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Political Climate Essay

847 words - 4 pages

Government Overview
http://www.dfat.gov.au/geo/brazil/brazil_brief.html
After decades of military dictatorship, Brazil is one the world’s largest democracies since 1985. The constitutions adopted in 1988 declared the country a federal republic with 26 states and a federal district. Brazil has a distinct division of power between the federal and local government. The Constitutions grants the federal level with broad powers and each state has its own government that is subordinate to the federal government. Three independent powers, executive, legislative, and judicial branches make up the federal government. The president and vice president are elected by popular vote for four year terms. In 2010, Brazil elected it first female Chief of State, Dilma Rousseff, a member of the Workers Party. Rouseff continued with the economic and social policies from former President Lula da Silva. She advocates for the end of poverty in Brazil, protection of the environment, tax system reform, and development in Brazil’s regional areas. In addition, the legislative branch is known as the National Congress which of 81 members in the Federal Senate and 513 members part of the Chamber of Deputies. Brazil’s judicial branch comprise of three level, which includes federal, municipal, and local. According to citymayors.com, Brazil’s judicial system is the most independent system in Latin America. local.
Despite the slow economic growth in the last years, Brazil remains an attractive playing field for foreign investors. With the preparations for the upcoming 2014 World Cup and 2016 Olympic games, many developmental programs are improving problem areas in the country thus creating a better business environment. According to The Rio Times, in 2007, the Brazilian government focused on development programs known as acceleration program (PAC) which consists of investment plans of nearly R $ 504 billion that last would last until 2010.Despite disappointing progress with these project, the government released PAC-2 in March to continue the projects that were supposed to be covered under PAC. Under PAC-2, areas such as energy, urban renewal, housing, water and road transportation will be improved.
The 2014 World Cup and 2016 Olympic games serve as an incentive in of itself for potential investors since the games is estimated to attract thousands of tourism
The Brazilian government encourages innovation and reward foreign investors who partake in research and development. Based on Marketline In-depth county profile report, these incentives come in form of tax reduction and legal concession. These tax reductions include tax reduction of 100% of R&D investments, accelerated depreciation of R&D asset, and reduced IPI. Another incentive includes government granting businesses credits on withholding tax for royalty payments. \
http://riotimesonline.com/brazil-news/rio-business/brazil-pac-2-spending-plans/# ...

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