## Structural Reform Priorities for Brazil

_IMF Working Papers, October 8, 2018_

## Source details

**Canonical URL:** [Structural Reform Priorities for Brazil](https://www.imf.org/en/publications/wp/issues/2018/10/08/structural-reform-priorities-for-brazil-46230)

## Other formats

- [Markdown version](/en/publications/wp/issues/2018/10/08/structural-reform-priorities-for-brazil-46230/index.md)
- [Structured JSON version](/en/publications/wp/issues/2018/10/08/structural-reform-priorities-for-brazil-46230/index.json)
- [Bundle manifest](/en/publications/wp/issues/2018/10/08/structural-reform-priorities-for-brazil-46230/bundle-manifest.json)

## Bibliographic details
- Authors: Nina Biljanovska, Damiano Sandri
- Published: October 8, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484376331.001

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### Summary
- Over the last few decades, Brazil has experienced relatively weak economic growth due to stagnant productivity.
- To boost productivity, Brazil should embark on an ambitious structural reform process while selecting a few reform priorities to avoid dispersing political capital on an overly broad reform agenda.
- The paper identifies Brazil’s reform priorities in two steps:
  - It estimates the impact that different reforms have on Brazil’s productivity.
  - It analyzes survey data to assess the extent of public support for reforms.
- The results show that banking sector reforms would generate the largest productivity gains and have the highest level of public support; they would also be relatively easy to legislate and generate significant fiscal savings.

### Findings on productivity impacts
- Banking sector reforms yield the largest productivity gains.
- Other reform areas analyzed (implied by subject keywords) include labor market reforms, legal system, and measures addressing monopoly power and state intervention.
- Focus on total factor productivity and production as central outcomes.

### Public support and political economy
- Survey analysis is used to assess public support for reforms.
- Banking sector reforms score highest on public support and political feasibility ("relatively easy to legislate").

### Policy recommendations
- Select a small number of high-impact reforms rather than pursuing an overly broad reform agenda.
- Prioritize banking sector reforms given their combination of:
  - Largest estimated productivity gains.
  - Highest level of public support.
  - Relative ease of legislation.
  - Potential for significant fiscal savings.

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## Content in this bundle

- **Structural Reform Priorities for Brazil, WP/18/224, October 2018**
  - [Structural Reform Priorities for Brazil, WP/18/224, October 2018 (Markdown version)](/-/media/files/publications/wp/2018/wp18224.pdf.md){rel="alternate" type="text/markdown"}
  - [Structural Reform Priorities for Brazil, WP/18/224, October 2018 (PDF)](/-/media/files/publications/wp/2018/wp18224.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2018/10/08/structural-reform-priorities-for-brazil-46230_