AP

Brazil’s da Silva forms mixed economics team for transition

Nov 8, 2022, 5:10 PM | Updated: 6:02 pm

Brazil's Vice President-elect Geraldo Alckmin, who is heading the transfer of power to Luiz Inacio ...

Brazil's Vice President-elect Geraldo Alckmin, who is heading the transfer of power to Luiz Inacio Lula da Silva, speaks during a ceremony naming members of the transition team, at the Banco do Brasil Cultural center, in Brasilia, Brazil, Brazil, Tuesday, Nov. 8, 2022. (AP Photo/Eraldo Peres)

(AP Photo/Eraldo Peres)

BRASILIA, Brazil (AP) — President-elect Luiz Inácio Lula da Silva’s transition added a team of economists Tuesday that includes at least two members likely to allay market worries about potential business and financial policies the incoming leftist leader might be considering.

Investors look favorably on André Lara Resende and Pérsio Arida, conservative economists who were among the architects of the Real Plan in the 1990s that implemented a new Brazilian currency and tamed hyperinflation.

The other two economists on the transition team are Nelson Barbosa, who was finance minister under President Dilma Rousseff of da Silva’s Workers’ Party, and Guilherme Mello, an economics professor who has long been known as the Worker’s Party economist.

“They don’t have opposing views. They’re complementary,” Vice President-elect Geraldo Alckmin told reporters during the announcement in the capital, Brasilia.

Alckmin said people involved in the transition won’t necessarily join the administration after da Silva is inaugurated Jan. 1 for his third term as president — he also held the office in 2003-2010.

Still, those chosen to work in the transition give an idea of how da Silva, who is universally known to Brazilians as Lula, intends to conduct economic policy.

His first two terms coincided with a surge in demand for commodities that helped spur a Brazilian economic boom and filled the government’s tax coffers. This time, da Silva will face a more adverse global economy, fierce political opposition and limited room to maneuver with a strained government budget.

Among the most pressing challenges is making good on his pledge to sustain a vast welfare program and boost spending on health and education without exceeding a constitutionally imposed spending cap. He also needs to reinvigorate an economy that has seen either weak growth or declines throughout most of the last decade.

“Lula has understood he needs to have a range of strengths much wider than only the center-left,” said Eduardo Grin, a political analyst at the Getulio Vargas Foundation in Sao Paulo. “Lula wants divergent opinions in order to make his own decisions.”

In recent days, da Silva’s transitiion team had floated several names for the economic coordinators that stirred concern in financial markets.

One was Fernando Haddad, a former Sao Paulo mayor and one-time presidential candidate with an academic background as a law professor who has never worked on economic matters.

The other, Guido Mantega, was finance minister under both da Silva and Rousseff and is looked at by many critics as the one responsible for Rousseff’s economic measures that led Brazil into a financial crisis.

Although Mantega will not be a part of the economics team, he will work in the transition in another area, Alckmin said, without giving any specifics.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Arizona will not approve new housing construction on the fast-growing edges of metro Phoenix that r...

Associated Press

Arizona Senate passes plan to manage rural groundwater, but final success is uncertain

A plan to manage rural groundwater passed the Arizona Senate amid concerns about the availability of sufficient water for future generations.

15 hours ago

A woman pauses while shopping at a Kohl's store in Clifton, N.J., Jan. 26, 2024. On Thursday, Feb. ...

Associated Press

Federal Reserve’s preferred inflation gauge picked up last month in sign of still-elevated prices

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month.

1 day ago

This undated image provided by Mikel Desmond shows his brother Marcus Tessier, who turned up in Dem...

Associated Press

Missing teen with autism found in New Mexico, about 200 miles away from his Arizona home

A missing teen with autism has been found in New Mexico — about 200 miles away from his home in southern Arizona.

1 day ago

A newly released report on last year’s fatal crash involving a pickup truck and a group of bicycl...

Associated Press

Report suggests steering of vehicle that caused fatal Goodyear bicycle crash worked fine

A new report on last year’s fatal Goodyear bicycle crash has cast doubts about the driver’s claim the vehicle’s steering locked up.

2 days ago

Israeli Embassy...

Associated Press

US airman dies after setting himself ablaze outside Israeli Embassy in Israel-Hamas war protest

An active-duty member of the U.S. Air Force has died after he set himself ablaze outside the Israeli Embassy in Washington, D.C.

4 days ago

Biden and Trump to visit Mexico border Thursday immigration...

Associated Press

Biden and Trump both plan trips to the Mexico border Thursday, dueling for advantage on immigration

President Joe Biden and former President Donald Trump will make dueling trips to the U.S-Mexico border on Thursday.

4 days ago

Sponsored Articles

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

Brazil’s da Silva forms mixed economics team for transition