In the 1980s a significant Brazil economic growth has been experienced. In the later years Brazil's economy had to face the problems of inflation. Now, World Bank has approved an amount of US $ 505 million in order to help the country to improve its economic growth. The program aims at reducing the poverty level, increasing the opportunities of employment and to increase in the potential of economic growth.
The loan approved by World Bank supports institutional and microeconomic reforms. Infrastructure regulation has improved the overall business environment of Brazil. New Corporate insolvency law and simplifying the registration of small and medium enterprises also contributed in the improvement of the business environment.
Any further improvement in the business environment will increase private-public partnership investment for infrastructure, increase in consumer choice and domestic competition.
The Brazilian Government has decided to reduce the logistics costs aiming at improving the price competitiveness for the Brazilian products. The reduction in the logistics costs will reduce 40% custom release time, 5% road transportation cost, 10% container handling costs and increase 10% non transportation cost.
Reforms in the financial sector will minimize credit risk, bank overheads and improve financial access and it will provide a momentum for the growth of the insurance industry. By simplifying the procedure of opening bank accounts, more poor are accessing to it. There is estimation that by the year 2006 there will be 103 million account holders in Brazil.
Transfer of technology contracts between universities and private sector will also increase to 20% by a new innovation law.
Brazil Economic Growth is aimed at attaining sustainable development.
