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Monthly Newsletter
May 2011

Save the date Independence Day Celebration

Upcoming AmSoc events
This year we’ll be celebrating United the traditional hamburgers and hot dogs,
May 5th - 2011 Annual General Meeting States Independence Day on Saturday and we’ll continue this tradition at the
May 14th - AMSOC Team Tennis Tournament July 2nd. It will be especially unique as the Consulate.
July 2nd - 4th of July celebration event will be co-hosted by the American We’ll have prizes for the kids’ games
Aug 27th - AmSoc Vida Jovem Benefit Consulate on their grounds. The event will and who knows maybe even an adult game
take place in or two. Who
the sporting can forget
area and the famous,
The Economy Issue reservations
are a MUST
old egg toss!
Come and
for this find out what
Obama visit “Members
O n l y ”
planned for

event due you and your

Page 4: The key talking points
and agreements during Obama’s to security family!
recent visit here in Brazil. reasons. So, Remember,
check your this is a
calendars Members
and set the Only event,
date aside. so invite
Brazilian economics 101 We’ll have your friends
more specific to JOIN
Page 6: A quick historical look at reservation instructions in next month’s AMSOC and come to one of our most
Brazil’s economic achievements newsletter. loved and most traditional annual events.
and current challenges. This is an event that has something
for everyone, great games for the kids See you all at our Independence Day
and adults, food and drinks for everyone. Celebration. And do not forget to look
As in years past each family will bring for more details in the next edition of the
a salad or fantastic dessert to accompany Forum.
Page 10: Read how multinationals
are unearthing new opportunities
at the bottom of the economic
pyramid in Brazil.
Time for membership renewal!
It’s that time of year again and we Helping Hands membership is not for

Our Mission
value your continued support. The year you this year, then Patron, Supporter and
ahead is filled with many social, athletic, Junior memberships offer great value
cultural and philanthropic events that and the benefits of American Society
simply wouldn’t be the same without membership.
The American Society of São Paulo you. All levels of membership allow you to
promotes friendship by organizing Please consider the Helping Hands receive the monthly Forum Newsletter and
social, cultural and athletic events for Membership which devotes 50% of your participate in AMSOC activities (Dinners,
its diverse membership; encourages annual membership fee of R$ 700.00 Easter Party, 4th of July Celebration, etc.)
integration with the Brazilian society; to the orphanages that the American Renewals are due by June 11!
and supports the American traditions Society supports. We were excited to
of education, philanthropy and see that last year many of you became The levels of membership and dues are:
volunteerism. Helping Hands members! If you feel
(continued on page 5)
Charity Raffle
The President’s Corner Many remember our fun event in
October last year when Tiffany & Co.
It was a in our Social Committee and has hosted the American Society for “Petals
beautiful day on organized many events, including for a Cause”. All the money collected
Saturday April 9 doing the flower decorations. Mark (R$16,000) went directly to the
for Volunteer’s has been on the Board many years as Community Action Committee (CAC).
Day at the Vice President, Secretary, and leader Two pieces were not picked and thus
US Consulate of the Community Action Committee. donated to the American Society. The
facility. We had A special thanks to you both. value of these two prizes (a watch and
a total of 80 Today our membership totals 388, a silver necklace) is R$9000.
By Joe Sherman, AmSoc president
children from which seems very low to me based on This is your chance to win one of
the Projeto Sol and Helen Drexel our traditional events we offer and the these prizes by buying some raffle
orphanages who were taking part size of São Paulo. In the good old days tickets at R$30. All proceeds go to
in this unique day. It was a very our membership was about 700. our charitable projects. More prizes
successful event as there were a I was working at Cargill at the time include a weekend at the Sofitel Beach
total of 55 volunteers between the and there was probably 10 ex-patriot Resort in Guauja, amongst others
American Society and Consulate! The family’s, and today there is zero. The The draw will take place at the Annual
children enjoyed swimming, soccer, times have changed, the ex-patriot General Meeting on May 5th. Tickets
football, basketball, tennis, and an community is much smaller, but there can be bought at the AmSoc office as
American style cookout with hot dogs must be potential members out there. well as through many members of the
and hamburgers. A special thanks to I ask that you spread the word on the Board and the CAC committee..
Tom Kelly and his Consulate team American Society, tell them what we Make a difference by supporting the
and Eileen Tasso and the Community do: Little League events, 4th of July, children’s organizations of CAC.
Action Committee. Thanksgiving, Eggnog, happy hours,
Our 4th of July celebration will also charity sponsorships, adult sports,
be at Consulate facility which is very etc. One of our objectives for the next
spacious and I am sure you will all year is to dramatically increase our
enjoy the planned activities. We have membership.
many events planned this year and the This month we have our Annual
Board is open to suggestions on new General Meeting on the 5th at the
ideas. If you have an idea of what Consul General’s home. We will
you would like to see AmSoc offer review the accomplishments of the
its membership please let me know, past year and elect our officers and Board members.
This month we have two Board
members that are retiring from the I hope to see many of you there.
Board, Aline Ricardo and Mark
Abrams. Aline has been involved Abraços, Joe

Forum is published monthly, with Lynn Cordeiro, editor and layout

the exception of January and July, by Ernest White II, staff writer
About Forum

Forum is printed by EGB.


Views expressed in Forum do

not necessarily reflect those of
The American Society of São Paulo the American Society board of
governors, members, or staff.
Rua da Paz, 1431 04713-001 São Paulo, SP Forum reserves the right to edit
Tel: (11) 5182-2074 Fax: (11) 5182-9155 content for brevity and/or clarity.

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of São Paulo

Welcome to our new members

Please welcome the following New Members who joined us in March 2011. We are very grateful for their support, and that
of all our members! See you at our next cocktail Party if not sooner!!! WELCOME TO THE AMERICAN SOCIETY OF
SÃO PAULO! Your Membership Committee


Manuela A. CATTANEO & Alejo F. SASSO Family Patron Argentinian JP Morgan

Lisa PANAS Single Patron American InfoCast

Paul Smith Single Brazilian Smith Limo Service

Frank & Carol PIERCE Family American Lear Corporation

Dominique & Luiz FARIA Family Patron American

New member profile

Frank & Carol Pierce

Origin, time here:

We are both Americans and grew up in the Metro Detroit area. I arrived in São Paulo in September and Carol in
November. We both have visited Brazil many times over the past 25 years so we’re familiar with many customs and
the São Paulo area (as visitors).

