Brazil’s Prosecutor-general Says Only a New Culture Can End the Country’s Endemic Corruption

Brazil’s Prosecutor-General Rodrigo Janot released a statement saying that the unprecedented quality and quantity of the investigations conducted over the last few years have left the investigated with no other choice but to attempt to “undermine and discredit” those whose job is to fight corruption.

“One cannot fail to acknowledge the significant steps taken in Brazil over the last years in the fight against corruption. There is no going back now, even though there is still a lot to be done,” he added.

The statement was made during the launch ceremony of an initiative dubbed All Together Against Corruption, one day after the Federal Police finished its probe in which signs were gathered of crimes believed to be committed by President Michel Temer and aides in the so-called “PMDB lower house gang.”

“Since there are no excuses for the huge amount of facts brought to light, the strategy of the defense couldn’t be any other than attempting to undermine and discredit those charged with the fight against corruption,” Janot pointed out.

As for the campaign, Janot said its purpose is to develop a set of preventive strategies.

“A culture completely averse to corruption must be created, raising awareness and engaging the population in the key role of organization and mobilization against this scene of patrimonialism, underhandedness, and clientelism, which sadly marks the course of our history,” he said.

Temer and PMDB

An investigation initiated by the Federal Police has brought to light signs of crimes allegedly committed by President Michel Temer and other representatives of the Brazilian Democratic Movement Party (PMDB) in the lower house. A note was released Monday (September 11) by the police.

The group of criminals is believed to be made up of Chief of Staff Eliseu Padilha and Moreira Franco, head of the government’s secretariat, in addition to former Ministers Geddel Vieira Lima and Henrique Eduardo Alves, and former lower house speaker Eduardo Cunha.

PMDB leaders, the police argue, relied on “an organizational structure aimed at directly and indirectly obtaining illicit advantages at public agencies.”

Crimes include the taking and paying of bribes, money laundering, bid rigging, and illicit transfer of funds abroad. A report is to be sent to the Supreme Court.

In a note, the presidency declared that Temer “does not participate and has not participated in any criminal organization.” “Nor has the president taken part in any ring aimed at obtaining illicit advantages, either directly or indirectly, at public agencies.

“President Temer deplores that unfounded allegations made in an attempt to denigrate his honor and public image are leaked to the press before due appreciation by the authorities,” the statement reads.

Padilha’s press office said he was only to make comments “after formal charges worthy of a response are filed.”

Minister Franco said he never joined a group to participate in any wrongdoing. “I despise such suspicions. I will answer conclusively as soon as I am given access to the report drawn up by the investigators. I am being forced to speak about something I am not familiar with as yet. This is not democratic.”

In a note, Henrique Eduardo Alves said that, for over 40 years, he has been a member of the PMDB—not a criminal organization. “The efforts to criminalize the political activity undermines democracy. The innocence of the PMDB will be proved over the course of the case.”

Geddel’s and Cunha’s defense lawyers were contacted and failed to answer as of the publication of this article.

Eduardo Cunha, Henrique Eduardo Alves, Geddel Vieira Lima were arrested as part of the probes under Operation Car Wash.

New Charges Against Lula

Federal prosecutors filed new corruption charges against former President Luiz Inácio Lula da Silva and his ex-minister Gilberto Carvalho. The allegations also target five other individuals for benefiting auto companies by enacting provisional decrees.

The auto companies are believed to have pledged to pay US$ 1.9 million to both Lula and Carvalho in exchange for advantages in the car industry.

Faced with this promise, prosecutors believe, “the public officials, in violation of their duties, benefited assembly plants MMC [Mitsubishi] and Caoa by promptly and atypically enacting Provisional Decree 471 on November 23, 2009, in strict accordance with prior arrangements, also granting the corruptors the knowledge of its draft before it was enacted and its sections numbered, after the adjustments were made as arranged.”

In a note to the press, the Lula Institute said the enactment of Provisional Decree 471/2009 fully complied with the law in its process of deliberation. The institute goes on to describe the charges as an act of persecution against the former president.

“The new charges concerning the enactment of Provisional Decree 471/2009 are not just unfounded, but also illegal and immoral. The prosecutors who penned it attempt once again to dwell upon a topic that has been the subject of criminal cases and has been brought before court for trial over a year ago,” the note reads.

