The Bolsonaro-Trump Relationship: Costs for Brazilian Values and Interests

By Laís Forti Thomaz and Tullo Vigevani*

Bolsonaro and Trump

Jair Bolsonaro (L) shakes hands with Donald Trump (R) at the White House in 2019/ Palácio do Planalto/ Flickr/ Creative Commons License (not modified)

New priorities in Brazil-U.S. bilateral relations since President Jair Bolsonaro took office in January 2019 have shifted the country away from its longstanding diplomatic values. In his eagerness to demonstrate a strong capacity to reach international deals, Bolsonaro has made concessions in talks that haven’t produced concrete benefits for Brazil.

  • Talks on a proposed merger of Boeing and Embraer ended when the U.S. company walked away from the table. Negotiations with the United States on the use of U.S. technology in space launches from the Alcântara Launch Center have been inconclusive – even after reaching the Alcântara Technological Safeguards Agreement (AST) and the Research, Development, Test, and Evaluation Agreement (RDT&E). Brazil granted a visa waiver to U.S. travelers without any reciprocity for Brazilian citizens visiting the United States. Even the government’s interest in joining the OECD has been controversial: its candidacy required Brazil to abandon its developing-country status at the WTO, and the Trump Administration then gave priority for OECD accession to Argentina.
  • In trade, for years Brazil has been one of the few countries in the world that has maintained a steady deficit with the United States. The expansion of quotas on ethanol and wheat from Brazil in favor of the U.S. (without opening the market for Brazilian agricultural commodities like sugar) and steel and aluminum tariffs are examples of unbalanced trade issues. The Brazil-U.S. Commission on Economic and Trade Relations has been negotiating various rules, but tariffs are not on the table. USTR Robert Lighthizer has stated, moreover, that the Administration doesn’t have “any plans right now for an FTA with Brazil.” A new “mini” trade deal supported by the Brazil-U.S. Business Council and the American Chamber of Commerce in Brazil may be forthcoming, but there is no evidence that it will better distribute the benefits of trade between the two countries.
  • When Trump mentions countries with the worst performance in combating COVID-19, he highlights Brazil and supports measures to prevent Brazilians from entering the United States.

The Bolsonaro Administration does not appear troubled by these failures, despite Brazil’s unilateral concessions, because they parallel the President’s worldview. Bolsonaro’s philosophical approach to foreign affairs is not far from the idea of the Monroe Doctrine and the realist theories that prevailed during the Cold War, but this time against China. The inclusion of Brazil as a major non-NATO ally can be seen in this logic. His team considers a close relationship with the Trump Administration as essential to Brazil in order to achieve its economic, strategic, and political objectives.

  • Bolsonaro and his advisors may also believe their responsibility is diluted by the fact that most of the recent agreements emerge from negotiations that started in previous Administrations, especially during Michel Temer’s 28 months in office preceding Bolsonaro’s inauguration in 2019. But the way that Bolsonaro concluded these agreements reversed key elements of traditional Brazilian diplomacy. Among them are the prominence of the advocacy of multilateralism, opposition to any kind of unilateralism, and respect for international law and sovereignty. Former Brazilian foreign ministers serving presidents of all major political parties since 1990 have issued a statement regretting this shift away from Brazilian allegiance to international institutions.

As with his embrace of chloroquine as a COVID‑19 treatment, Bolsonaro seems to believe that Trump’s solutions to bi-national problems are in Brazil’s interest. The resulting alignment with Washington borders on subservience – harming Brazil’s other strategic partnerships and strong foreign policy principles. Brazil is drifting away from Latin America, especially Argentina, as well as from the BRICS countries. The government is also neglecting Mercosur, despite the collective’s recent agreement with the European Union. Some European countries, concerned about Brazilian government policies on the environment and Amazon rainforest preservation, have been questioning Bolsonaro’s attitudes and cooling on the deal. While the Brazilian Constitution gives priority to peaceful relations with all countries, members of the Bolsonaro cabinet have suggested supporting a possible invasion of Venezuela.

  • The lack of concrete benefits for Brazil from the U.S. relationship does not appear likely to drive a reassessment of Bolsonaro’s approach. Similarly, the government’s Trump-like confrontations with a large part of the international community, including the World Health Organization (WHO) and the United Nations (UN), show no sign of diminishing despite their high costs. Brazil and the United States have been strategic partners – as Presidents Lula da Silva and George W. Bush reaffirmed in 2005 when establishing a new strategic dialogue – yet the two countries’ current presidents have disrupted the terms of this relationship in ways that will take years, if not decades, to mend.

July 13, 2020

*Laís F. Thomaz is Professor at the Federal University of Goiás (UFG). Tullo Vigevani is Professor at the State University of São Paulo (Unesp) and researcher of the Center of Contemporary Culture Studies (CEDEC). Both are researchers at the National Institute of Science and Technology for Studies on the United States (INCT-INEU).

Brazil: Presidential Lockdown?

