Sorry Glenn Greenwald, But You're Wrong About Brazil

This article was first posted on HubPages on August 30, 2016. It is being republished with the full permission of the author.

Strangest Coup Ever

While many Americans likely have a cursory understanding of the political happenings in Brazil, it is important to make sure that the American public has a complete picture of what is going on. Unfortunately, many, such as CNN, have basically used only one source for the impeachment trials in the South American government. That source. Glenn Greenwald.

Now, I would like to preface this article by showing my utmost respect for Mr. Greenwald as an investigative reporter. His work on Edward Snowden and the uncovering of the NSA spy program was a great service to our country and he should be commended.

Unlike his work on the NSA program, Mr. Greenwald has allowed his personal relationships and political leanings cloud his viewpoint on what is happening in Brazil.

As an American living in Brazil - Greenwald is also an American living in Brazil - I think it is my duty to clarify many of the misleading comments and assumptions Mr. Greenwald has made about the political situation. Let's use the interview he gave to Amy Goodman at Democracy Now! to start the conversation.

Mr. Greenwald's first response starts with him explaining how Dilma Rousseff, Brazil's currently suspended president, was arriving at the Senate to give a final 30 minute plea and to answer questions from senators. This is precisely the problem when Mr. Greenwald and others have described what is going on in Brazil as a golpe or coup. This loaded word, especially when considering Latin American history, gives listeners and readers the impression of a military takeover or undemocratic force of power in order to remove Rousseff. Yet, how can it be that Rousseff is a victim of a coup if she has been afforded all the legal provisions including the aforementioned 30 minute speech and the question and answer session?

Is it possible that Brazil does not know how to successfully stage an actual coup? Recent history of a military dictatorship would suggest otherwise.

Below are some examples of the other legal provisions Ms. Rousseff was afforded since accusations of fiscal fraud were brought upon her.

• The question and answer session includes senators of all parties including Ms. Rousseff's own Partido de Trabalhadores, or PT, and parties that have aligned in favor of Ms. Rousseff including, the Communist Party of Brazil and the Party of Socialism and Liberty.
• The sessions of the House of Representatives (Camara de Deputados) and Senate to impeach Ms. Rousseff were shown live on Brazil's largest TV station, Globo, and not done in secrecy. All members, including congressmen and congresswomen against impeachment, were allowed to publicly speak.
• Ms. Rousseff has used the services, even while suspended, of the government's attorney general, Jose Cardozo. Mr. Cardozo has been responsible for Ms. Rousseff's defense before and after her suspension.
• Ms. Rousseff has been afforded all benefits of her presidency during her suspension including a monthly food budget, housing, etc. Before her suspension Ms. Rousseff spent approximately R$62 thousand reais (approx. $21 thousand dollars) per month in food, while her country is experiencing one of its worst economic crises in history.

Furthermore, Ms. Rousseff was provided with all the benefits and provisions outlined in the country's most recent constitution written in 1988 following a military dictatorship. Moreover, the nation's supreme court, which has played the important role of checking and balancing the executive and legislative branch, is mostly made up of appointees from Ms. Rousseff's ruling party. Of the 11 supreme court justices 3 were appointed by Ms. Rousseff's predesccor, Luiz Inacio Lula da Silva, while 5 were appointed by Rousseff herself. Currently, the head of the supreme court and the justice presiding over the question and answer sessions, Ricardo Lewandowski, was appointed by Lula.

As a party that started on the outside fighting for the working class, PT likes to constantly give the impression that they are victims, while after 13 years they had consolidated power in each branch of the government.

Don't Believe Ms. Rousseff is Victim of a Coup

Half Truths, Lies and Misinformation

In his first response, Mr. Greenwald gives the impression that Ms. Rousseff is being brave by giving this 30 minute speech, a speech whichshe doesn't have to give. Of course, this ignores the obvious fact that Ms. Rousseff, rightfully so, wants to defend her legacy as she is likely to be removed from office on Saturday. Again, where in an actual coup does the leader get to officially defend themselves?

Mr. Greenwald also fails to tell the audience that Ms. Rousseff is currently a subject of a documentary that is expected to show her in a positive light, and that her defense would make great footage for the film.

Ms. Rousseff won the 2010 with no political experience. Her previous role was that of Minister of Mines and Energy. Ms. Rouseff headed this department, while the Petrobras bribery scandal was taking place. Ms. Rousseff claims ignorance as she does with the current charge, which makes one wonder whether or not she is unfit for her dishonesty or incompetence.

