The CEO Game

Following the last two pieces on the rampant violence that is going on in Brazil: A Favela Love Story and Brazil Battles Crime Rates, we now move the focus to the outcome of the crime, and its counterpart- the Brazilian corruption, which stands in the way of a bigger, mightier and more prosperous Brazil just like the crime and violence do.

Despair, frustration, pain, misery, poverty, crime, violence and drugs are all common sites in Brazil and especially its favelas. But all of these things don’t concern nor bother Rio de Janeiro’s economists from proudly showcasing their presentations and plans for the Olympic village. The plans are ravishing indeed and have many ideas in store for Rio. For example in Copa Cabana, the most prime and well known beach location in Rio, a huge beach volleyball stadium will be built and not far away from there, the Olympic village and the rest of the facilities will be built from scratch too.

The governor’s house is situated only a five minute drive from the Rosana favela (which we mentioned last time on A Favela Love Story), but it seems to be as if it resides not only in a different place but in a totally different reality: with glittering chandeliers hanging from the ceiling and lavish oil paintings hanging on the walls. It’s clear for everyone that in order for the governor to keep his lifestyle, the peace and order must be kept. With raging crime including kidnappings and shootouts, maintaining the order is a key challenge and goal in order for the Olympics to become a success story.

Today, some six years before the games’ opening ceremony, crime is already providing for thousands of personal bodyguards in Rio and Sao Paolo. Moreover, the homeland security market (electronic fences, anti theft systems) seems to be doing quite well with 2$ billion a year and is getting popular by the minute, with many investors and companies worldwide competing over the Brazilian market and dough. Economy experts predict that these phenomena will keep growing, “until the opening ceremony, the security market will rise by 15% yearly” says one.

Everyone wants a bite from the cake, and with a 5$ billion cake (the huge Brazilian investment in the games’ security measures) it’s no wonder. Brazil has no state comptroller, you know, the guy who inspects that everything is legit. Because of that and due to a tradition of corrupted decision makers like many developing countries, the greedy and cheeky foreign investors are not playing fair. When “any friend of El Presidente’ is a friend of the national treasury” becomes a way of life, it is no wonder that companies and even countries, pushing hard their products without no respect for the standard bureaucratic procedures.

One of the protruding companies in the field of security there is ISDS. In the 2007 Pan-America games the company was involved in 20$ million deals. The company hires retired personal from combat units who train local bodyguards and policemen. But the market is a hard market, Brazil usually allows only deals who cut in the local Brazilian companies. Nevertheless, there is enough for everyone, but experts claim that it is still a bit early to discuss tenders for safe guarding the world cup games and the Olympics, because of the elections that will be held soon. “Many projects will be postponed to after the elections. These things involve a lot of lobbying, and people who are close to power and can influence the decisions made” claims an ISDS spokesman.

Although corruption roams in Brazil, some claim it is decreasing gradually. A sign for that is the fact that the tenders for the games will be open and managed online, so theoretically they will be “fair and righteous”, but many think that in Brazil which is corruption prone, the Olympic race for money will reveal Brazil’s uglier sides.

More on Brazil: Focus on Brazil, Focus on Brazil: Only Second to the US, Focus on Brazil: The Olympics to Boost Communications, Focus on Brazil: It’s in the Oil, Focus on Brazil: Brazil Battles Crime Rates, Focus on Brazil: A Favela Love Story and Will the Olympics be a Financial Success Story part one and two.

Omer Shachnai

The CEO Game.

After Brazil Battles Crime Rates we continue to question the Brazilian crime and violence which are standing between Brazil and its dream of being all that it can be.

If you would have asked any ordinary Brazilian who lives outside the favelas to go inside on his own and roam the place, he would definitely refuse. The reason? The cramped favelas are filled with armed drug gangs who control the streets. Drugs are trafficked in broad daylight, when children 13-14 of age sell them on the street corners. Beside pinpoint operations the police try to avoid showing any presence there.

Brazilian Favela

Anyone who wants to see it on his own eyes can go ahead and do it in an organized tour. In the beginning of the tour the guide, who works for the Brazilian office of tourism, warns everyone not to take any pictures. “Lately, the gangs have started shooting at tourists who insisted of taking a photo in order to warn them”, he explains. Gang members, have also shot down a police chopper lately, using an automatic rifle. At the same time, more than 25 people were killed in the clashes between the police and the gangs and all that happened in the favela which is located just a shout away from the famous Marakana stadium, which is supposed to host the 2016 Olympics’ opening ceremony.

