Corruption

Corruption is defined as a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. In South America, it's a part of daily life. In addition to Christianity, family, Incas, and carbs, corruption is another consistent theme traveling through the continent. 

Source: Transparency International

Source: Transparency International

I haven't met many South Americans who are remotely satisfied with their government (not that the US is faring better at present). That's partly a reflection of the extreme political climate in today's world, but correlation usually points in the right direction. Regardless of who's actually at fault, which is difficult enough to untangle, there are so many layers of abstraction between those who have power and those who don't, it's downright discouraging. Why would I work so hard when the money doesn't go into my pocket? It also leads to questions like, "Why would I do it the right way to get half, when others skirt the rules and get double?" that perpetuate the vicious cycle. 

From the favelas in Brazil, drug trafficking and paramilitary conflict in Colombia, wild inflation in Argentina, impeachments in both Peru and Brazil, and the revolving door of governments in Bolivia, the impact on the people is profound. That's not even getting into the kickbacks, off-shore stashing, skimming, taxes, money laundering, and illicit financing happening behind-the-scenes.  

I spent hours reading about one of the largest corruption scandals in history and still have only a basic understanding due to the sheer size and scope of the fraud. In 2014, the Brazilian government opened an investigation into Petrobras, the 64% government-owned multi-national oil conglomerate. The investigation revealed an illegal cartel of construction firms starting in 2004 to land overpriced contracts from Petrobras by paying employees and politicians to secure contracts and move bribe money through back-channels. These revelations have led to the ongoing indictment of dozens of company officials and politicians, as well as the impeachment of then-President Dilma Rousseff in 2016. The findings also exposed Odebrecht, Latin America's largest construction firm, as the de-facto leader of the cartel. In addition to rigging other non-Petrobras projects, the company paid out almost $800 million in bribes across the continent dating back to 2001. It's staggering- no government in Latin America is going to be immune from these investigations.  

Corruption is so engrained, there's a language and subculture around it. In Colombia, 'la mordida' (translation: the bite) encompasses the countless ways in which corruption hits the wallet: fines demanded by crooked cops, under-the-table payments at government offices, increased prices in the supermarket from price-fixing cartels. 'El serrucho' (translation: the saw) refers to the culture of securing contracts through bribes and taking a cut off the top.

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Latin America is the most unequal region in the world in terms of income inequality, invariably tied to corruption. A key reason for the growing gap is the deficient tax system across both corporate and personal domains that enable the accumulation of wealth. An estimated 5% of 2014 GDP in South America was lost due to tax evasion. And the lack of property and inheritance taxes means wealth is passed from generation to generation, which has led to the dominance of powerful families in economics and politics. 

A friend showed me this telling picture of the Paraisópolis favela next to the wealthy neighborhood of Morumbi in Sao Paolo (2004, Vieira).

A friend showed me this telling picture of the Paraisópolis favela next to the wealthy neighborhood of Morumbi in Sao Paolo (2004, Vieira).

It's an admittedly ambitious oversimplification and pessimistic perspective, but I believe the Western world has built up an image of stability because they just haven't historically shoot themselves in the foot. Not all American presidents are remembered fondly, but none stole millions of dollars and fled the country, ordered mass kidnappings, rolled out tanks against a protest, or were sentenced to jail (holding my breath on our current president). Corruption is everywhere, but sometimes it's the difference between a gentle squeeze and crushing it to a pulp. The South American countries seemingly take one step forward only to be forced two steps back.

To be clear, my goal is not to share a holier-than-thou opinion. I don't presume that any other country is better or worse, or whether a country like the US should play a role in curbing corruption. In fact, US involvement in Latin America hasn't led to particularly positive outcomes. It's also not about being socialist or utilitarian, in which everything is shared or overall happiness increases. The reality is, life is already hard enough for most people in this world. When you also have to fight uphill against the system, it limits human potential. That's ultimately what makes me critical and frustrated with the state of corruption.

The people here deserve better. Though the cloud of corruption lingers, they're definitely not short on openness, warmth, optimism, and joy. And that makes me appreciate my time here all the more.

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*Sidenote movie recommendation- I highly recommend Tropa de Elite, a dark and entertaining glimpse into the role of the police in the drug wars of Rio de Janeiro.