Dear Delegates and Faculty Advisors,

Transcription

1 Brazilian Cabinet

2 Dear Delegates and Faculty Advisors, Welcome to ILMUNC! My name is Eric Zhu, and I m honored to be serving as your chair for the crisis committee. I m incredibly excited for conference this year and can t wait for y all to see what we have planned for the weekend. Karen Chen Secretary-General Jyothi Vallurupalli Director-General Hannah Kanter Chief of Staff Mara Levy Co-Chief Operations Officer Roy Lan Co-Chief Operations Officer Firstly, a little about myself. I m a sophomore studying Neuroscience with minors in Health Care Management and Public Policy. I m from glamorous, cornfed Ohio, but have lived all over the United States, and I was actually born and lived a few years in Beijing, so I m very excited to be returning back the country and culture I was born in! On campus, I m an associate editor for SYNAPSE, Penn s undergraduate healthcare journal, I m on the Health, Education, and Welfare team for Wharton Public Policy Initiative, and I m a member of the Pi Kappa Alpha Fraternity. And of course, in our very own International Affairs Association, I ve been on the competitive travel team for two years now, and I ve loved every moment of it. We re about to dunk you knee deep into one of the most revolutionary times in Brazil s history, and in the midst of political scandal, economic crisis and national unrest, you collectively must find the solutions to the challenges facing the nation. JP and I can t wait to see how you work collaboratively toward these mutual goals (or not). If you have any questions or concerns at all throughout the course of the conference, please do not hesitate to reach out to me at any time. I look forward to seeing you this spring! Cordially, Eric Zhu Chair,, 2016 P.O. Box S. 40th Street Philadelphia, PA secgen@ilmunc-china.com

3 Dear Delegates and Faculty Advisors, Welcome to the greatest crisis committee you ll ever see: the, 2016! My name is J.P. Young, and I am honored to be your Crisis Director for what I hope will be an incredible weekend for all of us. The secretariat and staff have been working hard to make this conference the best yet. I hope that ILMUNC is one of the best weekends of your year. Karen Chen Secretary-General Jyothi Vallurupalli Director-General Hannah Kanter Chief of Staff Mara Levy Co-Chief Operations Officer Roy Lan Co-Chief Operations Officer First, let me introduce myself: I m a sophomore studying Economics and Computer Science in the College of Arts and Sciences, and Finance in Wharton. I m from northern Virginia, just outside of Washington, D.C. I love the monuments and free museums, and that every corner of the capital has a small piece of history that is exciting in and of itself. I started participating in Model UN in college, and it has been one of my favorite experiences at Penn so far. I served as an Assistant Director of Intercol, the branch of Penn s International Affairs Association that organizes our competitive team, and I staffed UP- MUNC and ILMUNC, Penn s high school conference, last year. When I m not competing or running committee (or cramming until 3:00 AM), I explore Philly, cook, and keep up with whatever sport is in season at the time (HTTR). When I find a free minute I try to read anything I can grab my hands on, from Tolstoy to the Economist, and anything in between. I am very excited to be working with Eric and all our staffers to make sure this committee is fun for all of us, but also dynamic and challenging. This year we have done everything we can to make this committee excellent by everyone s standards. We wanted to have debate surrounding a fresh topic to give all of you as much creative freedom as possible. Please read the background guide and seek additional research, since the committee can only be as fantastic and engaging as you make it. Eric and I are confident that you ll make this committee something special. If you have any questions or concerns about anything before conference feel free to reach out to us. I can t wait to meet all of you in March! Sincerely, J.P. Young Crisis Director,, 2016 P.O. Box S. 40th Street Philadelphia, PA secgen@ilmunc-china.com

4 BRAZILILIAN CABINET Topic Summary It s 2016, and things aren t looking up for Brazil. President Dilma Rousseff has the lowest approval ratings since former president Fernando Collor de Mello who was impeached in The Petrobras Oil Scandal has only served to further the country s political crises. Economically, the nation is in shambles. Immense unemployment within the country and decreasing consumer spending contribute to Barclays s prediction of a 4% contraction of the Brazilian economy in 2015 and a further contraction of 3.3% in Members of President Rousseff s cabinet will have to work together to overcome the political crisis, national unrest, rampant inflation, and a ruined economy. With each additional day that goes by without substantial reforms, the public debt grows larger and citizens become more and more restless. by chair s discretion. Out of Committee: When writing crisis notes, please address them to a character outside the committee room. This should be someone you create or have researched who can feasibly give you leverage to enact your crisis plans. Further, notes should be in the form of a letter or memo, and not bullet points. Committee History Economic History before the 21st Century In the late 1960s, Brazil recorded doubledigit growth rates and experienced relative political stability because of military rule. It expanded its industries, and many people moved from the countryside to cities to find work. By the 1980s, Brazil had the tenth-largest gross national product in the world, becoming one of the leading industrial nations. At the time, the country was known as a miracle economy. Rules and Procedures In Committee: The committee will proceed in a manner similar to that of the. Each delegate will be responsible for one ministry, and will be able to exercise that ministry s portfolio. In addition, the ministers will advise the chair, President Rousseff, in the exercise of executive power. The committee will be run in a continuous moderated caucus format with the option to break out for specific moderated caucuses, unmoderated caucuses, straw poll votes, legal tribunals, and round robins, among other break outs as approved Figure 1: Protests in 1964 against the Brazilian dictatorship 1

