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part of the body politic by revealing a series of large-scale scams and rackets
commanded by Lula's political enforcer, José Dirceu . Although it was clear Lula was at
least aware of what was happening, he managed to avoid impeachment by firing Dirceu
and convincing the opposition, by now fancying its chances in the 2006 election, that
the national interest would be best served by having the government finish its term.
Brazil booms again
Lula also won the 2006 election as Brazilians credited him for the increasing economic
prosperity and stability of his first term. Lula continued to preside over higher
economic growth, combined with a continuing reduction of income inequality and
improvement in social indicators - most famously in a programme called Bolsa Família
(the family grant), where poor families receive cash payments in return for keeping
children in school, getting them vaccinated, and so forth. It has proven extremely
effective and become a model for many parts of the developing world. A series of major
oil discoveries in the seas off Rio was the icing on the cake, with Brazil becoming
self-su cient in oil in 2006. The financial crisis of 2008 in some ways showed how far
Brazil had come. While it would have led to instant economic collapse prior to the
second FHC government, Brazil came through the first phase of the crisis well and
maintained large currency reserves, a well-regulated banking sector and an economy
driven more by the domestic market than exports to help it weather the storm.
Dilma and the Brazilian future
In 2011, Dilma Roussef (born 1947), Lula's anointed Workers' Party successor, became
Brazil's first female president . Roussef, the daughter of a Bulgarian immigrant, has her
own long history of struggle in Brazil's democracy movement, tortured and imprisoned
by the military in the 1970s and later serving as Lula's chief of staff. As president she
has largely continued the populist policies of her mentor: reducing the federal taxes
on energy and removing regressive taxes on meat, milk, beans, rice, flour, potatoes,
bread and other everyday commodities, for example. Though Brazil's juggernaut
economy has spluttered - it actually contracted in 2012 - it remains on course to
become the world's fifth largest by 2020, with a rapidly expanding middle class and a
spate of infrastructure projects in the works. After hosting the football World Cup in
2014, the Rio Olympics in 2016 is slated to be a “coming out party” for the new Brazil.
Though Dilma remains popular - and at the time of writing was favourite to win
re-election in 2014 - massive problems remain. In 2013 cities across the country saw
huge demonstrations and riots , initially organized by the Movimento Passe Livre (Free
Fare Movement) to protest high fares on public transport, but morphing into a general
outlet for frustration at continued corruption, income inequality and the huge amount
of public funds being allocated for the football World Cup instead of aid for the poor.
Crime rates remain high, and almost every Brazilian city is still surrounded by favelas
reminiscent of the world's poorest nations - this despite a controversial “pacification”
programme initiated in Rio, which has had mixed results.
2014
2011
2012
2013
Brazil hosts the
football World
Cup for the
second time
Security forces occupy Rocinha,
one of the biggest favelas
in Rio, as part of a major
crackdown on organized crime
Architect and
designer of Brasília
Oscar Niemeyer dies
at the age of 104
Major protests in response
to transportation prices,
corruption and of sports
events
 
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