Tag Archives: brazil

Petrobras scandal highlights 12 years of Brazilian corruption

petrobrasPhoto credit to Geraldo Geraldo Falcão.

The most striking thing the latest sensational scandal involving Brazil’s state oil company is that president Dilma Rousseff’s poll standing has actually increased since the story broke three weeks ago.brazil

If Rousseff, as polls predict, wins the first round presidential vote on October 5, it will be largely because Brazilian voters have shrugged off the latest scandal involving Petrobras and several leading Brazilian figures, along with 12 years of scandals that have now accumulated after three consecutive terms of rule by Rousseff’s Partido dos Trabalhadores (PT, Workers Party).

Former Petrobras executive Paulo Roberto Costa, who was arrested in the spring during an investigation into money laundering, has allegedly testified that dozens of top officials, mostly within Rousseff’s own party, routinely took a 3% kickback on some of the company’s contracts dating back to 2004, when Rousseff, then the minister for energy and mines, technically oversaw Petrobras’s operations.

Among the politicians that Costa singled out was former Pernambuco governor Eduardo Campos, the former presidential candidate who died in a plane crash in August; Henrique Eduardo Alves, the president of the Câmara dos Deputados (Chamber of Deputies), the lower house of the Brazilian congress; and Edison Lobão, the minister for energy and mines, and a member of the centrist Partido do Movimento Democrático Brasileiro (PMDB, Brazilian Democratic Movement Party).

Campos’s alleged involvement may be why the allegations haven’t apparently hurt Rousseff’s ratings against Marina Silva, Campos’s former running mate and now the candidate of the Partido Socialista Brasileiro (PSB, Brazilian Socialist Party). Campos’s party spent much of the past 12 years supporting the governments of both Rousseff and her predecessor, Luiz Inácio Lula da Silva, and Marina Silva, then a member of the Workers Party, served for five years as environmental minister.

But Rousseff’s other major rival, former Minas Gerais governor Aécio Neves, the candidate of the center-right Partido da Social Democracia Brasileira (PSDB, Brazilian Social Democracy Party), has been unable to generate much success by emphasizing the scandal. Neves generally trails both Rousseff and Silva in polls ahead of Sunday’s first-round presidential vote. If, as expected, no candidate wins 50% of the vote, the top two candidates will advance to a runoff on October 26.

But as audacious as the Petrobras scandal could turn out to be, it will take its place under a penumbra of troubling corruption that dates back to Lula da Silva’s first term as president. Continue reading Petrobras scandal highlights 12 years of Brazilian corruption

Why Marina Silva must now step up for the Brazilian left

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It will take more than ten days for the followers of former Pernambuco governor Eduardo Campos to mourn the untimely death of their candidate in the presidential election that’s now less than eight weeks away.brazil

But within the next ten days, the party that Campos led, the Partido Socialista Brasileiro (PSB, Brazilian Socialist Party), coordinating with the coalition that supported his presidential candidacy, must turn to the pressing reality of selecting a new candidate, who must then hit the ground running as the general election campaign is set to begin.

There’s no way to underestimate the impact of Brazil’s October general election. With around 203 million people, Brazil is the world’s fifth-most populous country, and it’s the most populous country in Latin America, where the Brazilian president holds significant regional political clout. Despite recent troubles with growth and the value of its currency, Brazil’s $2.25 trillion economy is also the largest in Latin America and the seventh-largest economy in the world, and its status as one of the BRICs makes it one of the leading global emerging markets.

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RELATED: Eduardo Campos, Brazilian presidential candidate,
dies in plane crash

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There’s no rule that Campos’s running mate will automatically succeed him, but no one is more prepared to take on that challenge than vice presidential candidate Marina Silva (pictured above, as Campos looks on), the former environmental minister who placed third in the last presidential election in 2010.

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Silva, visibly shaken earlier today, was reportedly set to join the fatal flight that took not only Campos’s life, but the lives of six other individuals. She spoke briefly to reporters today after the crash, and she is now on her way to Santos, the port city in São Paulo state where Campos’s flight fell:

“A imagem que eu vou guardar dele é da nossa despedida de ontem, cheio de alegria, cheiio de sonhos, cheio de compromissos”, lembrou Marina. [“The image that I’ll save is our farewell yesterday, full of joy, full of dreams, full of compromises,” said Marina.”]

Tragically, Campos’s death now provides Silva the best chance of her political career to become Brazil’s president. Continue reading Why Marina Silva must now step up for the Brazilian left

Eduardo Campos, Brazilian presidential candidate, dies in plane crash

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Eduardo Campos, a popular former two-term governor of the northeastern Brazilian state of Pernambuco, and a former minister of science and technology nearly a decade ago under former president Luiz Inácio Lula da Silva, died at age 49 today in a tragic airplane crash while campaigning in the coastal state of São Paulo earlier today. Pernambucobrazil

Campos was one of seven people on board the small plane, all of whom died when the aircraft crashed into a neighborhood in the port city of Santos, reportedly due to poor weather.  

Dilma Rousseff, Brazil’s president, and Campos’s rival in the upcoming October presidential election, called for a three-day period of national mourning and suspended her own campaign activities. 

Campos (pictured above) was selected as the presidential candidate of the Partido Socialista Brasileiro (PSB, Brazilian Socialist Party). Once a supporter of Lula da Silva and his successor, Rousseff, the Brazilian Socialists, under Campos’s leadership, left Rousseff’s broad government coalition last November, and the party has been gaining support in recent years.

Polls generally showed that Campos trailed Rousseff, who is seeking reelection as the candidate of a wide coalition headed by her own Partido dos Trabalhadores (PT, Workers Party), as well as the more center-right candidate, Aécio Neves, the candidate of Serra’s center-right Partido da Social Democracia Brasileira (PSDB, Brazilian Social Democracy Party). The most recent Ibope survey, dated August 3 to August 6, gave Rousseff 38%, Neves 23% and Campos 9%, though the race was expected to narrow as more Brazilians paid increasing attention to race. 

