Slum dwellers evacuate the Morro do Urubu favela in Rio de Janeiro.
Slum dwellers evacuate the Morro do Urubu favela in Rio de Janeiro.

Brazilian slumdwellers' homes condemned with a lick of paint



RIO DE JANEIRO // A single colour determines the fate of thousands of residents in Rio de Janeiro's shantytowns, or favelas, after floods killed about 230 people this month. With a stroke of paint on the side of a shack or house, city officials assessing the damage from record rainfall are deciding who can stay and who must abandon their home. Blue paint means the house is still structurally sound; orange means there is cause for concern; black orders the residents to leave the house.

Although the floods had some effect on all of the city's six million residents, the worst afflicted are among the one million or so people who dwell in the hillside favelas. They face the biggest hurdles to returning to what passed for normality in the poverty-stricken, drug gang-controlled slums. The Brazilian government has rushed to try to take control after the floods, aware it is under increasing scrutiny as it prepares to host the football World Cup across the country in 2014 and the Olympics Games in Rio de Janeiro in 2016. Officials issued reassuring statements, saying neither sporting event was likely to face such a disaster because neither would be held during Brazil's rainy season.

But the floods have highlighted the country's daunting challenges to upgrade its infrastructure, reduce widespread crime and overhaul a police force widely acknowledged as one of the most corrupt in the world. "The World Cup and Olympics could be great for us if the government finally does something for the people," said Rogerio Rodrigues, who helps to run the Two Brothers Foundation, an educational non-governmental organisation in Rocinha, the biggest favela in Rio de Janeiro.

Flooding caused mudslides and exposed tree roots and fresh red earth in Rocinha's steep, hillside streets and alleys. At other, even poorer favelas, long neglected by authorities, shacks and houses were swept away. Dozens of homes built on top of a rubbish dump crumbled down a hillside in Niteroi, a town just across the bay from Rio de Janeiro. Wastewater has flowed down from the favelas to southern Rio, where the city's elite live and play on the world-famous beaches of Copacabana and Ipanema. Brazil's economic inequality rate ranks among the highest in the world, with an estimated one per cent of the population owning 50 per cent of the wealth.

Eduardo Paes, Rio's mayor, ordered nearly 50,000 people to evacuate the favelas. The city plans to spend more than one billion reals (Dh2bn) on relocation, reconstruction and reforestation. "In favelas built on flat ground, the water was 1.5 metres high. Now the water's gone, there's 30cm of mud, with animals and garbage buried in it," said Nanko van Buuren, who heads the Brazilian Institute for Innovations in Public Health. "Diseases such as cholera could spread."

A focus on reforestation to prevent mudslides has led favela residents to hope the authorities will abandon any lingering plan to build three-metre-high walls around some of their neighbourhoods. The idea of walls, long resisted by human rights and favela activists, was ostensibly to protect forest lands, but some saw it as a way to further divide rich and poor. "The people want reforestation, not big walls around them," Mr Rodrigues said.

Even before the floods, life was tough in the favelas, where rival drug gangs regularly fight gun battles with each other, with militias consisting of retired or off-duty police officers and with the regular police forces. Just a few weeks after the Olympic committee's announcement in October that Rio would host the 2016 games, suspected drug traffickers shot down a police helicopter, killing three officers.

The city hopes to emulate the success of Rudolph Giuliani and has hired the former New York mayor as an adviser following his success in reducing crime in his city in the 1990s. Rio also hopes to have a permanent police presence in 40 favelas by the end of this year - and all of them by 2016 - under a "pacification" programme. It is sending police officers fresh out of the training academy, rather than seasoned officers more likely to be corrupt, to impose law and order, favela by favela.

The city believes a complete eradication of drug trade would be impossible, but it does hope to wrest control of the neighbourhoods from drug lords. Along with the police operations, the city plans to provide greater access to social services, such as health and education, and investment in infrastructure, such as sewers and electricity. Mr Rodrigues had high hopes for the pacification programme after witnessing years of neglect in the favelas.

"After one very bad gun battle that killed seven people in 2002, I remember rich socialites coming to us but all they did was hand out flowers and candy to the kids," he said. "If that's all they want to do, it's best if they just leave us alone and we will try to look after each other." @Email:sdevi@thenational.ae

COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

U19 WORLD CUP, WEST INDIES

UAE group fixtures (all in St Kitts)
Saturday 15 January: v Canada
Thursday 20 January: v England
Saturday 22 January: v Bangladesh

UAE squad
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly, Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya Shetty, Kai Smith

Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

The specs

Engine: 3-litre twin-turbo V6

Power: 400hp

Torque: 475Nm

Transmission: 9-speed automatic

Price: From Dh215,900

On sale: Now