The Charlie Waterfall scandal and Brazil's entrenched bribery state

Brazil finds itself in yet another political bribery scandal, this time one that could have grave consequences for projects ranging from 2016 Summer Olympics and World Cup 2014 development to the massive public infrastructure elements of the government's Growth Acceleration Program (PAC).

In February, Carlinhos Cachoeira (translated as Charlie Waterfall) was arrested on charges of illegal gambling, money laundering, smuggling and corruption. In Brazil, such charges are not uncommon among white collar criminals, but Charlie Waterfall has unusually high-placed friends, including politicians within President Dilma Rouseff's ruling political party PT (Workers Party) and its main partner, the PMDB (Democratic Movement Party). Cachoeira is allegedly a kingpin behind under-the-table slot machine and bingo racketeering and "jogo do bichos," a longstanding Brazilian betting game that is illegal, but so widely-played that its existence precipitates a "look the other way" attitude from officials and public alike. Since the beginning of the year, an investigative sting called Operation Monte Carlo routed Cachoeira's activities and plunged its trail of paid-off senators, ministers and other political flunkies into a widening morass. A parliamentary investigation (CPMI) looking into the relationships between Cachoeira and government figures has begun to sniff out connections that lead directly to the highest office.

Yesterday, Fernando Cavendish and Carlos Pacheco, the owner and director respectively of Delta Construcoes, one of Brazil's largest construction companies with an estimated 195 public works contracts in 23 states, resigned their duties as federal police jailed a former company director, Claudio Abreu, and detained a rash of other company executives (as well as politicians and civil servants in Goias, Anapolis and the capital, Brasilia). Delta, whose known links include members of PT and the PMDB governor of Rio de Janeiro, Sergio Cabral, is suspected of being deeply enmeshed in Cachoeira's graft schemes. According to Brazilian newsweekly Veja, Delta's federal government business rose by an extraordinary 1635% in the last three years as it was handed such prized contracts as the refurbishment of Rio's Maracana Stadium, the TransCarioca rapid transit bus line and Petrobras' Comperj refinery complex. While officials have assured the smooth transition of Delta's responsibilities as doubters worry about on-time completion of World Cup and Olympic infrastructure, the reality is that the work, already far behind, won't be helped by having such massive swaths of public and private sector individuals embroiled in the scandal.

While Lula and President Rousseff met yesterday to formulate the official PT stance on the shenanigans, they must surely be formulating a response to the lurking problem of the former national director of infrastructure and transport, Luiz Antonio Pagot, who was forced out last year under suspicion of bribery. In an interview last week, Pagot insisted that he was made a fall guy to protect Charlie Waterfall and Delta's owner Cavendish. Surely more muck will rise to the surface in the next few weeks. Stay tuned...

US-Brazil Relations post-BRICS

I find it still puzzling that Brazil-US relations are as complicated as ever. The fact is, there are problems on both sides, and the avenues for understanding are not always smooth. I have just published a new think piece for Reuters, linking future energy concerns with President Dilma Rousseff's upcoming visit to the US (which is--embarrassingly--not being treated as a state visit by the White House. I marvel at how the US can possibly rationalize this rather shabby treatment of the first female president of the world's sixth largest economy.).

Above, if you have the time, check out this video of a speech made last month by His Excellency Mauro Vieira, the Ambassador of Brazil to the US. It highlights some important aspects of Brazil-US relations. But what is equally interesting is what is left unsaid about the relations between the two countries. The residual left-wing tendencies espoused by the Worker's Party brightest lights, former president Lula da Silva and current president Dilma Rousseff, are not necessarily in the best interests of the country with respect to its relations with the US and others; and the US' tendency to treat Brazil like its personal backyard and patronize it as if it were the 1950's and Brazil still needed lessons in developmental economics, can be spectacularly short-sighted.

What complicates this is the relative level of foreign policy ignorance among members of Congress, who often operate at cross-purposes to the American national interest. Now that the BRICS have held their annual get-together, and Brazil has announced its contentious South-South policy of taking the US dollar and European Euro economies to task, I suspect we will see a more fretful dialogue between the giants of the Americas.

The BRICS 2012 Summit

Brazil's Trade and Industry Minister Fernando Pimentel set the stage for a new global confrontation at the BRICS summit today. Gathering in India, along with the heads of state of India China,Russia and South Africa, President Dilma Rousseff and her government's delegation have offered sharp words about the dollar and euro liquidity glut that has driven hot money into Brazil's economy. A communique will be issued jointly by the BRICS stating the concern that American and EU economic policies are forcing rising powers to consider protective tariffs and action at the World Trade Organization.

The language has been direct. Said Pimentel: "Today's (problem) doesn't have to do with China," he said in a 30-minute interview on the eve of the summit in New Delhi. "It has to do with the dollar and the euro."

