Business

Economy Ministry set to go after IT subsidies

Economy Ministry set to go after IT subsidies
Brazil’s IT Law showed underwhelming results

In their 2003 book “Saving Capitalism From Capitalists,” Raghuram Rajan and Luigi Zingales wrote that “relationship” capitalism would have to eventually make way for arms-length capitalism as economies matured. In Brazil, that turning point has yet to arrive. In economics, the expression “Brazil-like capitalism” denotes cronyism and distortions. Dealing with a confusing tax system and a fairly ineffective state, organized lobbies battle to protect their own—mostly at the government’s expense.

One such drain—Brazil’s enormous range of subsidies—could be closed, however....

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