports of goods and services.
Foreign investment in aviation, insurance, and other sectors is limited. The financial sector is diversified and competitive, but the state’s role remains significant. State-owned banks control over a quarter of assets and direct loans to certain preferred sectors.
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Extensive red tape

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High levels of Bureaucracy

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State has a heavy hand

CONSTRAINTS ON DEVELOPMENT: INFRASTRUCTURE
Brazil’s growth is constrained by infrastructure weaknesses: In
2011, only 14% of her roads were paved. The World Economic
Forum ranks Brazil’s quality of infrastructure 104th out of 142 countries surveyed, behind China (69th), India (86th) and Russia
(100th).

CONSTRAINTS ON DEVELOPMENT: EDUCATION
Brazil now has the sixth biggest economy in the world, but its education standards lag far behind. In an international study of education systems, PISA, it came in at 53rd. That threatens to hold this country back.
Improving education takes time this country doesn't have much of. Tackling the vested interests of administrators, teachers' unions and bureaucrats makes it one of the most politically difficult things any country can do.

CONCLUSION
Brazils growth has been stunted by four main factors:
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Tax

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Open markets

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Infrastructure

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Education

As of recent, brazil has started to invest more into its infrastructure, plans of 120 billion us dollars are to be spent on roads and trains.
Increased education reforms and plans to reduce the bloated bureaucracy.