In the Corridors of Power
Lula's approach to government encompasses good management, transparency and accountability - but within the context of state control.
Contrary to general expectations in late 2002 and early
2003, the year-old administration of President Luiz
Inácio Lula da Silva and his team are a short-term
success. The hope in the Planalto, the presidential palace, is
that the foundation he constructed in 2003 with prudent fiscal
policies, low inflation and macroeconomic stability will create
the conditions for longer-term economic growth and
Lula's style of governance is a curious mix of the past and
a relentless commitment to plan for the future. In contrast to
all of its predecessors since the return of civilian rule in
1985, this Planalto understands power. It believes the
bureaucratic state, which it controls, has a positive role to
play in Brazil's development. While accepting some of the
tenets of the Washington Consensus regarding macroeconomic
targets, it implicitly rejects others - such as
privatization. More than any of the successor
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