Brazil is a Third World country, remember?

Lately all eyes have been on Brazil. Whether you are a fan of the pope and watched as millions descended on Rio while it stretched its capacity to host enormous crowds, or an international travel agent already booking lodging and sightseeing packages for upcoming World Cup and Olympics visitors, or an ambitious investment fund manager making exciting new inroads into the Brazilian market that has (until recently) been outperforming many of the tired and failing options in your home country – chances are you have been wide-eyed about Brazil and its explosion onto the world stage as an all around powerhouse and emerging world hot spot.

Outside perceptions and media generalities can be deceiving.

A lot of people don’t like it when you refer to Brazil as a Third World country, especially some Brazilians. My experience, however, has been that it is Brazilians in particular that default to this kind of language. Some residents seem to use this expression as a way to explain away or justify some of the current national shortcomings and others, especially those now living abroad, would seem to use it to justify to themselves why they left their country in the first place.

I have steered clear of this label in favor of the more politically correct “developing country” mantle. My intention is to be accurate (i.e. not including Brazil among the so-called First World nations) while also trying not to give an exaggerated impression of undeveloped or backward that people may imagine when hearing “Third World.”

As described in Wikipedia, “Third World” and “developing” are seen as interchangeable terms when describing Brazil, but the term Third World is a bit antiquated since it originally simply referred to countries not aligned with either NATO (First World) or the Communist bloc (Second World). Over time the term Third World has come to be used as an economic term to describe poorer countries that have struggled to attain steady economic development.

There are no universal, agreed-upon criteria for what makes a country developing versus developed and the term Third World is rather squishy. I have come to be comfortable with the term “developing country” to describe Brazil because it seems (to me) to imply hope and real progress, leaving Third World to those times when I want to be deliberately provocative.

As long time readers of this blog know, I love Brazil. Luiz and I have never had second thoughts about our move to here nearly 6 years ago and we have no intentions to relocate any time soon. My blog is filled with all the reasons you might want to join us in this mid-life change of adventure we have created for ourselves. Here there is no shortage of daily wonders to soothe the soul and reinvigorate one’s zest for life. Brazil and Brazilians have a special kind of wow that we have experienced in few other lands – and we have visited many, many places. But yeah, when you peel back the travel brochure cover and look for the fine print, there it is: Brazil is still a developing country.

This comes as no surprise to those of us living here. While the television coverage of the upcoming World Cup and Olympic Games may focus on shiny new sports stadiums and grand openings at fancy new resort hotels, a peek behind the scenes reveals promised modern airports still in the early stages of construction (one still lacking paved roads to and from) and public policies that are displacing poor residents to make room for temporary international tourist conveniences. Rumors of political corruption, stolen public funds, illegal construction code violations and broken promises that urban development for the games will include vital infrastructure improvements for permanent residents take no one by surprise.

Persistent political corruption at all levels and shameless kowtowing to international capitalist pressures spawning shiny new millionaires at the expense of true democratic self determination and shared prosperity are the unfortunate tell tale signs of a “developing country” trying to get sturdy legs under itself. Generations of Brazilians have reluctantly grown accustomed to and somewhat hopeless regarding the stench of this political sewage and the oppressive economic inequality it sustains. Plus there are the pervasive legacy costs of political and family dynasties that have concentrated power and wealth over the years. [According to the celebrated Brazilian economist Marcio Pochman, published in the book “The Rich of Brazil” (2004), the assets of five thousand ‘very rich’ families, which account for 0.001 percent of all Brazilian families, amount to approximately 40% of the Brazilian Gross Domestic Product.]

That’s the bad news.

The good news is that Brazil is, indeed, developing. This development has been at a rather impressive pace in recent decades. Modernization in urban areas, in the commercial sector, in all areas medical and, more slowly, concerning the infrastructure that links vital population and resource centers across the country has been steady and persistent. Political reforms, while slow and somewhat limited in scope, have also been steady. Both dynamics have resulted in real and tangible improvements in the quality of life for tens of millions of Brazilians. And just like everywhere else on the planet, the internet has transformed nearly everything among those with access and among those who benefit in secondary and tertiary ways. Things are definitely looking up (i.e. developing).

