Written by Vinicius exclusively for SouthFront
Brazil, the 8th largest economy in the World is currently undergoing many problems as the country no longer enjoys favorable international trade conditions for its products and is now having to pay for years of high expenditures.
For many years Brazil enjoyed the benefits of high commodity prices and took advantage of the goodwill of investors, what enabled the country to raise cash in the markets. However, as the favorable scenario gave way to lower demand and prices for commodities, less credit, and lower investments, the country started facing huge problems in financing its debt.
As much as it is true that the Brazilian debt is not as big as the one of many western nations, as a percentage of GDP (around 60%), it is also true that it is very expensive to service. Right now interest rates have risen to 15% a year, what provokes the consumption of all federal disposable budget resources on debt payments. As a consequence, all investments, and many federal programs have been stopped.
Coupled it the economic hardships, Dilma Roussef´s government faces the largest corruption scandal ever exposed in the country and a major dissatisfaction of the population with an approval rating of only 8% of the population.
Many policies developed during the Workers Party´s administration, since 2002, have resulted in the creation of a strong division in the Brazilian society. Agricultural producers, middle class workers, whites, traditional families, Christians, and many other groups have been the target of hate movements and legislation from the Worker´s Party governments, which claims to hold a leftist ideology. In the other hand, the war on corruption and amelioration of life conditions of the population have not been delivered and almost half of federal budget is directed to paying debts to private banks.
All those shortcomings from the administration of the Worker´s Party have produced a great dissatisfaction on the population which culminated in President Roussef´s current term. Many popular and political movements now demand that the government be impeached and even request military intervention.
As Brazil is an important pillar of the BRICS arrangement, an eventual fall of President Dilma´s government might have important geostrategic consequences, especially considering the importance the country has in supporting independent nations such as Venezuela, Bolivia and Ecuador. A fall of the Brazilian government will be beneficial to the United States as it will weaken not only the BRICS block, and especially Russia, but also the independent South American countries.
It is clear that movements which wish to topple the government are very well organized. On the other hand, their demands are legit and the government ignores them, disregarding the popular dissatisfaction with current policies. There is, therefore, a feeling that this situation is unsustainable and that at some point the government will fall. We will have to wait and see how this process will evolve.