1. AnindependentsupplementdistributedintheGuardianonbehalfofTheReportCompany,whotakessoleresponsibilityforitscontent.July22.07.2013
A cup full of promise
As football-mad Brazil readies itself to welcome the world
for the 2014 World Cup, the race is on to complete dozens of
private and public infrastructure projects. While the country
transforms its cities through massive urban regeneration
and the building of facilities to cope with the massive influx
of fans and athletes, can it also turn the event into an
opportunity to tackle some of its biggest challenges?
Brazil
p.04 Impact of the World Cup
How will the World Cup
change our view of Brazil?
p.07 Brazil – the
spiritual home
of football
p.20 Culture
in Rio:
beyond samba
p.24 Focus on
Brasilia
The
company
Report

2. 32 _ BRAZIL INTRO> An independent supplement produced by The Report Company
For a country that is trying to mastermind the greatest show in the history of the competition,
the definition of a successful 2014 World Cup campaign for Brazil will come in many forms
As a World Cup team, Brazil expects noth-
ing short of lifting the trophy on home turf at
the iconic Maracana stadium. As World Cup
host, demonstrating the country’s warmth and
unique South American magic to the world
has become the collective national respon-
sibility. But as a country, the legacy that the
tournament brings with it will far surpass the
expectations of anybody still under the impres-
sion that a World Cup is only about build-
ing handsome new stadiums. Driving vast
infrastructure projects, selling modern Brazil
to the world, exporting its culture, welcoming
the masses and, just as important as the chang-
es today, paving the way for continued growth
– these are the benefits that the country expects
to see.
Countrywide, the sense of expectation surged
following the inauguration of the first of the
new venues at the end of 2012, albeit tempered
with a feeling that the huge sums of money
being poured into the preparations could have
been better spent on improving public services.
In a testament to Brazil’s noisy, vibrant democ-
racy, the streets of Rio de Janeiro, Sao Paulo,
Brasilia, Belem, Belo Horizonte and Salvador
have seen major demonstrations as a result. But
while the most high-profile building work may
have been that done at the iconic Maracana sta-
dium, this is just one element of a frenzy of con-
struction and logistical projects now underway.
From high-speed rail links and the construc-
tion of thousands of kilometres of train tracks
and highways to the rebirth of entire neigh-
bourhoods, Brazil, as it did with football 100
years ago, has picked up the UK’s appetite for
public-private partnerships and run with it.
Rio de Janeiro has become the embodiment
of this bustling progress, with the ramshackle
port zone set to become a thrusting cultural
hub in the same way that London’s South Bank
did last century, whilst its famous coastline is
finally receiving the modern facilities it
deserves. But beyond the city, the whole state is
gearing up to maximise the opportunities that
the Cup is bringing, helping to sell a vision of
Rio that transcends stereotypes and broadens
appeal; an approach that will be just as crucial
for host cities like Belo Horizonte. Meanwhile,
the growth of Brasilia beyond its original,
intricate design has already started to reshape
it as a business and tourism destination rather
than merely an administrative centre. While the
new National Stadium will play a huge role, the
creation of a new digital hub and innovative
commercial and leisure spaces is also driving
this change.
On the pitch, changes are also afoot. Despite
having the world’s most successful national
team, the country’s domestic league is weighed
down by debt. As the sports minister Aldo
Rebelo points out, Brazil currently represents
just 2 percent of the global football-related
GDP: “We export the artists of football,” he
says, “and import the show.” However, this
inconsistency is now being addressed and a
new professionalism is sweeping through the
game. Today the sport is a new target for com-
panies looking for investment opportunities:
“Issues like improving the access to the Mineirao
(BeloHorizonte’sstadium),orthatCuiabaneed-
ed a monorail and that the underground needed
to be expanded in Fortaleza. All of these require-
ments were consolidated and their execution
assigned to a level of government,” adds Rebelo.
So it seems fitting that a month-long foot-
ball tournament has proven to be the catalyst
for a far-reaching transformation to a country
so obsessed by the game. At the end of a golden
decade for Brazil, being crowned champions
looks like the inevitable, perfect bridge to
another ten years of investment, growth
and development. <<<
A protest over increasing public transport
fares sparked a series of nationwide anti-
government demonstrations on a scale
not seen in Brazil for more than two
decades. What began as an objection
to being asked to pay more for already
inadequate public services, at a time
when public money is being very visibly
poured into preparing for major sporting
events, quickly morphed into something
far wider-reaching. After a violent initial
police response that was spread across
social media – despite being largely
ignored by the mainstream media –
deeper questions are now being asked of
the way the country is being run and of
those running it.
The timing of the protests has brought
attention to the displacement of families as
homes are demolished to make way for new
developments. The languishing health and
educationsystemshavealsolongbeensources
of frustration. Meanwhile, seemingly never-
endingcorruptiontrialscontinuetoplayout,
as the human cost of billion-dollar profits
being generated but not put back where
they are needed most triggers a rising
dissatisfaction that found its voice on
Facebook and quickly spilled onto the
streets.
The sense of purpose among Brazil’s post-
dictatorship generation has been compared
to the 2012 Arab Spring uprising and draws
obviousparallelswitheventsinTurkey,where
hundreds of thousands are displaying their
disdain at the system that governs them. The
huge expansion of the middle class in recent
years may have been built on government
policy, but that very same middle class is
now demanding more for the high taxes
it pays, and has erupted in an expression
of discontent. Democracy remains young
in Brazil, and whilst transparency and
infrastructure are improving, many feel that
progress isn’t coming fast enough.
For suggestions on a feature on your country
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For an expanded version of this feature:
www.guardian.co.uk/the-report/brazilworldcup
and www.the-report.net
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Illustrators: Belen Isasi, Alya Marck
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The Report Company takes sole responsibility for the
content of this feature. Our sponsors have no control
over the content of this supplement.
Brazilian society is united by a passion for the national game and those who play it | Photos: Rafael Ribeiro, Rafael Ribeiro / CBF
WRITER: DOUG GRAY
Brazil’s masses make themselves heard
Preparing for success
FUTEBOL # 1
Brazil is the country of football,
and football is the sport of
the people. Its top league, the
Brasileirão, might be the biggest
annual prize, but for the fans,
victory in a local derby comes
a very close second.

3. 54 _ BRAZIL > An independent supplement produced by The Report CompanyIMPACT OF THE WORLD CUP
Sergio Cabral
Governor of Rio de Janeiro
> Rio de Janeiro was once known for
its extremes – a vibrant party capital
but also a place of crime and violence.
Governor Sergio Cabral’s chief aim has
been to improve the quality of life and
work opportunities for its citizens, most
famously by bringing peace to the city’s
favelas. He now sees the World Cup as
an opportunity to put Rio firmly back on
the map, and points to the renovation
of the iconic Maracana stadium as
a key catalyst: “The Maracana and
Maracanazinho will become the largest
entertainment centre in Latin America
and surely one of the most important in
the world,” he says. He is also keen for
the world to get to know Rio’s spirit.
“There are few cities that allow their
population to make money and have
fun at the same time in the way that Rio
does. The Carioca way of life is unique, it
is a state of mind,” he says.
Antonio Anastasia
Governor of Minas Gerais
> Antonio Anastasia became governor
of Minas Gerais in 2010, and is working
to diversify the state’s economy away
from its traditional pillars of mining
and agriculture into new sectors such as
the pharmaceutical industry. Now, he
is working hard to make sure the state
puts on a good show for the World
Cup. “We have done our homework and
made a huge effort to make sure that the
World Cup would be exemplary here,”
he says, adding that the event has been
very well planned. “That model of good
governance has filtered through to the
work at the Mineirao stadium, to the
Bus Rapid Transit system, and everything
we have done in terms of preparation.”
Although Minas Gerais is not as well
known outside of Brazil as Sao Paulo
and Rio de Janeiro, he believes that “the
World Cup will be our chance to show off
Minas Gerais to the world.”
Tarso Genro
Governor of Rio Grande do Sul
> While Brazil’s southernmost state has
missed out on the nation’s recent
development, its dynamic governor
Tarso Genro, elected in 2011, is seeking
to instigate long-lasting changes. He
is working hard to make Rio Grande
do Sul more competitive by promoting
technological development, supporting
training opportunities and improving
infrastructure to drive up productivity
and attract investors. With just under a
year to go until the World Cup arrives on
his doorstep, Genro has a firm vision for
the future. “The next stage is to become
less isolated and integrate even more
with the development of the country,” he
says. “Some areas, such as the northeast,
will be receiving investments for essential
development projects. Building new
stadiums is less important here, for
example, because we already have
great venues thanks to Gremio’s own
investments in theirs and the renovations
of Internacional’s ground.”
Around the world, people
think of Brazil as the land of
sun, sea and carnival.
However, this huge country is
also a major economic power-
house, a hotbed of
innovation, a hub for the arts,
and much, much more. As
global attention focuses on
the nation, leaders at federal
and state level reveal what
they think the World Cup will
do for Brazil’s
image abroad.
WRITER: CHRIS MUGAN
How will the
World
Cup
change our view
of Brazil
Six major figures
explain how they
hope the event will
give people a fresh
perspective.
“We want
to leave the
Cariocas with
a better city.”
“This is a
great window
to show what
the state is
capable of.”
“The World
Cup is
really an
opportunity
to bring
even more
investment
into the state”
Sergio Cabral and former president Lula take a first look at the new Maracana | Photo: Ricardo StuckertAldo Rebelo and former Brazil star Ronaldo make an early stadium visit
Photo: Glauber Queiroz / ME
Mauricio Borges
President of Apex-Brasil
> Apex-Brasil, the Brazilian trade and
investment promotion agency, sees the
World Cup as a unique opportunity to
show off the country’s innovative side.
At every stadium, the organisation’s
representatives will invite investors,
buyers and the international media
to appreciate a facet of Brazilian life
about which they may be unaware,
Apex-Brasil’s president Mauricio
Borges explains. Examples of local
ingenuity include fuel cells that run
on ethanol and a shoe devised in Sao
Paulo that is 95 percent biodegradable.
“This is sustainability, technology,
entrepreneurship and creativity at
work, but people do not know this side
of Brazil,” he says.
“We also have
technology,
energy and
entrepreneurs.”