Most tours then wander around the alleys of the favela, which houses some 200 thousand people. There are many favelas around Rio but they are common site around most Brazilian cities. When you look outside from the Rosana favela near Rio, you can see the famous Jesus statue whose hands are spread and you can look upon the beautiful coastline. On the contrary, one look to the inside and you can understand why the average price of an apartment in the favela is only 3,000$.

The houses are built extremely close to each other and are very cramped as mentioned above. Beside crime the favelas are plagued by sewage, hygiene problems and litter with syringes lying around, a sad sight. Most apartments in the favela have only one room, deluxe ones have a couple. Between the apartments you can see improvised phone and power lines, this is what happens when the authorities are not functioning and the residents take care for themselves, including water, electricity, telephones and even health and education services.

The Brazilian government has failed to wipe out the favelas in the last 30 years and by now the authorities have already realized that they wouldn’t succeed in doing so by the time the Olympics begin also. What will they do? Seems like no one in Brazil knows the answer for that. Some argue that they would either invest heavily in infrastructures, water and education or hand out large amounts of money to the favelas’ residents in order to buy tranquility for the time of the games.

Some measures are already being taken. The government has decided to build walls around the favelas of Rio de Janeiro for instance. The authorities have explained that the irregular move is supposed to protect the rain forests from the favelas’ expansions, but they were showered by harsh criticism both from human rights activists and from the residents of the favelas.

In conclusion, there is no solution in sight, the favelas’ sad and striking day to day reality will go on regardless of the games. It seems that just like China who hosted the last Olympic Games, the government in Brazil is seeking a fast and temporary solution to a permanent problem. Even if they would “succeed” in lowering the crime rates or dealing with poverty, literacy and other problems before the Olympics’ kickoff, all those problems will come a knocking’ a second after the games end just like they did in China.

More on Brazil: Focus on Brazil, Focus on Brazil: Only Second to the US, Focus on Brazil: The Olympics to Boost Communications, Focus on Brazil: It’s in the Oil, Focus on Brazil: Brazil Battles Crime Rates and Will the Olympics be a Financial Success Story part one and two.

Omer Shachnai

The CEO Game.

This time on Focus On Brazil, The CEO Game puts the focus on the Brazilian sky high crime rates. Despite of everything said until now, Brazil is still facing tremendous problems related to crime, violence and especially drug trafficking which it must overcome in order to fulfill all its dreams.

Even the most hardcore optimists who dream, think, breath and believe in Brazil and its economy know: Brazil’s root problems aren’t just going to fade away. Brazil is facing some harsh domestic problems, the most protruded and blunt one is the issue of homeland security. Saying that it is a good idea to wonder around in the streets of Rio de Janeiro and Sao Paolo after the sun sets, is an Understatement. The Favelas, which are Portuguese for ‘slums‘, continue to be magnet for crime and violence, and perhaps its cornerstone.

Homeland Security Problems.

Brazil knows, without a dramatic decrease of the Favelas and a solution to its residents’ poverty, Brazil just won’t become the country it wishes to be. And what are these Favelas actually? The Favelas are huge neighborhoods which were built illegally, without any organized plan for the long run. All Favelas suffer from lack of infrastructures, few are lucky enough to have water or electricity. On the contrary, the worldwide famous and legendary Brazilian soccer players such Pele and Ronaldo, grew up on the streets of the Favelas, where they played soccer with ragged balls.

Today, the Favelas’ population is well over 6 million, which is a lot. It is hard to even imagine- nearly five percent of Brazil’s population is spending their lives living like refugees. Again, these are only residents of the Favelas, one must remember that poverty and crime isn’t restricted to their borders.

The phenomenon of the Favelas began in the end of the 19th century, in the era when slavery was abandoned in Brazil. What happened is that slaves the were recruited from the country to go and fight neighboring Paraguay, returned home from the battlefield but had no place to go. The government didn’t provide them with any housing. Having no choice, the returning soldiers settled down anywhere they could. In Rio de Janeiro they seized the beautiful hills surrounding the coastline city.

