IBOV 166,934.20 ▼ 0.10% IPSA 11,042.67 ▲ 0.39% IPC MEX 64,397.45 ▼ 0.66% MERVAL 2,947,349 ▼ 1.77% COLCAP 2,452.46 ▲ 0.84% BVL PERÚ 58,104.31 ▲ 0.40% USD/BRL5.21▲ 0.47% USD/MXN17.02▼ 0.08% USD/CLP914.45▼ 0.02% USD/COP3,141▼ 0.15% USD/PEN3.37▼ 0.21% USD/ARS1,488▼ 0.28% USD/UYU40.33▲ 1.50% USD/PYG5,984▲ 2.22% USD/BOB11.54▼ 0.69% USD/DOP58.45▲ 0.55% USD/CRC446.12▲ 0.91% USD/GTQ7.62▲ 2.25% USD/HNL26.79▲ 0.54% USD/NIO36.62▲ 0.63% USD/VES769.14▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD 157.28 — 0.00% USD/TTD6.70▲ 0.74% EUR/BRL6.05▲ 1.03% BRENT 88.88 ▼ 0.03% WTI 83.11 ▼ 0.11% IRON ORE 161.91 — — COPPER 6.61 ▲ 0.03% GOLD 4,461 ▲ 1.78% SILVER 65.59 ▲ 1.26% SOY 1,184 ▲ 3.20% CORN 480.50 ▲ 10.02% WHEAT 655.00 ▲ 3.93% COFFEE 317.25 ▼ 5.51% SUGAR 16.43 ▼ 1.79% ORANGE JUICE 138.55 ▼ 0.47% COTTON 85.03 ▲ 2.33% COCOA 5,719 ▲ 3.18% BEEF 223.60 ▼ 3.93% CATTLE 339.10 ▼ 3.16% LITHIUM 75.20 ▲ 1.47% PETR4 41.64 ▼ 0.05% VALE3 72.97 ▲ 0.83% ITUB4 38.60 ▼ 1.03% BBDC4 16.85 ▲ 0.36% ABEV3 14.89 ▼ 0.80% BBAS3 19.37 ▲ 0.47% B3SA3 14.26 ▼ 0.21% WEGE3 47.59 ▲ 0.49% PRIO3 59.14 ▼ 0.19% SUZB3 41.33 ▲ 2.35% RENT3 34.68 ▼ 0.09% AZZA3 15.89 ▼ 2.63% CSAN3 3.22 ▼ 1.83% RAIZ4 0.25 — 0.00% PCAR3 2.75 ▼ 0.36% GMAT3 3.65 ▼ 1.08% PSSA3 48.13 ▼ 0.54% CVCB3 1.33 ▼ 2.92% POSI3 3.36 ▲ 2.44% SLCE3 13.34 ▲ 0.30% NATU3 8.14 ▼ 0.73% IBOV 166,934.20 ▼ 0.10% IPSA 11,042.67 ▲ 0.39% IPC MEX 64,397.45 ▼ 0.66% MERVAL 2,947,349 ▼ 1.77% COLCAP 2,452.46 ▲ 0.84% BVL PERÚ 58,104.31 ▲ 0.40% USD/BRL 5.16 ▲ 0.01% USD/MXN 17.06 ▼ 0.24% USD/CLP 913.98 ▲ 0.04% USD/COP 3,140 ▲ 0.03% USD/PEN 3.36 ▼ 0.66% USD/ARS 1,493 ▲ 0.10% USD/UYU 40.27 ▲ 1.24% USD/PYG 5,939 ▲ 1.68% USD/BOB 11.64 ▼ 0.76% USD/DOP 58.34 ▲ 1.25% USD/CRC 445.92 ▲ 0.89% USD/GTQ 7.62 ▲ 2.21% USD/HNL 26.79 ▲ 1.57% USD/NIO 36.62 ▲ 0.69% USD/VES 762.44 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 157.28 — 0.00% USD/TTD 6.70 ▲ 0.61% EUR/BRL 5.95 ▲ 1.01% BRENT 88.88 ▼ 0.03% WTI 83.11 ▼ 0.11% IRON ORE 161.91 — — COPPER 6.61 ▲ 0.03% GOLD 4,461 ▲ 1.78% SILVER 65.59 ▲ 1.26% SOY 1,184 ▲ 3.20% CORN 480.50 ▲ 10.02% WHEAT 655.00 ▲ 3.93% COFFEE 317.25 ▼ 5.51% SUGAR 16.43 ▼ 1.79% ORANGE JUICE 138.55 ▼ 0.47% COTTON 85.03 ▲ 2.33% COCOA 5,719 ▲ 3.18% BEEF 223.60 ▼ 3.93% CATTLE 339.10 ▼ 3.16% LITHIUM 75.20 ▲ 1.47% PETR4 41.64 ▼ 0.05% VALE3 72.97 ▲ 0.83% ITUB4 38.60 ▼ 1.03% BBDC4 16.85 ▲ 0.36% ABEV3 14.89 ▼ 0.80% BBAS3 19.37 ▲ 0.47% B3SA3 14.26 ▼ 0.21% WEGE3 47.59 ▲ 0.49% PRIO3 59.14 ▼ 0.19% SUZB3 41.33 ▲ 2.35% RENT3 34.68 ▼ 0.09% AZZA3 15.89 ▼ 2.63% CSAN3 3.22 ▼ 1.83% RAIZ4 0.25 — 0.00% PCAR3 2.75 ▼ 0.36% GMAT3 3.65 ▼ 1.08% PSSA3 48.13 ▼ 0.54% CVCB3 1.33 ▼ 2.92% POSI3 3.36 ▲ 2.44% SLCE3 13.34 ▲ 0.30% NATU3 8.14 ▼ 0.73%
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Op-Ed Guest Opinions

