Showing posts with label Dilma Rousseff. Show all posts
Showing posts with label Dilma Rousseff. Show all posts

Thursday, 27 October 2011

Brazilian Sports Minister quits in corruption probe

Becoming the fifth cabinet minister to resign in recent months, Brazil's Sports Minister Orlando Silva has quit his post amid a row over corruption which is threatening to derail President Dilma Rousseff.

Silva resigned on 26th October after persistent accusations that he helped to siphon money off a charitable fund to promote sport for deprived children, using the embezzled money for himself and to prop up the Communist Party of Brazil, part of the ruling coalition. He has been accused of stealing up to US$23 million.

He has strongly denied the allegations and has called his principal accuser, a police officer, a delinquent. In resigning, Silva said that “I decided to leave the government so that I can defend my honour”. Although no hard evidence was laid against him, analysts say that the pressure mounting on him – including a recently opened inquiry by the Supreme Court - made it inevitable that he would stand down.

Silva was the only Communist in Rousseff's Cabinet. It is widely expected that she will allow the Communist Party to nominate his successor, despite the party's apparent involvement in many of the recent graft scandals. Rousseff's willingness to let the Communists retain control of the ministry suggests that she is not keen to engage in a bruising political fight and risk her coalition unravelling.

To date she has been unaffected by the scandals, many of which stem from appointments made under her predecessor Luiz Inacio Lula da Silva, but analysts say there are limits to the amount of resignations that can occur before she starts to look weak.

The role of Sports Minister will be critical in the upcoming years, as the country prepares to host the 2014 World Cup. The amount of money and contracts involved makes it a potentially lucrative post for a corrupt official, and Rousseff is likely to insist on a candidate with impeccable integrity.

Sources: BBC, Reuters, AFP

For more news and expert analysis about Brazil, please see Brazil Focus.

Friday, 9 September 2011

Public pressure mounting over corruption in Brazil

Across Brazil on 7th September, the country's Independence Day, thousands demonstrated against corruption in the government, which organisers called a “pandemic which threatens the credibility of institutions and the entire democratic system”.

The demonstrations come in the midst of an anti-corruption drive by President Dilma Rousseff. Since she took office in January, four ministers have resigned under pressure over corruption; several others have also been accused of graft, while dozens of lower-ranking officials have been fired or arrested.

Rousseff's campaign has begun to spin out of her control. What began as a series of low-key internal investigations to root out graft in government agencies was picked up by the Brazilian press, and has since snowballed into a nationwide campaign against what is perceived to be a widespread culture of corruption.

The drive is now threatening Rousseff's political position, as well as sparking a growing civic campaign which could leave her vulnerable before the end of her first year in office. Media reports suggest that the effects of the purge are creating speculation that Rousseff's predecessor, Luiz Inacio Lula da Silva, could return in 2014 to replace her again as president.

Since June, Agriculture Minister Wagner Rossi, Chief of Staff Antonio Palocci, Transportation Minister Alfredo Nascimento, and Defence Minister Nelson Jobim have left their posts. The president has been criticised for allowing Tourism Minister Pedro Novais to remain, despite the arrest of many of his senior aides for a scheme to embezzle ministry funds.

The cycle of accusations and counter-accusations – many made anonymously through the media - is threatening the cohesion of Rousseff's governing coalition, with some viewing it as a fratricidal campaign of personal score-settling. Many now believe that Rousseff's Worker's Party will struggle to keep the coalition intact.

The Independence Day marches represent a new phase in the anti-corruption campaign, which has previously been largely confined to the political class. It suggests that the public is no longer prepared to tolerate the patronage-based cliques which have dominated Brazilian politics for years.

The protests place Rousseff in a difficult position. Although many of the demonstrators expressed support for the president's campaign, others were angry at the entire political system – suggesting that she must maintain the momentum or face becoming a target of public anger for not going far enough.

Sources: Financial Times, BBC, UPI, Christian Science Monitor

For more news and expert analysis about Brazil, please see Brazil Focus.

Monday, 6 June 2011

Brazil: Fissures in the ruling coalition

A watershed vote on the Forest Code on 25th May in the Chamber of Deputies revealed both the internal divisions of Workers' Party (PT) and the unity of Brazilian Democratic Movement (PMDB). The result frightened the Workers' Party, which now has grounds to fear a possible alliance of PMDB with PR and PP.

Together, they amount to 179 votes, more than enough to deter any PT aspirations to succeed Marco Maia (PT-RS) as president of the Cham­ber of Deputies. PMDB covets the job and will almost certainly get it. This election will take place in 2013, and will be strategic with a view to the presidential ballot in 2014.

