Pending reforms: challenges to governabilty in Brazil

After President Lula’s two terms of office, the election of Dilma Rousseff generated all kinds of different expectations, whether because of the candidate’s lack of a political career within the Workers’ Party (PT), or because of her rather uncharismatic personality and poor propensity towards political negotiations with the allied parties that favoured the governability of the previous term of office. The country she has inherited is in a much better situation than the one inherited by the first PT government, with a stabilised economy and inflation under control. The sustainable policies for reducing poverty have generated conditions that encourage the enlargement of the middle class which, together with the creation of popular credit mechanisms, have served to halt the effects of the world crisis and have generated enormous expectations of social mobility. This scenario, together with the country’s increasingly recognised presence as an important international actor, provides unprecedented possibilities for the advancement of the “development with social inclusion” project. Nevertheless, certain reforms still need to be implemented that could threaten governability: political reform, federative agreement and tax reform, as well as social reforms.