Vamos dar um Jeito

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Vamos dar um Jeito

Msc Thesis

Author K. Noppert (s1508113) University of Groningen

Faculty of Economics and Business January 2008

University supervisors

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Preface

Having visited Rio de Janeiro in July 2006, I got to know a little bit about Brazil and its culture. Just when I was thinking about topics for my master thesis, Mr. Pennink showed me an interesting article written by Fernanda Duarte, called Exploring the interpersonal transaction of the Brazilian Jeitinho in Bureaucratic contexts .

Having read this article we both found it very interesting and therefore decided to develop a research question about Jeitinho and research this topic itself in Brazil. One of the reasons for this was that Mr. Pennink and Mr. Neuijen would supervise the international study project

(ISP) for five weeks in São Paulo and Rio de Janeiro. This gave me the opportunity to be

supervised on the research spot itself. The research in Brazil took place in May and June 2007 in São Paulo and Rio de Janeiro and during my stay there I got some great support from several people.

First of all I want to thank my supervisors Bart Jan Pennink and Bram Neuijen for their guidance in Brazil and the Netherlands. Especially the guidance in Brazil I always found very interesting because we discussed the topic in the country of Jeitinho itself! Also I want to thank the Dutch and Brazilian interviewees for providing me data and information and both the consulates in São Paulo and Rio de Janeiro for providing me contacts. Lastly I want to thank my Brazilian friends in São Paulo and Rio de Janeiro for their hospitality, feedback and allowing me to use their personal network.

Kees Noppert

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List of figures

Page #

Figure I Research model Jeitinho 12

Figure II 1st Conceptual model Jeitinho 22 Based on the literature review

Figure III 2nd Conceptual model Jeitinho 34

Based on the Dutch review

Figure IV 3rd Conceptual model Jeitinho 40

Based on the Brazilian review

Figure V Road to contributed review 41

Figure VI Contributed model Jeitinho - Brasil factor and obstructions 42 Figure VII Contributed model Jeitinho Find a way 43 Figure VIII Contributed model Jeitinho Way of solutions 44 Figure IX Contributed model Jeitinho - Results 45 Figure X Contributed model Jeitinho - Perception 46 Figure XI Contributed model Jeitinho Consequence 47 Figure XII Existence of Jeitinho vs. Brasil factor and Obstructions 48 Figure XIII Purpose of Jeitinho vs. Find a way 48 Figure XIV Internal / External input to Jeitinho vs. Way of solutions 49

Figure XV Results vs. Results 49

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1. Introduction

This section is a short preview on Jeitinho Brasileiro and provides an idea how Jeitinho Brasileiro is used. The research question and the sub questions indicate where this research is about and what the research aims to answer. Also it gives a preview how the thesis is structured and why it is structured like this.

I used two examples to give the reader an idea of how Jeitinho Brasileiro is used. The first example comes from the Brazilian history and therefore also shows that this had it tracks on Jeitinho Brasileiro. The second is a present example and related to the bureaucratic context.

Jeitinho Brasileiro feijoada

Jeitinho Brasileiro in a bureaucratic context

There is literature written about Jeitinho Brasileiro but in a general way. This research aims at Dutch and Brazilian business people and therefore distinguishes from previous research. The focus is what the concept of Dutch and Brazilian business people of Jeitinho Brasileiro can add to existing literature.

African slaves brought to Brazil by the Portuguese colonizers found a way to survive. They used the left over parts of pork s that were not eaten by the slave traders. In combination with the cheap side dishes rice, beans and farofa they ate the noose, the ears, the tongue and the tail of the pork. Nowadays it is one of the most typical dishes Brazil has and is called feijoada (www.brazilbrazil.com).

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Research question

What is the concept of Jeitinho Brasileiro in daily business for Dutch and Brazilian business people and what does this concept add compared to the literature review.

To answer the research question, four sub questions are formulated:

What is written in literature about Jeitinho Brasileiro?

What is the view of Dutch business people on Jeitinho Brasileiro? What is the view of Brazilian business people on Jeitinho Brasileiro?

What are consequences of Jeitinho with respect to this new idea of Jeitinho Brasileiro?

The research question is formulated in this way that it contains different views on Jeitinho Brasileiro. First of all Jeitinho Brasileiro is explained by written literature to develop a view and idea of Jeitinho Brasileiro. Afterwards the Dutch view and Brazilian view, given by business people from the Netherlands and Brazil, provides an idea how it differs from the literature view. This way the Jeitinho Brasileiro is viewed from different respects and therefore the way of researching can be seen as a way of developing some new thoughts about Jeitinho Brasileiro.

The introduction already gave an idea about Jeitinho Brasileiro by providing two examples and by providing the research question it shows what the purpose of the thesis is. In chapter 2, a short overview of how Brazil developed to a formalistic country is described. Then in chapter 3 the research method is explained and why the research is set up like this. The literature review is provided in chapter 4. The Dutch review and Brazilian review are described in chapter 5 and 6 respectively. In chapter 7 the reviews are analysed and lead to the contributed review. As part of the contribution, consequences of Jeitinho are explained in chapter 8. The thesis ends with a short discussion, conclusion and reflection.

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How Brazil developed to a formalistic country

Brazil, South America s largest country, was discovered by Pedro Alvares Cabral from Portugal in the year 1500. The country s name comes from the word pau Brasil, which means Brazil wood. After the discovery Portugal imported large quantities of pau Brasil, the land was divided into fourteen areas and due to lack of governance Salvador became the first capital city. In the beginning of the nineteenth century it was Napoleon Bonaparte which influenced the historical pattern by invading Portugal. The royal family and members of the government escaped to Brazil and stayed there for about thirteen years. Those years Portugal was governed from Brazil and this change made Brazil able to do business with other countries. King João VI went back to Portugal in 1821 and his son Pedro became regent. One year later Pedro declared Brazil its independency. After Pedro I his son Pedro II was crowned and he reigned the next fifty years. Pedro II was the last emperor and was followed up by several presidents under which Brazil eventually developed rapidly and became an industrialized country. Although Brazil is independent nowadays, the colonial history caused for visible elements that remind to the Portuguese colonization. Three elements show Brazil its historical roots are related to how parts of the system work nowadays.

The first element is respect for the state. As the government of Portugal in the past had a central function in the peoples life s, it became the same in Brazil. If there was anything that had to be solved, people looked to the government whom had to solve the problem. Rosenn (1971) calls this the patrão, which is the Portuguese word for patron and plays the role of protector. This collective dependence is still present in Brazil and is underlined by what respondents, Dutch and Brazilian, told me during the interviews1. Also people in general like to wait on decisions made by the government or management and therefore they let the initiative to others. As from the above, Brazil can be seen as a formalistic country. Rosenn (1971) describes formalism in Brazil as follows: the concern with authenticity and verification is both impressive and oppressive. According to Belmiro Castor (2002), Brazil is formalistic economically and institutionally. Economically by saying that Brazilian capitalists enjoy protection from the state and the existence of a large group of state owned companies.

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Institutionally formalistic because the state plays a role of authority and governs with a lot of laws and regulations. Finally the formalism can be seen in the political sphere where public bureaucrats enjoy a powerful role.

The second element is the attitude towards profit making. The institutions church and bureaucracy, as a result of the colonization, were not in favour of profit making. There was no place for promoting entrepreneurship, only the state was promoted as Belmiro Castor (2002), mentioned. That especially the bureaucracy still plays an important role became clear during the interviews. For companies the high level of bureaucracy is still one of the biggest hurdles2.

The third and last element is improvisation. Brazil is called the country of improvisers and finds also its roots in the colonial history. When King João VI came to Brazil, he did not only take his family and policy makers with him, but also an enormous change in institutions took place. The idea of institutions from Portugal, e.g. administrative and judicial, were copied and applied. However, when the King and his staff left Brazil again, new institutions could be applied and therefore the Brazilians needed to improvise on this. Another period in where had to be improvised, was when Pedro II could not regulate the country yet because he was not old enough. That Brazilians improvise a lot is still feasible nowadays. The way people improvise can be seen on the streets of São Paulo, Rio de Janeiro and Salvador where I spend time for my research. People try to make a little money in every way they can.

To close this chapter I want to emphasize the role of the colonial period by the Portuguese and therefore the Brazilian history had on the way Brazil is governed and regulated nowadays. Formalism as a result, developed low commitment to civic institutions and led to a population in where people were admired by creating a way to deal with this formality. Dealing with formality and bureaucracy and the fact that improvising is important in Brazil are for me signs what this study is about, namely Jeitinho. Now chapter three goes into the research methodology of the research which shows how the research has been set up. The research model provided in this chapter shows the steps taken in the research. Also it deals with how the interviews are held and the data implementation.

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3. Research methodology

3.1 Process of research

To discover the idea of Jeitinho three steps in this research were important. The first step was gathering literature to create a first broad description of Jeitinho and this resulted in a first conceptual model of Jeitinho. The second step was the research in Brazil itself. Based on the literature review interviews with Dutch business people were held to generate the second review of Jeitinho. The third review was generated by the view that Brazilian business people as respondents had on Jeitinho. The Brazilian review is based on both the literature review and the Dutch review. These three reviews of Jeitinho resulted in a contributed review on Jeitinho. This contributed review represents how the views developed and shows therefore the contribution in relation to the literature review; step 4. From the contributed review, concepts that do indeed contribute to the idea of Jeitinho are analysed as consequences in chapter 8. This section therefore deals with the fourth sub question, mentioned in the introduction. It provides insights in the consequences of Jeitinho with respect to this contributed idea of Jeitinho. The research ends with a discussion and conclusion section. The idea of my research process on Jeitinho is illustrated in figure I below.

Figure I: Research model Jeitinho

Step 1 Literature review; chapter 4 Step 2 Dutch review; chapter 5 Step 3 Brazilian review; chapter 6 Step 5 Consequences chapter 8 Step 6

Discussion and conclusion; chapter 9

Step 4

Contributed review chapter 7 Comparison literature, Dutch and Brazilian review

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3.2 Type of research

The research is qualitative, because the research is about gaining new knowledge. According to Strauss and Corbin (1998) qualitative research and methods can be used to explore substantive areas about which not much is known, to gain novel understandings, or about which little is known, to gain new understandings. The qualitative method also deals with the process of data: this is when field notes and tape recordings for example are collected (Miles and Huberman, 1994). In my case this was mainly tape recording which I used to obtain the data.

In literature there is knowledge about Jeitinho but with the view of Dutch and Brazilian respondents this knowledge can be extended. By having these three different views on Jeitinho and creating a new contributed view, that it is what the grounded theory is about (Tesch, 1990 in Miles and Huberman, 1994). According to Glaser the basis of the grounded theory is that the researcher does not have a theory in mind, starts with an open view and that a theory is developed and emerged from the obtained data. Strauss and Corbin (1998) add that theory is derived from data, systematically gathered and analyzed through the research process. They also introduced more clearly the role of sensitising concepts. This is what has been done in my research in the sense that every step helps to generate the contributed view of Jeitinho.

3.3 Interviews with Dutch and Brazilians

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This meant that I did not confront the Brazilian respondents with the results of the Dutch respondents in a way that it would influence their idea of Jeitinho or even that they might feel offended by the Dutch view.

To get in touch with the respondents I used contact details of companies available on the internet, attended a business meeting organized by the Dutch consulate and bilateral chamber of commerce, informed at the Dutch consulate in São Paulo and Rio de Janeiro and also I used my own personal network. After explaining the purpose of the interview, namely that it serves to gather data for my thesis, we agreed on recording the interview, the time of the interview and that the data will be anonymously published in the report. Two companies did not give permission to record to interview; this was because of the company s policy. The time differed per interview, some questions were not applicable to the respondent and other questions appeared to be very interesting for the respondent and therefore more time was spend on those questions. Due to the sensitivity of the outcomes, names of respondents and the companies they work for are not mentioned. At the time of the interview itself I always provided the structure of the interview in order to have a schedule for the both of us. The interviews with Dutch and Brazilian business people were at different types of companies. The reason that I choose for different kinds of companies is to provide a fair view on Jeitinho. In total I visited nineteen companies: multinational companies, medium sized companies and small business companies. In the results I take into account that some situations or behaviours are related to the kind of company. The total number of respondents was twenty one; from two companies I interviewed both a Dutch and a Brazilian respondent.

