Luiz Inácio Lula da Silva

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Luiz Inácio Lula da Silva
39th President of Brazil
Assumed office
January 1, 2003
Vice PresidentJosé Alencar
Preceded byFernando Henrique Cardoso
Personal details
BornOctober 27, 1945
Caetés, Pernambuco
NationalityBrazilian
Political partyWorkers' Party (Partido dos Trabalhadores) - PT
SpouseMarisa Letícia Rocco Casa

Luiz Inácio Lula da Silva (pron. IPA: [lu'iz i'nasju 'lulɐ da 'silvɐ]), born Luiz Inácio da Silva on October 27, 1945, popularly known as Lula, is the 39th and current President of Brazil. Lula was elected to the post in 27 October, 2002 with 61% of the votes (run-off, and took office on January 1, 2003. His politics were traditionally very left-wing, but he has moved closer to modern social democracy[citation needed] since he became Brazil's most left-leaning president since João Goulart. He was elected in the same ticket as his vice-president, José Alencar, formerly from the center Liberal Party, currently from the Brazilian Republican Party. On 29 October, 2006, Lula was re-elected with more than 60% of the votes, extending his position as President of Brazil until the end of 2010.


Early life

Lula was born to a poor, illiterate peasant family in Caetés (then still a district of the municipality of Garanhuns) in the state of Pernambuco. His date of birth was registered as October 6, 1945, although he prefers to use the date which his mother remembers him being born on, being October 27. In Brazil it is not uncommon among rural provinces for there to be birth registration discrepancies.

Soon after Lula's birth, his father moved to the coastal city of Guarujá (in the state of São Paulo). Lula's mother and her 8 children joined his father in 1952, facing a journey of 13 days in a truck's open cargo area. Although their living conditions were better than in Pernambuco, life was still very difficult.

Lula had little formal education, quitting school after the 4th grade. His professional life began at age 12 as a shoeshine boy and street vendor. By age 14 he got his first formal job in a copper processing factory. Lula eventually studied for and received a high school equivalency diploma.

In 1956 his family relocated to the city of São Paulo, which offered greater opportunities. Lula, his mother and 7 siblings lived in a small room in the back area of a bar.

At age 19, he lost a finger in an accident while working as a press operator in an automobile parts factory. Around that time he became involved in union activities and held several important union posts. Brazil's dictatorship strongly curbed trade unions' acitivities, and as a reaction Lula's views moved further to the political left.

In 1969 he married Maria de Lourdes, who died together with their son while giving birth. In 1974 he re-married to Marisa, with whom he had three sons. He had a daughter out of wedlock this same year, with Miriam Cordeiro.

Union trajectory

In 1978 he was elected president of the Steel Workers' Union of São Bernardo do Campo and Diadema, the cities home to virtually all of Brazil's automobile manufacturing facilities (such as Ford, Volkswagen, Mercedes-Benz and others) and among the most industrialized in the country.

Prior to that, however, Lula had already filled various posts in the same union, and it was in that capacity that he traveled to the U.S., during the early nineteen-seventies, right in the middle of the Brazilian military dictatorship, in order to attend a qualifying course in trade unionism sponsored by AFL-CIO and ICFTU-ORIT the regional organization for the Americas of the anti-communist International Confederation of Free Trade Unions.That piece of information is to be found in the "Lula" entry of the reliable Dicionario Historico e Biográfico Brasileiro, a Who's Who of post-1930 Brazilian politics published and updated by Fundação Getúlio Vargas. The fact that it was somewhat embarrassing for Lula, in view of the later career radical slant, to have attended such a course, has led him to downplay that early contact with American trade unionism. To his rightist opponents as well — as underlining such a fact hampered their efforts to demonize Lula as a leftist — it was not expedient to have this episode remembered; therefore, it is hardly mentioned, although being public knowledge. In the late 1970s, Lula helped organize major union activities including several huge strikes. He was jailed for a month, but was released following protests. The strikes ended with both pro-union and pro-government forces dissatisfied with the outcome.

Political trajectory

On 10 February 1980 a group of academics, union leaders and intellectuals, including Lula, founded the Partido dos Trabalhadores (PT) or Workers' Party, a left-wing party with progressive ideas created right in the middle of the military dictatorship.

In 1982 he added the nickname Lula to his legal name. In 1983 he helped found the Central Única dos Trabalhadores (CUT) union association.

