Page 12 - ARUBA TODAY

A12 WORLD NEWS
Thursday 15 June 2017
Brazil’s crisis is stalling economic reforms seen as crucial

By STAN LEHMAN of dozens of the country’s laws and allow companies people,” said Joao Cayres, tic product expanded by 1
LILIANA MICHELENA elite. The politicians also to outsource more work director of the Central percent in the first quarter
Associated Press face an impending dead- and hire temporary work- Workers Union, which rep- of this year as compared
SAO PAULO (AP) — Work line: next year’s October ers for longer — potentially resents over 7 million peo- to the last quarter of 2016
longer hours. Get fewer thanks in part to bumper
benefits. Retire years later. harvests of soy and corn.
Those are the ingredients It was the first time GDP
of the bitter medicine Bra- had grown after eight
zilians are being asked to consecutive quarters of
swallow as a cure for the contraction, ending Bra-
country’s moribund, over- zil’s worst recession in de-
regulated economy. cades. The economy has
It would be a tough sell un- been dragged down in
der any conditions, but it’s large part by a slump in
even harder because few global prices for its com-
trust the politicians trying to modities.
pour it down their throats. Temer also notched a vic-
And a wave of corruption tory last week when Brazil’s
scandals that threaten to top electoral court voted
topple even the president narrowly to reject allega-
could water down, if not tions of illegal financing
sink, any cure. in the 2014 presidential
President Michel Temer campaign. He could have
finds himself in a dilemma: been ousted if it had ruled
He needs the economic otherwise.
reforms to boost his cred- Risk consultancy Eur-
ibility — and perhaps even asia said Temer’s breaks
to avoid being ousted over wouldn’t be enough to
a flurry of corruption alle- A woman looks at job postings in downtown Sao Paulo, Brazil. Some 14 million Brazilians are un- get the existing pension
gations. But his credibility employed, or 13.7 percent of the workforce, up from 10.9 percent at the same period last year. reform measure through.
and that of his allies is so (AP Photo/Andre Penner) “A stripped-down version
low that few Brazilians trust elections. reducing the number of ple. of it is likely, although even
them to do what’s nec- “The only thing that ap- jobs with full benefits. Business-minded econo- then close to a toss-up,”
essary to expand the job pears certain is that the Temer also wants workers mists argue that current la- wrote Christopher Gar-
market and get people reform agenda has been to contribute longer before bor laws discourage hiring. man, head of Brazil analy-
back to work. compromised,” said Silvio they receive pension ben- And the generous benefits sis for the group.
Congress — and action on Campos Neto, an econo- efits. Many public workers for retirees are taking an Some 14 million Brazilians
the reforms — has all but mist at Tendencias, a Sao in Brazil now can retire at increasing chunk of the are unemployed, or 13.7
come to a halt in recent Paulo-based consultancy. age 54 with nearly full ben- country’s gross domestic percent of the workforce,
weeks after a recording “The survival of this govern- efits. The reforms would set product. up from 10.9 percent at
emerged in which Temer ment is uncertain, and this a minimum retirement age “The economy won’t col- the same period last year.
apparently endorses the has a negative impact on for the first time in Brazil, lapse if Congress fails to Thousands of public work-
payment of hush money to the resumption of invest- at 65 for men and 62 for approve the reforms, but ers are not being paid on
a former lawmaker impris- ments.” women.The proposed cuts its recovery will be slow time, or at all. Among them
oned on money laundering Business leaders and top are one reason Temer’s and full of uncertainty,” Ri- are the chorus, orchestra
and corruption charges. economists argue that approval rating is below cardo Ribeiro, of Sao Pau- and ballet at the Municipal
He has also been accused reforms are needed to 10 percent in many polls, lo’s MCM Consultancy. Theatre of Rio de Janeiro.
of accepting bribes. He convince investors to start giving him no political le- Temer, who denies wrong- They plan to ask theater-
denies wrongdoing, but pouring money again into verage beyond the doors doing, argues he can still goers for donations of
he could soon face formal Latin America’s largest of congress, where his ner- deliver the reforms. canned food and house-
charges. economy, which is ten- vous allies hold a majority. At a meeting of business hold goods as they enter
The country’s political and tatively emerging from a Unions staged an April 28 leaders on May 30, he in- for the season-opening op-
business class has been dis- deep recession. general strike that brought sisted the economy was era “Carmina Burana.”
tracted, when not terrified, They’ve been backing Te- much of the country to “on the right track” and Renata Gouveia, a
by a stream of revelations mer’s proposed reforms a halt, and they promise promised to leave “the 19-year-veteran ballet
about bribery, kickbacks that would lengthen the more action. house in order” for the next dancer at the company,
and general corruption legal work day, let agree- If Temer doesn’t listen, “we president. spends her nights making
centered on the national ments negotiated be- will once again stop Brazil Two days later, he got a truffles to sell and is design-
oil company, Petrobras, tween employees and and then maybe Brasilia rare piece of good news: ing and selling her own
that has led to the jailing bosses override some labor will hear the voice of the The country’s gross domes- dancewear.
Venezuela raid leaves 23 detained, buildings in shambles “Out of something terrible,
I’m trying to take out the
positive, working in things
CARACAS, Venezuela (AP) Residents at the Los Verdes through a metal yellow rorists” were detained for I never saw myself doing,”
— Venezuelan state se- complex in Caracas say gate leading to the build- their alleged involvement she said.
curity has detained nearly officers fired weapons, de- ing. in an attack on a national Talk that the economy is
two dozen people alleg- stroyed elevators, broke Opposition leader Ma- guard captain and three improving is “a joke,” said
edly involved in violent acts doors and windows and ria Corina Machado says sergeants.Two months of Jose Augusto, a 53-year-
against officers during an shot to death at least one the raid amounts to “state political upheaval in Ven- old handyman who came
overnight raid that left sev- pet dog. terrorism.”Interior Minis- ezuela have left nearly 70 to the Ministry of Labor in
eral apartment buildings in Witness video showed an ter Nestor Reverol says 23 dead, thousands detained Rio de Janeiro recently
shambles. armored truck plowing people identified as “ter- and hundreds injured.q looking for work. q