3.4 Data implementation

Each interview is analyzed by naming concepts and from the concepts, categories were formed. The purpose of creating categories by concepts was reducing the number of units with which the author is working. In addition, categories have analytic power because they have the potential to explain and predict (Strauss and Corbin, 1998). A concept can also become a category. This is when they represent not only individual s or group s story but rather the story of many persons or groups. (Strauss and Corbin, 1998).

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The second step in the process of open coding was labelling, and is used as a technique to identify concepts that function to generate the categories. The process of open coding is the analytic process through which concepts are identified and their properties and dimensions are discovered in data. Concepts are the building blocks of theory, stand for phenomena and thereafter lead to categories (Strauss and Corbin, 1998).

In the results section, which is called the review of Dutch and Brazilians on Jeitinho Brasileiro, the categories are explained by the concepts that created the category. Whenever there is a concept used to explain something, I refer to the appendix in where the concept and citation is provided. When for example (1.1) is used it means respondent 1 and concept 1. Logically the Dutch review has references to the Dutch perspective of concepts and quotations in appendix II and the Brazilian review has references to the Brazilian perspective of concepts and quotations provided in appendix III.

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4. Literature review on Jeitinho

The next step in this research is the literature review on Jeitinho. The literature review is about how in literature Jeitinho is interpreted and to what extent there are similarities or differences. First some definitions by different authors are provided to show a first thought of Jeitinho. Secondly literature will be discussed by different topics: History of Jeitinho, General background Jeitinho today, Jeitinho, personal contacts and strangers, Need for breaking the law or not and positive and negative perception. The literature then is classified into categories which can be seen in the first conceptual model, figure I.

Website Gringoes.com:

Brazilian way of resolving things. Brazilians use the expression dar um Jeito which means to find a way, to fix something or a situation or to work things out (www.gringoes.com).

Belmiro V.J. Castor:

Skillful, smart astute way of achieving something, especially something that seems particularly difficult to most people (Belmiro V.J. Castor; Houaiss Dictionary of the Portuguese Language).

Page and Zimmermann:

Knack or a clever dodge. A rapid, improvised, creative response, law, rule, or custom that on its face prevent someone from doing something (Joseph A. Page; Augusto Zimmermann; Jeitinho, Brazil's creative way to break the law and feel virtuous about it).

Duarte and Zimmermann:

Inherently personalistic. It requires a certain type of 'technique' involving the conscious use of culturally valued personal attributes (e.g.: a smile, a gentle, pleading tone of voice); it seeks short-term benefits; it is explicitly acknowledged and described by Brazilians as part of their cultural identity. So deeply entrenched is this practice in Brazil that it has become intertwined with constructions of Brazilians (Fernande. Duarte; Augusto Zimmermann; Jeitinho, Brazil's creative way to break the law and feel virtuous about it).

Levine:

Jeito s in the end say more about the system that rationalizes their value than about the theories spun about them. Rationalizing the Jeito as a flexible tool to expedite action from an obdurate system implies acceptance of the unfair advantages given to those who know how to bypass the system or to gain speedy treatment, especially when payoffs are involved (Levine, R.M. 1997. Brazilian legacies. M.E. Sharpe, Armonk, N.Y., 224 pp. 1997).

Amado and Brasil:

Brazilians use Jeitinho as the diminutive of Jeito. The literal translation for Jeito is way or manner. Jeitinho does not mean only way and manner, but rather, a broadly fresh and intimate game (Amado, G. and Vinagre Brasil, H. 1991. Int. Studies of Mgt & Org., Vol. 21, No. 3, pp. 38-61).

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4.1 History Jeitinho

As appears from chapter 2, how Brazil developed to a formalistic country, the state and elite have always played a dominant role in the Brazilian history. The elite, first from the colonizers and later the elite of the successors always had been the citizens of the country, pointing at the exclusion of the population. Due to this fact the population, who were obviously not happy about this, took revenge by creating their own rules and codes in their social life (Belmiro Castor 2002). This process was based on Jeitinho and informality among others. Groeschel (2003) and Rosenn (1971) agree with Belmiro Castor saying that there was a historical lack of government attention to the needs of the citizenry. As a result of this lack the population felt like doing it their own way. Rosenn emphasizes the inheritance from the Portuguese colonizers, legalism and formalism and as a second reason for the existence of Jeitinho he points out personalism. An example of this is that in the slavery period commanders provided slaves with personal favours and or privileges in exchange for the loyalty of slaves.

4.2 General background Jeitinho today

According to Alexandra Freitas (1997), there are five basic cultural traits that unify Brazilians. The five traits are hierarchy, personalism, malandragem, sensuality and adventurer. Next to lack of respect for rules, Jeitinho belongs to the third trait, malandragem. This term is also known as the malandro in Brazil. The malandro acts as a Brazilian hero in films and uses Jeitinho when he is in a difficult situation in where he is forced to manipulate. This trait is easier translated as hero without morals . Freitas (1997) not only classified Malandragem as part of Brazilian cultural traits but also states that twenty percent of the scandals in Brazil can be related to malandragem, in where Jeitinho plays an important role. If there is a relation to scandals there would be logically a relation to corruption and breaking the rules and laws on purpose. Later I will get to this point, whether Jeitinho is necessarily breaking the rules or not.

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In other South American countries there is also something like Jeitinho. In Chile they name it piluto (Victor from Chile, friend at the Hi hostel in Sao Paulo, 2007) and in Argentina it is called la coima (Dutcham 2007).

Furthermore, Freitas (1997) describes Jeitinho as a way of accomplishing things which can be done by bribery or a simpler manner like a smile that influences the other person in a positive way in order to get the result wanted. The simple manner Freitas (1997) talks about is also observed by Smith (2003) and Groeschel (2003). Smith mentions that with the fall of corruption levels the need for more personal harm is important for a successful Jeito. The possibility of trying to get a certain degree of empathy contributes in a positive way as well, according to Groeschel. Levine (1997) however, describes Jeitinho quite the same as being creative and bending the rules. Although, in his point of view he does point out more the role of the government and bureaucracy. He describes as follows: the way to grease the wheels of government or the bureaucracy, so as to obtain a favour or to bypass rules or regulations. Duarte (2006) also points out bending or breaking the rules to get things done in bureaucratic contexts. According to Amado and Brasil, gambiarra is also part of Jeitinho. With gambiarra the final solution is always postponed. It is described as a kind of non-professional, cheap and quick repair (Paulielo, 1984). As the solution is postponed this can be seen as a negative element, while flexibility is a positive element of gambiarra.

4.3 Jeitinho, personal contacts and strangers

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By the pistolão Belmiro Castor (2002) means not just friends but influential friends, friend of a friend and literally it means someone with power and force. To get to know friends with power Brazilians create a network around them and Brazilians are said to be obsessed with relationships and personal bonds according to Amado and Brasil (1991).

4.4 Need for breaking the law or not

As appears from the above, there can be a Jeito in the sense of bribery or without. The use of a Jeito without paying any money for it is obviously the most attractive way. In case there is no other possibility the exchange of money is also possible and therefore Jeitos fall in between the permitted favours and on the other hand the by the law forbidden favours, which we can call corruption according to Levine (1997). Levine s definition about Jeitinho, to bypass rules or regulations, does not implicitly say that it is breaking rules or regulations. Ramos (1983) and Campos (1960) are also not talking about breaking the rules in my opinion. They define as follows: a Brazilian process of problem managing, despite the contents of the rules, codes and laws . In an article by Zimmermann (2006), Joseph Page talks about breaking formal rules. Both bending and breaking the rules are characterized as Jeitinho by DaMatta (1983) to deal with a problem as a strategy.

4.5 Positive and negative perception

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Although with corruption businesses can be very efficient and profitable, it is questionable however what the ethic point of view is inhere. As for the literature I can say that there is rather a negative perception than a positive.

4.6 Classification into categories

This literature review on Jeitinho ends by classifying the provided literature into categories. To do this I named dimensions, in this research better called as concepts, and classified them into logical categories. The classification into these categories is done because it creates a clear overview about the way Jeitinho works, based on my own interpretations of Jeitinho of the literature review. The concepts are explained by category; the third and fourth categories only differ in the sense that the third deals with the internal input and the fourth deals with the external input to Jeitinho. In my opinion, internal input is needed first and external input takes place in the next phase. As follows the categories explained by the concepts:

4.6.1 Existence of Jeitinho

Brazilian culture, role of government, bureaucracy and complex system, lack of respect for rules.

All the concepts have in common that they can be related to the history of Brazil. Due to the Portuguese colonization bureaucracy was created and the Brazilians had to deal with that. That is why Jeitinho became part of the Brazilian culture and it can be seen as their identity. What makes it even more special is that Jeitinho is an integral part of Brazil s legal culture. The same counts for the role of the government and bureaucracy, both are related to the history in the sense that they still play a dominant role in the society. So in order to benefit from Jeitinho one needs to get around the governmental and bureaucracy complexities. Also historically determined is the lack for rules.

4.6.2 Purpose of Jeitinho

Way of accomplishing things and resolving things, creates opportunities to get around difficulties, get things done in bureaucratic contexts.

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4.6.3 Internal input to Jeitinho

One needs expertise, talent and the skills to see in what situation Jeitinho can be applied, one again needs to find the right moment and therefore be quick in applying a Jeitinho, personal harm Influencing an other person by a smile for example, creative, improvised.

To get around difficulties in bureaucratic contexts one should be aware of the level of difficulty of Jeitinho. Especially when it comes to the internal factors of using Jeitinho, the skill to use Jeitinho is based on talent and on expertise during ones life. It is definitely not something which can be learned easily. One needs to anticipate at the right moment and therefore be quick when the opportunity is there to go for a Jeitinho. To react at the right moment is hard to predict and therefore one also should have the skill of being creative and talent for improvising. One needs to make sure that the situation ends in a positive way; one can influence a person by a kind of personal harm by using for example a smile.

4.6.4 External input to Jeitinho

Bending the rules, breaking the rules, bribery and corruption, pistolão and influential friends, personal contacts and network, despachante, unknown people.

The other ways to get around difficulties are more external factors and therefore less personal. Some favours are done in exchange for money, when this is the case we talk about bribery and or corruption. In Brazil this is not uncommon; corruption is at all levels including the politics level. When bribery or corruption is the case then this is breaking the rules. On the other hand though, there is also bending the rules which can be done when rules are interpreted just differently. Furthermore the influence of the pistolão and influential friends must not be underestimated when it comes to help someone out in difficult situations. They are part of the network and personal contacts and really important for Brazilian people. Whenever situations can not be solved with help of personal contacts then unknown people and the despachante become important.

4.6.5 Results of Jeitinho

Short-term benefits, creates a degree of stability, gambiarra and flexibility, unfair situation.

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This short term period together with unfair situations, for example when it comes to personal interests and corruption, are experienced as negative side effects of Jeitinho.

This literature review on Jeitinho ends by providing a first conceptual model, figure II, which shows the categories and concepts. The conceptual model served as a guideline for the interviews with Dutch and Brazilians.

Figure II: 1st _{Conceptual model Jeitinho}

In the next chapter the Dutch review on Jeitinho is provided on the basis of the interviews with the Dutch respondents and a second conceptual is shown at the end of the chapter.

1. Existence of Jeitinho

- Brazilian culture - Role of government

- Bureaucracy and complex system - Lack of respect for rules

4. External input to Jeitinho

- Bending the rules - Breaking the rules - Bribery and corruption

- Pistolão and influential friends - Personal contacts and network - Despachante

- Unknown people.

5. Results of Jeitinho

- Short-term benefits

- Creates a degree of stability - Gambiarra and flexibility - Unfair situation

2. Purpose of Jeitinho

- Way of accomplishing things and resolving things

- Creates opportunities to get around difficulties

- Get things done in bureaucratic contexts

3. Internal input to Jeitinho

- One needs expertise, talent

and the skills to see in what situation Jeitinho can be applied

- One again needs to find the right moment and therefore be quick in applying a Jeitinho

- Personal harm by influencing an other person by a smile for example - Creative

- Improvised

1st Conceptual model: concepts of Jeitinho

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5. Dutch review on Jeitinho Brasileiro

This chapter shows the Dutch review on Jeitinho. As explained in the methodology section concepts from the interviews are used to create categories. The following categories are explained below by the concepts: Brasil factor , obstructions , flexibility , way of solutions , results , perception and consequence . The category Brasil factor (paragraph 5.1) represents the first category and this category shows what Dutch business people encounter in Brazil. The category obstructions , (paragraph 5.2) explains what the Brasil factor means for Dutch business people and the category flexibility (paragraph 5.3) shows how they can deal with that. The fourth category way of solutions (paragraph 5.4), explains the kind of way they can use to deal with the Brasil factor . Whether or not the result was effective or not is discussed in the results category (paragraph 5.5). The way the respondents feel about the result and the way the result is accomplished is dealt within the category, perception (paragraph 5.6). The last category, consequence (paragraph 5.7), discusses what measurements are taken in favour or disfavour of Jeitinho.

Above each category the concepts that are used in that category are mentioned. In the text I also refer to appendix II wherein a short description of the concept is given, classified per respondent. The chapter ends with a second conceptual model, figure III, wherein the categories and concepts are visualized.

5.1 Brasil factor

Brasil factor, burden of taxation, bureaucracy, documentation, fiscal complexity, granting of credit, high interest rate, high taxes, high labour costs, infrastructure, labour laws, labour protection, legal system, tax system.

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In comparison with European countries, the Brazilian bureaucracy seems almost impossible to get through (10.3) and from the administrative point of view it is very complex, which makes it hard to function (13.1); to hire an employee for example requires a lot of documentation, a lot of forms and documents need to be filled in (9.7).

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Taken as a whole, Brazil needs to invest in its infrastructure. At the moment there are no investments in infrastructure on long term production (10.9).

5.2 Obstructions

Delay, doubt the rule, fiscal bookkeeping, planning is never right, slow and slow process.

This category, called obstructions, I consider as the result of category 1, Brasil factor. Delays and a slow process are rather normal than exceptional. One respondent said that to start up his company took quite some time. It took him about 6 months before he arranged all the documents needed to start up his company (5.1). Everything is slow in Brazil, you just do not manage to arrange something fast (13.5). Brazilians are used to delays and have in a way more patience for postponements (2.5). In the mind of Brazilians when something is not arranged yet today, it can be arranged tomorrow or even next week (5.3). Reasons for delays are the importance of a decision and the amount of money that is involved. (2.4). This goes together with bureaucracy (5.11). Delays and a slow process are part of the culture shock, as a company you make a planning but it is never right. So what you do is taking into account delays already in your planning or scheme (2.2). As a result from administration and documentation, the fiscal bookkeeping is important in Brazil. The fiscal bookkeeping is quite different from other countries as it requires you to follow a primary registration on day level and monthly fiscal closing. The fiscal bookkeeping is independent from the economical bookkeeping (7.2). Applying new rules and norms often happen and therefore Brazilians have doubts about the rightness of the rule (6.2).

5.3 Flexibility

Acceptation, adaptability, always a solution, change the rule, find a solution, find a way, flexible approach of rules, flexibility, give it a turn, lack the rule, language, other solution, pass by the rules, problem solving, search for solutions, the way and a way.

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The Jeito translated is, I have found a solution, I have found a way or give it a turn (10.26 / 10.21 /10.24 / 9.9). Most of the respondents see the Jeitinho as the way (12.4), a little manner (13.15) or a Brazilian way of doing business (3.1). To be more specific, the Jeitinho is to find a way to solve a problem (8.8), a way to arrange things (10.21), to find an other way in order to pay less and one can find a way out everywhere (12.8 / 2.12). To find a way to solve a problem is most of the times to search for a different solution than the original solution (13.14). In Brazil rules are rules but if this rule does not work then the rules can be changed a little bit in order to make it work and eventually solve the problem (10.29). In other words, we do not need to keep up to the rules if this rule does not fulfil our needs (10.30). This is a flexible approach of rules, it is the way you interpret a rule and the way you try to make up something to go around the rule (4.7). As the amount of rules hinder, Brazilians are always in search of solutions (10.28) and people say that Brazilians always find a way to pass by all the rules that Brazil has (12.5). In fact everything is possible in Brazil. This is a main difference with the Netherlands. When you encounter something in the Netherlands then it is simply not possible, there is no way to solve this. In Brazil there is always a way to get something done you want and also to speed up something (2.3). Whenever something goes wrong, there is a way to solve it. The category way of solutions explains how (13.13).

To close this category I give one example to illustrate the acceptability and flexibility of Brazilians. The way Brazilians deal with language differences is a good example. Brazilians accept differences and are willing to understand you; despite you do not speak the language fluently. Together you will find a way to understand each other (10.7).

5.4 Way of solutions

Business gifts, corruption, creative, creative solutions, creativity, despachante, drama, emotions, exchange solutions, friends, friendly turn, informal network, informality, innovative, inventive, network, pedagio, relations, relationship building, takes time, tax dodge, tip, trust.

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To build up a network or relationships is easy in Brazil (8.3); but it takes time before a trust relationship is created and therefore one needs to invest in this (8.3 / 10.16). A business meeting for example does not immediately start talking about business, but it is more common to start with a coffee, a little chat and all that (9.5). Even when the meeting started already it might happen that a conversation shifts towards personal conversations and that you do not talk about the subject scheduled anymore. This is the networking and this takes time. In the beginning of a relationship it is superficial but later on the same relationship can become a friendship (9.6). What relationships in Brazil make very different from the relationships in the Netherlands is the fact that personal contacts and business contacts get mixed quickly (4.1 / 15.5) and that the informality is important in Brazil and part of Jeitinho (7.10 / 8.6). The informality in your network is visible when for example you want to discuss a decision again. By an informal situation you try to stimulate your network in changing what is already decided. Stimulating your network gives you opportunities to create a more influential position (7.6). Also there is more informality in relationships, towards clients for example (15.5).

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The despachante is someone who deals with the bureaucracy (10.4). Bureaucratic issues can be solved easier with the help of despachantes and due to the high level of bureaucracy; this is why despachantes are used a lot and that the despachante can be seen as a profession on itself (10.4). An advantage of letting the despachante do the work for you is that the despachante is responsible for everything he or she undertakes. When the despachante has to deal with a bureaucrat and pays the bureaucrat for a little favour, than the despachante is responsible for that (10.4). It is not you who is responsible; the despachante is getting paid for this responsibility (12.3). In fact the despachante does not break any rule, when for example he or she goes to a counter where a friend works as a bureaucrat and gets his papers signed back immediately (2.16). It might happen that the despachante does not know how to solve a problem, but in this case the despachante falls back on the informal network. Despachantes do have their own network of friends and each has its own specialized profession what makes it possible to solve all kind of problems (10.4). In dealing with bureaucracy the despachante can take care of a lot of work from you (14.6) and in some situations there is no way to do work without a despachante; in case of exporting products out of Brazil for example (12.3). So the use of despachantes brings advantages although one has to make sure that the despachante does not take over your business and that you loose control of the situation. Nowadays despachantes still play a significant role in the bureaucratic contexts, (6.3) although it is said that the amount of despachantes is reducing (3.10). When you read the part of relations and despachantes above you might think of corruption in some situations, and this way of thinking is right.

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You can do business with authorities and or companies and in a lot of situations a customer asks for his part. People think that they have personal rights (13.10). Very common things are the pedagio s and used quite often in business. Pedagio s are used to get in a project or to get through something. Before getting into a project, especially when it comes to semi-government, you already need to ask how much the pedagio is. In other words, how much do you have to pay to get in the project (5.10)? Although the pedagio s are very common, nobody wants to know about it because officially it does not exist. To give a tip is also a way to get in a project, especially in competitive markets this is the case (11.5). Corruption can not be taken away easily, but there are measurements taken by the government to reduce the level of corruption. Fact is that for the right price you can always speed up procedures and setting up your own company can be faster than the average time, as long as you pay the right price and find the right people who can help you with this (5.4). An other negative element of Jeitinho are tax dodges. Taxes are high, but there are no improvements visible in the society and that strengthens people in not paying their taxes (6.6). Some companies have a caixa dues. This is the second money till, but this money is not registered in the bookkeeping of the company. Over this amount of money taxes are not paid (7.9). Despite that Jeitinho Brasileiro is related to corruption as a way of solution, there are also ways that are more positive. Brazilians are very creative and inventive in a legal way as well. By being inventive, innovative and creative you can get things done and therefore find a solution (9.8 / 5.6). By naming a product a little bit different for example, a different tax rating can be applied for this product and therefore less can be paid (12.7 / 8.9).

It can be related to culture too, Brazilians are in general very creative while Europeans think more ahead (13.8 Creativity). Creativity is used to deal with a reactive situation. Also the emotions and drama are part of the positive side of Jeitinho Brasileiro (6.7 / 4.4). Using emotions can be useful when one wants to take a position when doing business or when one is negotiating with the local government (2.9).

5.5 Results

Culture, faster, hyperinflation, no solution, no structural improvement, no structural solution, problem solved, short term, short term solution, short term view and quick solution.

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Also it is said to be a quick solution where sometimes a little payment is involved (8.7). Although it depends what kind of solution is found to deal with the problem (10.8), most of the respondents say that the solution is short term oriented. When for example a certificate is needed it can be the case that first a temporal certificate is supplied instead of the official certificate. So the one that needs the certificate can work with this certificate and therefore for a certain period his or her problem is solved but in the near future the same problem arises when the official certificate is required (2.10). What is illustrated in this example is that the problem is shifted (9.11) and that the solution is not the final solution (9.10). Also it means that there is no structural improvement (6.4), simply because it is not the final solution and therefore it hinders a structural improvement (9.11 / 15.1). The short term orientation to solve problems by Jeitinho has to do with the short term view that people have (10.8). There is hardly any long term planning. The focus is too much on today, people do not think ahead and what is coming up in the next 20 years (10.10). One of the reasons that people are short term oriented is the hyperinflation (10.11). Also the short term orientation is part of the Brazilian culture. One example that was given was that people never projected in the long term. Employees projected only for the upcoming month, but did not think about the whole year (10.12).

5.6 Perception

Business culture, civil services, code of ethics, corporate image, corruption, cultural, culture, description, flexible approach of rules, grey area, legal way, mentality, perception, point of view, reality, shift of things, social and system.

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One of the respondents explicatively mentioned that this was also part of his role in Brazil, being an intermediate person between the headquarters office and the office in Brazil. This role is of that importance that little cases can be dealt within a quick way before it can evolve in damaging the corporate image (4.10). Terms as code of ethics and corporate image are more applicable for the bigger international and multinational companies than the small and medium sized companies. In general and especially the smaller and medium sized companies counts that they have to go with the system. European and or American companies often prefer to work without despachantes for example. However, then you work against the system so it is better to accept the things how they are and that there are people that take care of formalities (10.5). The Jeitinho is the diminutive of Jeito and is more Brazilian slang. When you use Brasileiro in combination with Jeitinho it has more to do with money (10.26).

5.7 Consequence

Communication prohibition, corruption, data linking, formalising, informal economy, online registration, reversed burden of proof and snowball effect.

To fight corruption and tax dodges, started on federal level (3.3), several rules are introduced to reduce corruption and tax dodges. As Jeitinho is part of corruption and tax dodges it means that there should be a reduce of the negative side of Jeitinho (3.2).

