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1. Domestic instable (corruption; increasing unemployment rate)
2. Foreign policy U turn
3. Downturn continues in its economy
4. Military branch still missing

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Corruption: “Never has the political and economic system been hit so profoundly,” 

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Corruption: “Never has the political and economic system been hit so profoundly,” 

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Become an FT Subscriber. Gain a global perspective on the US and go beyond with curated news and analysis from 600 journalists in 50+ countries covering politics, business, innovation, trends and more.

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Summary: Attaining position of Strong Middle Power

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Summary: Attaining position of Strong Middle Power

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1. Rising influcence in regional cooperation
2. Resisting FTAA and forging MERCOSUR
3. Ambition in becoming regional power
4. Assuming role as regional leader

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1. Leading in Social Development
2. Regional leadership threatened by China
3. Leading in corporate sustainability
4. Soft power in tackling corruption

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Brazil has been a leader in social development among the BRICS

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Brazil has been a leader in social development among the BRICS

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Brazil has been very successful in tackling inequality, and welfare outcomes among the BRICS

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What is the state of the BRICS economies?

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The BRICS club, which used to be known for its tremendous growth potential, is today in the midst of severe economic and political woes.

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Rising influence in regional cooperation & in new issues

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Rising influence in regional cooperation & in new issues

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Instead of using 'hard power', Brazil is focusing on leading and forming coalitions of developing states to strengthen shared values and normative commitment.

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Brazil is still a very unequal country in income distribution.

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Resisting US influence (FTAA) and forging their own regional economic bloc (MERCOSUR)

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Resisting US influence (FTAA) and forging their own regional economic bloc (MERCOSUR)

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Brazil was a leader in developing the MERCOSUR trade bloc among Latin American countries. This was partly in response to President Clinton's push for a FTA among the Americas, where Brazil used this alternative as leverage in FTAA negotiations to help secure a stronger position in the possibility of the FTAA

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MERCOSUR and the FTAA: New Tensions and New Options

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Global Policy Forum is a policy watchdog that follows the work of the United Nations. We promote accountability and citizen participation in decisions on peace and security, social justice and international law.

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Brazil’s aspirations to become a regional power

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Brazil’s aspirations to become a regional power

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1. Brazil was historical a regional power

2.Brazil's influence on policy-making in Latin America

3.Brazil became very competitive in agricultural and animal production over the past 30 years

4.Brazil supporting large agribusiness firms to induce or increase competition in the foreign market.

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Impressive role in UN peacekeeping & investment

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Impressive role in UN peacekeeping & investment

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- Against Iran nuclear sanction
- Learder role in peacekeeping missions: high participate rate and impressive performance in promoting the UN core thinking.
- Invedted several countries in Africa during economic boom period. (gathering more cross region influence)

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Brazil is threatened by China's engagement and leadership in Latin America

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Brazil is threatened by China's engagement and leadership in Latin America

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The vacuum left by the US has led to China to engage much more with Latin America, becoming the most significant economic actor in the region. This influence threatens Brazil's regional primacy.

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The geopolitics of China's rise in Latin America

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Ted Piccone reflects on the broad geopolitical implications of China's role in Latin America, exploring whether increased economic connection with Latin American states is a further indication of a China more assertively challenging a Western or U.S.-led international order.

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Rely on nature resource and raw agricultural product export, which increases the uncertainty of its economic growth.

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Brazil is a leader in corporate sustainability

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Brazil is a leader in corporate sustainability

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Corporations in Brazil have been significantly influenced by international organizations that promote ecological responsibility in preserving and mitigating damage to the Amazon

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In India, family-owned enterprises like the TATA group occupy a place in citizen's hearts and minds that is not easily shifted. They are viewed as the "go to" institutions to build schools and other social institutions, and fulfilling these social needs guarantees these companies' license to operate.

In Brazil, corporate sustainability is strongly influenced by international institutions focused on climate change and governance of the Amazon rainforest. Beyond the Amazon, domestic attention is focused on social issues, including the country's pending "talent blackout," and what it will take to create a competitive Brazilian workforce.

And in China, which continues to be the "world's factory," CSR traditionally has centered on compliance with corporate codes of conduct imposed by multinational brands. However, sustainable investment-particularly in clean-tech-is an emerging part of CSR in China.

