IBOV 175,967 ▲ 0.13% IPSA 10,928 ▲ 0.16% IPC MEX 66,689 ▲ 1.08% MERVAL 3,231,038 ▼ 0.13% COLCAP 2,292.84 ▼ 0.64% BVL PERÚ 56,428.20 ▲ 1.53% USD/BRL5.07▼ 1.23% USD/MXN17.43▼ 0.58% USD/CLP924.91▼ 0.86% USD/COP3,250▼ 0.39% USD/PEN3.39▼ 0.66% USD/ARS1,473▼ 0.71% USD/UYU40.23▲ 0.99% USD/PYG6,039▲ 1.12% USD/BOB10.35▲ 6.04% USD/DOP58.34▲ 0.44% USD/CRC448.93▲ 1.31% USD/GTQ7.62▲ 2.07% USD/HNL26.73▲ 1.38% USD/NIO36.62▲ 0.63% USD/VES722.19▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD156.98▲ 0.25% USD/TTD6.75▲ 1.19% EUR/BRL5.80▼ 0.43% BRENT 84.64 ▲ 1.61% WTI 79.13 ▲ 1.27% IRON ORE 161.91 — — COPPER 6.37 ▲ 2.21% GOLD 4,069 ▲ 1.79% SILVER 59.13 ▲ 2.60% SOY 1,192 ▼ 0.81% CORN 460.75 ▲ 5.25% WHEAT 645.75 ▲ 2.99% COFFEE 324.55 ▼ 4.94% SUGAR 14.92 ▲ 1.15% ORANGE JUICE 140.60 ▼ 1.37% COTTON 81.68 ▲ 2.32% COCOA 5,912 ▲ 3.79% BEEF 231.80 ▼ 1.25% CATTLE 348.85 ▼ 1.55% LITHIUM 71.24 ▲ 1.43% PETR4 40.56 ▼ 0.25% VALE3 74.06 ▲ 1.66% ITUB4 43.39 ▼ 0.30% BBDC4 18.50 ▼ 1.44% ABEV3 15.84 ▲ 0.06% BBAS3 20.50 ▲ 1.28% B3SA3 15.32 ▲ 1.32% WEGE3 44.22 ▼ 0.38% PRIO3 56.98 ▼ 0.38% SUZB3 41.37 ▼ 0.29% RENT3 40.39 ▲ 0.47% AZZA3 18.80 ▼ 2.19% CSAN3 3.88 ▼ 0.51% RAIZ4 0.31 ▼ 6.06% PCAR3 2.47 ▼ 4.63% GMAT3 3.95 ▲ 0.25% PSSA3 54.20 ▲ 0.30% CVCB3 1.33 ▲ 6.40% POSI3 3.93 ▼ 1.50% SLCE3 13.71 ▼ 1.15% NATU3 8.51 ▼ 1.05% BRKM5 6.65 ▼ 4.18% RANI3 8.02 ▲ 0.88% CSNA3 5.12 ▼ 2.29% CMIN3 5.15 ▼ 5.50% USIM5 8.26 ▼ 1.43% GGBR4 23.16 ▲ 1.49% ENEV3 26.77 ▼ 0.41% CPFE3 47.19 ▲ 0.75% CMIG4 11.11 ▲ 0.36% EQTL3 40.72 ▲ 1.27% LREN3 14.12 ▼ 0.21% VIVT3 35.43 ▲ 2.02% RAIL3 14.13 ▲ 0.14% KLABIN 17.40 ▼ 0.46% RAIA DROGASIL 18.32 ▲ 0.66% RDOR3 35.73 ▲ 0.48% HAPV3 10.64 ▲ 1.72% FLRY3 16.35 ▲ 1.24% SMTO3 16.19 ▼ 1.10% UGPA3 29.90 ▼ 3.33% VBBR3 32.82 ▲ 0.18% BBSE3 40.24 ▼ 0.10% BPAC11 57.70 ▲ 0.31% CURY3 32.67 ▼ 1.36% AERI3 2.08 — 0.00% VIVARA 23.31 ▲ 0.87% COMPASS 25.19 ▲ 1.70% VAMOS 3.05 ▲ 0.99% SANB11 27.28 ▼ 0.33% ASAI3 8.65 ▼ 0.69% SBSP3 30.35 ▼ 0.07% WALMEX 49.53 ▼ 0.24% GMEXICO 200.46 ▲ 2.49% FEMSA 233.44 ▲ 3.59% CEMEX 22.19 ▲ 1.88% GFNORTE 187.05 ▲ 2.74% BIMBO 56.61 ▲ 1.32% TELEVISA 9.47 ▼ 1.46% AMX 22.87 ▲ 1.24% GAP 389.89 ▼ 4.48% ASUR 278.64 ▼ 0.01% OMA 234.04 ▲ 0.31% KOF 181.82 ▲ 0.08% GRUMA 282.09 ▲ 0.26% KIMBER 