By João Jarochinski Silva*

Bolsonaro Questioned

Bolsonaro addresses the press, May 2019/Palácio do Planalto/ Flickr/ Creative Commons License

Brazilian President Jair Bolsonaro faces mounting crises that could cut short his term in office and prolong Brazil’s multi-year political turmoil. The departure last month of two of his most widely respected cabinet members – Health Minister Luiz Henrique Mandetta and Justice Minister Sérgio Moro – came on the heels of other bad news as Bolsonaro completed his 16th month in office.

  • Brazil’s GDP grew only 1.1 percent in 2019 despite the government’s promise that pension reform and other measures would make it almost double that. Most of the growth, moreover, came from the informal sector, not the entrepreneurial class that was expected to back Bolsonaro. Moreover, all predictions are that economic performance will decline significantly because of COVID-19.
  • A number of disputes have significantly eroded his political base. In his first year as president, he left the Liberal Social Party (PSL), which gave him a home and crucial help in his campaign and early days of government. Since November, he has been trying to create a new party, Aliança pelo Brasil, but it is unlikely that he will have it ready to participate in this year’s municipal elections (Brazil has 5,000 municipalities) or able to attract politicians, mainly deputies and senators, to form a consistent base in Congress. These likely failings will affect the party budget and its TV time in the national elections of 2022. Social media was central to Bolsonaro’s successful formula last year, but observers wonder if the magic will remain.

In this context, his decision to fire Mandetta and Moro’s decision to resign are particularly severe blows.

  • Bolsonaro and Mandetta had clashed over how to deal with the COVID‑19 crisis. Bolsonaro wanted to reopen some sectors of the economy, but the minister – with apparently strong public support – sought to follow the international protocols established for “flattening the curve” to protect the health system from collapse.
  • Moro disagreed with the President’s decision to fire the commander of the Federal Police when investigations appeared to be closing in on some activities of his sons. As lead ex-judge of the Lava Jato investigations, when Moro joined the administration, he brought credibility among some sectors to the Bolsonaro government’s stated commitment to anti-corruption. Moro’s speech on leaving the ministry suggested that he felt betrayed.

Bolsonaro’s strategy at this point appears to focus on reaching out to two constituencies that he considers reliable: Evangelical Christians and the military.

  • Two of his sons, while managing to keep their government positions, shifted to the Partido Republicano, which has strong links with the Universal Church of the Kingdom of God and the second most-watched TV channel in Brazil, and other Evangelical groups. These groups are historically linked with the Centrão, a group of parties that do not have long-term political allegiances but support anyone who promotes their most immediate interests on issues such as federal administration and control over some areas with great budgetary power in the government.
  • Bolsonaro has also given the military a central political role in his government. Several government posts are held by retired and active-duty military officers, some of whom, like Moro, brought good levels of public approval to the administration. Some were seen as agents capable of taming Bolsonaro’s impulsiveness, even if evidence of success has been lacking. By lashing himself to military officers, however, Bolsonaro has tied the armed forces to his own fate and essentially coopted the officer corps into supporting him. In the event of an impeachment or other trauma, Vice President Hamilton Mourão, a retired general, and others would be held responsible for the government’s failure.

At this point, there is no good scenario for the Bolsonaro government – and COVID and other factors raise the specter of very bad scenarios in which courting the Centrão will be costly politically and financially. His alliances with the Centrão and the military also put at risk what little credibility he may have had remaining on anti-corruption after Moro’s defection. The military may not always want to be the guarantors of the government for public opinion.

  • The military will assume a technical role in dealing with the consequences of the coronavirus, including managing the impact of the economic decline such as a worsening of social tensions, but the results in terms of governance are unpredictable.
  • As Bolsonaro gropes for a way ahead, Vice President Mourão seems unlikely to willfully trip him up. Despite investing in a more thoughtful and responsible image than the president, he has not projected himself as an alternative. But the pressures for impeachment could mount steadily. Former Justice Minister Moro will be an important factor in any future scenario, but he will have to face angry supporters of Bolsonaro, mainly on social networks. A deep sense in the ranks of the other parties that he had a political agenda and lacked impartiality in the trials related to former President Lula by the Brazilian Supreme Court promises to continue the fireworks.

May 5, 2020

* João Jarochinski Silva is a CLALS fellow and professor at the Universidade Federal de Roraima (UFRR).

Brazil: Politicizing Refugee Policy

By João Jarochinski Silva*

Venezuelan refugees in Boa Vista, Brazil

Venezuelan refugees in Boa Vista, Brazil/ Wikimedia Commons/ Creative Commons License

Brazil’s decision to welcome Venezuelan refugees is based on political calculations — part of President Jair Bolsonaro’s domestic agenda, anti-Maduro policies, and efforts to polish his international image — while asylum-seekers of other nationalities are getting a distinctly colder shoulder. The country’s National Committee for Refugees (CONARE), which includes representatives of the Executive Branch and civil society, granted refugee status to approximately 37,000 Venezuelans between December and January. As permitted by Brazilian law, CONARE granted them prima facie refugee status — by virtue of the serious and widespread human rights violations in their home country — without requiring individual interviews. It was an unprecedented number, with strong support from the government, and responded to appeals from civil society and academic experts.

  • While the number of Venezuelans in other South American countries is greater, Brazil now has the most officially designated refugees. It previously had only a little more than an estimated 5,000 refugees of all nationalities — one-eighth its current total.
  • A generous refugee policy has been a key element of Brazilian foreign policy since the 1990s, often the subject of officials’ speeches in UN contexts. The current Administration’s rhetoric, however, has been different. While visiting India in 2019, Bolsonaro criticized a Brazilian law passed in 2017 (when, he claimed, he was the only deputy to cast a dissenting vote) that liberalized the country’s policies toward migrants — constituting a law in which foreigners would not be seen as threats to Brazilian society and also impacted the reality of refugees.

The recent decision to accept tens of thousands of Venezuelans appears motivated by the Bolsonaro Administration’s opposition to Venezuelan President Maduro — as well as Brazil’s left-leaning parties — more than by the humanitarian ideal of helping people fleeing crisis.

  • The Ministry of Justice has argued that non-Venezuelan arrivals are a security threat and need greater control. It introduced a legal regulation that increased control and facilitated the expulsion and deportation of foreigners, with some provisions that specialists claimed to be contrary to Brazilian laws. The regulation was revoked but made clear that the agency will continue to emphasize the security dynamic created by the entry of foreigners.
  • Minister of Justice Sergio Moro recently sent a message on social media stating that “Brazil will no longer be a refuge for foreigners accused or convicted of common crimes” [emphasis added]. With prior approval of CONARE, he rejected an appeal by three Paraguayans, who received refuge in Brazil in 2003 but were recently facing removal, and maintained the revocation of their refugee status.
  • Critics cite Moro’s use of social media to announce a technical decision as confirmation that his intention was primarily political. They note the ideological affinity between the current Brazilian and Paraguayan governments as being more important than the asylees’ previously determined well-founded fear of persecution — a violation of international law regarding non-refoulement. Critics also point out that the three Paraguayans were politically active with left-leaning groups opposed to Bolsonaro.

The contrast between the government’s and Moro’s attitudes toward asylum-seekers from Venezuela and elsewhere is striking. When confronted with evidence of rising crime by Venezuelan arrivals along the Brazilian border, the Minister said local authorities’ evidence was inconclusive. Bolsonaro’s supporters in the border state of Roraima protested Moro’s statement, but a subsequent decision to close the border for 15 days to foreigners without a permanent residence permit — allegedly in response to the threat of coronavirus — has calmed their concerns.

The CONARE decision on Venezuelans may have been intended in part to remove a glut that had slowed the entire refugee system, but the disparity in the treatment of asylum-seekers primarily reflects Brazil’s deep political polarization. Government discourse portrays its domestic opponents as being irresponsible leftists akin to Venezuelan President Maduro, who is so bad that starving refugees show up on Brazil’s doorstep, while praising rightist governments, to which even 17-year asylees can be repatriated without concern for their treatment. The Brazilian military’s deep involvement in operations regarding Venezuela also incentivizes civilians to help keep the status of refugees from becoming a political embarrassment.

  • Politicization of refugee policies and implementation is not unprecedented in Brazil. CONARE, the Brazilian government, and, indirectly, the UNHCR will determine how long this trend will continue. Altering Brazilian action to meet current political interests weakens the rights of refugees and related protective principles embodied in the Constitution and legislation.

March 23, 2020

* João Jarochinski Silva is a CLALS fellow and professor at the Universidade Federal de Roraima (UFRR).

Brazil: Relative Success – So Far – Receiving Venezuelan Refugees, Migrants

By João Jarochinski Silva*

Venezuelan migrants walk past UNHCR tents at a camp in Boa Vista, Roraima

Venezuelan migrants walk past UNHCR tents at a camp in Boa Vista, Roraima/ Marcelo Camargo/ Wikimedia Commons/ Creative Commons License

The influx of Venezuelan refugees and migrants since 2013 into the Brazilian state of Roraima has challenged the state’s ability to settle them, but a continued or increased flow will require a significant expansion of efforts to relocate and integrate the new arrivals. The flow has not been unmanageable or caused significant problems in public services, as some local politicians claim, and has actually generated some benefits. In the past six years, over 260,000 Venezuelans have applied for refugee or residency status in Brazil, with the vast majority entering through Roraima, which is north of Manaus and shares borders with both Venezuela and Guyana. A voluntary relocation program, called Interiorização, has moved more than 20,000 to other Brazilian cities, but most remain in municipalities near the border. Roraima state itself has less than 600,000 inhabitants.

  • The Venezuelans in Roraima are mostly working age (16-64 years old). National authorities, assisted by UNHCR, the International Organization for Migration (IOM), and others, have developed policies related to education, training, and employment to take advantage of their productive capacity and facilitate their integration in Brazil. These initiatives enhance the emergency benefits the migrants receive and help them become autonomous.

International, national, and local experts, including at the Federal University of Roraima, Getulio Vargas Foundation, and OBMigra, have found that the Venezuelan arrivals’ impact on Roraima has been mixed.

