Brazil: Between a spurious Supreme Court and an incredible legal and economic recovery.
Brazil has had an incredible recovery this first year under the new presidency.
Interest rates dropped to 5% per year, the lowest rate in all of its history.
Petrobras, Latin America’s largest oil company, has recovered from all the corruption tragedies that have struck the state-owned company over the past 22 years, with hundreds of billions of dollars diverted, making a profit of about $ 4 billion, the best result ever, a Brazilian company in the stock market since 1986.
Eletrobrás, another state-owned company, began its privatization process, with a profit of $ 1. 5 billion at the beginning of this second half.
Banco do Brasil, which was almost decimated by political funding, has returned to profit, with a net worth of over $ 1 billion to date.
It is noteworthy that these three state-owned companies together in 2015, during Ms. Dilma’s government, together had a loss of about $ 15 billion.
Civil construction raised more than $ 1 billion for the construction industry that is expected to bring recovery later this year.
Milk and egg production have broken historic records. Brazil has produced 33.8 billion liters of milk this year, with 1.6% more. It is worth considering that it is coming out of a significant drop of 1.1% in 2017.
The number of eggs has already exceeded 4 billion, which identifies another historical record. To boost the economy, the government has taxed 532 computer products, previously protected to give advantages, in general, companies linked to previous governments. Tourism again attracts visitors to Brazil, with record revenues of $ 35 billion, which generated about 25 new jobs in June and July alone.
With the fight against corruption in the INSS (public health service) saved more than $ 1 billion in the first months only the so-called “fine-haired” – deep diving investigation. In the criminal area, under the leadership of current Justice Minister Sergio Moro, we have really extraordinary numbers, even with Congress boycotting the country’s new criminal legislation.
A record seizure of cocaine, which reached 60.7 tones so far in 2019, which we can compare with about half seized in 2018 (38.5) and if we look at the numbers from 2013 to 2017, the average was barely tangible tons, showing a real action by the current government in the repression against a “strange” connivance of the previous governments, which dominated the clear political relationship with drug trafficking.
In the first quarter of this year alone, theft to financial institutions fell 41%, cargo theft 38% and vehicles 30%.
Only violent deaths in the first quarter also fell by 22%. In terms of murders, in the first half fell from 27,371 the year before to 21,289 this year.
From a social point of view, a government has never been unaware of health. For example, it granted a lifetime pension to children who had the misfortune of contracting microcephaly, a disease that spread in Brazil due to the inertia and incompetence of previous governments. There is still a long way to go to recover these more than two decades of sadly corrupt socialist governments.
Tax, public administration and other reforms will have to break away from corporate and highly oligopolized sectors. These are major challenges to be faced.
Surely the great obstacles are in a politicized Supreme Court that changes the constitutional understanding according to the convenience of the presidents who nominated them and an extremely corporative Congress, with great vices of the past, with the habit of “negotiating” each issue, for the benefit of the parliamentary.
These are problems that unfortunately occur in developing countries in Latin America but the outlook is bright in the medium term unless a relapse occurs in Argentina, which is unlikely because the economy tends to improve.
