Corruption in Brazil

Brazil corruption is this and that... but that said, brazilians are in general, always lurking on methods of fiscal evasion, instead of a plain open co-op protest against the high rates, and always personally seeking advantages, instead of boosting neighborhood centers and actively participating in charity and/or volunteer work. Every people gets the government it deserves.

BUT, and a big 'but' to it, there's light, a dimmer blink in the end of the tunnel: http://www.istoe.com.br/assuntos/entrevista/detalhe/104706_UM+HOMEM+FICH...

(use Google Translator, is not that bad :)

I don't see how the removal of this sports minister has any great effect on the upcoming sporting events in Brazil, but there are many other things they need to look out for. It seems that they have realized that there is a lot more responsibility when it comes to holding a sports gig than they may have thought. This includes there need to fix transportation, make the public safe, and work on that alcohol ban in order to gain, probably a good portion, of the money that is made at these sporting events. Hopefully these can be done soon. With there president not being able to get things passed because of Congress, sounds a little bit like the situation in America, and let me say, it is hard to get things done. With the publicity of the World Cup and Olympics, I hope Brazil will leave a remarkable impression.

This is a shame. With a struggling country like this corruption is not needed. I just read an article that said that businesses should start implementing religion and I think that the economic side of governments should do so. I think with morals and integrity corruption goes down. I also think if people were more concerned and also had a larger vote and also if people actually knew what was going on this wouldn't happen. In poorer countries, people are working so hard that they are not focused to the corruption going on by their leaders. This however is slightly not the case by Brazil is a large and prosperous country. I blame the citizens because they should expect more from their leaders and be more observant.

guest-iesnjmo, your note says more about you then about me. You must be a truly shameless person to post such explicit physical attack against another person in an international forum.

Your note also shows the radicalism that permeates Brazilian politics ever since PT came to power. That's Lula legacy and people like you are his creation and your post is the proof of it all. This is not the Brazil I know or the Brazil I want.

You should be ashamed of yourself and all your cumpanherus.

The right financial conditions would allow the country to become the Singapore of Latin America.

Panama is in fashion these days. The increase in GDP per capita is among the highest in Latin America, has investment grade with a positive outlook, and it has gotten out of the OECD’s gray list and it has a solid banking system. But that’s not all: the canal passing through its territory will be expanded from 2014, and Panama not only has the second largest Free Trade Zone, but also has a huge investment plan in infrastructure. It is estimated that by 2020 Panama will double its population and GDP. These are just some of the good news that has generated this small country of less than 100,000 km2 and 3.5 million people, and explain why a growing number of multinationals and foreign professionals have chosen it as an investment destination and business.

However, for now, the Panamanian stock market is very underdeveloped. For now.

Panama has a tremendous opportunity to become the Singapore of the Americas. But this has to overcome a big question, a big if. If you can complement everything that has successfully differentiated services in the rest of Latin America and in many areas directly compete with Miami. If it can be incorporated into a modern efficient banking system and stock market to build a strong financial system. The aces that are there in Panama to achieve this are a modern legislation (1999) which includes indirect ownership, the territorial tax system for income tax and the U.S. dollar as its functional currency, which coincides with that of the remaining savings Latin Americans.

This differential stock market could come from the public offering of debt securities and equity of small and medium Latin American companies are encouraged to list its shares on the Bolsa de Valores de Panama, assuming a lower cost than on Wall Street, and recorded in Panama’s dollar-denominated bonds already authorized in their respective countries of origin.

The Panamanian market could raise debt and equity issues of small and medium-sized multinationals.

This last point in the supply of debt securities would meet the demand created by the liquidity of the local banking system idle, lack of investment vehicles for institutional clients, corporate and retail Panama, and the fate of dollar savings Latin Americans out of their countries in bank accounts are not reversed. These could be the main buyers of debt securities and equity of companies in their own countries to come to invest in a home called Panama that offers legal security, confidentiality and tax advantages.

Today the Panamanian market is small, shallow and is concentrated in a few local holders, mostly banks, which hinder the development of a securities market. In part this is because there is no greater supply, and emissions from private companies are structured and underwritten by the banks until maturity, but not allowing the democratization of capital. Its atomization benefits only the small and medium investors, but the issuers.

Part of the challenge then is to get an overview of all stock market participants, including the regulator, issuers, brokers and investment advisers to make the Securities Hub of the Americas a reality. This is a great opportunity and a cure for myopia that today does not allow us envision what would the massive participation of local and foreign customers who buy securities in USD or even in their home currencies.

It would mean that foreigners who acquire securities in Panama not only more dynamic financial system, but also banking. This means more business for more than 70 securities firms licensed to operate in Panama.

This means that the most important houses in Mexico City, São Paulo, Bogota, Lima, Santiago, Buenos Aires and even open up branches or correspondents of Panama, thereby generating in Panama on Latin American stock markets in dollars. For now, however,this is only a personal view.

It's not the political system or any particular government, stupid; it's the judiciary system, which is FOR SALE since 1889, as every political (huh?) analyst knows.

