Political
Realism Doesn't Mean
We Ditch Our Dreams
By
Luiz Ignacio Lula da Silva
Guardian
Unlimited
23 July, 2003
Even
though it grew at very high rates in the past, Brazil still has one
of the most unequal distributions of income in the world. This situation
must be reversed. A lack of economic and social democracy threatens
democracy as a whole. The values of social solidarity are in decline.
State institutions, politics and politicians are viewed with increasing
hostility.
This state of affairs
has become more acute over the past two decades as a result of recession
or stagnation. Since 1990, Brazil - as with other Latin American countries
- has been made into a laboratory for disastrous economic recipes that
damaged its productive capacity, dismantled the fabric of society, weakened
the state's ability to regulate and increased its vulnerability to outside
pressures.
The Brazilian Workers'
party (PT), in alliance with others, is now putting in place a project
that combines economic growth with income redistribution, deepens political
democracy and asserts the sovereignty of our country in the world.
We inherited a heavy
burden. The currency suffered a sharp devaluation against the dollar
and international credit dried up. The new government managed to overcome
this situation and confound forecasts of economic collapse. Fiscal discipline,
high interest rates in the short term, an aggressive export policy and
tax, and social security reform have helped revive both the economy
and national and international confidence.
A broad social and
political coalition was formed, bringing together state governors, parliament,
the trade unions, the business community and other sectors. There are
times when only a major coming together of wills can overcome situations
of dire crisis.
As a result, the
exchange rate has stabilised, inflation has dropped below 9%, the country's
credit rating has improved, the debt burden has fallen. Export credits
have been re-established and this year the balance of trade will run
a $20bn surplus. In six months, conditions for a return to growth and
a boost to employment have been achieved.
The commitment to
fashion a new economic model calls for forceful policies, such as our
Hunger Zero and First Job programmes. Fighting hunger includes both
structural measures - in support of small farmers, education, health,
housing, water and sewage treatment - and emergency relief to those
suffering from malnutrition.
The social and political
conditions are now in place to launch a sustainable cycle of development.
That will require the enlargement of the internal market, particularly
for mass consumer goods, by integrating into it millions of excluded
citizens. Agrarian reform is also fundamental if the Brazilian economy
is to be rebuilt. And it will play a crucial role in making the country
fully democratic.
The state must also
act decisively to carry out its regulatory role in the economy. The
loudly proclaimed achievements of globalisation have failed to materialise,
made worse by the climate of recession throughout the world. The advice
offered by international organisations, and slavishly followed by many,
has brought about the deindustrialisation of vast expanses of our planet.
The rhetoric of
free trade contradicts the protectionist practices of the rich countries.
The uncontrolled flows of financial capital can destabilise a country
in a matter of hours. Hunger, unemployment and social exclusion have
reached alarming proportions in developing countries. Indeed, there
are huge pockets of poverty even in wealthy societies.
This state of affairs
demands a new kind of foreign policy to help build a new world order
that is both fairer and more democratic. An end must be put to international
financial anarchy and the pressures it exerts on developing economies.
It is essential that both overt and covert protectionism which marginalises
poor countries be done away with.
We are committed
to the peaceful settlement of conflicts, defence of multilateralism
and a world order that respects both human rights and international
law. That demands reform of multilateral bodies, including the UN and
its security council; indeed, Brazil has claimed the right to a seat
as a permanent member of the council.
The main flashpoints
of international tension result from inequalities that prevail in the
world, with its billions of unemployed and hundreds of millions that
go hungry and ill, with its unfair trade regime. Against this background,
South America has become the top priority of the new Brazilian foreign
policy, with an agenda for a customs union, economic integration and
a future common currency
- as well as to
pave the way for an elected regional parliament and a common regional
foreign policy.
Brazil, the country
with the world's second largest black population, has also reinvigorated
its ties to Africa and re-engaged with the Arab world. The creation
of the G3 group by Brazil, India and South Africa represents a decisive
step in strengthening south-south relations, while we have forged a
mature relationship with the US and Europe.
The Brazilian experiment
is not intended as a model. The Workers' party that currently governs
the country was forged around a specific social and political alliance.
This young leftwing party rose out of the working classes during the
declining years of the military regime.
Its appearance in
1980 coincided with the predicaments faced by social democracy and the
decline of the USSR and the countries of the communist bloc. It also
coincided with the conservative wave that swept the world and even contaminated
segments of the left.
Its programme blended
economic and social demands with calls for political freedom. It had
the support of broad segments of the middle class, of youth and of new
social movements. The PT defines itself as a mass leftwing socialist
party that is democratic in its internal organisation. The party helped
rebuild the trade union movement and has given an impetus to social
struggles throughout the country, as well as playing an important role
at local government level, where it has pursued anti-corruption policies.
The experience of
government has now renewed the PT. And the ties between state and society
have been revisited by the adoption of initiatives, such as the participatory
budgets, that allow citizens' oversight of public policies.
Courage is needed
to implement an ambitious reform programme that can immediately improve
the living conditions of the majority of the population. However, such
changes must be understood as only one aspect of a broader process of
social transformation. Political realism must not be taken as a justification
to abandon the dreams that lie at the foundation of the thinking of
the left. Neither can it mean disenfranchising the votes of more than
52 million Brazilians.
Luiz Ignacio
Lula da Silva is
president of Brazil and honorary president of the Workers' party. A
longer version of this article will be published on www.brazil.org.uk