Brazil - Brazzil Mag - Brazil's Lula Says He Is Creating 12 Times More Jobs Than Cardoso

In another interview for radio stations on Wednesday, December 7, (the third in a series) Brazilian President Luiz Inácio Lula da Silva declared that the government is not divided about economic policy. He said the present policy was correct and had good results.

The President also came out in favor of maintaining the primary surplus target at 4.25% of GDP. Lula added that there were not going to be changes in economic policy because of next year's elections.

He pointed out that the country is growing with low inflation, while both exports and imports have risen. He also said that his administration has been creating an average of 108,000 jobs per month, twelve times what the prior administration did.

Lula said the increase in employment was not only due to economic growth, but a sharp improvement in income distribution resulting from the government's policies of more credit, microcredit plans and the strengthening of family farming.

In conclusion Lula said the government intends to continue reducing taxes in 2006. He said lower taxes generate more tax revenue because there is less tax fraud.

wrong !
written by Guest, December 09, 2005

May be 108000 monthly new jobs are correct but far short of the 10 millions he promised during r his first mandatze, before and after the elections.

Concerning the GDP growth, below is a statement made by Paulo Skaf, President of the FIESP on December 1st :

- Skaf emphasized the need for a "management shake-up" to eliminate the "wastes" in government spending.

- The document also criticizes "the excessive tax burden, the appreciated and volatile exchange rate, and the dearth of investments in infrastructure, forming an absolutely adverse macroeconomic scenario, in the countercurrent of successful development experiences."

- "In 2005, we are going to have a result that should be between 2 and 2.5%, as against last year's 4.9%. It's half the average growth rate worldwide, a third of the average for the emerging countries, and a quarter of what Argentina's growth rate will be this year. It's lamentable,"

But Lula, as usual, is proud of his failures and mismanagement, where he excels !

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