While such collective brokering seems to look askance at the years of Chinese currency manipulation, the implication of joint action would put pressure on US and EU trade. Watch this space as Brazil and China seek to shore up their current trade relations and amp up their protectionist policies...

Chevron and the Frade Oil Leak

Although minute in comparison to the Deepwater Horizon leak in the Gulf of Mexico last year, the leak in the Frade oil field 370km off the coast of Rio de Janeiro has turned that oil field's US drilling operator Chevron into Brazil's version of BP. Though the leak occurred last November, releasing approximately 2500 barrels of oil from 500m under the ocean floor and 1130m under the surface of the Atlantic ocean, Chevron has now been charged by the Brazilian government--forcing the US oil giant to close off its Frade field well, deactivate its oil rig, and face criminal indictments against George Buck (Chevron's head of Brazilian operations) and 16 other Chevron executives. Their passports have been surrendered and they are being forced to stay in Brazil, with the full indictments expected to be announced tomorrow. Couple this with the record $11billion environmental lawsuit being levied against Chevron for the leak and you have a fiasco that must have the oil company's directors regretting their $3billion investment into Brazil.

But Chevron's woes yield a worrying glimpse into the future: if leaks like these are possible at only 1200m below the sea, what happens if and when Brazil taps into the pre-salt oil reserves located at levels twice as deep? Worse still, what does this say about Brazil's oil policy when Chevron gets thumped for spills, but Brazilian national oil company Petrobras--responsible for several deep water leaks--gets away scott-free? As the potential for monumental environmental damage escalates with greater deep-water extraction ventures, Brazil's ability to manage not only the technical aspects of extraction but also the international partnerships required to execute the retrieval of oil must be judiciously aligned.

Pollution and environmental damage have a long and sad history in Brazil. But one of the country's saving graces is the innovative spirit of its people in spite of harsh conditions and blight. New York-based Brazilian artist Vik Muniz captured the essence of this in his 3-year quest to document the conditions in the world's largest landfill (in Rio) and turn it into something beautiful. His resulting film, Waste Land, is a must-see. I had the pleasure of working with Vik many years ago and was reminded of his spirit as I contemplated the current offshore environmental troubles Brazil now faces. Check out the trailer for his film below:

The British Have Landed in Brazil: Tourism and Sport

Britain's Prince Harry has been traveling through the Caribbean and Latin America on an all-out charm offensive--and what good timing too, as the Argentines have had about enough of British imperialism's last vestiges in the Falkland Islands.

As part of a GBP 25 million UK-Brazil tourism campaign (the largest ever), the young ginger prince landed in Rio as part of the initial proceedings of the London 2012-Rio 2016 Summer Olympic hand-off. As one would imagine, the usual colorful hijinks ensue--including the stiff jigging around samba dancers, the sporty dab of beach volleyball here, perhaps a bit of jogging around Copacabana there, all of which recall Harry's father's own less-adroit attempts in the past to meld with exotic locals in the name of trade and diplomacy.

For Brazil it's all part of the business of projecting its soft power to the rest of the world. And good PR couldn't come at a better time, what with Brazilian football federation head Ricardo Teixeira resigning for health reasons 2 years before the historic 2014 World Cup. Still, another Brit couldn't help alerting Brazilians to the perceived agenda behind Harry's goodwill jaunt: Morrissey, the former lead singer of the Smiths, taunted the British royal family while giving a concert in Rio during Harry's Brazilian travels. One would have to expect as much from the man famous for titling an album "The Queen is Dead," but really, with his backing band wearing t-shirts that read "We hate William & Kate" it all seems a bit misguided and a bit too much.

Brazilian Food for Germans

A few nights ago, Embratur, the Brazilian tourist organization, set up a cultural event in Berlin, Germany dedicated to a "A Night in Fortaleza" (the largest city in the Northeast of Brazil). Though it may seem a bit random, Brazil has begun a cultural reaching-out campaign to Germany in an effort to encourage more diversified tourism to Brazil beyond the main cities of Rio and Sao Paulo. Germans represent the largest European group of foreign tourists to Brazil; moreover, direct flights from Europe go to Fortaleza, often at a cheaper rate into Brazil compared to Rio and SP. As a result, Embratur has pressed into service Brazilian chefs, farmers and others as part of a cultural exchange to spread the word about Brazil's unique gastronomy and food history--all of which are considered part of the larger cultural legacy of the country. And boy, the Brazilians are not kidding when it comes to spending on this endeavour: for a series of these one night events of Brazilian food (which have taken place in Madrid, Milan, New York, Berlin, and to be followed soon in Amsterdam), the Brazilian tourism ministry is spending BR$330 million!

