Lula’s Legacy: The Two Brazils
Brazil is a country of paradoxes: President Lula embraces free trade, signs military agreements with Washington, is acclaimed as “Statesman of the Year” by the billionaires club at Davos in 2010 and has enriched bankers from Wall Street to the city of London; yet many western and a few Brazilian writers , Fidel Castro and other intellectuals and academics call him a “pragmatic leftist” or “progressive visionary”.
. - 14.04.10President Lula Da Silva announces the purchase of $4.4 billion dollars in new warplanes the same day that mudslides in Rio de Janeiro bury over 230 people living in precarious shanty slums neglected by the government housing authorities .While there is a total absence of a drainage system in the favelas, Lula spent billions on roads and ports for exporters but nothing for resident slum safety. Brazil is widely included as a newly emerging world power, along with China, Russia and India, the so called BRIC countries, and yet nearly forty percent of its population, lives on or below the poverty line, at or below the minimum wage of $200 dollars a month for a family of four.
Brazil’s attraction for many of its financial promoters is found in the size of its population of 210 million, the effective consumer market of over 100 million, and its agro-mineral resources: Brazil is one of the world’s biggest exporters of chickens, beef, soya, iron ore, cotton and ethanol.
Two other factors have recommended the Lula regime to both the right and left.The Right is pleased with Brazil’s stock market, financial sector and foreign owned banks (over 50%)which have gained and transferred over 150 billion in profits to overseas investors over the past 8 years of Lula’s rule. The ‘Left’ is enthusiastic about Lula’s independent foreign policy: his opposition to the US boycott of Cuba and exclusion from the Organization of American States; his economic relations with Iran despite pressure from Washington; his refusal to condemn Venezuelan President Chavez;and the fact that China has replaced the US as Brazil’s foremost trading partner as of 2010. Moreover, many defenders and apologists for Lula cite his “poverty program” which provides a $40 a month subsidy to 10 million destitute families , which has reduced poverty. The Lula Left forget the fact that the regime has failed to provide meaningful employment with adequate pay for the poverty subsidy recipients and has broken promises to carry out an agrarian reform for the 20 million landless rural workers. In other words, Lula’s supporters cite the regime’s policy of diversifying markets for Brazilian agro-mineral exporters and his multi-billion dollar electoral patronage subsidies to the poor as evidence of Lula’s “progressive” credentials.
Two other elements enter into the positive image of Lula: his working class, trade union origins and his continued high popularity ratings (according to recent polls over 60%). The “working class” background is over 20 years past: Lula has not worked in a factory for over 25 years.He has been a middle class political functionary of his party since the mid 1980’s. Moreover, Lula’s working class origins have no relevance to his current political and social commitments and appointments, which are tied to big business strategists and neo-liberal central bankers and economic ministers. What needs to be acknowledged is that Lula is a master at the politics of conservative populism: Lula excels in creating an emotional bond with the poor, through his face to face encounters and mass media imagery as “a man of the people”, even as he upholds a social hierarchy with the greatest inequalities in South America. No conservative neo-liberal leader in the US or EU can combine the façade of “populism” and the content of neo-liberal orthodoxy with the same success.
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