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Lula da Silva Fernando Henrique Cardoso and Brazil. By Ted Goertzel Rutgers University Camden NJ 08102. January 1, 2003 Democratic transition from from Fernando Henrique Cardoso to Luiz Inácio Lula da Silva. Lula da Silva Born 27 Oct 1945 in the interior of Pernambuco

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lula da silva fernando henrique cardoso and brazil

Lula da SilvaFernando Henrique Cardosoand Brazil

By Ted Goertzel

Rutgers University

Camden NJ 08102


January 1, 2003

Democratic transition from from Fernando Henrique Cardoso to Luiz Inácio Lula da Silva

Lula da Silva

Born 27 Oct 1945 in the interior of Pernambuco

Seventh of eight children

Father left for São Paulo and his wife’s cousin just before Lula was born

Raised in extreme poverty in the interior of Pernambuco

Mother, Dona Lindu, the dominant influence in his childhood

Fernando Henrique

Born 18 June 1931 in Rio de Janeiro

First born of three

Good relationship with both parents

Raised in a family with a distinguished history

Father a leftist army officer, lawyer and politician

Paternal grandmother dominant figure at home


Fernando Henrique with his mother and his paternal grandmother.

Lula at 3 years old with sister Maria. The clothes and shoes were loaned to him for the photograph.


FHC: Scion of the Aristocracy

Parents and siblings

Father beside a bust of FHC’s grandfather.

Grandfather on his white horse


Cardoso is a Social Democrat but is often stigmatized as a “neoliberal.” He was elected President in 1994 by an alliance between his Brazilian Social Democratic Party and the Party of the Liberal Front. He was sent to the Senate in1982 by the Brazilian Democratic Movement Party. As a youth, he was affiliated with a cultural group of the Brazilian Communist Party.

some questions
Some Questions
  • What difference does the change in ideology and party politics make?
  • What difference does the difference in personal leadership make?
  • Why has the Lula government been characterized as “the third term of the FHC government”?
  • What are the likely future trends?
lula on his father
Lula on His Father
  • “I feel bad about my father (tenho mágoa) because I think he was very ignorant. He was a fount of ignorance (um poço de ignorância). He died in1978 as an indigent.”
  • Lula’s father was illiterate and did not want any of his children to surpass him by going to school. He carried a newspaper to work, sometimes upside down.
  • He earned enough as a longshoreman in Santos to support two families.
lula on his mother
Lula on His Mother
  • “I thank God for my mother’s courage… At a time of great misery, my mother raised five sons who became poor but honest men and three daughters who did not have to prostitute themselves. I believe this is a very noble thing.”
  • “My mother sold her watch, her donkey, her religious statues, her family photographs, she sold everything, everything she had to leave the Northeast.”
a mother s boy
He felt humiliated and neglected by his father

He told his brothers the best thing their father ever did for them was to leave with another woman

He rebelled against his father by getting an education and having a more successful career

He cried the first time he spent a night away from his mother - on his honeymoon

His mother strongly supported his drive to get an education

He won the struggle for his mother’s love when she broke with his two-timing father

A Mother’s Boy
Lula da Silva

Mother and siblings moved to Santos in the back of a truck when he was seven

Worked as vendor, shoe shiner and delivery boy

Public elementary school

Mother separated from abusive husband, moved to São Paulo with children

Won admission to three-year training program as a lathe mechanic

Fernando Henrique

Father encouraged him to pursue his literary and intellectual interests

Did well in school, but failed Latin exam for law school

Majored in social sciences because of interest in Brazilian nationalism

Involved with an intellectual journal linked to the Communist Party


Lula with youthful friends.

Fernando Henrique with wife Ruth and son

young adulthood
Lula da Silva

Marries a fellow worker

Wife and newborn die in childbirth with poor medical care

Works as a lathe operator

Marries a widow, Marisa, who has a son

Becomes active in the metal workers union

Jailed briefly by military regime as a strike leader

Fernando Henrique

Marries a fellow student and starts a family

Joins Marxist study group with friends who become leading intellectuals

Begins academic career

Forced into comfortable exile by the 1964 military coup

Becomes intellectual star in exile in Chile and France

Young Adulthood

Arrested by the military police in 1980 during a 41 day general strike in the industrial suburbs of Sao Paulo.