5 Simultaneously, Brazil was transitioning back The oil crisis of the late 1970s and early 1980s toward being a democracy, shifting away from the that impacted many Latin American countries also military regime that had ruled the country since hit Brazil; Brazil s foreign debt increased as foreign the 1960s. This regime had instituted emergency investment in the country and credit decreased. legislation meant to purge corrupt and subversive Consequently, the country s gross domestic product elements allowing for certain executives to rule by grew only about 1.5% annually from 1980 to decree. In 1978, President Ernesto Geisel started To combat this, In the early 1990s, Brazil tried to repeal these emergency powers by repealing to implement a series of economic reforms, the most the law outlining the banishing of those accused of notable among them was the policy of privatization political crimes. Congress restored political rights to in This was the government s attempt to all those who had lost them since 1961 and enacted shift the economy from state-run monopolies to a a general amnesty in free-market system. However, these reforms were Despite the progress, the nation still faced countered by another period of political instability many underlying problems, especially high inflation. that took over Brazil. President Fernando Collor de Double-digit annual inflation in the 1970s became Mello was elected in 1989 on a platform of economic triple-digit in 1980s and by 1994, had reached 50% modernization and growth. Unfortunately, he was on a monthly rate. As a result of the high inflation, implicated in an influence-peddling scandal in 1992, Brazil enacted policy to increase interest rates which deeply divided the people of Brazil. in 1980, slowing down economic expansion and Even though Collor resigned before being investment. convicted in his impeachment trial, the damage could not be undone. Vice President Itamar Franco Figure 2: Brazil s former president Fernando Collor de Mello became president of a very weak government. Its weakness led to worsening economic problems, namely stagnant economic growth and industrial production and decrease in Brazilians incomes. In 1994, when Fernando Henrique Cardoso, former finance minister, became president, a stabilization program was successfully implemented. It was called the Real Plan, after the new currency introduced to Brazil in the same year, and it laid out a stringent monetary policy and a currency anchor to the dollar. The plan brought inflation down to less than 70% by the following year. It also helped bring 2

6 about a period of unprecedented foreign investment, giving the nation s poor newfound purchasing power. package, cutting $20 billion from the country s huge budget deficit. The vote was a successful attempt by President Cardoso to restore global confidence in Nevertheless, some economic problems Brazil. persisted. In July 1997, Thailand devalued its currency in order to improve the competitiveness of its exports, placing pressure on Brazil, whose economy depending heavily on exports, to do the same. Focus on the Brazilian real increased, causing foreign investors to look closer at Cardoso s yet to be fulfilled reform promises. This included a controversial government austerity plan that would increase tax and cut public spending. As foreign investors started to see the problems History from In 2000, celebrations marking Brazil s 500th anniversary were marred by protests by indigenous peoples. Their protests claimed that racial genocide, disease, and forced labor dramatically cut their population from an estimated 5 million before the arrival of the Portuguese in 1500 to the current 350,000, and urged the government to address these past wrongs. with Cardoso s reform policies, the country was In 2001, the Brazilian government steadily drained of foreign money, continuing through Cardoso s reelection in Later that year, the International Monetary Fund and the Clinton administration declared a plan to aid the ailing Brazilian real with a $41.5 billion rescue announced its willingness to modify a development program because of its potentially catastrophic impact on the Amazon. The government was to spend $40 billion over seven years on roads, hydroelectric projects, railways, and housing in the package based on Brazil s commitment to institute Amazon basin. However, later that year, President the reforms of Cardoso s austerity package. Their purpose was to contain the crisis before it turned fullblown. Unfortunately, the package only temporarily delayed the crisis. In January 1999, investors lost confidence in Brazil s overhauled currency and pulled out after they had suffered major losses in other emerging markets. The Brazilian real plummeted as Brazil lost the ability to defend its currency by using dollar reserves to lift up the Brazilian real. That same month, the Lower House of Congress approved a big part of the government austerity Cardoso abolished two development agencies for the Amazon and the northeast because they had set up fake projects to steal over $1 billion in development funds. In 2002, three distinct events greatly influenced the state of Brazil. In March, members of the Landless Workers Movement demanded land reform and occupied President Cardoso s family ranch. In June, fans were ecstatic at Brazil s triumphs in World Cup, the country s fifth victory. In July, the currency fell to its lowest putting financial markets in a state of frenzy at the possibility of leftist Luiz 3

