Tuesday, October 9, 2018

Brazil, the security vote

The results of the first round are in, and they represent a major rupture with the past.  While many commentators stressed that these reflected a rejection of traditional politicians tainted by corruption, I would suggest that, more importantly, these elections are a cry, or a scream, for security.

No doubt Brazilian voters sent many political tenors home, including Dilma Rousseff, a former president, Eduardo Suplicy, a co-founder of the PT; of nine returning candidates for the senate who had been under a cloud, only three were reelected.  Voters desire to clean up Congress triggered an historical turnover, with more than 47% new faces coming in.
 
The door was also shown to moderate presidential candidates who were not viewed as corrupt and who had fared well in prior national campaigns: Geraldo Alckmin, a former governor of Sao Paulo got 4.8% vs. in 41% in 2006; Marina Silva, a former minister, 1% vs.  19% in 2010.

Voters, who had remained undecided for the longest time in years (45% vs. 20% to 30% in the past), or perhaps had not disclosed their preferences, sent a clear message: we want big change, now, and we don’t think regular politicians are up to it. 

And the biggest change that Brazilians are clamoring for is security.  In a 10/2/18 Datafolha poll, 88% of respondents declared to feel unsafe; that is a staggering number and was their No.1 concern.  This time around, incoming military-related congressmen are double the number of those in the current assembly.  Bolsonaro is a former military himself and has made security the focus of his campaign.  Today, Jaques Wagner, a PT grandee, was reported[1] to have advised Haddad to do likewise ahead of the second round.

Military and ex-policemen and women are not elected to tackle public budgets.  They are elected to reestablish law and order.  Except for G. Alckmin, presidential candidates spent very little time presenting an economic program.  When Paulo Guedes, a free-market Chicago Boy[2] tried to present a possible future tax reform, he was promptly shut down by his boss, Bolsonaro. 

Economists will lament the lack of a serious discussion of the dire state of the Brazilian economy.  But in truth, there can be no sustained and vigorous economic development without, first, public security.

Which private business, small or otherwise, will invest large financial and human resources into projects that have a three to four year payback period if its owners, managers and staff feel under constant danger for themselves or their families, and occasionally think about emigrating in search of a better life?

In the 1980s and 1990s, Colombia lived through similarly difficult times.  People in the big cities and the countryside felt under constant threat from narco-guerillas, gangs and petty thieves.  In 2002, incoming President Alvaro Uribe initiated his key Policy for Democratic Security (PSD).  It was carried out within the framework of a functioning democracy, it succeeded and the economy soared.

I believe that both Bolsonaro and Haddad understand that this is their biggest challenge and what the people want.  They must also understand that the people will give either one a wide berth on other policy issues as long as security is returned.


[1]  In the Folha de Sao Paulo.
[2]  A 1979 PhD in economics from the University of Chicago.

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