What this means for Luiz and I is that, while we live in Brazil, we live in a comfortable two bedroom  apartment just down the street from a beautiful, mature urban park. We wash our clothes in a 10 kilogram capacity washing machine (although, it does not have a hot water option and we do not have a dryer, but hey…) and our refrigerator has a separate (although quite small) freezer compartment. Wireless internet service and an over-sized flat screen TV (with 3-D capability, although there are no 3-D signals in our area) as well as an imported, firm, queen size mattress round out or creature comforts.

Most of our banking is done either online or via an ATM machine, although Luiz has developed a meaningful friendly relationship with our branch manager in case of difficulties. Luiz has a cell phone, while I have eschewed said ball and chain. Most of our transportation needs are covered by bus and ferry services but our friends drive chic new cars that run on gasoline, alcohol and/or natural gas.

Regarding medical needs, we live in an insanely convenient part of town chock full of doctors’ offices, labs, ambulatory clinics, critical care facilities and full-on hospitals. We pay a relatively small monthly fee for supplemental private health care insurance that sweeps us up and over the inconveniences and limitations of the public health system, although in any possible circumstance we have medical care available.

If you squint a little and don’t try too hard to find any cracks, it looks a lot like a First World lifestyle. Most of the time it even feels like a First World lifestyle. But then, if you insist on seeing the glass half empty there is plenty to remind you that things are not all that they might first appear to be. For a listing of daily inconveniences and nearly unbelievable tales of stifling bureaucracies I kindly refer you to other blogs.

Mainly what affords us our comforts is that first and foremost we live in a modern, urban area that has been developing as a Brazilian city for more than 300 years. At some point you get paved roads, clean reliable drinking water, backup electrical power at hospitals and a police force with at least a minimum of training and support [key word: minimum]. Second, there are employment options in the area that provide a livable wage or better, and schools and universities are plentiful [even if they often lack a full complement of functioning light bulbs or ceiling fans].

Not bad, overall. But this is certainly not the case for the multitudes in the population that live in less developed cities and towns, favelas adjacent to rich urban areas and the more desperate rural parts of the country. This is where much of the Third World reality exists.

In Brazil as a whole about 35 per cent of the population lives in poverty, on less than two dollars a day. This is most visually represented by the various favelas, or slums, in the country's metropolitan areas where residents suffer with economic underdevelopment and below-par standards of living. In Brazil’s rural areas poverty affects about 51 per cent of the population. This means that Brazil has about 18 million poor rural people, the largest number in the Western Hemisphere. Poor rural communities live in disadvantaged conditions: education and health facilities are not readily available, water supply and sewage systems are generally inadequate, and rural people face severe constraints in accessing technology and infrastructure. [sourced here]

The degree to which you feel the “developing” part of living in Brazil is directly related to your place on the class ladder. Here people with money generally have A LOT of money and can buy their way into a pretty good facsimile of a First World lifestyle. Poor folks, as usual, are shit out of luck. The oft-touted newly emerging Brazilian middle class (myth for a future post) tends to enjoy just enough of an income to buy into a look-alike First World lifestyle without the political/economic/consumer goods quality underpinnings to back it up. [Aside: the vastly expanded consumer credit market in this regard is a ticking time bomb.]

Visitors to Brazil quickly notice the gulf between the haves and the have-nots. Years of government investments in the tourism sector has bolstered the infrastructure for travelers so they can have more of a modern, convenient experience. Tourists who never leave the beaches in Rio and who cannot understand the Portuguese newsprint or television reports may never know they are vacationing in a developing country.

We who live here know Brazil is in a state of development. The struggles to develop are not subtle or inconsequential to our regular lives. Political push back from the general population against governmental corruption and incompetence has been on the rise. The growing number of people lifted out of poverty in recent years (thanks to some good governmental action) has created a new class of citizens who have no intention of going back to the desperate poverty they left behind. At this point it is develop or bust. But it is not easy and it will take more time.