  • The state registered positive economic growth and diversification during 2016‑17, the period of most intense Venezuelan flow, when Roraima’s GDP grew 2.3 percent, compared to the 1.4 percent of other Brazilian states. In the two following years, the state registered significant growth in agricultural production, including Brazil nuts and some livestock items, and showed the largest recorded increase in planted area (28.9 percent), while Brazil as a whole saw a decline of 0.6 percent. Roraima surpassed all other regions with an 8 percent increase in its economic diversification index. Expanded retail trade and exports in 2018‑19 fueled a 25 percent increase in tax revenues.
  • Unemployment and poverty, on the other hand, also rose during this period. While many of the Venezuelans found jobs in services such as restaurants, retail, and construction, unemployment in the state rose by 6.1 percentage points between 2017 and 2019, while Brazil’s national rate fell 0.6 percentage points. The incidence of extreme poverty in Roraima also grew from 1.64 percent in 2015 to 5.7 percent in 2018, compared to 4.2 percent nationally in 2018. (The new Venezuelan workers, however, have not significantly reduced the wages of Brazilians living in Roraima.)

Local anxieties about new strains on social services have not been fully borne out. The Venezuelans have enrolled children in schools and used medical services, but available data do not show unusually high demand. There has been, in fact, a downward trend in outpatient care provided by Roraima municipalities, and the increase in hospitalizations in the state coincided with that seen nationally.

  • The research suggests that the state’s increase in tax revenues is on a par with the additional costs of these and other services provided to the Venezuelans. Both figures are about US$22.5 million.

Roraima’s experience – so far – shows that the influx of refugees and migrants into Brazil has not had a profound impact, but the crisis in Venezuela shows no sign of abating and could get worse. Roraima, the state with the smallest population in Brazil, has a limited ability to absorb new arrivals and settle them locally without significant new resources. Expansion of the successful elements of Roraima’s approach, such as the voluntary Interiorização relocation program, would help. Additional work-related training and professional qualification programs would also help new arrivals contribute economically after relocation. Particularly if flows continue to be strong or increase, Roraima state and its municipalities are likely to feel growing urgency to develop systems to manage them and beef up social protection networks to support relocation – with the same goal of taking advantage of the economic potential of the Venezuelans’ full social and economic integration.

February 3, 2020

* João Jarochinski Silva is a CLALS fellow, professor at the Universidade Federal de Roraima (UFRR), and one of the report’s researchers. The research, funded by the Escola Superior do Ministério Público da União (ESMPU) and the UNHCR, is available here in Portuguese.

Latin America: Growing Threat from Brazil’s PCC

By Ludmila Quirós*

City view of Pedro Juan Caballero

Pedro Juan Caballero City, Paraguay/ Wikimedia Commons

The Brazilian prison gang “First Capital Command” (PCC) is extending its influence far beyond the original base it had in Brazil when it formed around 2005, now threatening security far beyond prison walls and Brazil’s borders. Over the past 10 years, according to my estimates, PCC has consolidated its power in 24 of Brazil’s 26 states. Moreover, the group’s criminal activities – attacks, prisoner escapes, and drug-related activities – now involve branches in Paraguay, Bolivia, and Argentina – and as far north as Venezuela and Colombia. They have sleeper cells (Argentina and Uruguay); alliances with clans linked to narcotraffickers (Bolivia, Colombia, and Venezuela); and deep penetrations of governments (such as Paraguay).

  • In Paraguay, where the depth of its cooptation of state authorities is most obvious, PCC is most active. In mid-January, the dramatic escape from a Paraguayan prison on the Brazilian border underscored the scope of the problem. Some 75 prisoners, including a dozen PCC members, fled the Pedro Juan Caballero Prison through a tunnel that Paraguayan authorities knew about but were unable to close because of corruption at multiple levels, according to numerous sources.
  • In Argentina, national authorities have been tracking the group’s growth since the first infiltration of cells in 2018, when elements attempted to enter a jail in Oberá, in the province of Misiones near the “Triborder Area” with Paraguay and Brazil. Otherwise, the group seems to be keeping a low profile, suggesting an emphasis on the emplacement of sleeper cells for the time being. These individuals could be involved in creating “micro-trafficking” networks and establishing communications with allies under arrest for drug activities, but confirmation is lacking.
  • Other PCC members appear to be setting up in Uruguay, where preliminary circumstantial evidence suggests they’re involved in laundering PCC funds, and in Bolivia, where establishing drug routes into Brazil would be top priority. In Colombia and Venezuela, which are more directly involved in the drug trade, PCC has similar activities, according to research. Efforts in Colombia involve “transfers” of senior PCC members to that country to negotiate the purchase of drugs and to manage their transport through chains that get the product into Brazil.

Although PCC’s corrosive influence is being felt gradually throughout the continent, Paraguay is clearly the group’s most vulnerable target. Its allies function as full franchises of the Brazilian PCC, and the prison escape, indicating that they have bought the cooperation of very senior officials, suggests it is able and willing to assume an even greater role in the country. PCC’s ability to negotiate among gangs in Brazil on issues as sensitive and strategic as levels of violence and truces means that in even more vulnerable societies, such as Paraguay, it could rise to play a kingmaker role on a range of security matters. In that context, prison escapes like last month’s enable it to do more than recruit local members and allies; they give PCC concrete leverage to use in interactions with Paraguayan authorities.

