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Crime Supplants Economy as Brazilians’ Top Worry, Rattling Lula

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(Bloomberg) — Crime has surged to the forefront of Brazilians’ minds in recent months, supplanting economic issues as their top concern and sparking consternation inside President Luiz Inacio Lula da Silva’s administration over how to respond.

Roughly 60% of Brazilians now rank crime as the biggest issue facing the country, according to a March survey released by AtlasIntel, four times the share that said it was the economy. The worries have helped drive overall approval of the leftist Lula — whose winning 2022 campaign focused largely on rebuilding the economy and combating poverty in the wake of the pandemic — to the lowest levels of his term.

Brazil has long suffered from alarmingly high rates of violence, and rising concerns about security are hardly unique in Latin America. Crime has come to dominate the region’s politics, driving many leaders to begin mimicking the hard-line approach of El Salvadorian President Nayib Bukele.

What separates Brazil from many of its neighbors is that its overall number of homicides has been falling: The country experienced 47,398 murders in 2022, about 10,000 fewer than it had just four years prior, according to the most recent data available the Brazilian Forum of Public Security, a research organization.

Read More: Bukele’s Brutal Crime Crackdown Gets Mimicked in Latin America

Other forms of crime, however, have become more common, experts say, while the end of the pandemic and the Brazilian economy’s better-than-expected performance last year have caused the public to return their focus to other hot-button issues.

“The irony right now is that Brazil is actually doing better than it has in years on economic grounds and in terms of political stability,” said Robert Muggah, co-founder of the Igarape Institute, a think tank in Rio de Janeiro. “Yet, that gives space for people to be preoccupied with other issues, including public security.”

While Brazil has avoided the sort of homicide explosion that Ecuador has seen, it has not solved lingering issues that helped Lula’s right-wing predecessor, Jair Bolsonaro, win the 2018 election on the back of campaign promises to take an iron-fisted approach to public security.

Organized criminal groups still exert control over swaths of major cities like Rio de Janeiro, and battle for control of drug and smuggling routes from jungle borders to urban ports.

“The pandemic hit and we stopped talking about it,” said Joana Monteiro, a professor of public policy at the Getulio Vargas Foundation in Rio de Janeiro.

Headline-grabbing incidents related to those problems have helped return the focus to crime, including the torching of public buses by organized criminal groups in Rio last year and the escape of two inmates from a maximum security prison in northern Brazil in February. The fugitives, who took part in the country’s first prison-break of its kind, remain at large.

Read More: Rio Ratchets Up Crime Surveillance to Keep Streets Safe for G-20

Available data also suggests that criminals’ tactics are shifting. While Brazil saw a big reduction in robberies since the pandemic, embezzlement and phishing scams — known locally as “golpes” — have exploded.

Many of the crimes that most affect Brazilians’ perceptions of public security, meanwhile, are likely under-reported. A recent survey showed that nearly one of every three residents in Sao Paulo, Brazil’s largest city and business capital, have had their cell phone stolen — occurrences so common that many victims never report them to police.

Lula Concerned

In a nation as divided as Brazil, political leanings also have large effects on how citizens perceive the security situation, experts say. Leftist leaders who typically focus their messages on root causes like inequality — or avoid the subject altogether — often face backlash on public security, and polls show that Brazilians routinely rank Lula’s government as weak on crime.

Bolsonaro and his allies in congress and key governorships have seized on the issue, continuing to advocate for more lethal responses to criminals, including by doing more to empower the police.

Privately, Lula has complained to cabinet members that his government is losing the narrative on public security to critics, according to a people familiar with the conversations who requested anonymity to discuss the matter.

“Right or wrong, these messages resonate, especially to far-right supporters who are paranoid that the situation is deteriorating,” said Muggah.

That is the case even in Latin American countries with far lower rates of insecurity. In Chile, the perception that President Gabriel Boric is weak on crime is one of the factors that have pushed his popularity below 30%, while Argentina’s Javier Milei won a hard-fought election last year thanks in part to his law-and-order platform.

With municipal elections just months away and no major policy changes planned, Monteiro said the debate over crime in Brazil is only bound to get louder before the next presidential race in two years.

“It’s going to be a key topic not only this year but in 2026,” she said.

–With assistance from Simone Iglesias, Beatriz Amat and Robert Jameson.

 

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Business

A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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