Brazil's government closely watched
www.chron.com Feb. 23, 2003, 11:04PM Houston International Scene By MAE GHALWASH Copyright 2003 Houston Chronicle
Latin Americans are closely watching the newly elected leftist Brazilian government's reform policies, which are a middle ground between socialist and free-market strategies, Enrique Hidalgo-Noriega, a senior analyst for the New York-based Eurasia Group, said in Houston last week.
Having been hit by a series of political upheavals and economic crises, Latin Americans have reached a "crossroads," with people wondering whether to continue with political and economic reforms toward democracy and free markets, Hidalgo-Noriega said.
Some politicians blame the reforms for the crises, while others insist the reforms are insufficient, Hidalgo-Noriega said. The Brazilian government of Luiz Inacio Lula da Silva believes that the solution lies somewhere in between: reforms are necessary but should be coupled with some government control, Hidalgo-Noriega said.
Lula's people criticize past economic reforms for giving too much autonomy to state companies and too much power to regulating agencies.
"The government wants to have a greater say in planning and administration," Hidalgo-Noriega said. "The objective is to take back some of the autonomy and the power."
One example is the planned sale of major hydroelectric plants, which, according to energy reports, are not likely to be auctioned off to the highest bidder but to the company that will offer better terms for consumers. Also, the government appointed some loyalists to the state-oil firm Petrobas but kept many of the company's experienced career employees.
Energy pundits have said the moves hint of socialism, but they are not absolute dismissals of free market policies. Hidalgo-Noriega agrees and points out that Brazil is not heading in the direction of Venezuela, where President Hugo Chavez has appointed political comrades with little or no business or energy experience to run the state oil company Petroleos de Venezuela S.A.
While Hidalgo-Noriega says he supports more autonomy and power for companies and agencies, he points out, for example, that Brazil's energy sector has had failings, like the blackouts of 2001. Whether the government's new approach will correct these failings is something pundits are waiting to see, he said.
As for Latin America, the looming war with Iraq is hindering its emergence from its crises, the analyst said. The effect the war will have on world economy undoubtedly will delay any economic recovery in countries like Argentina, which has just started to recover from its crisis.
For Mexico, whose development depends on the United States, the war is particularly troublesome. The government of President Vincente Fox is caught between wanting to appease America in its move toward war and its fear of alienating the Mexican people, who are largely against the war, in an election year.
A delay in economic recovery would cause the general populations to "not equate democracy with prosperity, but with poverty," Hidalgo-Noriega said.
International calendar:
·Brazil/Venezuela: Paulo Sotero, Washington correspondent for the leading Brazilian newspaper O Estado Des Paulo, will discuss how the leaders of Brazil and Venezuela might direct their countries through reform or crisis at 11:30 a.m. Wednesday at the Westin Galleria Hotel, 5060 W. Alabama. Reservations are required. Call the Houston World Affairs Council at 713-522-7811.
·Eurasia: The Greater Houston Partnership will present a workshop on Eurasia, focusing on oil and gas projects and the investment opportunities there. The event is at 8:30 a.m. Wednesday at the GHP, 1200 Smith St., Suite 700. Today is the last day to register. Call Cari Broderson at 713-844-3635.
·United Nations: The United Nations Association-Houston is organizing a group for young professional people of diverse ethnic backgrounds who are interested in international affairs. The meeting starts at 10:30 a.m. Saturday at the Whole Foods Market, 4001 Bellaire Blvd. Reservations are required. Call 713-626-7410.
·Great Britain: Louis Markos, professor of English at Houston Baptist University, will discuss British romantic poetry. at 6:30 p.m. Wednesday at the Briar Club, 2603 Timmons Lane. Reservations for the event, which includes dinner, are required. Call the English-Speaking Union at 713-666-1044.
·Japan: The Kodo Drummers of Japan will perform in Houston to help commemorate the 150th anniversary of the Japan-U.S. relationship and the 100th anniversary of the Texas-Japan relationship. The event starts at 8 p.m. Friday and Saturday at Jones Hall, 615 Louisiana. Reservations are required. Call 713-2274772.