Integrity, Education, and Moral Renewal : International Insights and Lessons for Hungary

Biró, Ferenc Pál (2025) Integrity, Education, and Moral Renewal : International Insights and Lessons for Hungary. PÉNZÜGYI SZEMLE/PUBLIC FINANCE QUARTERLY (1963-), 71 (4). pp. 9-37. ISSN 0031-496X

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Abstract

The scandal that broke out in Brazil in 2014 came to be known in the media as “Lava Jato” – or “Car Wash”. What began as a money laundering case centred around a small car wash quickly escalated into one of the largest corruption scandals on the continent. The investigation uncovered a multi-billion-dollar bribery network that had been operating for decades around Petrobras, a state-owned oil company. Politicians, state officials, as well as multinational companies and criminalnetworks were all involved. The mechanism was deceptively simple – yet devastating: large corporationswere awarded overpriced contracts by the state-owned oil company, with part ofthe surplus ending up in the pockets of political parties and decision-makers. Themachinery of corruption served not only to enrich certain individuals, but also tofinance the maintenance of the entire political system. The consequences were staggering: Petrobras’s share price collapsed, tens of thousands of jobs were lost, and Brazil’s economy plunged into a deep recession. Ministers, members of government, party leaders and executives from the largest constructioncompany were all imprisoned, and even Luiz Inácio Lula da Silva, the country’s iconicformer president, stood trial. The social fabric of the country was shaken, as millions ofpeople took to the streets, having lost their trust in the political and economic elite.Yet the true tragedy of the Lava Jato scandal went far beyond financial loss or theexposure of the political elite, as the people of Brazil came to realise that corruptionis not the sin of a few “black sheep”, but a systemic driving force that permeateseverything. The erosion of trust has left a lasting wound on society that will affectgenerations to come. One of the most shocking revelations of this scandal was the sheer scale of thebribes involved. Investigators found that construction companies had inflated projectcosts by up to 20%, not only funnelling billions of dollars into secret political funds,but also showering politicians and corporate executives with luxury beachfrontapartments in Rio, yachts, Rolex watches, and suitcases full of cash. The blend ofmulti-billion-dollar contracts and extravagant personal gifts turned the scandalinto a symbol of how systemic corruption can simultaneously rot institutions and corrode personal integrity – all while affording a life of luxury to a select few.

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