So if you are among the throngs who will be coming to Brazil for the 2014 World Cup or the 2016 Olympic Games, be patient with us. We really are trying to provide you with a comfortable, drama-free adventure. But we are also trying to get reliably clean drinking water and doctors on call to millions of our fellow countrymen and their families.

Brazilians are daring to hope

Much has been written in the news, on Facebook and among bloggers about the historic and truly revolutionary demonstrations currently taking place in most major cities throughout Brazil. Ignited by the back-breaking final straw of yet another urban bus fare increase, youth activists as well as professionals, their families, seasoned change makers and even atrophied activists from an earlier time have taken to the streets to cry ‘enough!’

The cry has widened from this original ill-conceived revenue increase once again placed on the backs of the poor and middle class to include demands for better health care, schools and general infrastructure improvements. An obvious example of misplaced government priorities is writ large in the billions of dollars going to host the World Cup and the Olympics rather than to solve entrenched social problems.

The focused target identified as the source of much of what ails Brazil and what must change to ever see lasting improvements is the endemic corruption among politicians at all levels and the often ridiculous and always expensive burdens they levy on the people.

In this post I am not going to repeat the news about the inspiring demonstrations happening throughout Brazil or try to offer my two cents about where or by what means this popular uprising will go from here. I have included a number of links at the end of this post to direct you to some terrific resources (in English) that offer some background, current reporting and varied analysis worth your time. Please follow the links for some really great stuff.

In cases like these, as a foreign national and new resident in Brazil, what I don’t know about the depth and breadth of this problem outweighs what I do know. But I have had quite a few personal experiences that have brought me face to face with the mood of many Brazilians when it comes to politics and any hope for change.

Clearly a sleeping giant has been awakened. Brazilians are at the end of their rope and are speaking out. Let me share with you some of my personal observations that betray the size of this giant.

When I first arrived in Brazil I noticed a kind of resignation among people that the trains would never run on time. It was taken for granted that politics was a lost cause and that all politicians were thieves. You may recall that in the last national election the politician that received the most votes of any Congressman in Brazil was an actual professional clown and humorist; he was a protest vote.

Several thousand people came out in Niteroí.

Any time I spoke with enthusiasm about what I saw to be hopeful political signs (like the election of Lula from the Workers Party) people were polite/patient with me but dismissive and impatient with the subject. Even electing Lula (who most of my friends voted for) brought but a moment’s grin before folks would shrug and retreat to their place of indifference and hopelessness.

Any example I would raise to suggest the possibility of a positive change was slapped down with a dozen examples of corruption, cronyism, government inaction or downright hardship brought on by elected officials. These were well seasoned opinions built over time by countless real life examples.

Time after time friends and family would joke about crooked politicians (because only joking made the topic tolerable) and every story ended with a sigh and an exasperated “what are you gonna do?”

Being new to Brazil I always looked (and still look) for the ‘glass half full’ take away. This was my new home and I was in love in so many ways with Brazil. Learning about recent political histories just ruined the buzz.

Every family had stories of hard working youngsters finishing university only to lose opportunities to corrupt government officials or institutionalized prejudice or nepotism at public and private workplaces.

Nobody was surprised or even flinched when I reported my having to make multiple trips to the Federal Police office over 2 years to finally get my permanent visa. Unbeknownst to me, my story was actually seen by locals as a success story for getting my paperwork through the bureaucracy so fast.

People here have long since resigned themselves to a broken system run by men (mostly men) who line their pockets with citizen tax dollars and then conspire to never hold each other accountable. It is a mess.

On another note: In my former life in the States I was a professional fundraiser for nonprofit agencies of one sort or another for nearly 20 years. Here in Brazil people are skeptical to the bone that any monetary donations they make to a charitable cause will EVER make it to those in need. Everyone can recount a dozen stories off the top of their head about government officials (or evangelical church leaders, for that matter) pocketing these funds for personal gain. Making cash donations is exceptionally rare, with few exceptions.  [It’s worth noting that much of what is done by charitable organizations in the USA is done by the government in Brazil. There are only a tiny number of nonprofit organizations here compared to the States.]

