The 11th World Social Forum (WSF) took place in Belem, Amazonas, in the end of January, and gathered 100.000 activists from around the world to discuss an agenda that comprises several items from the left wing political standpoint regarding themes that interest the world minorities. Five Latin American presidents attended the Forum. For political and strategic reasons, Brazil’s President decided to ignore the World Economic Forum in Davos, Switzerland.
In Belem, in an open meeting place the participants debated on subjects such as marital violence in India, support for Cuba government, land rights for Amazonian Indians and so on. This event was conceived initially (2001) as the anti-Davos forum since the discussions were focused on issues that concern the poor or the so called underdeveloped countries.
WSF is a platform designed to draw the world’s attention for the global problems that affects mankind but it is also a political platform (despite some internal contradictions) to divulge ideas that will enhance the prestige of the so called populist presidents like ours. He received indeed a superstar ovation from the audience. The reception stimulated him to point out the usual mantra against his traditional villains, i.e., criticizing the developed nations for having created the current financial crisis and the IMF for its permanent and dictatorial demand for sacrifices when loaning money for underdeveloped countries. In a very strong position, he stressed that the world should stop to interfere trying to take control over Amazon as this is a Brazilian task and the country is prepared to defend its sovereignty. Maybe this was the issue he really intend to address worldwide.
Some businessmen in Davos meeting commented that Brazil’s image changed from being considered financially problematic country in the previous year to a “new power broker” nation in this annual meeting.
All these remarks may lead to the wrong and dangerous conclusion that the world crisis will not affect Brazil and that the country is immune. This is a wrong perception that we must take into consideration. It is a fact that the crisis will reach every country – develop or underdeveloped. It is a global event.
Marketing or political purposes made Lula recently refuse to accept that the crisis was knocking at Brazil’s door. Now he and his administration (Central Bank authorities in Davos) are accepting the existence of the worst crisis that affected the world since 1930.
As a consequence several actions were implemented by Brazilian authorities to help the economy, such as to give financial support for the companies that promote exports and tax exemption to stimulate the automotive industry avoiding thus unemployment and so on.
And the alert signals do not stop to show up. According to the latest release from the Brazilian Development, Industry and Trade ministry, Brazil presented its first monthly trade deficit in almost eight years as exports plunged by a record amount on falling prices for the country’s commodities. In other words the world is closing up for imports, in an attempt to protect their economies and this will require a lot of effort and creativity from the Brazilian companies to overcome all the obstacles that this situation presents.
Finally the Brazilian government’s euphoria is been replaced by the common sense that dictates that the situation demands serious approaches. They are learning by the trial and error.
Davos came to this conclusion: effective solutions should be implemented in a short time period and all effort should be applied to develop swift and coordinated policy to respond to the most serious global recession. Crisis will last at least three years. Time has come to act united to benefit the entire world. Companies must address immediate partnerships and find new markets in order to face what is coming.
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We particularly are expecting that his policy toward the commercial relations between Brazil and his country be guided through permanent dialogue that will enable both nations to profit.
