The aim of this thesis is to research whether strong economic and political institutions make a difference on the society and global ranking of a country. Main questions asked in the introduction include: what factors lead to a country having weak institutions? And do reform efforts make a difference in that country in today’s environment? Brazil is the main focus country of this research for the very reason that it is a huge country with a huge population and even is growing economically everyday, but still why is Brazil ranked so weak on many indicators (e.g. corruption, doing business, and transparency). Case study on Brazil will be used to show the historical and political background and why it led to Brazil being the way it is today. Comparative analysis will be done with a few Other Latin America countries (e.g. Argentina, Peru, and Chile) to contrast the differences but also spotlight the similarities, whether good or bad. Closer to the conclusion, reform will be discussed and the proper protocol policy-makers must put in place to be equally (or at-least mostly) beneficially for all, as well as recommendations for the future will also be discussed.