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Why Is Brazil's Lula Unbeatable? It's the Economy, Stupid! PDF Print E-mail
Written by Ryann Bresnahan and Frances Simonds   
Friday, 25 August 2006 22:50

Brazilian President, Luiz Inácio Lula da SilvaIncumbent President Luiz Inácio Lula da Silva is campaigning for a second term in Brazil's October 1st presidential election - a victory he does not deserve. This comes amidst mounds of political rubble, caused by the almost daily political scandals uncovered in the past few months, along with the barely containable outbreaks of violence in São Paulo.

These blemishes, in conjunction with widespread accusations that Lula has all but separated himself from the left-leaning ideology that brought him into office, has led observers to speculate how the former shoeshine boy will work yet another miracle: his re-election.

Although COHA (Council on Hemispheric Affairs) has been a consistent supporter of Lula since the 1980s, and even sponsored a visit to Washington, COHA must now sadly acknowledge that his presidency has turned out to be a grievous disappointment.

In many respects, he has sold out to the dark forces he spent a lifetime opposing, and has only barely managed to escape the corruption scandals by means of his matchless and cultivated naïveté.

Despite these otherwise death-dealing challenges, a Teflon Lula has proven to be a survivor, using his now patented bear-hug approach to stare down a multitude of stygian revelations of corruption that swirl around him.

Meanwhile, a recent DataFolha opinion poll shows that Lula does not have much to fear. The incumbent president from the leftist Worker's Party (PT) is currently in the lead with approximately 49% supporting him in the polls.

Geraldo Alckmin, the centrist Brazilian Social Democracy Party (PSDB) candidate, follows with 25%, and Senator Heloísa Helena of the leftist Socialism and Liberty Party (PSOL) lags behind with only 11%.

Lula is expected to secure the majority of ballots on October 1st, thereby winning in the first round and avoiding an October 29 run-off.

Many observers are questioning how Lula has been able to maintain such a hold on the Brazilian populace during such tumultuous times, replete with rampant prison gangs on the lam and delinquent congressmen following suit. The answer lies in the economy, which has blinded nearly every citizen from the many other afflictions clouding Lula's once glorious reputation.

The Rocky Road to Re-Election

Ongoing corruption and violence plaguing the country have taken their toll on the normally unflappable incumbent. Given his charismatic and effusive personality, it was a surprise when a nervous Lula made two accidental errors in his televised August 7 national address.

First, he proclaimed that his government was committed to the fight against "ethics," as opposed to "corruption." Second, he stated that the only thing falling in Brazil were "wages," rather than "inflation," as he originally intended.

Lula's opponents are capitalizing on his slips of the tongue, employing every means possible to paint him as a hypocrite and a coward.

Just before the first presidential debate took place on August 14 over TV Bandeirantes, Lula's opposition discovered that the president's handlers had pulled him from the show, fearful that he would lose rating points under such a joint attack from the opposition.

Alckmin briefly set aside his relaxed reputation and taunted the absent incumbent, proclaiming that Lula was "trying to escape" the debate. Helena added that she "cannot accept [Lula's] arrogance, nor the fact that he thinks he is better than the other candidates, which he is not."

Helena, a former PT member, is especially critical of Lula's ideological shift to the center; she has been one of his most vociferous critics since early in his presidency, when he started enacting market-friendly policies instead of delivering on the promised nationalizations of key industrial sectors.

She was ejected from the party after criticizing its support of the Social Security Reform of the Civil Service Law, which passed in December 2003, despite years of assurances from Lula that no initiative would ever be taken on the issue.

Pointing out the discrepancies between Lula's platform and his first-term record is not helping either candidate amass significant support. Further, neither challenger has elucidated their own plans for tackling the three issues on every Brazilian's mind: violence, corruption, and the economy.

PCC's Violent Reign

The Primeiro Comando da Capital (PCC) gang has brought terror to the streets and prisons of São Paulo, the financial capital of Latin America. Since May, the insurgent group has bombed banks, police department facilities, federal buildings and other targeted institutions, while demanding better conditions for their cohorts in federal correctional facilities.

The rampant violence has brought embarrassment to Alckmin, the state's former governor, who left the post last April to embark on his presidential campaign. In spite of receiving high performance ratings before taking his leave, many Brazilians are now looking to Alckmin for an explanation for the local violence.

During his five-year governorship, Alckmin failed to address the crime problem or reform the already overcrowded prison system, but nevertheless, he insists that Lula is to blame. Alckmin alleges that Lula purposely withheld an earmarked federal allotment slated for the construction of high-security prisons, more protective police wear and added surveillance.

Lula did offer to send troops to help Alckmin's replacement, Claudio Lembo, combat São Paulo's prison gangs. However, the current governor has curiously rejected the use of troops to quell the violence.

If the violence worsens and no troops are dispatched to bring control to the city, the coalition uniting Alckmin's PSDB and Lembo's Liberal Front Party (PFL) will most likely be blamed for the explosive situation, augmenting the fact that Alckmin failed to eliminate the PCC insurgency that started this past May.

A Country Falls On Scandalous Times: Corruption Galore

A startling 25% of the 594-member Brazilian Congress is under some form of indictment right now, whether it be for the Mensalão (big monthly allowance) campaign scandal that rocked Lula's presidency last summer, or the broader Sanguessugas (Bloodsuckers) healthcare scandal that made headlines this past month.

After the Mensalão scandal was uncovered, members of Lula's "ethics" party were immediately placed under investigation for offering bribes to congressmen in exchange for their vote on legislative issues last year.

Oddly enough, Lula escaped unscathed from the allegations, after an exhaustive few months of constant traveling and media exposure aimed at ensuring that Brazilians, and the world, be informed that he had taken punitive action against the guilty parties (of the 18 who were accused, three were expelled from Congress).

