PT GOVERNMENTS A LEGACY FOR THE FUTURE Aloizio Mercadante Marcelo Zero (Organizers) Presentation by Dilma Rousseff Alexandre Padilha José Eduardo Martins Artur Henrique José Genoíno Clara Ant Juca Ferreira Danilo Molina Juvandir Moreira Eleonora Menicucci Ladislau Dowbor Emir Sader Lindbergh Farias Esther Dweck Luis Antônio Elias Fernando Haddad Marcio Percival Gerson Gomes Marcio Pochmann Gleisi Hoffmann Mauricio Tolmasquim Guido Mantega Miguel Rossetto Guilherme Mello Miriam Belchior Heider Pinto Nilma Gomes Henrique Paim Pedro Rossi João Paulo Rodrigues Renato Simões Jorge Mattoso Ricardo Carneiro Jorge Messias Tereza Campelo Translated by Renata Santos de Morales and Fernanda Martins Fundação Perseu Abramo President Marcio Pochmann Directors Isabel dos Anjos, Rosana Ramos, Artur Henrique and Joaquim Soriano CLACSO Executive Secretary Pablo Gentili First edition in Portuguese Governos do PT: um legado para o futuro (São Paulo: Fundação Perseu Abramo, 2018) First edition in English PT Governments: a legacy for the future (Buenos Aires: CLACSO, São Paulo: Fundação Perseu Abramo, Partido dos Trabalhadores, 2018) Translation Renata Santos de Morales and Fernanda Martins Cover Design Marcelo Giardino We believe that knowledge is a public and common good. 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INDEX ACKNOWLEDGEMENTS ...........................................................................................9 FOREWORD, by Marcio Pochmann .........................................................................11 PRESENTATION, by Dilma Rousseff........................................................................13 A FAIRER, MORE INCLUSIVE BRAZIL WITH OPPORTUNITIES FOR ALL ......17 The social axis: social inclusion, reduction of inequalities and access to rights boosted a wide internal market of mass consumption .........................19 Basic and universal social policies ............................................................................23 Education as a strategic priority ...........................................................................................23 Public health and the changes to a quality Unified Health System ..............................................................................................28 Popular Housing and the program Minha Casa, Minha Vida ............................................31 Regional development and reduction of inequalities ........................................................33 Agriculture, family farming and agrarian reform ...............................................................35 The records of agricultural production ............................................................................35 Investments in family farming and agrarian reform .....................................................37 Consequences of the coup in Agriculture and in the Countryside ..................................39 Democracy and popular participation ...................................................................40 3 The cultural policies of the Democratic State ........................................................43 Public policy of state of corruption prevention and combating .......................................................................................44 The Federal Government and Public Security .......................................................47 Sustainability and protection to the Environment................................................52 The reduction of external vulnerability and the sovereign international insertion .............................................................54 Some words on National Defense .............................................................................57 Public investment and the induction of investments ...........................................59 Management of strategic natural resources ..........................................................62 Expansion of credit and public bank activities ......................................................62 The “Mito da gastança” and fiscal responsibility ...................................................65 STRUCTURAL LIMITS TO THE NEW STANDARD OF DEVELOPMENT ...........69 Financialization, increase in inequality and restrictions on democracy ................................................................................69 The labor market and the new technological paradigm ............................................................................................74 Coalition presidentialism and structural reforms ................................................78 A MORE UNEQUAL, EXCLUDING BRAZIL AND OF A FEW ...............................81 The politics sabotaging the economy: the nature of the crisis and the coup .......................................................................81 The coup culture and the impact of the Lava Jato operation ..................................81 Economic factors of the crisis and the inflation in economic policy in 2015 ..................................................................83 Countercyclical measures .....................................................................................................83 End of the commodity supercycle, China’s crisis, tapering and drought .....................................................................................85 Brazil and Brexit .....................................................................................................................86 4 The fiscal crisis of 2015 and 2016: fall of collection or excess of expenditure? ..........................................................................88 Spending spree and tax relief ................................................................................................91 The political crisis: paralysis of the parliament, the politics of “the worst, the better” and impeachment ........................................92 The measure of impacts .............................................................................................94 The dismantling: permanent fiscal orthodoxy and the return to the late neoliberal agenda .........................................................96 Declining ceiling of primary expenditure and public investments (Constitutional Amendment, N° 95, December 2016) .............................................97 Fall of public funding for investments ......................................................................99 Withdrawal of rights and precarization of work relations .....................................101 Passive and subordinated international insertion and austericide .....................103 Limits of economic recovery ..................................................................................104 The attack on democracy and the fragilization of the institutions ........................................................................106 The coup ....................................................................................................................106 Selective State of Exception .....................................................................................108 The criminalization of politics and the crisis of the political representation system .....................................................................109 BRAZIL BACK TO THE FUTURE? .........................................................................111 Scenarios and trends for 2018 ................................................................................111 The coup within the coup .......................................................................................112 Final considerations ................................................................................................115 REFERENCES ...........................................................................................................125 ABOUT THE ORGANIZERS ...................................................................................129 5 ACKNOWLEDGEMENTS THIS TEXT WAS produced based on internal discussions and contri- butions from the staff of the Workers’ Party (PT) in the Senate, from the group of economists of the Lula Institute (IL1) and the Perseu Abramo Foundation (FPA). It was coordinated by Aloizio Mercadante. The base text and the final edition was made in partnership with Marcelo Zero, with the critical reading and contributions of Danilo Molina, Jorge Messias, Ricardo Carneiro, Jorge Mattoso, Ladislau Dowbor, Tereza Campelo, Pedro Rossi, Guilherme Mello, Marcio Percival, Marcio Pochman, Es- ther Dweck, Luiz Antonio