Lula’s wife Marisa in front of the church where they were

married, and showing the first PT flag which she sewed.

entering politics
Lula da Silva

Decided to join the group forming the Workers Party in 1979 when the military allows multiple parties

Joins in forming an independent labor federation, the Central Única dos Trabalhadores in 1983

Joins the campaign for Direct Elections Now! in 1984

Fernando Henrique

Decides not to join the Workers Party and joins the Party of the Brazilian Democratic Movement

Elected as Alternate to the Senate on MDB ticket, succeeds to Senate when Franco Montoro becomes governor of São Paulo

Joins the campaign for Direct Elections Now! in 1984

Entering Politics

Discussions in 1979 leading

to the founding of the Partido

dos Trabalhadores. Upper left

is a discussion with Communist

Party leaders.

lula s political campaigns
Lula’s Political Campaigns
  • 1982, loses campaign for governor of São Paulo
  • 1986, elected to Constituent Assembly to draft new constitution, FHC one of the leaders
  • 1989, loses run-off for Presidency to Fernando Collor, later impeached for corruption
  • 1994, loses Presidency to Fernando Henrique Cardoso, the Finance Minister who ended inflation
  • 1998, loses Presidency to Fernando Henrique Cardoso as country weathers economic storm
  • 2002, elected President of Brazil on the first round after moderating his platform

Time goes by and so many at work.

Suddenly, this clarity to notice

Who has always been sincere and to trust,

Without fear of being happy.

I want to see it come...

Lula-lá! A star is shining!

Lula-lá! Hope grows!

Lula-lá! In this child-Brazil and in the joy of embracing...

Lula-lá! With sincerity,

Lula-lá! Certainly!

Lula-lá! For you, my first vote,

Lula-lá! To make our star shine!

Lula-lá! That\'s we together!

Lula-lá! It was worth the wait!

Lula-lá! My first vote

To make our star shine!

("Lula lá!", by Hilton Acioly, theme-tune of the 1989 campaign).






1994 Campaign photos

Upper left with Manoelzao

Lower left with Cinta Larga

and Surui Indians





personal history
Personal History
  • FHC: His privileged family background and intellectual brilliance make it difficult for him to relate to common people, through the mass media. He is strong in one-on-one relationships.
  • Lula - His success story is inspiring and gives him the ability to empathize with common people. People of all classes really want him to succeed.
  • Lula - His mixture of radical rhetoric and pragmatic policies is rooted in his experience as a union leader and speaks to the emotional and practical needs of the Brazilian people
biographer brito alves on lula s personality
Biographer Brito Alves on Lula’s Personality
  • Restless , pugnacious, well spoken, authentic, charismatic, strong willed, persistent and determined, full of initiative, creativity and leadership spirit
  • Ethical and engaged, struggles tooth and nail for the interests of the workers
  • Has much in common with George Bush: informality, frankness and human warmth
  • Likes soap operas, magazines, cooking on a wood stove, smoking, informal socializing.
  • Emotional, cries easily, likes to touch people, doesn’t like being alone, doesn’t hold grudges
leadership traits
Leadership Traits
  • Strength - FHC and Lula are both strong leaders working in a democratic framework
  • Competence - FHC is exceptionally competent, Lula relies on advisors
  • Empathy - Lula is warm and expressive, FHC is dry and academic, perceived as “distant from the people”

