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The ANNALS of the American Academy of Political and Social Science
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Lula’s Political Economy: Changes and Challenges

Paulo Paiva

Center of Development and Regional Planning (CEDEPLAR) of the Federal University of Minas Gerais and LBJ School of Public Affairs of the University of Texas

Promoting sustainable economic growth with social inclusion represents a challenge for Luiz Inácio Lula da Silva, the former metalworker and leader of the socialist Workers’ Party, who won the Brazilian presidency his fourth try. The election of Lula has raised expectations at home and abroad. Although the government scored impressive fiscal victories by following ultra-orthodox macroeconomic policies, its performance in achieving economic growth and social improvement has been less than brilliant. Written in February 2004 to assess his first year in office, this article examines the challenges that Lula initially had to overcome and outlines the main points of his political economy. By the end of the first year, few great changes had taken place, except perhaps in his political party’s manner of governing. Early in Lula’s presidency, his policies were quite similar to those of earlier governments.

Key Words: Brazil • Latin America • economic development and social inclusion • Lula’s administration • Brazilian economy • economic growth and social justice • Brazilian politics • new corporatism • economic reforms

The ANNALS of the American Academy of Political and Social Science, Vol. 606, No. 1, 196-215 (2006)
DOI: 10.1177/0002716206288952
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