  • This possible contagion effect – infiltrating other countries and developing loyal followers – will increasingly challenge the regional and national security institutions in the region at a time that governments are distracted by other pressing issues and there is relatively little understanding of how organized crime is evolving.

February 6, 2020

Ludmila Quirós is a researcher at the Center for Studies on Transnational Organized Crime (CeCOT) and the International Relations Institute, La Plata National University in Argentina.

Brazil: Will Lula Shake Things Up?

By Fábio Kerche*

lula

Former Brazilian President Lula Da Silva/ Flickr/ Creative Commons/ https://bit.ly/2TxyFJ7

Former Brazilian President Lula da Silva — out of prison but not acquitted of his alleged crimes — is stirring up the country’s political debate, but he faces tough challenges reestablishing his leadership and revitalizing his party, the Workers’ Party (PT).

  • After serving 580 days of a 12-year sentence, Lula was released from prison earlier this month when the Supreme Court ruled that, under the Brazilian Constitution, one can be imprisoned only after judicial appeals have been completed. The court did not explicitly say that prosecutors rushed Lula to prison in order to remove him from the presidential race that led to President Bolsonaro’s election in October 2018, but a number of Brazilian legal experts believe that to be the case. The good news for Lula is that the majority of the Brazilians support his release — 54 percent, according to Datafolha, Brazil’s most important survey center.
  • Even though he is out of prison, Lula will not be able to run for office again unless his previous convictions in lower courts are annulled or overturned by higher courts — which could take a long time. (The electoral law specifies that someone convicted at two different levels of the judiciary cannot run for office.) The former president is apparently hoping that leaks published last June by The Intercept revealing allegedly inappropriate contacts between prosecutors and the judge on Lula’s case, Sérgio Moro, are reason to overturn his convictions. Prospects of such a reversal appear poor, however, because Moro, currently Bolsonaro’s Justice Minister, has a clear incentive to put Lula back behind bars, and observers say he retains considerable influence in the Judiciary.

In the short and medium term, Lula’s strategy appears to be to erode the Bolsonaro Administration’s support and lay the groundwork for his own party’s next campaign, in next year’s municipal elections. His freedom allows him to travel around the country, make political talks, and build alliances.

  • His most ardent supporters remain loyal; he still has strong backing at a popular level; and still projects formidable charisma, according to many observers. While some of his speeches since his release have been more aggressive, his current political drive signals that he will seek to broaden alliances beyond the left.
  • But Lula faces huge political challenges. There are signs that his influence has diminished in recent years thanks to his legal baggage and economic mistakes made by the administration of his successor, former President Dilma Rousseff. Some is also due to unrelenting attacks on him and the PT by the media —portraying him as a radical. Splits in the left, including the lack of an identifiable candidate to replace Lula in the 2022 elections, are also a vulnerability.

Brazil has changed since Lula was arrested: Temer was president; the PT led in the polls; the economic elite’s candidate was from the Social Democracy Party (PSDB), and Bolsonaro was not widely considered a viable candidate. Lula’s challenges as he tries to rebuild his image and his party are huge. An immediate one is an effort by some members of Congress to modify the law that protects defendants from prison until all appeals have been heard, except if the defendant poses a threat to society or investigations. The goal is put Lula in prison again, to reduce his influence in the political game. For a number of jurists, however, this modification would be considered unconstitutional.

  • Next year’s local elections will be the first big test of Lula’s ability to negotiate widely and reorganize opposition to Bolsonaro, win control over the government in major cities, and prepare a PT alternative in the 2022 presidential election.
  • Bolsonaro is not without problems. His popularity is suffering due to the economy — high unemployment, low quality of jobs offered, and very low growth — and some unpopular policies, such as tougher rules for retirement. The president and his sons retain a major edge in social media, but Datafolha this week reported that 36 percent of respondents classified Bolsonaro’s government as “terrible.”

Lula’s best hope seems to convince the Brazilians that the corruption charges were political constructions by his adversaries — a tough task — and that PT and its allies can restore the pace of economic growth obtained during his administrations. Next year’s local elections are key for this project.

December 12, 2019

* Fábio Kerche is a professor at UNIRIO and IESP-UERJ in Rio de Janeiro. He was a CLALS Research Fellow in 2016-2017.

 

Brazil: How Long the Nightmare?

By Luiz Carlos Bresser-Pereira 

Current Brazilian President Jair Bolsonaro shaking hands with former President Michel Temer

Jair Bolsonaro (right) meeting with former Brazilian President Michel Temer (left)/ Flickr/ Creative Commons/ https://www.flickr.com/photos/micheltemer/45044560194

The decline of Brazil’s democratic culture since 2013 has thrust the country into nightmarish times from which only its ample civil society, if mobilized, can rescue it. The media daily reveal evidence that many Brazilians now celebrate violence, irrationality, torture, racism, and the demeaning of education, science and culture. We are witnesses to a blend of authoritarianism and radical economic liberalism, explicit subordination to the United States, and abnormality and evil.