International business specialist Mauricio Borges, president of
Apex-Brasil | Photo: Divulgacao Apex-Brasil
Governor Antonio Anastasia discusses Belo Horizonte’s new stadium
Aldo Rebelo
Minister of Sport
> As a federal entity, Brazil has ensured
as many states as possible share in the
World Cup. Aldo Rebelo is especially
pleased Manaus is representing the
Amazonian region, which makes up
60 percent of the nation’s land mass.
“For Brazilians, a part of the country’s
greatness is represented by the sheer size
of the Amazon rainforest,” he explains.
While the number of host cities raises
logistical challenges – Manaus is three
hours from Brasilia by plane and Recife
is three hours from Sao Paulo – Rebelo
is sure Brazil can cope. “Three hours
isn’t exactly short, but it won’t exhaust
anyone,” he says, citing the 1992 Earth
Summit and the Rio+20 Conference as
previous successes.
“Brazil holds
important
events
successfully –
like Carnival.”
Marta Suplicy
Minister of Culture
> To help fulfil her role in ensuring visitors
to Brazil see beyond the stereotypes of
football and carnival, Marta Suplicy
has followed the example of the London
2012 Olympics that portrayed the UK as
a modern, cosmopolitan nation. “We
have a great theatre scene, a great film
industry, arts and crafts, dance and
music,” she says. “This is not only a
chance for foreign tourists to get to know
Brazil, but also for us to know more
about our own country.” Suplicy aims to
do this through showcasing music and
other attractions at the FIFA Fan Fests
held by host cities and smaller events
similar to London’s flash mobs.
“I am thinking
about how we
disseminate
our cultural
diversity.”
Marta Suplicy hopes to spread Brazil’s cultural diversity
Photo: Daniel Dereveck
Rio Grande do Sul governor Tarso Genro hopes to stimulate interest in the state
Photo: Camila Domingues

4. 7An independent supplement produced by The Report Company6 _ BRAZIL > BRAZIL WORLD CUP
Getting ready to welcome the world
Ricardo Trade
Chief Executive Officer of Brazil’s World
Cup Local Organising Committee (LOC)
Having helped organise the 2007 Pan-American
Games and win the 2016 Olympics for Rio, the former
handball player is the right man to ensure the country
is ready for 2014.
Brazil – the spiritual home of football
It is impossible to overstate the importance of
football to Brazil in terms of its identity and na-
tional pride. British players and officials may have
first ratified its rules, but Brazilian players developed
the flair to show you could entertain and express
yourself while striving to win.
And Brazil has consistently won – no other national
side has won the World Cup five times – while play-
ers from Pele through Ronaldo and now the current
hope Neymar are seen as heroes around the world.
Yet while hosting this competition, the country seeks
to wipe out one horrible memory – Uruguay “steal-
ing” the trophy in a final with Brazil as World Cup
host nation in 1950. “When we lost that game to
Uruguay there were almost 200,000 people sitting
in the stadium crying,” the CBF’s president Jose
Maria Marin says.
Football is so important because it helped unite
a disparate nation and give it a common identity,
something the minister of sports, Aldo Rebelo, notes,
especially when the national side won its first World
Cup in 1958. “When Pele was world champion, he
didn’t just help show Brazil to the world, he helped
Brazilians discover Brazil as well,” the politician from
Alagoas state says. “Where I come from, many people
became more aware of the country as a whole – not
just geographically, but culturally as well.”
For a nation that faces huge extremes of wealth and
poverty, football especially gives hope to the poor.
Top players show anyone can succeed, no matter
what their background. This is especially the case
since players began earning huge sums and becoming
celebrities, Marin explains. “Being an athlete is now
better understood as a valid career,” he says. “Neymar,
for example, is a brilliant kid, an excellent player, but
above all – and despite his fame and fortune – he
remains as humble as he was in the beginning.”
These stars of Brazilian football succeed by honing
the flair that ensures the national team remains a
firm favourite for fans around the world. <<<
Football: the UK’s
gift to Brazil
British expatriates brought
football to Brazil in the
late 19th century. Experts
believe a Scottish dye
worker, Thomas Donohue,
organised the first match
in 1894, while the first club
was formed by Englishman
Charles Miller, inspired by
Corinthians, a side from his
homeland. Another
Sao Paulo side took that
name, forming connections
that continue today.
“TheEnglish
inventedthe
game,butBrazil
welcomedit.”
Aldo Rebelo
Minister of Sports
FUTEBOL # 2
In the 25 matches between
England and Brazil since 1954,
England have only managed four
victories. Just one of those took
place in the Maracana, a 1984 2-0
win that featured a spectacular
goal by John Barnes, bringing
him worldwide fame.
Brazil first hosted the World Cup in 1950,
though that experience will count for little 64
years later. Nowadays, more teams participate,
many more fans spectate and, above all, the eyes
of the world watch more avidly. With the
stakes so much higher, ensuring everything
goes to plan smoothly and safely rests, after
FIFA, with the Brazilian Local Organising
Committee (LOC).
As with any high-profile project of this scope
and complexity, there have been delays and
complications, though the organisation’s chief
executive Ricardo Trade believes these will not
spoil the show. Apart from the sheer size of the
country, his chief challenge has been ensuring
government at federal, state and municipal
levels works together. “With the federal govern-
ment’s leadership we have managed to produce
a network of relationships and trust, thanks to
which the process is flowing naturally,” he says.
With so many host cities, transport between
them is a major issue. Brazil’s airport capacity is
being stretched to meet the demands of media
and fans, and systems are in place to accept the
private planes that will ferry the teams. Trade
is sure major refits of key facilities, such as the
US$200m doubling of capacity at Manaus,
are on schedule and will benefit the country
enormously. “Brazilians are travelling more;
they are making more money and seeing their
purchasing power go up,” he explains. “The
airports are indeed saturated, but they are not
being built or renovated for the World Cup; it
is longer term than that.”
The LOC readily accepted the government’s
demand that the World Cup should showcase
as many regions of Brazil as possible. Beyond
Manaus, the gateway to the Amazon, its fellow
host city, Cuiaba, is close to another important
ecological region – the Pantanal, known as the
world’s largest swamp. Brazil’s goal is to in-
crease the number of tourists from 2.9m to
10m by 2020. “These areas have direct flights
to Europe and the US and deserve greater expo-
sure,” Trade says. “Tourism is a bottleneck for
Brazil and as an entire country we receive fewer
foreign tourists than New York does as a city.”
Just as important is helping Brazilian football
to flourish. The Confederacao Brasileira de
Futebol (CBF), having seen the national side’s
shirt become a mascot for the country, wants
local clubs to compete on the world stage too,
says its president Jose Maria Marin. While
Brazil represents only two percent of global
football-related GDP, this could change with
the improved, more accessible stadiums that are
being built for the tournament. With just under
a year to go until the football festival arrives in
Brazil, a lot is riding on the country’s ability to
deliver on its promises and be ready in time. <<<
Despite some challenges,
organisers are ensuring the World
Cup will make Brazilians proud.
“Footballersareambassadorson
andoffthepitch–linksbetweenour
countries.”
AlanCharlton
BritishAmbassadortoBrazil
“[Sport]generatesbusinessopportu-
nities,butIthinkthemostimportant
dimensionisbringingBraziltothecentre
ofinterestofpublicopinionintheUK.”
Roberto Jaguaribe
Brazilian Ambassador to the UK
PERSPECTIVES
If the shirt fits – Brazil’s famous Amarelinha
Photo: Felipe Borges
Rivalries are put on hold as two fans share a moment of pre-match harmony at a June friendly game at Rio’s Maracana | Photo: Natalie Clarke
Jose Maria Marin and Brazil coach Felipao hope Neymar can help lead Brazil to 2014 glory | Photo: Rafael Ribeiro/CBF
As its players have shaped the beautiful game, football has helped
shape Brazil’s identity, yet the nation will be forever grateful to the UK
for inventing and exporting it worldwide.
WRITER: CHRIS MUGAN
WRITER: CHRIS MUGAN
Amarelinha
The iconic yellow shirt of the
selecao – the Brazil national side
– has long been associated with
beautiful football.
Five-time world champions, five
stars above the badge represent
the victories, whilst the return of
the classic amarelinha (canary) sees
it perched atop the phrase
‘Nascido para jogar futebol’ [born to
play football] on the new shirt.
Instantly recognisable as ever, the
design harks back to one worn in
1990, only this time each is hewn
from recycled plastic bottles –
thirteen per shirt – and the latest
shirt technology makes it the
lightest, coolest and fastest
drying ever.
Photo:RicardoStuckert

5. 98 _ BRAZIL > An independent supplement produced by The Report CompanyINVESTMENT
With the World Cup looming, the flagging
appeal of Brazil’s investment environment was
a driving factor behind President Dilma
Rousseff’s pursuit of two key pieces of legisla-
tion in 2012: the record lowering of interest
rates and a 20 percent blanket reduction in
power bills. A third, the ongoing strangulation
of industry with bureaucratic red tape, will
take longer to overcome, but the government’s
desire to address the much-maligned ‘Brazil
cost’ of doing business in the country has
opened the door to innovative developments,
piquing the interest of banks in the funding of
the vast infrastructure projects underway
across the length and breadth of the nation.
For those banks, adapting to the interest rate
drop by offering new credit products, lower
fees and greater efficiency has been a timely
exercise in rethinking how they are structured.
In the race to remain profitable, the large vol-
ume, long-term and low-risk projects that the
government is keen to partner on and make
as appealing as possible, whether through
slicing rates or introducing tax breaks, have
become increasingly attractive. For companies
like OAS Empreendimentos, which have spent
decades studying the patterns of investment
and construction and targeting their real es-
tate projects accordingly, the new climate has
already proven to be highly profitable.
The real estate arm of Bahian conglomerate
Grupo OAS was one of the first to capitalise
on the reprioritising of long-shelved infra-
structure projects. It has been involved in
Brazil’s housing market since the 1970s, but
the recent upsurge in demand has seen an
equally sharp increase in profits. Major urban
regeneration projects have been given a timely
push as a result of President Dilma’s nation-
wide World Cup renovations; none more obvi-
ously than the building of the Gremio Arena in
Porto Alegre which, though not among those
selected to host World Cup games, is another
fully FIFA-compliant, state of the art stadium,
the likes of which are helping to transform the
image of football in the country.
