Luiz Inacio Lula da Silva is Brazil’s first left-wing president in four decades. The “Lula” administration as it is commonly referred has raised expectations that it is a government committed to addressing poverty and inequality in incomes, land, and access to social services. As part of the World Bank’s ongoing dialogue series with members of civil society, World Bank staff and members of nongovernmental organizations working in the country debated the potential for a new path of development in Brazil. The discussion centered on macroeconomic and social policies as well as the evolving role of civil society. The event featured presentations by Joachim von Amsberg, Senior Economist, World Bank; Stan Gacek, Director for the America, AFLCIO; and Otaviano Canuto, Executive Director for Brazil, World Bank.
Joachim von Amsberg contrasted the diversity and potential of Brazil with the social and economic obstacles. He noted that Brazils has one of the greatest levels of income inequality in the world and that the country’s persistent debt, and deficits have left it vulnerable to external shocks. He then noted the unprecedented public support for Lula in the election has paved the way for the government to pursue an agenda to reconcile economic stability with ambitious social progress. He then provided an overview of how the World Bank is planning a new Country Assistance Strategy (CAS) to support Brazil with these initiatives. The support calls for a more equity, sustainable human and social development, promotion of natural capital and local services, and a more competitive national market of improved investment and productivity.
Stan Gacek provided the perspective of the relationship between civil society and the Lula government. He noted that the Lula government’s engagement with civil society is a distinguishing feature. He then described systematic approaches undertaken to engage civil society including discussions with hundreds of groups to discuss national plans for food, security, and the sustainability of the Amazon. Gacek noted that there are many obstacle to sustaining the relationship between government and civil society including the election cycle which may usher in a new administration less inclined to work with civil society. He also questioned whether there will be enough resources to implement new policies, and commented on the difficulties of promoting civil society input on foreign policy and trade.
Otaviano Canuto commented on the macroeconomic perspective of Brazil and described the Lula government’s three-pronged strategy of macroeconomic responsibility, social responsibility, and institutional development.
|