Communicating feelings at a press

conference with Finance

Minister Antonio Palocci

political parties
Political Parties
  • The Workers Party is more organized and disciplined than Brazil’s other major parties, with the ideological left a marginalized minority
  • It has a reputation for honesty and idealism, sadly compromised by some recent scandals
  • Its historic base is the labor aristocracy and state employees - a sort of UAW/AFSCME merger
  • Cardoso’s Social Democratic Party has more business and middle class private sector support.
  • The other parties are more regional and careerist, often focused around leading personalities
  • Party affiliations are often fluid Brazil
francisco de oliveira on the pt and the psdb
Francisco de Oliveiraon the PT and the PSDB
  • The Workers Party (PT ) is led by workers transformed into operators of pension funds
  • The Social Democratic Party (PSDB) is led by technicians and economists, many of whom have gone to work in banks
  • The nucleus of the PSDB was trained at the Catholic University in Rio, the nucleus of the PT was trained at the Getulio Vargas Foundation Business School in Rio
  • Both parties are based on controlling public funds. Francisco dropped out of the Workers Party in 2003

Lula with Vice President Jose Alencar of the Liberal Party

The Liberal Party is a small

group with a base among

Protestant activists. The alliance

with them showed that the PT was

willing to play the Brazilian political

game of opportunistic coalitions.

  • Lula was always a “bread and butter” unionist and democrat, not a leftist ideologue
  • The term “Neoliberalism” is used as a way of expressing anti-market feelings without advocating a non-market economy.
  • “Liberalism” is a positive term as is “Socialism” but neither is used to refer to explicit policies
  • Both FHC and Lula are social democrats with similar policy goals, but it is not not expedient for Lula to admit this.
  • Lula is more sympathetic to nationalist and state-led development ideas
the lula administration
The Lula Administration
  • The key ministries are in the hands of pragmatic moderates, with radical histories, who have continued FHC’s economic model
  • Less central ministries have been given to more ideological appointees
  • There have been some difficulties in keeping the troops in line because of the mismatch between rhetoric and resources
  • There has been a learning curve, many of the functionaries are less experienced than those in the FHC administration
key leaders
Key Leaders
  • Key day-to-day leadership is administered by a core of experienced Workers Party leaders that have Lula’s full confidence
  • Some of these men had quite radical politics in their younger days, but have become convinced that Brazil needs to continue with the general policy framework established by FHC
ant nio palocci
Antônio Palocci
  • Finance Minister - primary responsibility for economic policy
  • Physician and former mayor of Ribeirão Preto, a small city in the state of São Paulo
  • Formerly a Trotskyist, he was central to the ideological transformation of the PT
  • Has good relations with the business community
  • Known for a “light” personal style
jos dirceu
José Dirceu
  • Chief of Staff - operational control of the government
  • Student Union leader in late 1960s confrontation with the military regime
  • Exile in Cuba, clandestine activity in Paraná
  • Founding member of Workers Party
  • Elected to state and federal legislatures
The “SuperShorts” Scandal(a political leader caught on an airplane with questionable funds hidden in his underwear)
replaced by dilma rouseff
Replaced by Dilma Rouseff
  • Formerly energy minister
  • Known as Brazil’s “Iron Lady” for hard bargaining
  • Fought the military dictatorship from 1964-1985 as a left-wing guerilla
  • Expected to be a strong manager
guido mantega
Guido Mantega
  • Minister of Planning, Budget and Management
  • Worked with FHC in the 1970s
  • Doctorate in sociology
  • Economics professor at Getulio Vargas Foundation
  • Lula’s economic advisor during the campaign
  • Supports autonomy for the Central Bank
henrique meirelles
Henrique Meirelles
  • President of the Central Bank
  • Formerly a federal deputy for the PSDB from Goiás
  • Educated at Harvard Business School
  • President of Banco do Boston no Brasil, FleetBoston Global and World President of BankBoston
  • Provides expertise and reassurance of continuity and stability in the financial system
less central leaders
Less Central Leaders
  • Less critical ministries are often run by people with strong reputations outside of government
  • These ministries also provide representation for minority groups and minor parties in Lula’s coalition
  • These leaders help to build understanding and support for cultural and social changes

Gilberto Gil is one of the most important singers, composers and instrumentalists in Brazilian popular music. Fluent in English, French, he is affiliated with the Green Party

Minister of Culture Gilberto Gil and Actor Carlos Mamberti review participants on National Samba Day


Minister of Sport Agnelo Queiroz visits the Olympic Village of Indigenous Games in Palmas, Tocantins. A physician from Bahia and former federal deputy, he is a leader of the PC do B, the Communist Party of Brazil


Cristovam Buarque was replaced as Minister of Education when he persisted in criticizing the government for not spending more on the universities.