7 Inacio Lula de Silva becoming president in October. In 2008, the European Union stopped importing Alas, Luiz Inacio Lula da Silvan, popularly Brazilian beef claiming that Brazil s foot-andmouth disease checks were not thorough enough. known as Lula won the presidential elections, heading Brazil s first left-wing government in over Later that year, Marina Silva resigned from his post 40 years. At his inauguration in January 2003, he as Environment Minister after conflicts with the promised political and economic reform, pledging government over Amazon development. That same to eradicate hunger. year, the government launched a scheme offering In 2004, Brazil launched its first space rocket, cash payments and immunity for illegal weapons almost one year after a space rocket exploded on in order to clean up the streets of guns. Also, the ground at the Alcantara launch base. That same President Lula suspended intelligence chiefs as year, Brazil, along with Germany, India, and Japan allegations about them spying on officials, judges, launched an application to hold permanent seats on and politicians spread, and the government turned the UN Security Council. down Iran s invitation to join OPEC. In 2005, the government unveiled a In 2009, Brazil offered $10 billion to the plan to protect part of the Amazon region from International Monetary Fund to help increase credit encroachment also saw the killings of at least available to developing countries. At the end of that 30 people by a death squad on the outskirts of Rio de year, Rio De Janeiro and Sao Paulo, Brazil s two Janeiro, the city s worst massacre in over a decade. largest cities, suffer major blackouts due an issue at It is suspected that rogue police were responsible. a massive hydroelectric dam. In a similar vein, corruption allegations ensued In March 2010, President Lula visited the throughout the governing Workers Party, resulting Middle East including Iran to push for Brazil having in many resignations, and a televised presidential apology. In October, voters brought down a referendum proposing to ban the sale of firearms. A few months later, violence sparked by a series of prison riots resulted in many people getting killed in gang attacks and a police retaliation in Sao Paulo state. In October 2006, President Lula was reelected, but in 2007, Speaker of the Brazilian Senate Renan Calheiros, an important ally of Lula resigned to avoid an imminent impeachment trial after a steady and long corruption scandal. bigger diplomatic role in the region. The government also approved the construction of a controversial hydroelectric dam in the Amazon rainforest, which would become the world s third largest dam. In October, Dilma Rousseff, the first female president of Brazil, took office, representing Lula s Worker s Party. At the start of 2011, the controversial road connecting Brazil s Atlantic coast with Peru s Pacific seaboard opened and the construction of the Belo Monte dam on the Xingu River in the Amazon, a project opposed by environmentalists 4

8 and indigenous groups, commenced. The Chamber farm lobby and environmentalists. of Deputies voted for less restrictions on the amount In 2013, people took to the streets in many of land farmers need to maintain as forest, raising Brazilian cities to protest poor public services, concerns that the Amazon was suffering greater increased public transport costs, and the cost of deforestation. Additionally, security forces occupied hosting the 2014 World Cup. In the fall, the rights one of the biggest favelas in Rio de Janeiro, to explore Brazil s biggest oil field were given to cracking down on organized crime before the 2014 Petrobras, a state-run energy giant, at the helm of a World Cup and the 2016 Olympics. In that same consortium backed by French, Chinese, and Anglomonth, President Rousseff s chief of staff resigned Dutch firms. This act was criticized by some, who amid allegations of corruption, and the government argued that allowing foreign companies to access launched the Brasil Sem Miseria welfare program, the Libra oilfield would damage national interests. hoping to lift scores out of extreme poverty. The World Cup In 2014, much of Brazil s attention was focused on the 2014 FIFA World Cup, which the country was set to host, and the subsequent Brazilian general election in October. Following a slight growth in GDP of 0.7% observed in the fourth quarter of 2013, Brazil experienced negative GDP growth in the second and third quarters of Leading up to the World Cup, there were 5 Figure 3: Protests against Belo Monte dam on the Xingu River in Amazon The situation ameliorated for indigenous peoples and the Amazon in Parliament approved affirmative action law for universities, requiring them to allot half of their spots to state school students, and increase the number of seats offered to black, indigenous, and mixed-race students. Brazil also enacted a controversial law aimed at protecting forests and forcing farmers to reforest scattered swathes of illegally cleared land. Some parts of the law were criticized by both the more protests around the country against the level of government spending for the tournament. For example in Recife, 20,000 protesters took to the streets in late May following austerity measures imposed to make up for increased World Cup spending. After protests during the 2013 FIFA Confederations Cup held in Brazil, FIFA decided to cancel speeches during the opening ceremony, including that of President Dilma Rousseff, to avoid further protests. Although protests during the World Cup were much smaller in scale compared to the Confederations Cup, police still had to calm protesters in every city hosting a football game.

9 In addition to protests, fraud surrounding October. Despite protests, a decline in GDP in Q2 of construction contracts for the World Cup came to 2014, and running an administration that sharply cut light. Firstly, the cost of construction showed a down on welfare spending, the incumbent President dramatic rise that could not be explained by increase Dilma Rousseff was able to successfully get in raw material costs, and some government auditors reelected in what was Brazil s closest presidential have pointed to fraudulent billing and overpricing. election results since Rousseff was able to For example, the cost to build Brasilia s World Cup defeat her opponent Aecio Neves in the runoff by stadium tripled to $900 million in public funds. In narrow margin (51.6% to 48.4%). addition, while examining the components for the After the election results were released, costs, auditors discovered that transportation costs Brazil s Bovespa Stock Index (IBOV) fell about for grandstands, which in reality would have cost 4%. Many business leaders were hoping probusiness candidate Aecio Neves would be elected to just $4,700, were accounted as $1.5m. Secondly, it was found that companies awarded the most World tackle the structural problems facing the Brazilian Cup construction contracts sharply increased their economy. Brazil s experiences with high-gdp political donations. In fact, political donations from growth were primarily driven by rising commodity the main builder of Brasilia s stadium increased prices and the value of exports. However, with a almost 500 times in the 2010 general elections. high dependence on commodity exports and now Overall, the final cost of stadiums for the Brazilian slumping commodity prices, the economic outlook government is expected to be almost 4 times what for Brazil looked much weaker. The spending on was estimated in its bid to host the tournament in the World Cup strongly impacted Brazil s debt load, and the tourist dollars expected from the World Cup Regarding the quality and progress of construction, many stadiums were not fully completed in time for the World Cup. Similarly for public transportation, only 10% of the proposed projects were completed in time. Furthermore, there were numerous accidents involving collapsing bridges and monorails under construction that left a few people dead and many injured General Election After the World Cup, most of the public s attention turned towards the general election in did not help the situation. Petrobras Scandal The investigation into the state-run oil company began in early 2014 when Federal Police arrested Paulo Roberto Costa, the former head of Petrobras refining and supply division, after he received a Range Rover from a convicted blackmarket Forex agent. Later in August, Costa reached a plea agreement in which he agreed to reveal more information about the corruption in Petrobras along with names. This led to further arrests, including 6

