Archives for October 2017

Times are changing

 

With the growth and modernization South America is becoming more and more like North America. This is either making the companies on that continent start to change the way they do things or it’s the companies that have global roots planting their seeds in the countries and spawning change that way.

Recently, my former employer purchased a large mining and chemical company that was in operation in South America. The acquisition was one that took many by surprise. The global idea of big business expands in all directions and is now claiming stakes in the far reaches of South America. “This acquisition gives Mosaic the opportunity to benefit from the growing Brazilian agriculture market. … For Vale, the deal guarantees an important capital injection and a significant minority position in the global fertilizer business,” the Administrative Council for Economic Defense (CADE) said in its published opinion approving the deal.(Rueters)

Many assumed that the company would be out of date and need a total revamp. But to the surprise of most, the company is a 21^st century big business that in most cases is no different than our company. The biggest difference was the amount of employees, in relationship to the North American facilities. The South American operations employees double of the North American operations. The company had a good safety and Environmental record. They produced large amounts of product and shipped efficiently. There really was no difference in the North American and South American operations.

People tend to look at South America and think about jungle and non-developed area, but in actuality there are many cities and regions where you walk down the road and you would think you are in the United States or a European country. Times are changing and changing fast in South America.

 

Costa, L., & Spring;, J. (2017, August 01). Brazil regulator approves Mosaic purchase of Vale fertilizer unit. Retrieved October 16, 2017, from https://www.reuters.com/article/us-vale-m-a-mosaic-fertilizers/brazil-regulator-approves-mosaic-purchase-of-vale-fertilizer-unit-idUSKBN1AH4PH

Rio de Janeiro. As the summer of 2016 approached, the world’s attention centered on this Brazilian state as the Olympic Games made their way to a South American country for the very first time. Eyes were on athletes such as Michael Phelps and Usain Bolt, and the anticipated camaraderie and goodwill of the Olympics brought a glimmer of hope to a world often otherwise overshadowed by turmoil and animosity.

Yet, as the games drew near, even more attention was given to the host city and its readiness – or lack thereof – to welcome the world and its athletes. Less than two months before the opening ceremonies, construction equipment and supplies were piled everywhere; grandstands were only partially built; and construction delays caused by the failure to obtain necessary permits resulted in damage to partially-built facilities (Barbara, 2016). Reports of high crime, pollution and the Zika virus added fuel to the widespread concern from the outside that Brazil was ill-equipped for the Olympic-sized undertaking (Barbara, 2016).

From a distance, through our television and computer screens, Rio seemed to have succeeded in pulling everything together. With the exception of the green water in the diving pool, and the sparse attendance at some of the events, the setting seemed complete as the world celebrated the strength, perseverance and teamwork through rose-colored glasses. Yet those issues, coupled with broken toilets in the Athletes’ Village, uncharacteristic booing of athletes by spectators, and shootings and robberies, raised concerns by Olympic officials (Rossingh, 2016). According to one International Olympic Committee official, the Rio Olympics were “the most difficult games we have ever encountered” (Rossingh, 2016).

Even more striking, however, is the state of the Olympic venues subsequent to the Summer Games. Hosting the Olympic games is a coveted opportunity that is expected to yield long-range financial benefits. Yet a year after their use, Rio’s facilities are in states of disrepair as a result of vandalism, unpaid electric and water bills, and damage from lack of proper maintenance; in addition, venues such as arenas and golf courses have been unsuccessful in attracting business and tourism that was promised, resulting in an even further implosion of the recreational infrastructure (Farand, 2017).

As the Olympics approached, Brazil was embroiled in a political crisis that resulted in the removal of its president, Dilma Rouseseff, and was experiencing an economic recession. It could be argued that those factors contributed to the lack of preparedness for the Olympics (Barbara, 2016). However, the same culture that contributed to those national crises could have provided the backdrop for the disarray surrounding the Olympics. Moran, et al. (2014) enumerates Hofstede’s four dimensions of national culture, one of which is power distance, or the inequity that exists between the powerful and nonpowerful. That power distance can be seen in the economic disparity that exists in Brazil, where upper-class neighborhoods exist alongside favelas, or shantytowns, where millions live without even the most basic services (Moran, et al., 2014).