In 1984 PT and Lula joined the popular Diretas Já campaign, demanding a direct popular vote for the next Brazilian presidential election. According to the Brazilian 1967 Constitution, Presidents were then elected by both Congress houses in joint-session, plus representatives of all State Legislatures, but this was widely recognized as a mere sham as, since the military coup, only high-level military personnel (all retired generals) chosen after a closed military caucus had been so "elected". As a direct result of the campaign and after years of popular struggle, the 1989 elections were the first to elect a president by direct popular vote in 29 years.

In 1992 Lula joined the campaign for the impeachment of president Fernando Collor de Mello after a series of scandals involving public funds.

Elections

State visit to Mozambique, Nov. 2003. Lula aims to build Brazil's relationships with other Portuguese-speaking countries.

Lula first ran for office in 1982, for the government of the state of São Paulo. He lost, but helped his party to gain enough votes to remain in existence.

In the 1986 elections, Lula won a seat in Congress with a medium percentage of the votes. The Partido dos Trabalhadores (PT) helped write the country's post-dictatorship constitution, ensuring strong constitutional guarantees for workers' rights, but failing to achieve redistribution of rural agricultural land. Though participating on its development, Lula and his party refused to sign the new constitution when it was finished.

In 1989, still as a Congressman, Lula ran as the PT presidential candidate. Although he was popular with a wide spectrum of Brazilian society, he was feared as an opponent by business owners and financial interests, and was submitted to a thorough vilification by the media, as well as to election-rigging on a local level (sudden absence of busing facilities in places — mostly poor neighbourhoods — where Lula was expected to win, etc.) something which contributed significantly to his losing the election. The fact that his party was formed as a loose confederacy of trade unionists, grassroots activists, left Catholics, left-center social democrats and small Trotskyist groupings, although dampening overtly ideological issues, also earned him the distrust of better-off Brazilians precisely because of the ability of the PT to represent itself as the first working class mass movement organized on a grassroots basis. Conversely, Vargas' Brazilian Labor Party was mostly a top-heavy organization built around the top brass of the State-led trade-union bureaucracy.

Lula refused to run for re-election as a congressman in 1990, busying himself with expanding the Workers' Party organizations around the country. He continued to run for President in 1994 and 1998. As the political scene in the 1990s came to be under the sway of the real monetary stabilization plan, which ended decades of rampant inflation, Lula lost in 1994 (in the first round) to the official candidate, former Minister of Finance (and therefore responsible for the real) Fernando Henrique Cardoso, who ran for re-election (after a constitutional amendment ended the long-held rule that a president could not have a second term) in 1998, also having a first-round win.

In the following 2002 campaign, Lula forswore both his informal clothing style and his platform plank of conditioning the payment of Brazil's foreign debt to a prior thorough audit. This last point had worried economists, businessmen and banks, who feared that an even a partial Brazilian default along with the already ongoing Argentine default would have a massive ripple effect through the world economy.

Lula became President after winning the second round of the 2002 election, held on October 27, defeating the centrist candidate José Serra of the Partido da Social Democracia Brasileira (Brazilian Social Democracy Party, PSDB)

On October 1, 2006, Lula narrowly missed winning another term outright in the first round of elections. He faced a runoff on October 29 which he won by a substantial margin. [1]

Lula's government

Political orientation

From the beginning of his political career to the current days, Lula has changed some of his original ideals and moderated his positions. His party moved progressively from more radical views to a modern social democratic[citation needed] political position. Instead of deep social changes as proposed in the past, his government chose a reformist line, passing new retirement, tax, labor and judicial laws, and discussing a university reform. Some wings of the Worker's Party disagreed with these changes in focus and have left the party to form dissidences like the Workers' Cause Party, the United Socialist Workers' Party and the Socialism and Freedom Party.

Significant laws

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Here are some significant laws passed by Lula's administration, with his support.

