One thing that Cardoso did, that he does not get enough credit for is taming inflation. None of what Lula has achieved could have been accomplished without controlling inflation.
Also, Cardoso established the Bolsa Escolar, which Lula built upon with the Bolsa Familiar. Some privatizations made excellent sense. Embratel was a crap company and phone service in brazil was expensive and a nightmare. In addition, the privatization of CVRD was smart. More people work for Vale (its new name) than worked for CVRD.
I can only partly agree. Certainly, Cardoso's plan did reign in appalling inflation, and in that, he does deserve credit. However, while it was a far cry from the inflation of the early 1990s, the damage he did in 1998 when he insisted that the real was doing fine while he campaigned, only to nearly double it in value (bringing a rather sudden surge of inflation that, while nowhere near 1990s levels) had really negative effects that are only now really being overcome.
As for the privatizations, I agree that the companies were crap, but I'm not sure that privatization necessarily had to be the step taken. Previous administrations had let inefficiency and corruption run rampant in state-owned companies; while privatization was one solution, I remain completely unconvinced that Cardoso could not, had he chosen, completely revamped state-owned industry and business, as Lula has done. Streamlining, reducing corruption, and investing better very well may have worked equally well, and privatizing things like the Light company just led to a 30% increase in light bills, all while France (where the Brazilian Light company's buyer was based) was able to reduce their bills by 30%, effectively making Brazilians pay for French power.
As problematic as neo-liberalism is in general, Cardoso's brand was particularly loathesome, as he also let public universities absolutely languish, refusing to pay their bills for electricity or perform basic maintenance functions, in the hopes of privatizing them (as well as Petrobras, which he gave similar treatment). The way in which Lula has countered this by investing smartly and cutting back on inefficiency and bureaucratization I think at best calls into question the privatizations that Cardoso declared were "essential," and really clouds his legacy. Yes, he did end the inflation, but I think the paths he chose beyond that were at best questionable, and in the worst cases, deplorable (in what is admittedly an ideological viewpoint on my part).
The point about American reporters interpreting political parties' ideological valence through the restrictive lens of "acceptable American political discourse" is a particular hobbyhorse of mine, so I'm always happy to see someone else share my irritation. Any reasonable political spectrum would, for example, show the Republicans as a rightist party and the Democrats as center-right, but American news media simply refuses to acknowledge that fact and simplemindedly refers to even very moderate Democrats as "leftist." I assume (and you confirm) that the problem is only compounded when they try to explain how politics works in other countries with a more vigorous and diverse political culture.
I agree with you about 1998. It was stupid to keep the real hooked to the dollar for that long, especially when most everyone agreed that it was heavily overvalued and when it was finally unhooked, there were a couple of bumpy months, but things soon stabilized. Blowing so much of the hard currency reserves to prop up the real was also unwise.
As for power, CEMIG is still owned by Minas Gerais and is very efficient. Yes it would have been a mistake to privatize Petrobras, but CVRD and EMBRATEL needed the infusion of private capital to fix infrastructure and expand.
The one interesting thing that I have brought up time and again is the issue of pensions. Cardoso did want to change the public pension system, but the PT fought him tooth and nail. Of course, Lula did change them when he arrived in the Palacio do Planalto.
Public universities in Brazil should be means tested. Those who can afford to send their kids through expensive pre-vestibular programs should have to pay.
More posts like this sir.
The three things that Lula did that I admire above all are as follows:
1.) Pursued the cotton subsidy issue with the WTO on behalf of the small African nations.
2.) Sought trade deals outside of North America.
3.) Confounded his knee-jerk critics by being pragmatic and keeping a cool head.
My biggest disapointments:
1.) Failure to innovate regarding generation of electricity. The overreliance on hydroelectric power is bad policy.
2.) Lack of interest and vigor in protecting environmentally sensitive areas. Marina Silva shoud have been one of his greatest supporters and he should have been one of hers.
3.) Cutting José Dirceu loose a lot earlier.
I definitely agree with your surprises - he has done an outstanding job by anybody's standards in those areas (and the fact that the criticisms against him are personal more than anything - "He used to be a laborer!" or "He didn't go far left enough for me!" aren't exactly high political rhetoric just demonstrates how well he's done). And I agree with your first two disappointments with Lula - environmental issues (and I think 1 and 2 both are) are where he has definitely been the weakest, I think.
And I presume you mean "not" cutting Dirceu loose? Or did you think he cut him loose TOO early?
And as for the PT fighting him, that's common. I found it even dumber when PSDB, which had trumpted the CPMF tax (see here: http://alterdestiny.blogspot.com...goes-down.html)
on bank accounts for 10 years after Fernando Henrique Cardoso instituted it and then made it long term, complained about the horrible things it was doing as soon as Lula sought to renew it as president. The worst kind of partisan politics from the PSDB, too.
I did mean not cutting Dirceu loose earlier.
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