  • Many Brazilians long nostalgically for the 20 years behind us, when two parties – one left- and another right-of-center – alternated as incumbents. They were subject to hits and misses, achieved good and bad outcomes. Each side swore that its policies and results were the best, but they were democratic, and they knew the meaning and rules of politics. Until 2013, politics was not a bitter fight between enemies that hated each other, but a compassionate fight between mutually respectful adversaries.

The two adversaries were the Social Democracy Party (PSDB) and the Workers’ Party (PT) – one standing for liberal orthodoxy, the other for distributive orthodoxy. The former put its chips on the markets, the latter on industrial policy. The PT achieved greater growth because it increased public investment and benefitted from the commodities boom of the 2000s, but the two administrations fell into the macroeconomic trap of high interest rates and an appreciated exchange rate that prevented private-sector investment.

  • On the fiscal level, after the financial crisis of 1998, the two administrations posted satisfactory primary surpluses up until 2013. Crisis in 2014 changed all that. Commodities prices plunged; a fiscal crisis ended surpluses and caused a large primary deficit; manufacturing firms were unable to turn a profit because of an overvalued real that flooded the domestic market with imports and caused excessive corporate indebtedness.

The political crisis might have been resolved or partly addressed if the opposition had won in 2014. The reelection of President Dilma Rousseff deepened it instead as her new term began with no support whatsoever from the economic elites.

  • During his brief period as Minister of Finance, Nelson Barbosa attempted to counter the fiscal crisis with a sharp current-spending cut, while increasing investment. Instead, the country returned to an absurd procyclical policy that persists to this day and keeps unemployment at unacceptable levels.
  • These mistakes were the fruit of the deep political crisis that since 2013 put hatred at the heart of political life. Although classic liberalism is defined by tolerance and some level of relativism concerning truth in politics, a form of intolerant liberalism emerged among the liberals, and Luiz Inácio “Lula” da Silva (president in 2003-2010) and the PT were turned into enemies, even if they were simply adversaries. The leaders of the Lava Jato (Car Wash) investigations took advantage of this hatred for self-promotion. Michel Temer, vice president under Lula’s successor, Dilma Rousseff, took advantage of it to take over, using his “A Bridge to the Future” plan as an instrument. President Jair Bolsonaro, who took office on January 1 this year, harnessed the hatred to win last year’s elections, while relying on economist and investment banker Paulo Guedes as an assurance of a neoliberal economic policy.

For nine months, governmentlessness has resulted, with little or no prospect of a return to right-of-center liberalism or left-of-center developmentalism. Brazil does not appear headed back to the path of normalcy and a healthy alternation of moderate and democratic parties. Brazilians do not know where they are headed, but one thing for sure is that the rule of law and democracy are facing very severe risks. Only a far-right minority truly identifies with the incumbent administration’s policies. But Brazil’s civil society is already well organized, with a working class, a middle class, and a varied and qualitative business class. These are the assets that could help the country overcome the nightmare into which it has plunged. 

September 24, 2019

* Luiz Carlos Bresser-Pereira is emeritus professor of the Getulio Vargas Foundation, has served as government minister in several Brazilian administrations, and is author of numerous books and articles catalogued at www.bresserpereira.org.br.

 

Brazil: Corruption of Anti-Corruption

By Fábio Kerche*

Moro, Bolsonaro, and Paraná governor Ratinho Júnior seated during a visit to the Integrated Center of Intelligence and Public Security of the Southern Region in May 2019.

Moro, Bolsonaro, and Paraná governor Ratinho Júnior during a visit to the Integrated Center of Intelligence and Public Security of the Southern Region in May 2019/ Marcus Correa/ Wikimedia Commons

New revelations about the political objectives and operational decisions of Brazil’s Lava Jato anti-corruption investigators have dealt a blow to their credibility and to the legitimacy of President Jair Bolsonaro’s election. The “Car Wash” Operation began in 2014, with prosecutors and Judge Sérgio Moro leading what was seen as a crusade against corruption and in the process becoming heroes for significant portions of society. It started with an investigation into Petrobras, the biggest state-owned company, and spread across several sectors of the economy. Although the activities of several political parties came under scrutiny, the left-wing Workers’ Party (Partido dos Trabalhadores – PT) suffered the most. President Dilma Rousseff was impeached and removed from office, and President Lula da Silva was arrested – opening the path for Bolsonaro, a far-right politician with an undistinguished political biography, to win the 2018 election.

  • Bolsonaro appointed Lava Jato judge Moro as his Minister of Justice – a move cited by some observers as evidence of the new President’s commitment to fight corruption. Others, however, were concerned that Moro’s acceptance of the job confirmed long-held suspicions, based on his own statements against Lula, that the lawsuit against the former president was a political farce to get him out of the race. Critics said the new job was Moro’s reward for putting Lula, who was leading in all polls during the campaign, behind bars. Some political analysts and journalists even speculated that Moro would run for President in 2022.

