Brazil Archive
How Do I Care Enough About Soccer to Have a World Cup Delimma?
Damn you, emerging markets!
Americans just hate soccer. It's boring. And I say this as someone who goes to 20+ baseball games a year. (When I'm actually in the US that is)
And yet somehow I am not only excited about the World Cup, I feel like a total nerd for coming-to-and-then-leaving South Africa just before the World Cup. WORSE: I am really having some angst about who to root for.
A few problems:
1. I really don't understand how the World Cup works or know what countries are still in contention.
2. I fall in love with every country and have been to too many countries this year.
3. Entrepreneurs from different countries keep asking in passing if I'm rooting for them. I don't know how to answer. (See also #1)
If you can help me with any of these, please leave it in the comments.
The Difference Between Slums and Favelas
This is a cross-post from TechCrunch. I haven't been doing that a lot lately on this blog, but this post was important to me. I've learned a lot about poverty and strength over the course of this book and this post deals with a lot of issues I've been thinking about a lot over the last few months. (All photos taken by me.)
On the eve of my last trip to Brazil, I was watching an episode of CSI: Miami where David Caruso was tracking a violent drug kingpin in Rio. Every time they mentioned the favelas—the infamous slums that crowd Rio’s hills—his partner said breathlessly, “The most dangerous part of the city.”
Sadly—unlike nearly everything else on the over-the-top CSI franchise—the depiction of the favelas wasn’t an exaggeration. It’s essentially a war zone between drug kingpins and often-corrupt police officers, and many life-long Rio residents have never entered one. One in five people living in Rio’s slums have lost a family member to the drug war—and nearly as many blame the police as they do the drug dealers, according to Janice Perlman’s research in the excellent book “Democratic Brazil Revisited.”
It was a staggering lesson in the different types of poverty in the emerging world. While it’s hard to match
the lack of infrastructure like water and sewage systems in an Indian slum, there’s little that can compare to the violence of a Rio favela. So it was understandable, as I entered a Rio favela a few weeks ago that my guides kept impressing on me that a year ago I couldn’t under any circumstances have come here. One year ago, a cab wouldn’t have taken me here. One year ago, no one would even deliver pizza here.
What’s changed in a year? Specifically, the city is doing something about the problem, embarking on a project of “pacification.” As it was explained to me, newly-trained, SWAT-style cops take each favela back, driving out the drug dealers, by any means necessary, in a recognition that the situation isn’t just a bad neighborhood, it’s an urban war-zone. Being new to the force, these police officers have a clean slate with the residents of the favela, and so are able to continue to protect it, keeping the peace. So far, eight favelas have been pacified. Residents I spoke with talked about the relief of being out from under the daily violence: Suddenly they can be a part of the city. But many are still wary. “This is the best I’ve seen the community in a long time, but I’m still scared,” said Nivea Mendes of the pacified favela Babilonia. “Very few people trust the government. They are just out for an election. I’m still skeptical.”
Put another way, even though they’re physically gone, the drug dealers still have power in these
neighborhoods—for now.
There’s another tactical problem with pacification that never would have occurred to me: Violence aside, the move basically shoved the richest people – the criminals - out of the favela, creating a need for a new livelihood for merchants and survival-level entrepreneurs (like the boy to your right and his family) in these neighborhoods. This is where technology is coming in.
For more than ten years a non-profit organization called CDI has been giving favela residents a different kind of freedom, setting up computer labs and offering training in everything from basic computer services to IT skills. CDI has built more than 800 community centers in thirteen countries giving more than 1.3 million people access to the Web, the bulk in Brazil and many for the first time. There’s an emphasis on sustainability—each community center charges for Web access and courses, but the rates are affordable for even the poorest Brazilians, as little as a couple of dollars per course. There’s also an emphasis on personal sustainability, with most people using the labs to learn marketable skills, write resumes and hunt for jobs. (Mendes runs the computer center in Babilonia; her picture is at the top of the post.)