Os Gemeos in LA

Gustavo and Otavio Pandolfo, the twin brothers known as the art duo Os Gemeos (which means "the twins" in Portuguese) bring their exuberant, life-affirming vision to the Prism LA center for a new show that remains open until March 24th.

Called Miss You, the show follows and expands upon Os Gemeos' aesthetic of fully inhabiting whatever space in which they create. Their brilliantly colorful street art aesthetic, paired with engaging multimedia flourishes, elevates this new installation to kaleidoscopic heights. If you happen to be in Los Angeles, you should take some time to catch this playful show. As does all of Os Gemeos' work, it immerses the visitor into a dream-like arena where visuals appear like unconscious reveries, and recalls the fantastic worlds of the early Surrealists.

Hailing from Sao Paulo, the Pandolfo brothers got their start on that mega-city's myriad walls. I still remember some of their eye-popping murals that stood out graphically against the wide variety of graffiti and runic tags that characterize the unique street art of that city.

In the rarefied context of a gallery setting however, their work never loses its power; rather it seems to gain by way of allowing their imaginations to gain greater heights through the use of interesting materials, unusual juxtapositions, and the insertion of the atomized gallery-goers. The gallery setting could not be further away from the gritty temporality of the street, but in this case, it provides an exciting new environment for the brothers to develop their memorable vision.

Senna, Formula One and on going faster

For those of you who have not seen last year's documentary film Senna, I highly recommend it. Even if you are not a racing fan, you'll sit glued to your seat, fascinated.

Ayrton Senna, three time Formula One champion, personified individualism and the pursuit of excellence in his field. With a competitor's will to win so strong that it ultimately brought him to his own end at the notorious 1994 San Marino Grand Prix (a race that served as a major turning point in the development of Formula One safety rules and regulations after also causing the death of Austrian driver Roland Ratzenberger, and the injury of fellow Brazilian driver Rubens Barrichello as well as several pit crew mechanics and spectators), Senna serves as not only a testament to ambition and perseverance, but also an interesting metaphor for Brazil as a whole at this time.

This weekend, as Senna's nephew, Bruno Senna (pictured, driving for Williams-Renault for Brazil) locked in third place (ahead of such Formula One champions as Michael Schumacher and Lewis Hamilton) in the final Barcelona test runs prior to the 2012 Australian Grand Prix in an attempt to capture his first racing championship and continue his family's dynasty of speed, I was thinking about the will to win and the discipline it requires. As an athlete myself, I know full well the psychology of winning, and how even the slightest setback can destroy you if you are not prepared to maintain focus.

Brazil, like the younger Senna, is in pursuit of a very difficult and potentially dangerous goal: in projecting its formidable soft power and leveraging its ample resources to become a player on the world stage, it risks its own sustainability. To paraphrase the elder Senna, who talks about risks in the film, Brazil--like champion drivers--has no other option but to go forward. But as the exigencies of a changing world collide with Brazil's own internal changing circumstances at both the socio-economic and political levels, it must show a resolve as steely as a race car driver's to avoid crashing into a guard-rail and blowing itself up. Moves towards greater nationalization of state resources and pledges of reform--in sectors where corruption is so deeply entrenched that the slightest change may cause an unraveling that can unleash far more pernicious forces--have Brazil on a razor's edge. As Bruno Senna pushes onward while trying to avoid his uncle's fate, one hopes that Brazil's political class may yet collectively establish fiscal, legislative and structural discipline that will help the country capture its longed-for top spot in global dominance, and elude the gravitational forces the threaten to prevent it from reaching its full potential.
CHECK OUT THE SENNA TRAILER HERE

Carnaval begins!

On the beginning of the weekend madness and fun that is Carnaval, I thought it would be great to put up a link to the trailer for a film that debuted last year called O Samba Que Mora Em Mim (The Samba That Lives Within Me). It's a lovely film about Mangueira, the neighborhood that lends its name to one of Rio's oldest, biggest and most popular samba schools. My family are members of the school, meaning that they dress up, rehearse and perform as members of this school in the annual Carnaval parade/competition. You don't have to live in Mangueira to be a member of the Mangueira school; indeed, many famous celebrities are Mangueira members. But all samba school members respect the heritage of the traditions, people, music and year-long effort to make that one weekend during Carnaval the happiest, the shiniest, the best of the year. This film is the testament to that spirit, regardless of your circumstances. Check it out.

Fashion Week and old friends

With Fashion Week in full swing this week, it's hard to avoid the street style papparazzi and bloggers obsessively snapping the most sartorially correct boulevardiers. My fave shot of the day, though, was a photo of the always fashionable, fearless and wonderful Tim Gunn.

I met Tim when he was my New York neighbor and together we judged a neighbourhood dog fashion show I organized for our annual local block party. As ever, his presence was a hit with the crowds: witty, generous and devastatingly funny.

