A political effort to revive the poor state has lessons for the country
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The
Palace of Lions, which commands São Luis, the colonial era capital of
Brazil’s north-eastern Maranhão state, from a bluff overlooking the sea,
has seen many invaders come and go in its 400-year-old history. But
none quite like its latest conqueror, state governor Flávio Dino.
The Communist Party of Brazil politician vanquished in elections last
year one of Latin America’s longest running political dynasties, the
Sarney family. With its members occupying some of Brazil and the state’s
most powerful political positions over five decades, the family had
become a seemingly immovable part of Brazil’s traditional oligarchy.
But
now, 10 months into his four-year term, Mr Dino is facing an arguably
bigger challenge — how to fulfil his election promise to lift the
fortunes of Brazil’s second-poorest state even as the country suffers
its worst recession since the 1930s.
“[The state’s] fiscal situation remains stable and we believe that
next year should be less negative for Brazil,” Mr Dino, a former judge,
tells the Financial Times in the palace’s boardroom, whose
air-conditioning provides relief from the searing tropical sun. “But if
the economy gets even worse, that’s when there could be a problem.”
With Brazilian national politics in turmoil thanks to policy paralysis and the economy
set to sink 3 per cent this year, Mr Dino’s victory is an illustration
of the desire for positive and clean governance among voters
disenchanted with corruption and poor services, say analysts.
As in Maranhão, Brazil’s ruling coalition led by the Workers’ party,
or PT, is facing political exhaustion after nearly 13 years in power,
bogged down by a giant corruption scandal at state-owned oil company
Petrobras. The opposition parties, meanwhile, rather than forging new
ideas to appeal to voters, are sabotaging a much-needed government
austerity programme to balance Brazil’s budget and restore the
conditions for growth.“Brazil is immersed in a three-dimensional crisis — political, economic and ethical,” wrote former central bank governor Carlos Langoni in a report, the Brazil Memo.
In contrast to the negative politics at the national level, Mr Dino in his election campaign last year sought to unite the opposition by setting aside ideological differences — his vice-governor is from the pro-business PSDB party — and winning over voters with a programme to tackle poverty and economic stagnation in the state. He also came with an updated view of leftist politics in Brazil — acknowledging the importance of the private sector to generate wealth.
“He is pro-market,” says Ricardo Zimbrão Affonso de Paula, economist at the Federal University of .
The heavily moustachioed 85-year-old was Maranhão state governor in 1966, president of Brazil in 1985, and until recently head of the senate. His daughter Roseana has served four terms as Maranhão governor, her last ending in 2014.
The family declined to be interviewed but claims
to have attracted R$130bn (US$34bn) in private investment to the state,
mostly in big aluminium, oil, pulp and port projects. Critics argue the
Sarneys’ bet on big industry did not alleviate poverty. Maranhão’s UN
human development indicators (HDIs) are the second-worst in Brazil, below the Philippines and El Salvador in 2013.
To combat this, Mr Dino said he was introducing programmes such as
“More HDI”, bringing fresh water supplies to the state’s 30 least
developed towns, as well as “More Asphalt”, which will seal roads in the
interior. There are plans to build seven regional hospitals by next
year, 300 new schools, and recruit police to combat a 330 per cent
increase in the murder rate. Mr Dino claims he is paying for this and more by eliminating corruption and excess. He says he saved R$68m in palace expenses just by cutting champagne, caviar and lobsters at state banquets and reducing gubernatorial security by half.
Brazil targets fiscal deficit as economic gloom worsens
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Despite this, the state government in September received a vote of confidence from Moody’s, the rating agency, which said Maranhão’s relatively low net debt to current revenue of 41 per cent, gave it “ample room” to deal with the sliding real.
With the state’s commodities exports set to slow further, Mr Dino’s still high approval ratings of 77 per cent remained under threat, said Mr Zimbrão of Maranhão federal university.
But voters seem willing to give him the benefit of the doubt, for now.
“I voted for him because he is new,” says Maria Ferreira, a maid begging for lunch money near the Palace of Lions. “Maybe he can do something. The Sarneys did nothing.”
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