Brazil is facing economic, political, and management crises due to failed neoliberal policies since 1990. The neoliberal economic model has led to stagnation, debt, and deindustrialization. Maintaining the status quo will likely lead the economy to collapse. Adopting positive reforms like debt restructuring, import controls, and nationalization could put Brazil on a new development path. The political system is also failing due to corruption and lack of popular participation. Public management is inefficient due to lack of coordination between government levels. Overcoming these crises requires replacing the neoliberal model and reforming political and management systems.

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THE BANKRUPT 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 failed in Brazil because after provoking a real
devastation in the Brazilian economy from 1990 to 2014 set in the meager 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 Dilma Rousseff
government decided to take a recessive policy that will result in stagnation of the
economy, the increase in public debt, external imbalance and also the resumption of
unemployment.
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 Dilma
Rousseff 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 imports, especially from 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)
reduction of the burden of payment of the public debt lengthening the time and also
public spending to a minimum so that the Brazilian government has enough savings to
invest in the expansion of the Brazilian economy preventing its stagnation; 2)
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; 3) drastically reduction of the
cost of public spending by reducing the number of ministries from 39 to 15 or 20 and

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the elimination or reduction to a minimum of commissioned positions that are about
22,000; 4) installation of a crisis cabinet composed of persons of the highest
competence and the highest loading gauge and ethical and moral respectability for the
respect of the nation to ensure good governance; and, 5) 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 economy national 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) nationalization of banks
to ensure liquidity to citizens and businesses; 4) selective import of raw materials and
essential products from overseas to reduce expenditures in currency of the country; 5)
reintroduction of market reserve in areas considered strategic for national development;
and 6) re-nationalization 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.
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

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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 Dilma Rousseff government's inability to restructure the neoliberal and anti-
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 Rousseff 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. The street demonstrations that have occurred or will occur in Brazil will
not be sufficient to reverse the current situation. It only remains to the Brazilian people
expect, from the "sinking of the ship Brazil", result in the formation of a new
government capable of restructuring economic and politically the country.
*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.