PT has been counting on a coalition with PDT, PCdoB and PSB, but these parties have given indications of pursuing their own goals. It remains to be seen whether President Dilma Rousseff, with or without Lula's help, will be able to bring her contentious allies into line.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2011 Menas Associates

Thursday, 5 May 2011

Brazil: Military mutterings

Renewed danger of a rift between the military and the government has arisen over the latter's interest in establishing a truth commission to investigate crimes committed by federal agents, and notably by the military, during the 1964–85 dictatorship. A general amnesty law was passed in 1979, and the military argues that it erased all responsibility for torture, murder, and disappearances.

The government is now headed by Dilma Rousseff, who was herself a victim of illegal imprisonment and torture, and she is keen on seeing that the perpetrators are punished.

Minister of Defence Nelson Jobim (PMDB-RS) – a former chief justice and minister of justice – sides with the government, but the military, otherwise quiescent since the resumption of democratic rule, is restless and producing manifestos of various kinds. The government will have to be extra careful on how it handles this potential crisis.

At a military ceremony held on 5th April in Brasília to introduce to the president the newly promoted general officers of the three armed services, Rousseff broke with precedent by refusing the officers' military salute and substituting a firm handshake. In her carefully worded speech, Rousseff ignored the ongoing debate about human rights violations during the military period, but underlined that "the country has corrected its own ways…and attained a high level of institutional maturity".

What emerged clearly from this ceremony is that Rousseff's relationship with the military is a tranquil one. She reassured them about the need to re-equip the armed forces.

On 27th April, the state of Rio de Janeiro held a public ceremony of reparation to political prisoners who were victims of military dictatorship in the state. This is the first such symbolic reparation.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2011 Menas Associates

Tuesday, 4 January 2011

Rousseff sworn into office


Dilma Rousseff has been sworn into office as Brazil's first female president. An estimated 70,000 people gathered for the inauguration ceremony in the country's capital, Brasilia.

Rousseff has taken over from President Luiz Inacio Lula da Silva who left office after two terms. Shortly after the official inauguration ceremony, Rousseff spoke to the nation and pledged to protect the most vulnerable and govern for the benefit of all. In a speech addressing the country, she also made clear that she was aware of the key problems faced by Brazil and assured that she would fulfil her promise of "consolidating the achievements" of her mentor, former president Lula.

Brazil's economy, currently enjoying a boom, inspires confidence in the country's future but Brazil still remains one of the main countries with the most unequal distribution of wealth.

Rousseff, who was appointed as energy minister in President Lula's government in 2003, later served as his chief of staff until 2010. Elected in October 2010, defeating opposition candidate Jose Serra by 56 per cent to 44 per cent in the second round, Rousseff said that her time in office was "just the beginning of a new era."

Sources: Radio Free Europe, Wall Street Journal, BBC News, Al Jazeera

For more news and expert analysis about Brazil, please see Brazil Focus.

Monday, 13 December 2010

Brazil: A new royalties scheme


On 2nd December, the Brazilian Congress approved the fourth and last bill of the normative framework for pre-salt. The bill defines the production-sharing scheme and allocates royalties to all the states and municipalities, even those that are not producers of oil and gas from pre-salt.

The latter was the more controversial aspect of the legislation, and, by political agreement with the interested governors, it was acknowledged that President Lula would exercise his presidential prerogative of a partial veto of the legislation and proposes a new system of allocation of royalties, by gradually reducing the portion reserved for hydrocarbon-producing states over a period of ten years.

This reduction in royalties would be compensated, over time, by the increase in the volume of oil and gas produced, and hence by an enhancement of royalties accruing to producing states. The principal of these so far is Rio de Janeiro. The new scheme will be defined by Dilma Rousseff in 2011.

A recent article in the Wall Street Journal drew attention to the fact that eight out of twelve of the world's largest deep-sea petroleum deposits discovered over the last 30 years are in Brazil. All of them are being explored by Petrobras, and they are equivalent to 15 billion barrels of oil, more than Brazil's current conventional reserves and nearly two-thirds of those of the US.

There is no doubt that the new frontier of pre-salt is the key to the economic redemption of Brazil. It could spell an end to the country's staggering social iniquities.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2010 Menas Associates

Thursday, 2 December 2010

Brazil changes oil sector law for offshore fields


Brazilian Congress has made certain amendments to its oil sector law, which could potentially increase the country's development of its offshore oil fields. The bill stipulates that state-owned company Petrobras will have a 30 per cent stake in all new offshore exploration ventures within Brazil.

