[A-List] Brazil: Manifesto of the Economists for a New Economic Policy

["Sabri Oncu" <soncu@xxxxxxxxxxx>]

MST Update #95 - 07/25/2005 

Dear Friends, 


Today we are sharing the Manifesto of the Economists for a New Economic
Policy, which was launched today during the events that marked the Day of
the Rural Worker. 

National Secretariat of the MST 

The Crisis of the Republic: Manifesto of the Economists for a New Economic
Policy 


Everyone agrees that the Republic is in crisis. We also believe that the
crisis is deep. But what crisis are we talking about? We believe that the
New Republic, born over the ashes of the dictatorship in 1985 promising a
better country, finally succumbed before the interests of the country's
ruling classes and died. The current crisis -- political, economic, social,
and ethical -- can only be resolved if the pillars of the agreement that
sustained the transition of the dictatorship to democracy and which were
protected and nourished by all the following governments up to now, were
substituted by a program that meets the most deeply-felt demands of the
people and restores the national and popular sovereignty that every Republic
worthy of the name must possess. 


The economic strategy that chose to fight inflation as the main political
objective is completely weakened and broken, despite still having many
defenders inside and outside of government. After numerous plans, the people
are even poorer: Brazil is not the country that has the highest
concentration of income in the world because an African country (Sierra
Leone) is worse. Only last year, the number of millionaires-- people with
assets of more than US$1 million, grew by 7%. Currently almost 100,000
people control 50% of the country's wealth. 


The economic and political program conceived and initially applied in the
government of Fernando Henrique Cardoso, and which still rules the country,
needs to be drastically and urgently replaced. This program -- originally
known as the Plano Real and that currently goes by the name of "economic
stability" -- not only created millions of poor people but continues
compromising the future of generations to come by handing over our
territory, increasing the national debt and worsening the country's
dependence. The austerity applied to the people, with systematic cuts in
social spending and increasing resources destined to the payment of the
internal and external debts, deepens the parasitic and predatory relation of
national and foreign entrepreneurs with the Brazilian state. The increase in
taxes is to pay the interest on the debt and this ensures safe profits to
all those who invest in bonds of the public debt: bankers, entrepreneurs,
and rentists of every type. Corruption of political parties and politicians
is only the most visible face of a deeper process that can only be
effectively corrected if the State is strengthened and de-privatized.
Privatization and the weakness of the State are the main sources of
corruption in Brazil! 


The owners of power claim that exports can save the country but the truth is
that this option forgets the vitality of the internal market and keeps
salaries low as a condition to compete in the world market. Technological
dependency is growing and the measures taken throughout this year to
strengthen exports only increase the external, productive, monetary, and
financial vulnerability of the Brazilian state. 


But our main enemy is that which affirms the idea that there are no
alternatives. Listed below, we are proposing a group of measures that point
to the beginning of a national and popular alternative for the current
crisis. They can and should be taken at this time in which broad majorities 


still defend structural changes for our country and support with brave and
intense mobilization a program of a popular nature. If applied, they would
inaugurate a new era for the majorities that will join without hesitation a
long struggle to build a democratic Republic, destined to strengthen
national sovereignty and overcome underdevelopment once and for all. 


1. Lower the real interest rates (Selic) to the same level as that in the US
and in neighboring countries of South America, such as Venezuela and
Argentina or around 2.5% per year and not the current 19.75%. Control the
interest rates charged by the banks to tradesmen and consumers that come to
more than 100% per year. 


2. Change the current policy of the primary surplus in the Federal Budget
that designates vast public funds just to pay interest on the foreign debt.
Apply the $R 80 billion collected by the government this year to investments
that create jobs in education, family farming, Land Reform, health, and
housing. 


3. Double the minimum wage and the increase in pensions to $R454/month this
year (2005) and raise them to R$566 next year, aiming to distribute incoming
and improve the living conditions for the poor, thus honoring the
commitments of the Lula government made during the election campaign. 


4. Restore government and public control over the Central Bank and monetary
policy, preventing the autonomy of the Central Bank which is already being
adopted by its directors in collusion with the interests of bankers and
international finance capital. 


5. Do not sign FTAA and do not accept the rules of the World Trade
Organization that affect the Brazilian economy and the interest of the
people. 


