An underpowered economy
Lula's government is trying to remove obstacles to investment—but not fast enough
HERE is an irony: the government of Luiz Inácio Lula da Silva, whose left-wing party abhors financial speculators and reveres industry, has done a much better job of pleasing short-term investors than long-term ones. Soon after taking office in January 2003, Lula's economic team administered a “credibility shock”: to reduce public debt they tightened the budget beyond what the IMF had asked for. Speculators feasted on Brazilian bonds. But builders of factories, roads and power plants have been wary. Does the government “really want us around?” wonders Eric Westberg of APINE, a lobby group of independent power producers.
This article appeared in the The Americas section of the print edition under the headline “An underpowered economy”
From the May 8th 2004 edition
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