By Pierre Bono
Now only a few months away from the commencement of the World Cup, which will be held throughout twelve Brazilian cities, a growing sentiment of socio-economic upheaval has gripped the newly pre-eminent power in South America. Shortly before millions of domestic and international soccer fans begin to swarm towards a dozen of the most populous cities in Brazil, many issues continue to plague not only the physical development of World Cup infrastructure, but also the millions of lower and new middle class Brazilian citizens.
Starting in earnest on June 6, the protests began in light of drastic increases to the price of public transportation, approximately a nine percent hike. Soon thereafter the protests grew both in scope of civilian involvement and depth of displeasure. Issues concerning institutional integrity, the government’s intentions, and fiscal mismanagement are among the top problems affecting the citizens of Brazil. As the eyes of the world begin to look towards the impending host of the 2014 World Cup, increased media scrutiny and doubts regarding Brazil’s capacity to manage the daunting task of keeping the peace, and ensuring the safety of those attending the festivities has grown. However, to truly understand the problems that Brazil is now facing, it is important to quickly reexamine Brazil’s ascendancy to its highest levels of economic strength and political clout in its history and see how these developments have in part led to the now prolonged struggles it faces concerning its own identity and its future.
Over the past decade, Brazil has seen the growth of a greatly rejuvenated economy and a more robust political infrastructure, one that has allowed its presence to be felt and respected widely across both South America and even further abroad. One of the big benefactors of U.S.-sponsored globalization during the latter stages of the 20th century, Brazil has enjoyed a great liberalization of financial and economic markets. Brazil has, until recently, engaged the 21st century with steady annual posting of strong growth and low inflation, lifting approximately 40 million Brazilians out of moderate to abject poverty into a now burgeoning middle class. The benefits that the expansion of the Brazilian economy has brought are extremely impressive, especially considering where Brazil was at the turn of the 1980s into the 1990s. Embracing regional multi-national agreements, and participating more influentially in broader efforts associated with international organizations, Brazil has grown from merely a large state with untapped potential into a powerful state, which readily accepts its newfound position and refuses to look back. The organization of Mercosur, inclusion in the G-20, and joint efforts between Brazil and the U.N. serve to support the rising influence of Brazil and its people across many borders.
The problems that Brazil faces today go much deeper than hikes in transportation costs. They strike the very successes that have elevated Brazil to the highest levels across the board in its history. The economic boom that Brazil enjoyed towards the end of the 20th century has tapered off, at least for the time being. However impressive the gains may have been they are now being followed by unavoidable social and institutional growing pains. At around 1 percent annual growth and steadily rising inflation rates, up to 6.5 percent recently, the Brazilian economy is struggling to maintain the momentum and growth that fostered their new middle class. The aforementioned increase in public transportation costs, coupled with spikes to commodity prices, and the incremental devaluation of Brazilian currency have put a strain on not only Brazil’s now large middle class, but also its still massive lower and extremely lower classes. Many of the latter still live in conditions of informal housing and slums, which are not served by amenities such as water, electricity, and heat. Globalization has lifted millions of Brazilians to economic and social stability, but still millions more have been glossed over, and very little growth has trickled down to them.
Allegations old and new of political corruption, neglect of infrastructure, and misplaced investments of state funds (most dramatically the $26 billion earmarked for World Cup and Olympic Preparations in 2014 and 2016) are now resurfacing and manifesting themselves in mass protests. Massive recent growth has placed a lot of stress on social and institutional developments, which have now slowed many of those who have benefited as well as those striving to benefit. Over the past year or so, Brazilians have begun voicing their anger and objections to policies and intentions of a government they see as getting in the way of its people.
Remarking on the economic growth of Brazil in recent decades and its effects on historical traditions of widespread poverty and inequality, Suffolk government professor Roberto Dominguez said that although many improvements have been made and many gaps have been narrowed, the continued minimalization of inequality felt by many in Brazil’s exploding cities and favelas “will take time” and that in the big picture “Brazil is still moving in the right direction.”
It seems that the issues now facing Brazil are problems that many less developed countries would enjoy. Stresses induced by rapid growth, in both national wealth, and social elevation “have produced more people in a middle class that is more aware.” Now that millions of Brazilians have enjoyed and witnessed the steady elevation of their place in society it is impossible to turn back to what once was.
Furthermore, the newfound awareness and political fervor that has come with the territory of the middle class and the aspiring middle class demonstrate that the mass protests are not necessarily a sign of national weakness per se or even dangerous instability.
Dominguez argues that the “protests are the result of a slow transformation;” one based in the neighborhoods and cities of Brazil which is now catching up to the gains of the state at large in the economic and political sectors. In times when domestic unrest is coupled with the international media lens, it is important to maintain perspective on the situation and see the forest for the trees.
Comparatively, in order to fund its Olympic project, Russia spent approximately $51 billion on construction and infrastructural development, a little less than twice of what Brazil has reserved to spend over the next few years on two major international sporting endeavors. When seen in light of similarly placed societies, Dominguez sees the protests as extremely important for recently organized and mobilized Brazilians, who ought not to defer “the great opportunity for civil society to voice their opinions and desires.” Brazil’s recent successes have given millions of people a voice where they once had none, and although the situation on the ground seems dire and indicative of worse to come, we should not exaggerate the consequences of relatively sporadic violence and escalations.
It is likely that Brazil will endure the present tumult and push through to greener pastures as a stronger nation. The reconciliation of national growth with the wants and desires of a burgeoning middle class and an aspiring lower class, both of who are looking for higher levels of institutional support and social elevation, seems to be a goal well within Brazil’s reach. Although, the development and renovation of massive sporting arenas, largely devoid of utilitarian purpose outside of competition has come at a time of societal stress and inflamed strong sentiments across the country.
As a new power on the regional and global stage, Brazil seems to be blessed with a blossoming society, which is no longer unable or unwilling to speak up for itself. It can be expected of Brazil to maintain for the time being, and then continue to push for greater distribution of wealth and resources domestically as well as influence both regionally and globally.