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This paper describes and analyses recent reforms in the natural gas market in Brazil aimed at fostering a more open, competitive, efficient, and flexible gas sector. This paper reviews the changes in the regulatory framework using two lenses: the reform process seen through a regulatory policy lens and the resulting regulatory framework using the OECD Product Market Regulation (PMR) indicator. The paper includes policies options to further improve the regulatory framework in the sector and reap the full range of benefits of the reforms.

Appropriately designed and implemented regulations are powerful tools for enhancing economic performance. A strong and sound regulatory framework can mitigate threats to health, safety, and the environment and address market imperfections. However, regulation can also create barriers to the entry and expansion of firms, which may limit and distort competition. Some of these barriers are necessary, but others may go beyond what is needed to address the policy objectives and the market failure(s) regulation is intended to remedy. The OECD developed in the late 1990s a set of Product Market Regulation (PMR) Indicators to assess how competition-friendly the regulatory framework of a country is across a range of sectors and regulatory areas. A regulatory framework that facilitates competition, for example, can stimulate productivity by encouraging the efficient allocation of resources and promoting innovation and growth. This paper examines a range of product markets, services, and network industries in Brazil, relying on the results of the PMR indicators, and identifies areas where country’s regulations could be brought more in line with international best practices. These include the governance of state-owned enterprises, interaction between policy makers and interest groups, network sectors, and professional services.

The review examines how higher education institutions are supporting innovation and entrepreneurship in their surrounding communities. The study focuses on eleven universities located in six countries in Latin America: Chile, Colombia, Mexico, Brazil, Argentina and Uruguay. The study finds that selected institutions are actively supporting entrepreneurs (university students, but also local entrepreneurs) through courses, incubation and acceleration activities. It also shows that universities are actively engaging with external stakeholders in their surrounding communities, to spur innovation through joint-research, organisation of events (such as festivals, competition). It finds that that while COVID-19 pandemic brought about some challenges, universities managed to stay afloat and keep a steady stream of support to entrepreneurs and partners. The review also illustrates the challenges that universities face when developing these activities (lack of funding, unclear regulation for intellectual property development, etc.) and highlights some opportunities that universities should leverage, particularly in the current context.

This review provides an analysis of regulatory barriers to competition in Brazil, specifically in the ports and civil aviation sectors, and makes recommendations for Brazilian authorities to mitigate harm to competition and foster long-lasting growth. It is based on a competition assessment conducted by the OECD in co-operation with the Brazilian Competition Authority (CADE) identifying rules and regulations that may hinder the competitive and efficient functioning of markets in the two sectors under review. The review also includes estimates of the impact that the implementation of certain specific recommendations could have on the economy.

This Digital Trade Review of Brazil provides an overview of Brazil’s participation in digital trade and the related regulatory environment. It provides insights into how Brazil might ensure that the new challenges raised by the digital transformation for trade can be managed and the benefits shared more inclusively. While Brazil has embraced the digital transformation and has strong potential to benefit from digital trade, it will need to continue the ongoing process of regulatory reform. This includes reducing tariff and non-tariff barriers to trade on ICT goods; reducing regulatory barriers to ICT services; increasing engagement in international discussions on digital trade; and continuing efforts to bridge digital divides.

Good governance is a building block for the performance of regulators, including civil aviation authorities. This paper reports the results of a mapping of governance arrangements across 29 civil aviation authorities in Latin American and Caribbean countries, with the International Civil Aviation Organization’s South American and North American, Central American and Caribbean regions. Applying the methodology of the OECD Indicators on the Governance of Sector Regulators, the results provide a birds-eye view of the independence, accountability and scope of action of participating authorities. This paper explains the indicator methodology, summarises key data points, and presents high-level take aways.

The OECD Centre of Government Review of Brazil offers key recommendations on consolidating the strategic role of the country’s centre of government (CoG) in managing policy priorities and improving outcomes. The review examines the CoG’s roles, mandates, and its co-ordination capacities. It provides an assessment of Brazil’s ability to translate political commitments into measurable objectives and delves into its capacity to link strategic plans to outcomes. Focusing on the capacities of the CoG to contribute to the budget strategy and the federal budget, it considers medium- and long-term plans and how these align with the budgetary framework and how the budget can support policies in a coherent manner. The review also examines the CoG’s role in monitoring and evaluating high-priority policy performance and how this information can be used to improve outcomes. Finally, the review assesses how Brazil can consolidate and reinforce public communication, both to pursue policy objectives and to promote a more open government. 

Removing unnecessary barriers to competition through targeted reforms can foster productivity and economic growth. This Regulatory Reform Review of Brazil analyses sectors that create barriers to competition, such as regulations that create obstacles to the entry of firms, inhibit the entry of firms, or restrict activities in professional and network sectors. In a complementary way, the review also identifies government efforts to develop policies and tools to improve the quality of regulations, such as ex ante assessment of draft regulations, stakeholder engagement in rule making, and administrative simplification. High-quality regulations can stimulate productivity by encouraging the efficient allocation of resources and promoting innovation. In turn, these measures can reduce prices for consumers, stimulate the creation of jobs, and help improve living standards. The review identifies areas for reform to bring the country’s regulations and institutional arrangements more in line with international best practices. It demonstrates how a proportional, clear, and efficient regulatory framework can drive improvements in Brazil’s economic performance and the welfare of its citizens.