Travel Reference
In-Depth Information
the world's most respected left-wing theorists of economic development. His political
career, however, moved along a different track, as his government opened up the
Brazilian economy and pushed through important
political reforms
.
On the economic front he built on the Plano Real by pushing through a privatization
programme, cutting tariff barriers, opening up the economy to competition and
making Brazil the dominant member of
Mercosul
, a regional trade organization that
includes Argentina, Uruguay and Paraguay. During his first term the result was healthy
growth, falling unemployment and low inflation, an achievement without precedent in
modern Brazilian history. Politically, he steered a skilful middle course between right
and left. In a steady if unspectacular process, a series of constitutional amendments was
passed, reducing the role of the state and reforming the political system.
The stabilization of the economy Cardoso achieved was not forgotten by the poor, who
were the most affected by hyperinflation; he was
re-elected
in 1998, again beating Lula,
and providing a much-needed period of stability at the top. His second term proved
more di
cult, however. The
Asian financial collapse
of 1998 brought down much of
Latin America with it, including Brazil. Yet despite devaluations of the
real
, foreign
investment kept coming and inflation remained low - an important break with earlier
economic patterns, and a sign that at least some of Cardoso's reforms were working.
The Lula era (2003-10)
Historic is an overused word, but there was no question it was the only one to
describe the
2002 election of Lula
to the presidency of Brazil, at the fourth attempt.
The outcome represented the final consolidation and maturing of Brazilian
democracy, as the generation that had been tear-gassed by the military and opted
for armed struggle suited up and became ministers (there were four ex-guerrilla
ministers in Lula's first government, and its dominant figure,
José Dirceu
, had
plastic surgery in Cuba and lived underground for five years).
Lula
(born 1945)
himself is a truly historic figure - the first Brazilian president not to be a member of
the country's elite. Born in desperate poverty in the Pernambuco
sertão
, like millions
of Northeasterners he made the journey as a child to São Paulo on the back of a
truck. He worked as a shoeshine boy before becoming a factory worker at a car
plant, eventually rising to leadership of the strike movement in the early 1980s and
founding the PT (Partido dos Trabalhadores, or Workers' Party), which allied the
union movement to the liberal middle class. With FHC's retirement no other
Brazilian politician was able to match Lula's charisma.
Lula proved adept at keeping his party happy with tub-thumping rhetoric and playing
up his image as a reformist on the international conference circuit, but in fact his first
government bore a distinct resemblance to that of his predecessor.
Antonio Palocci
, a
quiet but competent finance minister, kept the economy open and inflation down -
which was just as well, since politically the government rapidly ran into deep trouble.
Corruption scandals
Lula had been elected in large part because the Brazilian electorate believed his PT was,
uniquely among Brazilian political parties, largely untouched by
corruption
. hey were
rapidly disabused. From 2004 Brazilian journalism yet again proved itself the healthiest
2002
2004
2006
2010
Brazil wins the football World
Cup for the fifth time; Lula (Luís
Inácio da Silva) elected president
Brazil launches
its first space
rocket
Lula is
re-elected
president
Dilma Rousseff
becomes Brazil's first
female president
