On June 20, 2013 protests erupted throughout Brazil drawing 
at least 250,000 people and eventually peaking with 
over a million participants. Many throughout the world and certainly within the Brazilian government were shocked by the seeming suddenness of the discontent. Taking place primarily in urban areas, the protests were initially sparked by a 7% increase in subway and bus fares, but were driven by many underlying forces. Dubbed the Revolta da Salada, the demonstrations included acts of vandalism, arson attacks on various government buildings, and periodic clashes with police. The strength of the protests and the tenuous truce that has seemed to end them are suggestive of deep issues within Brazil that extend far beyond a ten-cent transport fare increase in Sao Paulo. The driving causes of these demonstrations and how the government responds have important consequences for organizations seeking to invest and do business in Brazil.

In the…