Beyond Carnaval: Who Knew? Brazil Needs Foreign Applause to Feel Worthy
Concise reflections, digests, and highlights of the week's significant news within Brazil's investment and innovation landscape.
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IN TODAY'S BEYOND CARNAVAL:
The Brazilian Feeling Of Inferiority (I’m not joking)
The Historical Appreciation For Foreign Products And Services
Success Cases of Foreign Endorsement
In my nearly 30 years of life, I've lived in four cities so far: Brasília, where I was born; Melbourne for a high school exchange; São Paulo for my degree in Product Design; and now Lisbon, where I plan to stay for a while, especially during the European summer. If you've never been, I strongly recommend it!
Despite all my travels, living in different places, and experiencing different versions of myself, I keep asking, “Why do we, as Brazilians, need foreign endorsement to appreciate the richness and potential of our own country?”
This question particularly struck me after noticing on various occasions how I sometimes felt inferior in front of my foreign friends. But why?? Especially now, with globalization knocking on our doors daily!
My quick answer would be: Complexo do Vira Lata (in Portuguese this time, to sound more poetic).
For those who have never heard of this before, I asked Chat-GPT to help me with a better explanation of this feeling:
The "vira-lata" sentiment, or "vira-lata complex," in Brazil describes a feeling of national inferiority. The term "vira-lata" means "mongrel" or "stray dog," and it symbolizes a belief that Brazil and its people are inherently lesser compared to other countries. Popularized by writer Nelson Rodrigues, a renowned Brazilian playwright, journalist, and novelist, in the mid-20th century, this concept reflects Brazilians' tendency to undervalue themselves and feel embarrassed by perceived national shortcomings, whether in sports, politics, or culture. It's a mix of self-deprecation and critical self-reflection, highlighting both areas for improvement and a sometimes overshadowed sense of national pride.
I can guarantee that people from other cultures don't understand the feeling of inferiority some of us Brazilians share. So, in this edition, we will explore how the vira-lata complex impacts the business environment, pushing the local ecosystem to seek foreign endorsement.
As much as I would like, I can not erase that historical heritage, but we can decipher Brazilian potential for foreign investment.
By the way, if you still have a pessimistic perspective on the Brazilian investment market, check out the edition “Beyond Carnaval: Pessimism Is an Ugly Addiction” written by Leo Torres.
The Historical Appreciation For Foreign Products And Services
AI helped me with the research
In Brazil, the allure of foreign endorsement has long influenced Brazilians behavior. The historical context reveals a pattern where international approval has served as a catalyst for domestic acceptance and market success.
During the 19th century, European, particularly British, industries played a pivotal role in shaping the Brazilian economy. The Industrial Revolution in Europe set a benchmark for technological and industrial advancements.
In the 1950s, the Brazilian automotive industry underwent a significant transformation with the entry of foreign car manufacturers such as Volkswagen and Ford. These companies not only introduced advanced manufacturing techniques and technologies but also played a key role in establishing a robust industrial base in Brazil. The vehicles produced during that period became symbols of modernity and reliability, largely due to their foreign origins.
A less exciting fact: In March 2023, Brazil faced a different scenario. General Motors, Hyundai, Volkswagen, and Stellantis announced they would pause their operations in the country due to a shortage of parts and economic instability.
The 1990s marked another significant era with President Fernando Collor’s economic liberalization policies. The opening of the Brazilian market to foreign investments led to an influx of international companies and brands, where the exports reached US$ 31.4 billion, and global exports grew by 13.9% in 1990. This period saw an increased acceptance and demand for foreign products and services, which were often perceived as superior in quality and innovation.
The introduction of international retail chains, technology firms, and financial institutions helped modernize the Brazilian market and integrate it more closely with the global economy. A good example of that is Microsoft that established a subsidiary in Brazil in this period, expanding its operations in Latin America.
Success Cases of Foreign Endorsement
In today’s globalized economy, foreign endorsement continues to play a critical role in shaping Brazil’s market dynamics. Companies that achieve international recognition often gain a significant competitive edge.
Take Embraer, for example. As the world’s third-largest commercial aircraft manufacturer, Embraer boasts around 19,179 employees and has delivered over 8,000 aircrafts to over 100 countries. Its global partnerships and contracts have solidified its reputation for quality and innovation, boosting both investor confidence and consumer trust in Brazil.
Similarly, Natura, a Brazilian cosmetics company, excels in sustainability and social responsibility. Its accolades include:
B Corporation Certification (2014), as the first publicly traded company to earn it.
15th place in the Corporate Knights Global 100 ranking (2019), as the only Brazilian company listed.
United Nations Champions of the Earth Award (2015) and UN Global Climate Action Award (2019).
These endorsements have not only enhanced Natura’s global standing but also showcased Brazilian companies' ability to succeed internationally.
In conclusion, the historical context of foreign endorsement shaping our economy is evident in industries ranging from automotive to technology. The success stories of companies like Embraer and Natura demonstrate that Brazilian enterprises can not only compete globally but also lead in areas such as sustainability and technological innovation.
By recognizing and addressing the "vira-lata complex," we can foster a more confident and assertive national identity. Embracing our strengths while learning from global interactions will allow us to fully unlock Brazil's potential. As we continue to engage with the world, it's crucial to remember that Brazil’s value doesn’t depend on external validation. Let’s celebrate our achievements and work towards a future where Brazilian talent and innovation are recognized and respected both at home and abroad.
The impact of international recognition on the Brazilian market is clear. That's why sometimes we just have to play the game and continue to decipher Brazilian potential.
The Brazilian government officially launched five calls on July 24th for over R$ 19 billion in financial credits for the “Programa MOVER” (formerly "Rota 2030"). This program aims to enhance sustainability in the automotive sector by promoting investment in energy efficiency and recycling, reducing emissions, and encouraging technological innovation.B
Meta announced new AI developments for Latin America, excluding Brazil due to regulatory issues. The launch includes countries like Argentina, Chile, and Mexico. The exclusion follows the suspension of Meta's privacy policy by Brazil's ANPD (National Data Protection Authority), the institution responsible for monitoring the application and management of data in Brazil.
SENAI Bahia and BYD Auto Brasil signed a cooperation agreement for educational, technological, and scientific projects, emphasizing professional training. The initiative aims to support industrial development in Bahia, with plans to establish a significant BYD technology center.
The Brazilian company Datasource Expert is a finalist among more than 4.000 nominees in the 2024 Microsoft Americas Partner of the Year Awards in the ISV Innovation – Latam category. They were recognized for DEXBoard, a solution using generative AI for business data visualization.
Brazil and Saudi Arabia are planning a partnership in R&D for the industrial and mining sectors. During a meeting on July 22 between Brazil's Minister of Science, Technology, and Innovation and Saudi Arabia's Minister of Industry and Mineral Resources, they discussed a $100 million investment aimed at boosting technological innovation and economic growth by leveraging each country's expertise.
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Every Thursday 06:09 am (BR time), the Beyond Carnaval newsletter offers concise reflections, digests, and highlights of the week's significant news within Brazil's investment and innovation landscape.
Delivered on the first Saturday of the month at 06:09 am (BR time), the Open Zeitgeist newsletter provides a space for both Brazilian and "gringo" guests to share their perspectives on Brazilian investment opportunities.
Investors are closely looking for opportunities in our country. It is our job to decipher Brazilian potential.
Tbh, it's been quite some time I haven't read anything about Brazilian culture and history that's so comprehensive. Not just saying it