Wednesday, July 3, 2013

World Cup Samba in 2014? Not so fast!

 Brazilian phenom Neymar and Brazil captured its fourth 
consecutive Confederations Cup title at this years tournament.
For the first time ever the land where soccer aka futebol is worshiped is finally getting its biggest attention on the world stage. FIFA World Cup is coming to Brazil in 2014. I can already picture all the fanfare that should make for a very colorful and festive Opening Ceremony. The Confederation Cup tournament is supposed to be a preview of the World Cup and if that was so, then what we saw on our television screens was not something to look forward to. Thousands of people protesting against the government for its lack of investment in healthcare, education and infrastructure. Brazilian newspaper o Estado de Sao Paulo estimated that  over 353 Brazilian cities were affected by protests. It is impossible to describe the average protester since it would be a task similar to describe the average Brazilian, whatever that means. Although it is virtually impossible give a face to these nationwide protests, A Folha de Sao Paulo published a portrait of the protesters in Sao Paulo:
- 84% backed no political parties
- 77% have higher education
- 22% students
- 53% aged under 25
- 71% first-time protesters
To understand the frustration of Brazilians is to closely analyze the government's handling of the preparations. In May 2012, according to the U.S. Chamber of Commerce  Brazil expected to invest about R$27.1 billion to prepare stadiums, transportation and other infrastructure for the 2014 World Cup. Brazilian ministers claimed that Brazil had already started work on 60 out of the 101 projects it had planned for the global soccer championship, with five projects completed. 

In terms of investment, the 60 projects account for R$17 billion. But with many projects still in the planning stages, and many others awaiting licenses or the start of construction, the total value of investment is likely to increase.  The government expects 85% of projects to be completed by this year, with the remaining projects being finished in 2014. 
 
According to the government, work on stadiums for the event are "on schedule." Public financing will account for about 40% of the projected costs, public-private partnerships will contribute another 40%, and private investment chipping in the remaining 20%. National development bank BNDES alone has provided more than R$1 billion in financing.  Renovations of five airports, meanwhile, already have been completed, and another five are under way. However, that still leaves three airports considered a "priority" for the Cup that have yet to start construction on needed improvements. So the question is where is all this money coming from and where has the money been spent? 

Brazil is the 7th largest economy in the World, but the biggest plague in Brazil is the constant existence of political corruption. Brazil's mensalão trial has brought many historic moments, and on November 12th, 2012 José Dirceu, who served as chief of staff for former president Luiz Inácio Lula da Silva from 2003 to 2005, was sentenced to ten years and ten months in jail for his part in the huge vote-buying scheme. Two other prominent members of the Workers' Party (PT) also received stiff sentences: Delubio Soares, its former treasurer, got eight years and 11 months in prison, and José Genoino, its former president, six years and 11 months. This tells me that Brazil is taking serious steps to end this common standard practice.

One common problem is the delay tactics used by Brazilian politicians in order for more money than necessary to be allocated for these projects. Many football Clubs are also part of the problem as stadiums get renovated Clubs begin competing for more money to be spent for their own needs. Many Clubs have their own stadiums. Some privately owned and others public property. Privately owned stadiums don't want to spend their own money and instead want the State or Federal funds to cover the renovation costs furthering the delay in construction. In the meantime the public sees little progress in healthcare, education and most important public transportation as well as infrastructure. The protests during the the Confederations Cup stemmed from the increase in public transportation fares that brought outrage to the protesters. Brazilian current President Dilma Rousseff's approval rating sank by 27% points in less than three weeks as Brazilians took to the streets all over Brazil calling for a wide-range of reforms.
Brazilian President Dilma Rousseff

Come June 2014, I'm sure all these issues will be addressed to prevent further embarrassment to the country where the beautiful game is surrounded by its beautiful people as well as its nature. Brazil is still evolving as a nation and around the corner is another big event, the 2016 Summer Olympics. Hopefully by then the television sets will be focused on the actual games instead of the protests by its people crying out for change.