As well as its construction, the contract with
Gremio includes a thirty-year management
deal both for the stadium, and the surrounding
residential, business and leisure complex that
comprises the Liberdade project is the first of
its kind in Brazil. Built to replace the famous
club’s old, demolished stadium (for which OAS
also have development rights), it became clear
that a new 60,000-seater stadium could be used
as an anchor with which to stimulate further
development with the backing of the govern-
ment. As company CEO Carmine De Siervi
noted, “When you build something of that
size, the municipality and the state are obliged
to ensure the surrounding infrastructure is
in place.”
The accommodation expanded to suit the de-
mands of the growing middle-class market.
Three office towers were built instead of the
planned two, and the shopping mall blueprint
had to grow to accommodate the sudden surge
in interest in the once run-down and danger-
ous neighbourhood of Humaita.
De Servi is keen to point out that, although
the company has picked its projects carefully,
they have not been afraid to take risks. “It is
clear that there is no crisis and there is no bub-
ble”, he says. “There was a fast initial jump or
boom, but the market is still in the ascendancy
and there remains a huge demand. The sprint
has finished, but we are still running and bet-
ter able to calculate at what speed we should
be going.”
The same can be said of their Solace partner-
ship with Odebrecht, Rex Brasil and Cari-
oca Engenharia, in which they will construct
a 35-storey residential tower, the largest in the
city, as part of Rio’s Porto Maravilha urban
intervention. It forms the entry point of what
will likely be further investment from OAS Em-
preendimentos in the port zone as the region
rapidly continues to develop and take shape.
As De Servi says, the plans were “not a result
of the forthcoming sporting events, but it can-
not be denied that they have helped to speed
up the process.”
Far from neglecting the growing capital city
Brasilia, OAS Empreendimentos has pioneered
a new type of commercial centre, occupying a
space outside of the traditional ‘Plano Piloto’
centre which the city is rapidly outstripping,
and offering a new standard in urban develop-
ment, consisting of landscaped gardens around
which restaurants and a food court are based,
overlooked by a state-of-the-art business tower.
Visionaire is based on the premise that good
businesses attract more of the same. “You nev-
er see a petrol station or fast-food chain on its
own. This is an area of the city that had noth-
ing, but it does have the Metro. We always go
after the infrastructure.” <<<
WRITER: DOUG GRAY
Investing in the new-look Brazil
As the government works to lower the Brazil cost, companies like OAS
Empreendimentos are pioneering bold new developments, and banks are
seeking a share of the opportunities.
MarcioPercival
Vice-Presidentof
CaixaEconomicaFederal
“Wewishtomaintainand
increasetheimportantrole
thatCAIXAplaysinthegrowth
oftheBrazilianeconomy”
A key source of funds for the country’s huge
infrastructure projects, government-run
CAIXA is looking beyond traditional
methods to sustain growth.
What is the role of a government-run
bank like CAIXA today?
We offer customers the best rates and
lowest fees to meet the demands of
public policies like Minha Casa Minha
Vida [My House, My Life]. Plus, we are
the second-biggest lender in the country
in the financing of infrastructure projects.
This year we expect to make US$15
billion available.
How will other banks respond to CAIXA’s
lead?
They will respond aggressively to our
Melhor Credito [Better Credit] campaign,
but there are other ways to be competiti-
ve. The key will be to improve efficiency,
increase productivity and reduce costs.
How does a government bank raise
such funds?
Last year we raised US$1.5 billion in
overseas bonds. We were happy with
the result because even though we don’t
operate abroad, the name is well known,
and the end result is improving Brazilians’
quality of life.
Banco do Brasil was one of the first banks to res-
pond to the record low 7.25 percent interest rate
by providing cheaper car and home loans.
What was the effect of the lowering of interest
rates on the bank?
Some time ago, we predicted that Brazil would
have to bring interest rates more in line with
other countries, so we had prepared for that and
wanted to be associated with it. Historically, the
bank has a function to lead Brazil on the right
economic course.
How did the bank respond?
We had to increase volume and attract new custo-
mers, so it was about clearly communicating new
products throughout our 5,300 branches and our
120,000 employees.
How has it affected the market?
The excessive interest rates were attracting high-
risk customers. When they came down, more
conservative, credit-conscious consumers were
drawn in. Car loan interest rates were greatly
reduced and the market has doubled since then.
At the same time, repayment defaults have
dropped significantly.
Alexandre Abreu
Vice-President of
Banco do Brasil
Demand for the Liberdade project in Porto Alegre grew beyond the
initial estimates of OAS Empreendimentos. It originally planned to create
a new stadium and then use it as an anchor project around which to
build new infrastructure and add further value to the area. However, the
target market for the apartments strengthened, commercial real estate
enjoyed something of a boom and the shopping mall grew in size to
meet the demand for retail space. What was an unsafe, forgotten corner
of the city now has 2,000 new homes and the facilities to support them.
Industry voice
Carmine De Siervi
CEO of OAS Empreendimentos
“From the beginnings of the
infrastructure expansion,
new areas have opened up
for private investment, at-
tracting people and creating
new nuclei of business and
development.”
“OAS Empreendimentos is fully
engaged with the World Cup and
the subsequent contribution to
Brazil’s development and mak-
ing the most of the opportunities
these events bring with them.”
Carmine De Siervi
CEO of OAS Empreendimentos
FUTEBOL # 3
OAS Empreendimentos
used sport to break into new
markets in Brazil. The positive
association of sponsoring Bahia’s
two biggest teams for three years
helped establish their profile in
the state, whilst in Porto Alegre,
the building of Gremio’s new
stadium opened doors in
Rio Grande do Sul.
Transforming Porto Alegre with a new public space
Brasilia’s Visionaire is a
modern work and leisure
complex, the first all-inclusive
business centre in the capital
Photo: Rodrigo de Oliveira

6. 1110 _ BRAZIL > INTERVIEW
Sergio
Cabral
Since taking
office in 2007,
Sergio Cabral has
governed
throughout one of
the most important
eras in Rio de
Janeiro’s 450-year
history. From the
pacification of the
favelas to the
importing of UK-
inspired public-
private
partnerships, the
foundations are
being laid to ensure
that any investment
in Rio will be money
well spent.
WRITER: DOUG GRAY
What do you hope will be your greatest legacy
after 2014?
The bringing in of new management tools for the
way we govern the state to help ensure that the re-
cent improvements in public safety are sustainable.
By introducing a meritocracy, our police officers
are now rewarded for reaching specific targets, and
schools and teachers that are able to meet the goals
set by the ministry for education are also financially
rewarded. It is a system of praising and promoting
those people who take their training and profession
seriously. We also learned a lot about the benefits of
public-private partnerships from visiting London;
today we have several health units that are man-
aged by the private sector and which provide free
healthcare to the public.
What will be the biggest impact of the current
investments for Cariocas?
We wanted to leave Cariocas with a better city, with
greater access to high-capacity public transport, for
example. There will be important changes made in
infrastructure; in the way we treat sewage, in the
quality of the water supply, in the city’s roads, all
of which are making this an even more important
milestone in Rio’s history.
The World Cup will provide a great opportunity
for Brazil to promote its lesser-known states, but
what is Rio’s greatest selling point?
Rio has that very rare combination of a good work-
life environment and balance. There are few places on
earth that allow their population to make money and
have fun at the same time in the way that Rio does.
The Carioca way of life is unique; it is a state of mind.
The new stadium will be a great source of pride
for Rio. Has its magic survived the renovations?
The Maracana and Maracanazinho will become
the largest entertainment centre in Latin America
and surely one of the most important in the world.
Wembley, for example, only hosts around twelve or
fifteen football matches a year, but the Maracana
will host at least eighty. As a stadium, its occupancy
rate is one of the highest in the world and, being
operated by the private sector, it will have the agility
to shift from hosting a football game one week to a
major concert the next.
What do you think the future holds for the rela-
tionship that the Olympic handover propagated
between the UK and Brazil?
I have always tried to promote the exchange of ideas
and industry between Brazil and the UK. The UK is
a country that is constantly reinventing itself. It has
a rich classical and popular culture, with incredible
theatres, museums and the best pop music in the
world. London is 2,000 years old and constantly be-
ing upgraded and renovated and I have been visiting
it regularly ever since my first year as governor. <<<
How will the World Cup and
Olympics affect Rio?
Much of the city remains on
the periphery of everyone’s
attentions at times like this,
so it is important that these
areas are not forgotten and
that public sports projects
are created there too. I’m not
sure that the pride of hosting
the Olympics has properly
sunk in yet with many Brazi-
lians and we need to plant
that seed.
After the delays, was there
relief at the success of
the opening game against
England?
It was only natural that FIFA
would get anxious as the
deadline approached, but
there was never a shadow of
doubt that we would deliver
the stadium on time.
Will the spirit of the old
Maracana survive the
remodelling?
Not only will it survive, it
will also boost the pride of
everyone there, both in their
team and in their state for
having delivered a majestic
new venue.
Interview with
AndreLazaroni
SecretaryofSportforRiodeJaneiro
> MARACANA
Maracana
“Therewillalsobe
anintangiblelegacy
forRiointheformof
itsself-esteem”
WRITER: DOUG GRAY
Photo:BrunoItan
Photo:EricaRamalhoPhoto:MarceloSantos/SEEL
> RIO DE JANEIRO
The Maracana may have hosted the
biggest sporting upset in the country’s
history, but its place as Brazil’s first temple
of football, where both home and away fans
flock to soak up the unique atmosphere of
the thundering terraces, has never wavered.
A global reference for the sport that once
regularly attracted over 100,000 spectators,
even the Queen fell under its spell when she
watched Pele play there in 1968. Since then
it has diversified its role: Pope John Paul II
held mass twice at the stadium, while the
likes of Frank Sinatra and Madonna played
there to crowds of tens of thousands.
In the same way that English fans identi-
fied the national game with Wembley’s
controversiallydemolishedtowers,Maracana’s
importance to the country’s identity was
underlined in 1998 when the external struc-
ture was protected as a cultural heritage
landmark. While its interior may no longer
be able to boast record-breaking crowds, the
78,000 it now holds have vastly improved
facilities, from integrated trains to ergo-
nomic seats and new acoustics in which to
recreate half a century of sporting emotion
and write the stadium’s new, modern history.