Why São Paulo:

Having grown up professionally in the automotive industry, Brazil has been a travel destination since the mid-’80s. I
worked with companies based in Brazil for many years and had the opportunity to study the language at the University of Detroit. After spending the past three
years living and working in Shanghai, China, the opportunity to fulfill our dream of some time living in Brazil came to fruition last September.

Best things so far:

The big city life has met all expectations. I mean, where else can you eat at places like Figueira, Jardineira and Terraco Italia and walk the paths in Ibirapuera Park
all in one weekend? We love the streets in Jardins, the shops in Moema and the green grass in the park. We also love finding new restaurants in Embu for those
quiet Saturday afternoon lunches.

Early frustrations:
Buying anything! While in Shanghai we said we would never again shop at Carrefour, and here we are in São Paulo shopping at Carrefour. Finding simple essentials
like large Kleenex boxes and toasters for under $150 seems impossible. While Shanghai is probably the most expat-friendly destination in the world, adjusting to
the lack of “American-style” services has been a difficult adjustment. In Shanghai, housing is designed specifically to western tastes (large) and is plentiful, and it’s
quite obvious who speaks and who doesn’t speak the language. In São Paulo, nobody wants to rent their apartments and few locals like to practice their English.

Have ‘saudade’ for anything back home:

Our cars. Our favorite restaurants. Our children and granddaughter. Our parents and family. Saturdays at Costco. Sundays at Barnes & Noble. Proximity to Las
Vegas and Cabo San Lucas. On the other hand, we’re only an hour from the nearest beach and 90 minutes from many friends in the interior of SP.

Progress with Portuguese: Already knowing the language has been a blessing for me (Frank); however, having been in and out of Brazil during the past four
months has made it difficult for Carol to get started with lessons - but it’s certainly on the long list of “to-dos.”

Favorite place to hang out: Embu on Saturday. Camburi beach when it’s sunny. Our balcony at the apartment in Jardins after work.

2011 Forum 3
Obama in Brazil – Economically Sound
By Ernest White II, staff writer

Expectations ran high as United with Ms. Rousseff. gasoline, and the difficulty of American
States president Barack Obama came The meeting between the two firms to do business in the world’s
to Brazil with his family on March presidents—both of whom lauded seventh-largest economy.
19th for a quick, two-day tour of the for breaking race and gender barriers But the overall picture seemed rosy, as
inner sanctums of Brasília and the in their countries—generated a lot Ms. Rousseff and Mr. Obama appeared
inner reaches of Rio de Janeiro. Giving of buzz. Not only because of the to get on well. A good thing, considering
a short, feel-good speech to an amped Brazilian economic boom, but also both parties’ interest in maintaining
crowd inside the Marvelous City’s because this was an opportunity for good economic relations. Last year
glittering Teatro Municipal, Mr. Obama the American head of state to warm alone the United States exported $35.4
turned on some of that radiance he’s relations with Brasília, after Ms. billion in goods to Brazil according
known for when on the stump. Rousseff’s predecessor, Luiz Inácio to Bloomberg, with civilian aircraft,
And as organic chemicals,
e x p e c t e d , and computer
Mr. Obama’s equipment leading
adventures among the top
in Brazil export categories.
overshadowed In addition
his stays in the to exporting
other stops on his commercial and
Latin American private jets, the
Tour, Chile and U.S. hopes to land
El Salvador, a multi-billion
as he met with dollar contract to
his Brazilian help modernize
counterpart, the Brazilian air
Dilma Rousseff, force with F-18
to discuss fighters, selling
energy, trade, the would-be deal
and transport. as a “technology
Newspapers transfer package” in
and pundits order to entice Ms.
questioned if Rousseff, who has
Mr. Obama still not made a final
would be able to wow Brazil’s serious- “Lula” da Silva, irritated Washington decision as to the supplier. Increased
minded president enough to bring by cozying up to anti-American leaders landing frequencies for airlines flying
South America’s largest everything in Venezuela and Iran. between the two countries and an
back into the fold, both economically Economic considerations aside, agreement to develop aviation biofuels
and politically? Brazil, as a temporary member of rounded out the business in that sector,
Brazil, the first country on the the United Nations Security Council, with Brazilian airline Azul signing
BRIC list—that talked-about group of abstained from supporting a U.S.- on to test the fuel in locally-produced
emerging economies which are showing backed incursion into Libya at the Embraer jets.
tremendous growth and potential on beginning of March. Subsequently, The skies aren’t the only element Mr.
the global stage, comprised of Brazil, Mr. Obama withheld outright support Obama and Ms. Rousseff discussed;
Russia, India, and China—had a strong for Brazil’s bid for a permanent seat Brazil holds the rights to an estimated
7.5% growth rate last year, with the on the council, instead reaffirming his 30-80 billion barrels of oil just off its
real consistently rising against the admiration for “the rise of Brazil as a South Atlantic coast. In 2009, China
dollar for the past two years. It was global power.” surpassed the United States as Brazil’s
therefore only natural that all eyes were The two leaders also chaffed top trading partner, a position the U.S.
on Mr. Obama as he crossed the flat regarding the lifting of American has held since the 1930s, and 200,000
expanse of the Praça dos Três Poderes tariffs on Brazilian ethanol, the barrels of oil a day are scheduled for
to the Palácio do Itamaraty, Brazil’s sugarcane-based fuel considered a refinery by the Chinese in exchange
diplomatic headquarters, and a meeting viable alternative to petroleum-based for a 10-year loan to Petrobras. With

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of São Paulo

China’s past incidences of currency “effective protection and enforcement executives.

manipulation and establishment of intellectual property rights,” and Even so, the U.S. had a trade deficit
of trade imbalances a key concern to take “into account the desirability of $46.3 billion in December 2010,
for both countries, Mr. Obama and of reducing non-tariff trade barriers exporting $167.8 billion in total goods
Ms. Rousseff remain contemplative and distortive subsidies to facilitate and services to Brazil, but importing
regarding their relationship with the increased trade” . $214.1 billion, according to figures
investment powerhouse. Two of the main subsidies Brazil from the U.S. International Trade
Meanwhile, the U.S. aims to double hopes to be rid of is the 54-cent tax Administration.
its exports to Brazil by 2015, signaled on Brazilian ethanol, which competes In the end, many critics say no
by the creation of a joint commission directly with a corn-based American real heavy-hitting agreements were
to expand trade and to lift non-tariff ethanol product as an alternative signed and all the major differences
controls between the countries, fuel source for motor vehicles, and glossed over by photogenic smiles
essentially laying the groundwork for subsidies on cotton, which the World and handshakes and agreements-to-
a future free-trade agreement. Trade Organization has ruled illegal. disagree.
Historically a closed market, Mr. Obama made no promises in either Still, with Brazil looking for
Brazil still has some rules deemed as regard. recognition as a global force—
unfriendly to American trade interests, With joblessness in the U.S. hovering including the right to a Security Council
including occasional double taxation at around 9%, Mr. Obama sees an seat—and for balance between its two
for companies doing business in the increase in exports to Brazil as key largest trading partners, China and the
country and a limit on the amount of to an overall economic recovery, and United States, Mr. Obama succeeded
land foreigners can buy. specifically, as a path to job growth: in establishing the trust essential to
According to the official wording “For us, this a jobs strategy,” he said, negotiations, as an unnamed senior
of the agreement, the countries’ referring to the potentially 200 million official told Reuters: “The most critical
central objectives are to create an new customers for American goods, part is that Dilma can now pick up
economic environment that’s “open during a speech at the CEO Business the phone any time and call Obama
and predictable for international Summit in Brasília, an event attended because they have established a good
trade and investment,” to provide by 300 top Brazilian and U.S. company personal relationship.”

Membership renewal
(continued from front page)
General of São Paulo
HELPING HANDS Receive preferential reservations
Single or Family Membership (any donation and seating at special events
above R$ 700.00) Receive the annual Information
Have your name with a special Guide and Directory, and a members
recognition in the Annual Guide, list on CD ROM for fast access
Directory and Forum Newsletter
Receive recognition from the SUPPORTER
charities directly affected by your Single or Family Membership (R$
support 200,00/250,00)
Attend a VIP reception with the Receive the annual Information
American Ambassador or Counsel Guide and Directory
General of São Paulo
Receive preferential reservations JUNIOR
and seating at special events Single and under 30yrs old (R$ 100)
Receive the Patron Lapel Pin Receive the annual Information
Receive the annual Information Guide and Directory
Guide and Directory, and a members
list on CD ROM for fast access Contact the AMSOC office to renew
your membership; you may also visit
PATRON the AMSOC website to renew on-line.
Single or Family Membership (R$ Thank you in advance for joining and
250,00/350,00) sharing your commitment with us.
Attend a VIP reception with the Your generous contributions make
American Ambassador or Counsel everything we do at AMSOC possible.

2011 Forum 5
Understanding the Brazilian Economy
By James Wygand

Executives visiting Brazil for the tax burden (37% of GDP), shortfalls country’s first university was founded
first time are justifiably impressed by of economic infrastructure in the only in the first decade of the 19th
the fixed assets they see on the ground. form of highways, communications, century in spite of the country having
They become even more impressed ports, etc., relatively low savings and been colonized since the 1530s.
when they witness Brazil’s tremendous investment ratios, insufficient education The term “brasileiro” only conveyed
human and natural resource base, infrastructure and a ponderous the notion of citizenship in the 19th
its energy grid which relies on clean bureaucracy. Among other reasons this century. Before that it was applied only
hydroelectric power generation, and its results in reducing the competitiveness to any citizen of Portugal who had
agricultural prowess, all managed by a of the Brazilian economy in the global earned his fortune in the colony.
relatively young work force. business environment.
What they quite often do not see is Learning to deal with the disconnect The new country
that Brazil is a relative In other ways, Brazil
newcomer to the role is a very new country.
of an open, competitive Its mercantilist model
economy. was ended abruptly
From colonial times and to some degree
(starting in 1500) to 1992 traumatically only
Brazil was a relatively in 1992. Its chronic
closed”economy inflation only came
governed under a to an end in 1994. Its
mercantilist model civilian democracy
that protected local dates only from 1985
companies from foreign (with some intermittent
competition. This is periods of democracy
one of the reasons for prior to 1964).
the still relatively poor Its management
competitiveness of the cadre is young. The
Brazilian economy; average age of the
the small share of population is 29 years.
global GDP (2.9%); A full 34% is under
the skewed income the age of 15.
distribution (2nd or 3rd
worst in the world); and Accomplishments
general underperformance opposite an between potential and real is the key Brazil’s history is rife with
impressive resource base (71st in per to understanding and successfully accomplishments that have been
capita income). working in the Brazilian economy. relegated to the back pages of the
For most of its history, Brazil was The foreign business executive has local history books and which has
plagued by chronic inflation and to deal daily with an enormous range of been “crowded out” by the country’s
boom and bust commodity cycles (e.g. contradictions and conflicts that arise reputation as “the country of the
coffee, rubber, iron ore, sugar). It was from Brazil’s history. future”.
not until 1994 that inflation was dealt Brazil was the second country in the
a mortal blow with the introduction The old country world to have a telephone system (after
of the Real Plan that created a new In many ways Brazil is a very old the USA). It was the only colony to
currency, privatized a number of state- country in the Americas. A full 95% of become the seat of government of its
owned companies, and improved the its territory (with the exception of Acre) own mother country. It had one of the
real income of the lower tiers of the was mapped before 1750 – twenty first postal systems in the Americas. It
income pyramid. six years before the US declared its was the only country in the mid-70s
The economy is burdened by independence from England and was to develop a viable alternative fuel
a carryover from the years of still a collection of 13 colonies along program based on alcohol derived from
protectionism and the inefficiencies the eastern seaboard of the US land sugar cane.
inherent in the mercantilist model. This mass.
burden is referred to as the “Brazil Portugal ruled its colony with an Today Brazil is a newcomer to a
Cost” which is composed of a heavy iron fist. Libraries were prohibited. The globalized economy and its role as a

