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Profile: Rory Stewart

One of 25 hand picked for the Foreign Office fast track, Rory Stewart quit after five years to go wa

Early life

Stewart was born in Hong Kong in 1973. His father Brian, a military man had fought on the beaches of Normandy and then became a diplomat, while his mother Sally, is an academic and economist. He has two older half sisters and one younger sister.

At eight he came to the UK where he was educated at Eton and Oxford, with a stint in the Black Watch in between.

While in his third year Stewart was ‘half talked into’ applying for the Foreign Office (FC0) by his mother. Despite his reluctance he was one of 25 hand picked to join the coveted FCO career fast track.

Foreign and Commonwealth Office

It was September 1995 when Stewart started working at the FO in London. For the first time, he says, he felt like he was actually doing something. “I was living in London,in my own flat, getting to walk across St James’ park in the mornings, going to work in a beautiful building.”

Despite flying around to different embassies and feeling the job was a joy he was starting to get tired. Exhausted from chasing girls, partying and, of course, working, his next move, two years later, was Indonesia.

“Suddenly I was in a suburb on East Java and living with a family, learning Indonesian. Everything about growing up in Malaysia came flooding back to me. I felt fitter, brighter and happier.”

After a couple of months he was put into the embassy in Jakarta, running the economic section. It was shortly after his start that the Asian financial crisis of 1997 hit. “It was very exciting and not too dissimilar to what is happening here now. The experience taught me that experts don’t always know what’s going on.”

Despite everyone saying the economy was going so well, Stewart says he was one of the pessimistic people who predicted the depth of that crisis. “Everyone’s predictions go out of the window. And I believe we’re still there.”

After two years, Stewart was then posted to Montenegro in the wake of the Kosovo campaign. This time he wasn’t a member of a large team but on his own.

“I definitely had one of those moments, where you take a step back and look at what you’re doing and think ‘this is ridiculous!' I was sent as the British representative and I was only 26."

It was prestigious, interesting and his closest boss was in London.

Was he taken seriously though being so young? “I might have had more luck if I was older but at the time I wasn’t conscious of my age being a problem. Everyone was very polite and obviously people did want to be seen to be working with Britain.”

Stewart sees both Indonesia and Montenegro as unusual postings. “They were surreal and almost comical, I had to give the impression obviously that this was all totally natural.”

Walking and books

Once his time in Montenegro was up, Stewart decided to leave. He'd been with the FCO for five years. It was at this point that he began the walk that would lead to his critically acclaimed book, The Places in Between. He had previously taken a two week walk while in Indonesia to Irian Jaya with two friends. This time around it was to last 20 months and he was to be alone for most of it.

Stewart has claimed that he didn’t feel he was cut out for a standard FCO posting and so wanted to just try something new. Stewart says walking is his way to free his mind, to contemplate and learn. Initially Stewart planned to walk around the world, however, plans change and in the late summer of 2000 he headed East from the Turkish-Iranian border.

He began moving across Iran with ‘protection’ but after three months of both suspicion and hospitality he couldn’t get his visa renewed and so moved on to the next country.

It was a journey fraught with difficulties though. He was barred from entering Afghanistan, then Pakistani officials prevented him from entering Baluchistan. He then trekked from Pakistan to India, adopting a local look (a turban, salwar kameez, turban and walking stick) in order to make life easier. Then on to Nepal.

It was by January 2002 that he began his trek across Afghanistan. It was to take him six weeks. The US troops had just invaded and had toppled the Taliban. “I watched how communities worked, how villages interacted with one another. I learnt their customs, rules and codes.” It came to be an invaluable understanding of societies suffering in the aftermath of conflict.


In 2003 the invasion of Iraq was about to take place and, supporting the decision, Stewart was keen to get out there and help in any way he could.

He constantly sent emails but was getting no response. “I decided to get a taxi from Jordan to Baghdad, just me and the taxi driver.” He arrived in Baghdad and immediately reported to the Director of Operations who was pleased to see the eager volunteer told him to go home and await instruction.

“I wasn’t completely convinced that anything would come of it.” But it did and in August 2003 Stewart found himself the deputy governor of Maysan province in Southern Iraq, with a population of 850,000 people. He was not yet 30.