10 those of former Petrobras employees and of clear figure for the amount of money diverted, but individuals working for various construction firms. the company announced in 2015 that between 2004 In March 2015, the Supreme Court announced that and 2012 it lost over $2 billion in just bribes. For it would expand its investigation to the speakers for 2015, the company s net loss amounted to almost both houses of Congress and many other politicians. $9.6 billion. This loss is expected given the global All of these individuals, except one, belonged to tumble in oil prices from 2014 through Its parties in President Rousseff s governing coalition. stock price has tumbled from its September 2014 Soon, the treasurer of President Rousseff s Workers value of about $11 to its 2015 closing price of $4.30. Party, Joao Vaccari, was arrested as well. Later At the end of 2015, Petrobras debt grew to about in May, Nestor Cervero, the former international $130 billion, and owes about $24 billion in debt director of Petrobras, was sentenced to 5 years in repayment obligations over 2016 and. jail on money laundering charges. By June 2015, more individuals were arrested in Political Turmoil connection to the corruption surrounding Petrobras. Given the Brazilian economy s dependence on This included the leaders of the country s two largest commodity exports, Brazil is one of many countries construction companies: Marcelo Odebrecht, head around the world facing an economic crisis due to of Odebrecht SA, and Otavio Marques Azevedo, the collapse of commodity prices. The Brazilian real CEO of Andrade Gutierrez. Documents obtained has lost almost half its value between mid-2013 to during the course of the investigation revealed late 2015, which in part, has caused Brazil has also a link between the overpricing of construction experience rising inflation (from about 6% in 2014 contracts and donations made to President to 9% in 2015). Further, the unemployment rate in Rousseff s reelection campaign in In addition to donations, the additional windfall from these contracts also filled the pockets of politicians and Petrobras employees through kickbacks. Further, Rousseff was the chairperson of Petrobras when much of the suspected illicit activity happened, and calls for her impeachment quickly proliferated in early To date, more than 100 people have been arrested in connection to the embezzlement and money laundering scandal, including prominent senators and top executives at Petrobras. There is no Brazil has increased sharply from about 7% in 2014 to almost 11% in early This put President Rousseff s position under question, and there were multiple calls for her impeachment in early 2016 as a result. While many have pointed to President Rousseff s time as the chairperson of Petrobras as a connection to the larger scandal, there has been no concrete link found so far. However, in December 2015, impeachment proceedings against her were initiated, and she was accused of hiding the extent of the federal budget deficit during her reelection 7

11 in This coupled with the country s economic On the 12th of May, a vote to continue with these woes and the scandal surrounding Petrobras has put proceedings was passed in the Senate. This forced the country s political arena to a near standstill, and Rousseff to relieve her seat for no more than 180 resulted in a 3.8% decrease in GDP in days as the trial is conducted. Vice President Michel Temer has taken over as interim president; his first job is to find a way to save the economy. There are several severe challenges facing Temer and recent economic data is not encouraging: retails sales contracted in March and the Purchasing Managers Index fell to the lowest level in over seven years in April. The committee s start day is May 17, Even though Brazil is still a major market Figure 4: Protests against Dilma and Petrobas for companies such as Ford, Amazon, IBM, and Monsanto, the nation is not only faced with Recent Developments economic problems but also a complicated mix of Amid low prices for key exports, rising political risks. Some scholars have even described inflation, and depressed confidence levels, Brazil the situation as three-pronged: a political crisis, experienced the deepest economic recession in an economic crisis, and a crisis of confidence. recent history last year. As the economy sank, Policymakers in Brasilia, the country s capital, President Dilma Rousseff s political career sank as appear paralyzed; the country s much needed well. A corruption scandal surrounding Rousseff structural reforms will be delayed until further in and the economy s poor performance resulted in her approval levels falling to a record-breaking low. Last year, the process of impeaching the president commenced. On March 13 of 2016, millions of Brazilians marched through major cities demanding Rousseff s impeachment. Rousseff faced another blow on March 29th when the Brazilian Democratic Movement Party (PMDB), Brazil s largest party and one of Rousseff s most important allies, decided to leave Rousseff s coalition, thereby crippling her position in the Brazilian political system and putting a dent in fending off any impeachment proceedings. the future. Figure 5: Impeached president Dilma Rousseff 8

