Daily Archives: February 18, 2014

Brazil: I’ll do it tomorrow if that’s OK?

Business Daily on the BBC World Service today was focused on the possible decision by FIFA to cancel the World Cup games in Curitiba because the stadium is not ready. The BBC is being cautious and waiting for the actual announcement from FIFA, but ESPN has already started reporting that FIFA has taken this decision and Curitiba is officially out of the World Cup.

Of course this would be a disaster for Curitiba. It’s a fantastic city that is clean, safe, and has buses that people actually use. A complete contrast from the edginess of São Paulo or the favelas dotted all over Rio. It’s the last place that you might expect to fail when Brazil has also been building new stadiums in places like Manaus and Cuiabá.

But what I found irksome when listening to the BBC coverage was the vox pops they used when characterising Brazil. There was a university professor who talked about the culture in Brazil that everything can be done tomorrow. There was the miserable commuter who spends hours travelling to and from work each day – on a good day. There was the small business owner who said how terribly difficult it is to do business in Brazil.

The coverage wasn’t balanced or fair. I have complained a fair few times about the challenges of living in Brazil, notably things like the bureaucracy associated with buying an insurance policy or registering a car. Simple transactions that should really be easier, but on balance I actually like it here. It sounds irritating to hear the BBC doing a cultural hatchet job on how all Brazilians are lazy, feckless, and would rather not do anything today because there is always tomorrow.

I run a business in Brazil. If a contractor delivers anything late then I don’t pay them. If they let me down more than once I will never work with them again. If they don’t deliver a quality service then I negotiate a new price. I haven’t had very many problems at all with this idea that nothing ever gets delivered on time – I had far more trouble when I ran a business back in the UK.

Small businesses in Brazil benefit from a simple tax structure. You just pay tax on the revenue coming into your company. No need for complex offsets or depreciation, just pay a fixed percentage on your revenue. Imagine if Starbucks was doing that in the UK, rather than transferring profit to Switzerland therefore reducing the local profit to nothing and therefore paying little or no corporation tax.

And small business owners get paid on time in Brazil. When I send an invoice to a client I tell my bank that I have sent it and who it has gone to AND when they are going to pay. If the company doesn’t pay then my bank will chase the company – like my own debt collection service. Imagine if small companies in the UK could rely on their bank to help them this way? Why don’t they do it?

There is a very vibrant start-up culture in Brazil and loads of technological innovation taking place in the big corporates and the tiny micro-businesses. State governments are handing out cash to entrepreneurs all over the country without demanding equity in return because they are actively trying to stimulate the start-up culture and the benefits that one big success can bring to a region.

My own wife is a part of this scene. She is travelling all over Brazil meeting traditional artisans and joining them together into a collective called Gift Brazil, so they can harness the power of social media tools like Facebook to promote their traditional art and culture. Can you imagine the market a traditional artist in the middle of the Amazon might usually have for their work? Just the odd tourist wandering past perhaps… now they can be seen by the entire world.

I know that balance doesn’t make for a great story. It’s easier to get clicks on a story if you tell a miserable story, rather than try spreading the good news, but in the year of the FIFA World Cup Brazil is getting showered in bad news. Everything is late, the people don’t want it, it will all be a disaster…

Well there are some great interesting projects taking place in Brazil that are redefining how people work, people are demanding and starting to get more political transparency, and some of us are looking forward to the World Cup – even though I don’t have a single ticket for any of the matches!

Toucan eye

 

Photo by Doug Wheller licensed under Creative Commons

Advertisements