Brazil Expert Report-1.pdf

independent and fairly managed. Most appointees are hired through public examinations. In some areas, civil servants must be hired according to criteria of professional evaluation. In other areas, civil service positions are not regulated. Positions of responsibility are often filled by political appointees. In the federal sphere alone there are more than 23,000 such positions. The appointment of those is largely driven by political considerations, such as the imperative of holding together the legislative coalition. International observers often criticize the high level of taxation and low quality of public spending in Brazil. They emphasize that the high tax burden provides strong disincentives to private investment, formal sector employment and economic growth. The quality of government spending also suffers from suboptimal public sector management, weaknesses in planning and budgeting and rigid institutional arrangements (including inflexible labor legislation and complicated procedures for registering businesses). Brazil’s public expenditures total more than 40 percent of GDP, while the composition of public spending has shifted toward government consumption and social security, and away from public investment. INCRA Brazil Expert Report 29