No Major Effect

Paulo Sotero – The Cipher Brief, 08/05/2016

The Olympic Games in Rio de Janeiro – starting today – had the potential to boost Brazil’s international image. Director of the Wilson Center’s Brazil Institute and Brazil native, Paulo Sotero, tells The Cipher Brief’s Kaitlin Lavinder that this was always an exaggeration. However, he says the Games are somewhat of a missed opportunity.

TCB: If the Olympic Games in Brazil go well – that is, if there are no major security breaches and if the competitions run smoothly – what will this do for Brazil’s international image? And, conversely, if the Games don’t go well, what will be the effect?

Paulo Sotero: I think in either scenario it will not have a major effect. If things go reasonably well, people will understand that this is what happens in major sporting events globally. Before, there’s always a tendency to exaggerate or highlight the negatives: that the country’s not ready, that the venues will not be ready in time, and that the country has various negative aspects. And then, when you come closer to the events, people realize that what needed to be ready was, in fact, ready.

Read more…

Rio succumbed to the Olympic spirit when the torch landed — but not for long

Dom Phillips – The Washington Post, 08/03/2016

With samba dancers, drumming and a heavy police presence, the Olympic torch landed in Rio on Wednesday morning amid signs that many in the city are finally beginning to succumb to the spirit of the games.

The good mood didn’t last long.

The day started with smiles and ended with police firing tear gas and rubber bullets at protesters in an outlying town. Along the way, a torch carrier bared his buttocks in a novel protest against Brazil’s unpopular interim president, Michel Temer.

Read more…

Olympics meant to showcase Brazil’s emergence, now spotlight its collapse

Andrew O’Reily – Fods News Latino, 08/02/2016

Seven years ago when Brazil’s then-President Luiz Inácio Lula da Silva announced that Rio de Janeiro would host the 2016 Summer Olympic Games on the city’s famed Copacabana beach, there was the feeling in the air that something momentous was about to happen in the South American nation.

Lula promised Brazilians that the Olympics and the 2014 World Cup would showcase the country as an emerging power on the world stage that could stand shoulder-to-shoulder with the likes of the United States, Western Europe and Russia.

For Brazil, he suggested that day in 2009, the sky was the limit.

Read more…


Businesses Signal Approval of Brazil Leadership Change

Rogerio Jelmayer – The Wall Street Journal, 05/12/2016

Businesses and investors are cheering the new leadership in Brazil following the suspension of President Dilma Rousseff, who many blame for a deep recession and crumbling finances in Latin America’s largest economy.

Vice President Michel Temer, who officially will replace Ms. Rousseff later Thursday as she steps down to face an impeachment trial, is expected to quickly propose measures to cut spending and rein in entitlements.

Mr. Temer could reduce the number of government ministries — more than 30 exist now — and the potential leader of his economic team is looking to tame budget deficits. These measures aim to shrink a massive budget deficit and restore investor confidence.

Read more…

Is Brazil giving up on growth?

Kenneth Rapoza – Forbes, 04/25/2016

Inflation is down nearly 100 basis points from a few months ago, but the Central Bank of Brazil has no intention of lowering interest rates. Investors should take this coming Wednesday’s meeting as a cue whether or not there is a growth strategy anywhere in Brasilia.

Nomura Securities said that they are forecasting the Bank to keep rates at 14.25% even though inflation is coming down. Brazil’s rolling 12-month inflation was as high as 10.7% in January. It’s currently 9.4%. Nomura has close ties to Brazil’s central bank and is good gauge of which way the wind is blowing on the monetary policy committee.

Brazil’s economy, expected to contract by around 3.5% again this year, is facing a massive political crisis. It would be good if the central bank could be more independent and cut rates to boost growth. On the other hand, sentiment among Brazil’s business class is so burned out with the twin crises of politics and economics that it is going to take more than a rate hike to improve things.

Read More…

VP Leads Brazil While Embattled Rousseff Travels

Rafael Romo – CNN, 04/21/2016

It’s a new chapter in Brazil’s deep political crisis, which at times reads like a tropical telenovela. The South American country now has a new president, although it will only be for a few days.

Brazilian Vice President Michel Temer is technically in charge of Brazil — albeit temporarily. How is this possible? It’s all thanks to a particular clause in the Brazilian Constitution which implies that if the president in power leaves the country, the vice president assumes control of the executive power.
His former running mate and current political rival, embattled President Dilma Rousseff, is visiting the United States and plans to attend a climate conference in New York on Friday. That means Temer is not only calling the shots at home, but has effectively become the president … until she returns.

Brazil’s Political Crisis, Explained

Zack Beauchamp – Vox, 04/21/2016

Brazilian President Dilma Rousseff is in the midst of a stunning fall from grace.

In 2013, Rousseff had a roughly 80 percent approval rating. Today, it’s around 10 percent. Just this Sunday, one house of Brazil’s Congress voted to impeach her.

The story behind Rousseff’s collapse is extraordinary — but also a bit complicated. If you’re just learning about it, it might be a little bit difficult to parse why Rousseff is in so much trouble, and why this is all blowing up now.

Read more…

%d bloggers like this: