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BRAZIL HAS DARK FUTURE
Fernando Alcoforado *
Brazil is facing at the moment with the failure of the neoliberal and anti-national
economic model implemented since 1990 by the governments of Fernando Collor,
Itamar Franco and Fernando Henrique Cardoso and maintained by Lula and Dilma
Rousseff governments, the failure of the political system implemented in 1988 by the
National Constituent Assembly and the failure of the public management model
extremely inefficient and ineffective in addressing the needs of the country.
The neoliberal economic model went bankrupt in Brazil because after provoking a real
devastation in the Brazilian economy of 1990 up to the present moment configured in
the weak economic growth, uncontrolled inflation in the last 4 years, the existing
bottlenecks in economic and social infrastructure, the de-industrialization of the
Brazilian economy, the explosion of internal and external public debt and
denationalization of the Brazilian economy, has no prospects of overcoming these
problems given that the Michel Temer government decided to take a recessive policy
which is translating into stagnation of the economy, the increase in public debt, external
imbalance and also in the mass unemployment that already reaches 13 million
unemployed.
Considering the fact that Brazil's economic system is a dynamic system, when it is
subject to "fluctuations" as facing at the moment is brought to a bifurcation point from
which the system has to be restructured or enter into collapse. This is the situation faced
by Brazil's economy, which is facing a deep crisis. To face the crisis, the Michel Temer
government chose to adopt a negative "feedback" trying to correct the deviations to
return to the original path, that is, maintain the "status quo", which can lead Brazil's
economic system to collapse, when it should adopt the positive "feedback" to the
promotion of positive change, the formation of new structures, more sophisticated, more
adaptable, more subtle and innovative to overcome the current crisis and resume the
development of the country on a new basis.
With the negative "feedback" action is conservative because it means the maintenance
of the failed neoliberal economic model whose continuity will be disastrous for the
country because coincide with the tendency towards economic depression that is already
manifest in the world capitalist system with the financial and economic instability that is
advancing in emerging markets such as Brazil, including in China where growth is
slowing. Thus, the epicenter of the global crisis, which first occurred in 2008 in the
United States and moved to Europe between 2010 and 2013, is now focusing on
emerging market economies, including China. The increasing financial instability in the
world economy and China is a serious problem for Brazil because it is highly dependent
on exports, especially to China.
With the positive "feedback", the Brazilian government could lead the Brazilian
economic system to another development level different of the previous level. The
action would be revolutionary contemplating the adoption of the following measures: 1)
renegotiation with creditors of public domestic debt of the country aimed at reducing
the burden of payment for 1/3 or ¼ of the federal budget; 2) drastically reduction of the
cost of public spending by 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
22,000; 3) installation of a crisis cabinet composed of persons of the highest
2
competence and the highest loading gauge and ethical and moral respectability for the
respect of the nation to ensure good governance; and, 4) replacement of the neoliberal
model in force for other national development of selective opening of the Brazilian
economy to promote the development of Brazil on a new bases and avoid economic
stagnation in progress.
A government seriously committed to the defense of national sovereignty, the progress
of Brazil and the social welfare of its population would have necessarily repel the
current scenario replacing the neoliberal economic model by the national development
model of selective and controlled opening of the national economy that certainly would
make the country less vulnerable to attack by speculative foreign capital with the
government exercising effective control of the economy, and help revive the national
development. The selective national development model of openness of the Brazilian
economy should include the following: 1) replacement of floating exchange rates in
effect for the fixed exchange rate to avoid the dizzying rise in current dollars; 2) control
of the inflow and outflow of capital, particularly speculative; 3) selective import of raw
materials and essential products from overseas to reduce expenditures in currency of the
country; and, 4) reintroduction of market reserve in areas considered strategic for
national development. The national development project would cause Brazil to take on
the direction of its future, 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.
The failure of the political model in Brazil is set in the fact of presidentialism in force
have completely failed and be generator of political and institutional crisis, the political
system of the country is contaminated by corruption, the 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, reducing political
activity to mere electoral processes that are periodically repeated 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.
This has come to an end with the replacement of presidentialism by parliamentarism
system and social control of the elected by the people who must have the instruments to
begin the process of impeachment of mandates when there is a disengagement of
promises of election campaign by candidates.
The failure of public management model in Brazil is configured in fact not meet the
needs of the country, the Brazilian government is inefficient and ineffective due, among
other factors, the lack of integration of federal, state and municipal governments in
promoting national development, regional and local. This is a major cause of
administrative collapse of the public sector in Brazil generator of waste, delays in the
execution of works and rampant corruption. The lack of integration of the various
bodies of the Brazilian state, therefore, is total, making the action of the government
becomes chaotic as a whole, generating therefore diseconomies of all kinds. It is
therefore important organizational restructuring in Brazil on a new basis with the
integrated planning among federal, state and municipal agencies and the operation of
activities with regional structures connected to each other with a view to effective
development of the various regions of Brazil.
It can be seen from the above, that the current problems of Brazil will not be overcome
due to the Michel Temer government's inability to abandon the neoliberal and anti-
3
national economic model in force because succumbed to the national and international
financial capital and to reform the political system and the management model of public
sector because he succumb to the reactionary political forces that make up the National
Congress. While Michel Temer and the forces that give her support to continue in
power, Brazil will continue a country ungovernable, like a ship adrift ready to sink.
Brazil's future is dark in the absence of political and institutional alternatives to
overcome the current crisis. Only remains to Brazilian people to expect that, before or
after the "shipwreck of the ship named Brazil", a new National Constituent Assembly
will be convened to carry out the political, State and Public Administration reforms and,
consequently, to reorganize the national life.