The highest profile of the current wave
of Brazil’s public-private partnerships,
Consorcio Maracana SA won the bid
to manage the stadium for the next 35
years, led by construction giant Odebrecht
alongside Eike Batista’s IMX and the US
company AEG, the LA-based owners of the
Staples Centre, home to the Lakers basket-
ball team. Very much in the model of Madi-
son Square Garden or London’s O2 Arena,
the adjacent Maracanazinho will host
everything from tennis tournaments to
pop concerts, and total profits over the
35 years are expected to reach around
US$700 million. <<<
One of the world’s most famous stadiums, the Maracana has been reborn to host the 2014
World Cup final. The new multi-use complex will also host concerts, a museum and the opening
and closing ceremonies of the 2016 Olympic Games.
A pitch-perfect rehearsal
On the field, Brazil’s preparations for
the World Cup couldn’t have gone any more
smoothly. The eight-team Confederations Cup was
barely three minutes old when Neymar struck the first goal
against Japan, from which point the hosts never looked back.
Brushing aside Mexico, Italy and Uruguay en route to the final, the
humbling of reigning World and European Cup holders Spain was as
sweet a victory as the home fans could have dared to dream of.
That it played out in a packed, jubilant Maracana, where next year’s
grand finale will unfurl, made it the perfect dress rehearsal for what will
be an even more tense 90 minutes of football. Having outclassed what
many consider to be the greatest football side the game has ever seen, the
resurgence of optimism in the national side’s chances is palpable. Neymar
answered his critics in the best style possible, being named player of the
tournament after dazzling the opposition, whilst striker Fred, a revelation with
two goals in the final, also looks on course for a leading role in 2014.

7. 1312 _ BRAZIL > An independent supplement produced by The Report Company
Millions of dollars are being spent on
the creation of new transport routes and
the modernisation and integration of ex-
isting ones to gradually redraw the com-
plex web of Rio’s public transport. How-
ever,asrecenteventshaveshown,creating
inventive pricing strategies needs to be
top priority to ensure that these services
are available to those that depend upon
them the most.
Bilhete Unico: The single-fare integration of Rio’s public transport is helping to include
members of more remote communities in the city’s economic cycle
The term ‘bottleneck’ has rarely been more
aptly applied than in 21st-century Brazil, where
clogged city roads and rusting ports had min-
isters and engineers nervously poring over the
country’s logistical blueprints even before the
bid to host the World Cup was declared winner.
Successive governments had left the large-scale
infrastructure needs of a continent-sized coun-
try unaddressed, with worryingly few projects
making their way through the complex web of
bids, licenses and approval at all levels of gov-
ernment to successfully sai do papel (literally, get
off the paper) and become a reality.
A previous attempt at centralising transport
policy had dissolved in 1990, leaving a backlog
of essential works and a country ill-equipped
for the expansion that a thriving economy
demanded of it. At the same time, a study by
the economic research institute Ipea suggested
that as many as 35 million people in Brazil had
been priced out of using its public transport,
a defining example of the mobility issues that
were slowly grinding the country to a halt.
A centralising force
In August 2012, the government announced
the creation of a new agency to oversee a turna-
round, slicker in both name and nature than
the previous Executive Group for the Integra-
tion of Transport Policy (GEIPOT). The Logis-
tical Planning Company (EPL) was designed
to direct huge investments in the country’s
infrastructure started by the Program for Ac-
celerated Growth (PAC) and increased under
president Dilma Rousseff, luring the private
sector in to help the recovery of the roads and
railways, ports and public transport to the tune
of what the Ministry of Finance estimates as
US$121 billion over the next five years.
EPL president Bernardo Figueiredo puts the
total logistical deficit at US$250 billion, need-
ing to be overcome within five years to put
Brazil where its growth suggested it should
be. “When infrastructure is built before it is
needed, the conditions for economic growth
are created,” said Figueiredo, pointing to the
need for a hitherto unseen efficiency to over-
come the years of stagnation.
The EPL is preparing those projects for a wary
private sector to bid for the concession rights,
this year set to include ports, airports, 5,000
kilometres of highways and 10,000 kilometres
of railway. Reducing profit-deflating risks and
the potential for unseen hold-ups like envi-
ronmental licenses, will in turn help to reduce
the infamous ‘Brazil cost’ of doing business,
allowing long-shelved projects like the high-
speed rail link between Rio and Sao Paulo
(TRV) to be dusted off and pursued with private
sector efficiency and public sector support.
On track for the World Cup
With the added incentive of immovable dead-
lines like the World Cup and Olympics, state
chief of staff and governor Sergio Cabral’s
key advisor Regis Fichtner is coordinating the
public-private negotiations, not least those
concerning the Maracana. “The whole complex
had never fulfilled its potential,” says Fichtner,
“and spectators needed more than the old sta-
dium could offer. We are competing against
the comfort of people’s homes with huge, high-
definition screens, so safety, comfort and ac-
cess, like the new multi-modal, integrated train
station, is essential.”
Nobody in the private sector accepted the chal-
lenge with as much zeal as Brazilian construc-
tion and engineering giant Odebrecht. The
2012-2013 Global Competitiveness Report
by the World Economic Forum may have put
Brazil 52nd in the world overall and 107th in
terms of the quality of its infrastructure, but
with a 260 percent hike in government spend-
ing forecast for its ports and 200 percent in
railways, Odebrecht has stepped in and prov-
en highly successful where others feared to
tread. “The government cannot do it alone,”
says Benedicto Junior, president of Odebrecht
Infraestrutura. “We still need a lot of infra-
structure improvements and Brazil won’t grow
if the private sector doesn’t participate.”
The winning ticket
Affordability is crucial to the many users of
Brazil’s public transport systems, and Brazil-
ians aren’t afraid to make their voices heard
when they feel this basic need isn’t being met.
Demonstrations earlier this month in protest
against increases in bus fares in Sao Paulo
forced officials to reverse the planned price
hike. Meanwhile, beyond the high-profile fed-
eral and inter-state projects, logistical progress
on a municipal level has improved thanks to
initiatives like the Bilhete Unico, a one-ticket
system integrating Rio’s complex, previously
isolated modes of public transport under one,
cut-price card. Introduced by Fetranspor, the
umbrella federation for the city’s 192 public
transport companies who between them carry
6 million passengers every day, the initiative
reached further into the poorest communities
than most governmental policies are able. If
the previous lack of investments had brought
an over-reliance on the increasingly stretched
bus system, the Bilhete Unico has proven to be
the ideal tool to begin a citywide revolution in
urban transport with minimum upheaval.
“We are trying to
change the para-
digm – not to do
things just when
someone starts
complaining about
them but to do
them so that no one
complains in the
first place.”
With decades of neglect only now being reversed, Brazil’s
infrastructure development is finally back on the agenda, and
Rio is leading the revolution.
No expense is being spared to
deliver Line 4 of the Metro beyond
Ipanema to Leblon and Gavea and,
ultimately, into Barra da Tijuca. The
5.7km of tunnel is being dug out and
reinforced by the Tatuzao (tunnel
boring machine), a 120-metre long,
4-storey high machine purpose-built
to progress up to 18 metres a day
through the sand and granite below
the city. When the first Barra station,
Jardim Oceanico, opens in 2016,
Metro expects it to handle close to
100,000 passengers a day.
(source: Metro)
The umbrella organisation for 10 diffe-
rent unions and 192 public transport
companies, Fetranspor is responsi-
ble for keeping the city moving. The
single-fare Bilhete Unico initiative
has revolutionised integrated public
transport in the city whilst onboard
entertainment and better training of
staff and drivers improves customer
comfort and safety. Reducing daily
travel costs for those who need it
most meshes with the positive social
integration policy of the government
as a whole, and has been cited as a
positive example by the World Bank.
Fetranspor
FUTEBOL # 4
In his book ‘Futebol:
The Brazilian way of Life’, Alex
Bellos uncovered the fad for
Autoball, a bizarre spectacle that
combined the Brazilian love of
football and automobiles. With the
ball shunted goalward by rich,
young Cariocas in their cars, it
was a brief hit until the fuel
crisis of the 1970 put
paid to it.
Focus on…
Metro
NEXT PAGE
Lelis Teixeira
President of Fetranspor
BernardoFigueiredo
PresidentofEPL
“Thetransportsector’sabilityto
helppromotegreaterequalityhas
alwaysbeenunderdiscussion.”
PERSPECTIVE
TRANSPORT
Getting the country moving
WRITER: DOUG GRAY
Photo: Rogerio Santana Photos: Miriam Fichtner
Photos: Manuel Poppe
> RIO DE JANEIRO

8. 14 _ BRAZIL > 15An independent supplement produced by The Report CompanyTRANSPORT
Metro Cable
More than just a piece of transport
reform, the single ticket carries
the weight of social reform, too.
In bringing disparate, competing
private entities together under
one ticket, the government is di-
rectly helping the lowest-income
and most remote families with a
cheaper route to the jobs market,
halving the price of the average
daily commute from US$8 per day
to US$4.50. The affluent south of
the city continues to suck work-
ers in from the poorer surround-
ing suburbs, and the ceiling on
transport costs has brought an
expansion of realistic employment
opportunities to the periphery,
something that the city of Sao
Paulo, where a similar single-price
ticket only covers the bus system,
is now looking to emulate.
“The city’s entire transportation
system is operated by the private
sector, from the underground
to the trains, ferries and buses.
What we decided to do was cre-
ate a company that would handle
all the additional side activities
involved, in order to help every-
thing run more smoothly”, said
Lelis Teixeira, Fetranspor’s presi-
dent. That smooth running not
only includes improved terminals,
onboard entertainment and better
training for their employees, but
the social security numbers (CPF)
with which users register for their
ticket provides policy makers with
daily information about the exact
flow of commuters from one day
to the next.
With almost one billion pas-
sengers every year on the city’s
stretched public system, the in-
auguration of the Rapid Transit
bus system (BRT) was another
essential piece of the network’s
expansion. First developed in Cu-
ritiba, capital of Parana state, the
designated bus lanes work like an
overground metro, complete with
specific station stops that will
eventually integrate with other
bus and train networks. The 160
kilometres of planned BRT routes,
populated by the 160-passenger
capacity articulated buses, form
a key part of the biggest cycle of
investment in public transport in
the country for fifty years.
