Lula Convicted: End of an Era?

By Anthony W. Pereira*

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Former Brazilian President Luiz Inácio “Lula” da Silva / Jeso Carneiro / Flickr / Creative Commons

Former Brazilian President Luiz Inácio “Lula” da Silva’s conviction last week on corruption charges was more than a legal decision and could mark a political watershed – the beginning of the end of “Lula-ism,” a political and redistributive pact that lasted from 2003 until 2010 which Lula has been offering to revive as a candidate in the 2018 presidential elections.  On July 12, Federal Judge Sergio Moro found Lula guilty of taking a bribe and laundering money, sentenced him to nine years and six months in prison, and banned him from taking public office for seven years.  This judgment, the first to convict an ex-president in Brazil, was the result of the Carwash anti-corruption investigations begun in March 2014.

  • The decision will be appealed to the Federal court for the Fourth Region in Porto Alegre. This court will probably rule on the case before the 2018 filing deadline for presidential candidates (yet to be decided, but usually in mid-August), and is expected to uphold the conviction.  Lula would be legally barred from being a candidate at that point, although he might mount some sort of challenge to such a ruling.  Lula’s strategy for now is to press on with his campaign, to criticize his conviction as political persecution that was not based on evidence, and to portray himself as a man of the people capable of taking on the “elite.”

Lula still has great strengths.  The basis of Lula-ism has been his personal appeal – he captured twice as many voters as did his political party, the Partido dos Trabalhadores (PT), in 2002 and 2006 – boosted by economic forces and public policies that raised the living standards of the poor.  With his finely-tuned ability to communicate to ordinary people, he showed that it was possible to both grow the economy and redistribute its fruits.  His government reduced poverty significantly, offered the poor inclusion in the consumer society and the chance of social mobility, and even achieved a modest reduction in income inequality – while promoting the interests of big companies.

  • But he may not have achieved the long-term realignment his supporters claim. Lula-ism proper only lasted for eight years, the length of his two presidential terms.  His hand-picked successor, Dilma Rousseff, ruled for almost six more years, but by the last year of her first term, poverty had stopped declining.  The current government of President Michel Temer has passed a constitutional amendment freezing federal spending in real terms for 20 years; the measure does not automatically reduce spending on social programs, but in the absence of tax increases that is what it has produced.  Temer’s own bribery scandal may take him down, perhaps within the next couple of weeks, but his policies raise a more fundamental question:  whether Brazil can return to economic redistribution, diminishing the severe inequality that still marks its society, without Lula-ism.

The organs of anti-corruption investigation and control that have challenged Lula, Dilma, and Temer – the media, the Federal Police, the Public Prosecutor’s Office, and the judiciary – are neither consistently politically neutral nor free of corruption themselves.  They are not a Deus ex machina that can free the Brazilian polity of corruption all by themselves.  For that, Brazil needs political reform, further changes in at least some of the rules that regulate elections and governance, a realignment of incentives faced by elected officials, state bureaucrats, business people, trade unions, and the electorate.

  • The PT and the other two most important parties, however, seem incapable of renovation despite leaders’ awareness of the low level of legitimacy with which they are viewed by voters. The PT has few viable new leaders and is clinging to Lula’s candidacy as its only hope of a return to power.  The Brazilian Social Democratic Party (PSDB) still nominally supports Temer.  And Temer’s own party, the Brazilian Democratic Movement Party (PMDB), is torn between defending the president in an act of self-preservation, and fearing the wrath of the voters in 2018.

Brazilians face a “trilemma”: they yearn for the three long hoped-for goals of sustained and successful anti-corruption investigations, political reform, and a return to economic redistribution.  Achieving two of those goals at the same time, let alone three, seems impossible.  The 2018 elections therefore will reveal a country in which anti-corruption investigations continue to knock major figures out of the political game, while political reform and economic redistribution are postponed.  The old cliché that Brazil is the country of the future takes on a new meaning in light of this somber possibility.

July 17, 2017

*Anthony W. Pereira is a Professor and Director of the Brazil Institute at King’s College London.

Can the 2018 Election Overcome Brazil’s Crisis of Legitimacy?

By Fabio Kerche*

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The Brazilian flag. / Club Med UK / Flickr / Creative Commons

The political and economic crisis punctuated by the impeachment of Brazilian President Dilma Rousseff in 2016 persists unabated under the troubled administration of Michel Temer.  Stagnation is fueling unemployment, and the government’s efforts to rein in pensions and limit public spending are reinforcing the perception that the principal objective of those who ousted Dilma is to cut back on social rights promised in the 1988 Constitution and deepened by Dilma and her predecessor, Luiz Inácio Lula da Silva.  Even more ominously, the continuing cascade of corruption allegations is also undermining support for the new government.

  • Surveys show that only 10 percent of Brazilians rate the Temer government as “good” or “great,” and that its legitimacy is further undermined by whistleblowers alleging that the president and nine of his ministers are corrupt.

