Abstract
The second phase of the Porto Maravilha project went through an inflection period in 2017, when the consortium Porto Novo—private entity and operator of the venture—paralyzed the maintenance and operation services in the area. Porto Novo demanded the CDURP, a company of Rio Municipality responsible for managing the whole operation, for R$ 6 million (reais) in the court, alleging breach of contract. Despite the services reactivation in November of 2017, this episode uncovered a break in the political coalition that manages the country’s largest urban operation and raised questions about the risk distribution. The serious financial crisis in 2015 caused FIIPM illiquidity, the fund responsible for resources. For this reason, the Municipality paid the cleaning and maintenance of the area, dismantling the official speech that the arrangement wouldn’t jeopardize public resources. This article intends to explain two elements. On the one hand, we want to test the hypothesis that the coalition rupture has brought to the fore a diversity of actors, in addition to the public–private coalition. The second is that the state acts as an enabler of the process, a sort of “state by contract” that guarantees the financial security of private agents, to the detriment of local resources.
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Notes
- 1.
To understand the debate about the availability of federal land transferred to the Municipality for the Porto Maravilha operation, we recommend Tuanni Borba’s chapter “Institutional Analysis of the Secretariat of Federal Property (SPU)” in this book.
- 2.
FGTS is a fund that belongs to Brazilian workers as guarantees of unfair dismissal or any cause of unemployment. It is a fund guaranteed by employers and corresponds to 8% of the salary of each worker. The FGTS is administered by the Federal Government through Banco CAIXA Econômica Federal. CAIXA has the faculties of managing and investing in real estate funds, ensuring the provision of funds for certain urban programs and policies, such as the Minha Casa, Minha Vida Program, for example.
- 3.
During the first phase of operation, from 2010 to 2016, this model allowed the development of initial works such as the construction of two road tunnels, the overthrow of Perimetral Avenue, the construction of two museums (Rio Art Museum and Museum of Tomorrow), 70 km of reurbanized roads and 650,000 m2 of sidewalks, among other related works. The second phase would be characterized by the construction of large real estate developments but it is the phase that faces the most profound stagnation as we will analyze in this chapter.
- 4.
All the reports by trimester are available directly from the CDURP website at this link: https://www.portomaravilha.com.br/trimestrais/relatorios/.
- 5.
This understanding has been highly consecrated in Political Science from the various meanings of rational choice theory that focuses on actors. This approach came from the economic understandings of political phenomena, thanks to the contributions of Antonhy Downs, Mancur Olson and George Stigler.
- 6.
Report available at: https://www.portomaravilha.com.br/relatorios_trimestrais/.
- 7.
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Meza, H. (2020). Porto Maravilha: The Utopia Crisis After the Global Euphoria. In: de Queiroz Ribeiro, L.C., Bignami, F. (eds) The Legacy of Mega Events. The Latin American Studies Book Series. Springer, Cham. https://doi.org/10.1007/978-3-030-55053-0_6
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