The Foreign Service Journal, April 2006

The latest of these scandals has proved particularly damaging. Dub- bed the “Mensalao” (roughly “The Big Payoff”) when it erupted last year, it has titillated Brazilians with allega- tions of payments of as much as $13,000 a month from top officers of the ruling Partido Trabalhador (Workers’ Party) to buy votes from members of Congress for pending legislation, and the air- port detention of a PT official with $100,000 stuffed in his underwear. Senior party leaders have been forced to resign. The scandal has shaken the standing of the heretofore very popular Lula presidency and blown a huge hole in what had been the party’s reputation for clean govern- ment. Public approval for Lula, the former metal work- er, union leader and four-time presidential candidate, has sunk from a peak of 77 percent after his smashing elec- toral victory in 2002 to around 50 percent. Lula himself has not been directly linked to any illegal acts so far, but the scandal has cast into doubt his prospects for a second four-year term in national elections this October. On the positive side, even with his political problems, Lula has man- aged to keep control of the PT in the hands of the moderate wing, main- taining intact his economic program. But the scandal has effectively stopped needed work on tax, social and labor reforms in the Congress. This is a serious blow. Despite undeniable progress over the past 12 years, Brazil still needs to implement a long list of reforms if it is to realize its potential and provide a better life for its poorer citi- zens. Its savings rate is too low, its real interest rates are too high, and basic health and education needs remain underfunded. Far too many Brazilians continue to sub- sist on a large, informal economy (estimated at about 40 percent of gross domestic product, according to some F O C U S A P R I L 2 0 0 6 / F O R E I G N S E R V I C E J O U R N A L 29 On broad geopolitical issues, the U.S. and Brazil have always been generally in step. The Embassy Plan Overseas Insurance Personal Auto & Contents Coverage Experience that helps you avoid the pitfalls of a highly complex business. Repeat business that results from providing what’s best for the customer not the agent nor the insurance company. Since 1969, Harry M. Jannette International has provided dependable coverage with U.S. carriers with a financial rating of A+ or higher to thousands of Foreign Service Personnel worldwide. Thus you gain the broadest U.S. terms and conditions and flexible value limits often not available from other insurance carriers. MAJOR CREDIT CARDS ACCEPTED: SEE OUR WEBSITE APPLICATIONS Harry M. Jannette International, L.L.C. 8111 LBJ Freeway, Suite 585 Dallas, Texas 75251-1334 Toll Free (800) 256-5141 (972) 783-4915 Fax (972) 783-0545 E-mail: hmjintl@jannetteintl.com www.jannetteintl.com • WORLDWIDE COVERAGE Fire, theft, comprehensive and collision protection are available at foreign posts. • U.S. AUTO LIABILITY Available for short term on home leave, change of assignment, and new auto purchase prior to foreign departure. This coverage must be issued in combination with an “Embassy Plan” policy. • FOREIGN LIABILITY Contact your post for compliance with local laws, Excess liability limits are available over local liability coverage. • PERSONAL COVERAGE Household goods and transit, valuable articles, personal liability, life insurance . • EMPLOYEE ASSOCIATION INSURANCE Employee association insurance Including directors and officers. Your Reliable Choice