“When I returned I basically tried to apply what I’d learnt on my walk. I had learnt how they spoke of government, learnt what power means.” His 20 month trek had put him in an invaluable position. “Knowledge and sensitivity is important in these situations. You’re in someone else’s country and you are there to help. This is something you need to keep reaffirming. You are here temporarily and that it’s their country but also that you have value and importance to them. You need to stress that you both have access to power and resources. And you need to have faith in people, you need to convince people that they have the capacity to change their own life.”

For Stewart, personal relationships were very important. Each governor had a different approach, some completely unlike Stewart’s. “One friend was very legalistic in his approach. He would say ‘this is my budget, this is the paper work, less personal politics’, I think if dealing with a society where state and government have collapsed and you’re working in rural areas then you’re not likely to get far by emphasising an institution and process when what they’ve seen of that has horrified them.”

They were two tough postings; jobs that involved fending off an insurgency, negotiating hostage situations and tribal vendettas but he was aided by the knowledge gained from his walk and his ability to speak Dari and Farsi, no one was better equipped.

Having supported the invasion Stewart now believes that we should leave Iraq as soon as possible.

“As time went on it was clear that Iraq was the wrong war. It was impossible; we weren’t going to make any progress.” A three day siege on his compound, led by a friend, was example of this. As the mortars fell, how did this make him feel? “I think I realised that this was a war, it’s not a personal act, it’s not that he didn’t like me, he just didn’t like the occupation. I still think he was a charming man.”


In 2006 Stewart found himself back in Afghanistan. He set up the Turquoise Mountain Foundation to work on the regeneration of the historic commercial centre of Kabul, as well as providing jobs.

One of its first tasks was to clear the city of 900 cubic metres of rubbish. Since then the Foundation has gone from one employee to 350. “I spent a long time negotiating with the community to convince them that this was a worthwhile idea; then I had to get the Afghan Government on board.” In this time they have also established the country’s first higher education Institute for Afghan Arts and Architecture, with the backing of President Karzai.

The hardest part of the job now is the money that needs to be raised. Lots of it. “This year I’ve had to raise US$22m. Lives and jobs depend on me. There is a great sense of responsibility. At the moment I’m trying to raise $2m and the winter is coming - in a city on the edge of becoming a war zone. In one month I’ve spent $550,000 on repairing 60 buildings.” Stewart hopes that it will all be complete by 2010.

What about Barack Obama’s supposed ideas for Afghanistan? “I’m very excited by Barack. People I know that work with him think he’s a good guy.” His views on Afghanistan are ones that Stewart would like to change though. “It’s a replica of the Bush administration at the moment; it’s the wrong way to look at things. Our relationship shouldn’t be electro shock therapy, there should be more patience.”


Moving away slightly from cultural restoration Stewart is due to take on the role of Professor at Harvard University in January 2009. He will be a professor of human rights – teaching and running an academic faculty as the Director of Harvard Kennedy School’s Carr Center for Human Rights Policy. What about the Foundation? “I’ll remain executive chairman and Harvard have been good enough to pay for me to keep going out there.”

Is there time to relax? “I don’t get as much time as I’d like. Seeing family is important.” His parents are now in their 80s and settled at the family home in Crieff, Scotland. “Three weeks ago I went to northern Spain from New York. I had eight days free and I went along the Pilgrims route from Astorga to Compostella doing about 25 miles a day. It was the most wonderful opportunity to refresh my mind and have clear thoughts.” For the first time in three years he didn’t pick up a phone or an email.

Not only is there a new job in academia but also the movies. Hollywood has started to speak Stewart’s name and after Brad Pitt bought the rights to his life, Orlando Bloom is due to portray the young ‘adventurer’. Jokingly he says he’d really like Judi Dench to play him.

From diplomat to walker to governor to founder now the inspiration for a movie – it's quite a career for someone who is just 35.

Photo: Getty
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Enough to educate 17 million children: the true cost of Brazil’s Car Wash scandal

As a new Netflix series dramatises one of the world’s largest corruption cases, Global Witness puts a figure on the cost of the scandal.

In the 1980s, Alberto Youssef was, alongside an older sister, smuggling whisky and electronic products from Paraguay to Brazil. Once, while being chased at a high-speed by police, VCRs kept falling out of the pick-up truck he was driving. Few would have guessed that this almost comical character would, one day, become a key player in what has been called the biggest corruption scandal in history. But then, the Car Wash, or as it’s known in Portuguese, Lava Jato, stretched far and wide across Brazil at a huge cost.