President-elect Dilma Rousseff championed the new legislation while working as the energy minister in the outgoing government. The oil fields off the coast of Rio de Janeiro are estimate to contain more than 50 billion barrels of oil, buried approximately 7km beneath a layer of salt.

Petrobras has years of expertise in deep-water drilling as most of its ventures are located in the south Atlantic Ocean. Brazil's offshore oil fields might prove a lucrative venture for IOCs and foreign investors.

Source: BBC News

For more news and expert analysis about Brazil, please see Brazil Focus.

Monday, 8 November 2010

Brazil: Going postal over corruption


The Brazilian postal service, ECT, used to be a source of pride for the nation. Mail and telegrams were delivered speedily and effectively anywhere in this enormous country. No more. Under Lula's tenure, all management positions were thoroughly politicised.

This happened throughout the public service but was notorious in ECT, racked by a long succession of egregious corruption scandals. Indeed, it was because of one of those episodes that José Dirceu's giant mensalão scandal came to light, quite by chance.

Obviously, the efficiency of the postal service suffered considerably. This would not have mattered so much to Lula if it had not surfaced in another corruption scandal, this one connected to the sons of Erenice Guerra (Dilma Rousseff's dear friend and successor as Chief of the Civil Cabinet). It seems there were fraudulent contracts in the postal organisation.

Lula appointed Minister of Planning Paulo Bernardo (PT-PR) to investigate the affair, and ECT as such. On 14th October, the minister delivered his report: after the election, the whole system of allocation of executive jobs on the basis of party affiliation must end. After the election.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2010 Menas Associates

Monday, 4 October 2010

Brazil's presidential elections will go to second round


The Brazilian presidential elections will go to second round as Dilma Rousseff has failed to get 50 per cent of the votes required to secure an outright victory. As it currently stands Rousseff has 47 per cent of the votes, while Jose Serra has secured 33 per cent. The two will contest a run-off vote in four weeks' time.

It is believed that a strong result by the Green Party candidate, Marina Silva, who polled 19 per cent, may have hindered Rousseff's chances for a first-round win. President Lula's former cabinet chief, is the favoured successor to the President, who has completed two terms and cannot run for a third.

"We are warriors, and we are accustomed to challenges... We do well in second rounds," Rousseff said in a speech in Brasilia after the result was announced.

Dilma Rousseff was the front runner for much of the campaign, helped by Lula's support and widespread popularity. However, analysts believe that recent allegations of corruption may hinder her chances in the runoff.

Source: BBC News

For more news and expert analysis about Brazil, please see Brazil Focus.

Thursday, 30 September 2010

Jose Serra urges Brazil to back him in elections


Jose Serra has urged Brazilian voters to back him on Sunday, 3rd October. During the final rally, in the Sao Paulo district where he grew up, Serra called on his supporters to work to the end to win over voters and take the presidential contest into a second round.

Serra, a former health minister and Sao Paulo governor, is trailing behind Workers Party candidate Dilma Rousseff, whose popularity has taken a dive after corruption allegations surfaced involving a former aide, but she could still be on course to win outright on 3rd October. Speaking at the rally Serra, of the Social Democratic Party (PSDB), said that his government would be fair, ethical and free from scandal.

"We can have an ethical government. A government that focuses on the people and not on party politics and select groups. We want a government that is focused on all our fellow citizens," he said.

According to the opinion polls if the election does go to a second round on 31st October, Rousseff is expected to win. Rousseff and Serra will come face to face on Thursday [30th September] night for the final televised debate. Marina Silva of the Green Party and Plinio de Arruda Sampaio of the Socialism and Freedom Party (PSOL) will also take part.

Source: BBC News

For more news and expert analysis about Brazil, please see Brazil Focus.

Wednesday, 15 September 2010

What effect will the election have on Brazil's energy sector?


Before becoming Lula's Chief of the Civil Cabinet and his right hand, Dilma Rousseff had been his Minister for Mines & Energy and chair of Petrobrás. Throughout Lula's eight-year mandate, she remained in control of the energy sector, under the political dominance of PT and PMDB parties.

The results were not encouraging. The sector today reflects the government's general proclivity towards nationalism and state interventionism. Petrobras' capitalisation has been an unmitigated mess, as has been the entire pre-salt institutional framework. These tendencies are likely to persevere under Dilma's tenure as president. Moreover, she is prone to greater influence than Lula by the radical wing of the PT party, which translates into a statist, xenophobic and anti-capitalist bias.

