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.