Increased Government Control Wins More Votes

It is true when BBC analyst, Wyre Davies, says that Brasil is now a split nation. Elections, which were originally held on October 15th of this month were continued as the process went into a run-off between leftist incumbent Dilma Rousseff and business friendly Aecio Neves.

Today, Rousseff took the election with 51% of the votes, favored by the poor by the implementation of welfare programs lifting many Brasilians out of poverty, but her competitor took 48% of the votes. By these numbers, the country is split almost entirely in half by different regions. Depending on who won the presidency economic out-looks and fiscal planning would have been dealt with in completely different ways.

Dilma Rousseff reacts during news conference after the disclosure of the election results in Brasilia, October 26, 2014.
Ms Rousseff said she wanted to be “a much better president” and promised political reform. Photo: Reuters

Although Rousseff can celebrate the victory, there will be no break for her anytime soon. As Brasil has been in an economic flat-lining, with a faltering economy and high inflation rate, the global market is anxious for what will happen.

Brasil like a few other countries has switched to high government involvement within the communities, services, and businesses. However, the increased government intervention within the economy has opened up better education opportunities and a more accessible healthcare system. Rousseff’s administration did create these opportunities for some, but with a weak infrastructure there are still many problems with the development and services according to Reuters.

Rousseff also faces problems from environmentalists, scholars, and indigenous communities. The opportunity cost for Rousseff’s chosen way of development has lead to the displacement and loss of land for many of Brasil’s most diverse indigenous groups of people. According to Global Voices Online,

This land-hungry economic push under Brazilian President Dilma Rousseff, including road construction, mining, hydroelectric plants, and the exploitation of natural resources, has led to violent clashes between activists and police throughout Brazil. Rousseff’s indigenous policy has been the target of criticism from experts and activists who point out that such development is costing tribes their territory.”

Regardless of these factors and a slight plummet in the market due to a force-able reelection of Rousseff, Brasil’s gross domestic product is at about $2 trillion and is therefore still the largest in all of Latin America. Now Rousseff will have to face further corruption claims and figure out how to please the other 48% of voters that did not support her.

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