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player is still being defined. It is still “contextualize” or reconcile Brazil’s BRIC, we do well to remember that the
developing its own management and past with its present has been the only truly westernized economy of the
governance models. cause of numerous business failures four is Brazil.
As a consequence, investors who and frustrations. Companies that have In summary, we can conclude that
have recognized the relevance of logged impressive success (and there Brazil is not an easy country in which
Brazil’s past to its present have been are many) have found ways to reconcile to do business, but it is a good one.
more successful than those who ignore the contradictions and roll with the
or are unfamiliar with or disparaging of punches. Jim Wygand has an MA from the
Brazil’s past. The global financial crisis University of Wisconsin. He first came
Just as a foreign investor in the disproportionately affected the mature to Brazil in 1965 with the US Peace
USA would lose out by ignoring economies and raised the profile of Corps, lived in the favela of Jacarezinho
the importance of US political and the emerging countries such as the in Rio, worked with USAID, in the
economic development history BRIC countries (Brazil, Russia, India, banking, industry, and services sectors
and its application to the present, and China). This led many to look in the US and in Brazil. He has made
ignorant investors continuously face at the present and the future with numerous presentations and written
challenges, some of which turn out to little consideration of the differences several monographs and articles
be insurmountable and they leave. between the emerging and the mature on Brazil. He currently publishes a
In my 40-plus years of working in economies in terms of their respective regular newsletter on business risks in
and with multinational companies learning curves. The emerging country Brazil, Latin America, and the global
in Brazil I have found that more dynamic is not a simple carbon copy of economy.
than any other factor, the inability to that of the mature economies. As for

2011 Forum 7
The other half
By Maureen Kennedy, AmSoc board member

“What made you move to Brazil?” the market. I felt liberated. Free. I began to realize that the questions I
Sound familiar? If you’re like me, it’s a But then, after a couple of months, was asking were all based in fear. Fear
question you probably get all the time. the novelty wore thin. I found there were that things wouldn’t work out. Fear of
From curious Brazilians here in the only so many walks in the park I could the future, fear of the unknown. If I
city. From other ‘estrangeiros’ living in take, only so many lunches I could go to was really honest with myself, I wasn’t
São Paulo. Even from folks you meet tied so much to the job I had as I was to
when you go back home to visit. the security that it brought me. For the
For many of us, the answer to that first time in my adult life, I had to rely
question is simple: Work. The Brazilian on someone else. And that led to a fear
economy is taking off and we’ve been of being vulnerable.
lucky enough to catch the wave with a With that understanding, I began
great job opportunity or a promotion. to change the way I looked at things.
Something that we just couldn’t pass Instead of thinking about what I left
up. behind, I started to focus on what I
For others, myself included, the was gaining. Not only did I get to live
answer is not so straightforward. Yes, in Brazil, learn a new language and
it’s work that brought us here. But experience a new culture, I also had the
not our work exactly. We came to São opportunity to pursue dreams I never
Paulo for the careers of our spouses or had the time for in New York. I found
significant others. We are the other half. new venues for writing and started
A half that in many cases left a career – teaching yoga more – a side career that
or put one on hold – to be here. I had been too busy to cultivate while
I came to São Paulo, in large part, living in the States.
for my husband’s work. Our decision to Being the other half here in São
move was not an easy one. I knew that Paulo hasn’t always been easy. But
in the end it was the best choice for our it has taught me valuable lessons.
family. And yet it meant leaving a job Namely, that when we open our arms
that I had worked hard for and leaving to embrace change and believe in our
New York in the prime of my career. As future, anything is possible. I still don’t
a writer in an advertising agency, it was know what the future holds (I wouldn’t
unclear to me what I might be able to have known it either if I had stayed
find in São Paulo. before the ennui set in. I began missing in New York), but when I look at my
If I wanted to work again, I figured, my old job – the excitement of winning husband and young son, I know that
I’d have to start from scratch. Make a new account, the gratification of doing whatever decisions I’ve made were the
connections, research companies, see something creative, the stimulation right ones.
if there even was work in São Paulo for of being around other adults all day. I
a writer not fluent in Portuguese. While envied my husband – sometimes even
on the one hand it seemed exciting to resented him – as he left the house for
embark on this great new adventure (I work in the morning. And soon the old
even secretly welcomed the thought of doubts started to resurface: Would I be
not working for a while), I couldn’t help able to pick up my career where I left
but wonder what the move would mean off? Did I even want to? What would
in the long term for me. Would I lose the future bring?
my independence if I didn’t work for a The questions were not easy ones
few years? Would my career suffer? to answer. And the more I thought
When I first arrived in São Paulo, I about them, the more anxious I got. I
actually relished the time at home. Gone wondered if leaving New York was a
were the constant deadlines, the stress mistake – if I had given up too much of
from work, the never-ending demands my professional life by coming to São
from clients. In their place were long Paulo. Round and round I went, making
lunches with new friends, walks in myself more and more unhappy.
Ibirapuera Park and leisurely trips to Then something funny happened.

8 Forum May
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of São Paulo

The Business
How the exchange rate and such as then 18 year-old sensation than double the amount, compared to
inflation are changing Brazil Neymar ended up staying with Santos other industrialized nations, for goods
instead of moving to a top European like cars, electronics, brand-name
2004 was a great club. clothes, and airline tickets. Will salaries
year. Arriving in Real-estate price increases could be able to keep up? Will consumers be
São Paulo, my US be the most outrageous, especially to able to keep making payments on their
By Shay Coker, dollars, while limited, those who did not purchase a home homes and expanding credit card bills?
AmSoc board member went a long way. The when the dollar was worth something Will we soon be spending $10 for a Big
exchange rate hovered in 2003-2004 (please restrain me from Mac? Or is the Brazilian currency due
around 3 Reais to the dollar. I was kicking myself!). A simple $100,000 for a correction? It should be interesting
dining at excellent Japanese restaurants investment made in a fast-growing to see!
in the best neighborhoods for US$10. neighborhood like Brooklin or Vila
Agua de coco cost the equivalent of a Olimpia seven years ago would be *all values are in US dollars unless otherwise stated
measly 50 cents at Parque Ibirapuera. worth close to $700,000 in dollar terms
My apartment rent was way lower than today. A recent survey by Jones Lang The Business is a new monthly column
a similar building in a large US city. LaSalle shows that new high-end office written by Shay Coker, a sports-
Oh, how things have changed. space now costs more in Rio de Janeiro loving economist making a living as a
Today one pays US$70 for Japanese and São Paulo than in the city of New commercial real-estate consultant at
food. Rent is spiraling out of control. York. Demand is simply outstripping Jones Lang LaSalle in São Paulo. He
Even buying a Big Mac and fries at supply and prices are rising almost studied business at Thunderbird School
McDonalds requires double the amount monthly. Residential real-estate is of Global Management and has resided
compared to the US. New apartment also booming, perhaps due to a 650% in Brazil for nine years.
buildings are being developed and increase in available financing (FTGS) The Forum does not take responsibility
priced at Manhattan levels, and still since 2005. for opinions or advice expressed in this
sell out before the final phases of Salaries, at least for those at the top, column.
construction are completed. are keeping up with price increases and
The government reports inflation benefit from the exchange rate swing.
was just 6% during 2010. Just what Brazilian executive pay is the highest
were they measuring? The price of in the world, according to a recent
pencils? São Paulo residents certainly article in the Economist. A director
noticed much bigger price jumps in level position in São Paulo pays over
almost everything they consumed. $200,000, while a CEO position
From a simple açaí to parking at their averages over $600,000. Will the day
favorite restaurant, prices have soared, come soon when Brazilian companies
even when measured in Reais. are importing “cheap” American
The exchange rate has significantly labor?
altered the economic landscape in The United States has also benefited
Brazil in several areas, including from the boom in Brazil’s economy.
tourism. American Airlines flights to Today, US companies export almost
Miami are packed with Brazilians ready triple as much as they did in 2002.
to spend not only at Disneyworld, but American companies such as P&G,
also at their favorite shopping malls. GM, and Google are not only exporting
Argentinean ski destinations, such as to Brazil, but are also investing heavily
Bariloche, are preparing for an ever- in the country. And why not? Brazil
increasing Brazilian invasion in the is currently the world’s 7th largest
coming winter months. economy and could overtake Britain
In the world of sports, Brazilian and France in the next year or two. The
soccer clubs have seen their purchasing country plays host to the 2014 World
power increase, partially stemming Cup and 2016 Summer Olympics.
the tide of sending their best players Excitement and anticipation are in the
overseas. They have attracted top air.
soccer players such as Ronaldinho, While most of the news seems good,
Luis Fabiano, Elano, and Fred to return I have to wonder just how far it can go.
to their homeland. Even young players, São Paulo residents already pay more

2011 Forum 9
Opportunities at the bottom of the pyramid
By Jennifer Iverson, AmSoc board member

What is the BOP? BOP players Morgan on the other hand has created,
We live in a country of approximately Over the past 5-7 years, many within its investment bank division
188 million people, 95 million of which corporations around the world have in New York, a Social Finance group
are the new middle class and 73 million started to experiment with innovative which supports companies operating in
living in the lowest income brackets (D ways to include the BOP in their long- the BOP space.
and E). These lower income brackets term business strategies. Companies
are often referred to as the Base of the like GlaxoSmithKline, Unilever, BOP in practice
Pyramid, or BOP. Philips, SC Johnson, Microsoft, Many different inclusive business
On a global basis, the BOP is Novartis, Procter & Gamble and Coca models exist and there is plenty of
generally considered to be the 4 billion Cola are pioneers in the BOP sphere in room for creativity and flexibility in the
people who live on approximately various countries around the world. invention of new models. There is also
US$2 per day. The term plenty of room for criticism
BOP entered into the public and improvement.
sphere mostly thanks to the In addition, it is often
late University of Michigan difficult to measure
professor C.K.Prahalad´s 2004 quantitatively how the model
publication “The Fortune at contributes to the company´s
the Bottom of the Pyramid” financial and social bottom
and Cornell University lines. We have a long way
professor Stuart Hart´s 2007 to go, but the start is very
publication “Capitalism at the encouraging.
Crossroads”. Walmart Brazil, in order
to reach out to the BOP
The BOP theory consumer, created a new store
The BOP theory is that model called Walmart Todo
corporations can prosper while Dia, located only in low-
at the same time contributing income communities.
to poverty alleviation. Broadly The store offers a range
speaking, Professor Prahalad of products with accessible
takes a consumer approach prices and also offers a range
whereby companies can of services, either free or at low
profit by selling to the poor, prices, within the store such as
while Professor Hart goes a a lan house, a classroom for
bit further and seeks ways to technical courses, financial
include the BOP population services, issuing official
in the economy as more than just PricewaterhouseCoopers in London, documents, an employment agency and
consumers, but rather, as participants for example, has created a department various health services such as access
in corporations’ value chains as to offer consulting on BOP strategies to a pediatrician, gynecologist, and
suppliers, retailers, distributors and for their corporate clients. Market general medical clinic. The store also
employees. Both professors, like most research companies, such as Stanford prioritizes hiring from the community
working in this field, are concerned University´s Mobile Metrix, have where it is located.
with how BOP business strategies, also entered the fray, as companies need Within the first year, foot traffic
known as inclusive business strategies, reliable and highly specialized data in in the pilot store increased by 10%
can contribute to society´s long term order to create and implement their and community members had access
sustainability and how they can play a BOP strategies. These strategies are to services that the government and
role in poverty alleviation. very much ‘for-profit’ activities. private sector previously had difficulty
This area is still rather new and And where there is money to be made, in delivering to them.
it goes beyond standard corporate the bankers and venture capitalists Brazil´s own Natura is another
social responsibility programs, social can´t be too far away. Mexico based excellent example, as its model involves
marketing and corporate-sponsored Ignia and Brazil´s own Vox Capital are sourcing raw materials for its cosmetic
community projects. Today BOP excellent examples of how to combine and personal care products from local
strategies are usually built into the venture capital and the BOP to generate producers offering them a 15%-30%
overall long-term corporate strategy. both financial and social returns. JP margin and ensuring the extraction