The power of integration
What that means for the World
Cup is increased mobility for
fans reaching the Maracana, be
it by bus, Metro or train, remov-
ing the possibility of a transport
meltdown. The much-maligned
SuperVia train system, for so long
dangerously overcrowded and un-
der-funded, has also been taken on
by Odebrecht Transport as they
look to rejuvenate the extensive
system of trains that comes into
the faded Central Station, itself on
the cusp of a major refurbishment
that will see the modern station
better integrated with the under-
ground metro but also fundamen-
tally altering the public perception
of the company. The experienced
Carlos Jose Cunha was brought in
to steer what looked on the out-
side to be a near-impossible trans-
formation for the much-maligned
company. “It was made clear to me
that without SuperVia operating
to its potential, the World Cup
and Olympic Games would not be
possible. We serve the Engenhao,
the Maracana, the Olympic site at
Deodoro, and if you look at any
map it is SuperVia that best serves
those major venues. The backbone
of any large city’s transportation
system has to be its trains.”
A key part of the transformation
lies in the trains themselves, with
90 new machines being brought
in from China, 20 from French
company Alstom to be built
in Rio and Sao Paulo, and 70
existing trains being modernised
with new, air-conditioned inte-
riors. Odebrecht are building a
factory in which to do the final
assembly to supplement the two
industrial workshops in Deodoro
where the time-consuming refits
are taking place.
With the bus and train com-
panies having to work within
the confines of an established
web of decades-old roads and
railway lines, Metro Rio and
Metrocable have been making
strides of an altogether more
pioneering kind. Cunha was also
responsible for a new cable
car that traverses the fave-
las of Complexo do Alemao,
with stations on the hills that
punctuate the suburbs and
integrate with the main arter-
ies of public transport and, by
extension, the rest of the city.
“What we did with the cable car is
exactly what we want to do with
the train system. It is always easier
to start something from scratch,
but the management model we
developed for the cable car would
work for any transport system”,
said Cunha. The uptake of the
system has been such that as well
as respected by the communities
it serves – much of which was
previously off-limits to outsiders
before the occupation by the UPP
favela pacification police – it has
become a major tourist attraction
alongside the likes of Corcovado
and Sugarloaf Mountain.
By contrast, under the most
affluent neighbourhood in the
city, Metro Rio is assembling the
biggest Tatuzao (tunnel bor-
ing machine) ever to be used in
Latin America to continue Line 4
from Ipanema to Leblon, Gavea
and out to Barra da Tijuca. Us-
ing the vast, state-of-the-art
German drill it is planned that by
2016, the fastest-growing part of
the city will finally have its own
underground station, in turn
alleviating one of the most
problematic and congest-
ed routes through Rio and
playing its own part in keep-
ing the city on the move. Once
integrated with the BRT,
Rio’s transport system will
truly be greater than the sum
of its parts. <<<
Benedicto Barbosa da Silva Junior
President of Odebrecht Infraestrutura
Q&A
“Webelievedinthe
growthofthecountry
morethanour
competitors”
Odebrecht Infraestrutura has been a leading
participant in Rio’s most high-profile infras-
tructure projects in recent years, from the Porto
Maravilha to the Maracana stadium. A series of
successful public-private partnerships (PPPs)
almost doubled the company’s revenues between
2009-2011, and continue to make Odebrecht a
potent force in the city’s transformation.
What is behind Odebrecht’s huge growth in
recent years?
We are an innovative company, and we were the
first on board with the then untapped market of
PPPs. The public sector needed the private sector,
and we believed in it and invested in it.
Odebrecht are currently behind so many major
projects, where is the competition?
Not every company is willing to take on the risks
that come with certain projects but, more impor-
tantly, our headquarters are in Rio de Janeiro
and the company has spent a lot of time here
waiting and studying the market. When Rio
started to flourish again, we were first to see
the opportunities.
Why have foreign companies tended to struggle in
Brazil? Is the sector closed to overseas business?
The tenders are open for foreign companies to
compete for them, but the Brazilian market is
different and companies can’t just come here and
think that everything will work at the first attempt.
Problems arise because they don’t study the
country’s practices beforehand, rather than
because they get a bad deal.
Taking its lead from Colombia’s
Medellin, the Complexo do Alemao
cable car slices through one of
the biggest areas of favela in Rio.
Initial scepticism about the project
dissipated once it became as
popular with the locals, for whom
the R$1 (US$0.50) trip cuts journey
times through the poorly managed
streets, as it did with tourists. Now
as much a part of their itineraries
as Sugarloaf or Corcovado, it is
treated as a source of pride by
residents, whilst silently adding
to the social integration of a
neglected part of the city.
The once-ailing train network
suffered years of under-funding but
as network integration improves,
passengers and investors seem
ready to embrace the train once
again. Major national and inter-
national brands are willing to be
associated with the stations and
a complete overhaul of Central
Station will make it an important
hub in the city’s transport system.
As the fastest way to reach the
Maracana stadium and Engenhao
Olympic stadium for much of the
city, SuperVia’s importance to the
city has never been greater.
Regis Fichtner
Secretary Chief of Staff of the State of Rio de Janeiro
Rio’s Central do Brasil station is set for a major overhaul to
integrate the SuperVia and Metro lines and a new cable car
The previously long-winded access to the train network from Complexo
do Alemao has been cut to a suburb-dissecting cable car journey
SuperVia
VIEWPOINT CarlosJoseCunha
PresidentofSuperVia
“WithoutSuperViaoperatingasit
should,theWorldCupandOlympics
wouldnotbepossible.”
TheMaracana’snew
multi-usestationispart
ofthechangesthatwill
makelifemuchbetter
forthespectators.
Photo: Rogerio Santana Photo: Dhani Accioly Borges
Photo: Renato Moura
> RIO DE JANEIRO

9. 17>> INVESTMENTRIO DE JANEIRO
“I think Brazil holds 50 percent of insur-
ance premiums, as well as a relevant percent-
age of reinsurance premiums in Latin Ameri-
ca,” claims Leonardo Paixao, president of the
state-run reinsurance company, IRB-Brasil Re.
“It is almost natural that Brazil becomes
a hub.”
The sheer number of players that have en-
tered the reinsurance market in Brazil since it
was opened up to competition shortly before
the global financial crisis supports Paixao’s
statement. One hundred and three licensed
reinsurers, including a large majority of inter-
national players, now participate in Brazil’s
US$63.3 billion insurance market, which in-
cludes US$2.8 billion of reinsurance premiums.
Lloyds was the first ‘admitted’ reinsurer to en-
ter the market, establishing its office in Rio
de Janeiro after almost 70 years of state mo-
nopoly by IRB-Brasil Re. The law allows dif-
ferent market access including local, admitted
and occasional, with admitted being allowed
to write most classes of reinsurance.
Although the number of companies that has
entered the market is impressive, many are yet
to see the results they had expected. However,
as the market consolidates, those in it for the
long term should be rewarded.
“The cycle of investments – for insurance and
reinsurance – is far from over,” adds Paixao.
“It will become something that unites con-
struction, infrastructure, airports, highways,
ports, and a very important portion of the
oil and gas industry. There is still a lot of
room for growth in sectors like deepwater oil
and gas.” <<<
Entrepreneurial spirit Reinsurance
A growing middle class means
many UK companies are entering
Brazil’s market to take advantage
of a population with an increasing
disposable income. In the four
years from 2007 to 2011, the UK
became the second largest investor
in Brazil, with most interest being
funnelled into business services,
natural resources and the ICT
sector.
Although Sao Paulo receives most
of this UK investment, at 26 per-
cent, Rio de Janeiro is attracting
increasing attention. While the
country grew at a rate of 0.6 per-
cent in 2012, Rio recorded growth
of 2.1 percent and, according to a
study by FIRJAN (an independent
industry association), the state
of Rio de Janeiro will receive over
US$100 billion worth of invest-
ment from 2012 to 2014.
“This is an auspicious moment for
Rio de Janeiro, with new business
opportunities arriving every day,”
says Jose Domingos Vargas, chair-
man of the development agency
AgeRio. “That brings the capac-
ity to plan, something that Brazil
had lost.”
The agency, although historically
providing loans for companies,
is now setting its sights on Rio’s
untapped resource of micro-en-
trepreneurs – often left out of the
formal economy – by offering mi-
crofinance in a bid to help increase
income and employment rates.
With interest rates reaching
record low levels, opportunities
are abundant, although more
reforms are still needed to fuel
further innovation and growth.
“Innovation is only able to surface
in an environment of competitive-
ness and openness to other coun-
tries,” says Julio Bueno, secretary
of economic development, energy,
industry, and services for the state
of Rio de Janeiro. “The reduction
of interest rates was the greatest
economic advance of the Dilma
administration so far, but the gov-
ernment also needs to implement
liberalising economic measures.”
While Brazil might have fallen out
of favour with risk-prone inves-
tors, those interested in a grow-
ing middle class, rising domestic
consumption and production will
still find an appealing long-term
investment choice. <<<
US$12
billion
in foreign direct
investment value
125%
increase in UK
investment projects
between 2010 and
2011
80%
of UK investors see
Brazil improving
as an investment
choice
AgeRio
Jose Domingos Vargas
Chairman of AgeRio
“Our mission is to
increase income and
employment rates.
Credit increases
production, which
increases the number
of jobs available. A
virtuous cycle is now
underway with small
business expanding
and hiring young,
local people. The
current scenario is
currently good for
Brazil, but for Rio it is
even better.”
UK-Brazil
trade in
numbers
VIEWPOINT PERSPECTIVEJulio Bueno
Secretary of Economic Development, Energy, Industry, and
Services for the State of Rio de Janeiro
“In order to increase private sector participation, investors
need long-term confidence and assurances, and greater
profit margins must be catered for.”
LeonardPaixao
PresidentofIRB-BrasilRe
“As the market consolidates and reaches its optimum size,
those in it for the long term will see results. What’s important is
that Brazil starts working as a regional hub for reinsurance.”
After getting its seemingly persistent
inflation problem under control and reducing
interest rates, the country is now seen as a
stable and long-term investment choice.
Insurance and reinsurance sectors are amongst those that are to benefit most from
forthcoming international events in Brazil.
> REINSURANCE
WRITER: JONATHAN ANDREWS
16 _ BRAZIL
WRITER: JONATHAN ANDREWS

10. 18 _ BRAZIL > 19An independent supplement produced by The Report CompanyTOURISM
4
2
3
WRITER: DOUG GRAY
From the Green Coast to the west and the
lakes region to the east, Rio’s coastline
stretches into even more beautiful forms
beyond the city limits.
