Making Progress

A Conversation with Fernando Henrique Cardoso

The Country of the Future In 1999, the label BRICs came about as Brazil was on its way. The nations economic and social development had passed some important landmarks New constitution in 1988 brought democratization Old constitution was outmoded Overemphasised the role of the state in the economy After 1988 we developed the architecture of a democratic system The people became better organised in pressuring the government New constitution gave people the right to organise, raise demands and force government to act In the early 1990s, under President Jose Sarney, the economy was opened He tried to liberalise the economy In 1991, President Fernando Collor de Mello decided to decrease tariffs over 4 years Causing widespread protests fearing it would harm Brazilian Industry which had developed under high tariffs Instead it injected some competitiveness into the economy In 1994, monetary stabilization occurred under President Itamar Franco (Cardoso was Finance Minister) Known as the Real Plan

An Awake Brazil In 1995, stabilization continued With measures to change the rules for building and operating the budget Privatizing state owned operations Creating regulatory agencies Allowed development of effective social policies in Education, Health and social security First time Brazilians had education for all Established that Healthcare is a right for citizens And a state obligation Minimum wage increase The more open economy, foreign capital investment and busting of the monopolies produced a new Brazil