Accordingly, Campos and his popular running mate, Marina Silva (who was not on the flight with Campos), were capable of building a serious campaign alternative to both Rousseff and Neves, with possible banks of support among urban progressives in cities like Rio de Janeiro and Brasília; rural voters from Campos’s Nordeste region, who have tilted tilting more to the left in recent years; and former lulista supporters disenchanted with the growing centrism of the Worker’s Party.

The PSB, and the wider coalition that had united to support Campos, has ten days to decide how to replace Campos, but Silva would almost certainly be the best to carry forward Campos’s legacy, and she’s by far the most well-known candidate who could so quickly replace Campos.

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RELATED: Rousseff holds weak lead as reelection challenge
looms in Brazil

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Late last year, Campos formed an alliance with former presidential candidate Marina Silva, a former environmental minister, green activist, evangelical and prominent Afro-Brazilian figure who won nearly 20% of the vote in the last presidential election in 2010.

Though Silva was running as Campos’s running mate in the current election, and she even formally joined the Brazilian Socialists to do so, many of her fans believed that Silva — and not Campos — should have led their joint ticket. Running on the strength of Campos’s legacy, her own popularity and the broad leftist platform that the PSB and its allies espouse, Silva’s candidacy could upend the race into a close three-way contest.

Campos comes from a long line of Brazilian politicians in Pernambuco, where his grandfather, Miguel Arraes, served three times as state governor, in addition to serving as mayor of Recife and as a member of the Brazilian parliament, despite a 15-year exile during Brazil’s military government of the 1960s and 1970s. Continue reading Eduardo Campos, Brazilian presidential candidate, dies in plane crash

Rousseff holds weak lead as reelection challenge looms in Brazil

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It’s still Lula’s Brazil. And it’s perhaps easier to think that Brazil’s October election is less a referendum on president Dilma Rousseff’s reelection, and more the challenge of former president Luiz Inácio Lula da Silva’s Partido dos Trabalhadores (PT, Workers Party) to win a fourth term in the presidential palace at Planalto.brazil

If Rousseff, as polls currently predict, wins a second term, the Workers Party will have governed Brazil from 2003 until at least 2019 — nearly half of the period since the fall of Brazil’s last military regime in 1985.

But polls can be also misleading, and they can easily change over the course the next 65 days until Brazilians vote.

Just ask Colombian president Juan Manuel Santos, who watched a wide double-digit lead evaporate between March and May, when he narrowly lost the first round of Colombia’s presidential election to the more conservative candidate, former finance minister Óscar Iván Zuluaga. Though Santos ultimately defeated Zuluaga in the runoff two weeks later on June 14, it was an incredible scare for the incumbent — and it could have tanked the Colombian government’s historic peace accords with the Fuerzas Armadas Revolucionarias de Colombia (FARC, the Revolutionary Armed Forces of Colombia).

The stakes of Brazil’s general election on October 5 (and runoff, if necessary, on October 26, in the presidential and gubernatorial elections) are no less vital. In addition to the presidency, Brazilian voters will elect all 513 members of the Câmara dos Deputados (Chamber of Deputies), 54 of the 81 Brazilian senators, and the governors of all 26 states and the Distrito Federal.

Brazil remains the largest economy in Latin America, with promising offshore oil exploration, a rising middle class and a dynamic political marketplace. Just two decades ago, the country was rising out of military dictatorship, marked inequality, hyperinflation and economic misery. Rio de Janeiro, the country’s second-most populous city, is set to host the Summer Olympics in 2016, the first South American city to do so.

Nevertheless, Rousseff’s lead is every bit as precarious as Santos’s was in Colombia. In the October 2010 election, Rousseff was forced into a runoff by her more conservative rival José Serra, a former senator and former São Paulo mayor and governor. Though Rousseff ultimately defeated Serra in the second round by a margin of 56.05% to 43.95%, many Brazilians were surprised that Rousseff didn’t win the first-round election outright, as her predecessor, Lula  (pictured above with Rousseff), did in 2006.

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This time around, she’ll face Aécio Neves (pictured above), the candidate of Serra’s center-right Partido da Social Democracia Brasileira (PSDB, Brazilian Social Democracy Party). Continue reading Rousseff holds weak lead as reelection challenge looms in Brazil

Will Venezuela or Argentina be the first to crumble into economic crisis?

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I write tomorrow for The National Interest about the dual economic crises in Venezuela and Argentina.argentinaVenezuela Flag Icon

The similarities between the two economic crises are uncanny — inflation, capital controls, dollar shortages, overvalued currencies, shortages, etc.

But the similarities don’t stop there.  Both countries currently fee political limitations to force policy changes to avert crisis — and that limit the political capital of the leaders of both countries, Venezuelan president Nicolás Maduro and Argentine president Cristina Fernández de Kirchner, to enact reforms:

Accordingly, normal political channels seem blocked through at least the end of 2015, despite the fact that both countries should be considering massive economic policy u-turns that will require significant amounts of political goodwill neither Maduro nor Fernández de Kirchner possess. But there’s an even greater inertia lurking beyond even the routine political impasse—a kind of political dead-hand control in both countries, on both a short-term and long-term basis.

First, both Venezuela and Argentina remain tethered to the political ideologies of chavismoand kirchnerismo, even though their proponents, Chávez and Néstor Kirchner, are now dead. Those policies may have worked over the last decade to achieve certain goals, including greater social welfare and poverty reduction in Venezuela and a rapid return to economic growth and competitive exports for Argentina. But it should be clear by now that chavismoand kirchnerismo are unable to provide answers to their respective countries’ economic woes today.

Even more broadly, I argue that beyond the shortcomings of chavismo and kirchnerismo, Venezuela faces a long-term resources curse and Argentina faces the long-term legacy of protectionism and statism of peronismo, which in each case underlie the current economic crises.  What’s more, the IMF-sponsored reforms in 1989 that led to the massive Caracazo riots in Venezuela and the IMF-approved lending tied to Argentina’s 1990s ‘convertibility’ crisis that led to the 1999-2001 peso crisis have undermined orthodox economic policymaking:

What’s more, ill-conceived attempts to rupture those dominant paradigms through orthodox ‘Washington consensus’ reform processes led to economic and political disaster. In both countries, leaders experimented with neoliberalism, facilitated by the misguided zeal of the International Monetary Fund, without enacting any corresponding safety nets or shock absorbers. The resulting crises led both countries to double down on their prevailing ideologies, thereby, ironically, making economic reform today even more difficult.

