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ArtikelFacing Headwinds; Dilma Changes Course  
Oleh: [s.n]
Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 404 no. 8798 (Aug. 2012), page 34-35.
Topik: Strikes; Privatization; Infrastructure; Economic Policy; Government Employees
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    • Nomor Panggil: EE29.73
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Isi artikelIn recent years Brazil's government has been able to avoid tough spending choices. Faster economic growth and falling tax evasion have translated into steadily rising revenues, allowing the federal government to hire more workers and pay them more, as well as to boost pensions and social transfers (see chart 1 on next page). But the fat times are over. In 2011 economic growth was only 2.7%; this year 2% looks optimistic. Tax revenues are rising only a little faster than inflation. The government can no longer satisfy everyone. The noisiest demands come from public-sector workers. The president, Dilma Rousseff, has made clear her irritation. Most federal employees have had big pay increases since 2003, when her Workers' Party (PT) came to power. On average, federal salaries are now around double the private-sector rate for equivalent jobs, points out Raul Velloso, a public-finance specialist in Brasilia. Ms Rousseff has said that any pay rises will be limited to the lowest paid, or tied to productivity--and that public money would be better directed to helping private companies avoid lay-offs. Strikers have been threatened with docked pay and state governments authorised to use their own staff as cover. All this marks a big shift: the strikes are being led by the Central Unica dos Trabalhadores, a powerful group of unions with strong links to the PT. Even if the president wins this battle of wills, it has already disrupted her plans.
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