Opinion: The Ambassador, the Centrão, and the Semi-presidential Express. All Aboard in Brazil?

By · July 25, 2021 · 3 min read

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RIO DE JANEIRO, BRAZIL – (Opinion) On his way out the door, U.S. Ambassador to Brazil Todd Chapman, who is taking early retirement, said in an interview with Estadão newspaper, “Democracy is rock-solid in Brazil, the cancer is corruption.” Continuing this theme, he said,”The problems in Brazil are the Mensalão [monthly graft to lawmakers], the skimming of billions from Petrobras, the Lava Jato, Odebrecht bribes….”

Then he added his conclusion: “For us, democracy is nonnegotiable, and Brazil is a super-democratic country. All those who have forecast the end of democracy in Brazil, have always erred.”

“For us?” Us who? Either (1) Ambassador Chapman knows something we do not; or (2) he knows next to nothing about today’s Brazil. We favor Option 1, for the reasons set out below.

Todd Chapman. (Photo internet reproduction)
Todd Chapman. (Photo internet reproduction)
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Chapman’s “adios” interview shows that he knows well Bolsonaro’s election strategy, past and future. The ambassador homes in on cases of corruption – specifically Mensalão, Petrobras, Lava Jato, and Odebrecht – all of which occurred on ex-President Lula’s watch.

Bolsonaro’s 2018 campaign was largely about disparaging Lula and PT as corrupt.  Bolsonaro’s 2022 campaign will also largely be about disparaging Lula and PT as corrupt: he will look to the past to avoid a future Lula presidency.

Chapman has lots of company looking at the past. The military hierarchs ensconced in Bolsonaro’s administration, almost to a man (there are no women generals), are determinedly opposed to Lula returning to power. Their threats – not to hold elections, or to deny their validity – presuppose a Lula victory. Many even wish the future could resemble the post-1964 “revolution”, when Lula was jailed.

Arthur Lira, the President of the lower house of Congress, and generally acknowledged as leader of the informal right-wing Centrão party coalition now controlling the Legislative Branch, last week proposed adopting “semi-presidentialism” as Brazil’s system of government, starting in 2022! [He backtracked later by saying 2026 would be okay.]

Commentators all across the political spectrum have recognized this proposal as a ploy, designed by Lira to ensure that Lula, if elected President, would have little power to govern. Under a semi-presidential regime, a legitimately installed Prime Minister, backed by an official coalition of right-thinking parties, would govern Brazil.

In short, Lira has proposed the institutionalization of the Centrão; cagily, he is also hedging his bets. He knows that, under a semi-presidential regime, if Lula does not win in 2022, the Centrão could control an unruly Bolsonaro and his military cohort.

Lira’s right-wing party PP, short for “Progressistas” (try not to snicker), is said to want Bolsonaro to join its ranks in time for the 2022 election. In the meantime, PP’s president, Senator Ciro Nogueira, is set to become Bolsonaro’s Chief of Staff – the most powerful cabinet position, in charge of liaison with the legislature.

Nogueira will replace an active-duty general, sidelined to the Presidential General Secretariat. The general’s reaction, when told of his inchoate firing, was to say he had been “run over by a train”.

If there is a train, it is political:  the Semi-presidential Centrão Express, whose engineer and fireman are Arthur Lira and Ciro Nogueira. The question for Brazil is whether Bolsonaro even realizes he may have to settle for becoming a mere train conductor, assigning upper or lower berths to sleeping car passengers, many of whom are old soldiers hankering for another war.

“All aboard?”

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