There has always been a sense of hopelessness that the government, in any of its forms, was going to contribute to the solution for anything.

It appears, now, we have hit a breaking point. In the case of the current demonstrations young people are stepping up and demanding that their future not be stolen away from them. And they have found millions of likeminded others who are ready to join the chorus.

Some of the politicians are listening. Some are scared. Many will try to levy the heavy hand of the police to make this all go away. Whatever is yet to come – things seem far from over.

It does not help to protest and then return to the same corruption as always.
Protest today Brazil, but change the vote in 2014

The people of Brazil seem ready to hope again. I, for one, could not be more thrilled to be here at this time in history to witness the people of this country I have come to love so much mobilize to wrench the reins of power and the future from those who have stolen them. Wish us luck.

To learn more of the newsy details check out the following:

Videos that make the case for the demonstrations are here, here and here.

News articles that go at least a little bit beyond the violence by the fringe elements and try to lay out what is happening are here, here and here.

Other bloggers who have made interesting contributions to help folks understand what is going on are here and here.

And of course there is lots more out there...

Starting a business in Brazil – some tips

First, as my 77 year old Brazilian father-in-law and previous business owner used to say (may he rest in peace) “Be careful what you wish for.”

Should I start with the positives or the negatives? Oh heck, I’ll dive into the starry eyed positives as seen by this newcomer through his rose colored glasses. Luiz and I traveled to Brazil many times in the years before we picked up and moved here. During that time I had one eye looking out for business opportunities – and thought I saw many sure things.

Like: we could open a Mexican restaurant/taqueria. Cheap ingredients, hearty food, great take out for working people and the taquerias in San Francisco ALWAYS had a line out the door. Easy peasy.

Or maybe Luiz should take his formal education and international training as a floral designer and open a flower shop with event flowers as a featured service. We went so far as to produce a beautiful website, brochures, note cards and brought a ton of specialty items to make his arrangements pop.

How about an import/export business? So many things are cheaper in the US. We could import them to Brazil. And there is a rich art and fashion pulse in Brazil that would surely appeal to US Americans.

Best of all, we could find a tiny coastal village just beginning to get noticed and open a tropical paradise bed and breakfast (pousada). We would make it a cut above and appeal to the international travel set and the expanding middle class of Brazilians taking family vacations – all the while sitting on the beach sipping chilled coconut water and telling our housekeeper and pool boy what to do next.

Then our plane landed in Brazil. We moved into our apartment and, once we got our bearings, we started to investigate the possibilities for real. (Here comes the negative part.)

Truth be told, we did not move to Brazil to start up a whole new chapter in our life growing a business and working too much. As far as 60 hour work weeks go – been there, done that. So we scratched most of our fantasies and focused on our “unfair competitive advantages” e.g. Luiz’s international floral design expertise and my being a native English speaker from the United States in a country that likes those kinds of English teachers.

It became immediately apparent to us that Brazilians are very clever, hardworking and seasoned (not to mention cut-throat) entrepreneurs. In a land with a history of minimal (honest) opportunities to earn a substantial living and one with a byzantine legal system that regulates and taxes (or charges fees for) just about everything, as outsiders we were at a decidedly woeful disadvantage in the mainstream of building a successful business. Knowing how to manage the system and flourish within a web of personal connections is baseline. These are insights and relationships generally out of reach to most newcomers.

As an outsider I could see so many ways that businesses could be made more efficient or otherwise improved, or so I thought, only to learn that government regulations, bank loan interest rates, taxes, labor laws, the availability (lack thereof) of skilled workers with an earnest work ethic, taxes, local corruption, near closed business environments in some competitive areas, and taxes were the real culprits.

To my friends looking to move to Brazil and open a business I say: welcome, good luck, and start looking for a good lawyer and a “fixer” to help you get started. I’m sure it could be a breeze for some, I just have never seen evidence of that. I prefer my rosy glasses and chilled coconut water on the beach.

