Changes in Brazil

por The Winners
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Article written by Michel Temer, ex-president of Republic

The democracy is the supreme determination of our constitution: from all the population comes the power. The government should obey this institutional order. Since May 2016, I was guided to this orientation during my mandate in the presidency of the republic.

This is the reason why the rulers should obey to the general desire, in the direction of everyone’s well being and to provide the development of the country to all. On the way of the Law, I started a dialog with all sectors willing to talk about how to promote the growth of our country, finding solutions for the Brazilian problems. And there were many, in all areas.

The finances were destroyed.

The main recession of all times needed to be reverted. Actions to move on the economy were paused. Important legislative changes were not even planned.

There was not even a sketched project of the country in the government.

Watertight actions in isolated ministries were uncoordinated, generating smoke but never heat. It was needed work, methodology and organization. We started our task working from Monday to Monday for Brazil. 

I heard a lot. And hearing we created a dynamic government, able to propose structural changes, that establish new paradigms for the country in the public administration. We reestablished permanent dialog with the National Congress. Convincing and articulating several social factors, we managed significant victories.

We reformulated laws in the economical essential sectors: we reduced the bureaucracy in the notaries from Brazil, we improved the ambiance for employees and employers. On top of that, we created new opportunities of investments, job creation and income for the Brazilians. In only two years and a half we changed Brazil for better.

As I said above, I assumed the presidency of Brazil in May 2016. Since then I realized the necessity of undertake essential reforms in Brazil. All of them lined for social and fiscal responsibility. When I started my mandate, GDP was negative of almost 4%, I proposed to the National Congress a limit of public expenses, in which a certain time the expense would correspond to the collection.

I started with a simple principle: no one can spend more than earn. If I got five thousand reals and spent 10 thousand per month at the end of the year I will have a preliminary ruling deficit in my economy. The same phenomenon happens with the country. Rigorously we can only spend what we collected.

That is why we proposed the amendment to the constitution that guaranteed the alluded limit for all public expenses. Naturally without prejudice for essential sectors, such as: health and education. When suggested, we estimated a twenty years period to achieve the objective of spending what is collected.

We predicted the possibility of its revision in the 10th year with fundamentals and hope that in this period the goal would be achieved for the next twenty years. After proposed, we immediately had the support of the National Congress. The demand of approval are 308 votes from the Chamber of Deputies and 49 votes from Federal Senate. With that we achieved much more than the mentioned needed votes. It was approved and promulgated. 

Already in 2019, we took care of fixing the public deficit in 179 billion reals. We accelerated the project from the previous government. At the end of 2017 the alluded deficit decreased, resulted in 159 billion reals. For 2018 budget, we fixed the deficit in 159 billion reals and at the end of the year it was 139 billion reals.

This result allowed us to forecast this deficit in 2019’s budget, which in this year didn’t pass 90 billion reals. All indicated the correction of constitutional amendment, which fixed the possibility of review in the 10th year. This is because the sequence described reveals a reduction of expenses and consequently increase of collection. With this trend, the collected will be what is spent. Hence, the correctness of our proposition on the economic plan. 

I would like to reaffirm, that we assumed the government in May 2016, and the GDP was almost 4% negative. In December 2017, a year and seven months after, the GDP was positive in 1.1%. During this period our objective was to reduce the Selic and inflation rates. The first mentioned was in 14.25%, we reduced to 6.5%. The second was almost 10%, and we managed to deliver 3.75% of inflation. The confidence in our economy allowed us to reach these numbers.

We did more. We moved towards the reforms. Firstly, the labor modernization adapting the work legislation to modern times. As all the reforms, it generates slowly effects. Is enough to say that it stopped the unemployment, and already in 2018 we could see expressive numbers of employement record cards.

Besides thousands informal activities that contributed to the economic development of the country. This work change had positive results. This was certified in 2019 data, when the signature in the employment record card had an impressive increase. On top of that, the relationship between employees and employers improved and pacified, decreasing the labor litigation and consequently social litigation and the impediment to development.

All these improvements were done with the involvement of business entities and employees. Hundreds of meetings of the Ministry of Labor and Advisers with these associations to build a modern project that is compatible with the common interest of the population. All that without taking any right from the employees.

The changes were done without changing the 7th article of the Brazilian Constitution, the one that mentions the employee rights. The dialog was the essential point in our government.