Peppered with historically notable and wonderfully
preserved cities, tropical islands and chic resorts,
inland the state is not without its charms either.
High in the hills, Petropolis is a city built around
the emperor’s desire to escape the stifling heat,
and now the peaks of the Serra offer not just cool
respite but exceptional cuisine and artisanal
breweries. As the world’s eyes look to Brazil, the
Ministry of Tourism is determined to lure at least
some of that gaze to Rio’s lesser-known gems.
1. Paraty
The wonderfully preserved, heritage protected
colonial town of Paraty is home to numerous
festivals and boasts atmospheric churches,
galleries and restaurants.
2. Paraty Bay
The colourful boats, which take visitors on day
tours and to island restaurants, are almost
as attractive as the scenery off the coast of
Paraty.
6
9
3. Saquarema
Itauna beach in Saquarema is known
locally as the ‘Maracana of surfing’. Also
home to a seventeenth-century church and,
extraordinarily, a museum of rock, the clear
waters of nearby Cabo Frio are a diver’s
paradise.
4. Ilha Grande
Just three hours from metropolitan Rio, the
largest of Angra do Reis’ 365 islands is a
tropical paradise and home to one of Brazil’s
finest beaches, Lopes Mendes.
5. Buzios
Brigitte Bardot is immortalised in the former
fishing village she ‘discovered’ in the 1960s.
Now one of the most popular resorts in the
state, visitors can choose from over twenty
stunning beaches.
6. Vale do Café
The Fazenda Ponte Alta, built in 1820, is a
relic of the boom and bust of Brazil’s coffee
industry in the Vale do Paraiba, 120 kilometres
from Rio and now home to an annual coffee
festival.
7. Petropolis Cathedral
The burial place of Emperor Pedro II, the Sao
Pedro de Alcantara Cathedral is one of Brazil’s
most famous churches.
8. Museu Imperial, Petropolis
Emperor Pedro II’s magnificent, neoclassical
pink palace today houses the Museu Imperial,
a perfectly preserved glimpse at the life and
times of the former royal family.
9. Teresopolis
Teresopolis is home to some impressive
geography, such as the famous ‘Finger of God’
peak visible from Rio on a clear day, while the
Casa da Memoria Arthur Dalmasso museum
recounts the city’s history.
10. Araruama
The original exhibits of the neoclassical
Araruama Archaeological Museum are now
at the National Museum, but the pre-colonial
history that the immaculately-preserved
building tells is captivating.
Ronaldo Azaro | Secretary of State for Tourism
“Approximately 30 percent of overseas tourists enter
Brazil through Rio and we aim to make them stay for
longer. We need to use the current wave of popularity and
change to communicate everything the state has to offer.”
PERSPECTIVE
5
1
Photo: Diadorim Ideias Isabela Kassow
Photo: Nilton Cruz
Photo: Acervo TurisAngra Photo: Sergio Quissak Photo: Isabela Kassow - Diadorim
Photo:Joao Calandrini
Photo: Diadorim ideias Isabela Kassow
8
10
Photo:Joao Calandrini
Photo: Diadorim Ideias Cris Isodoro
Photo: Cris Isidoro
7
> RIO DE JANEIRO
State
treasures
1-2
7-8
4
6 9
10 5
3

11. 21An independent supplement produced by The Report Company20 _ BRAZIL > CULTURE
Like its famous coastline, Rio’s music has re-
mained a strong export even through the tough-
est economic times, but the greater creative in-
dustry lagged behind, relying on imported
international exhibitions and global names to
fill the gaps – at the expense of home grown tal-
ent. To reverse this trend, mayor Eduardo Paes
launched a US$85 million package earlier this
year to stimulate production and subsidise the
‘democratisation’ and wider dissemination of
the city’s culture.
Cariocas clearly have an appetite for contem-
porary art. According to The Art Newspaper’s
annual attendance survey, the Centro Cultural
Banco do Brasil’s 2011 exhibition ‘The Magi-
cal World of Escher’ was the most visited art
show anywhere in the world that year, attract-
ing almost 10,000 people a day. The state now
wants to see those kinds of numbers attending
shows by contemporary local artists, not just the
world’s leading lights.
The process of transforming the city into a hub
of creativity began with the loving restoration
of the Theatro Municipal back in 2007 under
the auspices of foundation president Carla Ca-
murati, readying the magnificent building for
its centenary celebrations two years later. Ear-
lier this year, the next major step was taken with
the inauguration of the Museu de Arte do Rio
(MAR), the first public museum to open in the
city for 70 years.
Camurati’s efforts were far from merely cos-
metic, however: “In 2007, the theatre was under-
used, bringing in around US$700,000 a year in
ticket sales,” she says. “In 2012 we brought in
over US$4 million, so it was more than just a
physical renovation; it was the whole manage-
ment structure.”
One of the city’s most iconic buildings, the
theatre’s internal space was converted into a
restoration studio. IPHAN, Brazil’s arts heritage
institute, was invited to accompany the entire
process. That determined attention to detail set
an early precedent for what has become a con-
certed pursuit of turning Rio into the biggest
cultural hub in the country. The huge urban
regeneration project around the port, led by the
opening of MAR and the Theatro Municipal’s
Rock in Rio 2013 pays homage to the UK Porto Maravilha
The sounds of British rock’n’roll will fill the air at the 2013
Rock in Rio festival, with a recreation of Camden High
Street. Punk, drinking songs and pubs will all feature on
the festival’s traditional ‘RockStreet’ in September.
The Porto Maravilha project is hoping to follow
London’s South Bank’s example of a previously
unfashionable region transformed into an important
entertainment hub. Mixing television and film studi-
os,artist’sworkshopsandmuseumswithcommercial
office space and apartments, the first museum, MAR,
opened in March.
“Youcannotunderestimate
Brazilians’capacitytoignite
theirdreams.”
RobertoMedina
Creator of Rock in Rio
“TheportrepresentshowCariocas
wanttheirfuturecitytobe.”
SergioSaLeitao
Secretary of Culture for the City of Rio de Janeiro
and CEO, RioFilme
The iconic ‘wave’ roof of the MAR was carved by experts – a team that sculpts huge figurines for the annual carnival
parade floats / Fundacao Roberto Marinho
One of the port’s examples of stunning colonial architecture was restored to house the Theatro Municipal’s arts
‘theme park’ | Photo: StudioMK27
Culture in Rio: beyond samba
SergioSaLeitao
Secretary of Culture for the
City of Rio de Janeiro and CEO,
RioFilme
How has RioFilme’s success sha-
ped the port development?
The land-use is going to be moder-
nised, but it will bear the diversity
that is the city’s hallmark. It will be
commercial, residential and cultu-
ral, with landmark cultural institu-
tions. It is incredibly exciting to see
this transformation under way after
years of economic stagnation.
Why rebuild the port, rather than
starting afresh elsewhere?
Rio grew between the sea and the
mountains and, given its lack of
space, you have to constantly look
for areas that can be revitalised
and that can have their vocation
rediscovered. Much of the port had
been abandoned and this now gi-
ves us a huge area to expand into,
thus extending the city but within
its existing boundaries.
CarlaCamurati
PresidentoftheTheatro
Municipal
How important were the renovations
of the Theatro Municipal to Rio?
The theatre is important both artis-
tically and as an institution, howe-
ver something deeper is happening
as part of the process. The Fabrica
de Espetaculos will turn into a pla-
ce for construction, visitation and,
above all, training.
How do partnerships like the one
you have with London’s Royal
Opera House help the cultural
make-up of the city?
People learn by seeing what others
do and we want excellence at our
school. It is time for Brazil to be
proud of its accomplishments and
dedicate ourselves to excellence in
education. Our partnership with the
Royal Opera House runs until 2016
and the last time they came we
set up an educational programme,
which will continue to expand.
new technical production facility Fabrica de Es-
petaculos [Show Factory], is set to witness the
kind of cultural reappropriation of a ‘lost’ region
that took place on London’s South Bank in the
middle of the last century.
“Brazil lacks a good school for the training of
technical personnel in the entertainment arts in
general,” adds Camurati. “What we are imple-
menting is a multidisciplinary centre at the port
to include training and production as well as
catering for tourists, showing the production
of shows as it is happening, on replica rehearsal
stages. It will be like a theme park for the clas-
sical arts.”
However, the rapid increase in ticket sales and
the popularity of certain exhibitions have yet to
make a significant dent in the city’s conscious-
ness as a whole. Research by Brazil’s national sta-
tistics institute, Ibope, shows that only 2 percent
of the country’s population currently go to the
theatre, and only 2.4 percent visit museums. This
has prompted a commitment from culture secre-
tary Sergio Sa Leitao to improve on those figures.
“We want to become the most important cul-
tural hub in the country, but we have to democ-
ratise access to it, expanding both production
and consumption,” he says. Following the MAR,
further museums are also planned, including the
Museum of Tomorrow and the City Museum.
“The key is to specifically promote Carioca cul-
ture, and tying that in around the three mas-
sive events we have coming up: the World Cup,
the city’s 450th anniversary and the Olympic
Games,” adds Sa Leitao. In the past, major pro-
duction companies like Dell’Arte concentrated
on bringing in global stars like Pavarotti while
rising Brazilian talent would be exported to fur-
ther their training. Today, Myrian Dauelsberg’s
team is bringing new platforms to Rio – like the
Bradesco theatre in Barra – and looking increas-
ingly to promote Brazilian talent overseas. At the
same time, important new partnerships are be-
ing fostered: the UK’s Royal Opera House and
Theatro Municipal are developing strong ties,
while President Dilma has signed a cooperation
agreement with London’s Science Museum.
Continuing the trend towards Rio’s own South
Bank will be the creation of RioFilme’s new film
While Rio’s African heritage bestowed upon the city its
unmistakeable swing and soundtracks in the city’s annual carnival,
today, culture of a different kind is reshaping the city’s landscape.
WRITER: DOUG GRAY
Photo: Divulgacao
The Museum of Tomorrow, Rio de Janeiro
> RIO DE JANEIRO

12. 2322 _ BRAZIL > CULTURE
and television studio centre at the port. Ex-
panding beyond their original remit as the
state’s film distribution company, the provi-
sion of reimbursable and non-reimbursable
loans to the film industry has proven so suc-
cessful that the model is to be used to fund
everything from live entertainment (such as
festivals and theatre), technology (including
apps and game development) and fashion
and design, which has already begun to grab
international attention with the Port’s Fash-
ion Rio event showcasing the best designers
in the city.