New research by Global Witness shows the damage caused by the Car Wash scandal far exceeds the sums stolen. The cost to the Brazilian treasury may be nearly eight times higher than the £1.4bn actually taken, enough to cover the salaries of more than a million nurses or provide a year’s education for over 17 million children.

Police only began to uncover the extent of the Car Wash scandal in 2013, when they became suspicious about the sheer quantity of cash churning through a bureau de change in a humble petrol station in the country's capital Brasilia. That led to the arrest of Youssef, which in turn led to further arrests. It soon became clear that this was no ordinary money laundering operation. Police had stumbled upon a racket that would involve at least 28 major corporations and 20 political parties, resulting in over 100 convictions. The list of those implicated reads like a Who’s Who of the Brazilian political elite, including two of the country's presidents.

Former Brazilian president Luiz Inacio Lula da Silva has been sentenced to more than 12 years, after it emerged he took bribes for helping a construction company win contracts with Petrobras. Lula says the case is politically motivated and remains free while appealing it. A ruling in a federal court on Monday, however, could send him behind bars, even as he takes the case to the Supreme Court.

Current president Michel Temer has also been at the centre of corruption investigations, most recently over allegations of bribery concerning a deal for operating services at the Port of Santos, Latin America’s largest container port. Congress has twice blocked Temer from standing trial on corruption charges while in office, and he denies the allegations.

The scandal has also inspired The Mechanism, a new Netflix drama from the director behind the biopic of Pablo Escobar, Narcos. The sums of money involved in Car Wash were almost at Escobar levels, but the billions lost to Brazil’s hard-pressed public services mean the scam might also have caused harm on a scale comparable to the druglord’s activities.

The fraud revolved around Petrobras, Brazil’s state-owned oil company. Instead of awarding huge contracts for construction projects, oil rigs, shipping and so on in the normal manner, the work was rotated around a cartel of companies in orderly fashion. Petrobras would over-pay the companies by at least 3 per cent, with the extra money forming a kickback to the directors responsible for awarding them the contracts. These directors would pocket some of the money, and hand the rest to the politicians who had appointed them to their lucrative posts. The money then went to the campaigns of Brazil’s political parties and provided backdoor funds that kept otherwise unstable governing coalitions together.

The result was a Byzantine racket of astonishing intricacy and scale in which everyone took a cut. Bribes came in the form of bricks of cash, expensive art works, aircraft and yachts; anonymously-owned companies in tax havens and foreign bank accounts helped launder the loot. One Petrobras director alone channelled €20m to banks in Monaco from accounts in the Bahamas, Panama and elsewhere.

“Once the mechanism is established, only the corrupt can take part,” says José Padilha, the Brazilian writer and director of The Mechanism. “If you’re an honest politician you’re doomed. The honest businessman will not get any contracts. There are only crooks.”

This “mechanism” had been running uninterrupted for at least 12 years.

Was this really the biggest corruption scandal of all time? Virtually every Car Wash explainer in the UK press poses the question – but none provides an answer. That’s probably because it’s notoriously hard to quantify value throughout history. In 193 AD, the Roman Praetorian Guard assassinated their emperor and held a fraudulent auction to appoint his successor, striking a deal worth 250 pieces of gold for each soldier in the army. (The empire was not theirs to sell). If not the earliest documented fraud, it was surely the most audacious – but trying to convert the ransom into modern currency is a fool’s errand.

But Padhila has no doubt. “It’s the biggest corruption scandal in the history of mankind,” he says. “It involves a mechanism which has been operating in Brazil in one form or another since at least the Eighties. Too many Brazilians fall into the trap of ideology, but the mechanism has no ideology. It is left wing and right wing. The whole political system is corrupted. Democracy has failed.”

Regardless of whether Car Wash is the biggest bribery case of all time, it certainly features in the ranks of the world’s corruption mega-scandals, sitting alongside mammoth state-thieving operations such as Malaysia’s recent “1MDB scandal” – US lawsuits claim an estimated $4.5bn has gone missing from a state development fund – and France’s Elf scandal, which shook the body politic and in which at least $400m was creamed off international oil contracts. All these scandals were linked to illicit political funding.

