Brazilian Informal Economy Grows 9% and Brazil Doesn’t Know How to Deal with It

Brazil’s informal economy grew 9.1% between 1997 and 2003, according to the Brazilian Institute of Geography and Statistics’ (IBGE) Urban Informal Research (Ecinf 2003).

The IBGE’s research was carried out with the collaboration of the Brazilian Micro and Small Business Advisory Service (Sebrae) and released this month.


Professor Márcio Pochmann, of the State University of Campinas (Unicamp), judges that part of this growth occurred because incorrect policies were adopted, dealing with the problem as if it were homogeneous.


“In fact, the informal sector is a world of diversities. We have to identify specific policies for specific segments within the informal sector,” he affirmed.


According to the study, the chief difficulties identified by entrepreneurs in the informal sector are lack of clients (indicated by 48.6%), heavy competition (44.5%), and low profits (34.4%).


Other problems mentioned by the entrepreneurs were lack of credit (13.6%) and lack of personal capital (26.2%). Nevertheless, 16.1% of the entrepreneurs reported that they had experienced no difficulties.


“I believe that what we do in Brazil is to plant wheat in pots. Planting wheat in pots is inadequate to cope with Brazil’s hunger epidemic. Most of the time the pots we plant don’t correspond to the methods suitable for large-scale cultivation,” the professor pointed out.


ABr – www.radiobras.gov.br

Tags:

You May Also Like

Super Cautious, Brazil’s Chancellor Says Ball Is at EU’s Court

Progress in trade talks at the 6th Ministerial Meeting of the World Trade Organization ...

Brazilian Air Force Says It’s Premature to Blame US Pilots for Boeing Crash

In an official note,  the FAB (Brazilian Air Force) and ANAC (National Agency of ...

Brazil and Neighbors Are the Ones Shaping Up Any New US-Latin America Relations

Global economic disruption makes it seem events are overtaking analysis faster than people can ...

The Bulls Are Loose

Investments into Brazil economy should reach $15 billion this year, almost as much as ...

Despite Supreme’s Ruling Brazil Jurists Still Want Military Torturers Punished

Brazilians have been asking such questions as: Is there a difference between a “political ...

Viagra’s Patent Expires in Brazil. Market Is Flooded With Cheap Generic Pills

The day after Pfizer Inc’s patent for Viagra expired in Brazil, Carlos Sanchez flooded ...

19% of Brazilians Over 15 Still Hooked on Cigarettes

The number of smokers has been going down in Brazil, but the habit is ...

Brazil on Mercosur Summit: ‘Total Agreement Only in the Cemetery’

Brazilian Minister of Foreign Relations, Celso Amorim made a positive assessment of the Mercosur ...

Brazil School Decides to Take Back Student Expelled for “Indecent Exposure”

One day after announcing through ads in the press that it had expelled a ...

Brazil’s USP Is Latin America’s Top University in Number of Research Papers

The University of São Paulo in Brazil and the National Autonomous University of Mexico ...