Rio’s new-look coastline
Not to be left behind by the port region’s
headline-grabbing refit, the city’s iconic
beaches are getting some much-needed at-
tention with the work of Orla Rio, the com-
pany behind the modernisation of 45 kilome-
tres of beach facilities. With the 20-year-old
wooden kiosks offering nothing in the way of
bathrooms or storage, the basic services were
hardly in keeping with the city’s golden sands.
It took Joao Barreto, a former hotdog seller
from Bahia, to conjure up the modern design
currently being rolled out along Copacabana,
where the glass huts and decked seating areas
at street level are equipped with kitchens and
public bathrooms below.
“Rio’s beaches are like the city’s very own liv-
ing room,” says Barreto, who is determined
to give Rio what he refers to as the ‘gift’ of a
modernised beachfront. “Back in 2000, we ran
a survey that revealed nobody really intended
to spend any time at the kiosks, so it was our
mission to change that trend, to turn them
into entertainment and gastronomic hubs.
There is nowhere like the beach to have lunch
or dinner, but until now there wasn’t the in-
frastructure to attract the best brands.”
Those brands don’t just include global food
and drink names like Coca-Cola, but more
practical tenants like the city’s tourist guide
Riotur and Banco do Brasil. “We have to think
about the Cariocas, who understandably have
great pride in their city, but we also have to
consider the tourists. Having Banco do Bras-
il’s kiosk there, for example, where you can ex-
change over fifty currencies and use any credit
card, is very important,” continues Barreto.
What the kiosks represent is more than some-
where nice to eat and drink; it is about re-
claiming the city’s spaces and creating a mod-
ern city. Beyond theatre, art and music, there
is, after all, another essential Carioca export of
which Rio should be proud: beach culture. <<<
Orla Rio – The transformation of Rio’s kiosks provides
essential modern facilities to the beaches
Dell’Arte – Multiplan’s Village Mall’s new theatre is part
of Dell’Arte’s commitment to Carioca culture
Theatro Municipal – The crown jewel in Rio’s cultural
circuit and a reference for the country
Photo: Vania Laranjeira
What was the initial reaction to the new kiosks?
To begin with, everybody was used to the infor-
mality, so it was difficult to change that mindset
and show the operators the benefits of a more
formal operation.
Do you think that the early sceptics are now
more convinced by the project?
From a social perspective, you have to remember
that where previously only one or two people
could work, the new kiosks require at least twel-
ve people, all in formal employment. The value
of a kiosk alone has gone from US$25,000 to
around US$500,000, so those operators who at
first preferred the informality soon realised the
benefits. Times and standards have changed,
and both the public and the law have become
more demanding.
Where is the next phase of the project taking
place?
We hope to have Ipanema, Arpoador and Leblon
finished in 2014, then Sao Conrado and Barra,
but it is about adding value to the beach. We
have introduced Wi-Fi and set up a partnership
with the Rede Bandeirantes television company
to provide exclusive content and show football
games, which will be great for the World Cup. We
have a programme dedicated to better beach
access for the disabled, too.
Joao Barreto da Costa and
Joao Marcello Barreto
President and
Vice-President of Orla Rio
Long after the party dies down, the World
Cup’s impact on Brazil’s domestic football will
still be felt across the country, while the Ma-
racana will become even more of a must-see
attraction following the global spectacle of the
final.
Traditionally, Brazil’s clubs have oscillated
from soap opera to world-conquering prow-
ess, but while the national side now com-
mands millions of dollars per match, the
domestic game remains riddled with debt.
What’s more, it has never been packaged as an
attractive commodity to sell overseas, leaving
clubs with a financial hole that has tradition-
ally been filled with the sale of their best as-
sets: young, promising future stars.
Missed opportunities may have cost the clubs
dearly, but the tide is changing. Corinthians
recently took 30,000 fans to Tokyo to see them
win the FIFA Club World Cup, while a new
deal with Adidas will help the country’s big-
gest club, Flamengo, increase their exposure
overseas. For Eduardo Bandeira de Mello,
chairman of Flamengo, the coming years are
crucial. “Brazilian football has evolved on the
pitch, but off it, it is stuck in the 1950s,” he
says.
With international stars like Clarence Seedorf
joining returning legends like Ronaldo and
Ronaldinho to play in Brazil, and as clubs
become more professional, the potential to be-
come a market for Europe emerges. The next
12 months will be the perfect opportunity for
Brazilian football to sell itself to the rest of
the world. <<<
VIEWPOINT
“Professional-
ismistheonly
solution.Itis
impossibleto
thinkofmanag-
ingamulti-million
dollarentityany
otherway.”
MarcusMotta
Partner at
Bichara e
Motta Advogados
Premier skills
In July 2012, the British Coun-
cil and the Premier League’s
social development program-
me Premier Skills welcomed
England coach Roy Hodgson
to Morro das Prazeres, a poor
hillside community which
boasts an immaculate, flood-
lit astro-turf pitch overlooked
by Christ the Redeemer. Here,
football is used as a tool
to teach hundreds of local
children values like teamwork
and responsibility, with ten
selected to take part in a 2012
trip to London to visit Totten-
ham Hotspur FC.
Maracana madness
Step off the plane in Brazil and
be prepared for a lengthy diatribe
from the first local you meet about
which team you should follow and
why. Generations of families wear
the same colours, and a fierce, yet
friendly, local rivalry is alive and
kicking in every major city.
Brazil’s national sport must adapt to the
demands of the modern game
www.rio.rj.gov.br/web/smc
RIO HAS FESTIVALS
FOR EVERYBODY.
Rio de Janeiro is the main place in Latin America for cultural events.
From visual to performing arts, from film to music, we have many
festivals all over the year. Most of them are supported by
Rio’s City Hall. Pick one and come celebrate with us.
Festival Verão do Rio (February) Rio Music Conference (February) Carnival
(February/March) CEP 20.000 (February/December) Rio Content Market
(March) It’s All True - International Doc Film Festival (April) Festival
Internacional de Circo (May) Festa Literária de Santa Teresa (May) Festival
Carioca de Arte Pública (June/August) PhotoRio (June/August) Festival
de Teatro da Língua Portuguesa (August) Anima Mundi - International
Animation Festival of Brasil (August) Brazilian Kids Film Festival (August/
September) International Book Biennial (August/September) ArtRio
(September) Rock in Rio (September) Festival Internacional Intercâmbio
de Linguagens (September) Rio de Janeiro International Film Festival
(September/October) Festival Multiplicidade (October) Tempo Festival
das Artes (October) Primavera dos Livros (October) Festival Panorama
de Dança (October/November) Festival Cel.U.Cine (November) Rio de
Janeiro International Short Film Festival (November) Festival Mix Brasil
(November) Festival Villa-Lobos (November)
A modern approach to
the beautiful game
> FOOTBALL IN RIO
Wearing their colours on their sleeves – Rio’s fans are among the most passionate in the world.
Photos: Clockwise: Alexandre Vidal - Fla Imagem; Nelson Perez – Fluminense; Marcelo Sadio – Vasco; Botafogo
de Futebol e Regatas
WRITER: DOUG GRAY
Photo:LuizGuilhermeFernandes
> RIO DE JANEIRO

13. 24 _ BRAZIL > 25An independent supplement produced by The Report CompanyBRASILIA
Leaders to watch
WRITER: CHRIS MUGAN
More than simply its legislative
centre, Brazil’s purpose-built
capital also thrives as an
economic hub. With a state
government keen to support local
and international businesses,
supported by an education sector
maintaining links with industry,
the city at its nation’s centre is a
natural base for expanding
companies. Brasilia’s modern
architecture reflects a confidence
in the future that its people are
reaching for with both hands.
Focus on Brasilia
Antonio Rocha da Silva | President of Fibra
With the arrival of the World Cup, what opportuni-
ties are there for Brasilia?
We firmly believe the World Cup will benefit our
companies as well as promote us to foreign inves-
tors. Brasilia has the highest per capita income in
Brazil and, being in the middle of the country, it is
perfectly located, logistically speaking. We have
excellent universities, skilled workers and perfect
conditions for greater international contact between
embassies, the public sector and businesses.
Antonio Carlos Lins | President of Terracap
How do you see Brasilia prospering in the future?
The Federal District has limited land and we
have few mineral resources, so our wealth lies
in the knowledge base we have created. Brasilia
has the greatest concentration in Brazil of peo-
ple with master’s degrees and doctorates. As
such, we have devised the creation of a digital
capital technology centre, dedicated to IT, to be
built in one of the most desirable and affluent
areas of the city, with 1m square metres available
for expansion.
Fernando Queiroz | President of Grupo Via
How does the National Stadium mark the begin-
ning of a new era for the city?
Because it is not just a stadium. This is a purpo-
se-built arena that will complement the National
Museum as the pinnacle of a new cultural heritage
for the city.
What will the knock-on effect be for the surroun-
ding area?
The structure of football clubs and the kind of
people that attend stadiums will change. People
go with their families at 10 o’ clock in the morning
before a match and have lunch there.
Capital cities built from scratch
do not always succeed in the way
their creators imagine. Many na-
tions have followed this route to
signify progress, especially from
colonial rule to independence,
though moving legislative func-
tions to a new area can separate
them from economic or financial
centres, as with Canberra in Aus-
tralia or Kazakhstan’s capital
Astana.
That is far from the case with
Brasilia, a capital that has thrived
since it took the mantle from
Rio de Janeiro in 1960. It is best
known for the visionary modern-
ist architecture of Oscar Niemeyer
(see box right), who ensured Bra-
zil’s fourth largest city became the
only conurbation constructed in
the 20th century to be declared a
World Heritage site by UNESCO.
It is the modernist architecture
of Brazil’s youthful capital that
makes the city such an iconic sym-
bol of the southern-hemisphere
nation’s dynamism.
Niemeyer designed Brasilia’s most
distinctive structures, among
them the Metropolitan Cathe-
dral and the Juscelino Kubitschek
Bridge. A more recent addition
has been one of his final pro-
jects: the city’s new TV mast, the
180-metre Torre Digital, which
opened last year to bring digital
channels to Brasilia’s residents.
The distinctive tower, nicknamed
the Flor Do Cerrado after a local
flower, also houses two glazed ob-
servation decks, one to contain a
restaurant with panoramic views
and the other an art gallery. All
these structures have their place in
a plan based around a network of
wide avenues that link a network
of superblocks.