12 Here is some recent economic data about Operation Carwash Brazil: Operation Carwash, locally known as Lava-Jato, is a federal investigation into a large corruption scandal involving state-owned oil company Petrobras, big construction companies, and politicians. This operation has brought to justice some of the most influential businessmen and political figures in Brazil. While all major parties both the government and the opposition have been affected, the governing Workers Party (Partido dos Trabalhadores, The Brazilian economy has officially been in a recession since the end of 2014 with inflation currently above 10% and the unemployment rate having reached 9% last year. The currency has also greatly devalued, and the Stock Exchange Market has plummeted significantly. It is predicted that the Brazilian economy will shrink for a second consecutive year in In order to solve the problem, the government or PT) has probably been the most affected so far. Former President Luiz Inacio Lula de Silva is under criticism, and President Dilma Rousseff has been impeached. Both are indeed from the PT party but they are not the only ones; the Speaker of the House, Congressman Eduardo Cunha, from the PMDB party, also part of the government coalition, is also under scrutiny for not having declared overseas assets. has cut public spending and implemented austerity Figure 6: An overview of the Petrobras Scandal policies through the Central Bank. Unfortunately, their plans have failed due to a political crisis that makes getting anything passed by Congress very difficult. This crisis is based in two watershed happenings: the popular opposition against the government due to the failed state of the economy, and a large corruption scandal that has engulfed all major political parties in Brazil, also known as Operation Carwash. 9

13 The opposition, particularly the main opposition athletes return to their home countries. However, party PSDB, is also facing charges, making it some suspect the spread of the virus could weaken especially hard for them to present themselves as an in August when the Olympics is set to be hosted alternative to the current government. In addition, considering it will be the coolest time of the year the Brazilian party system is very fragmented. The in Rio. Nevertheless, Rio has never experienced a country has yet to see a strong candidate rise and winter with Zika and the effects of the cold on the present coherent solutions for the crises. virus cannot be completely determined. In addition, From an economic standpoint, Operation there are concerns regarding the progress and safety Carwash has slowed down some of the biggest of infrastructure for the Olympics. Facilities for infrastructure projects in the country, except for the aquatic and cycling events have continuously faced Olympics projects, and brought down companies delays, and many concerns regarding the conditions responsible for almost a quarter of the domestic for construction workers remain. Moreover, in lateprivate investment. April an elevated bike path collapsed and killed at least two people, spurring safety concerns regarding Zika Epidemic and 2016 Summer Olympics the structural integrity of other facilities. Water With less than 75 days to go until the 2016 pollution is also a major issue Brazil faces - the Summer Olympics set to be hosted in Rio de Janeiro government has to improve sanitation conditions (remember: we are starting the committee in May at Rio s Guanabara Bay. With years of raw sewage 2016), the country continues to reel from not only directly pumped into the Bay, the extent to the political and economic crises, but also faces a Zika pollution levels was seen when thousands of dead virus epidemic that continues to affect the public 10 health of Brazilians. In 2015, an estimated 1.5 million people were affected by the virus in Brazil, and many tourists and athletes set to enter the country have a major cause for concern. In addition, Rio de Janeiro has the fourth worst Zika incidence rate (157 cases per 100,000) in Brazil and the number of suspected cases is the highest for any state in Brazil. Dr. Amir Attaran of the University of Ottawa has suggested that the Olympics must be postponed, moved, or both, as a precautionary concession and has also argued that hosting the Olympics could lead to the further spread of Zika once tourists and fish washed up on the shores of Rio last July. This creates further concerns for sports such as sailing and rowing that are supposed to be held in the Bay. Figure 7: The spread of Zika Virus in the Americas

14 With the ongoing political crisis in Brazil, responsibility of this new cabinet to alleviate Brazil many have been concerned with a repeat of from its economic and sociopolitical woes, and protesters disturbing the events similar to how it bring back the country s status as a global economic happened during the FIFA World Cup two years ago. power. However, there is also a pending request to In addition, the Brazilian government announced impeach Temer on the same charges as Rousseff. If in March that it was cutting its security budget by taken up, and if he is impeached as well, there may about 30% as part of its austerity measures, and be a need for new elections. confirmed some of the cuts will affect the Olympics. Many believe this could lead to security concerns Potential Crises during the Olympics, especially given many recent The Olympics are coming up, Brazilians terrorist attacks around the world. don t have confidence in their leaders, and Zika is wreaking havoc across the country. How do you Deepening Political Turmoil ensure the events proceed smoothly in the face of so On May 12th, 2016 the Brazilian Senate voted many potential setbacks? in favor of putting President Dilma Rousseff on trial Political experts note that (regarding the on allegations that she unlawfully manipulated fiscal cabinet) if Brazil can eventually agree on a political accounts. While she fervently denies the charges, 55 pact, might start to brighten up. Economic senators voted for the trial while 22 voted against. history reminds us that Brazil can be home to a great As part of the proceedings, President Rousseff will economy. There is a large domestic market, several have to step down for up to 180 days while the trial innovative industries, and a richness in natural is in progress. To reach a conviction, two-thirds or resources. How do you negotiate this political more of the Senate will have to vote guilty. A special committee of 21 senators will hear out Ms. Rousseff, call on witnesses and submit a final report with a recommendation of acquittal or conviction to the Senate. The full Senate will then vote on the trial. Meanwhile, Vice President Michel Temer has taken on the role of President for 180 days, and will finish the remainder of Ms. Rousseff s term till the end of 2018 if she is found guilty. As one of his first steps as acting President, Temer has reshuffled the of Ministers, and has brought on many new politicians and others. It will be the agreement in order to bring the country back on the right track? Protests continue to grip the country, some even calling for the current government to abdicate entirely. How do you quell these protests and return people s faith in their government? Violently or Peacefully: the choice is yours. 11