I think that the problem of corruption never ends in Brasil because young people , who is in college doesn't worry about the nation Brasil, only if they could stay pursuing the same benefits or how to get it .They were disapointed or dazzle ,and the only thing that they think is how to go out from Brazil.

UKExpat, fair enough. But I bet you've already heard the all-too-common tale according to which Brazil's problems could be solved by eliminating its poor people, or maybe if the military had "properly killed" rebels in the 1970s. As you have noticed, corruption is not a feature of government, but is pervasive in society - if fact, those most vocal about it are the same people who buy & sell property in cash to avoid the taxman, drink & drive and then bribe the police etc. It's a cultural matter.

And wcfraz3, the superpower thing - overblown or not, but true at least to some extent - will be happening in spite of rampant corruption. If my sources are correct, Brazil is still sort of ok when compared to India and China. It is a deterrent of course, but by no means an unsurmountable obstacle - and that is in fact part of the problem. Given actual trends, the country will be able to rise to great power status without eliminating some of its long-standing problems, which means fighting those problems is something that has to be done regardless of power politics or economic prosperity matters.

wcfraz3

"Hopefully these losses in ministers have only been coincidences and are not signs of a corrupt government."

Hopefully the almost routine payments made everyday by motorists in Rio de Janeiro to the police to let them off with traffic offences (real or trumped up) aren't signs of a corrupt police force either.

Having a corrupt sports minister, in lieu of Brazil being the host of the World Cup is not a good look for them. I've been all far Brazil and their rise to superpower status, but considering all of this corruption in legislation, I'm beginning to raise my eyebrow at the political workings of the Brazilian government. Hopefully these lost in ministers have only been coincidences and are not signs of a corrupt government.

@UK Expat part 2
4)Government has traditionally comprised of the middle classes.
The elites have traditionally comprised a few ruling families
who established their fiefdoms in the Northeast and in the
industrial centers of the South. There is no way that a country
can change if more than half of the power is concentrated within
the government. Had Brazil developed a true middle class (not the
lower middle classes of today badged as "Middle Class European/US
styled", it is possible that they would have demanded changes
sooner since they were not part of the system. However, deeper
changes are slow to occur, Brazil may become the 4th largest economy by 2050, but its quirks such as an underdeveloped Northeast compared to the Southeast, and favelas (albeit upgraded due to some economic trickle down) will remain part of Brazil's fabric.

UK Expat wrote:

"My question is this: if the situation in Brazilian politics is so bad (which it undoubtedly is), then what can the population of Brazil do about it and why isn't it being done?"

1)Brazilians are too complacent, and have been for several decades.
They have an erroneous fervent belief that the government is
the solution to their problems. No matter how grievous the
government treats them, they still hold on to the believe that
the government is the solution (not the problem as anyone
outside of Brazil can plainly see).

2)There is no grass root political movements to dislodge
the obvious offenders who behave like Jose Sarney,
the late ACM, Collor de Mello (who came back to the
government after being indicted to be impeached on serious charges). For every Palocci dislodged, there are hundreds
that go on unscathed.
The Press have gained greater latitude in reporting corruption and
malfeasance compared to the Generals era, but without a serious grass roots movement and the sheep, er, the people roaring like lions like Bastille, France Brazil old ways will be present even
in 2050 when it is supposed to be the 4th largest economy in the world.

3)Though Brazilians will show you laws addressing such
problems and progress made, the truth of the matter is
there is no oversight with a big bite.

Policing / Battling drug traffickers is the duty of governments.
Human Rights No one could argue against that principle. However,
Using a belt fed HK21 machine gun like the BOPE
(Rio's SWAT) utilizes in densely populated shanties
(favelas) causes extrajudicial killings and collateral
damage. Only in Brazil does the police gets away with
abuses unscathed.
http://military.wikia.com/wiki/Heckler_%26_Koch_HK21
http://en.wikipedia.org/wiki/2010_Rio_de_Janeiro_Security_Crisis
http://www.youtube.com/watch?v=gDuvCZCrN5s
http://www.youtube.com/watch?v=tg4TyjyX2Ho

If Brazil really cared about its people, it would have not
allowed the Favelas to grow so grotesquely huge and would
have worked to promote better opportunities for the poor to
have a developed nation like middle class living. One thread that ties Latin America is the disdain for the poor and the subhuman/inadequate housing.

Even someone like Pablo Escobar did for the poor what the
governments and society would not. Build houses for the poor.
http://1.bp.blogspot.com/-WN14sfv0BRQ/TgvkODfX_2I/AAAAAAAAAFc/Rb6yCCKmIb...
http://www.youtube.com/watch?v=xxLVgNkGGrc
A Favela/Tugurios/Rancho/Colonia ( all = Shanty) is not a habitat
for humanity.

South Africa is way ahead of Brazil with bonafide middle
class housing (see photo below).
http://business.in.com/media/images/2010/Jun/topimg_4132_thabomkhize_600...
http://business.in.com/article/south-africa/south-africa-rise-of-the-bla...

