Judicial reform could boost Brazil's competitiveness

While tax, administrative, and political reforms are frequently discussed as essential for improving Brazil's business environment, the modernization of the Judiciary represents an equally strategic, yet less debated, transformation with profound economic implications. Legal certainty, predictable decision-making, and an efficient justice system are fundamental pillars for sustainable development.

From a legal perspective, the reliability of the judicial system is a primary concern for businesses, financial institutions, cooperatives, and investors before even considering tax or regulatory aspects. Although Brazil's Judiciary boasts highly qualified professionals and plays a vital role in preserving the democratic state of law, it faces the challenge of managing an immense volume of cases. This volume impacts the speed of judicial proceedings and contributes to a perception of insecurity among economic actors.

Therefore, the renewed debate on judicial reform is highly positive. The focus should be on concrete effects for society and the economy, aiming for a more efficient, predictable, and technologically advanced judicial system capable of delivering consistent decisions within a timeframe compatible with business dynamics. Predictability is perhaps the most valuable asset, ensuring that consolidated understandings and precedents are respected, thereby reducing uncertainty and stabilizing the business environment.

Furthermore, an efficient judicial system significantly strengthens credit recovery. When assets can be recovered swiftly and securely, financial operation risks decrease. This benefits banks, credit cooperatives, fintechs, and other market players, potentially leading to increased credit availability, more competitive financing costs, and the expansion of productive activities. Ultimately, enhancing judicial efficiency translates directly into broader access to credit and stimulated investment.