10 Forum May
The American Society
of São Paulo

of these materials without negatively population in the country, yet marketing products.
impacting the environment. In 2003, and distribution to this public was a The ladies generate income for their
in the state of Pará, Natura started challenge. Therefore the company families, are more knowledgeable
working with three communities of created a model in 2008 whereby ladies about nutrition and health, and Nestle
local producers increases its
of priprioca, a financial and
grass whose roots Class Income range R$ Number of people (end 2009) % of total population social bottom
yield a unique lines.
fragrance, for use A Above 6.329
in their Ekos line Sources of more
of products. Due B 4.854 - 6.329 20 million (w/A class) 11% (w/A class) BOP information
to the enormous To learn more
success of the C 1.126 – 4.854 95 million 50% about the BOP in
product line, Brazil, check out
Natura built a D 705 – 1.126 44 million 24% the blog www.
small factory brasildeverdade.
in the region in E 0 - 705 29 million 15% com and the
2006, increasing Brazil version
production while of Next Billion
at the same time increasing employment from the low-income communities act
and income generation for the local as Nestle distributors and nutritional Another opportunity to learn more
population. advisors in their own communities. and exchange views is to participate
There are many compelling inclusive The ladies receive courses on nutrition in the Inter-American Development
business models outside of Brazil, for as well as sales techniques and are Bank´s 1st Congress on the BOP in
example one operated by Nestlé in seen as a reference in the community Latin America, to be held in São Paulo
Peru. The company wanted to increase for nutritional information as well as on the 27th – 28th of June 2011 (www.
its market share among the BOP a point of sale, of course, for Nestle .

Fellowship Community Church

The Welcome Place since 1921
Phone (11) 3253-7609

09:00 am - Walking in Faith Classes (English and Portuguese)

Sunday’s 10:30 am – Worship Service (English only)

06:00 pm – Culto em português

Conveniently located on Rua Carlos Sampaio, 107 – Bela Vista

Just a block and a half from the Brigadeiro Metro station on the Avenida Paulista

2011 Forum 11
Memorial Day Services at Fellowship Community
Church on May 29th
Who are the AmSoc Vets? contact the American Society office or was first celebrated by the people of
The American Veterans of the one of its members. Waterloo, New York on May 5, 1866
American Society of São Paulo was and then again on May 5, 1867. It could
formed in 1982 under the leadership Memorial Day be that Decoration Day and Memorial
of Alonzo Shattuck for those who have Memorial Day was first called Day were celebrated concurrently in
served with the pledge to give all for the Decoration Day. It was a day set different parts of the North for many
USA. Recently, the AmSoc Vets have aside for us to honor those who died years until World War I. On June 19th,
opened up to include first responders, preserving the Union in the Civil War. 1926 by joint resolution, U.S. Congress
such as police and firefighters authorized and directed the
as well as others. Secretary of War to accept
Al Shattock served during a tablet commemorating the
WWII and we have members designation of May 30th as
from Korea to the current Memorial Day. At that time
conflicts, with ranks from Memorial Day was made a
corporal to general. As an National Holiday and changed
example, BG Rich Waddell from honoring those who died
has had several deployments to fighting just the Civil War to
both Iraq and Afghanistan while honoring all Americans who
residing in Brazil. died fighting in all our wars. In
The American Veterans of the May 1966, President Lyndon
American Society of São Paulo Johnson officially declared
(AmSoc Vets) were recently honored by American Society Veterans posing with some Waterloo, N.Y. as the birthplace of
the “Força Expedicionaria Brasileira” of the Marines from the US Consulate Memorial Day.
(FEB) when they presented two of its
long time members, Jose Arana and The AmSoc Vets are co-hosting
Nick Philippov, with Expeditionary It was called Decoration Day for the act the second annual Memorial Service
Medals. FEB was formed to honor the of decorating the graves of dead soldiers together with Fellowship Community
veterans who served with the Allies of with flowers. On May 5, 1868 General Church, to be held on 29th May. The
World War II in Europe. John Logan, National Commander CG Thomas Kelly will participate, as
The AmSoc Vets are invited to of the Grand Army of the Republic, well as the Marines’ Presentation of
participate in the local patriotic events, officially proclaimed Decoration Day, the Colors. Fellowship Community
including the Brazilian Independence in his General Order No. 11. It was first Church is located in Bela Vista,
Day parade on Sept. 7th. observed on May 30, 1868. two blocks from the Metro Station
If you are interested or know It is unknown when Decoration Day Brigadeiro at Rua Carlos Sampaio,
someone who may be interested, first became Memorial Day. The Holiday 107.

12 Forum May
The American Society
of São Paulo

AmSoc Benefit to feature Toquinho,

top MPB Star
On Saturday, August 27th you will for this contribution. and worked with children-in-need
have the opportunity to participate in and their families in São Paulo. It is
THE SOCIAL EVENT of 2011 and 7 Years of Event Successes the Brazilian affiliate of St. Louis-
“Simply Be Happy”. Yes, that´s this Now in its 8th year, this annual based Boys Hope Girls Hope that also
year´s theme for this traditional annual benefit that attracts over 700 people, operates in Guatemala, Mexico and
São Paulo benefit, a collaborative has always celebrated Brazilian culture Peru as well as 15 US cities.
effort between AmSoc and Vida with performances by Ivan Lins, MPB4, Located in the Ipiranga neighborhood
Jovem that began in 2004. The theme, Carlinhos de Jesus & Ana Botafogo, just two blocks from the Historical
“Pra Simplesmente Ser Feliz”, was Elba Ramalho, Ney Matogrosso, Ipiranga Museum and the São Paulo
taken from the last stanza of one of Aquarium, VJ impacts the lives of over
Toquinho´s most known songs, “Ao 350 children, youth, their families and
Que Vai Chegar” (“To Whatever others residents from nearby slums
Comes”). and favelas. The VJ Educational and
´Happy’ begins with a tasty cocktail Cultural Center offers extra-curricular
and silent auction of over 300 must- classes including English, Computers
have items. The lively socializing, and Math and Portuguese tutoring.
networking and bargain hunting will Its certified professional courses
give way to the sumptuous dinner offered daily include Education for
in the stunning Golden Hall, where the Workforce in partnership with
MPB (Popular Brazilian Music) SENAC; and, Computer Maintenance
star Toquinho & Band will perform in conjunction with Cisco Systems.
following dessert. Silvia Poppovik, Vida Jovem nurtures the children
renowned TV personality and who are placed in its family-like
journalist, will be the evening´s MC. homes and provides healthy food,
medical and psychological support
Toquinho and the opportunity for a good
Toquinho, is one of the great MPB education. Many of the children
(Popular Brazilian Music) stars of all study in private schools and upon
time. He formed a partnership with high school graduation they are
the famous poet and music composer, encouraged to continue their studies
Vinícius de Moraes, and together in college on scholarships provided
they made history with numerous by Vida Jovem. The children also
successes: Aquarela, Tarde em participate in numerous field trips
Itapoã and Regra Três, among many and enjoy cultural programs such as
others. In addition to composing visiting museums, cinema, theater
with Vinícius, he worked with many and dance productions.
other music greats of the period such Happy yet? You certainly will be
as Chico Buarque, Jorge Ben Jor, when you and your friends purchase
Paulinho da Viola, Elifas Andreato and Maestro João Carlos Martins & The tickets to what will definitely be an
Belchior. Bachiana Orchestra and Emanuelle unforgettable evening!
Toquinho is known for his Araujo & Banda Moinho. In 2010, Tickets for this fun-filled, star-
dedication to children, both for the Vida Jovem organized a Brazilian studded happening sell out quickly, so
music he composed and as an advocate Contemporary Auction of 92 donated buy them soon by calling the AmSoc
for children´s rights. In 1986, working works from leading artists. office (5182-2074). Ticket prices are
with Elifas Andreato, Toquinho R$ 200, 250 and 300, depending on the
developed his most important work Associação Vida Jovem seat location relative to the stage.
related to children, the CD “Canção de As always, net proceeds from the Don’t miss out on this chance to help
Todas as Crianças”, that was inspired event primarily fund the educational the São Paulo community and make a
on the “Universal Declaration of Rights programs of Vida Jovem as well as child’s dream of achieving a decent
for Children” - 10 principles approved contribute to other charities supported life come true. If you do, you and the
by the United Nations Assembly. by the American Society. For over 24 children you support will Simply Be
Toquinho was recognized by the UN years Vida Jovem has battled poverty Happy!