For the past 20 years, corporate sustainability largely has been defined by people and institutions in the West, but with the current global shift in economic balance, countries like Brazil, India, and China are redefining the landscape of sustainability. These emerging markets are facing the most fundamental economic, environmental, and social questions of our generation, making them laboratories for sustainability solutions that will shape our world for a long time to come. As these countries are increasingly recognized on the world stage through events like the World Economic Forum in Tianjin and Rio+20 happening this week in Brazil, more companies are beginning to understand the difference in sustainability issues, how they are prioritized, and how they are addressed in these regions.

BSR recently explored this new geography of corporate sustainability in depth through a series of workshops organized by the UN Global Compact LEAD with input from A.P. Moller-Maersk, Novo Nordisk, and Novozymes, and additional research funded by Novo Nordisk.

During our research, we discussed three key questions with thought leaders in business, government, and civil society:

How is corporate sustainability being defined in emerging markets?

Who is shaping the discourse and action in these regions?

What's the trajectory of corporate sustainability in these countries?

What follows is a snapshot of trends in corporate sustainability in each country-and a look at what this means for the evolution of CSR in new geographies and the world at large.
Photo of Indian children provided by zeber via Shutterstock
China: From Risk Management to Capturing Opportunities in the Environment

In China, the current thrust of CSR has been toward mitigating the increasingly acute environmental effects that rapid economic growth has had on the country. Discourse and action on energy efficiency, air, and water pollution dominate national "sustainability" regulation and public sentiment. In 2005, the government's "harmonious society" construct outlined a commitment to societal balance, and today, there is a clear understanding that environmental degradation, if left to progress, will undermine the delicate balance of Chinese society.

Perhaps because of this emphasis on environmental issues, China's CSR focus is beginning to move from risk mitigation to opportunity capture, with the clean-tech sector receiving investments from the state, private equity, and larger institutional investors.

Another defining aspect of CSR in China is the strong role of government, particularly in shaping the agenda for state-owned enterprises (SOEs) and foreign enterprises. CSR has evolved over recent years under the aegis of the state-the growth in corporate reporting on sustainability has been driven in large measure by the publication of SASAC's CSR guidelines in 2008.

The growth in independent groups advocating for increased transparency on companies' environmental performance in an effort to hold companies accountable for improved environmental performance (including the Green Choice Alliance) has also been enabled by tacit government support.

At the same time, an independent civil society in China is still nascent, at best. The sector is hampered by high administrative hurdles and associated set-up costs. It is likely SOEs, certainly those with more global experience, will increasingly shape their own actions on sustainability performance, but within parameters defined by government.

India: A Localized Approach to CSR

Given the country's history, corporate sustainability in India has traditionally been anchored around social issues such as injustice and poverty at the local level. The lack of health and education infrastructure also continues to be profound in the poorest Indian states, and people in India expect companies to help fill these gaps.

It may seem, to those looking in, that India has a robust civil society, very much concentrated on meeting the needs of the poor. But to those operating within the country, civil society is fragmented and hampered in its potential for positive impact by a lack of coordination and resources. (Indeed, "pan-Indian movements, such as the anti-corruption movement catalyzed by campaigner Anna Hazare, are rare.) For some, an analogy to "a thousand flowers blooming" underscores the huge opportunity that exists for civil society to innovate and explore new models of collaboration with business. To others, this chaos will never settle, thus preventing new models from scaling up.

In this context, expectations of corporate paternalism are encouraged and shaped by civil society, especially at the local community level, where education and health needs are most acutely felt. To date, business has been satisfying demands placed on it in order to secure local license to operate, and this local nature of corporate sustainability will ensure it continues to be shaped from the bottom up.

Brazil: Trying to Achieve the Right Balance in CSR

Relative to India and China, Brazil appears to be the most balanced in terms of its corporate sustainability orientation, although addressing social issues is still paramount. In addition, discourse about the Amazon-its importance to Brazil's future development, its role in climate change, the importance of protecting its natural resources, and the question of land tenure in the region-also shapes the agenda. More recently, corporations have become increasingly alarmed by the so-called "talent blackout" facing the country, and they are focusing financial resources on education programs.