The notorious “Car Wash” anti-corruption campaign is hurting more than Temer and his men.  Zealous prosecutors and judges are essentially criminalizing not only politicians’ behavior but, through aggressive interpretations of the law, the practice of politics itself.  The targeting of Dilma’s leftist PT is most obvious, but the deluge of charges is now buffeting all the major political parties.  Leaders of the center-right PSDB, including former President Fernando Henrique Cardoso, have been accused of corruption as well.  Except for some miniscule political parties, virtually the entire political system now faces corruption charges.

The 2018 presidential election offers the most plausible avenue for emerging from the crisis, but even that remains highly problematic.  There is a relative consensus among the political class and political analysts that a new, legitimate, and directly elected president could reverse, or at least limit, the deterioration of the political system.  With just over a year remaining for candidates to register, the likely roster is very uncertain, in part because a basic feature of constitutional democracy – that citizens are allowed to compete for office – is increasingly in jeopardy amid the current anti-corruption fever.  Early polls place Lula as the strongest among the likely candidates, and he remains in first place even when surveys include Sérgio Moro, the most important judge in the Car Wash saga, who has not declared himself to be in the running.  But it is unclear whether the courts will let Lula stand for office.  Right-wing media are hammering Lula’s alleged corrupt practices while downplaying those of Temer and his cabinet.  Potential candidates of PSDB have been denounced for receiving bribes and having overseas bank accounts, and their numbers are shrinking in the polls.  An alternative now being floated as a potential PSDB candidate is João Dória, the newly elected mayor of São Paulo who, like U.S. President Donald Trump, is a non-mainstream politician and businessman who formerly hosted the Brazilian version of the TV show The Apprentice.)

  •  This uncertainty – even if the parties resist the continuing wave of Car Wash denunciations and take back some political space from the unelected judicial branch of government – raises the question whether, over the next 18 months, Brazil’s 32 year-old democracy proves itself to be irreversible or to have been an all too brief interlude in the country’s political history. The apparent appeal of outsiders in an environment that is criminalizing politics is a worrisome sign.

April 24, 2017

* Fabio Kerche is Research Fellow at CLALS and Researcher at Casa de Rui Barbosa Foundation, Rio de Janeiro.

Brazil: Is Marina Silva the PT’s Nemesis?

By Luciano Melo

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Photo courtesy of the Marina Silva campaign website

No politician in recent years has been able to shake and polarize Brazilian politics as Marina Silva has since becoming the Brazilian Socialist Party (PSB) presidential candidate after its original nominee, Eduardo Campos, died in a plane crash last month. She has an alluring biography: born into an extremely poor family and illiterate until she was 16, she worked as a rubber tapper and rose to become one of the most prominent ecologists and defenders of the Amazon region alongside Chico Mendes, a true Brazilian hero. After earning a degree in history, Silva entered politics in the mid-1980s. Several years later she received the most votes as a state representative for Acre, served twice as a senator, and later became the Minister of Environment in Lula’s administration (a position from which she resigned due to fundamental divergences with the Workers Party and Dilma Rousseff). In 2007 she won the UN’s Champions of the World award, and three years later she ran for President under the Green Party banner, amassing 20 million votes on a platform emphasizing environmental issues and education.

Recent polls find roughly a third of Brazilian voters favoring Silva in the first round of balloting scheduled for October 5, and running even with or slightly ahead of President Rousseff in an anticipated run-off election three weeks later. The Brazilian media suggest that a large part of Silva’s appeal comes from a personal aura of transparency and rectitude – a refreshing change from others competing for Brazil’s top job. She has also demonstrated an old-fashioned ability to compromise in order to form alliances. A committed environmentalist, Silva teamed up with Eduardo Campos, a titan of agribusiness, and now, heading up the PSB ticket, her running mate is Beto Albuquerque, a moderate farmer who can bring a certain level of balance in the economic-environmental equation. On the separation of church and state, however, Marina may face a difficult balancing act. She is an evangelical Christian, winning a large chunk of religious voters in 2010, and she has defended the teaching of creationism in schools, saying that God created even Darwin. She rolled out an agenda for advancing LGBT rights recently, but criticism by Pastor Silas Malafaia, one of Brazil’s main evangelical leaders, forced her to reverse course and abandon her position 24 hours after having presented it.

Although Brazil is a religious country, laïcité – a French version of secularism – is a serious matter for the upper and middle classes, and Silva’s religiosity may cost her votes. She has exposed her core weak spot, which the other candidates will exploit in the upcoming debates and electoral campaigns. But popular concerns about corruption run much deeper in the eyes of the Brazilian people. The fact that presidents Dilma and Lula and the PT have become synonymous with misconduct in general, and mismanagement regarding Petrobrás in particular – a scandal involving 40 PT members in a multi-million real scheme – weakens their ability to counterattack amidst Silva’s continuous rise. What we will see in the elections in October is therefore a battle between the PT’s Bolsa Família – one of the most successful social programs in the history of Brazil – and a candidate who theoretically embodies honesty and honor. Whatever the outcome, it seems that PT has met its biggest challenge in 12 years.