Disregard for the homeless and disadvantaged as the Olympic infrastructure took form was apparent. Rather than the promised boost to the communities in Rio, the Olympics created an even greater chasm. Thousands of people were displaced to accommodate Olympic buildings. Basic sanitation and water in one favela were disregarded and tourist attractions were established instead. Subway stations were built in wealthy neighborhoods rather than in areas that would have benefited working class individuals (Barbara, 2016). One year later, dilapidated buildings and debris are eyesores and breeding grounds for disease and vandalism; and housing in the Athletes’ Village is too expensive for those it was intended to assist (Farand, 2017). “Rio 2016 leaves a shady legacy of a city entrenched with marginalization and discrimination, with a deeply militarized public security approach and a record of human rights violations, where violence remains part of the game” (Farand, 2017).

Were political and economic factors responsible for what is seen as an unsuccessful Olympic result? Were organizers ill-equipped and unprepared for the expansive project? The answer to these questions is, most likely, yes. Yet underlying it all is the power distance that enabled influential and affluent business and property owners to reap the benefits of what was promised to be a new world for the people of Rio, with disregard for and at the expense of the non-powerful.

 

References:

Barbara, V. (July 1, 2016). Brazil’s Olympic catastrophe. Retrieved October 15, 2017 from https://www.nytimes.com/2016/07/03/opinion/sunday/brazils-olympic-catastrophe.html?_r=0

Farand, C. (February 10, 2017) Rio 2016 Olympic venues left in disrepair as Brazil struck by its worst recession in modern history. Retrieved October 15, 2017 from http://www.independent.co.uk/sport/olympics/rio-olympic-venues-disrepair-2016-brazil-worst-recession-economy-ruin-a7572786.html

Moran, R., Abramson, N., Moran, S. (2014) Managing Cultural Differences. New York, NY: Routledge

Rossingh, D. (August 22, 2016) Rio Olympics 2016: Did Brazil pass or fail its big test? Retrieved October 15, 2017 from http://www.cnn.com/2016/08/22/sport/rio-olympics-2016-report-card-pass-fail/index.html

 

 

Dilma Rousseff was the first female president of Brazil and served from 2011-2016 after serving as chief of staff to her predecessor, Luiz Inácio Lula da Silva from 2005-2010. She was impeached in 2016 for allegedly breaking a Brazilian budgetary law.

Rousseff did not accept the impeachment as a fair conduct of business or anyone looking out for the country of Brazil. Instead, she calls it sexism. Upon further investigation, the impeachment of Dilma Rousseff was shining a light on the problem of sexism in that country as a whole.

In 2016 women were largely “employed” as domestic help (Salek, 2016). Rousseff’s vice president took over from her upon the impeachment and appointed a newly formed cabinet of 23 white men, the first cabinet in Brazil made up with no female representation since 1979 (BBC Staff, 2016), during a time of a military dictatorship (Salek, 2016). It’s important to note that women make up 51% of the Brazilian population while only 22% of the nation identify as “white men” (BBC Staff, 2016). One member of the cabinet, Eliseu Padilha said “We tried to seek women but for reasons that we don’t need to bring up here, we discussed it and it was not possible” (BBC Staff, 2016).

According to Moran, Abramson and Moran (2014) psychological research identifies two types of sexist ideologies namely benevolent sexism and hostile sexism. Benevolent sexism is the belief that “women should be protected and taken care of” while hostile sexism “is rooted in the belief that women are inferior to men” (Moran, 2014). When I look at some of the statistics about women in leadership roles in Brazil, I am inclined to think that there is a sexist culture of the latter. Here are some factoids that make me think that:

• Brazil is one of the most dangerous countries in the world for women to live—every two hours a woman is murdered (Garcia-Navarro, 2014)
• Only 11% of CEOs in Brazil are female (Moran);
• Of 81 members in the Brazilian senate only 12 are women (Salek, 2016);
• The “Party of Brazilian Women” has only one elected Member of Parliament – a man! (Salek, 2016);
• Between October 2015 and January 2016 the search for the word “feminism” on Google rose by 86% (Hao, 2016);
• 59% of Br
  azilians believe that there would be fewer rapes if women knew how to behave (The Globalist, 2014);
• Women receive 68% of men’s salaries (this plummets to 35% if a woman is either black or multiracial);
• 71% of all workers making less than one-quarter of the minimum wage are women (Doremus, 2016);

So can women in Brazil overcome the sexist culture in that country? I say YES! Women heading up the household is on the increase and female entrepreneurship continues to rise (Doremus, 2016). Rousseff maintains that there is large prejudice against women in Brazil, and while women still make up only a fraction of management positions in the country women do make up 52% of college grads (Novais, 2013) and women in that country continue to fight for their rights and their independence. You go (Brazilian) girl!

References:

BBC Staff (May 14, 2016). Brazil impeachment: Rousseff attacks cabinet for being all-male and all-white. BBC. Retrieved on 10/14/17 from http://www.bbc.com/news/world-latin-america-36292137#

Doremus, M. (May 17, 2016). Working as a Woman in Brazil. Plus 55. Retrieved on 10/14/17 from http://plus55.com/brazil-business/2016/05/working-woman-brazil

Garcia-Navarro, L. (March 16, 2014). Which Place Is More Sexist: The Middle East Or Latin America? NPR. Retrieved on 10/14/17 from http://www.npr.org/sections/parallels/2014/03/11/289058115/which-place-is-more-sexist-the-middle-east-or-latin-america

Hao, A. (July 5, 2016). In Brazil, Women are Fighting Against the Sexist Impeachment of Dilma Rousseff. The Guardian. Retrieved on 10/14/17 from https://www.theguardian.com/global-development/2016/jul/05/in-brazil-women-are-fighting-against-the-sexist-impeachment-of-dilma-rousseff

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). Oxford: Routledge.

Novais, A. (March 15, 2013). Women and Business in Brazil. The Brazil Business. Retrieved on 10/14/17 from http://thebrazilbusiness.com/article/women-and-business-in-brazil

Salek, S. (May 16, 2016). How Rousseff has highlighted Brazil’s sexism problem. BBC. Retrieved on 10/14/17 from http://www.bbc.com/news/world-latin-america-36303001

The Globalist. (July 6, 2014). 8 Examples of Sexism in Brazil. The Globalist. Retrieved on 10/14/17 from https://www.theglobalist.com/brazilian-women-under-attack/

 

 

 

With such a wide range of cultures around the world and a plethora of individuals vying for leadership of these countries, the question is raised of what to do when your leaders fail to lead. Brazil is currently involved in a scandal of mammoth proportions. President Michel Temer is facing corruption charges (Lima & Iglesias, 2017), the previous president, Dilma Rousseff was impeached for violations of budget rules (Cuadros, 2017), and now, senior military leaders are threatening a coup.

In 1964, the Brazilian military threatened the same thing, and started a twenty-one-year dictatorship (Cuadros, 2017) which resulted in almost no change to the political atmosphere and culture of the country. Ask the people of Brazil, and they will say it was a time of order, and lawfulness. These feelings are likely to do with the lack of news and press at the time.

The current discussion of a coup by military leaders needs to be met with social learning as proposed by Albert Bandura (PSUWC, 2017). Through observing a successful country of similar cultural features, the leaders of Brazil need to focus on what needs to be changed, being able to retain that information, have the motivation to use the model, and to reproduce what has been done. Through these steps, Brazil has a much better chance of being successful without the use of a military coup.

Brazil has had a tenuous political history as of late, and without some kind of change, they are destined to stay on the path they’re on now. Through use of Bandura’s social learning process, I think they should be successful in turning the political climate around without the use of a military coup which has a poor track record. Military leaders need to be called on to show their leadership through their involvement with this process rather than being resistant to change.