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Whether or not the measurements will help is left in the middle here, but for sure entrepreneurs and companies need to fulfil to more bureaucracy. If it makes doing business more difficult, entrepreneurs and companies might not want to register and therefore we can speak of a snowball effect (12.6). Opposite from this is that the government implemented a new tax system that is called symplus that is applicable for small business. The symplus tax system makes small business pay a fixed amount of tax over their turnover and is set up to stimulate formalism at the operational management (13.6). That there is a need for formalism can be seen by the size of the informal economy, on the streets in the cities for example (13.7).

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Figure III: 2nd_{Conceptual model Jeitinho}

Now chapter 6 deals with the Brazilian review on Jeitinho Brasileiro and will also end with a conceptual model wherein the concepts of the interviews are classified into categories.

1. Brasil factor - Brasil factor - Burden of taxation - Bureaucracy - Documentation - Fiscal complexity - Granting of credit - High interest rate - High taxes - High labour costs - Infrastructure - Labour laws - Labour protection - Legal system -Tax system 2. Obstructions - Delay

- Doubt the rule - Fiscal bookkeeping - Planning is never right - Slow - Slow process 3. Flexibility - Acceptation - Adaptability - Always a solution - Change the rule - Find a solution - Find a way

- Flexible approach of rules - Flexibility

- Give it a turn - Lack the rule - Language - Other solution - Pass by the rules - Problem solving - Search for solutions - The way - A way 4. Way of solutions - Business gifts - Corruption - Creative - Creative solutions - Creativity - Despachante - Drama - Emotions - Exchange solutions - Friends - Friendly turn - Informal network - Informality - Innovative - Inventive - Network - Pedagio - Relations - Relationship building - Takes time - Tax dodge - Tip - Trust 5. Results -Culture - Faster - Hyperinflation - No solution - No structural improvement - No structural solution - Problem solved - Quick solution - Short term

- Short term solution - Short term view

6. Perception - Business culture - Civil services - Code of ethics - Corporate image - Corruption - Cultural - Culture - Description

- Flexible approach of rules - Grey area - Legal way - Mentality - Perception - Point of view - Reality - Shift of things - Social - System 7. Consequence - Communication prohibition - Corruption - Data linking - Formalising - Informal economy - Online registration - Reversed burden of proof - Snowball effect

2ndConceptual model: concepts of Jeitinho

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6. Brazilian review on Jeitinho Brasileiro

This chapter shows the Brazilian review on Jeitinho Brasileiro. It is structured the same way as the Dutch review. The categories are named the same because in my opinion there was not much difference in the concepts, so there was no need to change the categories. The only difference is that the categories Brasil factor and obstructions are combined because the obstructions are so directly linked to the Brasil factor and sometimes mixed. Although there is not much of a difference in categories it does not mean that the categories are filled in the same way. The categories Brasil factor and obstructions are not explained by a lot of concepts. During the interviews with the Brazilian respondents I did not want to focus to much on the aspects of bureaucracy and tax system for example on itself. Their view did not differ in that respect compared to the Dutch respondents and therefore I found it more interesting to focus on the way of solutions and so on.

6.1 Brasil factor and obstructions

Bureaucracy, labour legislation, sell facilities, tax system and tax problem.

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Although there are all these obstacles it is said that the government creates these difficulties to sell facilities. In order to receive a license you can speed it up by the right amount of money, the following categories deal with this (17.4).

6.2 Flexibility

A way, acceptation, alternative, creates solution, deal with differences, flexibility, lack of rules, open minded, risk taking, unpredictable and work with the law.

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6.3 Way of solutions

Contacts, build relationship, corruption, creative, creativity, despachante, emotional part, gift, influence, informal, informal people, informal way, mix private and business, relationship and trust.

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6.4 Results

Easier, hyperinflation, planning, short term, solution and unpredictable.

The effect of Jeitinho when dealing with problems is that Jeitinho makes it easier to do business (16.2). On the other hand it makes it also very unpredictable because it opens all types of alternative ways that sometimes people do not want to have (19.5). This is also the case when it comes to planning. Brazilians can be laid back and will say we will find a solution. By not intervening at the right moment it can also be too late (16.7). This way of thinking, we will find a solution has to do with the short term culture which Brazil has (19.14 / 20.8 / 17.8). Hyperinflation explains the short term culture. During the time of hyperinflation it was difficult for people to predict the future, due to price changes every day (20.12). What happened was that whenever people received their salaries this amount of money was used to go to the supermarket to buy products, or even dollars were bought. That this did not pass away quickly was because people were afraid the hyperinflation would come back (20.1).

6.5 Perception

Accepted, complex, corruption, flexibility, Gerson law, lack of rules, skill, take advantage, think ahead, think different and view.

Starting with the negative perception that Jeitinho has; it has a link with corruption (16.8) and payments to fix the problem (17.14 / 20.11). Although Jeitinho is accepted in business by for example the use of a despachante (19.10), corruption is not accepted in business (19.11). Jeitinho used to be explained as taking advantage of someone (18.5), like the Gerson law. The idea of Gersons law is always getting the best for yourself. You should take advantage in every business you are doing (18.3). This idea changed somewhat, as explained in the category consequence. Also the lack of rules is considered as a negative element of Jeitinho (18.14).

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Although Jeitinho is explained and by naming the positive and negative side effects, the overall view is not positive or negative; Jeitinho is just different (19.12). Also to give a clear explanation is difficult. Jeitinho is very complex and very difficult to explain so the opinions of Brazilians also very (16.4).

6.6 Consequence

Change, globalization, informal economy, process and take advantage.

Due to globalization the way Jeitinho is used is changing (18.4). Brazil is much more exposed nowadays, there is the influence of the internationalization process of Brazil starting in the 1990s and the more international oriented Brazil will be, the less negative Jeitinho will be used (20.13). Companies also see that because of more international exposure less negative Jeitinho is needed, but it is a long way process (18.4). In the past Jeitinho was more negative and now it is changing to be positive (18.15). This has to do with the take advantage example. To take advantage of someone else is considered unacceptable in other countries and therefore the Jeitinho is changing (19.7). On the other hand the informal economy is still large in Brazil. The percentage of the informal economy in Brazil is not known precise but it might be around 40% (17.2 / 20.17). Due to the high taxes and an unfair tax system (20.17) a lot of small companies can not afford their taxes and therefore companies do not register anymore and then taxes are paid by only the formal companies (18.2). Also consumer goods are expensive in Brazil; this also supports the informal economy (20.17).

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Figure IV: 3rd _{Conceptual model Jeitinho}

Three different views on Jeitinho Brasileiro are shown in the previous chapters. Now follows chapter 7 wherein the three reviews are combined and a contributed review on Jeitinho Brasileiro is provided.

1. Brasil factor and obstructions - Bureaucracy - Labour legislation - Sell facilities - Tax system - Tax problem 2. Flexibility - A way - Acceptation - Alternative - Creates solution - Deal with differences - Flexibility

- Lack of rules - Open minded - Risk taking - Unpredictable - Work with the law

4. Results -Easier - Hyperinflation - Planning - Short term - Solution - Unpredictable 5. Perception - Accepted - Complex - Corruption - Flexibility - Gerson law - Lack of rules - Skill - Take advantage - Think ahead - Think different - View 3. Way of solutions - Build relationship - Contacts - Corruption - Creative - Creativity - Despachante - Emotional part - Gift - Influence - Informal - Informal people - Informal way

- Mix private / business - Relationship - Trust 6. Consequence - Change - Globalization - Informal economy - Process - Take advantage

3rd Conceptual model: concepts of Jeitinho

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7. Contributed review on Jeitinho Brasileiro

The objective of chapter 7 is twofold. First it deals with how the Dutch and Brazilian review contribute to the idea of Jeitinho Brasileiro from literature. The main adding s of the Dutch and Brazilian review will be mentioned. Secondly the main adding s in comparison to the literature review results in a new view that I call here as contributed review Jeitinho Brasileiro. The contributed review, just as the previous reviews, is shown in a conceptual model. With the difference that this conceptual model is the final conceptual model. This final conceptual model is however limited in the way that concepts are combined to a stronger concept. The extended contributed conceptual model is shown in appendix IV. The reason for providing a limited conceptual model at the end of this chapter is to illustrate better what the similarities and differences are compared to the literature review by stronger concepts. Above each paragraph the category name, as used in the conceptual model based on the contributed review, is provided. This new name of the categories indicates best what the contributed review resulted, having the three different views compared. Figure V illustrates the idea described above.

Figure V: Road to contributed review

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7.1 Brasil factor and obstructions

The literature review started with the category Existence of Jeitinho . Within this category the concepts explain where Jeitinho comes from. In fact the Dutch and Brazilian reviews provide this as well, although I named the category different and the concepts are more specific to where the need for Jeitinho comes from. The name of the category changed into Brasil factor . Because it gives a better explanation of the concepts taken for Brazil as a country as a whole. Where the Dutch review separated the categories Brasil factor and Obstructions , obstructions is seen an intermediate result of the Brasil factor, the Brazil review took both categories together. This is done because both provide an incentive for a Jeitinho. Furthermore, the concepts used for the Dutch and Brazilian review provide a better and more specific insight what the role of the government exactly contains.

One can think of fiscal complexity, bookkeeping, and labour laws. Bureaucracy contains documentation, delay and a slow process. The name of the category in the contributed review remained the same as in the Brazilian review. Brasil factor and obstructions reflect best what causes Jeitinho.

Figure VI: Contributed model Jeitinho - Brasil factor and obstructions

Literature review Existence of Jeitinho

- Brazilian culture - Role of government - Bureaucracy and complex system

- Lack of respect for rules

Dutch review Brasil factor

- Brasil factor - Burden of taxation - Bureaucracy - Documentation - Fiscal complexity - Granting of credit - High interest rate - High taxes - High labour costs - Infrastructure - Labour laws - Labour protection -Legal system

-Tax system Dutch review Obstructions - Delay - Doubt the rule - Fiscal bookkeeping - Planning is never right - Slow

- Slow process

Brazilian review Brasil factor and obstructions

- Bureaucracy - Labour legislation - Sell facilities - Tax system - Tax problem

Brasil factor and obstructions, Contributed review,

Existence of Jeitinho Brasil factor Brasil factor and obstructions

Contributed review

Brasil factor AND Obstructions

- Burden of taxation - Bureaucracy - Delay - Culture - Documentation - Doubt the rule - Fiscal complexity - Granting of credit - Planning is never right - High interest rate - High taxes - Slow

- High labour costs - Infrastructure - Slow process - Labour laws - Labour legislation - Sell facilities - Labour protection - Legal system

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7.2 Find a way

How to deal with difficulties created by the government i.e. bureaucracy and a complex system is the second phase. In the literature review the category that contains this was called purpose of Jeitinho . The literature review indeed gives explanations what Jeitinho should accomplish but the Dutch and Brazilian review do provide more concepts and therefore explanations how to accomplish the goal by use of Jeitinho. For instance where way of accomplishing things and resolving things takes part within the category purpose of Jeitinho , concepts such as change the rule , lack the rule and other solution indicate a better idea of what this way means. Both the category for the Dutch review and the Brazilian review are called Flexibility . This represents a broader explanation. However, when I came to this contributed review I prefer this second phase of Jeitinho to call as category Find a way . To find a way one needs to be flexible and therefore is part of this category. Also by naming the category Find a way I think it connects better to the third phase and category named Way of solutions .

Figure VII: Contributed model Jeitinho - Find a way

Literature review Purpose of Jeitinho

- Way of accomplishing things and resolving things - Creates opportunities to get around difficulties

- Get things done in bureaucratic contexts

Dutch review Flexibility

- Acceptation - Adaptability - Always a solution - Change the rule - Find a solution - Find a way - Flexible approach - Flexibility of rules - Give it a turn - Lack the rule - Language - Other solution - Pass by the rules - Problem solving - Search for solutions - The way - A way

Brazilian review Flexibility - A way - Acceptation - Alternative - Creates solution - Deal with differences - Flexibility

- Lack of rules - Open minded - Risk taking - Unpredictable - Work with the law

Find a way, Contributed review,

Purpose of Jeitinho Flexibility Flexibility

Contributed review Find a way

- Acceptation - Adaptability

- Alternative - Change the rule

Vamos dar um Jeito