Brazil's President Dilma Rousseff greets former President Luiz Inácio Lula da Silva, her political mentor and ally, during a campaign rally for the Workers’ Party (source: dpa)

As Brazil’s Rousseff reels from crisis, opportunity for reform emerges

Brazil is facing its worst crisis in 70 years. Its economy is mired deep in a recession that will last at least until 2017. The political scene is in disarray, with a president who was re-elected just a year ago now chastened by approval ratings in the single digits. No opposition leader or party is considered a viable replacement for the Workers’ Party, which has held power since 2003.

Fear pervades the business community – not only due to the country’s macroeconomic woes but also because of an anti-graft investigation by federal police that resembles Italy’s ‘clean hands’ investigation of the 1990s. The operation is dramatically reshaping the traditionally venal relationship betwee...

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 Carlos Eduardo Lins da Silva
President Lula decided to introduce stimulus measures that proved effective initially, but then became progressively more harmful over time. Their negative effects were exacerbated by ‘creative accounting’ methods
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