The Brazilian people need to understand that small changes or simple reforms are not enough in political institutions and existing legislations and in fiscal adjustments like PEC 241/55 of the Michel Temer government to overcome the current economic crisis because the Brazilian crisis is structural. It is fundamentally urgent to overcome the gigantic economic crisis, the deep political crisis, the management crisis of the public administration and the moral and ethical crisis that threaten Brazil's future. It must be understood that all these crises are interconnected and that none of them will be overcome in isolation without overcoming the others. The first of the crises to be overcome is the political crisis in the face of the absence of governability of President Michel Temer with the convening of a new National Constituent Assembly to reorder the national life in new bases aimed at overcoming the economic crises, of management of public administration and ethical and moral.

1. 1
THE FAILURE OF THE POLITICAL AND ECONOMIC SYSTEMS OF
BRAZIL
Fernando Alcoforado *
It is necessary that the Brazilian people understand that Brazil is facing the present
moment with 4 types of crisis: 1) deep political crisis that is already launching the
country in the chaos of total ungovernability and violence and threatens to generate
political and institutional backtracking to maintain the order; 2) a gigantic economic
crisis that is putting in check the survival of families with the escalation of inflation and
mass unemployment, failure of companies with the advance of the recession towards
depression and the country itself with increasing economic stagnation and public
indebtedness; 3) an extremely high management crisis due to the existence of
incompetent governors that contribute to the ineffectiveness and inefficiency of federal
government actions and demonstrate inability to propose solutions to the current crisis,
much less to point out new directions for the country; And, 4) ethical and moral crisis in
all instances of government and within Brazilian society resulting from widespread
systemic corruption.
The political crisis in Brazil results from the failure of the political model approved in
the 1988 Constituent Assembly. The failure of Brazil's political model is based by the
fact that current presidentialism has totally failed and generates political and
institutional crises, the political system of the country is contaminated by corruption,
representative democracy in Brazil manifests clear signs of exhaustion not only by
corruption scandals in the Republic's powers, but, above all, by discouraging popular
participation in government decisions, reducing political activity to mere electoral
processes that are repeated periodically in which the people elect their representatives
who, with a few exceptions, after the elections begin to defend interests of economic
groups in opposition to the interests of those who elected them.
The gigantic economic crisis that confronts Brazil at the moment results from the
bankruptcy of the neoliberal and antinational economic model. This model failed in
Brazil after provoking a true devastation in the Brazilian economy from 1990 to 2014
shaped by the weak economic growth, the uncontrolled inflation in the last 4 years, the
bottlenecks in the economic and social infrastructure, the deindustrialization of the
Brazilian economy, the explosion of the public debt and in the denationalization of the
Brazilian economy. In an attempt to overcome the economic crisis, the Michel Temer
government, which replaced the ill-fated government Dilma Rousseff, decided to adopt
an economic policy that is translating into deepening the recession of the economy,
increasing public debt, imbalance of external accounts, in the generalized breakdown of
companies and also in the mass unemployment.
The management crisis in Brazil results from the bankruptcy of the existing public
administration model in Brazil. The bankruptcy of the public administration model in
Brazil is due to the fact that the Brazilian State is inefficient and ineffective due, among
other factors, to the lack of integration of federal, state and municipal governments in
the promotion of national, regional and local development. This is one of the main
causes of the administrative disruption of the public sector in Brazil, generating waste,
delays in the execution of works and unbridled corruption. The lack of integration of the
various instances of the Brazilian State is therefore total, causing the action of the public
power to become chaotic as a whole, thus generating diseconomies of all order.

2. 2
The ethical and moral crisis that manifests itself in all levels of government and within
Brazilian society is evidenced by the successive corruption scandals that occur every
day and that have become endemic throughout the country. Brazil faces a process of
ethical and moral disgrace in the political-institutional plane never seen in the history of
the country. The growing disbelief of the population with respect to the political
institutions is a great mark of our time because the majority of the candidates for
elective positions in Brazil is not moved by the public interest, that is, in the sense of
promoting political, economic and social changes for the benefit of the population. The
occupation of elective positions in the executive branch and in parliament is
fundamentally a means for a large part of the elect to provide services to the financiers
of their electoral campaigns, to enrich themselves and to obtain the existing ones. These
are unacceptable situations for the majority of the Brazilian population.
Unacceptable is also corruption in Brazil that is systemic corresponding to the use of
state apparatus by government officials for illegitimate private purposes. Another
unacceptable situation is the embezzlement of public resources in Brazil, which
manifests itself in the expenditures of the federal government with the excessive number
of ministries and other public agencies, many of them useless, the expensive bicameral
regime (Chamber of Deputies and Senate), excessive number of positions
Commissioned in the three branches of the Republic, overbilling in public works and
the execution of pharaonic works. The result of systemic corruption and
misappropriation of public resources is the increase in public spending in Brazil, which
is excessive because it taxes families and companies with the increase of taxes, in
addition to contributing to the increase of public debt.
The Brazilian people need to understand that small changes or simple reforms are not
enough in political institutions and existing legislations and in fiscal adjustments like
PEC 241/55 of the Michel Temer government to overcome the current economic crisis
because the Brazilian crisis is structural. It is fundamentally urgent to overcome the
gigantic economic crisis, the deep political crisis, the management crisis of the public
administration and the moral and ethical crisis that threaten Brazil's future. It must be
understood that all these crises are interconnected and that none of them will be
overcome in isolation without overcoming the others. The first of the crises to be
overcome is the political crisis in the face of the absence of governability of President
Michel Temer with the convening of a new National Constituent Assembly to reorder
the national life in new bases aimed at overcoming the economic crises, of management
of public administration and ethical and moral.
In order to overcome the current political crisis, the Brazilian people should demand the
resignation of Michel Temer and the constitution of a provisional government presided
over by the president of the Federal Supreme Court (STF), which would then convene a
new National Constituent Assembly to reorder the national life on new bases. The new
Constituent Assembly would deliberate on the implantation of a new political system in
Brazil that would contemplate the replacement of the impracticable current
presidentialism by the parliamentarianism, the substitution of the bicameral regime for
the unicameral, the institutionalization of the social control of those elected by the
people who should have instruments to initiate cassation proceedings mandates when
promises of election campaign are not fulfilled by the candidates and the participation
of the population in government decisions through plebiscite and / or referendum,
among other measures. After the Constituent Assembly, general elections would be held
throughout Brazil based on the new constitutional order.