 

References:

Cuadros, A. (2017) Open Talk of a Military Coup Unsettles Brazil. Retrieved from https://www.newyorker.com/news/news-desk/open-talk-of-a-military-coup-unsettles-brazil

Lima, M & Iglesias, S. (2017) Temer Is Brazil’s Most Unpopular Leader Ever, Poll Says. Retrieved from https://www.bloomberg.com/news/articles/2017-09-28/most-unpopular-leader-ever-in-brazil-is-temer-poll-shows

PSUWC (2017) Social Learning. Retrieved from https://psu.instructure.com/courses/1867265/modules/items/22824731

 

Greg Baker/AFP

 

The leaders of countries around the world have extensive influence both within their own country as well as with other less stable countries. So, when the president of Panama made the move to cut diplomatic ties with Taiwan in favor of ties with China, the world took notice (Reuters, 2017). The change in Panama’s stance on its alliance leads to the question of why the Latin American country, just north of Colombia changed its tune. Typically, a community-oriented culture, Panama has succeeded in upsetting the synergy not only between its self and Taiwan but furthering the upset in the synergy between Taiwan and China. For a country in which community and relationships are so important, was Panama concerned with its relationships between its self and these Asian nations, or within its own community?

Relations between Taiwan and China have been strained since the Chinese civil war which ended in 1949. The communist party, People’s Republic of China, took control of the Chinese mainland, pushing the Republic of China to the island now known as Taiwan (Diffen, n.d.). Since then the relations between the island nation and mainland China have been cordial but strained at times. Taiwan insists it is its own independent nation, and China insists Taiwan is a part of China (Reuters, 2017).

Only in the past decade has Panama begun to create stability financially through mainly infrastructure and export expansion (World Bank, n.d.). Best known for the Panama Canal, Panama expanded the canal in a nearly 10-year project that opened in 2016 amongst concerns over decreases in the shipping trade, water levels, and ability of ship captains to maneuver through the new canal (Kahn, 2016). Still, Panama persevered.

“Cultures with high-synergy tend to be highly co-operative, community-oriented, and have the good of all in mind. Typically, these societies are collectivist in nature” (PSUWC, 2017). Panama, along with other Central American countries have been attempting to create both political and economic synergy amongst themselves with CAFTA (Central American Free Trade Agreement) through decreasing tariffs on exports and attempting to bring the countries together to build their economic and political stability (Moran, Abramson, Moran, 2014).

With the promise of more economic stability and a culture that chooses community over all else, it is no wonder, that with countries around the world breaking ties with Taiwan, Panama would be the next to do so. To create a stronger country through it’s newly formed ties with China, Panama is in a better position to lead Central America into a new age marked by economic and political stability for those within its own community through ties to a country like China with a strong economy. When it comes down to it, Panama was looking out for its own country as well as Central America in this move that may have appeared to some to be making a political statement.

 

References:

Diffen (n.d.) People’s Republic Of China vs. Republic Of China. Retrieved from http://www.diffen.com/difference/People%27s_Republic_Of_China_vs_Republic_Of_China

Kahn, C. (2016) The $5 Billion Panama Canal Expansion Opens Sunday, Amidst Shipping Concerns. Retrieved from http://www.npr.org/2016/06/25/483523910/the-5-billion-panama-canal-expansion-opens-sunday-amidst-shipping-concerns

Moran, R., Abramson, N., Moran, S. (2014) Managing Cultural Differences. New York, NY: Routledge

PSUWC (2017) Lesson 06: Cultural Synergy. Retrieved from https://psu.instructure.com/courses/1867265/modules/items/22824740

Reuters (2017) Panama’s president says switching China ties not ‘checkbook diplomacy’. Retrieved from https://www.reuters.com/article/us-china-panama-taiwan/panamas-president-says-switching-china-ties-not-checkbook-diplomacy-idUSKCN1BU03V

Reuters (2017) China Says Taiwan Not a Country, Taiwan Says China Needs Reality Check. Retrieved from https://www.usnews.com/news/world/articles/2017-09-27/china-says-taiwan-not-a-country-taiwan-says-china-needs-reality-check

World Bank (n.d.) World Bank in Panama. Retrieved from http://www.worldbank.org/en/country/panama/overview#1