In the 70’s the numbers of the Favelas’ residents raised dramatically. The cause for this upset was the farmers and other residents of rural areas who streamed to the cities. Along the years, the Brazilian government and humanitarian aid services attempted to improve the situation of the Favelas, the last time was in 2007 during a program initiated by President Lula. Some of the Favelas’ residents actually recovered due to these initiatives, but a significant and profound change is still not in sight.

We will continue to cover these issues which as aforementioned are the ones standing between Brazil and the dream of being all that it can be on the next time. Moreover we will shed more light on Brazil’s battle in crime, and try to answer how the 2016 Olympics will influence it.

More on Brazil: Focus on Brazil, Focus on Brazil: Only Second to the US, Focus on Brazil: The Olympics to Boost Communications, Focus On Brazil: It’s in the Oil, Will the Olympics be a Financial Success Story part one and two.

Omer Shachnai

The CEO Game.

After discussing Brazil’s communications and how the Olympics would boost Brazil’s communications, we continue to cover the story behind Brazil’s rocking economy: This time the focus is on one of Brazil’s biggest national resources- oil.

If you ask experts where is Brazil’s biggest treasure hidden, they would probably answer- a couple of kilometers offshore, east to Rio’s golden beaches, in the deep waters of the Atlantic Ocean; and what might it be? The black gold of course. Two years ago, huge deposits of oil and natural gas were discovered there, making Brazil one of the key oil producers in the world. This revelation came a year after Brazilian president Lula announced that Brazil is not going to be reliant on oil importation anymore, after it supplied nearly 70% of Brazil’s needs.

Fueling Brazil's economy.

From the offices of Petrobras, the national oil company, you can see one of the finest views in Rio- Sugarloaf Mountain, which is a part of a ridge of mountains that form the city’s beautiful bays. Behind the thick glass windows you can find the company’s CEOs working hard on development and expansion plans for the next years, which most companies can only dream of. In the past year, Petrobras had raised bonds totaling 32$ billion and in the upcoming decade they plan to purchase some 300 ships and other sea vessels while the whole world seems to be suffering from a crisis in the shipping industry.

Petrobras controls the oil business from A to Z: from production of oil and alternative energies, to running the refineries and finally selling fuel in gas stations. The company, the 2nd largest in the world in its field, is traded in a total of 200$ billion. Today the company is making 2 million barrels of oil equivalent per day and until 2020 they promise to double that amount. They also plan to triple the production of natural gas. Talk about ambitions.

A big part of the company’s agenda is devoted to creating green and alternative energies, such as ethanol, which is a natural fuel that can be made out of sugar canes. Petrobras plans to invest 4$ billion in the close years on research and development and moreover to spend 2.8$ billion on bio-diesel. At the same time, the company plans to increase ethanol fuel production times four. This fuel, is meant to decrease the pollution of carbon, but there is some controversy surrounding if it is really environment friendly (cost effective in Brazil), since the vast areas of land which are used in the south for growing the sugar canes, cause land prices to rise, hence pushing all other farmers north to the Amazon- which increases the destruction of the rain forest.

The “green gas” continues to be an important part of the Brazilian driver’s daily routine. This is the only country in the world where fuel consumption and ethanol consumption are almost equal: 49% of the cars consume fuel, while 51% consume ethanol. Wow. In 95% of the cars there is an option to increase the amount of ethanol at the expense of the regular fuel. Each day the drivers compare the prices and then decide which to consume more.

Despite this abundance of energy, oil prices will continue to swing and remain unstable for the next few years. Although oil consumption will decrease due to the usage of alternative energies, there is still going to be a need to increase oil production because of the natural rise in the amount of consumers. Also, the president of Petrobras has predicted that the world’s daily oil production- 85 million barrels per day, will multiply itself by 2030 in order to meet these demands.

In conclusion, if companies like Petrobras in particular and Brazil in general fulfill their plans, Brazil will become the biggest energy powerhouse in the world after Saudi Arabia, all while leading a change in green energy production and consumption.

More on Brazil: Focus on Brazil, Focus on Brazil: Only Second to the US, Focus on Brazil: The Olympics to Boost Communications, Will the Olympics be a Financial Success Story part one and two.
Omer Shachnai.

The CEO Game.

Following our latest article on Brazil, Brazil Only Second to the US, in which we discussed just how Brazil has become the leading and biggest economy in South America, The CEO Game moves the focus to the Brazilian communications and the possible effects of the 2016 Olympic games to be held in Rio de Janeiro, on them.

Brazilians are the world's surf champions.

