Submitted in part by ICBA Asia, Brazil, India and the USA via the IRC Read & Delete Monthly
Two decades of military rule ended in Brazil in 1985. Transitions between elected governments since have been smooth. The most recent past president, Luiz Inácio Lula da Silva, bolstered democracy by ruling out a 2010 constitutional change, which would have allowed him a third term.
Segments of the ruling leftist Partido dos Trabalhadores (PT) advocate more state intervention, but cross-party support for sound fiscal and monetary policies prevails. Federal governing institutions are fairly strong, and though corruption scandals periodically put needed political reform back on the agenda, far-reaching changes are not expected.
The Dilma Rousseff government is pro-Western but somewhat ambivalent in its foreign policy. Though a Brazilian chief executive is generally checked by a strong legislature, Rousseff’s ruling coalition faces a weak opposition. Her majority, however, is comprised of so many contentious constituencies that legislative priorities on education, job creation, and the environment often are diluted by concessions elsewhere. Ms. Rousseff favors meritocratic appointments to top-tier posts, as rare a concept in Brazil as anywhere else. If she and her capable team are able to continue progress in the fight against corruption, and with popular efforts to broaden educational and employment opportunities, the forecasts for her re-election and for Brazil are good. (Source for the above: Economist Intelligence Unit)
And furthermore: Brazil is stepping into the sporting world’s focus. The summer of 2014 will see a return to Brazil of the FIFA World Cup competition for the first time since 1950. The twentieth World Cup competition in men’s soccer – in which Brazil leads with five titles – will add about R$183.2 billion Reais (US $91B) to the economy, attract 600,000 foreign tourists, create about 400,000 permanent jobs and another 300,000 temporary employment opportunities.
Two years after the World Cup, Rio de Janeiro will host the 2016 Summer Olympics. The games will be a first for a South American host, first in a Portuguese-speaking nation, and only the third to be hosted in the Southern Hemisphere. Olympic Investments and job creation will exceed the World Cup figures in most categories, though -- as is so often the case with the world’s moveable sporting galas -- preparations for both events are dogged by construction delays and allegations of corruption. The world’s attention, money, and tourists will come -- no matter what -- in just a few short years. How Brazil handles the attention and money will go a long way in forming the country’s image and the world’s opinion of Brazil’s ability to handle its transition from a developing country to a world power.
To read ICBA USA's full article on Brazil, please visit Spotlight: Brazil Today.
(The Political Risk Event of the Month blog post is a recurring post, on a monthly basis, at the ICBA blog. ICBA Asia, Brazil, India and the USA, which is International Risk Consultants, Inc. (IRC), has agreed to continue to share these "event" posts with the ICBA blog.)