There might be more overtures to South American energy integration, but in practice this means yielding to the demands of Brazil's 'Bolivarian' neighbours led by Venezuela's President Hugo Chávez, plus Paraguay, thus continuing Lula's failed scheme of a "diplomacy of generosity" at the expense of the Brazilian taxpayer.

If the former São Paulo governor and main opposition candidate, José Serra, wins the presidency, there will be none of the latter, and indeed the model for the energy sector will most likely consist predominantly of public-private partnerships (PPP), for which laws are now in effect, but, under Lula, not enough political will to implement them.

Dilma can be expected to pursue Lula's national-developmentalist strategy, in the energy sector, as well as Brazilian infrastructure in general.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2010 Menas Associates

Monday, 13 September 2010

Brazil: pre-election Sunday


Brazil is feverishly gearing up for the elections, which will be held in three weeks time on Sunday 3rd October. On that day the Presidency of the Republic, all 513 Chamber of Deputies seats, and 54 of the 81 Federal Senate seats will be contested, as well the governorships and state legislatures off all 26 states plus the Federal District of Brasilia. If necessary a second round will be held on 31st October, in case the candidate for either President or Governor fails to win more than half of the valid votes.

Brazilian elections are almost ideology-free and have a lot more to do with the individual candidates than with the party they represent. Indeed, the majority of the voters quickly forget which party a candidate stood for because so many of them tend to switch parties as soon as they are elected. Brazilian elections – particularly for the Chamber of Deputies – tend to be won by the more charismatic and popular candidates. This is because the sheer scale of the country, and its 100 million dispersed voters, means that television and advertising are essential for a successful campaign. Because campaigns tend to be expensive fundraising is vital for most candidates.

Hundreds of poor working-class Brazilians are paid to support a particular campaign. While the middle class supporters are more laid back, the poor cluster in groups of 5-10 waving flags and drawing attention to the mobile posters of their designated candidate. Each flag or poster has the candidate’s photograph and name, and a unique number. Therefore, for example, Dilma Rousseff - who is standing for the ruling PT as President Lula’s successor - is 13 while her main opponent Jose Serra is 45. For the much more junior Chamber of Deputies candidates it is a five figure number of which the first identifies the party - so all PT candidates begin with the number 1, the democrats of the DEM with the number 2; PSDB with 4, and so on.

The advantage of this numerical system is that all the voters – many of whom in the rural areas are still illiterate - are able to select their chosen candidate by their number. And then a few hours later – because of the miracle of Brazil’s very sophisticated electronic voting system which uses solar power in the remote Amazon so every vote can be counted and transmitted to the electoral authorities – everyone in Brazil will know if, as expected, Dilma has romped to victory in the presidential contest, and who of the thousands of local candidates has been elected to office.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2010 Menas Associates

Friday, 10 September 2010

Brazil: Election campaign momentum


José Serra's campaign is not doing well. He is trying to do in 40 days what PSDB failed to do in eight years of Lula's tenure. Serra's original assumption was that, given Lula's tremendous and unshakeable popularity, he should not criticise the president's performancebut focus on Dilma Rousseff.

Since Lula has adroitly managed to convince most of the electorate that Rousseff's tenure as president would be a mere formality, and a continuation of his own – and indeed that he would remain as president in all but name – it follows that Serra should attack Lula himself.

However, in the states the parties in Serra's coalition (PSDB-DEM-PPS) are blithely ignoring him. Tradition and ethics demand that the candidates for governor, senator, federal, and state deputy positions advertise the presidential contender in addition to themselves, but this is not happening. By contrast, Rousseff's campaign is blessed by Lula's appearance every time.

As the campaign unfolds, Rousseff has acquired self-assurance in live TV interviews, where she tries to underline both continuity with Lula's government and her own capacity for governing Brazil. Serra had been using the argument of his record of experience, but Rousseff is asserting her own experience.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2010 Menas Associates

Friday, 27 August 2010

Notes on Global Governance: A Brazilian Perspective


A month before the presidential elections due to take place on 3rd October 2010, Brazil finds itself at a cross-roads. The most likely winner of these elections is Dilma Rousseff, President Lula's former Chief of Staff, whose candidacy was created by Lula himself. It is a foregone conclusion that, if she wins – by a landslide in the first ballot, as expected – Lula will in fact continue to govern for another four years (2010-14), if not eight. The Brazilian people will in fact be voting for Lula, through Dilma as an intermediary. Thus, it is easy to appreciate the importance of Dilma's campaign slogan: continuity. And yet while Lula's system of government continues to prevail in Brazil, the rest of the world will move and change. It is important to reflect on Brazil's position within this dynamic context.