38.40 ▲ 0.47% SQM-B 67,438 ▲ 0.34% COPEC 6,077 ▲ 0.33% BSANTANDER 78.86 ▲ 0.84% FALABELLA 5,916 ▲ 0.19% ENELAM 85.43 ▲ 1.46% CENCOSUD 2,044 ▲ 0.19% CMPC 1,076 ▼ 0.19% BANCO CHILE 188.21 ▲ 1.74% LATAM AIR 24.88 ▼ 0.08% YPF 77,150 ▼ 0.03% GGAL 8,015 ▼ 0.80% PAMPA 5,185 ▼ 0.77% TXAR 661.00 ▼ 0.53% ALUAR 959.00 ▼ 0.57% TGS 9,695 ▲ 1.31% CEPU 2,313 ▼ 0.26% MIRGOR 16,825 ▼ 1.03% COME 45.15 ▲ 0.83% LOMA NEGRA 3,550 ▲ 1.50% BYMA 302.00 ▼ 2.03% TELECOM ARG 4,285 ▲ 0.82% ECOPETROL 16.02 ▲ 0.85% BANCOLOMBIA 81.33 ▲ 1.13% GRUPO AVAL 4.90 ▼ 0.20% CREDICORP 391.08 ▲ 0.48% SOUTHERN COPPER 179.98 ▲ 3.12% BUENAVENTURA 30.68 ▲ 2.88% MERCADOLIBRE 1,872 ▲ 0.25% NUBANK 14.03 ▲ 2.61% XP 16.79 ▲ 2.57% PAGSEGURO 9.24 ▼ 0.48% STONE 11.21 ▲ 0.54% GLOBANT 31.75 ▼ 1.15% TECNOGLASS 43.44 ▲ 1.40% GAP AIRPORT 223.72 ▼ 3.89% ASUR 278.64 ▼ 0.01% OMA AIRPORT 107.46 ▲ 1.26% AMX ADR 26.20 ▲ 0.65% FEMSA ADR 133.99 ▲ 3.86% CEMEX ADR 12.75 ▲ 2.41% PETROBRAS ADR 17.90 ▲ 0.08% VALE ADR 14.57 ▲ 2.72% ITAU ADR 8.54 ▲ 0.80% SANTANDER BR 5.40 ▲ 0.84% AMBEV ADR 3.10 ▲ 1.14% CSN 1.02 ▼ 0.97% GERDAU 4.58 ▲ 2.00% LATAM ADR 53.72 ▲ 0.72% BTC 64,491 ▲ 3.62% ETH 1,868 ▲ 5.33% SOL 77.06 ▲ 2.94% XRP 1.10 ▲ 3.40% BNB 579.93 ▲ 2.35% ADA 0.16 ▲ 4.18% DOGE 0.07 ▲ 3.58% AVAX 6.64 ▲ 3.04% LINK 8.25 ▲ 4.77% DOT 0.85 ▲ 2.09% LTC 44.55 ▲ 2.44% BCH 236.91 ▲ 0.29% TRX 0.33 ▲ 0.39% XLM 0.18 ▲ 1.88% HBAR 0.07 ▲ 0.28% NEAR 2.04 ▲ 6.27% ATOM 1.55 ▲ 1.24% AAVE 99.20 ▲ 5.13% SELIC 14.25% EMBRAER 82.80 ▼ 0.25% EMBRAER ADR 65.28 ▲ 1.24% JBS 11.82 ▲ 0.13% JBS BDR 59.82 ▼ 1.30% MBRF3 16.09 ▲ 2.35% MBRFY 3.10 ▲ 1.64% INTER 5.68 ▲ 0.44% EGX 52,299 ▼ 0.59% USD/ZAR16.37▼ 0.64% USD/NGN1,381▲ 0.07% NIKKEI 67,744 ▲ 0.74% CSI300 4,797 ▲ 2.15% HSI 24,341 ▲ 0.52% NIFTY 24,052 ▼ 0.66% KOSPI 6,857 ▲ 0.73% JCI 6,040 ▲ 0.03% USD/JPY162.16▼ 0.17% USD/CNY6.76▼ 0.31% DAX 25,147 ▲ 0.13% CAC 8,367 ▲ 0.03% FTSE 10,529 ▲ 0.30% MIB 52,863 ▲ 0.10% IBEX 19,357 ▲ 0.11% STOXX 642.10 ▲ 0.17% EUR/USD1.14▲ 0.41% GBP/USD1.34▼ 0.05% SPX 7,550 ▲ 0.46% DJI 52,471 ▼ 0.05% NDX 29,651 ▲ 1.32% RUT 2,964 ▲ 0.37% TSX 35,304 ▲ 0.14% VIX 16.45 ▼ 4.14% USD/CAD1.41▼ 0.61% US10Y 4.5850 ▼ 0.52% IBOV 175,967 ▲ 0.13% IPSA 10,928 ▲ 0.16% IPC MEX 66,689 ▲ 1.08% MERVAL 3,231,038 ▼ 0.13% COLCAP 2,292.84 ▼ 0.64% BVL PERÚ 56,428.20 ▲ 1.53% USD/BRL 5.07 ▼ 1.23% USD/MXN 17.43 ▼ 0.58% USD/CLP 924.91 ▼ 0.86% USD/COP 3,250 ▼ 0.39% USD/PEN 3.39 ▼ 0.66% USD/ARS 1,473 ▼ 0.71% USD/UYU 40.23 ▲ 0.99% USD/PYG 6,039 ▲ 1.12% USD/BOB 10.35 ▲ 6.04% USD/DOP 58.34 ▲ 0.44% USD/CRC 448.93 ▲ 1.31% USD/GTQ 7.62 ▲ 2.07% USD/HNL 26.73 ▲ 1.38% USD/NIO 36.62 ▲ 0.63% USD/VES 722.19 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 156.98 ▲ 0.25% USD/TTD 6.75 ▲ 1.19% EUR/BRL 5.80 ▼ 0.43% BRENT 84.64 ▲ 1.61% WTI 79.13 ▲ 1.27% IRON ORE 161.91 — — COPPER 6.37 ▲ 2.21% GOLD 4,069 ▲ 1.79% SILVER 59.13 ▲ 2.60% SOY 1,192 ▼ 0.81% CORN 460.75 ▲ 5.25% WHEAT 645.75 ▲ 2.99% COFFEE 324.55 ▼ 4.94% SUGAR 14.92 ▲ 1.15% ORANGE JUICE 140.60 ▼ 1.37% COTTON 81.68 ▲ 2.32% COCOA 5,912 ▲ 3.79% BEEF 231.80 ▼ 1.25% CATTLE 348.85 ▼ 1.55% LITHIUM 71.24 ▲ 1.43% PETR4 40.56 ▼ 0.25% VALE3 74.06 ▲ 1.66% ITUB4 43.39 ▼ 0.30% BBDC4 18.50 ▼ 1.44% ABEV3 15.84 ▲ 0.06% BBAS3 20.50 ▲ 1.28% B3SA3 15.32 ▲ 1.32% WEGE3 44.22 ▼ 0.38% PRIO3 56.98 ▼ 0.38% SUZB3 41.37 ▼ 0.29% RENT3 40.39 ▲ 0.47% AZZA3 18.80 ▼ 2.19% CSAN3 3.88 ▼ 0.51% RAIZ4 0.31 ▼ 6.06% PCAR3 2.47 ▼ 4.63% GMAT3 3.95 ▲ 0.25% PSSA3 54.20 ▲ 0.30% CVCB3 1.33 ▲ 6.40% POSI3 3.93 ▼ 1.50% SLCE3 13.71 ▼ 1.15% NATU3 8.51 ▼ 1.05% BRKM5 6.65 ▼ 4.18% RANI3 8.02 ▲ 0.88% CSNA3 5.12 ▼ 2.29% CMIN3 5.15 ▼ 5.50% USIM5 8.26 ▼ 1.43% GGBR4 23.16 ▲ 1.49% ENEV3 26.77 ▼ 0.41% CPFE3 47.19 ▲ 0.75% CMIG4 11.11 ▲ 0.36% EQTL3 40.72 ▲ 1.27% LREN3 14.12 ▼ 0.21% VIVT3 35.43 ▲ 2.02% RAIL3 14.13 ▲ 0.14% KLABIN 17.40 ▼ 0.46% RAIA DROGASIL 18.32 ▲ 0.66% RDOR3 35.73 ▲ 0.48% HAPV3 10.64 ▲ 1.72% FLRY3 16.35 ▲ 1.24% SMTO3 16.19 ▼ 1.10% UGPA3 29.90 ▼ 3.33% VBBR3 32.82 ▲ 0.18% BBSE3 40.24 ▼ 0.10% BPAC11 57.70 ▲ 0.31% CURY3 32.67 ▼ 1.36% AERI3 2.08 — 0.00% VIVARA 23.31 ▲ 0.87% COMPASS 25.19 ▲ 1.70% VAMOS 3.05 ▲ 0.99% SANB11 27.28 ▼ 0.33% ASAI3 8.65 ▼ 0.69% SBSP3 30.35 ▼ 0.07% WALMEX 49.53 ▼ 0.24% GMEXICO 200.46 ▲ 2.49% FEMSA 233.44 ▲ 3.59% CEMEX 22.19 ▲ 1.88% GFNORTE 187.05 ▲ 2.74% BIMBO 56.61 ▲ 1.32% TELEVISA 9.47 ▼ 1.46% AMX 22.87 ▲ 1.24% GAP 389.89 ▼ 4.48% ASUR 278.64 ▼ 0.01% OMA 234.04 ▲ 0.31% KOF 181.82 ▲ 0.08% GRUMA 282.09 ▲ 0.26% KIMBER 38.40 ▲ 0.47% SQM-B 67,438 ▲ 0.34% COPEC 