2011 Forum 13
H ousing

Elegant furnished house in Tamboré Selling Up American Psychologist Services for Expats

Beautiful recently professionally decorated fur- Go with a pro! We have been selling household Sukie Miller Ph.D. early director of Esalen,
nished house for rent. 600 m² with 2,000 m² of goods for families, individuals, and companies former Board Member Jung Institute San Fran-
land. Heated swimming pool. Nice barbecue for more than 20 years in São Paulo and Brasil- cisco, 35 years experience private practice as
area and outdoor porch. 4 suites, family room, ia for embassies. We have hundreds of pre- coach, psycho-therapist with adults and cou-
living, dinning, large kitchen, maids room and 3 selected clients wanting to buy from you, safe ples in eclectic approach to personal/profes-
car garage. The House is complete ready to live and sound! Send an e-mail to meredithsales@ sional growth, woman’s’ issues, adjustment to
in for high level executive. To see photos, visit or or call (11) São Paulo, goal setting, dream work, anxiety. – Avenida Marília,105. 5908-1144 or (11) 7997-8808. Ask for Ms. Za- Call Dr. Miller at 11- 9823-8730 email
To visit the house, call (11) 8179-3131. quie Meredith.

Taylor Real Estate Argos Dog Kennel American-Licensed Psychotherapist

Luxury spacious houses, apartments and pent- Traveling? What about your dog? Argos Kennel In this busy and ever-changing world, people of-
houses. Sales and rentals. Ten years experience Hotel could be his second home in the coun- ten feel stressed and overwhelmed with no place
with expatriates. Furnished and unfurnished. try. Food, water, and shelter with lots of love to turn. Psychotherapy/counseling can provide a
Trilingual Real Estate agents. References from and personal care. No lonely kennel for him, safe place to receive professional guidance and
consulates and multinationals. Photos sent by but our home and the freedom of a spacious support. Brief or longer-term therapy offered
email. Relocation Service. Consult the site: garden. Fetch and carry service. English and depending on your needs, goals and expecta- Email - taylor@tay- French spoken. Call Jean or Christiane at (11) tions. Services: individual, couples, child/ado- Phone: 5511 3079 8888 and 4661-1430 or (11) 7143-0837 or send an e-mail lescent. Certified to conduct Adoption Home
5511 8774 5100 (Maria Elisa). to Embu Guaçu, SP. Study for American Citizens. Contact: Pamela
Wax, MSW/LCSW at 5051-5988 or 9656-2106.
Looking for Apartments Math and Science Tutor Located in Moema.

Looking for furnished, fully equipped apart- Former Graded and Chapel teacher, with 25- American-Licensed Clinical Psychologist
ments in São Paulo. Offer management, pro- years experience, tutors Math, Physics, Chemis-
motion, purchasing, remodeling and decoration try, and Science for all levels, including but not Heloisa Garman, Psy.D. U.S.-licensed Clinical
services for your property. We will rent your limited to the IB, IGCSE, SAT-I & II, AP and Psychologist (covered by U.S. health insur-
flat to foreign tourists & executives visiting the Brazilian vestibular. Elementary and middle ance). Bilingual, with extensive private practice
city looking for alternative accommodations. school students are also welcome (all subjects). in Chicago and former therapist at the Family
Highly experienced specialized international Call Fernando Knijnik at (11) 9134-6700. Institute at Northwestern Uni. Treats individu-
group. Contact: Paola B. de Estrada 9210-2201, als, couples, and families. Specialized in anxi- or Psychotherapist for Ex-Pats ety, depression, cultural issues, and adjustment disorders. Call Dr. Garman at (11)7179-9723 or
Serving Adults, Children, and Families (also 3898-2330 or send an e-mail to
Furnished apartment for rent couples) struggling with all adjustment issues.
Specializing in issues of divorce, separation,
Vila Nova Conceição. São Paulo’s Best place and reconciliation. Many years experience with
to live. Near Ibirapuera Park. Modern building drug/ alcohol issues. USA licensed as MFT. Jun-
with sports facilities, heated swimming pool, gian Analyst experienced in Sandtray, Dream-
three bedrooms (one suite), a living room with work (groups also), and Cognitive/ Behavioral
terrace, complete kitchen, maid’s bedroom and therapy. Please call/ email Matthew: 7734 5793
bathroom, big service area, two parking spaces. or for a free initial
Fully furnished with all appliances. Call Alex or consultation.
Eliane at (11) 3849-7085 or (11) 8635-7788, or
send an e-mail to American-Licensed Expat Psychologist
A classified of up to 350 characters costs
Richard Morhaime, Psy.D., offers skilled psy- R$55 for AmSoc members and R$80 for
S ervices
Place a

