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Wednesday, April 19, 2017

No Liberty without Justice

When G.W. Bush gave his second inaugural address, he chose the topic to be the Justice and Freedom conferred by the Constitution, and the lack thereof in other places:

"America's belief in human dignity will guide our policies. Yet rights must be more than the grudging concessions of dictators. They are secured by free dissent and the participation of the governed. In the long run, there is no justice without freedom, and there can be no human rights without human liberty."

The problem with Justice requiring Freedom, is that very often Freedom requires Justice too. How do you get to one without the other? Chicken and eggs.

So the short answer to Bret, who asks me "Is Liberty Erupting in Brazil?", is no, it is not, for we have no Justice.



When we last touched the subject here (see also the comments section), Brazil was rocked by the actions of a single judge (Sergio Moro) who started with a case of money laundering in a gas station a few miles from my home (rendering the name of the scandal: Car Wash operation), and end up with multi-billion corruption charges related to PETROBRAS (the Brazilian petroleum company) and our biggest Construction companies, siphoning off money to many politicians and parties.

Afterward, the President back then, Ms. Roussef, was impeached, and the Workers Party (PT) has been in free fall since the 2016 elections. The Vice-President, Michel Temer, did a U-turn on the leftist platform he was elected on, and a naive free-market-oriented external observer may well believe we are now in the right path: an addendum to the Constitution now forbids the growth of spending to exceed inflation rate for the next 20 years; several public programs have been reduced in size and scope (like public health system and public education); the pension system is being reformed as I type; and labor laws are being completely reviewed, with major protests from trade unions. 

Looks like the dream package for liberal reformers, so how come Liberty is not arriving?

The thing is, Brazil is not for amateurs. We have a long tradition of, as we say down here, doing things "para gringo ver" (to show up for foreigners). After all, our Elites were established by a foreign power (Portugal), and since then their business has been to show what they were asked to show - not necessarily doing it. It follows that we got our Independence blood free in the 1800's, but never our Liberty.


Mr. Temer's party (PMDB) has been in power - by giving their political force and support in Congress - since our redemocratization, in 1985, and many of its members were in power before that, during the Military Dictatorship (1964-1985), and yet even before that. It is an Establishment party. And the Establishment never gave us Liberty - why would it do that now?

I once pointed out to Bret that, though Mr. Moro was brave, the end game of his anti-corruption crusade would be our higher court, the analogue of SCOTUS, where eleven judges are appointed to by Presidents for life. Hey, what could go wrong?

I can't openly comment on the judges of this court - after all, this is not a free country - but let me say that it may have (very few) honest members (to the very limited extent of my knowledge -- legal disclaimer: for all purposes, I hereby declare I do not mean any of our judges could possibly be dishonest). Teori Zavascki, the judge assigned to oversee the Car Wash cases that touched politicians with special immunity from lower courts (which are all under present mandates), is one of those honest judges, in my limited opinion. Or he was.

Odebrecht - the biggest of the Brazilian contractors, a multi-billion company with international operations (did you notice they reformed the Miami airport, Erp?) - had its CEO (Mr. Marcelo Odebrecht) under "provisional" arrest since 2015, implicated in the Car Wash operation. It's been calculated they paid away more than one billion dollars in kickbacks throughout the last decade, for every political party and sub-relevant politician down here. In order to negotiate less prison time and fewer fines, he and dozens of executives at Odebrecht have agreed to a guilty plea, detailing all their corruption scheme and beneficiaries. Their confession was being hailed as the Mother of All Bombs (MOAB) over our political system.

On January 19, the week right before Judge Zavascki was to validate that mighty bomb, an accident happened. He took a private airplane with a rich friend, to visit the friend's beach mansion at Rio de Janeiro's coast, with a highly experienced pilot (who used to teach younger ones how to fly under coastal conditions) in a Hawker Beechcraft King Air C90 aircraft (that's for Skipper) - and, for apparently no reason known, the pilot (or the plane) failed 2 miles before the landing field, while on descent under light rain.

Accidents. They happen, sometimes more often than others. Since the Car Wash operation started, 5 high profile people with possible connections to it (as bribers or bribed) died flying private airplanes. A number of other people committed suicides, under not very clear conditions, to say the least. 