Taking a look at the cost of Car Wash to Brazil, first off there is the amount filched from the state oil company in improper payments. A Federal Police report seen by Global Witness conservatively estimates this at £1.4bn – all of which had to be laundered, sometimes moved physically. To put this logistical feat in context, if withdrawn in £10 notes the sum would make a stack eight miles high equivalent to almost 16 Burj Khalifas, the tallest building in the world (or, if you like, 343 Christ the Redeemers). The 119 tonnes of cash would take a fleet of 97 Ford Transit vans to deliver.

Then there is the £2.1bn fine Petrobras has agreed to settle a US investors’ class action, already bigger than the amount actually stolen. But both the theft and the losses are dwarfed by (and reflected in) the collapse in Petrobras’s share price. Before the scandal broke in September 2014, shares were at $19.33 but as of March 2018 they had dropped to $14.07. The government suffered a paper loss of £14.1bn for its 29 per cent stake in the company.

September 2014 was also the moment that global oil prices began a long decline, but the damage was too great for Petrobras to hide. “I would say 90 per cent of the fall in share price is due to Car Wash,” says Tiago Cavalcanti, a Brazilian economist at the University of Cambridge.

Petrobras’s 3.7 billion shares are supposed to furnish Brazil with a healthy income, and in the three years before Car Wash exploded, they provided Brazil with an average annual dividend of £360m. No dividend was paid in 2015, 2016 or 2017, costing the country £1.1bn.

Then comes the kicker. So vast was the upheaval  with billions slashed in investment   that some believe it helped bring about the worst recession in Brazil since records began. In March 2014, when the first Car Wash arrests were made, the Brazilian unemployment rate was 7.1 per cent. By last summer it was at 13 per cent. São Paulo consultancy GO Associados, headed by economist Gesner Oliveira, calculated that the fallout from Car Wash hit GDP by 2.5 per cent in each year the investigation was going on, from 2015 to 2017. The consultancy has now told Global Witness it has revised those figures up to an extraordinary 3.6 per cent — which would mean almost the entire drop in output during 2015 and 2016 was accounted for by Car Wash.

GO Associados said that would imply an annual $4.6bn (£3.3bn) in lost tax for each of the three years the fallout from Car Wash was at its most extreme £9.9bn. This figure would appear to be on the conservative side: it is based on the hit to the economy from Petrobras’s reduction in spending plans  but does not take into account the wider impact on Brazil’s giant construction companies, many of which lost contracts elsewhere in Latin America as a result of the scandal. Such firms were also banned from any public contracts in Brazil. The figure also fails to include the reduction in foreign investment in Brazil as a result of the political turmoil.

So even setting aside Brazil’s paper loss – Petrobras shares may well continue to rise  Lava Jato could have cost the government at least £11bn in revenue in lost tax and lost dividends from its stake in the company. That’s almost eight times the amount stolen from Petrobras in the first place.

“That number sounds very plausible and the calculation is logical,” says Cavalcanti, who has himself calculated that without Car Wash and other governmental policies Brazilian GDP would have grown by 1.2 per cent in 2015 and 2016 (as opposed to an actual fall of 3.8 per cent and 3.6 per cent). “Another reason for the recession was the falling price of commodities, but Peru and Chile did not have the fall Brazil had. Certainly Car Wash was a very big factor in the recession.”

Who knows the real difference that £11bn could have made in a country where universal healthcare is still some way off and about 7 per cent remain illiterate. The real price of Car Wash is incalculable.

“I feel disgust and exasperation,” says Padilha.

You might think that at such terrible cost, the Brazilian public would rather the fraud had never been exposed. But a recent poll suggests 94 per cent of Brazilians think the investigations should continue despite the current turmoil. For many, this is a golden opportunity to tackle the corruption that has afflicted the Brazilian body politic for decades before the mechanism started turning.

Because according to the filmmaker, Petrobras is the tip of the iceberg.

“There is no public contract in any village, town, city or state that is not affected, from the tiniest new road to the biggest government project,” he says. “All are corrupted - and none of this is exposed yet. In my country you can turn any stone and there will be cockroaches underneath.”

Ed Davey is an investigative journalist for Global Witness.