For the first time in Brazilian elections, foreign policy is part of the electoral campaign. Lula has exercised this policy at his will, under the near-imperial powers granted to the president under the constitution. However, Lula has never understood the difference between the state and the government, and the foreign policy of his administration has been that of his political party, PT (the Workers' Party), heavily ideological in content, and often questioned by the opposition and a large portion of the business community, academia and the media. Particularly distasteful to these groups are Lula's embrace of tyrannical regimes, and his inexplicable failure to sanction their gross human rights violations. Lula enjoys an extraordinary popularity rating (75 per cent) after his nearly eight years in office, thanks to his charisma and his uncanny, intuitive communication with the common people. These same qualities propelled him to a prestigious position on the international scene, but it is his persona – his rags-to-riches story, the exploit of a humble lathe operator rising to presidency of the fifth largest world economy – that has impressed foreign audiences and international organisations, and not his ideas, some of which are highly aspirant and idealistic like the fight against hunger, a programme that in Brazil itself has failed completely.

It is undeniable that Lula, thanks to his proactive diplomacy, has generated a much higher level of exposure for Brazil among international decision-makers. Occasionally, though due to his self over-estimation and lack of understanding of complex historical issues, this has led to disasters, such a botched attempt at Middle East mediation, yet they seem to leave him unperturbed. However, this kind of highly personalised presidential diplomacy, which favours form over content – often ignoring Brazil's very professional foreign service – is unique to Lula, and cannot be replicated. It certainly will not be emulated by Dilma Rousseff, a pallid technocrat who feels uncomfortable with the vagaries of domestic politics, let alone the international variety.

Dilma will have to confront the challenges of globalisation, and (if PT party lets her) it is probable that the foreign service will resume its position of controlling and implementing foreign policy. Lula had placed Brazil on a privileged situation, first in the G-8 (as part of the Outreach 5, with the Heiligendamm process), then in the G-20. The obsolescence and decline of the United Nations; Brazil's inability (for the past 65 years) to secure a permanent seat on the Security Council, an aspiration for which the Lula government made heavy sacrifices; the failure to bear fruit of “strategic partnerships” launched with China, India and Africa when it came to the crunch; the growing irrelevancy of UN and regional specialised agencies, incapable of modernising themselves to face new times; all of these factors, and others, led Brazil under Lula to seek new alliances in informal groupings such as the BRICs (Brazil Russia India and China) and IBSA (India, Brazil, South Africa), to cultivate a South-South relationship and to strengthen ties with Arab and African countries.All of these initiatives, quite costly to the Brazilian taxpayer, have not had an impact on global governance.

Under Lula, Brazil has created many expectations in the Latin American region, Africa and the world at large. So far, they remain largely unrequited. Rhetoric in the G-20 has not been followed by action. The president's vibrant personality has not had an impact of an international scale. However, two achievements stand out: Brazil's role in maintaining stability in Haiti. And the commitment made at the COP-15 Copenhagen conference of December 2009 to reduce greenhouse-gas emissions (GHG). Aside from the aforementioned, Brazil's diplomatic successes on the world stage are largely theoretical. Yet there is no doubt that the country is now a major player on global governance. This in itself is commendable, but the fact remains that given a rostrum from which to address mankind there has to be concrete, viable proposals aiming at peace, security and sustainable development. It remains to be seen if Dilma Rousseff's government will be able to avail itself of the opportunity, created by Lula, to make a significant contribution.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2010 Menas Associates

Thursday, 26 August 2010

Commentary: Brazil's presidential election


To the extent that polls can be relied upon, the three largest polling organizations in Brazil concur that the Partido dos Trabalhadores' (PT) Dilma Rousseff has indeed a significant and widening edge over the Brazilian Social Democracy Party's (PSDB) José Serra. Her victory in the first ballot is at this stage probable, but by no means a shoo-in. Surprises can happen.

Serra has, however, run a lukewarm campaign, in part due to his personality and in part owing to his fractious coalition, whereas from day one outgoing President Lula embraced Dilma as his heiress apparent, leaving no doubt that he would remain in control during her tenure. Given his astonishing popularity ratings (75 per cent), Serra avoided confronting him. It was a duel between Lula's raw charisma and Serra's pallid accounts of his government experience, about which nobody cared.

A refurbished and embellished Dilma performed well on TV and in debates, where Serra had expected to crush her. This did not happen. Unless Serra becomes more aggressive in the remaining month, he will have lost the campaign and the presidency. The Green Party's Marina Silva trails with 8 per cent, and it is possible that some of her votes would accrue to Serra in a run-off – if there is one.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2010 Menas Associates