FGTS Funds Threaten to Bankroll Leftist Dictatorships

Recent reports have revealed that the Brazilian government’s social security fund, Fundo de Garantia do Tempo de Serviço (FGTS), is being used to finance the Banco Nacional de Desenvolvimento Econômico e Social (BNDES). The BNDES has been providing loans and investments to countries such as Argentina, Cuba, and Venezuela, all of which are known for their oppressive left-wing dictatorships. This means that money from the FGTS is being used to support these oppressive regimes. The news has caused a great deal of public outcry in Brazil. Many citizens are concerned about their own economic future if their money is being funneled into financing dictatorships abroad. They worry that if they withdraw their funds from the FGTS and invest them elsewhere, there will be no money left to finance these dictatorships. This raises serious questions about how much control Brazilian citizens have over where their hard-earned money goes. Furthermore, some experts fear that this could lead to a financial crisis in Brazil if too much of the country’s resources are diverted away from domestic needs in order to prop up foreign governments with questionable human rights records. With Brazil already facing an economic downturn due to the COVID-19 pandemic, this could be disastrous for its citizens who are already struggling financially. The government has yet to respond publicly on this issue but it is clear that it needs to take action soon in order to protect its citizens’ finances and ensure that their money does not end up supporting oppressive regimes abroad. Until then, many Brazilian citizens remain worried about what will happen with their hard-earned savings and investments if they choose not to use the FGTS system anymore.