  • Social Security Reform of the Civil Service: Passed in 2003, one of the first laws passed by Lula's administration. It aimed to guarantee retirement payments for civil servants for twenty years. In Brazil, civil servants and private sector employees are subject to different retirement and social security legislations. Critics say the law decreased the rights of civil servants; the main argument of critics is that Lula and his party were for years against any initiative about this matter.
  • Tax Reform: Partially passed in 2003.
  • Judiciary Reform: Partially passed in 2004.
  • Bio-security Law: Regulates activities related to the use of genetically modified materials and other related matters, such as embryonic stem cell research;
  • University Reform: Being discussed.
  • Disarmament Law: A gun control law. Voted by Congress on October 23 2003, it restricted access to firearms to most private citzens, requiring psychological profiling and police screening upon the purchase of personal defence firearms, as well as severely restricting the right to carry one's gun outside one's home. Yet, an additional postscriptum to the law, which proposed a complete banning of retail trade of firearms (masterminded by Luiz Eduardo Greenhalgh, Worker's Party attorney and house representative) was rejected by the electors in the referenden on the subject in 2005. (See Estatuto do Desarmamento (in Portuguese) for further details).

Social projects

Lula da Silva put assistencial programs at the top of his agenda during his campaign and since his election. Lula states that one of the main problems in Brazil today is hunger.[citation needed] In order to tackle this issue, the Lula government devised Fome Zero (Starvation Zero). This program distributes money to selected regions and cities whose inhabitants suffer severe difficulties. Fome Zero has a governmental budget and accepts donations from the public and international community.

Lula with Bono. The U2 singer donated a guitar to Fome Zero program.

There is some reasonable criticism about the program's effectiveness and need. According to research conducted by IBGE in 2004, 38.8 million Brazilians are overweight (about 40% of the adult population) and nearly 10 million are obese, with only 3.8 million people being undernourished. This study gave critics ammunition with which they could call overeating a greater health problem than malnourishment in Brazil. [2] According to FAO, however, Brazil has 15.6 million malnourished people — a "plague on both houses" situation very common in medium income countries like Brazil. Another social program is "Bolsa Família" (Family Dole), which unifies many other previously existing government social welfare schemes created by previous governments. Its goal is to mitigate poverty and hunger and it consists primarily of financial aid to families with monthly incomes below R$100.00 (around US$40 as of 2006). It requires that the families send their children to school and keep their mandatory personal vaccination-booklets duly updated. While this idea may seem commendable, a large number of cases have shown heavy inefficiency on the selection and update of family situations, delivering sometimes larger resources for those who do not need them.

Economy

As Lula gained strength in the run-up to the 2002 elections, the fear of drastic measures (and comparisons with Hugo Chávez of Venezuela) increased internal market speculation. This led to low demand for sovereign bonds, a rise in the inflation rate, speculative attacks on the Real, and a rise in sovereign risk factor of Brazil's bonds by more than 2000 base points.[clarification needed][citation needed] After his election, the market anxiously awaited the nominations of his cabinet.

The single most important member of Brazil's economic cabinet is the Minister of Finance (Ministro da Fazenda, in Portuguese), who is largely responsible for all fiscal decisions. Brazil does not have an independent central bank, leaving to the finance minister to decide the degree of autonomy accorded to the bank. This created a finance minister who was responsible for not only fiscal policy, but could influence monetary policy as well.

The minister chosen by Lula was Antônio Palocci, a physician and former trotskyst activist who had recanted his far left views while serving as the mayor of the sugarcane processing industry center of Ribeirão Preto, in the State of São Paulo. Palocci had raised himself as one of the key figures in Lula's team of advisers for his election campaign. Although Palocci had Lula's personal backing, his absence of prior upbringing in Economics and his lack of relief as a national political figure didn't give him enough of the political clout necessary in order to win the confidence of the international finance markets in the soundness of his future policies.

Lula, therefore, also chose Henrique Meirelles, a prominent market-oriented economist, for President of the Brazilian Central Bank, the Brazilian monetary authority. Meirelles was eventually approved by the Brazilian Senate. Well known to the market, both at home and internationally, Meirelles had previously been a CEO at BankBoston. Meirelles had been elected to the Chamber of Deputies in 2002 as a member of the PSDB (opposition to President Lula's party), but had to resign that position before becoming President of the Central Bank.

Lula with Bill Gates at the World Economic Forum

Lula and his cabinet followed in part the ideals of the previous government, by renewing all agreements with the International Monetary Fund (IMF), which were signed by the time Argentina defaulted on its own deals in 2001. His government achieved a satisfactory primary budget surplus in the first 2 years, as required by the IMF agreement, exceeding the target for the third year. In late 2005, the government paid off its debt to the IMF in full, two years ahead of schedule. [3]

Lula invested in international commerce to jump-start the Brazilian economy. He has signed political and economic treaties with countries like Russia, China and South Africa.