In terms of the forces shaping Brazil's CSR agenda, civil society is vibrant and has been effective in lobbying for specific causes. Society is also becoming more open to opinions from international NGOs focused on effective governance of the Amazon. Meanwhile, business is characterized as the productive sector-one that is pragmatic in its dealings with civil society, government, and foreign value chain partners. As a result, transparency on corporate sustainability performance is growing, as shown by the popular uptake of the Global Reporting Initiative (GRI), and civil society is holding corporations to account for their sustainability performance.

In contrast, many view the federal government as ineffective in its CSR role due to excessive bureaucracy, or what companies call "the Brazil cost." While regional governments are piloting new legislation (Rio de Janeiro, for instance, is developing a carbon credit scheme), there is skepticism about whether these programs will really take off.

The Future Focus of CSR

Unsurprisingly, there is not a "one size fits all" approach to corporate sustainability in these new geographies. However, there are certain commonalities among the countries that can be gleaned from the research-and those will be important for companies' CSR strategies going forward.

Prioritize social and economic development: Brazil, India, and China are still in the throes of rapid social and economic development, with all the challenges and opportunities that such growth entails. Companies in these markets are approaching corporate sustainability as a nation-building tool to improve development outcomes. For example, companies in Brazil are building educational institutions and are training teachers to populate them. In India, companies are being called upon to build bridges, hospitals, and other infrastructure. In China, they are expected to help build a harmonious society. In all these cases, the role of business in society is underpinned by a broad expectation of corporate paternalism.

Don't underestimate the need for stakeholder approval: Corporate sustainability in these markets is focused on seeking approval and gaining legitimacy from a broad array of domestic and, in some cases, global stakeholders. In China, for example, corporate sustainability emphasizes alignment with government priorities on sustainable development: Companies seek approval from the government for their actions in this regard. In Brazil, corporate sustainability is driven by local reputational considerations and also by an increasing need to gain legitimacy among potential (Western) value chain partners looking to invest. And in India, companies seek approval from communities to acquire local license to operate. International frameworks like the GRI and UN Global Compact provide structured processes for companies to collect and report data that legitimize their actions in the minds of multiple stakeholder groups. This appears to be particularly important for "home grown" companies that are growing globally.

It is clear that the research to date on the new geographies of corporate sustainability has only just begun to surface the many insights on the topic in emerging markets. Further work is needed to expand the dialogue beyond Brazil, India, and China to engage a broader, more diverse audience from business, civil society, and government, and further test some of the observations gathered thus far.

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How Brazil, India and China are redefining sustainability

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In India, family-owned enterprises like the TATA group occupy a place in citizen's hearts and minds that is not easily shifted. They are viewed as the "go to" institutions to build schools and other social institutions, and fulfilling these social needs guarantees these companies' license to operate.

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Inflation, Finance deficit and Poor Infrusturecture

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Inflation, Finance deficit and Poor Infrusturecture

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Inflation is pushing right up against the Central Bank's ceiling of 6.5% per year. The balance of payments deficit is rising. Infrastructure such as ports, roads, and airports is poor.

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With Temer came into power, Brazil may shitf its policy direction opposite to the one it holds for years. This trend is indicated through Temer's recent acts include accusing previous policy 'idealism'
and sought to be more friendly with the US (used to be bland indifference)

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By Maria Rodriguez-Dominguez, To download a PDF of this article, click here. Research Associate at the Council on Hemispheric Affairs Brazilian Diplomacy under Lula and Dilma
Over a decade ago, the world witnessed the emergence of a relentless rising power. As a result of an effective and carefully implemented foreign policy, the South American giant and fifth largest country in the world quickly consolidated itself as regional leader par excellence and was joining efforts with other nations to shift the global balance of power. This trend may have been less energetic during President Dilma Rousseff's mandate, but the Brazilian foreign policy post-coup is merely a shadow of its former self. Additionally, the post-ideology stance of the new government is far from being genuine as its diplomacy encompasses a neoliberal view that favors an alignment with the United States over regional integration, and South-South cooperation.

