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SOLUTIONS FOR CRISIS THAT THREATEN FUTURE OF BRAZIL
Fernando Alcoforado *
1) The crises that threaten future of Brazil
Brazil is facing at the moment with 4 types of crisis: 1) gigantic economic crisis that
threatens the survival of families with the escalating of inflation and massive
unemployment, companies with advancing of recession toward depression and of the
country with economic stagnation and rising public debt; 2) deep political crisis that
threatens to throw the country into chaos of the total ungovernability and violence and
generate political and institutional regression to maintain order; 3) management crisis
elevated to extreme thanks to the existence of incompetent rulers who contribute to the
inefficiency and ineffectiveness of the actions of the Brazilian government and
demonstrate incapacity to propose solutions to the current crisis, much less point out
new directions for the country; and, 4) ethical and moral crisis at all levels of
government and within the Brazilian society resultant from the existence of widespread
systemic corruption.
The gigantic economic crisis that faces Brazil in time results from the failure of the
neoliberal and anti-national economic model. This model failed in Brazil after
provoking a real devastation in the Brazilian economy from 1990 to 2014 configured in
meager economic growth, uncontrolled inflation in the last four years, the existing of
bottlenecks in economic and social infrastructure, the de-industrialization of the
Brazilian economy, the explosion of public debt and denationalization of the Brazilian
economy. In an attempt to overcome the economic crisis, the Dilma Rousseff
government decided to adopt a recessive policy that is already resulting in the stagnant
economy, rising public debt, the imbalance in the external accounts and also in mass
unemployment.
The political crisis that shakes the Brazil results from the failure of the political model
approved by the National Constituent Assembly 1988. The failure of the political model
in Brazil is demonstrated on the fact that the presidential system in force have
completely failed generator and be source of political and institutional crises, the
political system of the country is contaminated by corruption, representative democracy
in Brazil show clear signs of exhaustion not only by corruption scandals in the powers
of the Republic, but especially to discourage popular participation in government
decisions, reducing political activity to mere electoral processes that periodically repeat
in which the people elect their representatives who, with few exceptions, after the
elections come to defend interests of economic groups in opposition to the interests of
those who elected them.
The management crisis in Brazil results from the failure of the existing public
administration model in Brazil. The failure of public administration model in Brazil is
demonstrated on the fact not meet the growing needs of the country, the Brazilian
government is inefficient and ineffective due, among other factors, the lack of
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integration of federal, state and municipal governments in promoting national, regional
and local development. This is a major cause of the administrative debacle of the public
sector in Brazil source of waste, delays in the execution of works and rampant
corruption. The lack of integration of the various bodies of the Brazilian state is,
therefore, total, making the action of the government becomes chaotic as a whole,
generating therefore diseconomies of all kinds.
The ethical and moral crisis which manifests itself at all levels of government and
within the Brazilian society is evidenced by successive corruption scandals that occur
every day that goes by and that has become endemic throughout the country. Brazil
faces a process of ethical and moral debacle in the political-institutional level never seen
in the history of the country. The growing disbelief of the population with respect to
political institutions is a great mark of our time because most candidates for elected
office in Brazil is not driven by public interest that is, to promote political, economic
and social changes for the benefit of the population. The occupying of elective positions
in the executive branch and parliament happens to be fundamentally to constitute a
means for most elected to provide services to lenders of their election campaigns,
enriching themselves and earn an existing perks. These situations are unacceptable by
the majority of the Brazilian population.
Unacceptable is also corruption in Brazil that is systemic corresponding to the use of the
state apparatus by government officials for illegitimate private gain. Another
unacceptable situation is the misuse of public resources in Brazil manifested in
spending by the federal government with the excessive amount of ministries and other
public bodies many of them useless, costly bicameral system (Chamber of Deputies and
Senate), the excessive number of positions commissioned in the three branches of
government, the overpricing in public works and the execution of pharaonic works. The
result of systemic corruption and malpractice of public funds is higher government
spending in Brazil that are excessive burden for families and businesses with increased
taxes, and contribute to the increase in public debt.
