Newly re-elected President Dilma Rousseff must really be feeling like she's trying to bail out the boat with a leaky bucket. She won't even be inaugurated for her second term until January and she faces one crisis after another.
As soon as the election results were announced, which by the way was the closest second term margin in this country's history, people began calling for her impeachment. The vote was split almost 50/50 with somewhere in the area of 2 million votes separating the two candidates. It's far from being the "victory" she claims it to be, never has a president had to govern a country that is so divided and so many of its citizens feeling ignored, powerless and voiceless. She really is going to have to start looking at this narrowest of margins as a clear and strong message from the Brazilian people that she is going to have to find a path to reconciliation and real change.
Job creation in this country is at its very lowest since 1999, this alone is a shocking manifestation of what the uncertainty about the political future of this great nation is doing to the economy.
Scandals abound on every side. After a decade of the exercise in futility bringing the corrupt politicians of the "Mensalão" to trial, only one year after their convictions 7 of the worst offenders are not even in prison any longer, they're under house arrest in their posh mansions. Now that's real punishment. The rest of them, with the exception of the politician who was the whistleblower on the whole sordid scheme, are about to be given a form of "day parole". It's truly disgusting.
The top executives of state-owned Petrobras and several extremely large and powerful companies are presently under arrest and being investigated by the Federal Police for a corruption and bribery scheme involving billions of Reais (BRL). Petrobras shares nosedived the day after the election. Minister of Justice José Eduardo Cardozo is putting on a brave face and saying that no effort will be spared to investigate the "individuals" and bring them to justice, but what about the INSTITUTION? Is that going to be untouchable? He also stated that the whole situation is the just the opposition parties trying politicize it and to turn it into a "third round of the election" whatever the Hell that's supposed to mean.
As if all this isn't bad enough, no less than 15 of the Ministers who made up the government's cabinet, have submitted their resignations en masse. We're talking about career politicians here... walking away and washing their hands of this government. Who is going to mind the store in the future, a bunch of rookies who still aren't dry behind the ears in political terms????
Don't get me wrong here, I'm not saying that the opposition candidate for president would be any better. They're all the same, you could elect any of them president in this country and the ship is still sinking; it doesn't matter a damn who's at the helm.
In terms of how all of this is going to affect expats here in Brazil it is really too soon to tell, but clearly we too are going to be in for a very rocky ride for the foreseeable future. With the slump in the economy over the past couple of years I'm sure that foreign investment in Brazil is going to start drying up, especially if the present bureaucracy surrounding investment doesn't change and the already ultra-complex tax laws aren't relaxed a bit. The real estate bubble in this country is about ready to burst, which will also be disastrous. New car sales are falling off and car manufacturers are laying off employees in record numbers. None of this bodes well for the Brazilian economy.
Personally, I don't see too many reasons to be at all optimistic about the future of Brazil over the next 4 years. The only thing that I can hope for is that we're getting so close to the bottom of the well that the only way to go from here will be up.
Cheers,
William James Woodward, Expat-blog Experts Team