The Political State Owned Oil Giant And Its Negative Impact On The People 's Trust

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In addition to the challenging economic policy issues it is confronting, Brazil has simultaneously been in a very fragile political state ever since the Petrobras scandal investigation, known as Operation Lava Jato (Carwash), was initiated in 2014. In order to appreciate the significance of the Petrobras scandal and its negative impact on the people’s trust, it is important to comprehend the significance of Petrobras, the state-owned oil giant, and its role in Brazilian society. In Galster’s 2009 article, he discusses the nationalization of the oil industry in Brazil, the creation of Petrobras, and how it acquired its power and political influence. Galster emphasizes how the oil industry barely existed fifty years ago, and that it became very successful due to shrewd policies, such as keeping up to date with the latest technologies and implementing free market mechanisms. Also, Petrobras is a multinational oil company controlled and majority owned by the Brazilian federal government, but it is traded on the stock markets around the world, unlike most other Latin American countries (Galster, 2009).
In 2014, the Petrobras scandal became a cataclysmic news event in Brazil when investigators discovered that Petrobras managers were making bribes with governmental figures for political power by using money from the business. These events occurred during the time in which Brazil’s current president, Dilma Rousseff was the President of the Board of Directors of Petrobras. In
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