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Brazil steps toward post-Lula era with Rousseff
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By Stuart Grudgings
SAO PAULO (Reuters) - Brazil's president-elect Dilma Rousseff vowed to step up the fight against poverty without forfeiting economic stability in Latin America's largest nation when she takes over from her charismatic former boss...
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Brazil's presidential-elect Dilma Rousseff gestures during a speech in Brasilia October 31, 2010.
Credit: Reuters/Bruno Domingos
By Stuart Grudgings
SAO PAULO |
Mon Nov 1, 2010 2:54am EDT
SAO PAULO (Reuters) - Brazil's president-elect Dilma Rousseff vowed to step up the fight against poverty without forfeiting economic stability in Latin America's largest nation when she takes over from her charismatic former boss on Jan 1.
Rousseff, who based her campaign on extending the legacy of outgoing President Luiz Inacio Lula da Silva, convincingly won her first election on Sunday as Brazilians put aside doubts over her character and voted for continued economic success.
The career civil servant must now form her transition team and cabinet as she emerges from the long shadow of Lula and prepares to govern the South American powerhouse as it faces challenges to its prosperity, including a painfully strong currency that is punishing exporters.
In a sign of the changing of the guard, Lula laid low after Rousseff's victory on Sunday, leaving her to bask in the moment she became the first woman elected to lead Brazil.
Rousseff, 62, paid homage to Lula in her victory speech, pledging to extend what she dubbed a "new era of prosperity." She also set out twin goals for her rule -- eradicating poverty while maintaining Brazil's hard-won economic stability.
"We cannot rest while there are Brazilians who are hungry, while there are families living on the street, while poor children are abandoned to their fate," the former leftist militant told cheering supporters in the capital Brasilia.
Rousseff, who will be sworn in on January 1, handily won Sunday's runoff election with 56 percent of the vote. Her rival, Jose Serra of the centrist PSDB party, took 44 percent.
Rousseff has yet to win the affection that Brazilians have for former metalworker Lula. But she ran a solid campaign in which she trumpeted Lula's achievements and faced down corruption allegations and questions over her religious faith.
"It's historic. Brazil elected a factory worker and now a woman. Dilma will be a mother for the Brazilian people," said Ivoni Klock, a government worker who celebrated in Brasilia.
BARRIERS TO SUCCESS
Despite pledging not to cut social or infrastructure spending, Rousseff went out of her way in her victory speech to stress her commitment to responsible economic policies and promised Brazil's government would not live beyond its means.
She was flanked by Wall Street darling Antonio Palocci, a former finance minister under Lula who is expected to be handed a top post by Rousseff and who may be put in charge of managing her transition team.
Financial markets have taken Rousseff's rise to the presidency in stride and are likely to react calmly on Monday. In the long term, though, investors worry that Brazil could suffer from Rousseff's insistence that the economy does not need major reforms to keep growing at a robust pace.
"We expect a continuation of the decent economic policies carried out by Lula, but unfortunately there seems to be no room for the structural reforms that Brazil needs to optimize public spending," said Alberto Bernal, head of research at Bulltick Capital Markets.
Rousseff will inherit an economy that is among the world's hottest emerging markets but which may struggle to maintain such lofty growth rates as it runs up against barriers such as its poor infrastructure and suffocating bureaucracy.
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Oct 31, 2010 11:31pm EDT
“Former guerrila leader”??? That’s not true at all! Reuters should checks their facts – although she was a member of a urban guerrila group during the military regime, nobody has ever acuse her of being a leader. She was only a lower operative.
Diogo
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