Brazil: Lula Will Have Mixed Economics Team of Leftists and Conservatives
Despite being one of the most leftist presidents South America has ever had, Lula is actually forming a mixed economics team to handle Brazil's floundering economy as he prepares his transition as the next president of Brazil.
According to Bloomberg, left-leaning economists Guilherme Mello, Guido Mantega, and Nelson Barbosa will be part of the upcoming government's transition team. However, Lula is also adding a couple of conservatives in former Central Bank chief Persio Arida and Andre Lara Resende.
Brazil is experiencing an economic fallout after Bolsonaro administration's mishandling of the COVID-19 pandemic. Resende is seen to help restabilize that as he helped design a plan that stabilized the Brazilian economy back in the 1990s.
Meanwhile, Arida is an orthodox economist well regarded by the market, and his and Resende's appointments to the team were lauded by investors.
Vice President-Elect Geraldo Alckmin Says Mixed Economics Team Will Complement Each Other
Vice President-elect Geraldo Alckmin spoke to the media after the economics team was announced. Questions regarding their opposing views were raised, and the vice president-elect answered, "They don't have opposing views. They're complementary."
According to Reuters, Alckmin also stated that the people involved in the transition will not necessarily join the Lula administration when the new president is inaugurated on January 1, 2023.
READ NEXT: Brazil Election Results: Lula Beats Jair Bolsanaro After Controversial Race, Brazilians React
The vice president-elect also added that "some of them are expected to be further appointed by Lula to Cabinet posts."
Lula's transition team give an idea of how he will be conducting his economic policy. While his first two terms saw a huge economic boom that coincided with a surge in demand for commodities, Lula will be facing a harsher global economy, as well as a fiercer political opposition. The Associated Press pointed out that he will have "limited room to maneuver with a strained government budget."
Who Are the Members of Lula's Economics Team
The names reported in Lula's economic team are regarded as economic heavyweights, though the president-elect has still not announced who among them will be serving as his Minister of Finance.
Guilherme Mello is a left-leaning economist who previously led the team drafting economic proposals for Lula. He is an economics professor and is the Workers' Party's resident economist.
Meanwhile, Nelson Barbosa served as the finance minister under President Dilma Rousseff.
The third leftist in the team, Guido Mantega, also served as finance minister under both da Silva and Rousseff. Many see him as the weakest link as critics pointed out that he was the one responsible for Rousseff's economic measures that led Brazil into a financial crisis.
Finally, Arida and Resende are the two conservative economists who helped Brazil's economic recovery in the 1990s. They were part of the so-called "Real Plan" that saw the implementation of a new Brazilian currency and tamed hyperinflation.
Despite being conservative, Arida is known to be close to Vice President-eleck Alckmin, a known leftist.
READ NEXT: Lula: Former Brazilain President, Current Presidential Front-Runner, and Secret Billionaire?
This article is owned by Latin Post.
Written by: Rick Martin
WATCH: What Lula's Victory Means for Brazil's Economy - Bloomberg Markets and Finance
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!