Brazil lacks infrastructure and needs to improve the efficiency of its investments. We have a better logistics than our Latin America neighbors, but worse than our emerging peers. A well-developed infrastructure connects agents, promotes market integration, reduces transaction costs, facilitates the flow of information and is crucial to increase productivity in the country.
In this paper, Oliver Wyman analyzes the current status of the Brazilian infrastructure, presents the current gaps, and summarizes the challenges ahead. It points out what needs to be done to attract private sector funding and ensure an efficient allocation of resources. Infrastructure: Rules and Incentives is part of the Panorama Brasil series of papers that aims at collaborating to the diagnosis of the current economic and social situation in Brazil and motivating the debate of what is required for the country to pave a sustainable growth path with a better income distribution.