In both cases, the political, historical and economic legacies have prevented the broadly moderate, business-friendly, social democratic middle courses that much of the rest of South America has embraced to wide success, including Colombia, Peru, Chile, Brazil.

Chavismo offers no solutions for Venezuela’s violent crime

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Though Venezuela’s crumbling economy was the top issue in 2013, the country’s violent crime rate is now topping the 2014 agenda after the horrific murder of Mónica Spear, the 29-year-old television star and 2004’s Miss Venezuela, and her ex-husband were shot in an attempted robbery, after their car broke down on a highway Monday night.Venezuela Flag Icon

Violent crime in Venezuela didn’t spring up overnight, but even president Nicolás Maduro admits that 2013 saw a rise in crime.  But it’s been on the rise throughout the chavista era.  It’s a topic that I discussed earlier today on Fusion’s America with Jorge Ramos (in my first-ever live television interview — next time, I need to know where to put my eyes!).

When Hugo Chávez was first elected in 1999, he and his advisors thought that reducing crime in Venezuela was a matter of reducing poverty and inequality.  For all the faults of chavismo, you can point to a substantial reduction in poverty and inequality since 1999, though there’s obviously some debate as to whether the chavistas accomplished that goal in the most efficient, effective or sustainable manner.

Yet even as poverty decreased, violent crime increased steadily over the Chávez era.  Official figures aren’t available (and it’s doubtful they would be reliable even if they were), but Observatorio Venezolano de Violencia, an NGO that tracks violent crime, claims that the homicide rate is 79 per 100,000 — a rise in 2013 from a rate of 73 in 2012.  That makes Venezuela second only to Honduras, with a 2012 homicide rate of 91.6 per 100,000.

If there’s one point to take away about the link between poverty and violent crime, it’s that the poorest Venezuelans are more likely to be victims of crime themselves.  Crime is higher in the cities than in the countryside, and it is highest yet in the barrios of Venezuela’s capital, Caracas — you’re much likelier to be murdered in the more lawless neighborhoods in the mountains overlooking downtown Caracas than in the wealthier and safer valley below.  While every murder is a tragedy, Spear’s death is just one of tens of thousands annually.  Justice rarely comes for many of those anonymous victims and their families, given that crimes are rarely investigated and even more rarely prosecuted.

Crime is a complex sociological phenomenon, so it’s not easy to point to one variable in particular as its direct cause.  Poverty may play a role, but it’s not a matter of ‘if x, then y.’  In the case of Venezuela, the more relevant factors include a high gun ownership rate, corruption and low trust in public institutions, and a climate of political polarization.  But the biggest factor is the weakening of the rule of the law over the past 15 years.

As Juan Nagel writes in Foreign Policy, Venezuela has very few judges and prosecutors, and many of them are corrupt.  Policemen and other officials commonly take bribes.  Jails are overcrowded and controlled by the criminals locked inside them. No one has much faith in the justice system.  If you look at the 2013 Corruption Perceptions Index, Venezuela is ranked 160. Afghanistan, North Korea and Somalia are tied for dead-last at 175.  That should tell you quite a bit about Venezuela’s culture of impunity.  It’s not just the justice system, either.  It’s the kind of ‘democracy’ whereby all of the state organs, from state media to the electoral commission to the courts to Petróleos de Venezuela, S.A. (PDVSA), the state oil company, have all been politicized and are today essentially levers to boost chavismo.  It’s the kind of ad hoc economic policymaking where rules change from one day to the next, or the Venezuelan president can expropriate a business or nationalize an industry on a whim.  That, too, corrodes the rule of law.

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That’s also why there’s very little chance that Maduro or any chavista regime is likely to reverse the decade-long trend of greater violent crime.  Despite a high-profile photo op with opposition leader and Miranda state governor Henrique Capriles (pictured above), Maduro (like Chávez before him) has worked to strip municipal and state governments of much of their autonomy by consolidating power over local budgets under the national government.  That’s especially true for states and municipalities controlled by the opposition. Continue reading Chavismo offers no solutions for Venezuela’s violent crime

14 in 2014: Brazil general election

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13. Brazil general election, October 5 (presidential runoff on October 26).brazil

Though Brazilian president Dilma Rousseff holds a wide polling edge that favors reelection, her broad support is not necessarily deep, as demonstrated by the massive anti-government protests in 2013 that resulted from increased public transportation fees and eventually targeted Brazil’s stagnant economy, poor job opportunities and political corruption.  An economy that was not long ago soaring grew by just 0.9% in 2012 and is expected to grow by a hardly stellar 2.5% in 2013.  What’s more, Rousseff (pictured above) still has to get through most of 2014 — and there’s plenty of time for the opposition to upend her lead.  She’s running for what would be the fourth consecutive presidential term for the social democratic Partido dos Trabalhadores (PT, Workers Party), itself testament to the enduring popularity of former president Luiz Inácio Lula da Silva.

Her prospects became more difficult in October 2013, when former presidential candidate Marina Silva decided to join forces with the candidate of the Partido Socialista Brasileiro (PSB, Brazilian Socialist Party), Eduardo Campos, the two-term governor of Pernambuco state in northeastern Brazil.  Though it unofficially supported Lula da Silva’s reelection in 2006 and formally supported Rousseff in 2010, the PSB left Rousseff’s government in September 2013.

Though Campos is (for now) the presidential candidate, his running mate is by far a much more popular figure nationally.  One of Brazil’s most prominent politicians of African descent, Silva served as Lula da Silva’s environment minister between 2003 and 2008, where she earned a reputation as a staunch defender of Brazil’s fragile rain forests and often found herself at odds with the more business-friendly instincts of others within her own government.  Running as the candidate of Brazil’s Partido Verde (PV, Green Party), she won 19% of the vote in the first round of the October 2010 presidential election, and she was trying to found a new ‘sustainability party’ in 2013 before obstacles made that path impossible.  Campos, who likewise served in Lula da Silva’s administration as minister for science and technology between 2004 and 2008, became Pernambuco’s governor in 2007 and was reelection with 82% of the vote in 2010.