chotherapy for children and adults. He also pro- non-members. To place a classified please
vides complete diagnostic evaluations in Eng- call (11) 5182-2074 from 8:30 a.m. until
Personal Trainer lish for children with academic or behavioral 1 p.m., or send an e-mail to amsoc1@
difficulties, featuring individualized recommen-
I will come to your home, office, or workout fa- dations for school and home. For more infor-
cility and create an exercise/fitness program tai- mation, contact Dr. Morhaime at 5538-0099 or
lored to your health concerns, fitness goals, and 9669-8057 or visit
schedule. For adults and children, individuals
Forum does not check all of the advertisers
Our Readers

appearing in this newsletter. We urge you

A Note to

or groups. Sessions in English, Spanish, or Por-

to use these services; however, thoroughly
tuguese. For more information please contact check prices and services prior to finalizing
Daniela Franco at (11) 9739-6191 or dsf29@ any service or purchase agreement.

14 Forum May
The American Society
calendar of São Paulo

Learn more about this month’s AmSoc events (highlighted) at

May 2011 Important Dates: 1st Labor Day (May Day), 8 Mother’s Day

02 Monday Scottish Country Dancing Club 1st Monday of every month at Drake’s Pub, in the Brazilian British Centre at 8 pm. Please visit www. for more details.

04 Wednesday INC Coffee at Emporio Santa For more information, visit

05 Thursday Annual General Meeting U.S. Consul General Tomas Kelly and his wife Elsa will host the American Society Annual General
(AGM) Meeting (AGM) at 8 p.m.

Will take place in the Church Hall on Friday from 8.00 to 17.00 and Saturday from 8.00 to 12.00. The
06 & Friday & The annual Clothing Sale clothes that you no longer want bring them to the Church. Clothes that are no longer in good shape may
07 Saturday be handed in separately to the Church Office for distribution to those in need. Volunteers are needed.
Further information at

11 Wednesday INC Red Rose For more information, visit

All You Need is Love & At Credicard Hall, Av. das Nações Unidas, 17955 - from 10 p.m. The show features special effects, vintage
13 Friday Orquestra instruments, costumes and projections reviving with scenic and fidelity sound with songs from all
phases of The Beatles. To get your ticket click on

Will be open to any players of all levels. Entry deadline to until May 6 at received
14 Saturday Team Tennis Tournament at, submit your name, address, telephone, email, estimated tennis level, avg. # of times you play per
month and shirt size. For more information visit

14 Saturday Ian Anderson’s Jethro Tull At Credicard Hall, At Credicard Hall, Av. das Nações Unidas, 17955. Time to be confirmed on www.

A stellar cast comes together for this second installment of the new Ring: Deborah Voigt stars as
15 Sunday Die Walkure Opera Brünnhilde, Bryn Terfel is Wotan, Jonas Kaufmann and Eva-Maria Westbroek star as the twins, and
Stephanie Blythe is Fricka. James Levine conducts. To see live in HD direct from The Metropolitan Opera
in a cinema, click on and buy your ticket.

19 - Thursday - Bakels conduct Mozart and Kees Bakels conduct Mozart and Schubert with the Symphony Orchestra of the São Paulo’ State. Start at
21 Saturday Schubert 9 p.m Prices R$24,00 – R$135,00. Click to get your ticket.

29 Sunday Memorial Day Service See page 12

29 Sunday Coppélia Ballet The entire family will delight as the magical world of Dr. Coppelius’ workshop reveals his mechanical
toys and imaginative inventions. To see live in HD direct from The Metropolitan Opera in a cinema, click
on and buy your ticket.

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Visit our website at and fill in our on-line form

or call the AmSoc office at 5182-2074

2011 Forum 15
AmSoc Sports review
By John Kennedy, Director of AMSOC Athletics

Basketball Tournament - 2011 contests going into the 3-minute overtime
period, including the final. The 5-man Group A Group B
On April 16th at the Graded School in American Society team played very well,
Morumbi, the American Society hosted being led by former FORUM Editor Cougars 41 PACA 48
its 1st Basketball Tournament in years. Bob Moser, for they lost in overtime US Consulate 38 GM 14
Six teams entered with about 8 players per in the round robin stage to the eventual
team. The games, which were comprised champion. With only 5 players showing Cougars OT 51 PACA 31
of two 12 minutes halves, were of the up, the AmSoc men couldn´t substitute AmSoc 45 White Cats 39
demanding 5 on 5 full court version, regularly to give their legs a rest as did
including league referees calling the most of the other teams. AmSoc 31 White Cats 37
fouls and controlling the substitutions. It The champions were the Cougars, US Consulate 35 GM 23
started at 10am with a round robin format led by Chris Harshberger and Michael
with the 6 teams divided into 2 groups, Miller, two exceptional athletes who
with the three teams in each group playing have also led other Cougar teams win SEMIS FINAL
each other. The group winners went on several softball championships and this
to play the second place finishers of the year´s Abacaxi Bowl. With their deep Cougars OT 42 Cougars OT 51
other group, while the third place teams bench of a 10-man team, they ground out PACA 38 Whie Cats 48
were eliminated. the championship by winning both their
Most of the games were closely semifinal (against PACA) and the final White Cats 36
contested until the very end, with three (White Cats) in Overtime. US Consulate 22

Sunday Baseball

On Sunday April 10th, some past San Francsico Golf Clube.

and present AmSoc members got The American led-team prevailed
together with some Japanese-Brazilian 8-5 over 7 innings of good quality
baseball players to play a pick-up game baseball, since there were only 1 or
of good ole fashion sandlot hardball. 2 pass balls, few fielding errors and
They included AmSoc Sports Director 1 or 2 walks! For example, batting
John Kennedy, regular AmSoc sports third, John Kennedy went 3 for 4
sponsor and member Sadao Isuyama, with 3 RBIs and 2 runs scored. We
former returning member Kevin Smith plan to get together more often like
and Rick Dunno, and a new coming this, so whomever is interested in
member Paulo Antunes of ESPN. playing on a Sunday morning (back
Sadao organized the get-together for the family lunch at 1-2pm), get in
which took place on a private baseball touch with John Kennedy at john@
diamond in Osasco, next door to the or 9951-9103.