Braving Brazil - Operating in the Latin America's Largest Economy in Uncertain Times

Brazil is a wild and wondrous country. The people are passionate, the celebrations spectacular and the history is rich. There’s a reason Brazil is Latin America’s largest economy. But investing and doing business in Brazil is fraught with rapidly changing, multi-faceted risks. Before 2014, there had been zero prosecutions under the country’s anti-bribery and corruption laws. Then the Lava Jato / Operation Car Wash investigation exploded on the scene and 280 people were convicted of having violated the Brazil Clean Companies Act. Amongst the people charged and 3 convicted in Lava Jato were former President Luiz Inacio Lula da Silva along with the presidents of Ecuador, Panama, Paraguay and Peru and senior executives of Brazil’s two largest state-owned companies, Petrobras and Odebrecht. It appeared that Brazil was well on its way to corruption reform. But corruption is insidious and political winds shift. Indeed, some of the recent developments in Brazil are nothing short of surreal. After several unsuccessful efforts to be allowed to run again for president despite his criminal conviction, Lula withdrew his candidacy and Jair Bolsonaro was elected president. Then in 2022, Lula was allowed to run again after the Supreme Court dismissed the 4 charges against him. Lula narrowly defeated Bolsonaro in a run off election in October 2022. Bolsonaro did the logical thing, he allegedly plotted to murder Lula. Former president Jair Bolsonaro has been charged with planning to stage a coup and poison the president. He was convicted at trial and sentenced to 27 years. And if you still think investing or expanding your operations into Brazil, you are made of tough stuff. But you may need some advice to navigate the chaotic risk environment that is Brazil.