Beside being well famous for their wave surfing skills, the Brazilian people are also the world’s record holders of web surfing. Why are we telling you this? Good question. The answer is that Brazil is booming in terms of communication, everywhere you look around there are investors who are bringing in big bucks. Take GVT’s acquisition for instance, GVT is a communications company operating in Brazil, which was bought last month for 4.2$ millions. Big bucks indeed. Their success is protruded by the country’s status ten years ago, when vast areas of Brazil lacked telephony infrastructure like the rain forests and the Amazonas.

Until a couple of years ago, the situation in the big cities resembled the one of a developing country in the 70’s: the citizens would have to wait for years in order to get a phone line in home and would suffer from poor and sluggish services. Today, Brazil has got 140 million mobile users, 40 million registered phone lines and more than 10 million broadband Internet users.

Considering the fact that 192 million people live in Brazil, these three “quotes” are still far from fulfilling their potential. In the field of mobile phones, the most satiated field of all three, 80% of the users- most of them belonging to the low class, do it by a prepaid card. If Brazil continues to grow, it is obvious that the number of users who pay monthly to the cellular companies will rise. In the end of the 90’s, the government had decided to expand the wired communications infrastructure in the country by increasing the competition.

Therefore, Brazil began creating “mirror auctions“, which allowed private companies to found all across Brazil, rival phone companies that will compete with the big government’s companies which ruled over all the place. “The transition that Brazil has made in the field of telecommunications, goes hand in hand with the vast changes the country is going through in the last decade”, explains the CEO of the aforementioned GVT. “What happened in GVT- couldn’t happen in a different developing country- the rise in the life quality of entire demographic layers, created a huge demand and market, which is growing on a daily basis” he added.

One of the reasons for the competitiveness in the field is the very existence of a strong and independent regulator. This regulator answers to the name of Anatel and is composed from 5 officials that where appointed by the Brazilian congress and cannot be fired. Sweet working conditions. “A strong regulator can make decisions that don’t serve the companies’ interests and no communications company can stand in the way“, the CEO says. The Brazilians are notorious for being web addicts, like mentioned above they lead in the number of surfing hours per person. Yet, only 10 million citizens are surfing via a broadband connection and even in the main cities it is sometimes hard to find wireless networks.

They surf by using a regular phone line. This antique method of surfing, has a different tariff from a regular phone call and in the weekends and nights the prices are real low. The Brazilians simply prefer this because the price for a broadband connection is 30$ a month. Many companies earn millions of dollars just from the customers who use the phone line in order to surf the web.

The Olympics and the World Cup soccer games are expected to give a huge bolster to the broadband connection. In fact, the government has initiated a new national project its goal- in the year 2014 some 90% of the population will have a broadband connection (hurray). The project is just another step for the telecommunication market in Brazil.

In conclusion, as far as the Brazilian communications go, there is still a huge potential. After the mobile phones and Internet bandwidth, the next profitable area will be cable TV. Because of legal problems, there is only a small infiltration of cable TV in Brazil. In spite of it, there are signs that things are starting to change and there is a big chance for profits.

Omer Shachnai

The CEO Game.

After the kick off article Focus on Brazil, we continue to cover the story behind Brazil’s economic boom. This time we focus on the roots of this financial revolution; Brazil’s financial carnival began in the middle 90’s when the inflation was lowered, foreign exchange and investments became available and many government institutions were privatized. Since then the financial boom gave its toll and over the years many Brazilian companies became giant worldwide corporations, such as the national oil company Petrobras, the mining company Vale or Embraer- one of the biggest private jets producer in the entire world. So, what’s the story behind the now so obvious Brazilian popularity and success? Where did it all start?

Coffee beans' high price helped Brazil

While the whole world is suffering from a decrease in foreign investments because of the financial crisis, the same kind of investments in Brazil grow by 30%. This is only one of the reasons why Brazil is the leading and biggest economy in South America and only second to the US in the entire American Continent. “There is consent between South American countries about Brazil: They all agree it is the leading country” according to experts. “If once Brazil, Argentina and Mexico disagreed about who is leading the flock, it’s now clear to both the latter that Brazil is the one”, they continue.

