Sunday 29 August 2010

POVERTY: Brazil and President Lula's approach

As Brazil's first working-class president, Lula has become a global symbol of the fight against poverty and the rise of emerging markets. The combination of market-friendly policies with expanded social welfare programs has given Lula the reputation of a moderate leftist, and his policy mix is seen as a model for much of Latin America.
-- Born in the poor semi-arid northeast, Lula moved with his family to Sao Paulo, where he shined shoes and worked as a delivery boy. He never finished high school but learned the metalworker's trade. He rose to national fame as a union leader who helped combat the 1964-1985 military dictatorship and in 1980 founded the leftist Workers' Party. He lost three presidential races before winning the October 2002 election.
-- His flagship welfare program, Bolsa Familia, has received international recognition as one of the most cost-effective ways to reduce extreme poverty and boost local economic activity. The program pays families a monthly stipend, provided they get regular medical check-ups and send their children to school.
-- Under Lula, Brazil's economy grew at its fastest pace in decades and some 20 million people emerged from poverty. He has given the central bank a free hand to conduct monetary and currency policy, but during the 2008/09 global financial crisis he stepped up government-centered economic policies, such as boosting state enterprises and low-cost loans.
-- Lula pursued a much more proactive foreign policy than any of his predecessors, acting as a mediator in regional conflicts, leading a peace-keeping mission in Haiti, and playing a key role in global trade and climate negotiations. Brazil helped foment a common front of developing nations to help counterbalance interests of the United States and Europe in the Doha trade round.
-- At home he is criticized for having turned a blind eye to corruption and becoming friendly with rogue leaders in Venezuela and
Iran. A charismatic, grandfatherly figure, Lula is one of the few global leaders with a popularity rating around 80 percent toward the end of his second term.
http://www.reuters.com/article/idUSN2427652420100824

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