How to Get Brazil (And Latin America) Completely Wrong
It’s been yet another rough week for Brazil’s international image, with an Olympic mascot shot dead in an absurd accident and another national political figure dragged into scandal. But the biggest blow of all came from Declan Ryan, co-founder of the Irish budget airline Ryanair, who told an Argentine newspaper that he was considering expansion … Read more
Brazil’s Big Bet
This piece was updated on June 22 In 1946, the last year casinos were legal in Brazil, the ritzy Copacabana Palace in Rio de Janeiro was pulling in nearly $100 million a year from roulette and other table games. A frequent gambler was Benjamin Vargas, brother to a former president, who was notorious for chasing … Read more
Puerto Rico’s Student Activists See Default as Only Option
Desperate for a lifeline from the U.S. Congress, university students in Puerto Rico are pushing local politicians to take an extreme step – default on their debt. With the island’s fiscal troubles going from bad to worse, student leaders say default on upcoming payments is the only way to force Congress to pass restructuring legislation … Read more
As Latin America’s Economies Falter, Young Workers Lose Out
This article was updated on May 4. Latin America and the Caribbean are on course for back-to-back years of recession for the first time in 35 years, but the pain isn’t being spread equally. With some of the highest jobless rates of any age group in the region, young Latin Americans have proven particularly vulnerable to … Read more
Brazil’s Economy, Explained in a Pair of Flip-Flops
Havaianas is to Brazil what Apple is to the United States. More than a pair of flip-flops, they are part of the country’s self-image, a product that embodies the idea of Brazil as a carefree country of surf, samba and soccer. So the distressed sale in November of Havaianas’ parent company, Alpargatas S.A., was symbolically … Read more
Moody’s: Lula Appointment Could Spell End of Fiscal Adjustment in Brazil
Brazil’s political crisis is moving at such intense speed that it’s hard for even dedicated analysts to keep up. AQ’s editor-in-chief spoke on Tuesday with Moody’s ratings agency’s chief analyst for Brazil, Samar Maziad, about how the changes in Brasilia are affecting the economy. At the time, there were rumors that former President Luiz Inácio … Read more
How Mauricio Macri Plans to Fill a $1 Billion Hole at Aerolíneas Argentinas
Last year was a good one for global airlines. Thanks to falling fuel prices and an increased demand for air travel, the industry earned an estimated $33 billion in 2015. Carriers around the globe earned near-record profits. Not so in Argentina, where according to official figures state-run Aerolíneas Argentinas operated at a loss of nearly … Read more
Puerto Rico Deserves Better from Washington
The United States consists of 50 states, the District of Columbia, and five U.S. territories — one of which is Puerto Rico. Individuals born in Puerto Rico are U.S. citizens, but island residents cannot vote for president or senators. The territory has a single delegate in the U.S. House of Representatives who can vote in … Read more
What an Economic Recovery in Brazil Might Look Like
Now might seem like an odd time to look for signs of hope in Brazil. Dilma Rousseff has an approval rating of just 10 percent, she faces possible impeachment proceedings, scandal has frozen activity at the country’s biggest companies, inflation runs around 10 percent and the economy is expected to shrink 3 percent this year. … Read more
Can digital sharing economy platforms pull Latin America’s informal sector into the mainstream? Yes
The struggle between old and new forms of economic development, and efforts to strike a balance between them, will be a defining feature of society and business in the future. The sharing economy is still a poorly understood concept.1 It has been defined as “an economic system in which assets or services are shared between … Read more
Can digital sharing economy platforms pull Latin America’s informal sector into the mainstream? No
A bloated informal sector has long been a nagging structural problem in Latin America and in the developing world more generally. However, over the past few decades, it has proliferated as a result of the withdrawal of the state from market and social regulation. In particular, it has grown as governments have undertaken structural adjustment … Read more
Mexico’s ‘soda tax’ leads families to cut back
Nearly a year after former Mayor Michael Bloomberg’s anti-soda efforts fell flat in New York City, makers of sugary beverages still have plenty to worry about. In March, the first so-called soda tax in the U.S. went into effect in Berkeley, California, earning the city $116,000 in the first month alone. Legislation to tax sweetened beverages is reportedly coursing its way through statehouses in … Read more
Brazil: Up for Sale
Brazil is up for sale, and bargain-hunters from Sam Zell to Stephen Schwarzman are looking for deals. If the country’s economy could be spread onto a monopoly board, distressed domestic utilities like Companhia Energética de Minas Gerais S.A. (Cemig) would be selling for a bargain, while infrastructure like airports and railroads would be begging for … Read more
Brazil’s Lower House Passes Amendment to Austerity Bill in Setback for Government
On Wednesday, Brazil’s Chamber of Deputies passed its second austerity bill in a week, just hours before approving an amendment that changed the bill’s direction and increased federal spending for retirees. If passed by the Senate, the amended bill faces a possible presidential veto and represents a roadblock to the government’s strategy for increasing revenues. … Read more
Unpopular Austerity Measures May Be Brazil’s Best Path to Growth
A proposed government austerity package may keep Brazil from a credit rating downgrade, but could cost President Dilma Rousseff some of her biggest supporters: the country’s labor unions. Lawmakers in Brazil’s lower house passed a proposed bill this week that would limit thousands of workers’ access to social security benefits. The MP 665 bill was … Read more
