A corruption scandal involving Brazil’s state-owned energy company, Petrobras, and the government’s ongoing austerity program has stalled the country’s investments in critical infrastructure. Work has either slowed down or has stopped completely at many construction sites around the country. CCTV America’s Paulo Cabral filed this report.
Scandal and austerity dry up infrastructure investment in BrazilA corruption scandal involving Brazil's state-owned energy company, Petrobras, and the government's ongoing austerity program has stalled the country's investments in critical infrastructure. Work has either slowed down or has stopped completely at many construction sites around the country. CCTV America's Paulo Cabral filed this report.
- The slowdown is affecting many key infrastructure projects around Brazil. In some cases – like Sao Paulo’s ring road – contractors involved in the Petrobras corruption scandals are having cash flow and credit problems. Other projects have been hit by cuts in government spending.
- Aside from a deepening corruption scandal, Brazil’s economy is in the doldrums. Combined with short-term investment issues, the country is facing a bumpy economic road ahead.
- Those next two years promise to be bumpy. The Petrobras scandal is still unfolding. A growing number of angry taxpayers are calling for the president’s impeachment And according to one recent survey, the financing for around 30 infrastructure projects has been drying up.
Paulo Sotero from Wilson Center discusses Brazil’s economy
For more on Brazil and its economy, CCTV America interviewed Paulo Sotero, the director of the Brazil Institute at the Woodrow Wilson International Center.