The combination makes for an amazingly balanced ticket.  Campos’s geographic base is Brazil’s northeast, while Silva has more support in the south and southeast.  Campos is popular among business interests and could credibly appeal to conservatives who chafe under the increasingly regulatory intervention of Rousseff’s administration, while Silva is popular among younger Brazilians who are disenchanted with politics as usual.  They’re both opposition candidates who nonetheless have ties to Lula da Silva, bringing some continuity with Brazilian policy over the past decade.  Together they could build a credible anti-Rousseff coalition from among voters to her left and to her right, especially in a runoff.

Brazil’s center-right Partido da Social Democracia Brasileira (PSDB, Brazilian Social Democracy Party) will likely be represented by Aécio Neves, who served as governor of Minas Gerais, the second-most populous state in Brazil and home to Belo Horizonte, from 2003 to 2010.  As governor, Neves cut the state’s budget and promoted investment, transforming the state’s fiscal outlook in a way that attracted national and international regard.  In 2010, he was elected to the Senado Federal (Federal Senate), the upper house of Brazil’s Congresso Nacional (National Congress), and in 2013, he became the leader of the PSDB, making him the favorite to become its 2014 presidential contender as well.

With so much time until the election, the presumed candidates aren’t fully settled — and parties don’t have to make decisions until 2014.  Silva and Campos could change places on the ticket, for example.  Conceivably, Rousseff could step aside for former president Lula da Silva, though he announced early in 2013 that he wasn’t running and that he was supporting Rousseff for reelection.  If Neves falters on the campaign trail, José Serra, the former São Paulo mayor, São Paulo state governor, planning minister and health minister could replace him on the ticket.  But at age 71, Serra is seen as yesterday’s man — he lost the 2002 presidential race to Lula da Silva by a wide margin and lost a second bid in the October 2010 race to Rousseff by a margin of around 56% to 44%.  What’s more, he lost a comeback bid to return as mayor of São Paulo in October 2012 by a similarly wide margin.

Brazil will also elect one-third of its Senate (27 out of 81 seats) and all 513 members of the Câmara dos Deputados (Chamber of Deputies), the lower house of the National Congress.  Despite over a dozen major parties with at least 10 deputies, the parties align into a ‘lulista’ bloc and a center-right bloc, which gives Rousseff a majority in both houses, including 50 senators and 325 deputies.  Other parties who support Rousseff’s government, however, are still undecided as between Rousseff and Campos, including the second-largest party in the National Congress, the big tent Partido do Movimento Democrático Brasileiro (PMDB, Brazilian Democratic Movement Party), and the center-right Partido Progressista (PP, Progressive Party).

Next: US Midterms

Pope-acabana: How the Catholic Church and the Latin American middle class could forge a symbiotic electoral majority

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Although Pope Francis made global headlines last month by appearing to accept that some priests might have same-sex attractions, it’s easy to forget that the comments, which came at a press conference on his flight back to the Vatican, capped the new pope’s first trip abroad to Brazil, which neighbors former cardinal Jorge Mario Bergoglio’s native Argentina.vatican flagbrazil

Francis’s comments touched on a wide range of issues, including the role of women in the Catholic Church, but his remarks risk overshadowing that the pontiff’s visit to Brazil, where Francis delivered a mass to three million Brazilians on Copacabana beach in Rio de Janeiro, had already been viewed as a massive success, and showcased that Francis is determined to lead a global Church.

What does all of this have to do with Latin American politics?

First, after the perceived hardline doctrinal conservatism of Benedict XVI and John Paul II, the new pope is certainly more media-savvy about communicating that the Catholic Church will be more open than it’s been perceived in previous years.  Francis may not necessarily be any more doctrinally liberal about social issues like homosexuality, abortion or birth control, but his tone, warm and unjudging, is much different.  The fine print may not even matter if Francis downplays more contentious doctrine in favor of issues of more relevance to economic policymaking.  Even though one of Benedict XVI’s three encyclicals covered the topic of the virtue of social justice and the dangers of global development (Caritas in Veritate — ‘Charity in Truth’), published in the wake of the 2008 global financial crisis, it is instead Francis who has been credited as the pope willing to take the Church’s teachings into the most dangerous corners of the world and to the poorest in society.  Francis has spoken out against poverty repeatedly since his election as pope earlier this year and while in Brazil, he toured Varginha, one of Rio’s most notoriously poor and violent favelas.

Secondly, the Catholic Church, which has long been a global church (one out of two Catholics worldwide now lives in the Americas, and three-fourths of the world’s Catholics live outside Europe), now has a truly global leader.   Continue reading Pope-acabana: How the Catholic Church and the Latin American middle class could forge a symbiotic electoral majority

Who is Roberto Azevêdo? (And does he matter?)

The only dispute between México and Brazil since the emergence of the World Trade Organization is a minor matter — Brazil opened a case in 2000 when it accused México of enacting anti-dumping measures on electronic transformers that were tougher than allowed under the WTO agreement.  Brazil, as it turned out, sought consultations with México, and the case never proceeded to a full WTO panel.Mexico Flag IconWTO flagbrazil

But this week’s seen the conclusion of a contest between the two Latin American countries with much more wide-ranging consequences than policy on electronic transformers — the final round to select a new director-general, and it’s a contest that Roberto Azevêdo, a Brazilian diplomat and trade representative, has won the final nomination for the job, and will likely be officially confirmed as the next director-general on May 14.

Azevêdo defeated former Mexican trade minister Herminio Blanco, in a contest between two men that represent the two largest economies in Latin America.  As Brazil’s man in Geneva for the past five years, Azevêdo won the post in large part due to his status as a knowledgeable WTO insider.  Blanco, who helped draft the landmark North American Free Trade Agreement in the 1990s among the United States, Canada and México, had more high-level experience in government (Azevêdo has never been a cabinet-level minister in Brazil’s government), but has spent his time out of government in the private sector, not in Geneva.

