The Growth Challenge
Brazil has wallowed in an economic malaise for nearly 20 years. Lula's economic team must deliver a high-voltage
shock to turn things around.
Lula's economic team has stabilized
the economy and begun passing the reform legislation needed to
accelerate growth. Brazil is not out of the woods yet - indeed
it is still stuck in the middle of the forest - but at least
the government is heading in the right direction.
Brazil's economy has slogged along for two decades at
agonizingly slow growth rates. Jobs are scarce and real incomes
are falling. The challenge before Finance Minister
Antônio Palocci and his team of pro-market technocrats is
to deliver on their promise of rapid, sustainable growth before
dissatisfaction with their policies forces President Luis
Inácio Lula da Silva to decree a change of direction,
and abandon liberal economic policies in favor of a dirigiste
agenda more in tune with his party's leftist orientation.
Although the economy is not in recession, Dieese, a
union-backed research organization, says unemployment in
São Paulo was 20.6% in May. The...
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