Brazil and Lula, 2005: crisis,corruption and change in political perspective

The election of Lula (Luiz Inácio Lula da Silva) as president of Brazil in October 2002 broke new ground: for the first time in Latin America a working man was directly elected as president of the Republic. Lula also came to power as leader of the Partido dos Trabalhadores, the Workers' Party, with its close links to ‘new unionism’, ‘liberation theology’ and mass social movements. The possibility of his election caused strong market reaction but, by the start of 2005, Lula and his government had reassured their critics on the right. They had also dismayed many supporters on the left, including members of the pt, by failing to tackle urgent social problems. Even so, on the basis of a strong economic performance and support in the polls, Lula seemed assured of re-election in October 2006. Suddenly, in May 2005, came the first revelations of a corruption scandal, leading to a crisis described as ‘the most extensive in the whole history of the Brazilian republic’. Lula lost some of his closest ministerial colleagues, and the pt most of its senior officers, with the threat of impeachment for Lula himself. That crisis is still unresolved, but has already severely damaged the pt, virtually paralysed government and made Lula's re-election seem ever more unlikely. This paper seeks to set the current crisis in wider political perspective and to reflect on its possible impact on a political system which in 2002, and even in 2004, gave evidence of supporting a robust and stable democracy.