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It seems the future never arrives in Brazil What Lies Ahead in Brazil? Brazil Has No Exemplary Past or Present. But What Lies Ahead for the Country? Europeans, US, developed country, developing country. Bolsonaro, future B. Michael Rubin For years, experts have debated what separates a developing country from a developed one. The GDP (Gross Domestic Product) of a country is one simple way to measure its economic development. Another way to measure a country's progress is the extent of public education, e.g. how many citizens complete high school. A country's health may be measured by the effectiveness of its healthcare system, for example, life expectancy and infant mortality. With these measurement tools, it's easier to gauge the difference between a country like Brazil and one like the U.S. What's not easy to gauge is how these two countries developed so differently when they were both "discovered" at the same time. In 1492 and 1500 respectively, the U.S. and Brazil fell under the spell of white Europeans for the first time. While the British and Portuguese had the same modus operandi, namely, to exploit their discoveries for whatever they had to offer, not to mention extinguishing the native Americans already living there if they got in the way, the end result turned out significantly different in the U.S. than in Brazil. There are several theories on how/why the U.S. developed at a faster pace than Brazil. The theories originate via contrasting perspectives – from psychology to economics to geography. One of the most popular theories suggests the divergence between the two countries is linked to politics, i.e. the U.S. established a democratic government in 1776, while Brazil's democracy it could be said began only in earnest in the 1980s. This theory states that the Portuguese monarchy, as well as the 19th and 20th century oligarchies that followed it, had no motivation to invest in industrial development or education of the masses. Rather, Brazil was prized for its cheap and plentiful labor to mine the rich soil of its vast land. There is another theory based on collective psychology that says the first U.S. colonizers from England were workaholic Puritans, who avoided dancing and music in place of work and religious devotion. They labored six days a week then spent all of Sunday in church. Meanwhile, the white settlers in Brazil were unambitious criminals who had been freed from prison in Portugal in exchange for settling in Brazil. The Marxist interpretation of why Brazil lags behind the U.S. was best summarized by Eduardo Galeano, the Uruguayan writer, in 1970. Galeano said five hundred years ago the U.S. had the good fortune of bad fortune. What he meant was the natural riches of Brazil – gold, silver, and diamonds – made it ripe for exploitation by western Europe. Whereas in the U.S., lacking such riches, the thirteen colonies were economically insignificant to the British. Instead, U.S. industrialization had official encouragement from England, resulting in early diversification of its exports and rapid development of manufacturing. II Leaving this debate to the historians, let us turn our focus to the future. According to global projections by several economic strategists, what lies ahead for Brazil, the U.S., and the rest of the world is startling. Projections forecast that based on GDP growth, in 2050 the world's largest economy will be China, not the U.S. In third place will be India, and in fourth – Brazil. With the ascendency of three-fourths of the BRIC countries over the next decades, it will be important to reevaluate the terms developed and developing. In thirty years, it may no longer be necessary to accept the label characterized by Nelson Rodrigues's famous phrase "complexo de vira-lata," for Brazil's national inferiority complex. For Brazilians, this future scenario presents glistening hope. A country with stronger economic power would mean the government has greater wealth to expend on infrastructure, crime control, education, healthcare, etc. What many Brazilians are not cognizant of are the pitfalls of economic prosperity. While Brazilians today may be envious of their wealthier northern neighbors, there are some aspects of a developed country's profile that are not worth envying. For example, the U.S. today far exceeds Brazil in the number of suicides, prescription drug overdoses, and mass shootings. GDP growth and economic projections depend on multiple variables, chief among them the global economic situation and worldwide political stability. A war in the Middle East, for example, can affect oil production and have global ramifications. Political stability within a country is also essential to its economic health. Elected presidents play a crucial role in a country's progress, especially as presidents may differ radically in their worldview. The political paths of the U.S. and Brazil are parallel today. In both countries, we've seen a left-wing regime (Obama/PT) followed by a far-right populist one (Trump/Bolsonaro), surprising many outside observers, and in the U.S. contradicting every political pollster, all of whom predicted a Trump loss to Hillary Clinton in 2016. In Brazil, although Bolsonaro was elected by a clear majority, his triumph has created a powerful emotional polarization in the country similar to what is happening in the U.S. Families, friends, and colleagues have split in a love/hate relationship toward the current presidents in the U.S. and Brazil, leaving broken friendships and family ties. Both presidents face enormous challenges to keep their campaign promises. In Brazil, a sluggish economy just recovering from a recession shows no signs of robust GDP growth for at least the next two years. High unemployment continues to devastate the consumer confidence index in Brazil, and Bolsonaro is suffering under his campaign boasts that his Economy Minister, Paulo Guedes, has all the answers to fix Brazil's slump. Additionally, there is no end to the destruction caused by corruption in Brazil. Some experts believe corruption to be the main reason why Brazil has one of the world's largest wealth inequality gaps. Political corruption robs government