Tuesday, April 22, 2014
The Problem with Protectionism: Brazil's Stagnant Productivity
A nice article in The Economist about the startling lack of labor productivity gains in Brazil since 1960. Startling because of the recent economic boom - a boom more about commodity prices and huge oil reserves than a modernizing economy.
I have seen it all first hand: the tremendous drag of the bloated bureaucracy, the massive protection manufactured and high tech goods receive in Brazil. Heck, even in my extremely well-funded private university the professors computers were old and slow because replacing them in Brazil is so expensive. I had a Brazilian-made monitor that was so bad it was hard to read the screen at all.
A perfect example of what is wrong in Brazil is Petrobras - the state-owned petroleum megafirm that is a complete mess.
It is time for the state to start retreating from the commanding heights of the economy and let some market discipline in...before it is too late.
at 10:52 AM