The Intercept, a news website co-founded by Pulitzer-winning U.S. journalist Glenn Greenwald, has published internal messages between Moro and Lava Jato prosecutors that confirm they had a political agenda. The communications confirm several violations of the law and ethics.

  • According to Brazilian law, prosecutors and judges cannot exchange information about cases outside of court, particularly in a secret way. Judges, according to the legislation, should listen to the prosecution and the defendant’s attorney in an equitable way. A judge exchanging messages by Telegram with a prosecutor about a lawsuit is illegal.
  • Moro took a firm hand in directing the prosecution team – another violation of LOMAN (Organic Law of the Judiciary). The Intercept has so far released only 1 percent of the conversations, but the information already shows that Moro criticized members of the team, gave others tips on how to proceed, asked for new police operations, recommended press strategies, steered investigators away from looking at possible wrongdoing by former President Cardoso, and undertook other initiatives. Lula’s defense did not have the same “opportunity”: the judicial balance weighed heavily on the prosecution side.

Moro has not been dismissed in the wake of these revelations, and the charges against Lula have not been cancelled – as would have happened in a less turbulent political environment. But there are clear signs that Moro has been losing support in Brazilian society. Even the news media who transformed him into a hero now criticize how he handled Lula’s case, and persons who supported Lula’s arrest now affirm that the former president should be released. The Brazilian Bar Association and some Judges Associations are openly criticizing Moro. Talk of Moro getting a seat in the Supreme Court or running for president in 2022 has evaporated.

Moro and his cohorts’ crusade against the alleged corruption of PT leaders whose politics or style they didn’t like amounts to use of the Judicial System to interfere in politics – if not criminalize what, in many ways, are normal political activities. The apparently illegal alliance between Moro and prosecutors seems to leave little doubt that Lula was convicted in an unfair trial based more on biased opinions rather than objective evidence. His supporters’ claim that he is a political prisoner increasingly makes sense. The Brazilian judicial system is supposed to give every citizen a fair and balanced trial. Although annulling Bolsonaro’s election seems impossible, the fact has been established that Moro was able to interfere in the electoral process by removing the leading candidate from the presidential race. The judicial fraud that marred the 2018 election has dealt yet another blow to Brazilian democracy.

June 28, 2019

* Fábio Kerche is a Researcher at Casa de Rui Barbosa Foundation and Professor at UNIRIO and IESP/UERJ in Rio de Janeiro. He was a CLALS Research Fellow in 2016-2017.

Brazil: Bolsonaro Targeting Political Participation

By Paulo Castro*

President Jair Bolsonaro of Brazil looking pensive

Jair Bolsonaro / Fabio Rodrigues Pozzebom – Agência Brasil / https://flickr.com/photos/129729681@N06/35164638165/ Wikimedia Commons

Brazilian President Jair Bolsonaro – unwilling or unable to engage in the coalition-building necessary to pass legislation – has focused an important part of his first 100 days in office on social policies that he can dominate with executive power while reducing citizen participation in policy formation. Elected in one of the most polarized elections in Brazilian history, Bolsonaro ran a campaign focused on fighting corruption and implementing a market-oriented economic agenda that would lead to GDP growth, with pension reform as its main pillar. His first months have been far from a “honeymoon” with Congress; a wide array of problems add up to a legislative inertia as seldom seen in contemporary Brazil.

  • Lacking a strong base in the House and Senate – and facing dissidence even within his own Partido Social Liberal – Bolsonaro has relied on the risky strategy of ignoring the nature of the Brazilian political system, which includes building support for his agenda in Congress, and is focusing instead on attacking adversaries and what he calls the “ideological agenda” of the Workers Party (PT). Meanwhile, key ministries have yet to announce even general policy goals. The Ministry of Education, which has the second largest budget in the federal government and is responsible for one of the most deficient areas of the country, has been largely silent even though reform of the early education system was one of Bolsonaro’s main campaign promises. The President has issued executive measures, such as the bureaucracy reduction decree this week to help business owners and start-ups, but has introduced no relevant legislative agenda.

Shifting social issues is the one area in which the government is running at full throttle. Social accountability, gender equality, and broader human rights initiatives have experienced budget cuts. Because many PT-era policies were implemented by presidential decree or ministerial order, the Bolsonaro administration can cancel or alter them without Legislative Branch approval. (Many changes in the economic area require amending the Constitution, with a three-fifths majority of both houses of Congress.) Far from the prying eyes of the press and markets, small changes in the government processes threaten to increase the country’s democratic deficit.

  • An executive order signed by Bolsonaro abolished more than 600 civil society participation councils that promoted transparency and accountability by bringing civil society into policy discussions. Bolsonaro has eliminated the National Environment Council, the National Council of People with Disabilities, National Council for the Promotion of LGBT Rights, National Commission for the Eradication of Slave Labor, and National Commission for the Eradication of Child Labor, among others. The Ministry of Women, Family and Human Rights, headed by conservative religious leader Damares Alves, has announced it will limit the number of requests analyzed by its Amnesty Committee, created in 2002 to promote remedial actions for victims of the military dictatorship in Brazil.
  • On the environmental front, conflict between farmers and indigenous people has escalated since Bolsonaro limited the powers of the Fundação Nacional do Índio (FUNAI). Along with the National Forest Service, he transferred FUNAIS’s responsibility for the demarcation of new indigenous lands to the Ministry of Agriculture, which is headed by Congresswoman Tereza Cristina, a former leader in agribusiness.

