The New Face of Russia’s Relations with Brazil

Defense Minister of Brazil, Celso Amorim, receives his counterpart from Russia, Sergei Shoigu, during bilateral meeting in Brasilia.

Defense Minister of Brazil, Celso Amorim (L), receives his counterpart from Russia, Sergei Shoigu, to bilateral meeting at the Defense Ministry in Brasilia, capital of Brazil, on October 16, 2013. Shoigu’s visit included an attempt to win a $4 billion deal to supply 18 fighter jets.

Journal of Political Risk, Vol. 2, No. 5, May 2014.

By Matthew Michaelides

Abstract

Bilateral trade, high level personal communication, and military-technical relations between Russia and Brazil have all grown significantly over the past decade. Recent weapons sales to Brazil include a $150 million contract for MI-35 helicopters in 2009 and a 2012 deal for seven Ka-62 helicopters. Moreover, the Russian defense ministry has indicated its intention to increase Russian military capacity in Brazil and Latin America more broadly. This paper examines the causes for the increasing depth of Russian-Brazilian military-technical relations and concludes that informal patronage politics play an essential role in understanding Russian actions. A detailed analysis of contemporary Russian-Brazilian relations and existing theoretical perspectives is provided, as well as a thorough examination of recent Russian arms and equipment sales from the informal patronage politics perspective.

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Protests in Latin America: impact on investment, the economy, and political stability

Latin-America-GNI-PPP-PC-GDP-PC-and-Inflation-Argentina-Brazil-Chile-Costa-Rica-VenezuelaJournal of Political Risk, vol. 1, no. 3, July 2013.

By Evodio Kaltenecker

Over the last twelve months, it would seem that the habitants of Latin America and the Caribbean are particularly adept at protesting against their leaders and institutions, especially in Brazil, Chile and Costa Rica. Over a one-year period, Brazilian, Chilean and Costa Rican government officers witnessed hundreds of thousands of citizens protesting issues such as crime, corruption, and the lack of low-cost quality public services.

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Death of Hugo Chavez

With the death of President Hugo Chavez of Venezuela today, expect increased political stability in Latin America. President Chavez was an activist in international politics, encouraging ideological conflict of the anti-Western and anti-market variety. He used his country’s oil wealth to magnify his voice and achieve these ends. Investments in Venezuela and Latin America will be safer without Chavez.

Concerns that his likely successor, Mr. Maduro, will be more radical (Wall Street Journal) are almost certainly overblown. Mr. Maduro’s comments on foreign influence in the country, and his expulsion of two US diplomats, are likely meant to solidify political support among Chavez supporters. This is a short-term political strategy on the part of Mr. Maduro, without long-term effect on the Venezuelan investment environment.