In 2016, I wrote a post in this same space commenting on the placement of Brazil in the Agility Emerging Markets Logistics Index (AEMLI), ranking that classifies the most promising logistics markets among the main emerging countries in the world. At the time, the country occupied the 6th position and poor governance had been pointed out in the survey as the main factor preventing Brazil's growth. After 5 years, the problems were not solved and disbelief about the country increased among foreign executives.
In the ranking published in 2021, Brazil occupies the modest 16th position among the 50 countries participating in the analysis. The best placement in the country was a second place in 2014, second only to China. Since then, the country has been consistently falling in position.
Figure 1: History of Brazil's placement in the Agility Emerging Markets Logistics Index (AEMLI)
Source: Agility. Adaptation: ILOS
As of 2019, the survey methodology has been improved and now takes into account 3 main dimensions:
Figure 2: Analysis dimensions in the Agility Emerging Markets Logistics Index (AEMLI) 2021
Source: Agility. Adaptation: ILOS
In 2021, Brazil remained in the 16th position obtained in 2020, but had its score reduced from 5,24 to 5,21. The country was behind several Asian nations in the ranking, also losing to two Latin American countries: Mexico and Chile.
Figure 3: Top 20 in Agility Emerging Markets Logistics Index (AEMLI) 2021
Source: Agility. Adaptation: ILOS
While in the dimensions of "Domestic logistics opportunities" and "International logistics opportunities" Brazil obtained the 8th and 9th positions respectively, the country was only the 36th placed in the dimension of "Business fundamentals", pulling it down in the ranking general.
Even living a troubled and uncertain moment, foreign executives pointed Brazil as the 4th with the greatest potential among emerging countries:
Figure 4: Emerging countries with greater and lesser potential according to the Agility Emerging Markets Logistics Index (AEMLI) 2021
With an abundant supply of natural resources, favorable geography and a huge population, Brazil has always been identified as a country of enormous potential and often known as the “country of the future”. If in 2011 the Brazilian GDP occupied the 6th position in the world ranking and even aspired to the 5th place, in 2021 the expectation is that Brazil will only be in the 13th place. Corruption, poor planning and wrong government decisions led the country to a serious financial crisis and drove foreign investment away from the country. In addition to the political chaos, today the country is also experiencing a health crisis as a result of Covid-19, bringing pessimism and disbelief. However, the potential for growth exists, and with changes, planning and investment, it is still possible to believe that one day Brazil can become the “country of the present”.
References:
– Agility – Emerging Markets Logistics Index
Fernanda Monteiro
More than 11 years of experience in training and consultancy projects, focusing on Logistics and Supply Chain. In consultancy, he carried out projects such as Transformational Logistics Plan, Diagnosis of logistics operations, Strategy and Calendarization of Transport Operations, Measuring the Cost of Serving, Market Study, Mapping of Inventory Reduction Opportunities, Review of the S&OP Process, Management Plan Training and Implementation of Commercial Processes in companies such as Nestlé, Raia Drogasil, Ipiranga, Lojas Americanas, B2W, Coca-Cola, Andina, Embraco, Martins Atacado, Loja do Mecânico, Santo Antônio Energia, Ecoporto and Silimed. She is currently one of the teachers of the Inventory Management Course taught every six months by ILOS. She worked on the development and management of Online Courses in Logistics and Supply Chain, Supply Processes, Demand Planning, Inventory Management and Industrial Management. Still in the training area, she was responsible for applying ILOS business games in companies such as Raia Drogasil, Fibria, NEC, Novartis and Moove.