The success of this South American country also relies on luck and a lot of it. Brazil, the number one exporter of sugar canes and coffee beans in the world and a big exporter of cacao, tobacco and soy beans as well, has really enjoyed the continuing price rises of these commodities in the global markets in the last few years. Most of the wealth in Brazil, like other surrounding countries, is owned by a small part of society, while most of the citizens are living in poverty. According to the Gini inequality index, Brazil is located at the 10th place out of 126 countries, but it is a good improvement- in 1989 Brazil was ranked second.

These cracks in the Brazilian society are right there on the surface for everyone to see. Take Sao Paulo for instance, out of the city’s 10 million residents, 30 thousand are millionaires. It is hard to miss all the choppers which are swirling between the city’s skyscrapers, which nearly all of them have a landing spot. The millionaires simply prefer to skip the unbearable traffic jams by traveling by air and it shows: Sao Paolo is the leading city in the world in terms of private helicopters, surpassing New York and Tokyo. On the contrary, residents of the poorer neighborhoods can’t even pay a taxi ride.

Nevertheless, in the last few years the social gap is narrowing gradually. As mentioned in the previous article, the middle class has grown and then some. With more than 20 million Brazilians who joined it lately, it is a big impact. Still, millions of others remained poor but have managed to improve their financial status to some extent. The Global Bank also reported that between 2002-2006 the social deficits have narrowed by 6%. The man in charge is no other than Brazilian President, Luiz Inacio Lula da Silva, also known as “Lula”.

Born in the north, the Brazilian president had a poor childhood and had to work since the age of 14. He was elected as a candidate of the Brazilian labor party, while promising profound reforms. Because of political arguments and compromises he didn’t fulfill his promise to the end, but he did make a mark. The most significant step was a massive investment through loans by the government, in the citizens themselves.

Following the government, the private market also increased its credit eligibility. Ten years ago, only few Brazilians had a credit card, even fewer had a mortgage. Today, more and more Brazilians use and enjoy both. This in turn has helped the Brazilian market: millions of citizens became potential consumers of different merchandise, which in turn influenced investors to come flooding in.

Omer Shachnai

The CEO Game.

Brazil’s economy is on the up and growing rapidly as the swift pace of the samba, the national icon: the investments are flowing in, the investors are enthusiastic, the market is getting stronger and the gap between rich and poor is closing gradually. The CEO Game launches a special series of articles about Brazil, one of the hottest countries in South America and a rising powerhouse in the global scene, in order to shed some light on this Latin wonder and answer why all investors are going crazy for Brazil?

The ninth economy in the world

In Brazil, the land of the samba, even rallies appear like a carnival: balloons in all sorts of colors are flown into the air, bands are playing to the beat of the drums and the protesters are making themselves heard through singing altogether. That’s just how the 50 thousand workers of the major banks of Brazil, looked like when they assembled to protest three weeks ago in front of the parliament in Brasilia, the capital. They requested to minimize the working week to 40 hours of work and to improve the labor conditions.

“Our economy is growing in the recent years, partially due to the oil, which is a national resource that belong to all the Brazilian people. It is not understandable why all the profit is going only to the investors and the rich. The workers, the ones who are behind the wheel, who put the wheels of the economy in motion, also are entitled to some of the wealth”, that’s the reason for the protest according to one of the protesters. This rally, which might seem trivial to the Western “eye”, says something about the new club that the Brazilian worker is gradually joining.

That worker, is no longer demanding work by itself, he wants privileges too. It is another symptom for the change that Brazil is undergoing in the last few years- millions of people who have gone from the poor layer of society to the middle class and are changing the face of the country. You can notice the change everywhere, from Sao Paulo, the largest city in Brazil and financial capital of it to Rio de Janeiro (the host of the 2016 Olympic Games), where each weekend thousands of Brazilians are swarming to Copa Cabana, the most prime and well known beach location in the city.

In the last few months, Brazil became the hottest name in the global economy. Approximately two weeks ago, the “Economist” magazine published that in five years, Brazil’s economy will become the fifth largest economy in the world, while surpassing France and the UK. This optimistic estimation lit a fire under this already hot potato and increased the buzz surrounding the country through the global markets.

Brazil is currently the ninth economy in the world in size and is one of the four countries who are lucky enough to be a part of “BRIC”, a term that refers to the fast-growing developing economies of Brazil, Russia, India, and China which are meant to be the fastest growing economies of 21st century. The acronym was first coined and prominently used by Goldman Sachs in 2001. In the twenty-one century, these four countries will consist 40% of the world population, while only 12% of the world population will live in the Western countries.