6,077 ▲ 0.33% BSANTANDER 78.86 ▲ 0.84% FALABELLA 5,916 ▲ 0.19% ENELAM 85.43 ▲ 1.46% CENCOSUD 2,044 ▲ 0.19% CMPC 1,076 ▼ 0.19% BANCO CHILE 188.21 ▲ 1.74% LATAM AIR 24.88 ▼ 0.08% YPF 77,150 ▼ 0.03% GGAL 8,015 ▼ 0.80% PAMPA 5,185 ▼ 0.77% TXAR 661.00 ▼ 0.53% ALUAR 959.00 ▼ 0.57% TGS 9,695 ▲ 1.31% CEPU 2,313 ▼ 0.26% MIRGOR 16,825 ▼ 1.03% COME 45.15 ▲ 0.83% LOMA NEGRA 3,550 ▲ 1.50% BYMA 302.00 ▼ 2.03% TELECOM ARG 4,285 ▲ 0.82% ECOPETROL 16.02 ▲ 0.85% BANCOLOMBIA 81.33 ▲ 1.13% GRUPO AVAL 4.90 ▼ 0.20% CREDICORP 391.08 ▲ 0.48% SOUTHERN COPPER 179.98 ▲ 3.12% BUENAVENTURA 30.68 ▲ 2.88% MERCADOLIBRE 1,872 ▲ 0.25% NUBANK 14.03 ▲ 2.61% XP 16.79 ▲ 2.57% PAGSEGURO 9.24 ▼ 0.48% STONE 11.21 ▲ 0.54% GLOBANT 31.75 ▼ 1.15% TECNOGLASS 43.44 ▲ 1.40% GAP AIRPORT 223.72 ▼ 3.89% ASUR 278.64 ▼ 0.01% OMA AIRPORT 107.46 ▲ 1.26% AMX ADR 26.20 ▲ 0.65% FEMSA ADR 133.99 ▲ 3.86% CEMEX ADR 12.75 ▲ 2.41% PETROBRAS ADR 17.90 ▲ 0.08% VALE ADR 14.57 ▲ 2.72% ITAU ADR 8.54 ▲ 0.80% SANTANDER BR 5.40 ▲ 0.84% AMBEV ADR 3.10 ▲ 1.14% CSN 1.02 ▼ 0.97% GERDAU 4.58 ▲ 2.00% LATAM ADR 53.72 ▲ 0.72% BTC 64,491 ▲ 3.62% ETH 1,868 ▲ 5.33% SOL 77.06 ▲ 2.94% XRP 1.10 ▲ 3.40% BNB 579.93 ▲ 2.35% ADA 0.16 ▲ 4.18% DOGE 0.07 ▲ 3.58% AVAX 6.64 ▲ 3.04% LINK 8.25 ▲ 4.77% DOT 0.85 ▲ 2.09% LTC 44.55 ▲ 2.44% BCH 236.91 ▲ 0.29% TRX 0.33 ▲ 0.39% XLM 0.18 ▲ 1.88% HBAR 0.07 ▲ 0.28% NEAR 2.04 ▲ 6.27% ATOM 1.55 ▲ 1.24% AAVE 99.20 ▲ 5.13% SELIC 14.25% EMBRAER 82.80 ▼ 0.25% EMBRAER ADR 65.28 ▲ 1.24% JBS 11.82 ▲ 0.13% JBS BDR 59.82 ▼ 1.30% MBRF3 16.09 ▲ 2.35% MBRFY 3.10 ▲ 1.64% INTER 5.68 ▲ 0.44% EGX 52,299 ▼ 0.59% USD/ZAR 16.36 ▼ 0.57% USD/NGN 1,381 ▲ 0.20% NIKKEI 67,744 ▲ 0.74% CSI300 4,797 ▲ 2.15% HSI 24,341 ▲ 0.52% NIFTY 24,052 ▼ 0.66% KOSPI 6,857 ▲ 0.73% JCI 6,040 ▲ 0.03% USD/JPY 162.17 ▼ 0.16% USD/CNY 6.7592 ▼ 0.17% DAX 25,147 ▲ 0.13% CAC 8,367 ▲ 0.03% FTSE 10,529 ▲ 0.30% MIB 52,863 ▲ 0.10% IBEX 19,357 ▲ 0.11% STOXX 642.10 ▲ 0.17% EUR/USD 1.1429 ▲ 0.37% GBP/USD 1.3378 ▲ 0.22% SPX 7,550 ▲ 0.46% DJI 52,471 ▼ 0.05% NDX 29,651 ▲ 1.32% RUT 2,964 ▲ 0.37% TSX 35,304 ▲ 0.14% VIX 16.45 ▼ 4.14% USD/CAD 1.4069 ▼ 0.59% US10Y 4.5850 ▼ 0.52%
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Opinion: Brazil as a Serious Country, Part Três

