Government Estimates 3.7 Million New Jobs

Provisional Measure, Currently Under Consideration in Congress, Aims to Streamline Processes for Opening and Operating Small Businesses.

The modernization of the business environment outlined in the so-called Provisional Measure for Economic Freedom, currently under consideration in Congress, has the potential to increase Brazil’s per capita GDP by 0.4% to 0.7% per year and generate 3.7 million jobs in the next ten to fifteen years. This estimate was made in a study by the Secretary of Economic Policy (SPE) of the Ministry of Economy.

One of the economic team’s bets to unlock businesses and boost economic growth, the PM proposes actions such as eliminating the requirement for permits and licenses and reducing bureaucracy for startups.

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According to the study, the expectation is that the per capita GDP will grow by 7% in the long term – estimated to be ten to fifteen years – during which the employed population is expected to increase by 4%. “The idea that the institutional environment explains part of the prosperity differential between nations is well established,” the document states.

For the special advisor of the Secretary of Economic Policy (SPE), Felipe Garcia, the measures outlined in the PM are essential to facilitate business operations and stimulate economic growth.

“The economy is like a sick body, with the heart stopping and the arteries clogged. Pension reform is extremely necessary, it’s a heart transplant. But it’s important to unblock veins and arteries, and that’s what the PM does; it allows the economy to flow,” he compared.

The methodology of the study is based on indices of economic freedom and ease of starting businesses, among other indicators, from countries where the economic environment is considered more developed and the impact on the Brazilian economy of the country achieving similar indices.

The ministry listed 17 points addressed by the provisional measure.

[one_half]

• Bureaucracy
• Labor and Production
• Price Definition
• Arbitrariness
• Presumption of Good Faith
• Modernization
• Innovation
• Pact
• Responses to Requests

[/one_half]

• Digitalization
• Growth
• Entrepreneurship
• Drafting Contracts with International Standards
• Abuses
• Economic Regulation
• Corporate Regularization
• Contractual Risks

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