Image of corrupt politician Rousseff of brazil

Brazil’s Evolving Political Climate: How Your Business can Benefit

For the past three years, Brazil’s corruption scandals have gained international notoriety, especially among those doing business with Brazil.

 
 

Brazil’s Corrupt Past

 

Operation Car Wash began as an investigation into doleiros, black-market dealers who used businesses to shelter crime money. This initial investigation discovered that these doleiros were working for Paulo Roberto Costa, an executive at Brazilian national oil business Petrobras, creating what the press describes as “the largest corruption scandal in history.”

 

The anti-corruption movement in Brazil has indicated that the nation's political and financial system is beginning to evolve.

 

Brazilian police learned that these millions in hidden crime funds were funneled to Brazil’s political parties, including the party of former Brazilian president Luiz Inacio Lula da Silva, to fund their campaigns in an effort to keep them in power and continue the crime cycle.

 

Past corruption in Brazil seemed to gather a few headlines by the police before being forgotten. Brazilians describe this as acabou em pizza (to end up with pizza), as it seemed there was no wrongdoing that could not be settled over a meal.

 

A Hopeful Future

Dilma Rousseff, who took over as Brazil’s president after the corruption allegations against da Silva, wanted to ensure that these issues weren’t “settled.”

 
corrupt temer speaking
 

Trying to pacify an angry public, she enacted measures for rooting out fraud and corruption: plea bargaining, and the ability for prosecutors to make deals with suspects for information that can incriminate more important figures.

 

Operation Car Wash ended up uncovering over $2 billion USD siphoned off Petrobras in bribes and other hidden transactions, $3 billion USD paid in bribes to construction business Odenbrecht, more than 1,000 politicians being paid by meat-packaging firm JBS, and four presidents under investigation.

 

Ironically, Rousseff and da Silva were both accused of corruption, cartel formation and money laundering with Petrobras in the fall of 2017. Once impeachment proceedings against Rousseff were underway, Michel Temer took over as interim president despite also being accused of corruption in Operation Car Wash.

 

The anti-corruption movement in Brazil has indicated that the nation’s political and financial system is beginning to evolve. The public is beginning to praise the judges and police involved in Operation Car Wash, rather than the corrupt Brazilian executives, presidents and politicians.

 

Banks in Brazil are under fire as well, leading Brazilian businesses and people to trust ecommerce and blockchain payment providers like Veem as payment alternatives to avoid Brazil’s corrupt banks.

 

Operation Car Wash ended up uncovering over $2 billion USD siphoned off Petrobras in bribes and other hidden transactions, $3 billion USD paid in bribes to construction business Odenbrecht, more than 1,000 politicians being paid by meat-packaging firm JBS, and four presidents under investigation.

 

The likelihood of Michel Temer remaining president after the 2018 general election, especially after being accused of corruption, is slim to none, opening the door to potential positive change.

 

It may have been a painful evolution, but Operation Car Wash was necessary to change Brazil’s business and political structure. With a new focus on anti-corruption and the measures put in place by Rousseff to imprison high-ranking executives and officials, a new president has the necessary framework to improve Brazil’s national reputation and gain the public’s respect.

 

How does this impact exporting goods from Brazil?

Brazil is the ninth largest economy in the world and is primed to evolve into a developed country in the future, with valuable natural resources and a strong demand over the biofuel industry. Without corruption lingering over Brazil, foreign businesses will be much more interested in the country.

 

Without corruption lingering over Brazil, foreign businesses will be much more interested in the country.

 

Similar to the principle of buying low and selling high, businesses that start working with Brazil now, during this “political revolution”, instead of later can get a head start on the competition. Considering the importance of personal relationships in Brazilian business culture, knowing Brazilian clients longer than other foreign businesses can give you the advantage in business negotiations.

 

Another way to improve your relationship with Brazilian suppliers is by using Veem. A connected payments platform, Veem makes receiving payments from Brazil as easy as an email.

 

Veem also avoids the banks — in fact, it sends and receives payments at double the speed and half the price of the average bank.


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