To a degree, the showdown marks the growing, if friendly, rivalry between México and Brazil — the Mexican economy, with a GDP of $1.76 trillion, and an estimated 2012 growth rate of 3.8%, is expected to overtake Brazil’s economy in the next decade.  With a GDP of $2.36 trillion, Brazil remains the largest economy in Latin America, and it’s forecast to improve on a paltry 2012 GDP growth rate of 1.7%.

Azevêdo’s win demonstrates that Brazil, one of the four initially identified ‘BRIC’ emerging economies, remains a widely respected player in global economic policymaking, despite its economy’s recent stumbles and a somewhat ambivalent attitude toward global trade from its center-left presidents Luiz Inácio Lula da Silva and Dilma Rousseff, though Brazil was a founding member of the South American free trade bloc, Mercosur (Mercado Común del Sur) in 1991.  Blanco’s loss is a rare diplomatic setback to Mexican president Enrique Peña Nieto, who took office less than six months ago and has already enacted a whirlwind of domestic reforms that have made his country once again a darling of international investors.

Azevêdo will succeed Pascal Lamy, the Frenchman who’s been the WTO’s director-general since 2005, and he’ll take over the organization at a time when its role in global trade seems to be on the decline.  The Doha round of negotiations, which began way back in November 2001, now seem nearly hopeless, with the WTO members split between the developed world and the developing world.

Indeed, the developed/developing struggle came to define the final round of the race to become the next director-general, with the United States, the European Union, Japan and South Korea allegedly backing México’s Blanco, and China and the rest of the developing world backing Brazil’s Azevêdo.  Despite the divide, U.S. and E.U. officials were never intensely opposed to Azevêdo, who will become the first Latin American director-general of the WTO (or its predecessor, the General Agreement on Tariffs and Trade) and the first director-general from the ‘global south’ since Thailand’s Supachai Panitchpakdi held the job from 2002 to 2005.

But the last major Doha negotiations broke down in July 2008, and they haven’t resumed in any significant way since the global financial crisis that exploded later that year.  While the WTO has seen its membership grow by 17 since the Doha round began (including China in 2001, Saudi Arabia in 2005, Vietnam in 2007 and Russia in 2012), many countries have moved toward bilateral and regional trade accords.  Some WTO proponents fear that such smaller trade agreements undermine the role of the global trade regime, though proponents argue that regional agreements work toward the same underlying goals of greater free trade among the world’s nations.

In particular, the United States is kicking off talks for two of the most ambitious regional trade agreements in U.S. trade history that would far outweigh the impact NAFTA made in the 1990s — the Trans-Pacific Partnership among various Asian, North American and South American nations and the Transatlantic Trade and Investment Partnership between the European Union and the United States. Continue reading Who is Roberto Azevêdo? (And does he matter?)

Chávez’s radical antics provide space for progressive Latin American left

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In a piece for The National Interest today, I stepped back from the immediate issues surrounding Sunday’s presidential election and the fallout, increasingly tense, with challenger Henrique Capriles canceling a march today against potential fraud in the election and with president-elect Nicolás Maduro very much using the threat of state violence to shut down the opposition’s mobilization for a full recount.brazilVenezuela Flag Icon

It’s a piece I’d been hoping to write for some time, and I wish I’d published it sooner, but it’s still relevant given how much the late Hugo Chávez (pictured above in happier times with the late Argentine president Néstor Kirchner and former Brazilian president Luiz Inácio Lula da Silva) looms not only over Venezuela, but over all of Latin America.  I’ve written that his radical, anti-American antics have allowed other more moderate leftists in Latin America room to develop a truly progressive, social democratic movement for the first time ever, really.  Chávez, at home, transformed Venezuelan politics from a right-left contest to a battle between a more business-friendly, democratic left, as personified by Capriles, and a more socialist, militant leftism, as personified by Maduro.

I argue that Lula da Silva, in particular, has been incredibly canny in triangulating himself between the U.S. center of gravity and chavismo, exquisitely playing one against the other:

But the tidy duality of a moderate lulista left and a radical chavista left obscures the complex, often symbiotic relationship between the two forces. In particular, Lula da Silva was always incredibly cunning in using Chávez as a foil in hemispheric politics. Lula da Silva made three failed presidential bids prior to his election in 2002, fully four years after Chávez took power. By the time Lula da Silva took office, Chávez had arguably done more than anyone else in Latin America to make Lula da Silva seem moderate in contrast.

It’s certain that Lula’s vast social reforms would seem more radical—and may have met more domestic and international disapproval—if not for Chávez’s ad hoc expropriations and anticapitalist fulminations from Caracas. By giving Chávez his full support, he guaranteed especially kind treatment of Brazilian private interests in Venezuela, and his fervent support for Maduro in a taped endorsement earlier this month was provided in no small part to ensure kindness from a Maduro administration. Brazilian officials have already started casting aspersions on the Capriles camp, which has called for a full recount of the vote. But Lula da Silva’s support for Chávez also gently reminded U.S. diplomats that they had an interest in boosting the Brazilian model as a counterweight to the Venezuelan model throughout the region.

 

Lula’s Maduro endorsement highlights strategic Brazilian ties to Venezuela

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Though the full-throated nature of the endorsement of former Brazilian president Luiz Inácio Lula da Silva of acting Venezuelan president Nicolás Maduro is perhaps somewhat of an eyebrow-raiser, it should not be unexpected, and it highlights the extent to which much of official Latin America has a vested interest in the continuation of chavismo — for now at least. brazilVenezuela Flag Icon

Lula is perhaps second to just Fidel Castro in terms of living politicians who are nearly universally popular throughout Latin America, so his hearty endorsement gives Maduro some international credibility, extolling both Chávez and Maduro for their passion for the rights of the poor, and it may well sway some voters who are on the fence between Maduro and challenger Henrique Capriles:

Lula says in a video released by VTV, astate-controlled television station, that he got to know Maduro in his years as foreign minister, and that Maduro will carry on Chávez’s grand hope of transforming Venezuela into a more just country where oil wealth is shared with those suffering most in society.  While Lula (pictured at top, left, with Chávez) notes that the decision is for Venezuelans alone, and he doesn’t want to interfere, but he could not help but share his testimony about Maduro, declaring, ‘Maduro Presidente; es la Venezuela que Chávez soñó‘ (Maduro for President! It’s the Venezuela of which Chávez dreamed!