In a second political debacle, 72 congressmen were found in May to have scammed the social healthcare system. These high-ranking officials made arrangements with ambulance companies to pay for overpriced vehicles in their municipalities in exchange for a share in the profits. Many of the implicated congressmen are currently up for re-election, and a majority of them are aligned with Lula.

As for the president himself, he managed to extricate himself from the negative press, keeping his ethical standing miraculously intact. It seems that most Brazilians can resign themselves to the ever-present corruption in the current administration, as long as a stable economy is providing them a favorable distraction.

Economy Trumps All

Unarguably, the clincher for Lula's lead in the polls is Brazil's economy. Lula has created 3.8 million jobs which, although falling short of the ten million he originally promised voters, have had a great impact on the lower classes by catering to minimum wage workers.

Additionally, under Lula's Bolsa Família (Family Grant) initiative, the first successful conditional cash transfer (CCT) program enacted in the country, the government allots a certain amount of money to impoverished families able to establish that their children are in school, have received vaccinations, and are under the care of a healthcare professional.

As the poor are seeing their standards of living rise, their votes that Helena's socialist candidacy might have received are safely tucked in Lula's pocket. With a 3.5% GDP growth projected this year and inflation dropping from 5.6 to 4.0% in the past twelve months, most Brazilians appear satisfied with the status quo.

And the Winner Is ...

The more that Alckmin and Helena try to tear down Lula's lower-class, left-leaning base, the more apparent it becomes that the masses are not listening. Lula is revered among the poorer, less-educated populace, especially in Brazil's 20 northern, less-developed states; Alckmin's support comes from the wealthier, more highly educated classes of the seven southern states.

Helena's largely college-educated and female supporters are not enough to qualify her as a viable contender, so unless Alckmin successfully courts votes in the less economically developed areas, Lula is sure to win in the first round.

Both trailing candidates would be better served by articulating their own platforms instead of ganging up on Lula, who is currently developing his strategies to increase economic growth and combat crime. Perhaps a more pressing question than who will win the election, is what will happen afterwards?

This analysis was prepared by COHA Research Associates Ryann Bresnahan and Frances Simonds

The Council on Hemispheric Affairs (COHA) - www.coha.org - is a think tank established in 1975 to discuss and promote inter-American relationship. Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .



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Comments (6)Add Comment
...
written by cacique, August 26, 2006
The yellow journalism on this site is awful.
COHA COHA COHA !!!!!!
written by ch.c., August 26, 2006
Funny article from your side. Until very recently everything you published was in his favor or to tqke his defense. Those articles were published on this same site.

Funny that you needed almost his first 4 years mandate as President to realize how bad he really is.

The problem is that he his neither better nor worse than 2 months ago when then you still took his defense. Everything became quite clear after his first year of Presidency.

As a think tank organisation, your brains are quite slow to analysis. Strange.....yessss, very strange.

Or did Lula also betrayed you directly as he betrayed all his electors, as you finally recognize in your article ?

Why ? Or did HE stop financing your organization thus explaining why you are changing your mind finally ???? Because it is well known that the PT had and still has many hidden Caïxas.

As to Lula distancing himself from the PT, just think again, as you are a think tank organization. Is it not clear to you that he is distancing due to all the illegal things this party did ? But this is the best tactic.....BEFORE the elections.
Does it not come to your mind that after Lula re-election they will be on a new honeymoon again ????? Sooooooo obvious......., so together they will manipulate, hide, do illegal backstage dealings again and lie again to prepare the continuation of the PT party for 2010 and beyhond !!!!!!!!!!

COHA is really not very smart for a think tank organization.

Finally with your Economy Trumps All : sorry but including 2006 Lula economic performance will have provided an average annual economic growth rate of ONLY 2,8 % !
Stupid question :at that growth rate how can anyone fill the gap with richer countries ?
The sad reality is that Brazil is loosing the race, against the other developing countries.

Or simply stated : the World Worst of ALL developing nations, and the 2nd worst for Latam/Caribean after Haïti ! Except that Haïti IS NOT a developing country but a LDC.

Thus how can LULA be so proud of his economic failures ? And how can anyone take his defense on that subject KNOWING that many developing countries had TWICE AND MORE the Lula's performance ?

At that speed Brazil will remain a developing country until the next century, while some developing countries will have become developed and no longer developing. Even some LDC countries will become wealthier than Brazil.
Who Benefits?
written by a guest, August 28, 2006
When situations like those of the PCC revolts in Sao Paulo take place, people must ask themselves, "Who benefits??" Without question Lula and the PT party have benefitted the most as a result of making the Sao Paulo gov't. appear to be incompentent....not a difficult task to achieve in any state gov't. here in brazil, unfortunately.

There is now an investigation by the federal police looking into ties with the PCC and the PT party. As wiretapped conversations were heard and PCC bosses recorded stated to specifically attack PSDB candidates but NOT PT!!!!

One can call Lula or whatever other brazilian politician "teflon" this or "teflon" that, it's NOT Lula or any one politician/candidate that's teflon! IT'S A TEFLON SYSTEM!! Corruption and impunity rule the day, responsibility for ones actions and punishments to fit the crimes DO NOT EXIST in the brazilian "system".

And the economy as the principle reason for him winning the upcoming elections is "STUPID", and if that will be the reason he will win, then the only ones that are STUPID are the brazilian electors! The poster above has it right, least growth of ANY developing nation and only 2nd place to Haiti in all of latin american and the carribean! Embarrassing to say the least!
voto nulo
written by Nocturna, August 31, 2006
Embarrassing to say the least!
written by opisy gg, September 06, 2006
Embarrassing to say the least!
...
written by opisy gg, September 06, 2006

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