3. 3
To overcome the current economic crisis, the new federal government elected should
promote, on the one hand, the increase in public revenues by: 1) taxing large fortunes
with assets exceeding R$1 billion that could yield approximately R$100 billion per
year; and (2) an increase in the taxing banks and, on the other, to reduce government
spending by: 1) drastically reducing the number of ministries and public agencies and
expenditures at all levels of government; And, 2) a drastic reduction of the basic interest
rate of the economy (Selic) to reduce the size of public debt and the burden of paying
interest and public debt amortization. To reduce interest payments and public debt
amortization, the government needs to renegotiate with creditors the lengthening of
public debt payments so that the federal government can dispose the necessary
resources for its investments in economic and social infrastructure.
The new government elected after the Constituent Assembly should draw up an
economic plan that will contribute to the retaking of Brazilian development that will
give the population and the productive sectors a perspective of economic growth.
Measures to combat economic stagnation would include the following:
• The Central Bank needs to act on the financial system to drastically reduce its interest
rates (150.70% per year in May 2016 for individuals and 66.31% per year for
companies in January 2016) to encourage household consumption and private
investment.
• The federal government has to reduce the tax burden (33% of GDP) by reducing its
payment of interest and amortization of public debt (44.93% of the Government budget)
by renegotiating with creditors the lengthening of its payment.
• The federal government should attract the private sector to invest R$ 1.6 trillion in
energy, transportation, communications and basic sanitation infrastructure to reduce the
cost of its logistics.
To encourage private investment, the Brazilian needs to: 1) promote the program of
utilization of idle capacity / expansion of productive activity in the primary, secondary
and tertiary sectors; 2) promote a program of investment in economic and social
infrastructure (R$ 2 trillion) to reduce, above all, the cost of energy and transport
logistics; 3) promote a broad program of exports, especially agribusiness and the
mineral sector; 4) drastically reduce bank interest rates to encourage household
consumption and investment by companies; 5) reduce the tax burden by lowering the
payments of interest and amortization of public debt and rationalizing the government's
administrative structure; 6) reduce the cost of energy and transportation with the
improvement of economic infrastructure; And, 7) implement the fixed exchange rate to
replace the floating exchange rate to encourage exports. In addition, the Brazilian
government should adopt measures to reduce Brazil's external vulnerability with capital
controls that must be carried out with the taxation on the inflow of foreign capital
requiring that a certain percentage of the foreign investment be retained in reserve for a
certain number of days together to limit the volatility of capital flows.
In order to overcome the crisis of public management in Brazil, the new Constituent
Assembly would deliberate on how to carry out the reform of the State and Public
Administration in order that the Brazilian State efficiently and effectively carry out its
constitutional functions and reduce its operating costs to minimize tax burden on
taxpayers. Only then it will be possible to correct the current distortions to eliminate
waste and reduce public spending to reduce the tax burden for companies and workers.

4. 4
The future capacity of the Brazilian State to invest in the expansion of the economy and
to implement programs in the social area depends, to a large extent, on the
administrative restructuring that is processed in it. Much of the ineffectiveness and
inefficiency of the state in Brazil results from the lack of integration of the federal, state
and municipal governments in the promotion of national development. Associated with
this fact is the existence of inadequate organizational structures at each federal, state and
municipal level that make the integrative effort in these instances of government
unfeasible.
In order to overcome the ethical and moral crisis in Brazil, it is necessary for the
National Constituent Assembly to deliberate on how to prevent ethical and moral
deviations from public managers, to punish in an exemplary manner all those that
violate ethical and moral principles, to adopt immediate measures aimed at the
transparency of the acts practiced by public managers, the monitoring of organized civil
society in the monitoring of the management of the public sector and the fight against
crime.
*Fernando Alcoforado, 76, membro da Academia Baiana de Educação, engenheiro e doutor em
Planejamento Territorial e Desenvolvimento Regional pela Universidade de Barcelona, professor
universitário e consultor nas áreas de planejamento estratégico, planejamento empresarial, planejamento
regional e planejamento de sistemas energéticos, é autor dos livros 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. Müller
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),
Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV,
Curitiba, 2015) e As Grandes Revoluções Científicas, Econômicas e Sociais que Mudaram o Mundo
(Editora CRV, Curitiba, 2016). Possui blog na Internet (http://fernando.alcoforado.zip.net). E-mail:
falcoforado@uol.com.br.