The London Financial Times did not disguise their pleasure at hearing the words of Brazil’s new Finance Minister Fernando Haddad, who told them on the sidelines of the Davos conference last week that the incoming Lula government in Brazil will be “tempering the pace” of economic reforms that he had promised during the elections, and which the City of London and Wall Street fear. These include Lula’s commitment to reverse the privatization selloff of Brazil’s crucial state-run companies—such as Petrobras with its huge pre-salt oil deposits—and to launch infrastructure and other development projects geared to reducing the country’s terrible poverty. Lula had also campaigned on the promise that Brazil would return to intense involvement with the BRICS and their emphasis on joint economic development projects.
Haddad was open about the fact that the change was a result of the Jan. 8 insurrectionary attacks on the Presidential Palace and other government buildings in Brasilia, by mobs associated with former President Jair Bolsonaro.
Haddad said the riots showed that “the opposition to Lula will be made of extremists,” and that will have an impact on the “political calculations” made by Lula. “What might happen is that the speed of the implementation of our program will need to be considered very carefully, especially at the beginning, so as to avoid being the target of fake news and rioting,” Haddad told the FT.
Haddad also announced that Brazil has asked its partners in the BRICS to delay its rotating presidency in the group from 2024 to 2025, arguing that Brazil is also scheduled to head the G20 and Mercosur in 2024, and that it would be too much of a burden. Observers question if that is the real reason for the request, especially since other countries, such as India, have used similar multiple presidencies to very good, combined effect.
Lula will be engaging in intense diplomacy following his current visit to Argentina. On Jan. 30 he will receive German Chancellor Olaf Scholz. On Feb. 10 he will travel to Washington to meet with President Biden. Haddad stated that the priorities of the Lula government will be: “In the first place, work for peace. The world wants to bring about peace, but you have to work to achieve that.” Secondly, “we have to take advantage of Brazil’s experience and that of other countries to put an end to hunger.” His third priority, Haddad stated, is the defense of the environment and promotion of a green economy.