2) The solutions to the economic, politics, management, ethics and morals crisis of
Brazil
2.1 Solutions for the economic crisis in Brazil
To overcome the current economic crisis, it is urgent to replace the neoliberal model in
force for other of national developmentist nature with selective opening of the Brazilian
economy to promote Brazil's development on a new basis and stop the ongoing
economic stagnation. The national developmentist model with selective opening of the
Brazilian economy should consider the following: 1) Replacement of floating exchange
rates in effect for the fixed exchange rate to avoid the dizzying rise in current dollar; 2)
Control the inflow and outflow of capital, particularly speculative to prevent capital
escape; 3) Nationalization of banks to ensure liquidity to citizens and businesses; 4)
Selective Imports of raw materials and essential commodities from overseas to reduce
expenditures in currency of the country; 5) Market reserve reintroduction in areas
3
considered strategic for national development; and, 6) Renationalization of privatized
state enterprises considered strategic to national development. The national
development project would cause Brazil to take on the direction of your destination,
unlike the neoliberal model in place that makes the future of the country is dictated by
market forces all of them committed to national and international financial capital.
This action should be preceded by the following measures: 1) Renegotiation with
creditors of public debt in order to reduce the burden of paying the debt with your
stretching in time and also of public expenditure to the minimum necessary so that the
Brazilian government has enough savings to invest in the expansion of the Brazilian
economy avoiding stagnation; 2) Renegotiation with creditors of public debt in order to
reduce the burden of payment for 1/3 or ¼ of the federal budget; and, 3) Drastic
reduction of public expenses reducing the number of ministries from 39 to 15 or 20 and
the elimination or reduction to a minimum of commissioned positions that are about 22
thousand.
2.2 Solutions for the political crisis in Brazil
To overcome the current political crisis, it´s necessary the federal government to
succeed in the exercise of governance that is related to their financial and administrative
capacity and the competence of its managers to practice public policies or, in other
words, the ability to exercise its role covering the implementation of policies and the
effectiveness to achieve the results of the collective interest. Without Governability
conditions is impossible proper Governance by the federal government.
The Governance crisis in Brazil today materializes in practice with the precipitous drop
in the confidence indices of the population in the Dilma Rousseff government. At the
federal level, government disarticulation with its support base in parliament, its
disagreement with the social movements and the errors of economic policy which
further aggravated the crisis befalling the Brazilian economy complement this picture of
a government, as the Dilma Rousseff, that cannot competently operate a political and
administrative action in order to produce satisfactory results for the benefit of the vast
majority of the population.
One fact is clear: Brazil, as an economic, political, administrative and social
organization is disintegrating. The signs of disintegration are evident in all parts of the
country is in government, economy and society. This situation will only come to an end
with the existence in Brazil of a government that is able to unite the nation around a
common project of economic, political and social development. Faced with the inability
of the current government to solve the economic crisis, prevent the economic, political
and social chaos going on that tends to worsen, ensuring the political governance of the
country and unite the nation around a common development project, it is will be more
unlikely to stay Dilma Rousseff in power.
To ensure governability, the substitute of Dilma Rousseff will have to convene a new
National Constituent Assembly to reorder the national life on a new basis. The new
4
Constituent Assembly would decide on the establishment of a new political system in
Brazil that includes the replacement of the presidential by parliamentary system, the
institutionalization of social control over elected by the people who should have tools to
initiate impeachment mandates proceedings when there isn´t the fulfillment of campaign
promises by the candidates and public participation in decisions of government by
plebiscite and / or referendum, among other measures.
2.3 Solutions for the public management crisis in Brazil
To overcome the crisis of public management in Brazil, it´s necessary to perform the
reform of the State and Public Administration so that the Brazilian state efficiently and
effectively perform their constitutional duties and reduce their operating costs to
minimize the tax burden on taxpayers. Only then can correct the current distortion to
eliminate waste and reduce public spending to decrease the tax burden for the benefit of
companies and workers. The future capacity of the Brazilian government to invest in the
expansion of the economy and implement programs in the social sector depends to a
large extent on the administrative restructuring that it is processed. Much of the
inefficiency and ineffectiveness of the state in Brazil results from the lack of integration
of federal, state and local government in promoting national development. Join this fact,
the existence of inadequate organizational structures in each of the federal, state and
municipal levels that prevent the integrative effort these levels of government.
The main objective of the reform of the State and Public Administration to be processed
in Brazil would be to do with the federal government, state and local governments
operate in a network, ie an integrated manner. In this sense, the reform of the State and
Public Administration should consider that the president would develop with the
participation of the other branches of government, state and municipal governments and
civil society organizations strategic management plans that would serve as a basis for
drawing up operating plans in ministerial levels, state enterprises, government of states
and municipalities to ensure compatibility between them.