So we bailed on any thoughts of a pousada or an import/export gig from scratch. Luiz has found his niché in flower design working in “permanent botanicals” showcased at the weekly arts fair in the park and designing for individual clients.

Over time our musings about opening a lunch and dinner Mexican restaurant have morphed into launching a food truck specializing in wraps of all kinds. This addresses the reluctance among locals to try “different” foods. We could produce a “Carioca Wrap” or a Mexican inspired burrito with carne seca, or maybe a Bahian inspired spicy seafood wrap. Also, the truck eliminates the need to rent space etc., we would not have to hire people, and we could move it around to where the people are (festivals, street parties, nighttime hot spots, etc.) But still there are the regulations, licenses, taxes and turf power brokers. That beach still looks pretty good to me.  

I have settled into a comfortable work schedule (including the afore mentioned beach, glasses and beverage) as an “English Polisher” for adult professionals preparing to present at an international conference or about to ship off to the States for a 6 month work gig. Doctors and lawyers are always looking to improve their English speaking skills. Students headed for graduate school in the States always want to speak better. And my sometimes favorite: bored rich housewives preparing to go on a shopping trip to New York City are sure they need specialized vocabulary assistance.

All that said, here are a few new ideas for a bright and overachieving entrepreneur looking to make a go of it here in Brazil:

-          -  Running a mobile copy service: a cart you can park in front of the Federal Police office, the Notary Public, the Consulate, etc. Visitors to these offices always need additional copies of some document or another and the offices themselves do not make their copy machines available.

-         -  A private parking and traffic enforcement operation. In the past five and a half years I have never seen a city official write a parking ticket or stop a driver for even the most egregious driving offense. Of course, you would have to convince the local government to outsource this function – but believe me, it would reap a fortune for all stakeholders.

-        -  Full service business consulting for expats looking to beat Brazilian entrepreneurs at their own game. To put your clients at ease, put a pink light bulb in your desk lamp and serve coconut water in your office cooler.

I’m sure other expats who have been here a while would have a few suggestions and/or a cautionary tale or two.

Luiz Health Update

It has been a while since I reported on Luiz´s progress (sic) in his fight with Chronic Lymphocytic Leukemia.

Mostly Luiz tries to ignore the fact that he lives with cancer and we take good advantage of the state-provided free bus transportation for him and myself. (It saves us a TON of money!)

Every two months Luiz goes to the national cancer institute in Rio for a check up. They do a blood workup and a physical exam. He is working with his fourth medical intern at this point. They are typically enthusiastic and thorough (although his last intern was a pain in MY @ss).

In any case... his visit last week showed him to be holding steady in his blood numbers (no progression of the disease) and remaining healthy as a horse (although common colds linger much longer than they should).

I am so proud of Luiz - and grateful to the goddesses that he remains healthy after four years post diagnosis. Keep it up - my love!

Thank you all for your kind thoughts and prayers on Luiz´s behalf.

Why we don´t own a car

When we lived in San Francisco we first had one car each, then later sold off one and just had our little wagon. Even that was a hassle, with no off-street parking. We got occasional tickets for parking during street cleaning times. But it was actually more car than we needed.

Luiz and I are city folk. We walk. We take the bus. We ask our friends for a lift. We occasionally take a taxi. We do not envy car owners.

When we travel we take busses or planes. No problem. Busses in Brazil are NOTHING like Greyhound in the US. Nothing. Very comfortable and safe.

Our apartment location is PERFECT for all our daily needs - AND we have about 15 bus lines that pass within three blocks that can take us to either our nearby friends´ or to numerous spots in Rio, or elsewhere.

Even better [sic] is Luiz´s free bus pass for him and a companion (that would be me) because of his chronic health situation. So we pay nothing to use the bus.

Buying a car in Brazil is not only fraught with peril - it is rediculously expensive (not to mention the price of parking, taxes, insurance -- and gas!) We prefer to put the $$ in our travel pig and make an adventure.

More details about the perils of buying a car in Brazil here.