Miriam Leitao, Rio de Janeiro, Brazil - Lula's victory in Brazil does not mean the people have acquitted him of all the corruption scandals of his first term. The economy won him this reelection. Upon close inspection, however, the economy is not fairing that well after all. The Brazilian GDP has grown only slightly and unemployment is at 10%. But the overvalued currency has reduced inflation and kept down the price of foodstuffs, pleasing voters. Poor people's real income therefore have increased. They've additionally benefited from income transfer programs of Lula.
At the start of his second term, Lula is under investigation by the Electoral Court for illegal electoral practices. He also must deal with the Attorney General's indictment of 40 presidential aides for corruption.
He will have to radically change his attitude in government not to repeat the mistakes of his first term. At the same time he will be forced to maintain low inflation and pursue stronger economic growth in order to keep his popular support. If the economy fails and prices rise he will get politically weaker and it will become far more difficult for him to deal with his troubles at the Courts.
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