Wednesday, December 8, 2010

Security in Brazil

Brazil has for a longtime been a city of poverty and crime. In the past two(ish) decades Brazil has been able to stabilize its economy. The benefits of that now are being put towards many social programs (Brazil is recognized for its Bolsa Familia program). Winning the Olympic bid made it that much more important for Brazil to make headway on fixing its social problems and increasing infrastructure. Despite leftist presidents, Brazil has undertaken conservative macroeconomic policies in hopes of attracting foreign investment, especially into the port area. With the recent discovery of offshore oil the future for Brazil looks only brighter. However, the areas known as favelas, especially those in Rio de Janeiro where the olympics will be held pose a big security problem. Drug trafficking gangs control the slums with violence, where most people survive on an informal economy and pirate their electricity, "living life outside the law." The city government is trying to reduce this violence so that the state can regulate this economy. They have only had some success as they still need to win over the faith of the poor.

3 comments:

Sean-Paul said...
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Sean-Paul said...

I wonder if there have been studies done on the net gains or losses that a country receives from hosting events like the Olympics or the World Cup. Oftentimes, a country receives glowing reviews - like South Africa did for the World Cup in 2010 - but I wonder if there has been a net positive gain to South Africa's economic growth and development as a result of hosting the event.

Tanvi Devidayal said...

One would assume that there is a positive gain since there will be massive amounts of investment in infrastructure and tourism will rise as well. However, there is a possibility of losses if costs are greater than profits.