By · June 19, 2017 · 3 min read

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Opinion by Michael Royster

RIO DE JANEIRO, BRAZIL – A month ago, the Curmudgeon wrote about a sweeping proposal to reform the French political system, made by France’s newly elected president, Emmanuel Macron. In France, the success of that reform will depend upon the National Assembly, whose 577 members were elected this weekend.

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Among the proposals are two that are currently being debated in Brazil’s National Congress — the reformation of labor laws and the reform of the pension system. There, as here, these are highly controversial topics, because they seek to modify long-established policies designed to protect workers.

The Brazilian Congress has long been controlled by a small number of major parties — PT, PMDB, PSDB, DEM and PP — that have persuaded a large number of minor parties to side with them. The means of persuasion have, traditionally, been the awarding of positions in state agencies and state-owned companies.

In France, the National Assembly had long been controlled, until the elections this month, by two major parties, one center-right and the other center-left. Macron, however, changed all this dramatically. He founded a party less than a year ago, whose stated purpose was to challenge the two major parties and “throw the rascals out”.

Astonishingly, he succeeded. Macron’s party, with one ally, has now won a large majority of the positions in the National Assembly. At least half of those seats are now held by persons with no political experience at all—something absolutely unheard of in France.

A few Brazilian politicians have tried the same tack in the past, but none has been successful. Marina Silva founded Rede, but it faltered and she allied herself with PSB, yet failed to win election as President. Gilberto Kassab founded PSD, which claimed it was neither government nor opposition. Kassab’s term as Mayor of São Paulo was so disastrous that his party also foundered.

There are proposals gaining strength in Brazil that it should follow the French example, by throwing all the rascals out. That would involve calling a constitutional convention, whose delegates could not currently hold elective office, and who would have to commit to not becoming candidates for another eight years.

To many, this sounds like “pie in the sky”, a pipe dream that could not possibly be achieved in the real world. But that was how it sounded in France a year ago, and at least part of the dream has come true. French voters had grown so tired of the traditional political parties, that they decided to start over.

The vast majority of Brazilian voters has also grown tired of the traditional political parties, and not just because they are corrupt. The cry of “No one represents me!” is heard throughout Brazil and it constitutes a threat to the very fabric of the nation. As Abraham Lincoln pointed out, a government that is not “of the people, by the people, for the people” will perish from the earth.

The Curmudgeon does not know whether Macron will achieve his goals in a France governed by political neophytes, but he is beginning to consider seriously whether a similar shake-up might be the best way for Brazil to climb out of the political morass into which it has sunk.

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