Luiz Felipe Lampreia, Minister of Foreign Affairs under President Fernando Henrique Cardoso, once declared that "o Brasil não pode ser mais do que é" (Brazil cannot pretend to be something more than it is). Lula's foreign policy, carefully articulated by Celso Amorim (Minister of Foreign Affairs), Marco Aurélio Garcia (Special Advisor) and Samuel Pinheiro Guimaraes (Secretary General of Foreign Affairs) demonstrated that a " diplomacia activa e altiva (active and prominent diplomacy), could serve to consolidate Brazil's regional and international influence. In addition to observing historical principles of Brazilian diplomacy, such as non-intervention and self-determination, the quartet embraced new precepts, such as non-indifference and emphasized regional integration and decentralization of global power through the promotion of multilateralism and South-South cooperation.

Although the country's agenda prioritized regional integration through the Southern Cone Market (Mercosur), Lula's foreign policy was successful in strengthening bilateral relations with other Latin American nations, regardless of the governments' political orientation. For example, Brazil acted as a credible interlocutor with both the opposition as well as the government during the Venezuelan crisis in 2003 and backed the Union of South American Nations (UNASUR) as an important mediator vis-à-vis the regional political crises and the Andean diplomatic crisis in 2008, just as it did in the Honduran Coup in 2009.

Similarly, Brazilian foreign policy was consolidated as an effective instrument to advance the country's interests and to shift the balance of power through multilateralism. Despite its profound shortcomings, Brazil's leadership in the United Nations Stabilization Mission in Haiti (MINUSTAH) represented the nation's largest engagement in peacekeeping operations to date. Together with other regional powers and developing countries, Brazil strongly advocated for the reform of the United Nations Security Council to expand the number of permanent and non-permanent members in an effort to more accurately reflect current political realities. For more than a decade, Brazil actively engaged with other so-called BRICS countries (a group of emerging markets made up of China, Brazil, Russia, India and South Africa), to call for new initiatives such as the BRICS Development Bank, and even moved to diversifying its trade strategies to reduce its dependence with the United States. As a result, China became Brazil's largest trading partner in 2009.

Despite the move away from its traditional U.S.-trade centrism and the opposing views concerning international trade, the governments of Lula and Dilma maintained an amicable relationship with Washington. Negotiations on ethanol production, as well as efforts to resolve trade disputes through the mechanisms of the World Trade Organization (WTO), are a few examples of the cooperation that defined the bilateral relationship. The economic results of this active foreign policy were positive for Brazil and included a surplus of $308 billion USD as of 2014, and a global trade participation rate of 1.46%. Reaffirming Brazil's sovereignty, Dilma cancelled a visit to the United States in 2013 over alleged spying revelations. However, both governments went on to re-establish a fruitful relationship that eventually facilitated Dilma's visit two years later.
The End of Ideology in Brazil's Foreign Policy?
More concerned about the domestic economic slowdown, Dilma Rousseff may not have emphasized foreign policy as much as her predecessor. However, her administration was able to achieve key diplomatic victories through the appointment of José Graziano da Silva, the architect of the laurate Fome Zero (Zero Hunger) program, as Head of the U.N. Food and Agriculture Organization (FAO) in 2011 and Roberto Azevêdo as Director General of the World Trade Organization (WTO) in 2013.

Despite the positive record of Brazilian diplomacy over 13 years, the government of Michel Temer announced a reorientation toward a so-called "non-ideological" diplomacy much more focused on trade. According to Aloysio Nunes Ferreira, the current Minister of Foreign Affairs, the goals of the new foreign policy are defense of national interests and engagement with the rest of the world. For anyone with an understanding of the foreign policy carried out by the Partido dos Trabalhadores (Workers' Party, PT) governments, these assumptions seem redundant as both objectives were largely achieved by Lula's and Dilma's administrations.

Both Nunes Ferreira and José Serra, the previous Minister of Foreign Affairs, have accused PT foreign policy as being too ideological. However, they conveniently disregard the fact their current foreign policy is based on a neoliberal ideology which highly favors the business groups that keep the Temer government in power.