*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)
and Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012),
among others.

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Brazil has dark future

  • 1. 1 BRAZIL HAS DARK FUTURE Fernando Alcoforado * Brazil is facing at the moment with the failure of the neoliberal and anti-national economic model implemented since 1990 by the governments of Fernando Collor, Itamar Franco and Fernando Henrique Cardoso and maintained by Lula and Dilma Rousseff governments, the failure of the political system implemented in 1988 by the National Constituent Assembly and the failure of the public management model extremely inefficient and ineffective in addressing the needs of the country. The neoliberal economic model went bankrupt in Brazil because after provoking a real devastation in the Brazilian economy of 1990 up to the present moment configured in the weak economic growth, uncontrolled inflation in the last 4 years, the existing bottlenecks in economic and social infrastructure, the de-industrialization of the Brazilian economy, the explosion of internal and external public debt and denationalization of the Brazilian economy, has no prospects of overcoming these problems given that the Michel Temer government decided to take a recessive policy which is translating into stagnation of the economy, the increase in public debt, external imbalance and also in the mass unemployment that already reaches 13 million unemployed. Considering the fact that Brazil's economic system is a dynamic system, when it is subject to "fluctuations" as facing at the moment is brought to a bifurcation point from which the system has to be restructured or enter into collapse. This is the situation faced by Brazil's economy, which is facing a deep crisis. To face the crisis, the Michel Temer government chose to adopt a negative "feedback" trying to correct the deviations to return to the original path, that is, maintain the "status quo", which can lead Brazil's economic system to collapse, when it should adopt the positive "feedback" to the promotion of positive change, the formation of new structures, more sophisticated, more adaptable, more subtle and innovative to overcome the current crisis and resume the development of the country on a new basis. With the negative "feedback" action is conservative because it means the maintenance of the failed neoliberal economic model whose continuity will be disastrous for the country because coincide with the tendency towards economic depression that is already manifest in the world capitalist system with the financial and economic instability that is advancing in emerging markets such as Brazil, including in China where growth is slowing. Thus, the epicenter of the global crisis, which first occurred in 2008 in the United States and moved to Europe between 2010 and 2013, is now focusing on emerging market economies, including China. The increasing financial instability in the world economy and China is a serious problem for Brazil because it is highly dependent on exports, especially to China. With the positive "feedback", the Brazilian government could lead the Brazilian economic system to another development level different of the previous level. The action would be revolutionary contemplating the adoption of the following measures: 1) renegotiation with creditors of public domestic debt of the country aimed at reducing the burden of payment for 1/3 or ¼ of the federal budget; 2) drastically reduction of the cost of public spending by 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 22,000; 3) installation of a crisis cabinet composed of persons of the highest
  • 2. 2 competence and the highest loading gauge and ethical and moral respectability for the respect of the nation to ensure good governance; and, 4) replacement of the neoliberal model in force for other national development of selective opening of the Brazilian economy to promote the development of Brazil on a new bases and avoid economic stagnation in progress. A government seriously committed to the defense of national sovereignty, the progress of Brazil and the social welfare of its population would have necessarily repel the current scenario replacing the neoliberal economic model by the national development model of selective and controlled opening of the national economy that certainly would make the country less vulnerable to attack by speculative foreign capital with the government exercising effective control of the economy, and help revive the national development. The selective national development model of openness of the Brazilian economy should include the following: 1) replacement of floating exchange rates in effect for the fixed exchange rate to avoid the dizzying rise in current dollars; 2) control of the inflow and outflow of capital, particularly speculative; 3) selective import of raw materials and essential products from overseas to reduce expenditures in currency of the country; and, 4) reintroduction of market reserve in areas considered strategic for national development. The national development project would cause Brazil to take on the direction of its future, 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. The failure of the political model in Brazil is set in the fact of presidentialism in force have completely failed and be generator of political and institutional crisis, the political system of the country is contaminated by corruption, the 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, reducing political activity to mere electoral processes that are periodically repeated 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. This has come to an end with the replacement of presidentialism by parliamentarism system and social control of the elected by the people who must have the instruments to begin the process of impeachment of mandates when there is a disengagement of promises of election campaign by candidates. The failure of public management model in Brazil is configured in fact not meet the needs of the country, the Brazilian government is inefficient and ineffective due, among other factors, the lack of integration of federal, state and municipal governments in promoting national development, regional and local. This is a major cause of administrative collapse of the public sector in Brazil generator of waste, delays in the execution of works and rampant corruption. The lack of integration of the various bodies of the Brazilian state, therefore, is total, making the action of the government becomes chaotic as a whole, generating therefore diseconomies of all kinds. It is therefore important organizational restructuring in Brazil on a new basis with the integrated planning among federal, state and municipal agencies and the operation of activities with regional structures connected to each other with a view to effective development of the various regions of Brazil. It can be seen from the above, that the current problems of Brazil will not be overcome due to the Michel Temer government's inability to abandon the neoliberal and anti-
  • 3. 3 national economic model in force because succumbed to the national and international financial capital and to reform the political system and the management model of public sector because he succumb to the reactionary political forces that make up the National Congress. While Michel Temer and the forces that give her support to continue in power, Brazil will continue a country ungovernable, like a ship adrift ready to sink. Brazil's future is dark in the absence of political and institutional alternatives to overcome the current crisis. Only remains to Brazilian people to expect that, before or after the "shipwreck of the ship named Brazil", a new National Constituent Assembly will be convened to carry out the political, State and Public Administration reforms and, consequently, to reorganize the national life. *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) and Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012), among others.