When my book first came out, I ran into him at a party and he was kind enough to do an impromptu endorsement on my behalf. I haven't looked at the video in a while, but when I saw the photo of him this morning looking dapper and fresh, I thought it would be a great time to dig this out and put it up for fun.

The sound quality, given the party atmosphere is not the greatest, but he is talking about his then move to Liz Claiborne as a creative director, to which he had transferred while Project Runway was in full swing.

Here's to you Tim!

China and Brazil: Neo-Colonialism on Display?

Yesterday at Cosban, the Sino-Brazilian Commission summit in the capitol of Brasilia, China's vice premier Wang Qishan expressed himself with interesting bluntness not usually heard in such diplomatic circumstances. He commented on his dissatisfaction with not having met business leaders during his stint at the Itamaraty capitol headquarters. To the ears of the politicians and diplomats arrayed around him, Vice Premier Wang's claims that business people carried "more weight" than government officers must have rankled more than a little. But can it truly be any surprise to Brazilians at this point that China's rapacious need for Brazilian resources is the primary concern for the Asian colossus? China's typical foreign policy strategy is minimal political or social intervention abroad, unless it directly aids China's receipt of the raw materials it needs to maintain its billion-plus population and the growth of its economy. Already, Brazilian firms like Petrobras and countless agricultural organizations have unlocked sweetheart deals for commodities with China in exchange for the capital needed to build-out precious infrastructure to...provide yet more commodities for China at sweetheart prices! Is it any wonder Vice Premier Wang couldn't be bothered with the diplomatic platitudes? As is China's wont, Wang just wanted to cut to the chase. Brazil needs to figure out how to present a more focused and strategic platform for its relations with China, so that both countries can arrive at equitable accommodation without the imbalance of neo-colonialism. Otherwise, the long-term picture for both countries will contain poor relations and possibly civil unrest--two factors both countries are desperate to avoid. 

My Op-Ed in Reuters and Thoughts on Brazil's Police State/State of the Police

Employment sits heavily on my mind as I ponder the current state of what has been happening in Bahia. In the past week, police have gone on strike in the Northeast, leading to murders and chaos. Now police and firefighters in Rio threaten similar action, with only days left to go before Carnaval begins. Should the action go forward, you can expect bloodshed. Street cops in Brazil, along with teachers, are among the lowest paid civil servants--and yet, their influence and power are directly related to the levels of crime and chaos within Brazilian society. Is it any wonder that police in Rio now form the largest faction of the militias that took over from drug traffickers in the favelas? Officers seeking to garnish their state wages now oversee the rackets gangs and druglords once commanded, including the provision of cooking oil, electricity, sewage, cable TV and public transport--all at extortionate rates--to the poor and captive denizens of the slums. A vicious cycle ensues, with less respect accorded to police, which drives them further to victimize their targets.

The strike action was meant to force the government's hand to raise salaries; but of course, this is hardly the way to go about things. President Rousseff will have to take serious resolute action to deal with the wage inequality that maintains corruption, instability and violence as a part of daily Brazilian life. Should the situation in Rio break down in the coming week, Brazil's soft-power gloss will be greatly tarnished--a major setback. Check it out here.

Employment and its effect on civil society were the main issues covered in a new op-ed I published in Reuters today. The US and China are not so far apart in their corporate disregard for the rule of law in their own labor statutes, leading to a trend I call Foxconnification--the individual tendency towards self-enslavement in tough labor markets. I contrast the unpaid intern problem in the US with the blue collar manufacturing situation in China to come to the conclusion that the net effect of globalization drives us further away from respecting our laws that protect labor rights and more towards reluctantly subjecting ourselves to the whims of employers.

Stay tuned for the Monday relaunch of the Brazilian Bikini Body Program website! More on that then...

New Name, New Content

Well, it's happening again, a return to this blog after a long period of going dark (5 years if you note the last post--an epic fail on my part!). I went off the rails so that I could get my ticket punched by the higher education racket to score my Masters degree in International Relations. I'm almost done, but as I am preparing my thesis, I have relaunched my book's website: http://www.thebrazilianbikinibodyprogram.com. Where it once was a subscription-based site, all the content is now free. Not only will you find a complete 30-day nutritional and exercise plan, you'll also find recipes, videos, audio, and more. I've also got my Twitter feed of VidaBossa running now too: http://www.twitter.com/vidabossa.

So this blog will be oriented around geoculture and foreign policy as it pertains to Brazil, and perhaps a few other regions of interest. I'll be jumping from covering Rio music-makers, to green sustainability initiatives out of the Amazon, to Petrobras politics. In the meantime, feel free to follow VidaBossa on Twitter and let me know about stories that interest you. I am looking forward to expansion, especially as we got closer to the 2014 FIFA World Cup and the 2016 Summer Olympics in Rio de Janeiro. Oba!!!

More soon!