Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 68

Postcard from Sao Paulo, Brazil

The most tempting way for a visitor to describe a city or country is to examine its contradictions. While my inclination is to avoid this predictable approach, it’s unavoidable in Sao Paulo and Brazil, where almost any generalisation becomes a paradox.

The road traffic is chaotic and crowded, yet there is a fantastic underground metro that is modern, cheap and quick, and it connects with a vast bus network often with dedicated lanes. Taxis are a slow alternative. Up above, there are helipads everywhere, at last count about 450 compared with only three on Manhattan Island. Even some modest residential apartments have their own helipad, and there are more air traffic movements in Sao Paulo than any other city in the world.

So is transport a disaster in Sao Paulo? Depends how you go.

In this crazy city with up to 20 million inhabitants during the day and a bad reputation for street crime, there’s a strange version of 'she’ll be right, mate'. Brazil was awarded the World Cup rights in 2007, and it’s as if they spent the first few years celebrating the coming party without really planning for it. It was expected that this city’s largest stadium, the Morumbi, with capacity for 67,000 people (it was once 120,000 before the seats went in) would host the opening game. Then at the end of 2010, FIFA rejected the stadium due to lack of guarantees about improvements. It was decided to build a new stadium for the local team, Corinthians, and this is the one currently being used. It looks great on television and the actual visiting experience is fine, but it does have a bit of an unfinished feel about it. Completion was close run with a few deaths along the way.

Here's a grass roots example. Our friends have operated a factory which has manufactured equipment for the food industry for 30 years. Recent years have been tough, and they were considering closing, having reduced staff from 40 to 10. Then in February this year, they received a massive order from a major Brazilian company for delivery of equipment before and during the World Cup. They would be severely penalised if they missed the deadline. It required almost around-the-clock work and an increase in employment to around 50, and they have had a frantic few months barely able to go home before starting again. They are obviously grateful for the job but so frustrated that it was left to the last minute.

Food in supermarkets is relatively cheap, with meat half Sydney prices and beer 50 cents a can, and there's great coffee in a cafe for $1.20. But restaurant prices for anything medium level and above are eye-popping. A good local restaurant near where we are staying has a dish of five prawns for $130. DOM, the restaurant of star chef Alex Atala and ranked 4th in the world in 2012 on the San Pellegrino World's 50 Best Restaurants list, costs at least $250 a head without alcohol. Most places have an additional cover charge and service fee. Let's not bring these to Australia. 

It’s another contradiction. Away from the few streets that make up the main financial district, the pavements and infrastructure like electric wiring are in a worse condition than in a small Australian country town. It would be an embarrassment in an Australian city, and our hosts remind us that Brazil is still a third world country. Yet on a street where a pram can disappear in a pothole sits a restaurant with a fixed price menu of $80 a head, valet parking and no room to move inside.

Brazilians are so welcoming and eager to help that the longer we stay here, the less concerned we become about our personal safety. The police presence is intense, and the wallet has returned to the back pocket as we stroll around at night. But lest we think we’re home, the Australian Government sends regular reminders to anyone registered on its Smart Traveller service, and the latest says:

“We advise you to exercise a high degree of caution in Brazil because of the high levels of serious crime. The incidence of violent crime, including muggings, armed robbery, home invasions, kidnapping (especially express kidnappings) and sexual assault, is significant. Carjacking is also common, especially in major cities. If you are attacked or robbed, do not resist. Thieves are often armed and you could be seriously injured or killed. Avoid wearing jewellery and expensive watches … Dress down and carry minimal cash and credit cards.”

Football is a serious matter, but even I doubt it’s worth getting killed for.  

Two hours before every Brazil game, there’s a mad rush on roads and public transport as work closes and people try to reach home or meet in their favourite café. At kick off, the activity on the street is much quieter, but at each Brazilian goal, there is a cacophony of horns and trumpets as people rush to their balconies to share the joy.

Brazil’s Neymar is the undoubted star, and his agent has made big in the build up to the games. His image is everywhere, and the fact he is playing superbly and scoring goals makes him bigger than Beckham, Messi or Ronaldo in this part of the world. One Brazilian even told me a story which I’d heard years ago about Ronaldo – that if he had a tattoo of Jesus on his chest, it would do more for the profile of Jesus than Neymar.

Sitting in a lounge chair in Australia, no doubt the impression is gained that the host cities are going World Cup mad. I have been in Sao Paulo for the last week, and other than when Brazil is playing, it would be easy to think the games are on in another country. It’s not only the predictable ‘life goes on’ or ‘not everyone is fascinated by football’ reasons, but Sao Paulo is not a tourist town. It’s not like London, Paris or Munich. It’s as if the city overwhelms the event just as it overwhelms everything else. There is not even much street decoration, other than in the centre of town or along the main Avenue Paulista.

