Re: Fernando Henrique Cardoso

Alain Pirotte (pirotte@info.ucl.ac.be)
Tue, 30 Jan 1996 09:02:28 +0100

For the policies of FHC, I think that we still have to wait and see.
They have succeeded in separating the rate of exchange from inflation.
Inflation is at about 40% since the beginning of the plano real, and
at the same time, the exchange rate of the real with respect to the
dollar has practically not changed. I am not an economist, but this
looks pretty strange to me and unstable. There will be some adjustment
some time.

Also, as has been done in many other places, they are separating
economic policies from social policies. They have spent an awful lot
of public money (is it 6 billion dollars?) on restructuring the
banking business. Such an amount of money would buy quite a few new
schools for example.

But I agree with Michael. The most bitter achievement of FHC and his
crew so far is that they have rescued the eternal political right of
Brasil that was on the brink of defeat in 1994 and is now back in shape
and in power.

Alain Pirotte
Belgium