Brazil’s ace and uniqueness in this pack is its democracy which treats foreign investors gracefully and in dignity. Moreover, hosting the 2014 Mondial games and the 2016 Olympics and the 20$ billion that the government is expected to spend on these ventures will definitely and significantly increase the financial boom and is surely another reason for foreign investors to come a knockin’.

Omer Shachnai

The CEO Game.

The crowd went wild and the media sensation was noticeable as Rio was officially crowned as the host of the 2016 Olympic Games. Rio de Janeiro, one of Brazil’s major tourism attractions and a poverty and crime struck city; rode a wave of Olympic Committee Sympathy to beat Michelle Obama’s Chicago and Madrid and bring the Olympics to South America for the first time in history. Subsequent to the announcement, the streets and the famous Copa Cabana beach were rightfully painted yellow and green, carnival style and the wild sensation was captured and broadcasted live to millions worldwide. That kind of exposure, is exactly what, the local organizers are hoping that will help the region’s economy. So, will the Olympic Games be a long time financial success story or a another event in history?

Obama - Lost With Chicago

This media’s zealous interest (which you can’t get anywhere else) in the hosting cities, is one of the reasons why cities across the globe, compete so hard to host the games. The Olympics are proven money makers for the hosting cities; generally, the loads of tourists that come a knocking, and the increased economic investment are supposed to cover and then some, the billions of dollars that are needed in order to put on the Olympic gig. Private revenue mostly made from advertising in all media platforms and television broadcasting rights is also something that makes the venue’s planners to drool at night. The Los Angeles 1984’s run for the money, was a great success as American television networks and big time corporate sponsors were psyched to pay a lot of money to place their names in the track lights. The size of the city also meant that not much of building was needed to be done as the city’s resources already could accommodate the events. The games also represent an opportunity for the common people such as renting their homes, providing light entertainment, souvenirs and food.

However, some fear that it is just not enough. Those commercially rosy days are long gone, there has been somewhat of a backlash against commercialism and advertising and many TV companies go all out against charges for rights. Also, in the last few Olympic Games, security and politics related expenditures alone have escalated to the sum that once represented the entire cost of hosting the games. Considering these issues and prior examples, the games might help Rio only to a minimal extent, over the long. Take the case of Salt Lake City (host of the Olympic Winter Games in 2002), which reports now show that the games’ economic influence on the city has been somewhat limited, or Canada, where smokers still pay taxes, on their cigarettes, to finance the games that were held there nearly three decades ago. A big concern, is that usually a large portion of the Olympic revenues, goes to maintaining the sport facilities, which were specially set up for the games and are not so commercially appealing after the Olympic closing ceremony. Moreover, as Greece found out, the staging costs cannot be fully accounted for, at the early time of discussing the Olympic Boosters. The final cost of the Olympics in Athens had risen by nearly 13 billion dollars from their first estimation of $1.3bn. Financial advisers also claim that another issue that needs to be taken into account is the fact that the IOC, or International Olympic Committee and sponsors are there, first and foremost in order to provide for themselves and promote their products and not to support the community. Many also fear that it’s only a temporary boost. Don’t forget that the games last for 17 days only and then fade into memory.

Rio Olympics: Will the Games be a Financial Success Story?

Choosing Rio, the poor city infested with crime and unemployment over the other more glamorous cities serves the organizers’ publicity, but worldwide investors didn’t need the IOC’s announcement in order to focus their attention on Brazil’s economy, they have already noticed it in the midst of the economic crisis. Brazilian bear bonds gave a nice yearly profit of nearly 10%, and Brazil’s economy is considered amongst the only markets whose production hasn’t declined this year. The games will increase tourism in Rio and throughout Brazil, this will be a short term effect but it will help increase spending in the economy, but might as well provide a long term boost in repetitive tourism. This could be very meaningful since Rio’s tourism is partly undeveloped today. The increased investment in transport links will probably have effect in increasing the productive capacity and will boost Aggregate Demand and economic growth. However, the increased spending will only represent a relatively small percentage of the GDP. Another issue revolving the Olympics is national pride and prestige, which really concerns Brazilian authorities. Take a look at London which begun its marketing campaign in the locking ceremony in Beijing.

So the required question is do the games bring benefits to make up for the constant rising prices? I’ll try to answer this question tomorrow in part 2.

Omer Shachnai.

The CEO Game.