[Marxism] ula and Snow Close Ranks amid Crisis

Patrick Bond pbond at mail.ngo.za
Thu Aug 11 09:42:35 MDT 2005

----- Original Message ----- 
From: "Walter Lippmann" <walterlx at earthlink.net>
To: "Activists and scholars in Marxist tradition"
<marxism at lists.econ.utah.edu>
Sent: Tuesday, July 12, 2005 10:00 PM
Subject: Re: [Marxism] ula and Social Movements Close Ranks amid Crisis
> the domestic bourgeoisie of a backward- i.e semicolonial-
> country can still have interests that do not overlap with
> those of the international bourgeoisie...

(Special applause from Snow for being more virtuous than the IMF required.)


This Department of Treasury press release may be viewed at:

   The Honorable John W. Snow

   Prepared Remarks

   Rio de Janeiro, Brazil

   August 2, 2005

   Thank you, it's a great pleasure to be here. I would like to thank
   Ambassador Botafogo and Cebri for hosting me today, and CNC for
   providing this venue. I'm happy to be visiting Brazil at this time of
   productive economic partnership between our countries.

   The United States celebrates the good economic progress that Brazil
   has made in recent years. Your country is a leader of South American
   economies and a global example of how good policy leads to growth and
   economic stability - two things that have the power to, ultimately,
   change millions of lives.

   Only economic growth raises living standards over the long-term. Only
   growth creates jobs. By increasing opportunity and decreasing
   struggle, growth improves the human condition and alleviates poverty.

   President Lula and his team are doing a superb job, and my
   relationship with Minister Palocci is one that I value very much. He
   has an inspiring long-term vision for this country's economic health,
   and I enjoyed the chance to see him in Brasilia yesterday.

   Minister Palocci and I feel honored to work with each another on
   behalf of the people of both our countries. As I'm sure you know, we
   have consulted regularly on policies that promote economic growth
   through the U.S.-Brazil Group for Growth, which was established at the
   first summit between President's Bush and Lula in 1993 with the
   purpose of advancing pro-growth policies in both countries.

   Today Minister Palocci and I will sit down to hold the 4th meetings of
   the U.S.-Brazil Group for Growth. We will talk about our economies and
   the global outlook, the benefits of trade for growth, infrastructure,
   and research and innovation.

   Because of my previous experience with a global transportation
   company, I have a special interest in the subject of infrastructure. I
   understand how important it is for enabling growth and job creation.
   We have come to Brazil with some ideas for facilitating the
   development of high-quality infrastructure projects, especially by
   catalyzing private investment. It is my hope that we can work
   together to advance some productive initiatives to benefit Brazil and
   the rest of the Hemisphere.

   I had the pleasure of meeting with President Lula yesterday as well,
   and we had a good conversation about the good economic policies that
   the government has put in place.

   I can't help but to be optimistic about your future. There is a clear
   record of achievement in stabilizing the economy, withstanding
   considerable market turbulence and igniting growth.

   You know the facts, but they bear repeating: Brazil's growth rate last
   year was 4.9%--the largest growth rate in 10 years. Your current
   account surplus reached 1.9% of GDP in 2004, driven by a record trade
   surplus of $33 billion (5% of GDP). Your export performance is
   continuing in 2005: in the 12-month period leading to June 2005,
   Brazil's exports totaled $107 billion--an historic peak.

   Your central bank has taken strong action to reign in inflation.
   After peaking at 17.2% in early 2003, trailing 12-month inflation has
   been brought down to 7.3% as of June.

   In 2004, Brazil's net public debt/GDP ratio registered the first
   annual decline since 1994, ending the year at 52%, down from 57% at
   end-2003. The ratio declined further this year to 51% in June.

   These economic indicators are positive, but of course they do not tell
   the whole story. The most important story is the one about the
   improvement in the lives of the Brazilian people.

   More people in Brazil are working. The unemployment rate is 9.4%, down
   from 11.7% a year ago and stands at the lowest level since October
   2001. And over the past 12 months, 1.45 million jobs have been

   Credit reforms passed last year by congress helped lead to credit
   growth to individuals of 30% last year--the highest growth rate since
   the 1996 when the data was first published.

