If not maddened by it, whoever bothered to review the statements, interviews, debates, and documents that emerged from the Brazilian administration’s recent extended cabinet meeting would at least have fallen into a state of deep perplexity.

Because, without making up, it was the meeting of the contradictory. The reunion of impossible possibilities. As well as the burial of the last hopes for change in Brazil.

On one side, President Lula declared for the thousandth time the absolute priority in staying the course with Finance Minister Palocci’s economic policy, that is, one more ode to neo-liberalism.

On the other, to sum up various pronouncements, Cabinet Chief José Dirceu announced investments in infra-structure, spoke of the new phase in social areas, the generation of millions of jobs, the expansion of credit lines, and projects in railways, ports, and highways.

IMF Plays Cat and Mouse

Let’s be reasonable, it’s impossible to root at the same time for Corinthians and Santos (popular São Paulo soccer teams, comparable to New York’s baseball teams Yankees and Mets). Or for Flamengo and Vasco (rivals in Rio).

If the idea is to preserve the model inherited from eight years of “the sociologist”, former President Cardoso, and keep dismantling the country by way of speculation in detriment to production—fine.

Actually, it’s not fine. But if the goal is to reengage in growth, reaffirm national power, extend civilization’s benefits—wealth and culture—to all citizens, it can never be through the policies and the foundations so exalted by the President.

In concluding, after tying a knot in the head of the whole nation, the government has ended the chapter of hope. No one doubts the President’s good intentions, but if he closes the deal with Palocci and gang, as he did, how can we watch without a touch of irony his Cabinet Chief revisit the same promises—two years after the campaign—that are yet to be fulfilled?

From lemonade, they are trying to make a lemon, overlooking that neither—without sugar—is plausible to be taken in.

The worst to come out of the Cabinet meeting were the threats. Finance Minister Antonio Palocci, despite being inspired by the President’s praises and show of favoritism, remained guarded.

He alerted for worse international conditions in 2005, compared to 2004, meaning—funds to make good on esoteric promises of investments in infra-structure and the social sector will not be available.

He awaits a decision from the International Monetary Fund on whether certain outlays will be taken into account in computing the primary surplus.

In other words, he’s standing by for the IMF to authorize whether or not we ought to salvage our highways, which are falling apart, and modernize the ports that are putting a stranglehold on our exports.

More than a year after the Brazilian humiliating appeal, international organizations continue to play cat and mouse with the nation.

If evidence that we will remain in plaster cast was missing, while economic growth and social programs continue to be a midnight’s summer dream, it has now become clear with this last cabinet meeting.

The second half shall not differ from the first, of an administration that has portrayed itself as of workers, but, in truth, appears to belong to speculators.

The consequence of this fiasco is that nothing is to be expected from the ministerial reshuffling already underway. The most that the Commander in Chief may be able to attain, even then only to satisfy partisan appetites, will be to trade in six in return for half a dozen.

Later, when the elections come, what explanation will they pursue for the defeat?

Playing with the Devil

President Lula stated, before the cabinet, that whoever wants to be opposition to look for a post outside the government. Many assumed he was addressing the PMDB (Brazilian Democratic Movement Party), the PPS (Populist Social Party), and other parties that, half way, attempt to land the official congressional base; or, even groups that within the Workers Party exhibit strong disagreement in the face of the government’s strategy. Of course that’s how it went, but that’s not the entire story.

The message also had another target, by the way, much closer to home: the ministers who, even in a reserved fashion, have been mending the economic model put in place by the team headed by Finance Minister Palocci and Central Bank’s President Henrique Meirelles.

Not including Cabinet Chief José Dirceu, whose criticism of economic policies alternates to declarations of love for Finance Minister Palocci, some ministers felt a thump in the back of the head from the presidential warning.

A few, to the point of, going straight from the Granja do Torto (the presidential residence) immediately to their offices, to clean out their desks.

Let’s avoid hard feelings of naming names, because, after all, absolute loyalty to official policies doesn’t seem to be the only factor to get the wheel of ministerial reform rolling. Friendships weigh in. Feelings of loyalty witnessed in the past, also. Even some consoling offered in exasperating times.

Now, President Lula’s signal was obvious: he wants identity of concepts and purposes within his administration. He has become less tolerant of those who surge against the economic team’s policies.

The first sign of such doctrinal armoring could be seen two weeks ago. Few noticed more than personal differences in the firing of the President of the BNDES (National Bank for Development), Carlos Lessa, and Palocci.

But it was the parting of waters factor. From now on, anyone to vociferate publicly in opposition to the current economic model, better pack up. Only in public? Perhaps not…

Carlos Chagas writes for the Rio's daily Tribuna da Imprensa and is a representative of the Brazilian Press Association, in Brasília. He welcomes your comments at carloschagas@hotmail.com.

Translated from the Portuguese by Eduardo Assumpção de Queiroz. He is a freelance translator, with a degree in Business and almost 20 years of experience working in the fields of economics, communications, social and political sciences, and sports. He lives in Boca Raton, FL. His email: eaqus@adelphia.net.

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