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 Brazil's just-announced Growth Acceleration Program is a plan for the elites, aiming at their economic growth and that of the country. And everything is presented in a much more complicated economese than the one used by late economist and Planning Minister Roberto Campos. After all, for Brazil to grow, banks will be able to buy, in auctions, the INSS (Social Security) benefits' payroll.
What does it mean? It means that Brazilian banks are going to charge pensioners and those who have retired a rate to pay them, something that's done today by the government. Even if their fee is one cent for every beneficiary, imagine how much they are going to make with 23 million pensions. Another special feature of the Growth Acceleration Program (abbreviated as PAC in Portuguese) has to do with what president Lula, during his recent electoral campaign, labelled as his predecessor's satanic action: the privatizations. Because now, thanks to the PAC, Bank of Brazil, the Caixa Econômica Federal (Federal Savings Bank) and other companies controlled by the state will offer their shares for sale, with the proviso that the state keep enough shares to maintain the institution's control. Yeah! "Fool me that I love it..." But there is more to it: as a way of whipping up the civilian construction, which creates jobs but makes contractors absurdly rich, the steel to be used won't be taxed anymore. Dr. Gerdau (owner of Gerdau Group, Americas' largest producer of long steel) is grateful for that, but tax exemptions will also affect other products, which will not pay IPI (Industrialized Products Tax) or other taxes either. And the companies that control the media are getting an after-Christmas Santa Claus' gift: everything dealing with Digital TV's implantation will not be taxed. These are only a few of the examples of the plan intended to make the country grow, but, all seems to indicate that only the already grown will have a chance to grow even more. Because tax cuts, tax exemption and special credit with longer terms do not help the common citizen. Just now, at the beginning of the year, there are lots of bills to be paid, from income tax to IPVA (Imposto Sobre a Propriedade de Veículos Automotores - Motor Vehicle Tax) and IPTU (Imposto Sobre Propriedade Territorial Urbana - Tax on Urban Property), plus raises on transportation, rent and all basic necessities. Have you seen the Growth Acceleration Program in your neck of the woods? Nothing Has Changed In contrast, civil servants' salaries won't be raised more than the previous year's inflation plus a percentage that can't go beyond 1.5%. Something similar will happen to the minimum wage. But the eternal beneficiaries will keep getting their sinecures. From the billions set aside for roads, railroads and harbors conservation and expansion most will go to the private sector. The government comes with the money, the private sector with the toll booths. But to make up for it there will be more agility to make bid thanks to a presidential temporary measure. Meaning that from now on they will have to wait less to be able to charge more . It is enough to mention that 1616 miles of roads and railroads needing repair will be given to the private sector. It's true that the weekend press tried to help, but it was no use. Despite some rumors, it wasn't confirmed that the government package would reduce the primary surplus's rates, using at least a little amount of the 4.25% of the GDP, which we keep frozen to pay our debt interests, would be used to help the nation grow. Not a cent. The president of the Central Bank, Henrique Meirelles, said no, and everybody lowered their head. From the Finance Minister Guido Mantega to the Chief of Staff Dilma Rousseff, they all gave in to the international financial system's impositions. Not one word on raising taxes on speculative capital. President Lula's statement when unveiling the PAC was the same old song: "It is no use growing without sharing or democratizing". "Dream and utopia are back as part of our reality". "It's time to speed up." Mantega pulled a fast one as he always does and was even better this time, which is evidence that he will keep his job. Of the more than 500 billion reais (US$ 235 billion) announced to make Brazil grow, more than half will come from Petrobras, which has been almost privatized. The funny thing is that leaders of the parties backing the government and governors were told that they would be called to participate in the program development. After the humiliating delays to which Lula subjects his guests, they were led like cattle to an auditorium, where they heard the government's dictation. All they were allowed to do was to applaud. Let's admit it, nothing has changed. The economic policy is the same, despite the re-election, which brought hope that something would change. Carlos Chagas is a veteran Brazilian journalist who writes for the Rio's daily Tribuna da Imprensa. He welcomes your comments at carloschagas@hotmail.com. Translated from the Portuguese by Arlindo Silva.
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- As to the 4,25 % surplus, it is BEFORE interests. KNOWING HOW generous are your interests rates despite all the recent cuts,
the real surplus after interests...IS A REAL DEFICIT....still today and for the foreseeable future. Afterall Brazil has still the world highest interests rates....after inflation ! No one beats you there, absolutely no one.
- As to the tax reductions, it is good. Not only Brazil has one of the world highest overall tax rate, VERY LITTLE is returned to the society in healthcare, education and infrastructure.....contrary to countries with similar rates.
- Technically, the least the government has money, the least can be stolen through corruption from your criminal politicians. . But no one should doubt that there always will be enough money....FOR THEM.....and guaranteed...NOT for the 90 % of the population. You will continue to struggle....guaranteed too...for eternity !
IS BRAZIL NOT A FIEFDOM controlled by 2 groups...the legal criminals and the illegal criminals ????
And the 90 % of the population not in one of these groups.....are simply their slaves !
No doubt that you will continue to PAY !