But I digress. Our Supreme Court could not stay with only 10 judges, even more so when they have such a high profile case to judge. So our President, Mr. Temer, got to place a judge by his finger there now. Mr. de Moraes, his Minister of Justice (since the impeachment a few months back) was the man. I can not comment much about him - after all, this is not a free country - but there is good evidence he, among other iffy stuff, had in his CV a few millions earned from dubious companies, and was the lawyer for one of Brazil's most dangerous mafias (the PCC). You guys get Gorsuch, we got Mr. de Moraes. He is now appointed by the President to be one of the judges who will decide on the future of the same President, and his own pals back in his days of politics.

Though Judge Zavascki's death delayed the Odebrecht MOAB for a few months - buying time for President Temer to pass his reforms, and to appoint other judges to other positions where they will lead cases that hang on Mr. Temer's head - that bomb finally came through.

As per Odebrecht's own account (and of his father, the previous CEO), they have been bribing and buying our political system for 30 years. Our 5 last Presidents - which are all since we got elections back - are implicated. As is our President now, which personally coordinated at least two meetings where he asked for Odebrecht's money (of course, in exchange for overpriced public contracts, so in the end *our* money) totalling many dozens of millions.

To be precise, Odebrecht also points his finger to 415 politicians, among them 8 present ministers, 13 governors, 36 senators (24 present ones), many dozens of congressmen (of which 39 are today in Congress, including its higher chairs). Though the Worker's Party, which had the Presidency for the last 13 years, had all its main heads involved, they are easily outnumbered by PMDB and PSDB - the main parties that granted Roussef's impeachment last year, and make up the present Government by Mr. Temer.

What's more, another legal case - aimed to cancel the election of Ms. Roussef and Mr. Temer in 2014, due to the illegal money by Odebrecht and other constructors - under our higher courts has been further stalled since Mr. Temer got the chair. He also got to indicate other judges for this court in the last few months, and though Odebrecht's bomb clearly spell out the illegal money they gave for that election, there is no sign the case will be judged anytime soon.


Though I could go on for a long while, I hope I already gave a hint of why I believe we have no Justice. And will have no Liberty, anytime soon.

But surely the economic gains by those reforms will be a step up, won't it?

I don't know. I can point out a number of holes in each of those reforms, all giving more power to our corrupt political/judiciary system, while taking away resources - some of which were well employed, notwithstanding our many problems - from the public system serving the poorest.

Will they lead to growth only for the upper class, as happened in the 70's, when our economy had two digits growth but the largest formation of favelas ever seen?

Anyway, I much doubt the very same people who made fortunes of our statism and cronyism, will be the ones to lead us, finally, to Liberty.

5 comments:

erp said...

Bravo Clovis -- what a tour de force!

After reading it three times, I have a slight glimmer of the extent of the problem, but even from that glimmer it seems clear that you are correct and the only way to solve it from the grassroots (bottom up). Reforms enacted by the perps is just window dressing.

BTW - what's the reference to the Miami airport???? I've never even been there, nor do I know anything about nor have any interest in construction companies foreign or domestic.

Clovis e Adri said...

Erp,

Last time I've been to Florida - and visited you - Miami airport was under construction work. The contractor was Odebrecht - I saw their signs and got curious.

Clovis e Adri said...

Well, I missed explaining why Odebrecht's presence in the USA has any relevance. The text was already too big.

Odebrecht is listed in the USA stocks and needs to comply with many American laws. They are being sued in the USA for their corrupt practices down here. The teeth of US justice (and Swiss too, where they have used their banking accounts to operate their schemes) was a big reason they surrendered to a plea deal.

I also believe that many of their operations was caught under American intelligence surveilance, and that a good part of the Car Wash operation owns a share of their effectiveness to American help, though much of it is hidden from public view.

Hey Skipper said...

From the OP:

The problem with Justice requiring Freedom, is that very often Freedom requires Justice too. How do you get to one without the other? Chicken and eggs.

That's a true riddle. For those of us lucky enough to live in places with decent amounts of Justice and Freedom, it took hundreds of years to get here.

Bret said...

I've read the post a couple of times now, and it leaves me with more questions than answers.

I get that corruption is a major problem at the top levels of government.

But what's it like for the typical person?

For example, let's say you wanted to open a small cafe. Is there also a great deal of corruption at that level? Are property rights secure enough that you have collateral and can secure loans? Is the police force too corrupt to protect the business? Are the protection rackets overwhelming?

I see that the Brazilian government spends less than 20% of GDP, including corruption. For comparison, US governments (at all levels) spend double that and in absolute terms about 10 times as much per person as Brazil. Our government isn't more corrupt than average, just very inefficient. Yet because we have reasonable property rights and at least some economic freedom left (though dwindling every decade), the inefficiency and corruption in the government doesn't necessarily prevent us from creating wealth.