[Marxism] Lula's cabinet shifts further right

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http://news.ft.com/cms/s/82c10cc8-39c3-11d9-b822-00000e2511c8,ft_acl=,s01=1.html

Lula?s sacking of bank chief delivers blow to leftwingers
By Raymond Colitt in São Paulo
Published: November 19 2004 00:45 | Last updated: November 19 2004 00:45

Luiz Inácio Lula da Silva, Brazil's president, sacked Carlos Lessa as head of 
the country's large development bank in the course of a broader cabinet 
reshuffle on Thursday.

The departure of Mr Lessa and Darc Costa, his vice-president, from the National 
Bank for Economic and Social Development (BNDES), is seen as setback for the 
leftwing hardliners within Mr Lula da Silva's government alliance. With a 
budget of R$60.8bn ($22bn) next year, the BNDES is one of the largest banks of 
its kind in the world. The departure of Mr Lessa the fifth key official to 
leave government over the past fortnight marks a wider cabinet reshuffle 
following October's municipal elections.

Frei Betto, a longtime friend and social welfare adviser to Mr Lula da Silva, 
said he would resign at the year-end. Ricardo Kotscho, Mr Lula da Silva's press 
adviser, and José Viegas, the defence minister, also stepped down recently. 
This week Cassio Casseb resigned as head of Banco do Brasil, a large 
state-controlled bank.

The centrist PMDB party, Mr Lula da Silva's main coalition ally, has threatened 
to abandon the coalition unless it obtains more government and congressional 
posts. Aloizio Mercadante, an influential senator from the governing Workers' 
party, said on Thursday that Mr Lula da Silva was likely to make more 
ministerial appointments in the coming days or weeks.

Mr Lessa had repeatedly challenged the authority of Luiz Furlan, the industry 
minister and Mr Lessa's immediate superior, and more recently called Henrique 
Meirelles' central bank presidency a ?nightmare?.

Mr Lessa considered himself a ?neo-nationalist? and was a strong proponent of 
state economic intervention. He was supported by José Dirceu, chief of staff, 
and Mr Mercadante.

Mr Lessa and Mr Costa were known as fervent advocates of South American 
integration as a means to counterbalance regional US supremacy. Their 
departures were widely seen as evidence that the government's market-friendly 
faction, led by Antonio Palocci, the finance minister, had gained political 
clout with this year's strong economic recovery.



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