Next, Mr. Greenwald goes on to say this about the interim president, Michel Temer:

"And it’s really quite a remarkable contrast with her former vice president, now the interim president, who’s about to become the country’s unelected president, Michel Temer. During the Olympics, Mr. Temer broke protocol by demanding that his name not be announced at the opening ceremony, because he was scared of being booed by the crowd. That’s how unpopular and hated he is. And yet, when the crowd actually saw him, even without his being announced, they did boo him, quite viciously. And then he hid during the closing ceremony by skipping that. And while he’s hiding, Dilma, who, of course, has a history as a fighter against this country’s former military dictatorship, who went to prison over that, who endured years of torture while imprisoned as a political prisoner, chooses to go and confront her accusers face to face and will give what, by all accounts, will likely be a very strong and aggressive and defiant speech consistent with her character and her political persona."

Let's start with the Olympics. Ms. Rousseff decided of her own accord - again, not a coup - to not participate in the Olympic Games in Rio de Janeiro, because she didn't want to be seen in a secondary (below Mr. Temer) position. Here. Mr. Greenwald, who is a former lawyer and should know better, does not disclose two pieces of information. First, the International Olympics Committee discourages political speech during the games regardless of the political party in power. In Rio, an Iranian woman was asked to leave after protesting the Persian country's treatment of women. As a host of the games, Brazil must abide by this provision. Secondly, just before leaving office in May, Ms. Rousseff herself signed a law prohibiting political speech at sporting events. Ms. Rousseff was regularly booed at World Cup matches in 2014 prior to her reelection.

Bringing the first World Cup since 1950 and the first ever Olympics Games to South America was a crowning achievement of Lula, Rousseff and PT. One wouldn't get that impression if they watched leftist protests or listened to Mr. Greenwald.

Mr. Greenwald is also disingenuous when he claims that Mr. Temer was "unelected." This gives the impression to outsiders that Mr. Temer and his party simply took over, which would qualify as a coup. However, Mr. Temer of the political party, PMDB, is Ms. Rousseff's vice-president! He has been so since 2011 when Rousseff took office for her first term. His succession follows the Brazilian constitution. Mr. Temer was elected just as much as Ms. Rousseff was. More on this later.

Mr. Greenwald gives the impression that Rousseff is popular and popular sovereignty is being usurped. He is correct in stating that Mr. Temer is unpopular in the country, but he fails to mention two important pieces of information; Mr. Temer's unpopularity is based on the fact that half of the country did not vote for the Rousseff/Temer ticket, and that Ms. Rousseff is even less popular than Mr. Temer. In fact, by July 2015 Rousseff's approval rating was 9%. Since then, it has stayed in the high single and low double digits. Mr. Temer has actually slightly higher approval ratings.

Furthermore, Rousseff's predecessor and mentor, Lula, also ran on a ticket with a vice-president - Jose Alencar of PRB - that was not of his own party in 2002 and 2006. Apparently, the issue of vice-president's of opposing parties is not an issue when it is convenient political maneuvering to win elections, but a big issue when it doesn't help one's cause.

Watching the coverage of the impeachment trial and the politics involved, I find it fascinating the left's attempts, especially when talking to those outside of the country, to frame the situation as if Rousseff is popular "among the people." Of course, that is simply not true and proven not only by data, but by the dismantling of her former political bloc. One of the problems with using populism as a political tool is that it only works when you're popular.

Read the rest of this article at Sorry Glenn Greenwald But You're Wrong About Brazil

Unemployment Approaches 12% in Brazil

According to the Institute of Geography and Statistics, the unemployment in Brazil in the quarter ending in July reached 11.6%. Based on IBGE numbers, the number of unemployed in the South American nation rose 37.4% compared to the same time period in 2015.

Another Brazilian files for unemployment benefits

The current rate of unemployment is the highest since 2012. In the first quarter of 2016 the unemployment rate was 11.2%, an increase of 3.8%.

In total, IBGE estimates that there are 11.8 million unemployed Brazilians. Of the 90.8 million workers that are employed, 34.3 million have signed workbooks. A signed workbook is used by the government to guarantee worker rights and benefits including, unemployment benefits.

With the increase in unemployment, the average worker's salary has also fallen. Currently, the average worker is making R$1,985 per month. Employers cannot legally lower employee salaries meaning new employees are being hired at lower rates. In relationship with the same time period in 2015, salaries dropped 3%. Average salaries remained stable compared to the previous quarter.

The number of people deciding to be self-employed, estimated at 22.6 million, rose 2.4% compared to 2015 and 1.5% compared to the first quarter.

Among the areas in which employers cut the most jobs, general industry fell 10.6%, and information technology, communication and financial activities, real estate, professionals and administrators dropped 9.8%. 

Source: Globo (in Portuguese) Unemployment Continues to Rise in Brazil

Ambev Releases Cold Beer Delivery Service

Latin America's largest brewer, Ambev, has recently announced it will provide delivery service for cold beer in Brazil.