The labs are run by someone in the community, and each class is required to take on a civic project using
technology and the Web. One favela had a problem with rats, so some teens taking the class video-taped the infestation, edited the footage together and showed it to the city government, who would normally never venture into the slum to check things out. The trash was cleaned up, the rats went away, and babies stopped getting sick from the bites and scratches. We talk about the Internet changing the world a lot in Silicon Valley, but it has changed life for a lot of these people.
The exciting thing is the correlation with entrepreneurship and these labs. It’s not just the skills they learn, it’s a sense of empowerment that comes from technology. When I first started traveling for this book, I expected to find tons of entrepreneurs who’d grown up in slums, but in most countries that hasn’t been the case. Sure, there are plenty of examples of “entrepreneurship” in the purest subsistence-level form—traders, hustlers, drivers, tire shops and the like. But residents have told me the day-to-day struggle of life is so overwhelming, that the idea of starting a high-growth company is tantamount to colonizing the moon.
In Brazil, though, I’ve met several entrepreneurs who came from slums, two of which I wrote about in this post and another in this one. Like great entrepreneurs anywhere, these guys are the exceptions. But clearly, there is something about even the hardest life in Brazil that still allows people to dream big. And, increasingly, technology and companies like CDI play a big role in this. Each of these entrepreneurs trace back the early days of his company to tinkering and, essentially, hacking; one with computers, one with planes and advertising and one with bureaucracy. Computers, mobile and the Internet are the best canvases to hack and allow that hacking to have a bigger impact.
I’ve written about this kind of computer outreach into slums in India as well with NIIT’s Hole-in-the-Wall program and the proliferation of mobile phones and services, and I’ve also written about the serious investment Rwanda is making in bringing technology to its poorest citizens. But a lot of people are dubious about how much good this does people who, on the surface, have bigger problems. I recently finished reading a book called “In Spite of the Gods: The Rise of Modern India,” that rather sarcastically mocked the idea that emerging markets should invest in technology in poor areas when there are more immediate needs like food, water and employment.
The author, Edward Luce, has lived in India and admittedly spent far more time there than I have. But we’ve
clearly seen different countries. The last time I was in India I traveled to several villages and slums with SMSOne, a mobile news company I wrote about back in November 2009. In a half-urban slum outside of Pune, I met a woman who sold vegetables on a darkened street near a dirty river. (Pictured at her home to your left.) On the eve of SMSOne’s launch in that neighborhood, she was so depressed about her economic situation she poisoned herself. SMSOne’s mobile reporter heard about it and rushed her near-lifeless body to the hospital—not that either of them could afford any care.
His first 140-character story was about her situation and the community—usually mired in their own day-to-day struggle—rallied around her, paying her medical bills, convincing her that her life mattered. She said, through a translator with babies crying in the background of her one-room home, that things are better now.
The community has dozens of stories like this: The woman who had blood cancer and needed donors, the little girl born with a hole in her heart and her parents couldn’t afford surgery (pictured to the right), and the community that all pitched in once the read these stories in 140-character SMS bursts. I went from the tire shop to the local temple to the winding
streets of the neighborhood with the SMSOne reporter hearing these stories over-and-over again from the people who live there. The people who before SMSOne didn’t feel like a true community despite sharing the same crowded patch of India. It was striking how similar each story started to become, given how dramatic each was on its own.
Frankly, Luce’s attitude is why rich people shouldn’t be the ones making the decisions about what poor people need. It’s haughty to assume technology is the domain of only the privileged or that it is even used the same way by people living in dramatically different circumstances. The Internet gives people a voice and when you’re rich maybe you take that for granted. But in the slums of Brazil and India, I’ve literally seen it save lives.
I'm Back. And I'm Leaving Again.
Hey everyone. I am back from Rio. I was totally MIA while I was there, again, because of threats from Brazil. So I've been posting stuff to TechCrunch about my trip and FRANTICALLY trying to get a chunk of the book drafted before I leave again....Sunday.