The strategic management plan prepared by the President and operational plans in
ministerial levels, state enterprises, government of states and municipalities should
generate management contracts on which their managers would undertake to meet the
objectives established in each plan. The success or failure in meeting management
contracts would be the basis to maintain or replace public office managers. The
organizational structure would not be fixed as currently occurs, but outlined to the
objectives and strategies established in each strategic and operational plan. This would
be the way to ensure the integration of all public bodies and ensure the democratization
of planning with the participation of civil society.
2.4- Solutions for ethical and moral crisis in Brazil
The purpose of ethics and morals are very similar. Both are responsible for building the
foundation that will guide the conduct of the citizen by teaching the best way to act and
behave in society. Importantly, Ethics is a set of extracted knowledge of the
investigation of human behavior throughout history seeking to establish and explain the
moral rules of rational, scientifically based. Moral, in turn, is the set of rules acquired by
education and tradition and applied in daily life and continuously used by every citizen.
These rules govern the conduct of each individual, guiding their actions and their
judgments about what is moral or immoral, right or wrong, good or bad.
5
The struggle in defense of ethics and morals in Brazil at short-term requires the
following: 1) To convene a National Constituent Assembly Exclusive to contribute to
prevent ethical and moral deviations of public managers and their exemplary
punishment; 2) Punishment exemplar of all that undermine the ethical and moral
principles; 3) Adoption of immediate measures aimed at transparency of actions taken
by public officials; 4) Surveillance of civil society organizations in monitoring public
sector management; 5) Media Action denouncing practices contrary to ethics and
morality in the public sector and in society; and, 6) Combating crime. In the medium
and long term, there must be: 1) massive effort in the education sector to prepare future
citizens committed to ethics and morals; 2) reduction of social inequalities; and 3)
continuing fight against crime.
*Fernando Alcoforado, member of the Bahia Academy of Education, engineer and doctor of Territorial
Planning and Regional Development from the University of Barcelona, a university professor and
consultant in strategic planning, business planning, regional planning and planning of energy systems, is
the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova
(Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São
Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado.
Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e
Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX
e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of
the Economic and Social Development-The Case of the State of Bahia (VDM Verlag Dr. Muller
Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe
Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e
combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011),
Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012) and
Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV,
Curitiba, 2015).

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Solutions for crisis that threaten future of brazil

  • 1. 1 SOLUTIONS FOR CRISIS THAT THREATEN FUTURE OF BRAZIL Fernando Alcoforado * 1) The crises that threaten future of Brazil Brazil is facing at the moment with 4 types of crisis: 1) gigantic economic crisis that threatens the survival of families with the escalating of inflation and massive unemployment, companies with advancing of recession toward depression and of the country with economic stagnation and rising public debt; 2) deep political crisis that threatens to throw the country into chaos of the total ungovernability and violence and generate political and institutional regression to maintain order; 3) management crisis elevated to extreme thanks to the existence of incompetent rulers who contribute to the inefficiency and ineffectiveness of the actions of the Brazilian government and demonstrate incapacity to propose solutions to the current crisis, much less point out new directions for the country; and, 4) ethical and moral crisis at all levels of government and within the Brazilian society resultant from the existence of widespread systemic corruption. The gigantic economic crisis that faces Brazil in time results from the failure of the neoliberal and anti-national economic model. This model failed in Brazil after provoking a real devastation in the Brazilian economy from 1990 to 2014 configured in meager economic growth, uncontrolled inflation in the last four years, the existing of bottlenecks in economic and social infrastructure, the de-industrialization of the Brazilian economy, the explosion of public debt and denationalization of the Brazilian economy. In an attempt to overcome the economic crisis, the Dilma Rousseff government decided to adopt a recessive policy that is already resulting in the stagnant economy, rising public debt, the imbalance in the external accounts and also in mass unemployment. The political crisis that shakes the Brazil results from the failure of the political model approved by the National Constituent Assembly 1988. The failure of the political model in Brazil is demonstrated on the fact that the presidential system in force have completely failed generator and be source of political and institutional crises, the political system of the country is contaminated by corruption, representative democracy in Brazil show clear signs of exhaustion not only by corruption scandals in the powers of the Republic, but especially to discourage popular participation in government decisions, reducing political activity to mere electoral processes that periodically repeat in which the people elect their representatives who, with few exceptions, after the elections come to defend interests of economic groups in opposition to the interests of those who elected them. The management crisis in Brazil results from the failure of the existing public administration model in Brazil. The failure of public administration model in Brazil is demonstrated on the fact not meet the growing needs of the country, the Brazilian government is inefficient and ineffective due, among other factors, the lack of
