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OECD Economic Surveys

OECD Economic Surveys
The COVID-19 pandemic has caused severe human suffering and triggered a deep recession in Brazil. Economic policies reacted in a timely and decisive manner to the crisis, supporting millions of Brazilians. But a strong and inclusive recovery from the recession will require long-lasting improvements in economic policies. Improving fiscal outcomes remains one of Brazil’s principal challenges given a high debt burden, to which the pandemic has added significantly. Public spending will need to become more efficient, including by building on past progress in the fight against corruption and economic crimes. Social protection can be strengthened through a better focus on the most effective policies and benefits, which could allow significant reductions in inequality and poverty. Stronger growth will hinge on raising productivity, which has been virtually stagnant for decades. This requires addressing underlying policy challenges, including reducing regulatory burdens, reforming taxes, strengthening judicial efficiency and fostering a stronger integration into the global economy. Raising productivity implies reallocations and structural changes in the economy, which should be accompanied by well-designed training and education policies. Training with a strong focus on local skill demand can help workers master the transition and seize new opportunities to move into better jobs
Literary Form
non fiction
Main title
OECD Economic Surveys
Nature of contents
Oclc number
Series statement
OECD Economic Surveys: Brazil
Table Of Contents
Intro -- Basic statistics of Brazil, 2019 -- Executive summary -- The COVID-19 outbreak has plunged the economy into a deep recession -- Raising spending efficiency is needed to address fiscal challenges -- Reviving productivity is the key for a strong recovery of incomes -- Well-designed training policies are key -- 1 Key policy insights -- The strength of the recovery will hinge on economic reforms -- COVID-19 has plunged the economy back into a long and deep recession -- The short-term prospects will depend on the health situation -- Risks are centred around the implementation of reforms and fiscal sustainability -- External vulnerabilities seem contained -- Financial soundness indicators are solid but the pandemic entails unprecedented risks -- Inflation is below target and interest rates have reached a long-time low -- The fiscal outlook has become much more challenging after COVID-19 -- Fiscal adjustment will have to resume after the pandemic -- Reducing budget rigidities is key -- Improving the effectiveness of social transfers -- Managing high payroll expenses -- Reducing inefficient subsidies and tax expenditures -- Reforming taxes to boost productivity and enhance fairness -- Further social progress is possible at reasonable fiscal cost -- Strengthening the social safety net -- Improving labour market policies -- Raising the quality of education -- Fighting corruption and economic crimes -- Making economic growth greener and more sustainable -- Halting illegal deforestation in the Amazon region -- References -- 2 Raising productivity through structural reforms -- Possible sources of low productivity growth -- How can policies help to strengthen productivity growth? -- Enhancing domestic competition through reforms on product markets -- Regulatory barriers to firm entry reduce competitive pressure -- State interventionsEnhancing foreign competition by fostering the trade integration -- Stronger integration would boost competition, productivity and lower consumer prices -- Policy options for strengthening integration -- The structure of financial intermediation is improving -- Simplifying taxes and reducing compliance costs -- Addressing infrastructure bottlenecks -- Improving judicial efficiency -- Reducing trial length and judicial uncertainty are key to boost business activity -- Improving the organisation of courts -- Reducing the demand for litigation to mitigate court congestion -- Litigation demand strongly varies across different law areas -- The legal industry has strongly expanded in recent years and is highly protected -- Alternative dispute resolution mechanisms -- References -- 3 Improving skills to harness the benefits of a more open economy -- Policies can help to make trade work for all -- Gauging the effects of stronger integration into the global economy -- A look at local labour markets -- The reallocation of workers within sectors -- The reallocation of workers across sectors -- Targeted training can make a real difference -- Improving professional training policies -- Aligning training supply with labour market demands is key -- Current plans draw lessons from past weaknesses, but should go further -- Improving education policies -- Access to education has increased, but education quality is still weak -- Improving the quality of basic education -- Preparing low-skilled adults for the challenges of the future -- Improving access to vocational education and apprenticeships -- Improving access and quality in tertiary education -- References
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