Brazil, R&D and the role of clusters

- More than 50% report bribery attempts from tax collectors;
- The most vulnerable tax, for 78% of the firms is the ICMS (value added state) and the main
favour corrupt fiscals provide is relaxing ficalizations and inspections;
- Corrupting in procurement, taxes and licenses is seen as indiscriminately serious in the federal,
state and municipal levels.
The trend to institute an internal environment in which corruption is at least formally condemned was
clearly reflected in the survey. 78% of the respondent firms had adopted (in 2003) an internal ethics
code explicitly prohibiting the payment of bribes to public officials. At the same time, however, 21% of
these same firms stated that their managerial policies implicitly recognize the fact of bribery, and hence
that they in some way have to adjust to their business environment.
- BUSINESS AND CORRUPTION –NORWEGIAN PRESENCE IN BRAZIL:
Most Norwegian companies established or operating in Brazil are small or medium sized companies.
Usually the most important sectors of operation of the Norwegian industry are those described by
Transparency International’s Bribe Payers Index 2002 as those most exposed to corruption such as: oil
and gas, power transmission and construction.
According to the CMI Report on Collaboration on Anti-Corruption Norway and Brazil by Tina Søreide and
Claudio Weber Abramo, there are no reported cases of corruption involving Norwegian firms operating
in Brazil. 18 interviews were conducted by Tina Søreide in Aug 2007 in order to identify Norwegian
firm’s perceptions of the business environment in Brazil, what is considered obstacles to business and
how the companies deal with those obstacles.
Results from the survey clarified that although the problem of corruption was a concern for many of the
business people addressed it was not described by them as an everyday burden. The majority of the
executives interviewed did not admit that corruption might be influencing their firm’s market position
and did not think they had lost contracts as a result of such crime. Meaning that this survey contrasts
with the results from the previously mentioned T Brasil/ Kroll survey.
Executives did express their disappointment regarding the different ways of doing business in Norway
and Brazil, due to regulatory framework, market-related matters and culture. Entry into the Brazilian
market was described as challenging, attributing it more to regulation and taxation than to the challenge
of getting contracts. Some statements of the research include: “Brazil is one of the most complicated
markets to get established” – “entry to Brazil is expensive, but promising if things are done right” – “It is
critically important to establish contact with truly professional environments, and not make use of the
first agent who wants to assist you.”.
However, in general the interviewed judged the business environment in Brazil to be rapidly improving
and depicted a very promising market for Norwegian companies.
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