This is a financial, business and industrial town, with no major river running through it and the beaches are an hour away. There is little in the way of soaring architecture or old buildings, as the Portuguese only established the colony in around 1600 and it was relatively poor for a couple of hundred years. It simply does not have anything like the history of a major European city. Sure, the food is great, there are plenty of museums and there’s a healthy feeling of activity, but that’s Sao Paulo rather than the World Cup. It would be hard to recommend Sao Paulo to a tourist with a world of alternatives a flight away.

No doubt other cities, especially party town Rio and smaller places like Manaus and Recife, feel the impact of hundreds of thousands of tourists, and to date, the country has decided to be a great host and enjoy the sunny weather and excellent football. The protests have lost momentum and are unable to motivate people who have just celebrated the latest Neymar goal. A World Cup is always a time for celebration when the host nation does well, and it will build over the next two weeks, especially if Brazil does well.

But I can’t help thinking that as every game from now on is sudden death, it’s a party where the music can suddenly quieten and the beer flow reduce to a trickle. If Brazil is eliminated, there will be a lot more ‘business as usual’ than people expect. Of course, Brazilians will watch the games, they love football and they want the world to have a good time, but the streets, businesses and factories won’t close, and their minds will turn to that other question which is currently in the back of their minds: what happens when everyone goes home?

My friends in business are surprisingly pessimistic, and after the party is over, they wonder what will happen to the spanking new stadiums and how the overdrawn credit card will be repaid. It’s like they’ve been given an dose of happy gas which will wear off with little more than a decent afterglow and a large dental bill.

We visitors will have fantastic memories of Iguazu Falls, Machu Picchu, Rio de Janiero, Sao Paulo and Brasilia, and the standard of football has been wonderful, but every Brazilian we speak to laments on the terrible public education and health system and poor infrastructure, and asks how many hospitals could have been built instead of a stadium in Manaus which will soon be overgrown by weeds.

 


 

Leave a Comment:

RELATED ARTICLES

Postcard from Brazil

banner

Most viewed in recent weeks

Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

What to expect from the Australian property market in 2025

The housing market was subdued in 2024, and pessimism abounds as we start the new year. 2025 is likely to be a tale of two halves, with interest rate cuts fuelling a resurgence in buyer demand in the second half of the year.

Howard Marks warns of market froth

The renowned investor has penned his first investor letter for 2025 and it’s a ripper. He runs through what bubbles are, which ones he’s experienced, and whether today’s markets qualify as the third major bubble of this century.

The perfect portfolio for the next decade

This examines the performance of key asset classes and sub-sectors in 2024 and over longer timeframes, and the lessons that can be drawn for constructing an investment portfolio for the next decade.

9 lessons from 2024

Key lessons include expensive stocks can always get more expensive, Bitcoin is our tulip mania, follow the smart money, the young are coming with pitchforks on housing, and the importance of staying invested.

The 20 most popular articles of 2024

Check out the most-read Firstlinks articles from 2024. From '16 ASX stocks to buy and hold forever', to 'The best strategy to build income for life', and 'Where baby boomer wealth will end up', there's something for all.

Latest Updates

Investment strategies

The perfect portfolio for the next decade

This examines the performance of key asset classes and sub-sectors in 2024 and over longer timeframes, and the lessons that can be drawn for constructing an investment portfolio for the next decade.

Shares

The case for and against US stock market exceptionalism

The outlook for equities in 2025 has been dominated by one question: will the US market's supremacy continue? Whichever side of the debate you sit on, you should challenge yourself by considering the alternative.

Taxation

Negative gearing: is it a tax concession?

Negative gearing allows investors to deduct rental property expenses, including interest, from taxable income, but its tax concession status is debatable. The real issue lies in the favorable tax treatment of capital gains. 

Investing

How can you not be bullish the US?

Trump's election has turbocharged US equities, but can that outperformance continue? Expensive valuations, rising bond yields, and a potential narrowing of EPS growth versus the rest of the world, are risks.

Planning

Navigating broken relationships and untangling assets

Untangling assets after a broken relationship can be daunting. But approaching the situation fully informed, in good health and with open communication can make the process more manageable and less costly.

Beware the bond vigilantes in Australia

Unlike their peers in the US and UK, policy makers in Australia haven't faced a bond market rebellion in recent times. This could change if current levels of issuance at the state and territory level continue.

Retirement

What you need to know about retirement village contracts

Retirement village contracts often require significant upfront payments, with residents losing control over their money. While they may offer a '100% share in capital gain', it's important to look at the numbers before committing.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.