(PT) Economic Freedom MP encourages economic growth - RMS Advogados
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Economic Freedom MP encourages economic growth


Some data are important to position a discussion centered on the Brazilian reality. Entrepreneurs have already taken 79.5 days to regularize a business, spend more than R $ 130 million to follow changes in laws and 2,600 hours to comply with all tax obligations.

Report from the National Confederation of Industries, published in 2019, surveyed the level of competitiveness in 18 countries on all continents. In the “Business Environment” category, Brazil ranked 16th, showing itself as the main bottlenecks: legal security, bureaucracy, ease of starting a company, execution of legal rules, efficiency of the legal framework in questioning government regulation, execution of contracts and quality of private sector regulation.

In society’s assessment, this is also a concern. The results of the study “Portraits of the Brazilian Society” show that 77% of the interviewees considered Brazil to be a bureaucratic or very bureaucratic country. And yet: closing and opening a company are considered the most bureaucratic procedures.

Reducing bureaucracy does not mean simply eliminating inefficient administrative structures or condemning unreasonably the excesses associated with state intervention, but thinking creatively about ways to structure the bureaucratic apparatus. It is necessary to promote positive impacts on economic growth, social and economic stability, maximizing the benefits for society. This represents the optimization of the performance with which essential services to the public are provided.

The importance of Provisional Measure 881/19, known as the Economic Freedom MP, is related to gains in productivity and quality, originated in the interaction between the various normative changes, in order to make the business environment in Brazil more favorable to investors, entrepreneurs and small and medium-sized companies, realizing competitive advantages for these players and, therefore, for the country’s economic growth. It is worth remembering that a common element among the fastest growing countries in the world is the ability to implement a wide range of initiatives that involve, among others, institutional reforms, technological innovation and public governance.

Certainly, the most decisive contribution of this legal norm is reflected in the improvement of legal security and in the reduction of bureaucratic excess, promoting, in this sense, an improvement in the business environment of the country, with clearer rules for the fulfillment of contracts, questioning of regulatory bodies , interpretation of legislation and operation of business activities.

From its wording, already in § 1, of art. 1st, the concern with legal security in business relations and business activities is expressed, when defining the scope of the legal text to the application and interpretation of Civil, Business, Economic, Urban and Labor Law, turning also to important aspects, such as professional practice, public records, production, consumption and corporate organization.

In the aforementioned legal norm, an axiological set evidences the paradigm shift in the performance of the federal government by consigning the presumption of freedom in the exercise of economic activities, in good faith of the individual and minimal State intervention as principles. Another important advance concerns the creation of the legal figure of regulatory abuse, prohibiting obstacles to free competition, innovation and the adoption of new technologies, business processes or models and the formation of business companies.

These aspects will undoubtedly have a positive influence on strategic investment decisions in the country, as well as expanding its long-term economic growth potential.

It is understood, therefore, as uncontroversial, the fact that the chances of success of an enterprise are also associated with the characteristics of the economic systems in which they are located. Now, stimulating technological innovation, entrepreneurship and implementing initiatives to reduce bureaucracy are essential elements to expand competitiveness and optimize the performance of these companies, bringing as consequences, among others, the generation of more jobs and income for the population.

It is possible to maintain, therefore, that in terms of legal changes, this legal rule achieves the objectives of reducing bureaucracy, reducing State intervention in the economy, strengthening legal security in business activities and encouraging small and medium entrepreneurs. This framework was necessary to accelerate the business environment in Brazil, promoting essential changes in the national legal system, facilitating the creation of jobs and income for the population, updating the legislation to the peculiarities of the current times and considerably reducing bureaucratic excess.

Therefore, a new panorama in Brazilian economic relations begins, establishing a position in favor of development and

economic growth through the express affirmation of rights and principles that aim to place Brazil definitively in the guidelines of a globalized economy, favoring, therefore, the business environment in the country.

This is the context in which the text of this legal norm is considered to be beneficial to the country and to society, constituting an incentive to resume economic growth and expand the effects of development. And, also, the reduction of costs and the improvement of legal certainty in private relations, optimizing the business environment and the provision of public services in the perspective of increasing efficiency and transparency.

* Wilson Sales Belchior is Federal Advisor at OAB and partner at Rocha, Marinho E Sales Advogados

Source: Estadão



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