Three years after the election, Palocci had slowly but firmly gained the market's confidence, and sovereign risk indexes fell to around 250 points. The government's choice of inflation targeting kept the economy stable, and was complimented during the World Economic Forum of Davos in 2005. However, since 2003 to that point Brazil had dropped 11 positions on the Forum's Growth Competitiveness Index ranking [4] [5], something which is often attributed to the high interest rates which stemmed from the inflation-targeting system.

The Brazilian economy was generally not affected by the Mensalão scandal. In early 2006, however, Palocci had to resign as finance minister due to his involvement in an abuse of power scandal which stemmed from the Mensalão Scandal. Lula's following (and current) finance minister was Guido Mantega, a member of Lula's party (PT) and an economist by profession. Mantega, a former marxist who had written a Ph. D thesis (in Sociology) on the history of economic ideas in Brazil from a Left viewpoint, is presently known for his criticisms of high interest rates- currently the biggest of the world, enforced by Pallocci's Orthodox, monetarist views on economy-, which satisfied business (specially banking interests) interests, while making the finance market apprehensive, and slowing down the growth of the Brazilian economy, which grew much below the less optimistic expectatives, being the country which grew the less in Latin America during the last four years apart from Haiti. For the current term, Lula has promised more heterodox actions on the economy, aiming for the growth that didn't happen in the previous term.

Foreign policy

File:Bush Lula133678.jpg
Lula with George W. Bush.

According to the periodical The Economist (2 March 2006), Lula has a pragmatic foreign policy, seeing himself as a negotiator, not an ideologue. As a result, he has befriended both Venezuelan President Hugo Chávez and U.S. President George Bush. Leading a large and competitive agricultural nation, Lula generally opposes and criticizes farm subsidies, and this position has been seen as one of the reasons for the walkout of developing nations and subsequent collapse of the Cancun World Trade Organization talks in 2003 over G-8 agricultural subsidies. Brazil assumed an important role in international politics and is becoming a regional leader in a fertile dialogue between South America and developed countries, especially the U.S. It played an important role in negotiations in internal conflicts of Venezuela and Colombia, and concentrated efforts on strengthening MERCOSUL/MERCOSUR.

During the Lula administration, Brazilian foreign trade has increased dramatically, changing from deficits to several surpluses since 2003. In 2004 the surplus reached US$ 29 billion due to a substantial increase in global demand for commodities (especially from China). A record surplus is expected in 2005, despite the relatively high value of the real against the US dollar.

Lula's also supports the implementation of the Tobin tax on international financial transactions to aid developing nations. Brazil has also sent troops and leads a peace keeping mission in Haiti to show its resolve as a global player and to help its bid for a permanent seat on the United Nations Security Council.

Corruption scandal

A burgeoning corruption scandal in mid-2005 threatened Lula's government. After Brazilian Labour Party (PTB) leader Roberto Jefferson was implicated in a bribery case, he accused the Worker's Party in June of paying members of congress illegal monthly stipends to vote for government-backed legislation. In August, campaign manager Duda Mendonça admitted that he had used illegal money to finance Lula's electoral victory of 2002. In November 2005, Lula's former chief of staff was expelled from Congress due to his involvement with the scandal. In April, 2006, Lula's finance minister Antonio Palocci resigned from his post due to his actions during the scandal's investigation. In the same month congress released the conclusion of its investigation on the scandal. The report confirms the existence of the bribery scheme and includes a list with 123 names of involved persons, including politicians, their aides, bankers, businessmen, entrepreneurs and State companies directors. President Lula is only briefly mentioned, with the only evidence of his knowledge of the scheme being Congressman Roberto Jefferson's testimony of having informed the president. [6]


Re-election

On June 24, 2006, there was an official announcement that Lula would run for a second term as president, having José Alencar once more as his vice-president if reelected. Opinion polls around the time of the election showed that — despite the corruption scandal that stormed his cabinet and forced most of its key members to resign their posts, and the recent vandal onslaught against the Congress building carried out by an organisation affiliated with Lula's party and led by a personal friend of his [7] [8].

Lula's race for re-election was decided in the second-round run-off on October 29. Despite a narrow election loss in the first round, Lula's popularity increased significantly and he was re-elected by a 20 million votes margin on the opposition candidate, Geraldo Alckmin.

See also

External links

Economy

Lula's election and foreign policy

Interviews

Preceded by President of Brazil
2003 –
Succeeded by
Incumbent


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