Brazil: Not-so-Happy New Year

By Matthew Taylor*

Brazil Basta

Photo Credit: Antonio Thomás Koenigkam Oliveira / Flickr / Creative Commons

A vicious combination of corruption scandal and economic malaise suggests a troubled new year awaits Brazil.  Economists estimate gross domestic product has contracted 3 percent this year and will decline a similar amount in 2016, while inflation and weak government finances hamper efforts to stimulate growth.  Two of three big rating agencies have cut Brazilian debt from investment grade to junk. Unemployment has risen from under 7 percent a year ago to nearly 10 percent, with forecasts of 12 percent on the horizon.  Efforts to reform fiscal policy are getting nowhere, and the champion of fiscal reform, Finance Minister Joaquim Levy, has just resigned.  The bonanza launched by the 2003-2010 presidency of Lula da Silva – seemingly setting Brazil on a unique path of state capitalist development – is long over.

The country’s interconnected scandals cast shadows on many of the leading players on the national stage, including President Dilma Rousseff.

  • Petrobras, the crown jewel of Brazil’s state capitalist model, is at the center of allegedly massive corruption schemes. Rousseff, who was chair of the Petrobras board at the time of the alleged wrongdoing, has claimed absolute ignorance.  But the charges implicate Brazil’s leading political and business elites, many of whom have been jailed in recent months.
  • A feud between Dilma and the president of the Chamber of Deputies, Eduardo Cunha, reached a new low this month after Cunha’s approval of impeachment proceedings against her. (His own ethics problems continue to fester.)  The charge against Dilma is not of personal corruption but rather that Rousseff flouted budget laws by using public banks to cover up unauthorized debt issuance and off-books spending.  Rousseff supporters have argued that the impeachment charges represent the worst of golpismo, or coup-mongering, and a constitutional overreach that threatens to undermine democracy.

For Brazil, 2016 will be dramatic and unpredictable – as the country weathers the most dangerous political crisis since the impeachment and resignation of President Fernando Collor in 1992.  Dilma’s opponents will have difficulty convincing two-thirds of the Chamber and Senate to oust her, but the crisis is already creating significant fissures in the democratic system.  The parties have been turned upside down.  Even if Dilma survives in office, she faces nearly impossible odds in restoring the credibility of her administration and party, the Partido dos Trabalhadores, or PT.  There are early indications that the PT will face a bloodletting in the 2016 municipal elections, and former President Lula, the party’s once-ironclad standard-bearer, has the highest rejection rate (55 percent) of any potential candidate in the 2018 presidential contest.  The PMDB, Dilma’s coalition partner, is threatening to break with the government, but is internally divided. The opposition PSDB is facing scandals, protests, and troubles of its own in the states it governs.  The newfound proactivity of prosecutors and judges is making democratic checks and balances work as never before – and is largely welcomed by Brazilians – but Brazil’s old party system may not be able to keep pace.  Rumblings for a rethinking of the political system will grow louder in the new year, as the crisis deepens.

December 21, 2015

*Matthew M. Taylor is associate professor at the School of International Service at American University.

Social Exclusion and Societal Violence: The Household Dimension

By Juan Pablo Pérez Sáinz*

A street in Pacuare, Costa Rica—one of the FLACSO project's research sites  Photo credit: d.kele | Foter | CC BY-NC-SA

A street in Pacuare, Costa Rica—one of the FLACSO project’s research sites
Photo credit: d.kele | Foter | CC BY-NC-SA

Ongoing research in Central America increasingly points to citizens’ exclusion from basic markets, especially the workforce that receives certain social guarantees, as the cause of societal violence in the region.  Their lack of access to the labor, capital, land and other markets, in which almost all income is generated, leads to an extreme disempowerment – a primary exclusion – that reverberates through citizens’ lives.  Analysts of Latin American societies often focus on poverty and income inequality as important elements in violence, but a study by FLACSO-Costa Rica and FLACSO-El Salvador indicates that social exclusion is the underlying cause of these problems and, therefore, is the more reliable indicator of a country’s vulnerability to societal violence.  The processes of social exclusion may be responsible for the epidemic of violence that plagues urban spaces across the isthmus and elsewhere in Latin America.

In Central America, labor markets are increasingly important drivers of primary exclusion.  These are societies riven by endemic unemployment and generalized job precariousness, and much of the population is relegated to the kinds of self-employment that offer no prospects of ever moving beyond satisfying the survival imperatives of households.  Numerous South American governments in recent years have helped neutralize citizens’ exclusion through carefully designed social programs, but when the state lacks the capacity or will to supply access to such “citizenship,” as has been the case in much of Central America, exclusion only deepens.  A least two basic narratives establish clear linkages between social exclusion and violence, especially among youth.