But as Reuters noted last month, there may be more to Lula’s endorsement than just ideological solidarity:

“In the near term, a Maduro win would be best,” said Jose Augusto de Castro, head of Brazil’s Foreign Trade Association….

Key infrastructure projects launched during the 14 years of Chavez’s government, from the Caracas metro expansion to bridges across the Orinoco river that divides Venezuela, are run by Brazilian firms like Odebrecht.

Lula refused throughout his tenure as president from 2003 to 2010 to criticize Chávez openly, to the consternation of U.S. foreign policymakers.  But Chávez’s more strident socialist path may have made Lula’s more moderate leftism seem even tamer in contrast, and Lula’s example in Brazil stands as a pointed counter-example to chavismo in many ways — Lula managed to reduce poverty in Brazil much as Chávez did in Venezuela, but he did so while also cultivating ties to the business elite and development from the United States, the European Union and the People’s Republic of China alike.

Lula’s friendship with Chávez meant that Brazilian firms were shielded from many of the tumultuous aspects of doing business in Venezuela, most of all Chávez’s snap decisions to expropriate and nationalize industries.  Furthermore, Brazil has benefitted from Venezuela’s oil wealth, and trade between the two countries quintupled over the course of Lula’s presidency, though the ties were strategical as well:

[T]he main goals of Lula and Chávez were geopolitical. Samuel Pinheiro Guimarães, the most influential diplomat in the Brazilian chancellery, explained that Brazil’s strategy sought to prevent the “removal” of Chávez through a coup, to block the reincorporation of Venezuela into the North American economy, to extend Mercosur with the inclusion of Bolivia and Ecuador and to hinder the US project to consolidate the Pacific Alliance, which includes Chile, Colombia, Mexico and Peru.

If you didn’t need a reminder, Latin American leaders and politicians from the moderate left, populist left and the right all attended Chávez’s funeral in March — showcasing just how entrenched chavismo has become in the region, if for no other reason than as a channel for oil subsidies and alternative finance.

Indeed, with the suspension of Paraguay from Mercosur (Mercado Común del Sur) following the impeachment and removal of Fernando Lugo in June 2012, Brazil and other countries wasted little time in making Venezuela a full member — Paraguay’s senate had long blocked Venezuela’s membership.

Campaigning kicked off today officially for the April 14 presidential race.  I attempted yesterday to argue a rationale for supporting each candidate — the policy case for Maduro is here, and the policy case for his challenger, Capriles, is here.

What can the internal gun politics of other countries teach the United States?

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Certainly, today’s sad news from Newtown, Connecticut — the site of a gun massacre that left, so far, 18 children and nine adults dead, will once again ignite a debate over the proper role of gun laws in the United States. USflag

The reality is that, despite the efforts of officials such as New York mayor Michael Bloomberg (pictured above) in favor of stricter gun control, after the horrific headlines fade, Newtown will join a growing pile of similar incidents — Columbine in 1999, Virginia Tech in 2007, Aurora just earlier this summer — each one more numbing than the last, with no appreciable change to U.S. federal policy on firearm control.  The last major effort was the federal assault weapons ban prohibiting certain kinds of semi-automatic weapons, in effect from 1994 to 2004.  The ban hasn’t been subsequently renewed, not even in 2009 and 2010 when the relatively pro-gun control Democratic Party controlled Congress and the White House.

But the fact remains that the United States has one of the world’s highest firearm-related death rates in the world at 9 persons per 100,000 annually, which puts it in company with South Africa, the Philippines and Mexico.  The United Kingdom’s rate, by contrast, is 0.22.  That, Americans should agree, is a problem, although Americans remain split over gun control laws — even after the Aurora shooting, 50% of Americans said in an August CNN poll that they oppose significantly more restrictions on gun ownership.

The Second Amendment, part of the Bill of Rights ratified in 1791, is a one-sentence guarantee to the right to bear arms:

A well regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed.

The amendment is informed by the precedent of the English Bill of Rights of 1689 that protected the right of Protestants against disarmament by the English monarch (at the time, the Catholic James II).

Since that time, the American devotion to the right to bear arms has become a peculiarly American sensibility, especially since the 1980s saw a rise in pro-gun activism among the American right and especially within the Republican Party — the National Rifle Association is now one of the most powerful interest groups in U.S. politics (as recently as 1969, the NRA was so relatively weak that Republican U.S president Richard Nixon disavowed an ‘honorary life membership’).

In recent years, the U.S. Supreme Court has strengthened Second Amendment rights.  In 2008, the Supreme Court in its landmark District of Columbia v. Heller that the Second Amendment extends to the right to possess firearms for self-defense within the home, and in 2010, the Supreme Court ruled in McDonald v. Chicago that the Second Amendment is ‘incorporated’ by the 14th Amendment to extend not only federally but within the individual states.

Despite the efforts of officials like Bloomberg, who have argued that, at minimum, the federal government should tighten up and enforce loopholes in existing gun laws, just today, Michigan governor Rick Snyder was set to sign into law a bill that would allow concealed weapons in gun-free zones.

Indeed, most pro-gun advocates argue that concealed-carry laws — allowing anyone to carry concealed weapons — provide disincentives to potential gunmen.  Such state-level concealed-carry laws have become increasingly popular since the 1990s, and the vast majority of U.S. states now feature some form of concealed-carry permit law.  Pro-gun advocates also argue that free-gun zone laws that designate schools, hospitals and other areas as firearm-free have inadvertently made those areas ever more tantalizing targets for would-be assailants.

But certainly there are lessons from gun policy in countries outside the United States that can inform a reasoned statistics-based policy debate in the United States, right? Maybe not.

What’s most astonishing is that throughout the world, even among the closest U.S. allies, gun control remains relatively uncontroversial.  That makes the example of other countries fairly inapposite.