Bolsonaro is trying to appear confident, but the consequences of his inaction on big-picture items such as pension reform – which will affect economic performance and public perceptions of his effectiveness – will reach a point at which his emphasis on social, cultural, and symbolic matters will not be sufficient to maintain his position. By deinstitutionalizing democratic participation on these important social issues, Bolsonaro is further reducing the country’s ability to take up tough issues, such as the priority reforms awaiting Executive and Legislative Branch attention. When it comes to education and health policies, civil society organizations and union representatives have important roles in mobilizing the interests of beneficiaries. While it is natural that opposing governments have opposing political views, Bolsonaro’s actions don’t only reflect policy shifts; they amount to a substantive reduction in accountability and government responsiveness, closing important doors that enable citizens to influence public policy and make political processes more inclusive.

May 3, 2019

* Paulo Castro is Ph.D. Candidate in Political Science at the University of Brasilia and professor at the Brasilia Institute for Public Law. He has worked as an advisor and analyst in the Ministry of Justice and private sector organizations. He was a CLALS Research Fellow.

Brazil: Will Officers’ Role in Government Taint the Military Institution?

By Christoph Harig*

President and Vice President of Brazil

Vice-President General Hamilton Mourão and President Jair Bolsonaro / Pedro França / Agência Senado / Flickr / Creative Commons

More military officers have joined Brazilian President Jair Bolsonaro’s government than during most periods of the country’s last military regime (1964-1985), which raises the question how much the military – as an institution – will avoid compromising its supposed non-partisan nature.  The President, Vice-President, as well as eight government ministers, are retired or reserve military officers.  Bolsonaro furthermore nominated an active-duty army general as the government spokesperson.  In total, more than 100 reserve and active-duty military personnel serve in various ministries and subordinate government agencies.  Some officers have joined out of true allegiance, others, out of a sense of duty or because they want to prevent worse things from happening.  The government is drawing heavily on individual (mostly reserve) military officers, but the military as an institution is not running the government.  This is not a return to the military’s previous political interventionism: instead, a democratically elected government is (re)militarizing politics.

  • The military’s official discourse is keen on maintaining its image as a non-partisan state institution. However, officers are aware that this will be a challenge.  The presence of dozens of reserve officers in government agencies irrevocably connects the armed forces to the administration.  Although many officers do have reservations about Bolsonaro, others have proudly displayed their satisfaction with the victory of the former paratrooper.  Many citizens and international observers will thus perceive the government’s actions as being at least implicitly backed by the military.
  • For the armed forces, this involvement comes with opportunities as well as risks. On the one hand, there is a considerable increase in the military’s veto power.  They can expect privileged treatment and an effective representation of their interests.  The military might for instance be able to draw some red lines when it comes to being included in the government’s planned pension reform.  On the other hand, the prominent role in Bolsonaro’s administration attracts unwanted public scrutiny.  Discontent with an eventual preferential treatment of the armed forces in the pensions reform might grow louder than if the military had stayed below the radar.

So far, military officers’ involvement in government appears to have boosted the military’s standing.  The generals are widely being seen as a moderating force.  They have blocked some controversial foreign policy proposals of Bolsonaro and the radical wing of the government, such as the move of the Brazilian embassy in Israel to Jerusalem or the establishment of a U.S. military base on Brazilian soil.  Some observers even suggest that the generals have established a tutelary role in foreign policy after the Minister of Foreign Affairs ended military cooperation with Venezuela without consulting the armed forces.

  • Particularly Vice-President General Mourão – once known for threatening military intervention in politics and even considered a liability during the election campaign due to several ill-considered statements – excels in his newly found role as “adult in the room.” As President Bolsonaro is stuck in polarizing campaign mode (for instance, he keeps on attacking Brazil’s press and recently lauded late Paraguayan dictator Alfredo Stroessner as great statesman), it is fairly easy for Mourão to present himself as pragmatic and reliable statesman.  In this role, he led Brazil’s delegation to the Lima Group meeting in Bogotá, where he clarified that Brazil would not support a military intervention in Venezuela.

In the long run, the impact of officers’ enhanced policymaking role on the military’s prestige will depend on whether they stay clear of blunders, failures, and scandals.  While the military officers in government might succeed in playing a moderating role for the time being, this development entails considerable risks.  Within and outside of the barracks, there already is a widespread perception of the military as savior that is supposed to rescue Brazil in times of extreme crisis.  This historically grown paternalistic role of high levels of political interventionism – in which allegedly competent armed forces save the nation from incompetent civilian politicians – will only become further entrenched.

March 6, 2019

*Christoph Harig is a Postdoctoral Research Fellow in Political Science at the Helmut Schmidt University/University of the Federal Armed Forces in Hamburg, Germany.