He was replaced by Tarso Genro, former Workers Party Mayor of Porto Alegre and Marxist scholar

Cristovam Buarque

Tarso Genro


José Graziano, former Minister of Food Security and Combat Against Hunger

The “Zero Hunger” program was poorly conceived and administered. It has now been folded into the Ministry of Social Development and has resumed emphasis on the family scholarship program begun by Cristovam Buarque and popularized under FHC.

lula s personal leadership
Lula’s Personal Leadership
  • Lula is focusing on retail politics, ceremonial occasions and foreign travel
  • He retains great personal popularity despite spending a great deal of time on foreign travel, a practice for which the Workers Party severely criticized FHC
  • His vigorous presentation of Brazil’s international interests has been popular, although his proposals are not really new and not always realistic
  • His criticism of United States protectionist policies is popular and justified

Lula is a social drinker whose job requires him to attend a great many social events. He also is inclined to gain weight from attending too many banquets.

the lula government contentious issues
The Lula GovernmentContentious Issues
  • The most difficult and significant accomplishment has been to push significant civil service and pension reform measures through Congress
  • A proposal to give autonomy to the Central Bank has caused protests from nationalists
  • Setting the minimum wage has been highly controversial, with some politicians resigning from leadership positions in protest at the R$260 figure established by the Lula government

Dirceu to public employees: The Government will no longer negotiate the social security reform.


In carrying out this reform, Lula was implementing a proposal that the Workers Party and its allies had blocked under FHC.



Do not be fooled by the wolf dressed in sheep’s clothing. He wants to privatize public services. The Federal Government’s Administrative Reform proposal will weaken the Brazilian State. We will revive the public service with professional training for public servants and better use of the contributors’ money. Only in this way will we have schools, hospitals, police services… of good qualify for all.

Wake up while there is still time, because the bite of the wolf is near!!!

Movement to Defend the Public Service

Parliamentary Front in Defense of the Public Service

This attack on FHC applies better to Lula


A Greenpeace protestor wearing a Lula mask. Protesting the legalization of genetically modified seeds (which Brazilian farmers will use in any event). This is another area where pragmatism has trumped ideology.

  • The next few slides summarize analyses by a number of Brazilian intellectuals
  • A common theme is the longing for a “national project”
  • This is rooted in Brazilian tradition and in distaste for market economics and United States hegemony
  • Fernando Henrique Cardoso believes implementing such a project would be a serious mistake
cristovam buarque
Cristovam Buarque
  • The PT arrived in power with demands but no clear idea of how to realize them
  • Zero Hunger is a goal, not a plan and Bolsa Familia is not socially innovative
  • “Combine pragmatism of financial equilibrium in the short run with the historic ideology of the long run. Unleash [desentancar] the revolution.”
  • Invest in education and “a new kind of economic development that attends the needs of the masses”
  • The party needs to become more active in urging action on the government
luiz carlos bresser pereira
Luiz Carlos Bresser-Pereira
  • There is a generalized sense of frustration with the government, but no one else has a national project either
  • The government needs vision to deal with debt, unemployment, economic stagnation and insecurity
  • In the campaign they blamed globalization and neoliberalism, but without offering an alternative
  • We need a stronger state role in developing capitalism, similar to China and other Asian countries
brazil the duck billed platypus of social development
Brazil: The Duck-BilledPlatypus of Social Development?
  • Sociologist Francisco de Oliveira suggests that Brazil, like the duck-billed platypus, is a creature that violates evolutionary theories but exists and is likely to continue as an evolutionary dead-end
  • It is ruled by a “new class” based on unified objectives and an ideological consensus abut the new function of the state.
  • The new class is concentrated at the intersection of the state and autonomous enterprises and the financial system
luiz carlos mendon a de barros
Luiz Carlos Mendonça de Barros
  • Take India as an example
  • They have had rapid growth based on opening to global markets in certain sectors
  • But the Nationalist government was just thrown out because the masses felt left out
  • We need the economic growth from the global market, together with measures to spread the wealth to the masses
carlos langoni former central bank president
Carlos Langoni - former Central Bank President
  • Lula is applauded by stock brokers and businessmen because he realizes that Brazilians have tired of radical rhetoric and talk of heterodox or miraculous solutions
  • There is no alternative path to development outside the global model
  • The global system is intolerant of management errors. Exchange rates and fiscal policies must be stabilized from one administration to the next
  • A new government can make investments in education, health, etc., but macroeconomic policy must be preserved to guarantee stability.

