Lula has now appointed his first administration. The Brasilian system
of government is, like the USA, one of an executive presidency. The Administration therefore does not draw on members of the Congress, the legislature has an entirely separate membership.
As a result of this system Lula does not need a Congressional majority to run the government and has a much freer hand for the selection of ministers.
Unexpectedly, he has formed an administration dominated by Workers' Party (PT) members, and independent 'experts' that are quite close to his tendency in the PT and himself personally.
The most significant exception is that the .••. (non cabinet) head of the Central Bank is a career banker and a member of the Brasilian Social Democratic Party (PSDB) of the out-going President. Senator Heloisa Helena of the Fourth International linked Socialist Democracy (DS) current walked out of his appointment hearing to avoid either voting for him or being expelled from the PT.
None of the ministers is from any of the main rightist and oligarchic parties. Each of the six smaller parties allied to the PT (including the right wing Liberal Party, PL) have been given only one ministry, five of them comparatively minor. The 'experts' including the General in charge of Internal Security, the businessman at Development and Trade and a career diplomat at foreign affairs, have middling to strong Lula connections.
Two of the ministers are of recognised far left connections -Olivio Dutra at Cities and DS member Miguel Agrarian Development. The inclusion of these two is interesting (and no doubt an issue for on-going debate amongst socialists) because they were the PT governor and vice-governor of Rio Grande do Sul state for the last four years, thereby gaining some of the most advanced governmental experience in the PT. They were, however, removed by Lula's supporters as candidates for re-election in last October's elections.
This Cabinet appears to have satisfied the international markets' keeness for stability. The currency and stock markets are steadily rising and the increase in inflation is slow• • • .... Lula plays the populist card with new environment Rossetto at minister, former rubber-tapper Marina Silva
Wing. It would appear that getting the IMF out of the country (in one year!) is the government's short-term economic strategy. How long the urban and rural workers movement will be able to live with this stability will depend on Lula's ability to convince them change is coming - both in words and action. At present he's looking very strong. The situation in the Congress does, however, remain complex. The exclusion of all the parties involved in the last government leaves Lula with at best 240 supporters in a lower house of 513 members and
This exclusion probably means that Lula thinks he is in a strong position to get some sections of the centre and right to support his proposals in the Congress without giving them office.
Lula is exerting quite a strong pull via the negotiations around state budgets with State Governors from the right wing parties. Also, the clientist oligarchic parties have a big base amongst the poorest who Lula is promising to help, voting against Lula might prove awkward for them.
The elections for the Presidencies of the two houses in February will be the first test as to whether the strategy of excluding the main rightist parties is working.
The Brasilian Democratic Movement Party (PMDB, one of the main right wing parties), with which the PT were forging Congressional, and possibly governmental, links, is now hopelessly split over its cooperation with Lula.
This has resulted in the PT seeking a deal in the lower house with the principal oligarchy party, the Liberal Front Party (PFL, not to be confused with the PL).
The Congress will be a permanent headache for Lula, and last year's decision
to reduce presidential powers will make governing without deals harder. The test
will be if the enormous momentum for
change can be maintained from below. At present mobilisations are low as people
wait and see