Analysis: Brazil is among the least competitive to attract investments
Brazil dropped seven positions in this year's world competitiveness ranking, moving from 58th to 65th place in a survey that evaluates 70 countries. The result places the country among the nations with the least capacity to attract investment, companies and generate jobs.
According to CNN Economics analyst Lucinda Pinto, the ranking precisely measures this ability of nations to become business-friendly environments. "This competitiveness ranking is nothing more than a way of measuring countries' ability to attract investment, attract companies, generate business and generate employment", he explained.
What the ranking evaluates
The survey analyzes 300 different aspects, including quality of education, cost of capital, government performance and company performance.
Among the best placed countries are Singapore, Hong Kong, Switzerland, Taiwan, United Arab Emirates, Denmark, Ireland, Netherlands, Sweden and the United States.
According to Lucinda Pinto, these nations have in common high-quality education, strong investment in technology and innovation, as well as a significantly lower cost of capital - exactly the points in which Brazil demonstrates greatest fragility.
Decline in a period of growth
An aspect that draws attention, according to the analyst, is the fact that Brazil has worsened its position precisely in a period of economic growth and heating of the job market, with the unemployment rate reaching historically low levels.
"But this is not enough to guarantee this competitiveness, because the country has not yet managed to develop these other aspects", stated Lucinda Pinto.
The analyst highlighted that the cost of capital represents a strategic problem for Brazil, describing a dynamic that is difficult to reverse.
"We don't have quality education and this doesn't allow us to have sustainable growth. Without efficient growth, we end up depending on higher interest rates to attract investors. So, it's a negative wheel that has been difficult to break", he explained.
Lucinda Pinto also added that the countries that stand out positively in the ranking have as their hallmarks predictability and a clear vision of the future, attributes that, according to her, Brazil often lacks.
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Source: CNN