As opposed to all of the foreign ministers under Lula and Dilma, who were career diplomats, Serra and Nunes were long-time politicians from the Partido da Social Democracia Brasileira (Brazilian Social Democracy Party, PSDB). Moreover, the fact that both of them have been included in the Lava Jato (Car Wash) Operation, suspected of corruption charges, puts into question the so-called pragmatism that they preach. To indicate the severity of events, in 2015 for example, the Brazilian Supreme Federal Court authorized the investigation of Nunes Ferreira for bribery during his campaign for the Senate in 2010.

By accusing the PT diplomacy of ideological, Temer's government is hypocritical because it is forgetting the fact that its foreign policy is based on a market ideology that seeks to preserve the former status quo which was strongly aligned with U.S. interests. It is no coincidence that on his first trip abroad to India and Japan, Temer was accompanied by Blairo Maggi, the Minister of Agriculture, also known as the "Soy King," who has been accused of being one of the biggest deforesters of the Amazon rainforest.

The reorientation of Brazilian foreign policy has been especially visible at the regional level, particularly with regard to the role sought by Mercosur and Unasur. As opposed to the previous integration efforts, Temer's first action was to block, together with Argentina, Uruguay from passing Mercosur's presidency pro-tempore to Venezuela. Venezuela was finally able to preside over the regional organization, as Uruguay insisted at the time on respecting the organization's rules regarding succession of the presidency. This overt attack against the Andean country negatively affected Brazil's regional leadership, as it lost its ability to act as mediator in the Venezuelan crisis as it had in 2003. Additionally, Temer has favored the Organization of American States (OAS) as the main conflict resolution organ, disregarding the previous role of Unasur to effectively solving political crises within the region. This is problematic because it reveals a growing realignment with the United States as opposed to Unasur's regional independence.

As Brazil's involvement with the BRICS is weakening, Temer's government has ardently sought alignment with the United States. For instance, Nunes Ferreira recently revealed the administration's intention to negotiate a bilateral trade agreement rather than through Mercosur, arguing that "the two largest countries in the Americas share a great deal in common... and should work together to build a mutually beneficial agenda." To further advance such an agenda, the government has approved measures that directly favor U.S. interests, such as the end of the compulsory participation of the state-run company Petrobras in the exploration of oil in the Pré-Sal reserve. There is also a bill that would allow foreign governments to use the Alcântara launch base in the State of Maranhão. Brazil has also renounced its intention of reforming the U.N. Security Council, which José Serra wrote off as "a fight for the big guys."

This shift toward a more submissive foreign policy was criticized by David Rothkopk, former editor of Foreign Policy magazine in an interview with the BBC in May 2016, who declared, "if Serra thinks that reforming foreign policy means to undo what Lula has done, he is not acting in the best interests of Brazil". According to Rothkopk, establishing trade policies with only certain countries, keeping a low profile in multilateral relations, and adopting a "skeptical-reflexive" tone with the United States will not be positive for Brazil.Indeed, after more than a year in power, Temer and his two foreign ministers have shown that neither sovereignty nor the promotion of multilateralism is an essential component of their administration's diplomacy. Moreover, Temer's controversial takeover and his suspected involvement in corruption episodes have taken a negative toll on Brazil's reputation at the international level. Several foreign leaders such as Israeli Prime Minister Benjamin Netanyahu and U.S. Vice President Mike Pence have opted not to visit the country and Temer's team has had a hard time setting bilateral meetings in international fora such as the G20 meeting in Germany and the most recent session of the U.N. General Assembly.
Maria Rodriguez-Dominguez, Additional editorial support provided by Aline Piva, Assistant Deputy Director and Head of Brazil Unit, and Liliana Muscarella Research Fellow Image: Michael Temer at United Nations Taken From: Wikimedia Research Associate at the Council on Hemispheric Affairs
For years, Brazilian diplomacy was a global example of a dignified and active foreign policy that, along with a group of emergent economies, had the potential to shift the balance of power toward a multipolar world order. Its leadership allowed it to act as a credible mediator within the region while maintaining solid bilateral relationships with an array of governments, regardless of their political orientation. Brazil was also able to advance its national interests through diplomatic initiatives. Despite this exemplary reputation, Temer's government has disdainfully labeled the previous foreign policy as ideological. That said, it is contradictory that a government that has shamelessly favored the interests of a nefarious group which has kept it in power, can implement an impartial and independent foreign policy. Its current alignment with the United States and its rejection of multilateralism signals that Brazil's diplomacy is far from being non-ideological. However, as former Foreign Minister Celso Amorim stated: "When policy is carried by the left, it is seen as partisan. When the right carries it, it is perceived as state policy. Perhaps this is because the right has always dominated the state."