Brasilia’s status as a world leader
in sustainable urban planning has
been cemented by the opening of
its venue to host World Cup 2014
fixtures. The 70,000-seat National
Stadium replaces the Mane Gar-
rincha Stadium, former home
of one of Brasilia’s two football
teams, Sociedade Esportiva do
Gama. Brasilia itself has hosted
many international matches and
can now lay claim to the second
largest venue in the World Cup fi-
nals, but given its location’s archi-
tectural reputation, the new build
has to be imposing in design as
well as size. The National Stadium
features a metal roof and stands
with a lowered pitch to allow un-
obstructed views from every seat.
Moreover, it has been designed
with the aim of becoming the first
stadium in the world to be award-
ed Platinum LEED certification,
the highest sustainability rating.
The National Stadium has been
Brasilia’s iconic skyline,
a dramatic statement of
confidence in its future,
came from the vision of
one man – the renowned
architect Oscar Niemeyer,
who died last December
aged 104. He worked with
modernist architect Le
Corbusier on the UN buil-
ding in New York, though
the Brazilian designer’s
fame rests on his
grandest project, creating
a capital city.
When he began his
career in the thirties,
Brazilian architects were
still copying Old World
neoclassical architecture
to design ornate palaces,
but as a student of Le
Corbusier, Niemeyer
developed a unique style
defined by stark concrete
and sweeping curves. He
once said his buildings’
stylised swoops were
inspired by the curves of
Brazilian women.
“When you have a large
space to conquer, the
curve is the natural
solution,” he said.
“I once wrote a poem
about the curve. The
curve I find in the moun-
tains of my country, in the
sinuousness of its rivers,
in the waves of the ocean
and on the body of the
beloved woman.”
An avowed communist,
Niemeyer left Brazil du-
ring the rule of its military
junta to work in France,
but returned in the
eighties to work right
up until the time he
passed away.
“Whenyou
havea
largespace
toconquer,
thecurveis
thenatural
solution.”
Oscar Niemeyer
The National Stadium, with a capacity
of over 70,000, is the second biggest
in Brazil.
Photos: Bruno Pinheiro
Photo: Castro Mello Arquitetos Ltda
Photo: Grupo Via
Oscar
Niemeyer
Photo: Daniel Santos
Photo: Nilson Carvalho

14. 2726 _ BRAZIL >
built as a carbon-neutral project, with emphasis on recycling and
access via public transport, an initiative driven by the regional government.
Fernando Queiroz, president of one of stadium’s construction firms, Via
Engenharia, part of Grupo Via, explains, “The governor was determined
to build a sustainable stadium and Grupo Via is a pioneer in this type of
project in Brasilia.” Another green project that his firm has worked on
has been the government’s new Administrative Centre. Grupo Via also
worked with Niemeyer on the city’s Supreme Electoral Court and the
National Museum close to the iconic cathedral. With multi-venue usage,
the stadium should pay its way, Queiroz adds, thanks to a design that
allows for a capacity of 30,000 below its VIP boxes, making the venue
suitable for concerts and large sports events. “The project has been de-
veloped in such a way that you can divide it in two. I went to Madonna at
the Maracana and the view was not good. This is a purpose-built arena,
so you are practically right there inside the show.”
Ensuring Brasilia develops a successful base for businesses to grow
comes under the remit of the Federation of Industries of the Federal
District (Fibra), which for 40 years has promoted growth through in-
ternationalisation and workers’ training programmes. Its president An-
tonio Rocha da Silva’s mission is to use the World Cup as a platform to
put the city in the spotlight. One key project to attract multinational
firms and investment is a recently opened technology centre, the Cidade
Digital [Digital City] anchored by new data centres for two key financial
institutions, Banco do Brasil and Caixa Economica Federal. These arose
from public-private partnerships that have seen $500 million invested in
the region, through which the city also expects to achieve the founding
of a new university.
Initiatives such as this help Brasilia grow beyond its existing econom-
ic base, as Antonio Rocha points out. “Many people are unaware of
Brasilia’s industry, but the city encompasses the full process chain,” he
says. Large companies such as Ambev and Sadia represent close to 10
percent of the Federal District’s GDP, yet “There is room left to grow,”
he adds. To that end, he has travelled to places such as Singapore and
Dubai to promote Brasilia as a place to do business.
“I got the impression that people see Brasilia as a political city rather
than a productive one and overcoming that mindset is a great chal-
lenge,” he admits. “The Federal District may not be big, but certain
industries – pharmaceutical, biotechnology and hi-tech industries, to
name just three – are a perfect fit.”
Responsibility for managing development in Brasilia lies with Terracap,
the state-owned body responsible for 75 percent of land in the Federal
District. In 2011, a change in the law allowed Terracap to pursue private-
sector partnerships to maximise its resources, including Digital City.
To achieve this, the organisation has worked to overcome unease about
government intervention in the economy, its president Antonio Car-
los Lins explains. The organisation has already been in discussion with
some major names, among them Microsoft, Oracle, Cisco and IBM, that
have shown interest in creating a presence in Brasilia.
The ultimate aim is for some of these companies to set up partnerships
with Terracap. “The information and communication technology in-
dustry invests in brains, they don’t buy real estate,” Lins says. “So what
they need is legal certainty and to know that they are not going to be
thrown out after a few years. They will become clients hosted in our
space.” Terracap will also allow clients to take shorter leases, if that is a
better fit with their needs, he adds. “Malls, for instance, produce stable
income. You don’t sell them, but you find a partner to invest, build a
mall and let out the stores.”
First, though, Brasilia should use the World Cup to showcase its entre-
preneurial strengths to other countries, Fibra’s Antonio Rocha suggests.
That way, the city can create interest from international investors in the
region and establish partnerships with global businesses. “For us, the
greatest legacy would be to show this productive side of Brasilia,” he
says, “the ‘other’ Brasilia and all its opportunities, about which people
are still largely unaware.” <<<
Education
High-quality learning is
an important driver of
economic growth, especially
in Brazil’s capital where
the Instituto de Educacao
Superior de Brasilia (IESB)
gives equal importance to
the theoretical and practical
sides of education. Much
of this derives from the
philosophy of its founder,
Professor Eda C B Machado
de Souza, who draws her
beliefs from a varied CV
that began as principal of
an elementary school aged
just 17.
What differentiates IESB from
other learning institutions?
We believe theory and prac-
tice need to go hand in hand
and that teachers should
provide practical examples
whenever they can. Our future
engineers spend 45 percent
of their time right here in the
laboratory.
How important is innovation
in the classroom?
We use Blackboard, an
online platform that enables
students to study wherever
they are; once, a teacher was
called away to Rome yet admi-
nistered a test from there.
Spotlight on IESB
EdaCBMachadodeSouza
RectorofIESB(InstitutodeEducacaoSuperiordeBrasilia)
Perspectives
Gold made Minas Gerais (General Mines, in English) one of
Portugal’s most lucrative colonies. Vital to Brazil’s development,
half the country’s historical heritage is found there, though
the state’s importance today still relies on natural resources. It
produces much of Brazil’s iron ore and a quarter of the world’s
coffee beans. In GDP terms, Minas Gerais is the third most
powerful economy in Brazil, on a par with Israel, Chile and the
Czech Republic.
Its capital Belo Horizonte is home to two football clubs that are
keen rivals, Atletico Mineiro and Cruzeiro, even though they
share one of Brazil’s most historic venues, Estadio Mineirao. The
majestic stadium has undergone a complete overhaul before it
hosts six World Cup matches, including one semi-final. Mod-
ernisation includes lowering the pitch and improving stadium
accessibility, with sustainability at the core of all improvements.
The 62,500-capacity venue now has the means to capture and
store 6 million litres of rainwater for reuse.
With a 25-year contract, the company charged with refurbishing
and running the stadium, Minas Arena, plans to integrate the
building further into the community as a state-of-the-art, multi-
use venue. As well has having visitors use its restaurant, museum
and exercise facilities beyond match days, the firm plans to host
four international concerts every year.
Wider preparations to ready Belo Horizonte for the World
Cup include two rapid bus transit systems, even though the
city’s public transport is among the most efficient in Brazil.
Local government has invested R$1.5 billion (US$730 million)
in this sector. The city has also raised R$150 million (US$73
million)tocleanthenearbyLagoadaPampulhaandsurroundthe
freshwater lake with bike and walking trails.
Under the governorship of Aecio Neves, Minas Gerais has
imported public-private partnership models from the UK
to tap unrealised potential. Together with business leaders, such
as the Federation of Industries of the State of Minas Gerais
(FIEMG), the state government is striving to expand new and
existing industries. Already a key exporter and home to Brazil’s
only helicopter manufacturer, Minas Gerais is seeking to ex-
pand in defence, biochemistry and pharmaceuticals. For the city
and its surrounding region, the World Cup is just the start
of its transformation. <<<
Focus on Minas Gerais
“Now is the time for Minas
Gerais to show the world
what we have to offer.”
Marcio Lacerda
Mayor of Belo Horizonte
“The arena is already
established as a centre of
tourism, but we need to keep
the giant awake.”
Ricardo Barra
President of Minas Arena
Brazil’s second most populous state and its capital Belo Horizonte have seen steady growth,
but with rich mineral and agricultural resources, Minas Gerais is set to prosper even further.
“Mineiros are serious, well-
trained, intelligent and hard
working. Life here is calm,
education is good and the
food is excellent.”
Olavo Machado Junior
President of FIEMG
Belo Horizonte’s Mineirao stadium and
Pampulha lake, two of the city’s most
famous landmarks. As well as playing home
to two-time national league champions
Cruzeiro, it has already asserted itself as
a major concert venue thanks to shows
by Paul McCartney and Elton John earlier
this year. Below, President Dilma and Aldo
Rebelo look on as Governor Anastasia
presents the new stadium.
Photo: Sylvio Coutinho
> MINAS GERAIS
FUTEBOL # 5
Like the city itself, football
culture in Brasilia is still in its
infancy. Two local teams – Gama
and Brasilia – have yet to establish
themselves as serious forces in the
country, but the new National Sta-
dium is hoped to be the catalyst
for a new era of growth.
WRITER: CHRIS MUGAN
Photo: Sebastiao Jacinto Junior
BRASILIA