Great news! Is it really?

The entire Brazilian media is celebrating the great news that Brazil has risen one rank on the United Nations Human Development Index (HDI). It has climbed to 79th place in the 2013 HDI report from 80th in the previous year. Wow, now that's something worth celebration isn't it?

What I can't figure out no matter how hard I try it this...

How can a country that is the 5th largest economy in the world, has more taxes than any other nation on earth, have such a consistently low ranking not only in the Human Development Index, but also Corruption Perception Index, and almost every other comparison between countries around the world. Does this make any sense at all? Is it really something to celebrate in the first place?

Cheers,
William James Woodward, EB Experts Team

James,

I understand where you are coming from, but we also need to realize that changes takes time.

The corruption culture needs to be rooted out first, but it's not an easy task when you consider the amount of money that we are talking about.  I honestly believe that there are good politicians in Brazil that are doing everything they can to change this, but it's like climbing Mt. Everest with no oxygen and light winter clothing.

It's like the Prohibition in USA all those years ago.  How many people can honestly walk away when a huge stack of cash is put in front of them?  Add to the fact that civil servants and office holders are not paid a lot, and more often than not you will get the this situation.

Free market system works in a way that rewards good performance with big pay checks.  My humble suggestion would be to bench mark the pay of the civil servants to the private sectors.  For example pay the top civil servants, the equivalent of what a CEO of major MNC is getting.  This will give added incentive NOT to be corrupt.

Next you need to have an independent agency, that is not liable to the power of the day.  With strict and equal rules for all regardless if you are the incumbent or opposition.  This will allow for better policing of the anti-corruption laws.

Of course this will not solve everything, but it would be a good starting place.

Put it this way, if you were paid USD5 mil a year.  Plus an axe over your head in case you break the law, you will be much less likely to commit a crime.  Or maybe I'm just too naive.

In any case that's just my thoughts.

I've been here a total of 31 years beginning in 1964. 

How much time do you need?   :-)