Armínio agrees to return to government. But is it worth it?
A member of presidential candidate Aécio Neves' economic team, the former president of the Central Bank says that if called upon, he will return to Brasília; "I want to help in any way I can," Armínio Fraga told Exame magazine; owner of Gávea Investimentos and always seen as a 'darling' of the financial market, he could become Minister of Finance if Aécio wins, or even return to the Central Bank; currently, he is making a tour among bankers and businessmen to reinforce the former governor of Minas Gerais and present his ideas; with Armínio playing a central role in the campaign, the debate about the past and present of the economy will intensify.
247 - If your intention, once you become a presidential candidate, is to send a friendly message to the so-called market, one piece of advice without reservation is: call Armínio Fraga.
The former president of the Central Bank (1999-2003) during Fernando Henrique's government is the greatest symbol of a brilliant generation of economists who became wealthy in the financial sector and applied concepts of so-called neoliberal orthodoxy to government.
Bringing Armínio to his side is what presidential candidate Aécio Neves did, delegating to him not only a central role in formulating his government program, but also credentials to speak on his behalf with bankers, investors, and businesspeople. Currently, the former president of the Central Bank is holding a round of talks to present the ideas that are being developed with the PSDB candidate.
In an interview with Exame magazine, Armínio stated he was ready to return to the government if Aécio wins. "I want to help in any way I can," he assured. Thus, the position of Finance Minister in a potential PSDB (Brazilian Social Democracy Party) government starting in 2015 now has a clear favorite to fill it.
The journey of Aécio's trusted economist through the circles of economic power comes at an opportune time for him. Most financial market players state in polls and surveys that they genuinely do not want President Dilma Rousseff re-elected. Armínio's growing influence within the PSDB campaign only serves to capitalize on Dilma's weakness and solidify the former governor of Minas Gerais's name as a representative of the sector.
GEISELIANO MODEL - With his clarity and technical expertise, the potential future minister has been increasingly critical of economic policy:
"The government continues, until proven otherwise, with a very closed, outdated general stance. Repeating many things we've already experienced, especially in the 70s, during the Geisel government. A model focused on state-owned companies, and with a very closed economy," he told journalist Fernando Datas of O Estado de S. Paulo. "I don't have faith in this government as a formula for our long-term success. On the contrary, I think that, if it's not changed, it will give us headaches."
For Armínio's opponents, however, he is the greatest embodiment of a past in which the country had sky-high interest rates, four times higher than today, and proved fragile in the face of the pressure of the international financial crisis.
With Arminio Fraga so prominent in the election debate, the discussion about whether reclaiming the past, in one way or another, is truly the best path to projecting Brazilian development will become increasingly heated.