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The Diesel Apocalypse

The Diesel Apocalypse

Supermarket shelves lay empty, lawmakers fled a capital city running low on fuel and food, airports shut down, gas pumps ran dry, and a billion chickens clucked on the verge of death from starvation. This Mad Max scenario has played out in Latin America’s largest economy in recent days as Brazil’s truckers went on a nationwide strike over rising fuel prices, blocking hundreds of roads with their rigs.


For years, the Brazilian government subsidized fuel, but starting last year it decided to let fuel prices respond more freely to global oil prices in order to balance the books at the state oil company Petrobras. While that worked for a while, the recent surge in crude prices and a weakening currency combined to clobber Brazil’s truckers, and onto the roads they went. The government called in the army, but the truckers were unmoved. On Sunday, President Michel Temer (of the vaunted 5 percent approval rating) agreed, at a cost of close to $3 billion, to reintroduce diesel subsidies for two months.

The upshot: While Brazilians were split over whether to support the paralyzing strike, furor at the government and a refusal to pay higher gasoline prices is one thing that most agree on. One reason they don’t want to pay a cent more is because they reason that a venally-corrupted political class is probably stealing their money anyway. Before you raise our taxes or cut our subsidies, they are saying, stop siphoning our money into your pockets. As Brazil hurtles towards a pivotal election defined by anti-establishment anger, the fuel apocalypse shows just how broken the country’s social contract is.

No respite: Despite the partial truce with the truckers, Brazil is slouching towards a fresh crisis this week as the country’s oil sector workers threaten to strike starting on Wednesday.

Meet Alessandra Cominetti, a recipient of MIT Technology Review Magazine's Innovators Under 35 award. As a lab technician at Eni's Research Centre for Renewable Energy in Novara, Alessandra has devoted her career to finding new solutions and materials to optimize solar energy. Much like the serendipitous encounter that resulted in her employment, her eagerness and willingness to try new things allowed her to stumble upon a material for the creation of portable solar panels.

Watch her remarkable story on the latest episode of Faces of Eni.

Joe Biden has vowed to radically change the US' approach to foreign policy and international diplomacy should he win next week's election.

But a lot has happened in four years under Donald Trump that could impede Biden's ability to simply return to the status quo ante. How different would US foreign policy really be under a Biden presidency? What will the two-term former vice president likely be able to change, and what's bound to remain the same, at least for now?

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Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis

Should big business care about small business in these times?

The answer is yes and for many reasons. First, small business is the lifeblood of our economies. 45% of employment in emerging countries and 70% in the OECD comes from small and medium enterprises. Moreover, these enterprises have been badly hit by the crisis. Surveys indicate as many as 50% of European small to medium enterprises feel they may not survive over 12 months. While SMEs are relying on government support, larger companies do have a role to play. After all, this includes prioritizing small business and procurement by locking in demand for multiple years, thus facilitating access to good credit, paying receivables to small business in time and where possible, ahead of schedule. Cash flow matters most when you're small. Looking out for small businesses that have lower resilience. For example, financial institutions can lend more and in doing so, ensure deeper customer relationships in the future.

In his latest Financial Times op-ed, Martin Wolf argues that the US global role is at stake in this election and that a Trump re-election would undo America's legacy of democratic leadership in the world. Ian Bremmer and Eurasia Group's Jeffrey Wright grabbed the Red Pen to argue that a Trump presidency exists in part because of Americans' rejection of the US's post-war leadership role, and these feelings run deeper than the article suggests.

Today, we're taking The Red Pen to a recent op-ed published in The Financial Times from my good friend, the chief economics commentator Martin Wolf. Martin argues the global role of the United States is at stake on November 3rd, and that a Trump reelection would undo America's legacy of democratic leadership in the world. There's been a lot of this sort of thing recently. I know, we did it once, but if we do it twice, it's all over and I'm not there. To be clear, we don't totally reject what Martin is presenting in this piece. Rather, we'd argue that a Trump presidency exists because there were feelings that were present in the United States before he came along and they run a lot deeper than the article suggests. In other words, it's really not all about Trump.

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"The top priority will be to announce to the world that the United States they've known for decades is back." Former top Obama diplomat and current CEO of the think tank New America Anne-Marie slaughter predicts an American revival on the global stage if Joe Biden wins the presidency. But at a time when the United States has never been more divided, can any nation, even the world's most powerful, be a global leader if it cannot even keep its own house in order? Ian Bremmer's conversation with Slaughter is part of a new episode of GZERO World.

Watch the episode: How a "President Biden" could reshape US foreign policy

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