The unique delivery service will first be available in the greater Sao Paulo area, Sao Paulo proper and Ribeirao Preto before being expanded into other regions and cities across the country.

The idea of cold beer delivery was born at Ze Delivery, an in-house delivery provider of Ambev. Ze Delivery offers Ambev's most recognizable brands and specialty beers and imported beers.

Customers can also request other alcoholic drinks as well as non-alcoholic drinks, such as soft drinks and energy drinks. Depending on the region in question, Ze Delivery will deliver even barbecue staples like meats, ice and charcoal.

Products can be delivered within an hour and come cold or frozen. To request a delivery customers must access the company's website, type in their zip code and choose their products. Payments can be made with credit or debit cards or cash, and the service is available through the late night.

Source: Supermercado Moderno (in Portuguese) Ambev Starts Cold Beer Deliveries

French Automotive Company Expands in Brazil

French automotive manufactuer, Renault, recently announced it will be producing two new models in Brazil. The news is welcomed in South America's largest economy as the country goes through its worse economic crisis since the 1930s.

Specifically, Renault will begin producing Captur, a sports utility vehicle, and compact car, Kwid. Production will take place in the country's Southern region in the capital of the state of Parana, Curitiba. The news was announced last Thursday by Renault-Nissan Alliance CEO, Carlos Ghosn.

In front of reporters in the city that will produce the new models, Ghosn said that he "sees the Brazilian market stabilizing after steep sales reductions amid the country's worst recession in decades."

According to association and manufacturer data, Renault ranked sixth among automotive manufacturers in 2015 having sold 180,532 vehicles, a -23.7% drop from the previous year. In Brazil in 2015, Fiat, Chevrolet, Volkswagen, Ford and Hyundai led manufactuers. Renault held the same position in 2014 when it sold 236,721 vehicles.

Among the top ten models sold in 2015, the compact car, Renault Sandero, held the eighth position with 77,838 vehicles sold, a decrease of -22.5% from the year before. Despite the decrease, the model moved up a spot from 2014 when 95,385 Sanderos were sold across Brazil.

Captur and Kwid models are expected to be with Brazilian car dealerships by 2017. Renault is betting on these models to help it increase its market share of 6.7% in the country. More specifically, the Brazilian-born Ghosn said he is targeting 8 percent share with long term goals of 10 percent.

Regarding the Brazilian auto market, Ghosn said:

"Right now we see Brazil's auto market recovery with great hope. I don't think anybody believes the Brazilian market will stay around 2 million vehicles (of annual sales)."

As recently as 2009, Renault had less than 4% of the market. After adding to its capacity and releasing popular new models, the company's share grew. In particular, the company's SUV, Duster, was able to take on other popular SUV models, such as the Ford EcoSport.

Overall, auto sales in the South American giant have been cut in half since peaking in 2012. The main culprit is a gripping economic crisis that has led to high inflation, low consumer confidence and high unemployment. Furthermore, governmental and industrial policies have hurt the industry. The final cost of a car in Brazil may be composed of up to 50% in taxes.

Auto manufacturers are hoping the market has stabilized and growth is in store in the near future.

According to Ghosn Brazil has the potential to sell 3.5 million to 4 million cars a year.

See similar articles:

Most Popular Automotive Companies and Models First Half 2016
Fiat Leads Car Manufacturers in 2015

Read more at Business Insider Renault to Produce Two New Models in Brazil

Gol Airlines Makes Changes

Gol Airlines, the second largest Brazilian airline, has decided to swap their Chief Financial Officer and board members as the company restructures.

Gol's restructuring is taking place during an economic upheaval in the South American nation. Gol is the second largest airline behind TAM. Earlier this year TAM finalized its partnership with Chilean airlines, LAN, to create LATAM. Read more about the merger TAM Merger Best for Consumers

The Brazilian airline has decided to hand over the reigns to the chief financial officer who took the company public. The company also named two new board members as the company needs to restructure its debt as the economic crisis wrecks the country's travel industry. Gol is hoping these changes will attract bondholders' cooperation.

Gol Linhas Aereas Inteligentes SA began in 2001 and began offering international flights by the end of 2005. By 2014, the company owned 32% of the market share in the country. In 2016, the company staved off bankruptcy selling nearly half of their shares to American airline, Delta.

It was in 2003 that Gol's former and newly appointed CFO, Richard Lark, took the company public on the country's stock exchange, Bovespa. Lark held the position from 2003 to 2008. Lark's nomination to his former post was made public via a securities filing made last Thursday. Lark's seat will be filled by Andre Janszky who is the managing partner of the law firm, Milbank, Tweed, Hadley & McCloy's Sao Paulo office.