The general trend seems to be that in countries with relatively stricter gun laws, gun-related homicides are relatively lower, but pro-gun advocates note that there are essentially too many other cultural and political factors about the United States and crime in the United States to draw a straightforward line between the two.  As Ezra Klein noted earlier this year, the United States –and the U.S. south where pro-gun sentiment runs strong — is generally a more violent place than much of the rest of the developed world, generally (with or without guns).

The other trend worth noting is that many countries have adopted stricter gun laws in the wake of a horrific shooting spree or gun violence incident, but despite a worrying proliferation of such mass shootings in the United States, such incidents have failed to dent a political consensus against major gun control reforms.

In the United Kingdom, the closest thing to a ‘pro-gun’ position is the silly House of Lords showdown with Tony Blair’s government in the early 2000s over the 2004 ban on hunting with dogs — the hopeless cause of a fox-hunting aristocracy that was more about farce than force.  Otherwise, the United Kingdom has some of the world’s most rigorous anti-gun laws — if you want to own a firearm in the United Kingdom, you need to be prepared for a lengthy and bureaucratic process during which police determine whether you’re fit to own a weapon, and once you’ve obtained a permit, it can be easily revoked by the police.  Continue reading What can the internal gun politics of other countries teach the United States?

Haddad (and Lula) triumph over Serra in São Paulo mayoral race

Fernando Haddad, a former education minister, defeated José Serra, a longtime powerhouse of the Brazilian center-right, in today’s mayoral runoff in Brazil’s most populous city, São Paulo amid several runoffs from municipal elections in Brazil on Oct. 14.  

The result will be a setback to Serra’s national aspirations, but will embolden Haddad’s party, the governing Partido dos Trabalhadores (PT, Workers’ Party), the current president Dilma Rousseff, and her predecessor, Luiz Inácio Lula da Silva.  In particular, Haddad is seen very much as Lula’s protégé, and Lula campaigned vigorously on his behalf.  Haddad won the runoff with just about 56% of the vote to just 44% for Serra.  Haddad had served as education minister for Lula first, then Rousseff, since 2005, stepping down earlier this year to run for mayor.  As education minister, Haddad instituted national standardized testing in Brazil.

His victory will give Brazil’s governing party control over Brazil’s primary city for the first time in eight years.

Serra has been a fixture in Brazilian politics since the 1980s, when he was first elected as a federal deputy to the Brazilian congress.  He served as a minister of planning, then as a minister of health, in the administration of Fernando Henrique Cardoso (1994 to 2002), which preceded Lula’s presidency.  After losing the presidential race to Lula in 2002, Serra became the mayor of São Paulo from 2005 to 2006, leaving in the middle of his term to run for the position of governor of São Paulo state, which he won and held from 2007 to 2010.  His 2010 presidential run was much more competitive, but he still lost to Rousseff in a runoff by a 56% to 44% margin.

In many ways, the mayoral race was seen as the continuation of the long-running fight between the Lula and Serra that began with the 2002 presidential election — both Lula and Serra are thought to be considering a run in the 2014 presidential election as well.  Lula, who was limited from seeking three consecutive terms, stepped aside on behalf of his successor, Rousseff, and it is uncertain if she will seek reelection in her own right. Continue reading Haddad (and Lula) triumph over Serra in São Paulo mayoral race

Four key elections underway today in Ukraine, Italy, Lithuania and Brazil

It’s a quadruple-threat Sunday for world elections!

Ukraine: parliamentary elections. In Ukraine, voters will go to the polls for legislative elections to select 450 members of the unicameral parliament, the Verkhovna Rada.  The elections will be a key test for Ukraine’s fledgling democratic institutions eight years after the ‘Orange Revolution.’  Pro-Russian president Viktor Yanukovych, whose support is based in the eastern half of the country, is hoping to win an outright majority in a campaign that has been far from free and fair.  Two center-right groups are vying for the opposition vote — a bloc led by former prime minister and presidential candidate Yulia Tymoshenko, who has been imprisoned on politically-motivated charges and a new anti-corruption group led by heavyweight champion Vitaliy Klychko.  Unlike in the previous 2007 parliamentary elections (which were fully by proportional representation), today’s elections will be determined one-half by proportional representation and one-half through direct single-member districts.  That means the anti-Yanukovych vote could splinter, allowing the government to consolidate its control over Ukraine.  The election result will likely determine whether the former Soviet republic of 45 million people will continue its turn toward Europe as a potential European Union member.

Lithuania: parliamentary runoff. Nearby, in another former Soviet republic of just over three million people — Lithuania, voters return to the polls for a runoff after a vote two weeks ago that saw the triumph of two leftist parties: the populist Darbo Partija (DP, Labour Party), led by Russian-born Viktor Uspaskich, won 19.96% and the more center-left Lietuvos socialdemokratų partija (LSDP, Social Democratic Party of Lithuania) won 18.45%.  The governing Tėvynės sąjunga – Lietuvos krikščionys demokratai (TS-LKD, Homeland Union — Lithuanian Christian Democrats)  of prime minister Andrius Kubilius won just 14.93%, a defeat for Kubilius after a difficult campaign that reflected the realities of four years of grinding austerity and difficult economic conditions.  Half (70) of the seats in Lithuania’s unicameral parliament, the Seimas, were determined by the October 14 vote, while 71 more seats are determined in single-member districts, and many of those will be determined in today’s runoff vote. It’s virtually certain that the Social Democrats and Labour will form the next government, likely under the leader of the Social Democrats and former finance minister, Algirdas Butkevičius rather than the corruption-plagued Uspaskich, although either the Social Democrats or Labour may ultimately wind up with more seats after today’s vote.

