To use public money more efficiently and to help deter corruption, Brazil’s government is disclosing detailed information about federal spending—and giving citizens a clear view of their tax dollars in action. (Mckinsey report)

Although Brazil is a solid democracy with strong economic growth, inefficiency and corruption still hinder the country from reaching its potential. Until recently, Brazilians had no visibility into the ways the government spent their money. This lack of transparency meant that they could not hold it accountable for corruption or for the poor use of public resources.
Emerging solution: Brazil’s government is opening its books to the public through the Transparency Portal of the Federal Government, which publishes a wide range of information, including the expenditures of federal agencies, the charges of elected officials on government-issued credit cards, and a list of companies banned from contracting with the government. Bolstered by a recent law on information access, the portal is helping to create a new culture of accountability.

Historically, Brazilians had no visibility into government spending—which areas got funding, how efficiently public money was being used, or whether fraudulent activity was occurring. Over the past few decades, many high-profile incidents of flagrant corruption have sorely tested the public’s trust, hurt Brazil’s image in the corporate sector, and hampered economic growth. In the World Bank and IFC Enterprise Surveys 2009, 70 percent of global and domestic companies responding said they viewed corruption as a “major constraint to doing business” in Brazil. An investigation by the Federation of the Industries of the State of São Paulo found that, in 2008 alone, corruption cost the country some $40 billion (2.3 percent of GDP)—equivalent to about half its education budget.