Source: InfoMoney - SP - CAPA - 09/11/2009

SÃO PAULO - Compared to last year, Brazil fell seven positions in the ranking of the Institutional Quality Index, revealed the IEE (Institute of Business Studies) and the Instituto de Liberdade. The country is in 98th place.

The Institutional Quality Index is organized by INP-London (International Policy Network) and evaluates eight indicators: voice and performance, rule of law, press freedom, corruption, doing business, competitiveness and economic freedom.

Brazil stands out in the competitiveness index, in which it occupies 56th position, but, in relation to taxes, it is in 150th place.

“In terms of structure, innovation and competitiveness, Brazil has its best results. However, the tax burden is very high (around 40% per year), bureaucracy still prevails. It takes 120 days in Brazil or Argentina, on average, to open a business, ”explained the study's author and director of Cima (Center for Investigations of Institutions and Markets in Argentina), Martín Krause.

Other countries

The first places are occupied by Denmark and Switzerland. On the American continent, Canada ranks first, followed by the United States. In Latin America, Chile is in the lead, being 24th in the general ranking.

For the director of Cima, the country can grow even more. "If China grows 9% a year, Brazil has the capacity to grow as much as an Asian country".

Purpose of the Index

The purpose of the Institutional Quality Index is to investigate the strength of local institutions and the economic, social and political freedoms of a country.

The indicator shows that, in search of growth and stability, governments must support strong institutions that protect economic and individual freedoms.