Infrastructure - Just look at Maracana Stadium and the Paulo de
Frontin elevated highway (both collapsed in
part due to shoddy construction). Brazil is
weaved with lots of construction disasters
due to lack of oversight and shoddy/corrupt
laden brinkmanship.
http://www.historiadorio.com.br/ingles/viadutos/paulofrontin
Brazil has not finished two major projects since the 1970s.
What portion of the delay is due to corruption? If there were
true oversight, the people would know.

Recalls - A recall election which took Gray Davis out of office
as California Governor would never happen in Brazil. Why?
Because Brazil is a Democracy in name only. A movement on tax
limits initiated by Howard Jarvis and Paul Gann which became
law in California would equally never happen in Brazil. Why?
Because legislators in Brazil think they of themselves to be above those who they represent. As such, they afford themselves all
sorts of perks and benefits that would be a major no no in
major European nations and in North America (excluding Mexico,
of course). The will of the people is more like the wish of the
people. They wish a better government, but have no will to make
it happen.

And as for...

"corruption will not be solved by replacing one party for another in government."

I think you'll find that that is EXACTLY how corruption is solved. You talk about democracy. THAT'S democracy.

I meant to say...

Krakadoum:

"I am just pointing out that eliminating a sector of society - whether racial, religious or political - is no answer for any nation's troubles."

I never said it was. Stop it.

Krakadoum:

"I am just pointing out that eliminating a sector of society - whether racial, religious or political - is no answer for any nation's troubles."

Neither am I. Stop it.

I don't think that the problem is that people in Brazil are voting (as krakadoum inferred). I think that the problem is that they are voting for corrupt and incompetent politicians who are setting their own salaries astronomically high with seeming impunity whilst paying teachers and the police an absolute pittance.

The question, then, is why? Here's my attempt at a list of possible factors:

1. Lack of diligence (people not wanting to take the time to weigh up a responsible vote).
2. Tolerance of corruption (people voting for known crooks)
3. Lack of decent options (honest people not standing up and going into politics)
4. Lack of education (people lacking the basic standard of education required to overcome emotionally-compelling political marketing material and make an informed choice for the long-term good of the country)

Looking at the above, I would say that the one thing that would certainly help the situation would be a decent education system up to the age of 18. This is precisely what Brazil lacks, and is precisely what the politicians are neglecting the most.

UKExpat, someone did say it, as you recognized. I am just pointing out that eliminating a sector of society - whether racial, religious or political - is no answer for any nation's troubles. As less-publicized scandals throughout the country show, corruption will not be solved by replacing one party for another in government.

I do understand that there's an individual moral component in corruption, but this clearly does not explain this nation-wide scourge. It truly saddens me that the opposition does not have a credible plan to fight corruption, or even a non-credible, but concrete, project, based on what some other country has done. All we hear is that they are inherently "more moral" than their opponents, followed by some rant about the late Soviet Union or the moribund Cuba. Does that really convince anyone who is not yet convinced?

Krakadoum

The "final solution" was a term that Hitler used refer to the murder of millions of innocent jews. I merely asked what could be done about the problem of political incompetence and corruption in Brazil. Not quite the same thing. And if you're going to put something in quote marks please make sure someone actually said it first.

Krakadoum said: "The system is flawed. Yes, shame on Lula and Dilma for not having pushed harder to change it, but well...a certain other government also lasted for eight years and also does not seem to have meaningfully contributed to fixing this problem. Or has it?"

Krakadoum, I have only 1 word for you: PRIVATIZATION!

Ah, the Brazilian elite. Even some of those who presumably have been following the Economist's balanced coverage cannot avoid reverting to Veja-mode when expressing their opinion regarding the "final solution" (btw the ridiculously biased press does have an important role to play, and I'm all in favour of it publishing the scary stories; but you certainly can't form a reasonable opinion based on that of people who are essentially paid to attack the government on a daily basis).

Have you not got the message? The system is flawed. Yes, shame on Lula and Dilma for not having pushed harder to change it, but well...a certain other government also lasted for eight years and also does not seem to have meaningfully contributed to fixing this problem. Or has it? Everyone knows the re-election amendment wasn't approved by an altruistic Congress, thinking about the Good of the Nation...

Of course, you can see how the same people who accuse the Workers' Party of having "the most corrupt government ever" (pfff...does the acronym ACM ring a bell?) would jump at the party's throat if they tried to change the political system in a realistic way. Do you seriously believe Serra's government would have been in any way different in this regard? If anything, with the support of less than a third of Congress, he would have had to pay an even more expensive price for political allegiance.

And no, the way out of this is not less democracy - like secretly hoping the poor people stop voting, or the always tempting military solution. The way out of this, for the opposition, is to understand why the Brazilian people massively support the same leaders the elite's press blames for all the country's troubles. Stop looking at the headlines for a second and take a look at the statistics. There's a slight chance the life of the people may be getting better - some of them even may be having access to goods, services and opportunities their parents could not dream of. This is not a flaw of democracy, as your comments about Bolsa Família seem to imply. This is the goal of democracy. Get used to it - it's not going away.