First off, Rio was simply wonderful. I stayed on the beach in Leblon and found if i could run jump in the ocean for even 10 minutes before or in the middle of a day of meetings I felt completely reinvigorated. I also loved wandering around the neighborhood (during the DAY of course.) Aside from that, I met some cool companies and had some really life-changing experiences. I flew and then trucked out to the basin of the Amazon where BS Construtora is building a 1,600 house village. (More on that here.) And spent a day exploring the slums around Brasilia with an entrepreneur who grew up amid drug runners and now is starting and Internet company in Sao Paulo. Then flew back to Rio and spent some time in a pacified favela with a company that's spent a decade building computer labs in the most hard-core slums. What I don't write about on TechCrunch in the next week will be in the book. Oh, I also met a couple who own a trout farm. They said I could come work on it if this whole writing thing doesn't work out. Mr. Lacy says he's game.
One of the cutest things ever happened in the favela, by the way. A little girl-- dressed like an Indian for "indigenous people's day"-- just came up and grabbed my hand like we were friends. (See photo above.) Kids are always fascinated by foreigners. I've had them giggle, point, show me around, shyly ask me where I'm from, but none has just come up and hold my hand like we'd known each other for years. The level of trust from a child in a community that can't yet trust the city's pacification efforts showed how much things could change in a generation if the city stays committed to this. And thanks to the pressure from the World Cup and the Olympics coming to Rio, there's reason to be optimistic. I was so caught off guard and charmed and wanted to scoop her up and take her home. Wouldn't you?
Second off, the book. I've been talking with my publishers about titles and cover art so it's nice evidence I will actually have something tangible to show for all this work. I am somehow, amazingly, ahead of schedule. I spent the last week finishing drafting the section on India, and I'm drafting the section on Brazil now, hoping to finish it before I go. That leaves only Indonesia, Rwanda (which is half written) and the Epilogue and a TON of revising before my August 1 deadline. I can't actually believe I'm going to make it. The publishers do not want it over 70,000 words so I am really pruning and pruning each chapter. A lot of great stories are getting cut out, but I do think it's making the book stronger in the end. You will quite literally get a world of entrepreneurship in less than 300 pages.
Third off, I'm leaving again. For a long time. Five weeks. The longest trip yet. I have no idea what I was thinking, but now, barely recovered from the last trip I'm looking at this schedule and wondering if I'm going to make it. Fortunately, I'm equally as excited about it. Adrenaline don't fail me now... I am going to Cape Town, South Africa first where I'm speaking at the Net Prophets conference. Then, I head to Indonesia where I'll report around for two weeks and hopefully find some cool stuff. (Mr. Lacy is meeting me for the second week in Indonesia.) Then, I head to China for the last time. I've been to China more than any other country and somehow that section of the book has the most holes because so much has been off the record. I'll be a bit all over the place, including some smaller cities. Smaller being the operative word-- nothing is actually small in China.
Fourth off, reading list update. I am reading Nelson Mandela's autobiography now which is pretty great and I plan to finish before my flight. Taking with me "A History of South Africa," "A History of Modern Indonesia," "Asian Godfathers" and "China: Fragile Superpower." Amazingly I'll only have eight books left in my INSANE stack of reading once I knock those out. I have so much stuff about so many places coursing through my head I am forgetting basic things like, phone numbers and names.
Fifth off, packing. I haven't yet done five weeks out of carry-on luggage. There's going to be a lot of sink-washing going on...
My Favorite Books about Emerging Markets
I find the most helpful thing to do while writing a book is to read lots of books. Not only do you learn a lot about whatever you are reading about, but you see what works and doesn't work when it comes to voice, structure, tone and other dorky things authors obsess about.
Here's my current pile of reading-- the ones on the left are still to be read, the ones on the right are done. Actually both piles have gotten higher since I took that photo, and the pile on the right is just a bit taller now. But that won't last. Like Sisyphus, I stupidly keep buying books once the to-read pile starts to look remotely manageable.
