Regulatory Policy and Development in Brazil
Business activities in general are developed within and according to a set of rules of each country that give them a trustworthy legal framework in exchange for duties and obligations to which they should stick.
Some enterprises of special social interest are subject to a set of additional rules applicable only to companies that perform certain activity, provide certain goods and services or have customers in a certain situation.
Societies such as the Brazilian one that have low confidence in the accountability of private actors and consequently in their interest in avoiding social malfeasance place their security in the preventive restrictions imposed by the State.
This dynamic inexorably leads to multiplication and stacking of economic activities to avoid all possible damaging events.
Only the thoroughly tested is absolutely safe, only what already exists can be absolutely tested and only what is in the past may already exist to be tested.
As a result, economic activity becomes less dynamic, more adverse to all sorts of innovation incremental or disruptive, applied to products, processes, business models, or any other aspect.
Until a few decades ago, it was acceptable for Brazil to be an extractive or industrialized nation with low technological development, generating enough value only to sustain a small part of society. The rest did not have access to the power, information or conditions to pursue a better future.
Currently, the Brazilian population generally has access to voting, the internet, institutions, minimum conditions of food, housing, health and education. Currently, the Brazilian population can dream of a better life and a better Brazil.
The improvement of the living conditions of so many people still in need depends on exponentially accelerated development, which depends on the exponential generation of value, which only occurs with economic dynamism, with innovation of all kinds, with investments and sustainability of this positive cycle.
The contribution, therefore, that regulation can give is to be intelligent in giving freedom to the creative spirit of economic agents while preserving the protection of the population.
In our view, these two missions are not exclusive, but rather complementary and can be achieved through mechanisms of risk management, accountability, consistency and regulatory convergence.
Development comes from regulation in favor of competition and efficiency.
None of these concepts is new, everything is in the Brazilian Constitution, is to persevere in its application.