Current CFO, Edmar Prado Lopes Neto will continue with the company and "will take on new challenges within the group after the transition is completed," according to the securities filing. It was Neto who earlier this month noted that an unpopular bond swap was no enough to resolve the company's debt burden. The debt burden has resulted in four years of heavy losses and puts the company in a difficult situation as the country's economy continues downward.

Ana Luiza Constantino, who is a member of the company's controlling family, will take the board seat of Henrique Constantino. Henrique was arrested in July in the Lavo Jato corruption investigation, which has confiscated a large amount of funds and has arrested many politicians and businessmen. The investigation has also contributed to the suspension of Brazilian president, Dilma Rouseff.

Read more from Reuters Gol Substitutes Management

Check out these related links.

Foreign Ownership of Air Companies On Hold
Top American Airlines to Get Breathing Room

Sales Rise for Coca-Cola in Brazil

In Brazil, sales for Coca-Cola totaled 9.264 billion Mexican pesos (US$ 493.2 million) in the second trimester of 2016. This represents a 5% increase in comparison to the same time period the year before.

While in value sales rose, in volume sales of Coca-Cola fell in the country. In volume, sales fell 4.6% between April and June equaling 148 million boxes. During the period, sales of soft drinks fell -5.2% in volume to 130.5 million boxes. In terms of revenue, sales of soft drinks rose 6.3%, according to the company.

Coca-Cola Femsa also presented a drop in volume in sales of water of -1.2% and other non-alcoholic drinks, -2.5%.

According to the company, revenue of beer in Brazil reached 1.514 billion Mexican pesos (US$80.6 million) in the second trimester.

Similar articles:

Coca-Cola to Make Acquisitions in Latin America

Beer and Soft Drink Production Falls in June

Read more at Supermercado Moderno (in Portuguese) Sales Rise for Coca-Cola in Brazil

Carrefour Relaunches E-Commerce in Brazil

For the second time, French company, Carrefour, will launch e-commerce in South America's largest economy. At first, the new operation will include non-food items. The sale of food items is projected to start in 2017.

Following an unsuccessful experience between 2010 and 2012, the Brazilian arm of Carrefour, Grupo Carrefour Brasil, relaunched its e-commerce platform yesterday, July 26. Carrefour.com is the result of two years of investments of high tech and specialized equipment for the sector. The new e-commerce that includes a team of 300 employees will be run by Francisco Donato, former Walmart.com and Magazine Luiza manager.

With the new e-commerce platform, the Brazilian operation of the company becomes the only one in the world with all formats.

"The beginning of the e-commerce operation in Brazil reinforces our omnichannel strategy. We invest in high performance technological solutions and in qualified professionals to construct an innovative operation," said Charles Desmartis, GEO of Group Carrefour Brasil.

After observing how e-commerce functioned in Carrefour stores in France and Spain, Donato brought the European know-how and made adaptions for Brazilian consumers. In the beginning, the website will offer a variety of products from 12 categories divided between Home and Family, Tech and Electronics, Health and Well-Being and Kids.

"Our focus will be on Home and Family. Our research reveals that the image of Carrefour Brasil, our brand, is associated with Home and Family. We will sell electronics, because we need to sell electronics as well," explained Desmartis.

By the end of 2016, the website will increase its product offerings starting with its marketplace operation, including Automotive and Tools, Culture and Leisure, Fashion and Pets.

"We intend on being an Amazon. Our operation will be slim, but with quality," said Donato.

Food items are expected to be sold via the site next year.

"It's natural given that food sales is an enormous part of Carrefour. Besides this is something that is rarely explored in Brazil, and we want to be the leaders in this," explained Donato.

Looking to the long term future, the retailer is also betting on progressive integration of this platform with physical stores. This will make it possible for customers inside of the hypermarkets to acess the e-commerce site, integrating the channels and providing a wider variety of products. According to Donato, clients will be provided with many services that will make things easier like exchanges and returns and technical support of the e-commerce site inside the physical stores.

"By the end of the year we want to have 30,000 items available on Carrefour.com. In 2017, we want to have 200,000," said Donato.

In the first stage of the company's plans, the e-commerce platform with service the highly populated Southeast region of the country that includes Sao Paulo and Rio de Janeiro.

"First, we want to take a look at the performance of the operation in the Southeast and gradually expand to the South, Midwest, Northeast and North, respectively. This take place in the coming months," said Donato.

Carrefour.com will rely exclusively on a distribution center in Embu das Artes, Sao Paulo.

Read more at Supermercado Moderno (in Portuguese) Carrefour Relaunches E-Commerce in Brazil