I usually refrain from writing about books, because it's not much of a review if you only write nice things, and as an author its hard for me to write bad things about something someone worked really hard on. Just getting a book DONE can feel like a Herculean task and no book is going to be perfect for every reader. But someone asked me for a list of my favorites so here you go.
1. The Post-American World by Fareed Zakaria. It's really hard to write one compelling book about large, disparate chunks of the world (trust me on this) and Zakaria is one of the few that pulls it off. He's incredibly gifted at pulling together lots of strands to make one compelling central argument. My book mostly starts with the assumption that emerging markets are where the most economic growth is going to take place in the next few decades, but Zakaria's book explains why and what America's place in that world will be.
This is my only quibble: Indian nationals are incredibly patriotic and Zakaria is no different. There was a subtle shift in tone when he wrote about India and I felt like-- on the margins-- Zakaria cut India more slack on certain things. For instance, he praised the legal system put in place by the Brits. It may have been set up well back in the colonial days, but no one in India would tell you the legal system is anything to brag about today. Narayana Murthy, the co-founder of Infosys, told me that it would take 320 years to try all of the pending and backlogged cases in the Indian courts. "Can you imagine?" Murthy said laughing at the absurdity.
Still, this is hands-down the best overall book I've read on globalization and I highly recommend it.
2. India after Gandhi: The History of the World's Largest Democracy by Ramachandra Guha. I wish there was a book this good on the history of every country I'm visiting. It's whopper at some 800 pages, but Guha, a historian, takes you on an unbiased, thoroughly researched and riveting journey through India's first fifty years or so of independence. I came away understanding modern India a lot better and wondering why an over-the-top biopic had never been made about Indira Gandhi.
3. Democratic Brazil Revisited. I wish there was a book this good on politics like this for every country I'm visiting. This book is a collection of essays by academics that break down every aspect of Brazil's democracy-- from education to violence to economic and social policy. It's the update to an earlier edition that predicted some choppy waters for the Lula administration. Surprisingly, when they revisited the topic four years later, the researchers found that overall Brazil's democracy had outperformed their expectations. For what's essentially a text book, it's also amazingly readable.
4. Factory Girls: From Village to City in a Changing China by Leslie T. Chang. I mentioned this one in my last post but it bears mentioning again because it is one of the best books I've read over the last year or so. It actually makes me a little angry at how good it is. Factories in China are one of those topics everyone feels entitled to have an opinion on and it's usually: They treat workers like crap and make low quality stuff. What Chang uncovered by living among the girls powering China's factory boom was quite different. It was the story of empowered, ambitious young women taking low level opportunities and creating whole careers out of them. It tells you so much about the culture of modern China and is engrossingly written. As a writer, Chang doesn't get carried away with the sound of her own voice. She lets the stories of the girls unfold simply and beautifully.
There's not much info on Chang online. She doesn't appear to have written another book and I can't tell if she's even still a reporter. I hope she is. I also hope this book made her a lot of money because she deserves every penny.
5. We Wish to Inform You That Tomorrow We Will Be Killed With our Families by Philip Gourevitch. The world's longest and most confusing title, I know, but this is the definitive book on the Rwandan genocide. It's heartbreaking, eye-opening and frankly, will make anyone in the world with a soul embarrassed at how much we let Rwanda down some 15 years ago. Gourevitch did a follow up piece last year in the New Yorker about how Rwanda had rebuilt itself, that only barely scratched the surface of the strength and almost super-human forgiveness of the Rwandan people. Not only do I highly recommend this book, I highly recommend that anyone travel to Rwanda to see this amazing country for themselves.
Oh Great, Another Mob
As most of you know I was supposed to be Brazil right now meeting with start-ups and writing about them for TechCrunch and my book on entrepreneurs in emerging markets. Loads of South American entrepreneurs I've never met were excited about some Valley coverage and whole dinners and parties were arranged so I could meet as many people as possible. I'd planned this trip for a while, and even spent several months learning Portuguese. I was pumped.