15 Cabinet Positions and then went on to help found the Popular Socialist Party (PPS) in 1992, and is one of its main leaders. Blairo Maggi Agriculture, Livestock and Supply He has held a variety of positions throughout his & Agrarian Development political career including being the Minister of Born and brought up in the state of Parana, Agrarian Development under the presidency of Blairo Maggi graduated from the Federal University Fernando Henrique Cardoso, and was a Federal of Parana, where he studied agronomy. He is the son Deputy for the state of Pernanbuco from 2003 till of the late Andre Maggi, who founded the Andre 2016, when he became the Minister of Defense. Maggi Group, the world s largest soybean producer. While he has been outspoken about Brazil being a Besides being a cabinet minister, Maggi also owns peaceful country, he has made it clear that security about 16% of the Andre Maggi Group, which now has during the Olympics will be a priority and that Brazil diversified its interests outside agriculture to energy, will be prepared. fertilizers, transportation and rubber extraction. He is also popularly known as O rei da soja or The Henrique Meirelles Finance king of soybeans, and has faced a lot of criticism Born and brought up in the state of Goias, regarding his role in promoting deforestation for Henrique Meirelles studied engineering at the agricultural purposes and destroying the Amazon University of Sao Paulo (USP), and went on to Rainforest. In 2006, he was given the Golden earn an MBA from Federal University of Rio de Chainsaw Award by Greenpeace for the Brazilian Janeiro. In college, he participated in studentled strikes against the regime. After his MBA, person who most contributed to Amazon destruction. he began working at BankBoston and had a prominent He is a member of the Progressive Party (PP), was previously a senator representing the Mata Grosso state and also used to be the governor of Mata Grosso. Raul Jungmann Defense Born and brought up in the state of Pernambuco, Raul Jungmann graduated from the Catholic University of Pernambuco (Unicap). He has a long history in Brazilian politics, and was an anti-regime activist during the Brazilian dictatorship ( ). After democracy was restored, he was a member of the Brazilian Communist Party (PCB) career with the bank for almost 28 years. He was the bank s president in Brazil from 1984 to 1996, and then became president and COO before it merged with the Fleet Financial Group (now part of Bank of America) in After the merger, he headed the newly formed FleetBoston Financial s global banking division. He retired in 2002, and got involved in Brazilian politics. He was appointed to be the president of Brazil s Central Bank by Lula da Silva in 2003, and held his position till his resignation at the end of He has been credited with controlling Brazil s inflation, lowering 12

16 interest rates and taking Brazil through the 2008 of Sao Paulo (USP). He is an associate professor at and 2009 global economic crisis. Besides his role USP, and is also a titular professor at the Mackenzie as the Minister of Finance, he is also on the Board Presbyterian University, Brazil. He began his law of Directors for Azul Brazilian Airlines, and was a career in Sao Paulo as a public prosecutor, went on senior advisor to the private equity firm Kohlberg to various other positions in the Sao Paulo Justice Kravis Roberts (KKR). Department, was appointed to the National Council of Justice, and even founded his own law frm. Jose Serra Foreign Relations Before joining the Temer administration, he was Born to parents of Italian origin in Sao Paulo, the head of the Public Security department for Sao Jose Serra grew up in a lower-middle class family. Paulo, and was in charge of the Sao Paulo state s His father was a fruit vendor, but managed to put his feared and hated military police. This division of son into college. Serra left Brazil during his senior the police kills more people each year than that of year of college after the 1964 military coup. He all police departments in the US combined. It has was a wanted man given that he was the president historically been seen as a repressive force, and of the National Student Union that opposed the even sided with the military during the 1964 coup. new, conservative military regime. He spent the As head of the Ministry of Justice, de Moraes also next 14 years in exile in Bolivia, France, the US leads the increasingly powerful Federal Police that and Chile, and finally returned to Brazil in 1978 is currently in charge of Operation Carwash that with the arrival of the political amnesty bill. He is investigating the Petrobras scandal. He is also a entered politics in 1982 and was elected a Federal member of the Brazilian Social Democracy Party Deputy in He went on to take a variety of (PSDB). political positions including Mayor and Governor of Sao Paulo, Senator representing Sao Paulo, and cabinet positions as the Minister of Health as well as Minister of Planning and Budget. He is a prominent member of the Brazilian Social Democracy Party (PSDB), and unsuccessfully ran for presidency in 2002 and in Alexandre de Moraes Justice and Citizenship Originating from the state of Sao Paulo, Alexandre de Moraes completed his education in law from the prestigious Faculty of Law, University Fernando Bezerra Filho Mines and Energy Born and brought up in the state of Pernambuco, Fernando Bezerra Filho is a thriving youngster of age 32 in a cabinet that is largely composed of old, white men. He was elected to be the one of the youngest Federal Deputies in Brazilian history at the age of 22 in His father is Senator Fernando Bezerra, who was the Minister of National Integration under Rousseff, and is currently under investigation by Operation Car Wash. He completed his undergraduate degree in Business Administration from FAAP Sao 13