São Paulo: mayoral runoff. In Brazil’s largest city, São Paulo, home to nearly 11 million people, voters will choose a mayor in a contest that will have implications for Brazil’s national politics.  Voters will choose between the top two candidates from the Oct. 14 vote: Fernando Haddad, the candidate of the Partido dos Trabalhadores (PT, Workers’ Party) of Brazilian president Dilma Rousseff and former president Luiz Inácio Lula da Silva, and a former education minister in Lula’s administration; and José Serra, the candidate of the center-right Partido da Social Democracia Brasileira (PSDB, the Brazilian Social Democracy Party), who lost the Brazilian presidency to Lula in 2002 and, more narrowly, in 2010 to Rousseff.  Serra, himself a former mayor of São Paulo from 2004 to 2006, when he won election as the governor of São Paulo state, despite a pledge to serve his entire term as mayor,  Serra led the vote two weeks ago with 30.75% to 28.99% for Haddad.  Serra and Haddad edged out Celso Russomanno, a famous television consumer advocate in the 1990s, with support from the evangelist Universal Church of the Kingdom of God, who had been the frontrunner throughout the campaign, who finished with just 21.6o%.  Polls show Haddad with a double-digit lead over Serra, however, which could effectively end Serra’s hopes for a third run at the presidency.

Sicily: regional parliamentary elections.  Finally, in the southern Italian region of Sicily, voters will select the 90 members of Sicily’s unicameral regional parliament.  Three parties are vying for the largest share of the vote, and 80 seats are awarded by proportional representation: a center-right coalition led by European parliament member Nello Musumeci and backed by former prime minister Silvio Berlusconi (who was convicted Friday for tax fraud) and his Popolo della Libertà (PdL, People of Freedom); a center-left coalition led by Rosario Crocetta (pictured above, top), the openly gay mafia-fighting former mayor of Gela (Sicily’s sixth-largest city); and the new anti-austerity protest party, the Movimento 5 Stelle (M5S, Five Star Movement) of blogger and comedian Beppe Grillo, who kicked off his party’s Sicily campaign by swimming across the Strait of Messina.  Radical leftists and a conservative Sicilianist/autonomist coalition are also expected to win significant support. The election is a significant test in advance of national elections expected to come in April 2013 following the technocratic government of prime minister Mario Monti, who has pledged not to run in his own right.

Paes wins reelection in Rio in advance of 2016 Olympics; Serra leads mayoral race in São Paulo

Boris Johnson, move over. Eduardo Paes (pictured above, top) was reelected as mayor today of Rio de Janeiro, Brazil’s second-most populous — but most evocative — city during municipal elections that saw José Serra (pictured above, bottom), a perennial figure of the Brazilian right, lead the race for mayor of São Paulo.

Paes easily won reelection with 64.60% of the vote, representing a wide coalition that includes not only his own party, the wide Partido do Movimento Democrático Brasileiro (PMDB, the Brazilian Democratic Movement Party), but also the leftist Partido dos Trabalhadores (PT, Workers’ Party) of Brazilian president Dilma Rousseff and former president Luiz Inácio Lula da Silva.  He faced an energetic opponent in Marcelo Freixo of the Partido Socialismo e Liberdade (PSOL, the Socialism and Freedom Party), a state assemblyman in the state of Rio de Janeiro and a human rights activist, who received around 28.15% of the vote after waging a savvy campaign through aggressive use of social networks like Twitter and won the support of much of Brazil’s cultural elite — and his increasing support in the days leading up to today’s election, coupled with his criticism of the Olympic development as an unequal move benefitting corporations more than society, had given the International Olympic Committee some cause for alarm.  Freixo had challenged the evictions and clearings that have marked the push to prepare Rio for not just 2016, but also the 2014 World Cup.

Paes, who has served as Rio’s mayor since 2008, however, was able to brag that he brought the 2016 Olympic Summer Games to the city — and can take credit for the widely acknowledged improvements in the city, especially as regards the ongoing ‘pacification’ of the once-notorious favela slums that dot the hillsides above the richer parts of Rio below — the ‘pacification’ campaign involves both the implementation of police control over a favela and wresting control, often by force, of each slum from drug gangs and criminal forces, but also the institution of better schools and other municipal services designed to keep the favelas firmly within the city’s control.  In addition, Paes is working to build four new superhighways in advance of 2016, has improved bus transit and has spearheaded an overhaul of the Porto Maravilha that served as the city’s main port during the Portuguese colonial era.

Despite the surprisingly widespread availability of Twitter in favelas, Paes’s coalition of 16 parties gave him access to 16 minutes of free daily public broadcast time during the campaign, giving him an advantage over Freixo’s 1 minute and 22 seconds, in addition to the other perks of incumbency and the benefits of having been associated with nabbing South America’s first Olympic Games.

The win will be a mild victory for the Workers’ Party as well — it is expected that Rousseff will likely run for reelection, although Lula will also be eligible to run (presidents are limited to just two consecutive terms, but are not limited as to two terms for life).  The Workers’ Party has been subdued by the constant drip of trial proceedings over a political corruption scandal from the early 2000s.

The Workers’ Party will be even more thrilled with the mayoral election in Brazil’s most populous city, São Paulo, where its candidate Fernando Haddad, a former federal minister of education, won 28.99% of the vote, narrowly trailing Serra, the candidate of the centrist Partido da Social Democracia Brasileira (PSDB, the Brazilian Social Democracy Party), who won 30.75%.  Celso Russomanno, a famous television consumer advocate in the 1990s and candidate of the small Partido Republicano Brasileiro (PRB, Brazilian Republican Party), had led polls for most of the race and was considered the frontrunner, but finished a disappointing third with just 21.60%.

Russomanno, with backing from the evangelist Universal Church of the Kingdom of God, had shown success throughout the campaign in winning support in the traditional strongholds of the Workers’ Party.  Haddad, a former minister of education in Lula’s administration, was seen as a weak candidate imposed as the party’s standard-bearer by Lula himself.

 Haddad and Serra will now advance to a runoff vote to determine who will become São Paulo’s mayor, and a win for Haddad would be a huge triumph for the Workers’ Party.

Serra, who lost the Brazilian presidential election by a wide margin in 2002 to Lula and by a narrower margin in 2010 to Rousseff, served as minister of planning and minister of health during the administration of former president Fernando Henrique Cardoso, who preceded Lula as president from 1994 to 2002.  More recently, Serra was elected as mayor of São Paulo for the first time in 2004, although he left the post early to contest the governorship of São Paulo state in 2006, which he subsequently won.  Serra had broken a pledge he made in the 2004 campaign to remain mayor through his whole term, however.

Continue reading Paes wins reelection in Rio in advance of 2016 Olympics; Serra leads mayoral race in São Paulo