Then, the Brazilian consulates in the United States installed a new computer system, and hundreds of visas that had been approved and promised got stalled for weeks, leaving hundreds of Americans looking to travel to Brazil to spend money and do deals with little choice but rearranging or canceling their trips. I rearranged mine first-- to great hassle and expense-- then when the visa didn't come by the second promised date, I had to cancel the trip.
Since I'd announced on TechCrunch that I was coming to Brazil, I wrote a post explaining why I'd canceled my trip. I criticized the computer "upgrade"-- just as I'd criticize any company that would bring its business to a halt in the name of improvement. And, let's face it, it's not like I haven't spilled tons of ink criticising the US visa system.
I got a ton of sweet personal emails and notes from people saying they were disappointed and hoped I'd come another time. Indeed, I said at the end of the post, I was going to come later in the year, and had started re-arranging my schedule to come in December.
And then a bunch of people went nuts.
I tend to have a knack for unintentionally inciting rabid mobs of anonymous commenters who make all kinds of threats and insults while other people wonder what just happened. But these things blow over, so the worst seemed to be that Arrington had to waste a day deleting disturbing hate speech in the comments and Paul Carr got fodder for his weekly column.
But apparently some of these people were apparently a special kind of crazy. They started targeting my husband. Someone even left a comment on his personal blog on a post about our wedding anniversary. This particular wacko seems to think that his heart-felt post about our married life was a sophisticated attempt at bolstering the "lie" that my visa was held up. I suppose the hundreds of other Americans who couldn't go to Brazil were also part of, um, the world's most boring conspiracy theory? Yeah, I spent thousands of dollars and wasted countless hours for months planning a trip that I never wanted to take all along. How'd you figure it out!?
I've been attacked in Austin, Israel, China and Africa for seemingly innocuous things I've done or written, but no one has ever gone after my husband. Now I'm in a position where he's incensed and scared for my safety and trying to convince me not to travel to Brazil at all, to cut the country out of my book completely. And if you've read some of the comments-- that's not necessarily an over-reaction.
Honestly, what is wrong with people? No one at TechCrunch has stood up for entrepreneurs in emerging markets and criticized the US visa system more than I have. Not only that, but I don't know any US business reporter who spends thousand of dollars of his or her own money to travel to other countries and give amazing entrepreneurs the exposure they deserve. TechCrunch is hardly the end-all-be-all, but a lot of entrepreneurs have wound up getting customers and funding from being written about there.
This whole thing worries me that maybe the premise for this new book is wrong. Not the core premise-- that the greatest opportunity to build the next wave of multi-billion companies is outside the US. I still believe that opportunity is there. And I've traveled enough to see that the talent is there. But when people's families are threatened over a post about burocratic ineptitude, a lot of potential investors, business partners or acquirers will decide maybe that opportunity just isn't worth it. There's a real risk that that opportunity never gets fully realized and that's bad for everyone.
Will I still go to Brazil in December? I don't know. I want to. I have my visa now. But would you go to a country where people were threatening to spit in your face and rape you as soon as you arrive in exchange for, um, you wanting to help their businesses?
For obvious reasons, comments on this post are closed. Have the cojones to send me an email if you have something to say to me about this topic.

New Book
An unforgettable portrait of the emerging world's entrepreneurial dynamos Brilliant, Crazy, Cocky is the story about that top 1% of people who do more to change their worlds through greed and ambition than politicians, NGOs and nonprofits ever can. This new breed of self-starter is taking local turmoil and turning it into opportunities, making millions, creating thousands of jobs and changing the face of modern entrepreneurship at the same time. To tell this story, Lacy spent forty weeks traveling through Asia, South America and Africa hunting down the most impressive up-and-comers the developed world has never heard of....yet.
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