Roberto Amaral. "Serra e o servilismo na política externa." Carta Capital. July 08, 2016. https://www.cartacapital.com.br/internacional/serra-e-o-servilismo-na-politica-externa.

João Paulo Caldeira. "Lula e Dilma não implantaram diplomacia 'ideológica', diz Samuel Pinheiro Guimarães." GGN. July 04, 2016. https://jornalggn.com.br/noticia/lula-e-dilma-nao-implantaram-diplomacia-ideologica-diz-samuel-pinheiro-guimaraes.

Amorim, Celso. "A política externa do governo Lula: dois anos." Ministério das Relações Exteriores. http://www.itamaraty.gov.br/pt-BR/discursos-artigos-e-entrevistas-categoria/7788-a-politica-externa-do-governo-lula-dois-anos-artigo-do-ministro-das-relacoes-exteriores-embaixador-celso-amorim-publicado-na-revista-plenarium.

"Brazil sets trade records, due to Chinese demand." NPR. January 02, 2012. http://www.npr.org/2012/01/02/144587105/brazil-sets-trade-records-due-to-chinese-demand.

João Paulo Caldeira. Op. Cit.

Marcelo Zero. "Nem o barão do Rio Branco salvaria a política externa do golpe." 247. March 6, 2017. https://www.brasil247.com/pt/colunistas/marcelozero/283605/Nem-o-bar%C3%A3o-do-Rio-Branco-salvaria-a-pol%C3%ADtica-externa-do-golpe.htm

Aloysio Nunes Ferreira. "Brazil's Foreign Policy Is "Back in the Game"." Americas Quarterly. April 17, 2017. http://www.americasquarterly.org/content/brazils-foreign-policy-back-game.

Diogo Bueno and José Medeiros. "Aloysio Nunes: uma política externa omissa e submissa." Carta Capital. March 03, 2017. https://www.cartacapital.com.br/blogs/blog-do-grri/aloysio-nunes-uma-politica-externa-omissa-e-submissa.

João Filho. "Gaffes, mistakes, and humiliations define Brazil's new foreign policy." The Intercept. October 26, 2016. https://theintercept.com/2016/10/26/gaffes-mistakes-and-humiliations-define-brazils-new-foreign-policy/.

Gilberto M.A. Rodrigues. "Brazil's Foreign Policy: A Regressive Path?" Aula Blog. September 06, 2017. https://aulablog.net/2017/09/06/brazils-foreign-policy-a-regressive-path/.

Esteban Actis. "La política exterior de Michel Temer." Foreign Affairs Latinoamérica. August 31, 2017. http://revistafal.com/la-politica-exterior-de-michel-temer/.

Ricardo Senra. "Após críticas internacionais, Temer defende proteção à Amazônia em discurso na ONU." BBC Brasil. September 19, 2017. http://www.bbc.com/portuguese/brasil-41318365.

Fernando Caulyt. ""Há contradições em novas diretrizes do Itamaraty", diz Celso Amorim." DW. June 14, 2016. http://www.dw.com/pt-br/h%C3%A1-contradi%C3%A7%C3%B5es-em-novas-diretrizes-do-itamaraty-diz-celso-amorim/a-19328437.

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No Longer Activa e Altiva: Brazil's Foreign Policy Stumbles under Temer

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By Maria Rodriguez-Dominguez, To download a PDF of this article, click here. Research Associate at the Council on Hemispheric Affairs Brazilian Diplomacy under Lula and Dilma Over a decade ago, the world witnessed the emergence of a relentless rising power.

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Brazil has shown it's commitment to tackle corruption more than the other BRICS, exerting soft power

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Brazil has shown it's commitment to tackle corruption more than the other BRICS, exerting soft power

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A federal court recently sentenced former President Lula to 12 years in prison for his involvement in the Operation Car Wash scandal, where bribes were accepted in exchange for government contracts.