Lula first came to power as Brazil’s president in January 2003 (see article below). What are the likely consequences of a renewed Lula PT government?
While the “progressive” and “Leftist” labels prevail, key political appointments have already been approved by the Washington Consensus. De facto, it is a centre-rightist government “with leftist characteristics”.
In this regard, it is important to reflect on how Brazil’s Workers Party (PT) leadership was coopted by Washington and Wall Street from the very outset prior to the 2002 elections.
In January 2003, “Leftists” meeting at the World Social Forum (WSF) in Porto Alegre applauded the inauguration of Luis Inacio da Silva as a victory against neoliberalism, without acknowledging that Lula’s PT had embraced the demands of Wall Street and the IMF.
In the words of IMF Managing Director (April 2003)
“the IMF listens to President Lula and the economic team”.
But that team was appointed to serve the interests of US corporate capital including Brazil’s external creditors. In August 2002, the composition of Lula’s cabinet had already been endorsed by the Washington consensus.
Lula had chosen a prominent Wall Street banker to head Brazil’s Central Bank, i.e. to act as a dollarized Trojan Horse on behalf of the U.S. banking cartel. Henrique de Campos Meirelles, former president and CEO of FleetBoston (Brazil’s Second largest external creditor after Citigroup) was duly chosen to head Brazil’s Central Bank. In turn, the State investment bank Banco do Brazil had been handed over to CitiGroup.
The conduct of the nation’s finances and monetary policy were in the hands of Wall Street, the IMF-World Bank and the US Federal Reserve. In August 2002 at the height of Brazil’s election campaign: