Arab Today, arab today oecd brazil should make reforms to consolidate achievements
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OECD: Brazil should make reforms to consolidate achievements

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Arab Today, arab today OECD: Brazil should make reforms to consolidate achievements

Rio De Janeiro - Xinhua

Brazil needs to carry out a series of reforms to consolidate its economic progress, the Organization for Economic Cooperation and Development (OECD) said Friday. \"Solid policies have helped Brazil face the global economic crisis, but the most notable thing is the unprecedented progress in terms of social goals, including the reduction of poverty and of inequalities,\" an OECD study said. To continue with this progress, the OECD suggested Brazil reform its tax and social security systems, prioritize its infrastructure expenses and reduce its interest rates. Also, the OECD suggested that the conditional cash transfer program Bolsa Familia continue and even be expanded. According to the OECD study, the biggest challenge for Brazil is to control its inflation rate. The country has accumulated an inflation rate of 4.97 percent in the first nine months of 2011, up from 3.6 percent in the same period last year. The inflation target for this year is 4.5 percent with a tolerance of two percentage points, which means the rate cannot exceed 6.5 percent. The country\'s latest annualized rate, however, has already surpassed that mark, reaching 7.31 percent from October 2010 to September 2011. The OECD praised the country\'s budget cuts that were announced in early 2011 and considered the government measures to restrict capital inflow, which soared this year, sensible given the troubled international economic situation.  

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