Langoni edits a widely read business newsletter and advises companies.

geraldo alckmin psdb governor of s o paulo
Geraldo Alckmin PSDB Governor of São Paulo
  • Investment, foreign and domestic, is low (17% of GDP) because investors lack confidence in the government
  • Taxes and interest rates are too high and the government’s statements about the economy are dubious and inconsistent and lack conviction
  • Palocci is a good man, but he lost the opportunity to lower interest rates. The crisis that started in 2002 was due to doubts about the PT’s policies.
c sar benjamin
César Benjamin
  • One option is to integrate with the United States in ACLA, which would give up Brazilian autonomy
  • The second option is a Latin American development project independent of the United States
  • The second would guarantee our sovereignty and continue the project of Simon Bolívar, José Martí, Ernesto Guevara and Darcy Ribeiro.
  • The independence of the Central Bank is designed to serve the interest of the US and ACLA.
advisors to the catholic bishops
Advisors to the Catholic Bishops
  • The economy is focused on paying debt through taxes, high interest rates and cutting expenditures, not on social justice
  • Agrarian reform is too slow, due to the financial constraints
  • The technocrats are in control and “new social model” is not being implemented
  • More must be done against corruption and social disorder
  • Gun control and protections against genetically modified foods are needed
workers party journal where is the lula government going
Workers’ Party Journal:“Where is the Lula government going?”
  • Ending hunger
  • Ending unemployment should have been given equal weight
  • We are in an epoch of transition of organizational paradigms
  • From a neoliberal paradigm to “the possibility of a republican paradigm”
  • “We are speaking centrally of a change of values, rationalities and state projects to analyze and reflect on the historical impasse of three or four decades of development in Brazil.”
fernando henrique cardoso risks and options for brazil today
Fernando Henrique Cardoso:Risks and Options for Brazil Today
  • One risk is a return to the military vision of Brazil as a great power, reinterpreted by the left
  • The other risk is the return of the belief that Brazil needs a national project and an interventionist state
  • These are archaic views that would lead to an increase in bureaucracy and rigidity
  • We need an emphasis on effective social programs, but not state leadership of the economy
  • Lula is acting responsibly, but sometimes speaking irresponsibly. Some self-criticism would help
alternative futures
Alternative Futures
  • Unlikely: the “turn to the left” Lula’s leftist supporters want. Could lead to default and a collapse like Argentina 2001
  • More likely: a populist turn leading to a resumption of inflation, growth in bureaucracy and a Bolivian or Venezuelan future
  • Most likely: continuing the current policy which might be characterized the Chilean model with a democratic socialist veneer
  • References are given in “notes” attached to each slide (open the presentation in Powerpoint and click on “view/notes page”
  • The photographs in this presentation come mostly from WEB sites.
  • Some biographical sources are listed on the following slides.

Lula’s personal history is well documented in Denise Parana’s book.An English language review is available on my WEB site.

Brito Alves, A Historia de Lula: O Operario Presidente is a shorter biography.


An illustrated history of the Workers’ Party in English can be found on the WEB site of a foundation established by the party in 1996:


Several books are available on FHC. An updated chapter of mine is on my WEB site. Also an English review of Carlos Micheles’ book