Economic and social reconstruction of Brazil: where to begin?

With the 2016 coup, a series of crimes were committed against Brazil and its people. The coup plotters revealed themselves to be true exterminators of social rights and sovereignty, starting with the government of Michel Temer – identified by WikiLeaks in 2016 as an informant for the US embassy. The coup was engineered and carried out by the traditional, “civilized” right wing, under US coordination. The Bolsonaro government was a product of the second phase of the coup, the 2018 electoral fraud, which, with the help of the Supreme Court, the Armed Forces, Lava Jato, and everything else, imprisoned former president Lula for 580 days, removing him from the electoral race and electing the current government. 

The immense polarization existing in the country stems from an unprecedented economic crisis with no foreseeable end, and from the actions of imperialism which, in collusion with all the main powers in Brazil, carried out the 2016 coup d'état. As happens in serious crises, each action taken, instead of defusing the crisis, deepens it. In a context of acute global crisis like the current one, whose consequences are currently unpredictable, the competition for raw materials, energy sources, and world markets intensifies. A country with the natural resources and territorial extension of Brazil, with a development policy, a developed petrochemical industry, and the oil reserves it possesses, would be unbeatable as a developed nation. 

At this moment, the possibility of a national recovery is reborn, the result of an electoral process whose outcome undoubtedly represents a major defeat for the 2016 coup. This recovery, however, is quite complex, partly due to the breadth of the coalition that supported Lula. Furthermore, if it occurs, it will unfold within an extremely adverse internal and international context. It is worth listing some important aspects that should be included in an effort of this magnitude:  

1. Resuming economic growthSince the coup, between 2016 and 2021, the economy grew by a mere 0,23% per year. This means that GDP (gross domestic product) per capita decreased. In other words, the coup plotters oversaw the worst period of GDP growth in Brazilian history. The resumption of growth is a prerequisite for the generation of formal jobs, a task that is also urgently needed in the country.

2. To implement a radical program to combat hunger.of a comprehensive nature, using the process to structurally improve the country's food security, recovering structures that the current government dismantled, such as the provision of credit to small agricultural producers;

3. To implement a large-scale investment program in urban infrastructure.In the areas of communications and energy production, by opening new industrial and service companies, increasing the supply of these services, and generating jobs as quickly as possible; 

4. Structure actions to immediately recover the domestic consumer market., largely destroyed, increasing mass consumption, resuming, among other things, the policy of real increases in the minimum wage, based on GDP growth;

5. Repeal the law that established the Spending Cap. (Amendment 95), which makes growth unfeasible, and reform the current Brazilian tax system, which functions like a ball and chain, practically preventing economic progress. This action implies reviewing the Brazilian tax structure, which must become progressive, charging more taxes from those who can afford to pay more;

6. Controlling inflationespecially the food, fuel, and electricity sectors, which directly affect the poorest workers;

7. Reduce interest rates immediately. which hinders economic recovery, which involves revoking the Central Bank's "independence" policy established by the current government; 

8. Adopt a new pricing policy for petroleum derivatives., revoking the Import Parity Price (PPI) policy, which is nothing more than a mechanism to plunder the Brazilian population. It is unacceptable that an oil power like Brazil practices a policy that robs the Brazilian population and generates fabulous dividends for speculators and rentiers, many of whom barely know where Brazil is located;

9. Changing Brazil's exchange rate policy, aiming to reduce currency volatility, a fundamental measure to combat international inflation and guarantee the competitiveness of industry;

10. To launch a broad program for industry recovery and innovation. In the country, this involves state-owned companies, financing, government procurement, investments in technology, workforce training, and infrastructure. Improving the income distribution profile must be accompanied by efforts to increase the competitiveness of the Brazilian economy.

11. Develop a mineral exploration policy. The country must sustainably develop mining while protecting the environment and workers. Illegal mining must be drastically suppressed in the country, particularly in the Amazon and other strategic areas.

12. To structure an integrated public policy for water security. For the country. It is unacceptable that in the country with the largest volume of fresh water in the world, a substantial part of the population does not have regular access to drinking water and its numerous uses. There is no doubt that the difficulty a portion of the population faces in accessing affordable water is a dramatic feature of Brazilian underdevelopment;

13. Reverse the privatizations at Petrobras and Pré-Sal Petróleo SA (PPSA)Reverse all privatizations that have occurred since the 2016 coup, such as that of Eletrobras, the largest electricity generation company in Latin America. End the policies of preparation for privatization, as is happening in the Post Office, Banco do Brasil, and other state-owned companies;

14. Significantly increase investments in research and innovation. aiming to leverage the country's natural potential and generate a large number of skilled jobs. An immediate and fundamental measure is the digital transformation of the country, guaranteeing internet access at very low prices (preferably free of charge) for the entire Brazilian population;

15. Structuring a defense policy for the AmazonRegarding the destruction, which has increased significantly during the current administration, it is also necessary to develop policies for the conservation and sustainable exploitation of Brazil's other biomes, such as the Cerrado, the Atlantic Forest, the Caatinga, the Pantanal, the Pampas, and other existing biomes. It is fundamental to boost the economic and social potential of Brazilian biodiversity, combined with the development of scientific and technological knowledge.

The implementation of these measures – and so many other essential ones – depends on a shift in the balance of power, and not just on technical competence. This is especially true given an international crisis that is expected to worsen next year and the “cursed legacy” of the Bolsonaro government. Furthermore, the implementation of these measures implies resuming the role that was taken away from the Brazilian state, particularly after the coup, as a driver of national growth and development. The next government will hardly be able to overcome the immense challenges on the horizon without the active support of the majority of the population.