   Real wages in the manufacturing sector rose 10.5% in end-2004 compared
   to end-2003--highest rate since 1995.

   Consumption growth last year was a strong 4%.

   And these are the numbers that illustrate the improving human
   condition for the people of Brazil. Brazil's policies have met the
   most important tests: they are producing results, their benefits are
   widely shared, and they build a foundation for the long term.

   Brazil today is clearly steering its own course. Brazil made the
   sensible decision not to pursue another IMF program which was not
   needed. And they are repaying the IMF early - an unmistakable sign of

   The Brazilian example is a counterpoint to those who argue that
   market-oriented reform is too hard, reform doesn't work, or that
   reform is part of the problem.

   With lackluster growth in some of the largest economies in the world -
   in Europe and Japan - Brazil's contribution to growth is welcome. It
   is important. And it is an example to other countries.

   One of the highlights of my visit was a meeting I had with venture
   capital investors and recipients yesterday. They hold the promise of
   injecting a lot of dynamism and energy into the economy in creating
   jobs and growth well into the future. Venture capitalists are people
   who are risking their assets on Brazil's future, so I was pleased to
   see that they are betting on success.

   The city of Vitoria in Espirto Santo is another example of progress in
   Brazil. That's why I am going to visit there during my time here in
   Brazil. I want to see the remarkable results of Governor Paulo
   Hertung's reforms. His fight against corruption, tax and budget
   reforms, and other improvements to the investment climate have turned
   that city around. I want to go there to highlight what is possible if
   there is determined leadership committed to letting entrepreneurs
   create opportunities and jobs.

   Our economic relationship, in pursuit of growth, has evolved over
   time. Trade between our two nations has expanded significantly. For
   example, remember that trade between Brazil and the U.S. was $13
   billion back in 1990, but totaled $35 billion last year.

   The investment flows between our economies go in both directions,
   which is so important. U.S. FDI in Brazil totals $33 billion (up from
   an accumulated U.S. direct investment in 1990 of $14 billion) and
   Brazilian companies have direct investment positions in the U.S.
   totaling $1.3 billion (compared to total Brazilian direct investment
   in the U.S. in 1990 of $377 million.)

   In some sectors, U.S. investment has made a major contribution to
   Brazil's productive capacity. U.S. accumulated investment in
   manufacturing is $12 billion (including $3.5 billion in the chemical
   industry) and $7 billion in the financial sector.

   Trade and investment ties have built a strong partnership between our
   two nations, and the potential for the future is great.

   It is also important that we work together to maintain the integrity
   of the global financial system by keeping dirty money out of the
   financial sector. Brazil is a member of the Financial Action Task
   Force, which is the premier international body that sets global
   standards to combat money laundering and terrorist financing, and has
   taken a very active role in the organization.

   With the foundation laid by good economic policies, Brazil can become
   a sustained growth engine for the region and for the world, and I am
   convinced that closer integration between our economies and within the
   Hemisphere is key to boosting both Brazil's growth and our growth.

   Integration goes beyond merchandise trade and investment. Some of the
   most important connections between our societies encompass exchanges
   and educational opportunities that benefit our young people. There
   are ­­­­­­­7,800 Brazilian students currently studying in U.S.

   Our connections help both our societies become more productive through
   R&D flows in both directions.

   One of the most important connections is the flow of remittances to
   supplement the earnings of Brazilian families. Last year, Brazilian
   workers living abroad sent home $5.6 billion--much of it coming from
   the U.S.--to relatives and friends here. This can be an important
   stimulus for consumption and investment in this country, and
   ultimately leads to growth and job creation.

   Thank you so much for having me here today. I hope the Brazilian
   people know how much confidence we have in you, and that the United
   States will be a partner in facing the challenges and risks ahead.

   When I return home, and whenever I meet with economic leaders from
   around the globe, my message will be clear: Those who question the
   benefits of market-oriented reforms should come to Brazil.

   Thank you.

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