Coupled with the enormous size of its market, Brazil has long been open to and encouraged foreign investments, which is why it remains among of the world's leading investment destinations. The government advocates for both state participation in the economy and respect for the contractual rights of investors. However, despite a formally well-functioning business environment, several studies indicate that corruption and bribery are serious obstacles to doing business in Brazil. Especially in business dealings with the government at the local levels, corruption reportedly represents a serious threat.

Positive developments in relation to corruption and investment:

• Brazil is often cited for its strong legal framework aimed at curbing corruption, and the country is occasionally used as a role model when establishing legal anti-corruption frameworks in developing countries. However, effective enforcement of laws is a problem.
• Although the fight against corruption faces obstacles in terms of implementation and lack of political support, anti-corruption initiatives in Brazil are formally strong and well-developed.
• President Rousseff has adopted a zero tolerance approach towards corruption within her own government. In 2011 this stance resulted in the resignation of six ministers due to corruption allegations.
• In October 2011, the Congress passed a comprehensive Freedom of Information Law, forcing authorities to publish information on spending and forcing them to respond to citizen requests for information.

Risks of corruption:

• Companies operating in Brazil have to deal with a wide range of regulatory agencies due to the federal structure of the political system, which may increase the likelihood of demands for bribes by public officials.
• Public procurement corruption is generally an area of dispute. While - for instance - the World Bank & IFC's Enterprise Surveys 2009 find that only very few companies expect to bribe to secure government contracts, multiple corruption scandals have emerged over the years, involving politicians and bureaucrats taking kickbacks from companies in exchange for awarding public contracts.
• The Brazilian tax system is complex and reportedly prone to corruption. It is reported that tax collectors frequently ask for bribes to relax assessments and inspections, to refrain from pursuing acts of tax fraud or to give advice on the legal possibilities of reducing tax obligations.