On the other hand, with privatization and concession we motivated the private initiative to participate in the public management. We even created new sectors to move forward with the Program of Investment Partnerships, called PPI and Advance Program.

With the privatization and concession, more agility was generated in the operations of these services and more funds to the public safes, resulting in successful programs. There is no need to remind all structurative programs and it results. I remind there were many airports, electric power transmission lines, waterways and many others as result of these partnerships.

We recuperated the state-owned enterprises. This companies were in not propitious economic conditions. After the approval of the law that politicians could’t be nominated for it directories, technicians were chosen and cleaned it finances. The same happened to regulatory agencies.

We allowed Brazilians to bring billions of reais deposited in other countries, resulting in generating extra funds of collection, which allowed the states and cities to close it accounts. We allowed frozen resources of Employee’s Severance Guarantee Funds and PIS/ PASEP accounts, and with that moving the economy and bringing justice to the workers.

That was in fact, what allowed us to increase retail sales and with that move the economy.

Simple actions in the social plan brought huge administrative earnings, to improve the expenses with public money and to take action against frauds. We shared the data base of “Bolsa Familia” and of Social Security with the IRS (Internal Revenue Service) Thousands of people that received this benefit were unduly excluded and the government assisted the ones who really needed. With administrative improvements we created the program Progredir, to generate employment as a solution to “Bolsa Familia”. We still managed two increases to the benefit, that was outdated.

With a politic decision we regularized settlements of rural and urban expansion beating all the records from all previous governments together. With more than 280 thousand titles of regularization of the land the new owners didn’t have any interest in incentive invasions.

Actually in my government there were almost no workers or public employees strikes. This happened due to an incentive to pacification and social harmony. With the program “Minha Casa Minha Vida” we paid due debts and located a significant amount for it continuation.

Around 7 billions reals were designated to this social plan, for loans up to 15 thousand reals to Brazilians with small possessions. This was to assist them to establish in their own activities. The government reached two million reais with the loans. 

We did not leave the environment. We improved and doubled the preserved and reserved area in Brazil. Our country has now the main protected area of seas around the world, and besides new parks and expansion of existing parks.

The high school deserved our special attention. A restructure in this sector was desired since more than twenty years ago, and we did it. I remember clearly that this was the subject when I was the president of the Chamber of Deputies in 1997. Many projects were presented, however did were not accomplished.

This is the reason why we did a temporary measure and after converted in law, with the support of more than 96% of all educational sector in Brazil. 

Still, in the social segment we acted in the improvement of rights for disable people and in the politics for women, as well we focused in racial equality. In the first mentioned I remind that the decree that sealed the charge for wheelchairs in trips and the partnership with UNICEF for the creation of accessible referential level and the plan to improve the accessibility in governmental electronic places.

In the initiative for women, the launch of “Rede Brasil Mulher” and the stability for the adopter in comissionable position. In the improvement of racial rights the regulation of quilombola lands and the vacancies of trainees and aprendices for black people, representing 30% of total vacancies oferred for trainees in direct public management, autharchic and foundational.

In international relationships we support the multilateralism in the conviction that the isolationist politics are harmful having in consideration our capacity to provide food and other resources to many countries in the world.

Several times during speeches in ONU we highlighted the necessity of peace between countries and the fight against of isolationism. . The dialog was essential to our government. We executed with the National Congress and the society. It was exactly this formula that allowed us to govern the country, however natural difficulties and the ones created from critical interest.

I would like to highlight that all that was done, was done for constitutional determination. I did nothing more but accomplishing the Magna Law. Knowing that the Executive does not govern alone (this only happens in absolutism and dictatorship) but with the National Congress, legislative (the one that vocalizes the will of the public) and the judiciary that at the mercy of its infamous impartiality solves controversies. Our Constitution deserves accomplishment.

The Constituent of 1987/88, besides the analytic text, was able to express the principles of liberalism, for example with the prestige of the private initiative and the property. With the socialism: the right of food and home and the chapters of social rights were exposed in an extensive and detailed manner.

There is also a long part of the Constituent that guarantees the individual rights (5th chapter of the Federal Constitution). The Constituent, with all reason, wanted to ephasize the idea of democracy, labeling the country as a democratic rule of law. “It had the dignity of the human beings”.

This is the country of changes we expect. That continue to honor the destiny of a country devoted to the progress and development.

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