17 Paulo, and has been actively involved in the political so that companies are not financially burdened space. Notably, he has pushed through many bills in by legal troubles and can instead resume their the Chamber of Deputies that deal with promoting economic activities. He is the author of Positive the production of electric cars as well as ethanol. Electoral Law, and has published his opinions in When he was appointed Minister of Mines and many professional journal articles. Energy, he mentioned that renewable energy will be one of his focus areas. At such a young age, he has Marcos Pereira Planning, Development and been given the responsibility of dealing with Brazil s Management; Industry and Foreign Trade troubled energy sector that makes up about 20% of Originating from the state of Espirito Santo, Brazil s GDP and has to deal with issues plaguing Marcos Pereira is a lawyer and a licensed Bishop. both Petrobras and Electrobras. He is a member of He got his degree in law from Paulista University, the Brazilian Socialist Party (PSB), and voted in and did his specialization in Law and Criminal favor of opening impeachment proceedings against Procedure at the Mackenzie Presbyterian University. Dilma Rousseff. He was formerly the vice president of Rede Record, one of Brazil s largest television networks, and was Torquato Jardim Transparency, Supervision and also a partner at LM Consulting. He even went on to Control start his own law firm, and is currently the national Born in Rio de Janeiro, Torquato Jardim is a president for the Brazilian Republican Party (PRB), jurist and was appointed Minister for Transparency, which voted in favor of impeachment proceedings Supervision and Control by President Temer against Dilma Rousseff. Pereira will have a tough following the resignation of Fabiano Silveira. This time ahead as Brazil s economy struggles with the new ministry was set up in May, 2016 and the responsibilities of the former Comptroller General of the Union (CGU) is part of this ministry. Jardim was formerly a minister in the Superior Electoral Court (TSE), the highest body of Brazilian Electoral Justice, and is considered to be a leading expert in electoral law in the country. He has been a friend to President Temer for 35 years, and will be dealing with corruption as part of his responsibilities. He has been in favor of giving leniency deals (reduced sentences and fne waivers) to companies that cooperate with investigations as part of a whistleblower award, worst economic crisis in 80 years. Gilberto Kassab Science, Technology and Communications Born and raised in Sao Paulo, Gilberto Kassab completed his undergraduate studies in Civil Engineering and Economics from the University of Sao Paulo (USP). Before his political career, he was a professional realtor. In his early years, he was briefy involved with the Liberal Party (PL) and then the Democratic Party (DEM). He went on to become a Federal Deputy, served as vice- 14

18 mayor under Jose Serra and went on to become the have a tough job ahead to ensure that everything goes mayor of Sao Paulo. In 2011, he founded the Social smoothly and safely amid a deepening economic Democratic Party (PSD) with other defectors from crisis and the Zika epidemic. the DEM, PSDB and PPS. Under Rousseff, he was briefy the Minister of Cities before resigning right General Sergio Etchegoyen Institutional Security before the impeachment vote and now leads the Cabinet (GSI) amalgamation of the former ministry for science and Originally from the state of Rio Grande do technology, and former ministry of communications. Sul, General Sergio Etchegoyen studied Business This combination has been largely disapproved by Administration at the University of Amazonia individuals in both the sectors. (UNAMA) and then joined the Army in 1971 during the dictatorship by enrolling in the Military Leonardo Picciani Sports & Tourism Academy of Agulhas Negras (AMAN). He has had Born and brought up in the state of Rio de an illustrious Army career, including involvement Janeiro, Leonardo Picciani is another youngster in with the UN Observer Mission in El Salvador (1991- the. After getting his degree in 1992), heading the Brazilian Army Commission Law from UCAM Rio de Janeiro, Picciani joined in Washington, DC, being a special advisor to the politics at the age of 22, when he became a Federal Minister of Defense, and finally becoming the Chief Deputy in the Chamber of Deputies representing the of Staff for the Army. The Brazilian Intelligence state of Rio de Janeiro. During his second term in Agency (ABIN) is also under his purview as Chief the Chamber, he was elected to chair the Committee Minister of the Institutional Security Cabinet on Constitution and Justice (CCJ). He belongs to the (GSI). Not only does General Etchegoyen advise Brazilian Democratic Movement Party (PMDB), the same party as President Temer. His father is Jorge Picciani, the President of the Legislative Assembly of Rio de Janeiro, a professional rancher and owner of the Monte Verde Group. His younger brother, Rafael, is a PMDB state representative for Rio de Janeiro, and is currently the municipal secretary of River Transport. Before being appointed Minister of Sports and Tourism, Picciani made headlines after voting against the impeachment of Dilma Rousseff, opposing the orders of his family. With the 2016 Summer Olympics around the corner, Picciani will the President on matters of military and security, but is also in charge of protecting the President, Vice President, key politicians and their families. He has been considered by many as a hard line military officer. In 2014, his father, the late General Leo Etchegoyen, was implicated for crimes during the dictatorship by the National Truth Commission (CNV). He and his family protested against the inclusion of his father s name, and called the allegations frivolous. He will have a lot of responsibility ahead with ensuring adequate security during the Olympics. 15

