Brazil Expert Report-1.pdf

I. Political, Economic and Social StabilityAccording to the 1988 Brazilian Constitution, government and administration must act on the basis of and in accordance with legal provisions. Decrees and regulations issued by the executive are only valid if they are in conformity with the law. In case of emergency, the president can enact provisional measures that have to be approved by Congress within a period of sixty days to become law, otherwise they lose their efficacy. While the government takes care to assure a friendly and predictable investment environment, its actions can be expected to be guided by law. Legal regulations are largely consistent, while not entirely transparent. Contracts are respected. The government generally makes no distinction between foreign and national capital; its actions apply without discrimination to both foreign and domestic firms. In spite of these general tendencies, it must be said that some some critics point out that major political players in Brazil do not serve to help establish the ideal of the rule of law. Tthe legal system suffers from a lack of congruency between the laws and the actual behavior of individuals and state officials. Notably, the still existing extreme levels of social and economic inequality within Brazilian society often cause discrimination against poor people and the legal immunity of the privileged. INCRA Brazil Expert Report 2