  • 2. 2 integration of federal, state and municipal governments in promoting national, regional and local development. This is a major cause of the administrative debacle of the public sector in Brazil source of waste, delays in the execution of works and rampant corruption. The lack of integration of the various bodies of the Brazilian state is, therefore, total, making the action of the government becomes chaotic as a whole, generating therefore diseconomies of all kinds. The ethical and moral crisis which manifests itself at all levels of government and within the Brazilian society is evidenced by successive corruption scandals that occur every day that goes by and that has become endemic throughout the country. Brazil faces a process of ethical and moral debacle in the political-institutional level never seen in the history of the country. The growing disbelief of the population with respect to political institutions is a great mark of our time because most candidates for elected office in Brazil is not driven by public interest that is, to promote political, economic and social changes for the benefit of the population. The occupying of elective positions in the executive branch and parliament happens to be fundamentally to constitute a means for most elected to provide services to lenders of their election campaigns, enriching themselves and earn an existing perks. These situations are unacceptable by the majority of the Brazilian population. Unacceptable is also corruption in Brazil that is systemic corresponding to the use of the state apparatus by government officials for illegitimate private gain. Another unacceptable situation is the misuse of public resources in Brazil manifested in spending by the federal government with the excessive amount of ministries and other public bodies many of them useless, costly bicameral system (Chamber of Deputies and Senate), the excessive number of positions commissioned in the three branches of government, the overpricing in public works and the execution of pharaonic works. The result of systemic corruption and malpractice of public funds is higher government spending in Brazil that are excessive burden for families and businesses with increased taxes, and contribute to the increase in public debt. 2) The solutions to the economic, politics, management, ethics and morals crisis of Brazil 2.1 Solutions for the economic crisis in Brazil To overcome the current economic crisis, it is urgent to replace the neoliberal model in force for other of national developmentist nature with selective opening of the Brazilian economy to promote Brazil's development on a new basis and stop the ongoing economic stagnation. The national developmentist model with selective opening of the Brazilian economy should consider the following: 1) Replacement of floating exchange rates in effect for the fixed exchange rate to avoid the dizzying rise in current dollar; 2) Control the inflow and outflow of capital, particularly speculative to prevent capital escape; 3) Nationalization of banks to ensure liquidity to citizens and businesses; 4) Selective Imports of raw materials and essential commodities from overseas to reduce expenditures in currency of the country; 5) Market reserve reintroduction in areas
  • 3. 3 considered strategic for national development; and, 6) Renationalization of privatized state enterprises considered strategic to national development. The national development project would cause Brazil to take on the direction of your destination, unlike the neoliberal model in place that makes the future of the country is dictated by market forces all of them committed to national and international financial capital. This action should be preceded by the following measures: 1) Renegotiation with creditors of public debt in order to reduce the burden of paying the debt with your stretching in time and also of public expenditure to the minimum necessary so that the Brazilian government has enough savings to invest in the expansion of the Brazilian economy avoiding stagnation; 2) Renegotiation with creditors of public debt in order to reduce the burden of payment for 1/3 or ¼ of the federal budget; and, 3) Drastic reduction of public expenses reducing the number of ministries from 39 to 15 or 20 and the elimination or reduction to a minimum of commissioned positions that are about 22 thousand. 2.2 Solutions for the political crisis in Brazil To overcome the current political crisis, it´s necessary the federal government to succeed in the exercise of governance that is related to their financial and administrative capacity and the competence of its managers to practice public policies or, in other words, the ability to exercise its role covering the implementation of policies and the effectiveness to achieve the results of the collective interest. Without Governability conditions is impossible proper Governance by the federal government. The Governance crisis in Brazil today materializes in practice with the precipitous drop in the confidence indices of the population in the Dilma Rousseff government. At the federal level, government disarticulation with its support base in parliament, its disagreement with the social movements and the errors of economic policy which further aggravated the crisis befalling the Brazilian economy complement this picture of a government, as the Dilma Rousseff, that cannot competently operate a political and administrative action in order to produce satisfactory results for the benefit of the vast majority of the population. One fact is clear: Brazil, as an economic, political, administrative and social organization is disintegrating. The signs of disintegration are evident in all parts of the country is in government, economy and society. This situation will only come to an end with the existence in Brazil of a government that is able to unite the nation around a common project of economic, political and social development. Faced with the inability of the current government to solve the economic crisis, prevent the economic, political and social chaos going on that tends to worsen, ensuring the political governance of the country and unite the nation around a common development project, it is will be more unlikely to stay Dilma Rousseff in power. To ensure governability, the substitute of Dilma Rousseff will have to convene a new National Constituent Assembly to reorder the national life on a new basis. The new