19 Ilan Goldfajn Central Bank Bezerra, was a former Federal Deputy for ARENA, Born in Haifa, Israel, Ilan Goldfajn also grew a party which supported the dictatorship. He later up in Rio de Janeiro, and is a dual citizen of both moved to the Social Democratic Party (PDS), the Brazil and Israel. He got a degree in Economics Liberal Front (PLF) and finally the Democratic from the Federal University of Rio de Janeiro Party (DEM), which is the party his son belongs (UFRJ), got his master s degree from PUC-Rio, and to. Mendonca Filho began his political career wh proceeded to get his PhD from the Massachusetts Company, The Country s Government-run Oil. Institute of Technology (MIT). He has previously Brazil s Oil Giant Loses Billions amid Corruption worked with the World Bank, the International Scandal. CNNMoney. Cable News Network, Monetary Fund (IMF), the United Nations (UN), n.d. Web. 03 Oct en he was elected as the and the Central Bank of Brazil ( ). In the country s youngest state deputy when he was just 20 private sector, he was formerly the chief economist years old. He then represented his state as a Federal for Itau Unibanco, was a founding partner of both Deputy, went on to become Deputy Governor, Ciano Consulting and Ciano Investments, and was a and finally became Governor of Pernambuco. He former partner of Gavea Investments. His key areas unsuccessfully ran for Mayor of Recife in 2008 and of focus as President of the Central Bank will be He played a prominent role in the movement to to control inflation, control monetary policy and impeach Dilma Rousseff, and has become unpopular reduce volatility in the foreign currency markets for with trade unions. He comes from a political family, the Brazilian real. He has also affirmed his intention and his family also owns an agribusiness. His to push for operational autonomy of the Central appointment as Minister of Education and Culture Bank from the Brazilian government. With inflation was received amid protests by public servants. spiraling out of control and Brazil s public debt increasing, his appointment comes with an urgent need to stabilize the country and the economy. Mendonca Filho National Integration & Education and Culture Born and raised in the state of Pernambuco, Mendonca Filho graduated with a degree in Business Administration from the University of Pernambuco and has also completed a course in Public Management from the Kennedy School, Harvard University. His late father, Jose Mendonca Ricardo Barros Health and Environment Born and raised in the city of Maringa, Parana, Ricardo Barros comes from a family of politicians. Both his father and brother were former mayors of Maringo. His wife, Cida Borghetti, is a businesswoman and the vice-governor of the state of Parana. Barros got his degree in Civil Engineering from the State University of Maringa, and entered politics at a young age. He became the youngest ever mayor of Maringa at the age of 29, and went on to become a five-times elected Federal Deputy. He 16

20 was also Secretary of Industry and Trade for the state involved with introducing a new bill to change the of Parana from 2011 to He made headlines General Telecommunications Law that deals with during discussions for the 2016 Budget, for which privacy and personal data of internet users. He is he was a Rapporteur, when he suggested a spending a member of the Brazilian Labor Party (PTB) for cut of 10 billion Reais (about $3 billion) from the the past 24 years. He will have a tough time ahead Bolsa Familia, a social welfare program covering with managing labor unrests, ensuring adequate 26% of Brazilians that was the centerpiece of Lula public transportation in time for the Olympics, and da Silva s social policy. The government did not go maintaining public safety when the tourists arrive. forward with this suggestion. He voted in favor of impeachment proceedings against Dilma Rousseff, Works Cited and is a member of the Progressive Party (PP) along with his wife. With the Olympics closer than ever, Attaran, Amir. Off the Podium: Why Public Health the Zika epidemic will be one of the challenges for Concerns for Global Spread of Zika Virus Means Barros, and so will pollution in Guanabara Bay. That Rio De Janeiro s 2016 Olympic Games Must Not Proceed. Harvard Public Health Ronaldo Nogueira Cities, Transports and Labor Born and raised in the state of Rio Grande do Review. Harvard University, n.d. Web. 10 Oct Sul, Ronaldo Nogueira graduated from the Lutheran Brazil Audit: corrupt World Cup Costs Al University of Brazil with a degree in Business Jazeera English. AJE n.d. Web. 03 Oct Administration, followed by a specialization in Public Management from the Faculty of Economics, Brazil. Brazil Home. World Bank, n.d. Web. 19 Federal University of Rio Grande do Sul (UFRGS). He is part of the Evangelical Church, and is a pastor in the Brazilian division of the Assemblies of God. He only became a Federal Deputy in 2015, but has been extensively involved with the state government of Rio Grande do Sul. He led the Department of Transportation for the state under the governance of Yeda Crusius, and was also the Director for the Gaucha Foundation for Labor and Social Action (FGTAS). Most recently, he led the Department of Public Works, Irrigation and Urban Development for Rio Grande do Sul. As a Federal Deputy, he was Oct Brazilian Stocks Plummeted Monday after President Dilma Rousseff Narrowly Won a Re-election against Aecio Neves. Brazilian Stocks Take Beating after Election. CNNMoney. Cable News Network, n.d. Web. 03 Oct The Echoes of The Economist. The Economist Newspaper, Web. 17 Oct. 17