coffers of desperately needed funds for education and infrastructure, in addition to creating an atmosphere that encourages everyday citizens to underreport income and engage in the shadow economy, thereby sidestepping tax collectors and regulators. "Why should I be honest about reporting my income when nobody else is? The politicians are only going to steal the tax money anyway," one Brazilian doctor told me. While Bolsonaro has promised a housecleaning of corrupt officials, this is a cry Brazilians have heard from every previous administration. In only the first half-year of his presidency, he has made several missteps, such as nominating one of his sons to be the new ambassador to the U.S., despite the congressman's lack of diplomatic credentials. A June poll found that 51 percent of Brazilians now lack confidence in Bolsonaro's leadership. Just this week, Brazil issued regulations that open a fast-track to deport foreigners who are dangerous or have violated the constitution. The rules published on July 26 by Justice Minister Sérgio Moro define a dangerous person as anyone associated with terrorism or organized crime, in addition to football fans with a violent history. Journalists noted that this new regulation had coincidental timing for an American journalist who has come under fire from Moro for publishing private communications of Moro's. Nevertheless, despite overselling his leadership skills, Bolsonaro has made some economic progress. With the help of congressional leader Rodrigo Maia, a bill is moving forward in congress for the restructuring of Brazil's generous pension system. Most Brazilians recognize the long-term value of such a change, which can save the government billions of dollars over the next decade. At merely the possibility of pension reform, outside investors have responded positively, and the São Paulo stock exchange has performed brilliantly, reaching an all-time high earlier this month. In efforts to boost the economy, Bolsonaro and Paulo Guedes have taken the short-term approach advocated by the Chicago school of economics championed by Milton Friedman, who claimed the key to boosting a slugging economy was to cut government spending. Unfortunately many economists, such as Nobel Prize winner Paul Krugman, disagree with this approach. They believe the most effective way to revive a slow economy is exactly the opposite, to spend more money not less. They say the government should be investing money in education and infrastructure projects, which can help put people back to work. Bolsonaro/Guedes have also talked about reducing business bureaucracy and revising the absurdly complex Brazilian tax system, which inhibits foreign and domestic business investment. It remains to be seen whether Bolsonaro has the political acumen to tackle this Godzilla-sized issue. Should Bolsonaro find a way to reform the tax system, the pension system, and curb the most egregious villains of political bribery and kickbacks – a tall order – his efforts could indeed show strong economic results in time for the next election in 2022. Meanwhile, some prominent leaders have already lost faith in Bolsonaro's efforts. The veteran of political/economic affairs, Joaquim Levy, has parted company with the president after being appointed head of the government's powerful development bank, BNDES. Levy and Bolsonaro butted heads over an appointment Levy made of a former employee of Lula's. When neither man refused to back down, Levy resigned his position at BNDES. Many observers believe Bolsonaro's biggest misstep has been his short-term approach to fixing the economy by loosening the laws protecting the Amazon rainforest. He and Guedes believe that by opening up more of the Amazon to logging, mining, and farming, we will see immediate economic stimulation. On July 28, the lead article of The New York Times detailed the vastly increased deforestation in the Amazon taking place under Bolsonaro's leadership. Environmental experts argue that the economic benefits of increased logging and mining in the Amazon are microscopic compared to the long-term damage to the environment. After pressure from European leaders at the recent G-20 meeting to do more to protect the world's largest rainforest, Bolsonaro echoed a patriotic response demanding that no one has the right to an opinion about the Amazon except Brazilians. In retaliation to worldwide criticism, Bolsonaro threatened to follow Trump's example and pull out of the Paris climate accord; however, Bolsonaro was persuaded by cooler heads to retract his threat. To prove who was in control of Brazil's Amazon region, he appointed a federal police officer with strong ties to agribusiness as head of FUNAI, the country's indigenous agency. In a further insult to the world's environmental leaders, not to mention common sense, Paulo Guedes held a news conference on July 25 in Manaus, the largest city in the rainforest, where he declared that since the Amazon forest is known for being the "lungs" of the world, Brazil should charge other countries for all the oxygen the forest produces. Bolsonaro/Guedes also have promised to finish paving BR-319, a controversial highway that cuts through the Amazon forest, linking Manaus to the state of Rondônia and the rest of the country. Inaugurated in 1976, BR-319 was abandoned by federal governments in the 1980s and again in the 1990s as far too costly and risky. Environmentalists believe the highway's completion will seal a death knoll on many indigenous populations by vastly facilitating the growth of the logging and mining industries. Several dozen heavily armed miners dressed in military fatigues invaded a Wajãpi village recently in the state of Amapá near the border of French Guiana and fatally stabbed one of the community's leaders. While Brazil's environmental protection policies are desperately lacking these days, not all the news here was bad. On the opening day of the 2019 Pan America Games in Lima, Peru, Brazilian Luisa Baptista, swam, biked, and ran her way to the gold medal in the women's triathlon. The silver medal went to Vittoria Lopes, another Brazilian. B. Michael Rubin is an American writer living in Brazil.

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