Reuters: Will Brazil Be Ready for the World Cup?

A recent "Reuters" article entitled "Brazil's Olympics will be fine. As for the World Cup…" contains a good overview of the challenges facing Brazil as it prepares for the Confederations Cup, the World Cup, and the Olympics.  As the article points out, other countries that have hosted the Olympics have had concerns over their level of preparation as the deadline has approached, but things are further complicated in Brazil because it is hosting three major events in a row.

The article includes quotes from an interview with Benedicto Barbosa da Silva Junior, CEO of Odebrecht's Brazil infrastructure unit.  Odebrecht is a Brazilian construction company that is heavily involved in the construction of stadiums and other projects for the events.  

Junior cites problems caused by "high costs for materials and other inputs, bureaucratic delays, limited financing options and shortages of skilled labor," as well as an infrastructure that is already overburdened.  

Some critics complain that Brazil should not have attempted to have 12 host cities for the Cup, and Junior had this to say about renovating Rio's Maracanã stadium: "We should have demolished it and then started from zero, just like (the British) did with Wembley." 

The mayor of Rio de Janeiro is quoted as saying that he's not certain if the overhaul of Rio's airport will be finished in time for the World Cup, but "for the Olympics, yeah, I think we'll have time." The article also refers to Dilma's frustration when she was attempting to talk with Lula on her cell phone, and the signal was dropped three times. Clearly, there are problems with the infrastructure.

So once again, we see the common themes of a sluggish bureaucracy, lack of skilled labor, limited financing, and underdeveloped infrastructure.  

As the article's headline implies, the consensus seems to be that Brazil will be ready for the Olympics, but there are real questions about the World Cup. Junior himself said, "Today, I'm more worried about the World Cup than I am about the Olympics." 

Source: "Brazil Portal"

Strike Is Over for Most Brazilian Public Sector Workers: Settlement is Reached

According to an article from BBC, 90% of the striking public sector workers in Brazil will end their walk-out and have accepted a government offer of a 15.8.% raise over the next three years.

Still on strike are the Federal Police and tax inspectors, but 30 out of the 35 employee groups have reached settlement. The government will resume negotiations with the groups that have not yet settled.

The end of the strikes is good news for Dilma, who had become increasingly impatient with the disruptions they were causing, and who felt that the public sector employees who were striking had unrealistic economic demands.

Update:  As of August 30, 2012, I haven't seen any coverage of this story in the Brazilian press yet, but it is repeated in this article from Reuters. Reuters reports that the strikers will return to work on Monday, and confirms that the Federal Police, tax authority workers, and central bank employees have not yet reached a settlement and are still on strike.

Update September 1, 2012: I finally found an article in "Estadão" which confirms the information in the BBC and Reuters reports. The article is dated August 28, but I had to search "Estadão's" website to find it, and even then it only showed up on the third page of hits. I don't why there hasn't been greater coverage of the settlement in the Brazilian press, but it may be that the story has been overshadowed by recent rulings in the "mensalão" scandal.  

Dilma Signs Quota Law For University Admissions

"O Globo" reports that Dilma signed a new law that requires federal universities in Brazil to reserve 50% of admissions for graduates of the public school system.  

She vetoed only one section of the law, which dealt with the selection criteria. The original law allowed for a "performance coefficient," arrived at by averaging a student's high school grades. Instead, the criterion will be the student's score on the Exame Nacional do Ensino Médio (Enem), the National High School Exam.

The law also includes a provision for distributing the openings among racial groups, to be determined by the racial make-up of each of Brazil's states.  The racial quotas will be in place for 10 years. 

In her remarks, Dilma stated that the goal of the new law is to democratize access to federal universities, while maintaining a high level of education.  

A longer analysis of the new law can be found in this article from the New York "Times."

Brazil: Zero Tolerance Policy On Soccer Fan Violence

In anticipation of hosting the Confederations Cup in 2013, and the World Cup in 2014, Brazilian officials have announced a zero tolerance policy on fan hooliganism.  This article from AFP (Agence France Presse) reports that a special police investigation center is being set up in Rio to handle cases of soccer-related violence.  

The announcement comes after several recent outbreaks of soccer violence, one of which resulted in a death, and another in the arrest of 21 fans.

Additional details appear in this article from "O Globo," as well as this one.

A civil police authority is quoted as saying "This is not an example of the image we wish to project at the World Cup. We must act with rigor."

Brazil's Supreme Court Orders Resumption of Work on Controversial Dam

An article published on August 28, 2012, by the NY "Times," reports that Brazil's Supreme Court has ordered that work resume on a controversial dam that will generate hydroelectric power. 

The Belo Monte dam, which is being constructed in the Amazon rainforest in the state of Pará, has been opposed by Indian and environmental groups.  

The ruling overturned a decision by a lower court on August 16, 2012, which halted construction of the dam.

In a statement, the Brazilian government said that the Court's decision "avoids the occurrence of major and irreparable damage to the economy, to public property and to the country's energy policy."

Celebrities including rock singer Sting, director James Cameron, and actress Sigourney Weaver have joined activists in opposing construction of the dam.

Brazilian Judges Uphold Operating Ban on Chevron and Transocean

Rejecting arguments from oil giant Chevron and its drilling contractor Transocean, as well as from the Brazilian government's own ANP (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis), a Brazilian judicial panel has upheld the ban which prohibits Chevron and Transocean from operating while charges over last November's oil spill are considered.  

According to an article in "Reuters," the ban could cost Chevron and Transocean hundreds of millions of dollars, as well as disrupting Petrobras' operations, since it also leases drilling equipment from Transocean.

The three-judge panel was particularly harsh in its judgment of the role of the ANP, with one judge stating from the bench that the agency had "contributed to the accident by failing to do its job as a regulator."

Bill Clinton Bets on Brazil

In an article with the headline "Bill Clinton: Brazil No. 1 Among Rising Economies, "Reuters" quotes former President Clinton as saying: "If I were just sitting in a room betting on the future of rising countries, I'd bet on Brazil first."

Clinton cited Brazil's stability, its vast natural resources, and its good relations with neighboring countries.  

Clinton spoke to a group of bankers in São Paulo on Tuesday, August 28. Other speakers at the meeting were former UK Prime Minister Tony Blair, and former Brazilian President Fernando Enrique Cardoso.  "Reuters" described Cardoso as the most "bearish" of the three former leaders. Cardoso was critical of Dilma and Lula for being too reliant on government stimulus of credit, as well as lacking "fiscal rigor" that he said characterized his own government.  

Further coverage of this event can be found in this article from the "Economist." The "Economist" included this interesting quote from Cardoso about the possibility for instituting reform during a time of economic crisis: "When you don't have order it is easier to do something, not harder. Europe is approaching a chaotic situation … when it will be easier to impose new rules."  

The "Economist" also goes into some detail about FHC's own feelings about the way his legacy has been treated by Lula: "Mr. Cardoso is generally statesmanlike, but it sometimes slips that he finds it offensive the way he was airbrushed out of Brazilian history by Lula, who had been a co-traveller in the fight for democracy during the country’s military dictatorship, and a personal friend."

As an outsider, it may be inappropriate for me to comment on Brazil's leaders, but I believe that FHC, Lula, and Dilma all deserve credit for the positive changes that have occurred there during their terms in office. FHC managed to bring hyperinflation to an end, and without that, it's doubtful that the economic and social progress that occurred under Lula would have been possible.

Sources: "Brazil Portal", "Reuters", and "Economist".