Are Brazil’s political and economic systems at risk?

The confluence of economic troubles and political uncertainty in Brazil is a toxic cocktail that threatens not only the country’s laudable economic gains but its democracy.

Author

  • Christopher Sabatini

    Dr. Christopher Sabatini, is a senior fellow for Latin America at Chatham House, and was formerly a lecturer in the School of International and Public Affairs (SIPA) at Columbia University. Chris is also on the advisory boards of Harvard University’s LASPAU, the Advisory Committee for Human Rights Watch's Americas Division, and of the Inter-American Foundation. He is also an HFX Fellow at the Halifax International Security Forum. He is a frequent contributor to policy journals and newspapers and appears in the media and on panels on issues related to Latin America and foreign policy. Chris has testified multiple times before the U.S. Senate and the U.S. House of Representatives. In 2015, Chris founded and directed a new research non-profit, Global Americas and edited its news and opinion website. From 2005 to 2014 Chris was senior director of policy at the Americas Society and Council of the Americas (AS/COA) and the founder and editor-in-chief of the hemispheric policy magazine Americas Quarterly (AQ). At the AS/COA, Dr. Sabatini chaired the organization’s rule of law and Cuba working groups. Prior to that, he was director for Latin America and the Caribbean at the National Endowment for Democracy, and a diplomacy fellow with the American Association for the Advancement of Science, working at the US Agency for International Development’s Center for Democracy and Governance. He provides regular interviews for major media outlets, and has a PhD in Government from the University of Virginia.

After a decade of being a darling of the international business and diplomatic community, Brazil appears to have run off the rails. The confluence of economic troubles and political uncertainty is a toxic cocktail that threatens not only the country’s laudable economic gains but also its democracy.

After experiencing an average annual growth rate of 4.05 percent between 2004 and 2013, the South American giant experienced a recession in which the economy contracted by an average of 2.17 percent annually between 2014 and 2016. In the midst of this, and not coincidentally, Brazil’s political system entered a meltdown, first with the revelation of the massive Lava Jato corruption scandal, followed by the impeachment of then-President Dilma Rousseff over unrelated budgeting matter and last, a badly splintered presidential field and profound voter anger heading into the Oct. 17 congressional and presidential elections.

The leader in the crowded field of candidates is Jair Bolsonaro, a former army captain and member of congress who has promised an iron fist against criminals and has mocked women, the human rights community and LGBTQ citizens. Bolsonaro’s rise (he’s now leading the polls ahead of the first round of the election, with more than 20 percent of the vote) reflects widespread voter anger over the economic downturn, a contracting new middle class, a perceived corrupt political system and personal insecurity, with more than 63,800 murders across the country in 2017.

Bolsonaro’s lead in the polls was given a boost in August when Brazil’s constitutional court barred center-left former President Luiz Inácio Lula da Silva, who is serving a 12-year sentence for corruption, from running for election. After raging against his exclusion and rallying his supporters, Lula decided to remove himself from the candidacy in early September and allow his vice president — and former mayor of São Paulo — Fernando Haddad to run in his stead.

Prior to exiting the race, Lula was leading in the polls. According to surveys, his exclusion from the ballot may well lead many of his followers to stay home on election day in October or to vote by incorrectly marking their ballots to show their displeasure at the alleged politicization of the judicial system. Such action — should it happen — would demonstrate a lack of faith in Brazil’s 33-year-old democracy and potentially undercut the legitimacy of any winner. It would also likely result in no candidate gaining the necessary 50 percent of the vote to win the election outright, prompting a second round on Oct. 28. That would leave the election wide open, with the likelihood that more traditional political parties and leaders would rally behind the second-place finisher of the first round to prevent the election of right-wing populist Bolsonaro. That would require an odd coalition that, regardless of the candidate, would likely span environmental activists, moderate conservative parties, social democrats and evangelicals.

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