Voters in Brazil ignored threats to democracy and opted for radical political change, with a shift to the extreme right, with ties to the military, as is always the case in this South American country.
As 2015 approaches its end, Brazilians live a period of extraordinary uncertainty. The recession seems to get worse by the day. Inflation is high and shows unexpected resistance to tight monetary policies applied by the Central Bank. The sluggish international economy has largely neutralized incentive and the strong devaluation of the domestic currency could represent a reality to exporters and to producers who compete with now more expensive imports. After an initial resistance, employment levels began to fall.
As the political situation in Brazil appears to be reaching a state of unstable equilibrium, or more bluntly, as it is transformed from instability to impasse, the economy continues to deteriorate.
The dream of electing Brazil’s first black president, an environmental activist from the Amazon jungle, lasted only 40 days and was frustrated in Sunday’s elections. In the end, it is the two parties that have dominated Brazilian politics for the last 20 years that will face off in the second round of voting on Oct. 26.