6. Hold a public hearing on the foreign debt, as the Constitution specifies,
and renegotiate its value, which has already been paid many times over. Use
the resources sent outside the country to pay the foreign debt to invest in
education and social rights instead. 


7.Change the current rules of readjustment for the tariffs of basic public
services such as electric energy, water, telephone, and public transport.
Revise and reduce the current tariffs that are prohibitively high for all
Brazilians and favor oligopolies that have come to dominate the sector after
privatization. 


8. Immediately freeze the rounds of auctions for exploration of oil areas.
Change Law 9478/97 to ensure the nationalization of oil with exclusive
exploration rights for Petrobras. 


9. Guarantee the participation of representatives of Brazilian society and
of workers in all administrative councils of public and autonomous
businesses at all levels: federal, state, and municipal. 


10. Adopt a policy that protects national wealth, fighting the sending of
dollars outside the country through transfers, super-invoicing of
transnational corporations, profits, royalties, etc., guaranteeing their
application in Brazil. Promote the repatriation of resources sent in a legal
way, however illegitimate. Adopt the measures that protect our economy from
external vulnerability. 


SIGNERS 


1.Sidney Pascotto - President of the Federal Council on the Economy 


2. Jomo Pedro Stedile - MST, Via Campesina Brasil. 


3. Reinaldo Gonzalves - Professor UFRJ and Council member of the regional
Council on the Economy of the state Rio de Janeiro. 


4. Paulo Passarinho - Coordenador Geral do Sindicato dos Economistas do
Estado do Rio de Janeiro. 


5. Nildo Ouriques - Universidade Federal Santa Catarina. 


6. Dirlene Marques - President of the Syndicate of Economists of Minas
Gerais and Coordination of the Minas Gerais Committee of the World Social
Forum 


7. Luiz Filgueiras - Professor of the Federal University of Bahia-UFBA. 


8. Ronaldo Rangel - Council of COFECON.-Federal Council of economists 


9. Caio R. M. Camargo - UNICAMP/post-graduate. 


10. Prof. Dr. Edmilson Costa - PCB. 


11. Krishna Mendes Monteiro - UNICAMP/Masters in Political Science/IFCH. 


12. Jose Antonio Lutterbach - President of the Regional Council of Economy
of the state of Rio de Janeiro. 


13. J. Manoel Gonzalves Barbosa - Vice-President of the Regional Council of
Economy of the state of Rio de Janeiro 


14. Wellington Leonardo da Silva - Director of the Syndicate of Economists
of the state of Rio de Janeiro 


15. Antonio Melki Junior - Director of the Syndicate of Economists of the
state of Rio de Janeiro. 


16. Carlos Henrique Tibirio Miranda - Director of the Syndicate of
Economists of RJ and Adviser of Corecon-RJ. 


17. Maria Neusa Costa - Vice-President of the Syndicate of Economists of the
state of Minas Gerais. 


18. Concessa Vaz de Macedo - Professor of the Department of Economic
Sciences of the Federal University of Minas Gerais. 


19. Severo de Albuquerque Salles - Autonomous University of Mexico. 


20. Reinaldo A. Carcanholo - Professor of UFES. 


21. Fabio Marvulle Bueno - Masters IE/UNICAMP. 


22. Francisco Carneiro de Filippo - Masters IE/UNICAMP. 


23. Luciane Bombach - Masters in Social Economy and Labor from Unicamp. 


24. Fernando Henrique Lemos Rodrigues - Masters in Economy IE/UNICAMP 


25. Angelica Soares Gusmano - Masters in Social Policy/UFES and Director of 


Administration and Planning for the City of Cariacica-ES. 


26. Jose Bezerra de Arano - Professor of Brazilian Economy of the Federal
University of Campina Grande. 


27. Ana Carla Magni - Masters in Social Economy and Labor at IE/UNICAMP,
economist of DIEESE and Professor of the Faculties of Anhanguera
Educacional. -SP 


28. Rosa Marques- Professor PUC-SP 


29. Carlos Eduardo Carvalho- Professor PUC-SP 


30. Jose Juliano de Carvalho- Professor FEA-USP 


31. Rafael da Cunha, President of the syndicate of economists of Rio Grande
do Sul 


Translated by Friends of the MST volunteer Charlotte Casey
<http://www.mstbrazil.org/?q=book/print/177> 



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