  • First, when the state abandons marginal urban territories, these fall under the control of youth gangs that establish themselves as new authorities and obtain a monopoly on the instruments of violence.
  • Second, precarious employment – the inability of citizens to generate incomes sufficient to satisfy minimal aspirations of consumption – leads to lifestyles in which the line between legal and illegal becomes murky.

FLACSO’s study of several urban communities in Costa Rica and El Salvador has identified a possible third link between social exclusion and violence – in the household.  The domestic sphere, typically glorified as the sole space of security amidst the external insecurity that these communities find in public spaces, can also become a source of exclusion-driven violence.  Male unemployment, especially that of heads of household, is expressed not only in violence among adults but also violence by adults against children.  That violence in turn is projected outward, toward other members of the community, as victims of violence within households become perpetrators of violence outside them.  The complex chain of different types of violence, beginning with the structural violence that society generates through social exclusion, passing through the household unit, and then rebounds outward toward the community.  If this is in fact what is occurring, it suggests that efforts to overcome primary exclusion are imperative to reduce all levels of violence.

*Juan Pablo Pérez Sáinz is a senior researcher for the Latin American Social Science Faculty in San José (FLACSO-Costa Rica) and lead researcher in this project supported by the IDRC.  For a description of the project please click here.

Belize: An Outlier in the Middle of the Mess

Belize - Boy carrying water. Photo credit: Blue Skyz Media / Foter.com / CC BY-NC-ND

Belize – Boy carrying water. Photo credit: Blue Skyz Media / Foter.com / CC BY-NC-ND

Though off the radar of most analysts, Belize appears to be the latest casualty of the drug trade and criminal violence.  It debuted on the Obama Administration’s annual blacklist of major drug-transit and -producing countries back in September 2011, alongside El Salvador, filling out the roster of Central American countries.  That U.S. government spotlight, however, has done little to halt the Mexican drug cartels’ expansion into Belize.  The U.S. State Department now estimates that about 10 metric tons of cocaine are smuggled each year along Belize’s Caribbean coast – partly the work of local contacts established by the Zetas and the Sinaloa cartel.

Like its neighbors’ security challenges, Belize’s problems are not limited to drug trafficking.  Urban gangs and the rivalries among them are the main driver of the escalating violence, which is rooted in the same causes as in neighboring countries – institutional weakness, rampant corruption, impunity, and unemployment.  The government-sponsored gang truce negotiated in 2011, which featured “salary” payments to members who ceased violent activities, collapsed last December when funds dried up.  (Click here for details documented by our colleagues at InSight Crime.)  Belizean authorities tallied a record number of homicides last year, edging out neighboring Guatemala for the sixth place slot in global per capita homicide rankings.  Porous borders make Belize attractive to transnational gangs, particularly El Salvador’s MS-13 and Barrio 18, both of which have established a significant presence in the capital city, Belmopan, and elsewhere.  About one-fifth of the country’s 325,000 people are Salvadoran citizens, making it difficult to track criminal elements.

The deteriorating conditions in Belize raise questions about the effectiveness of U.S. counternarcotics and “citizen security” programs in the region.  The patchwork of U.S. initiatives under the umbrella of the Central American Regional Security Initiative (CARSI) has not reversed regional trends even in tiny Belize.  While the country’s law enforcement agencies welcomed the heavy equipment, training, and technical assistance that make up the bulk of CARSI funding, the tactical gains have been obscured by a worsening strategic outlook.  The U.S. Government Accountability Office has voiced its concern that the State Department is confusing efforts with results.  Moreover, neither the Belizean nor U.S. government has mapped out a preventative strategy.  The most recent data show that less than half of the funds allocated to Belize from CARSI’s Economic Support Fund, used for programs to help at-risk youth, has been spent, and after handing out 1 million Belizean taxpayer dollars to gang members during the truce, for example, there is little to show for it.  In the run-up to President Obama’s summit with Central American presidents next week, Belizean Prime Minister Dean Barrow’s statement that “Obama hasn’t done anything for Belize” was subsequently qualified, but the fact remains that U.S. partnership with Belize, like with its neighbors, has not begun to work yet.

**An earlier version of this post inadvertently omitted the word “Belizean” before “taxpayer dollars” in the concluding paragraph, giving the false impression that State Department funds had been used to subsidize Belize’s gang truce.