Successive increases on interest rate by the Brazilian Central Bank’s Monetary Policy Committee (Copom) is causing entities representing civil society to demand more participation on the definition of the country’s economic policy.
A group integrated by several civil entities, such as the Central Workers’ Union (CUT), the Federation of Industries of the State of São Paulo (Fiesp), and the National Confederation of Industries (CNI), launched in March a campaign requesting the reform of the National Monetary Council (CMN).
The Brazilian Organization of Non-Governmental Organizations (Abong) and its 300 affiliates are also pressing the government for civil society participation on the definition of the economic policy.
Abong’s Director of Institutional Relations, José Antônio Moroni, explains that the entity wants the expansion of CMN.
“Today, CMN is composed of the Ministers of Finance, Planning, and the President of the Central Bank. We want society’s participation through 3 more representatives: of the entrepreneurs, of workers, and of civil society.”
The proposal was taken to the Social and Economic Development Council, which created a commission to analyze it.
“On May 19th, the proposal will be voted by the Council, but it will probably be approved, because no one has said anything against it. After approval, it will go to President Lula, and I believe, it has good chances of being ratified. There is a lot of pressure for the participation of the civil society in the economic policy,” said Moroni.
In his opinion, society should also participate on the Copom, but he says that Abong considers participation on the CMN strategic.
“It is the CMN that defines inflation goals, which determine all the remaining issues of the country’s economic policy, such as the interest rate policy.”