  • 4. 4 Constituent Assembly would decide on the establishment of a new political system in Brazil that includes the replacement of the presidential by parliamentary system, the institutionalization of social control over elected by the people who should have tools to initiate impeachment mandates proceedings when there isn´t the fulfillment of campaign promises by the candidates and public participation in decisions of government by plebiscite and / or referendum, among other measures. 2.3 Solutions for the public management crisis in Brazil To overcome the crisis of public management in Brazil, it´s necessary to perform the reform of the State and Public Administration so that the Brazilian state efficiently and effectively perform their constitutional duties and reduce their operating costs to minimize the tax burden on taxpayers. Only then can correct the current distortion to eliminate waste and reduce public spending to decrease the tax burden for the benefit of companies and workers. The future capacity of the Brazilian government to invest in the expansion of the economy and implement programs in the social sector depends to a large extent on the administrative restructuring that it is processed. Much of the inefficiency and ineffectiveness of the state in Brazil results from the lack of integration of federal, state and local government in promoting national development. Join this fact, the existence of inadequate organizational structures in each of the federal, state and municipal levels that prevent the integrative effort these levels of government. The main objective of the reform of the State and Public Administration to be processed in Brazil would be to do with the federal government, state and local governments operate in a network, ie an integrated manner. In this sense, the reform of the State and Public Administration should consider that the president would develop with the participation of the other branches of government, state and municipal governments and civil society organizations strategic management plans that would serve as a basis for drawing up operating plans in ministerial levels, state enterprises, government of states and municipalities to ensure compatibility between them. The strategic management plan prepared by the President and operational plans in ministerial levels, state enterprises, government of states and municipalities should generate management contracts on which their managers would undertake to meet the objectives established in each plan. The success or failure in meeting management contracts would be the basis to maintain or replace public office managers. The organizational structure would not be fixed as currently occurs, but outlined to the objectives and strategies established in each strategic and operational plan. This would be the way to ensure the integration of all public bodies and ensure the democratization of planning with the participation of civil society. 2.4- Solutions for ethical and moral crisis in Brazil The purpose of ethics and morals are very similar. Both are responsible for building the foundation that will guide the conduct of the citizen by teaching the best way to act and behave in society. Importantly, Ethics is a set of extracted knowledge of the investigation of human behavior throughout history seeking to establish and explain the moral rules of rational, scientifically based. Moral, in turn, is the set of rules acquired by education and tradition and applied in daily life and continuously used by every citizen. These rules govern the conduct of each individual, guiding their actions and their judgments about what is moral or immoral, right or wrong, good or bad.
  • 5. 5 The struggle in defense of ethics and morals in Brazil at short-term requires the following: 1) To convene a National Constituent Assembly Exclusive to contribute to prevent ethical and moral deviations of public managers and their exemplary punishment; 2) Punishment exemplar of all that undermine the ethical and moral principles; 3) Adoption of immediate measures aimed at transparency of actions taken by public officials; 4) Surveillance of civil society organizations in monitoring public sector management; 5) Media Action denouncing practices contrary to ethics and morality in the public sector and in society; and, 6) Combating crime. In the medium and long term, there must be: 1) massive effort in the education sector to prepare future citizens committed to ethics and morals; 2) reduction of social inequalities; and 3) continuing fight against crime. *Fernando Alcoforado, member of the Bahia Academy of Education, engineer and doctor of Territorial Planning and Regional Development from the University of Barcelona, a university professor and consultant in strategic planning, business planning, regional planning and planning of energy systems, is the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova (Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado. Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of the Economic and Social Development-The Case of the State of Bahia (VDM Verlag Dr. Muller Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011), Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012) and Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV, Curitiba, 2015).