IBOV 176,706 ▲ 0.55% IPSA 10,928 ▲ 0.16% IPC MEX 66,697 ▲ 1.10% MERVAL 3,235,295 ▼ 1.37% COLCAP 2,312.56 ▲ 0.21% BVL PERÚ 56,428.20 ▲ 3.07% USD/BRL5.07▼ 1.26% USD/MXN17.39▼ 0.78% USD/CLP923.18▼ 1.04% USD/COP3,244▼ 0.58% USD/PEN3.40▼ 0.21% USD/ARS1,477▼ 0.40% USD/UYU40.23▲ 0.99% USD/PYG6,039▲ 1.12% USD/BOB10.35▲ 6.04% USD/DOP58.33▲ 0.42% 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/JMD157.59▲ 0.64% USD/TTD6.75▲ 1.19% EUR/BRL5.81▼ 0.22% BRENT 85.62 ▲ 2.79% WTI 79.97 ▲ 2.34% IRON ORE 161.91 — — COPPER 6.43 ▲ 3.14% GOLD 4,091 ▲ 2.36% SILVER 59.73 ▲ 3.64% SOY 1,193 ▼ 0.75% CORN 460.25 ▲ 5.14% WHEAT 639.50 ▲ 1.99% COFFEE 334.75 ▼ 1.95% SUGAR 14.83 ▲ 0.54% ORANGE JUICE 135.35 ▼ 5.05% COTTON 81.07 ▲ 1.55% COCOA 5,644 ▼ 0.91% BEEF 228.73 ▼ 2.56% CATTLE 350.63 ▼ 1.05% LITHIUM 71.81 ▲ 2.23% PETR4 40.82 ▲ 0.39% VALE3 74.23 ▲ 1.89% ITUB4 43.82 ▲ 0.69% BBDC4 18.91 ▲ 0.75% ABEV3 15.92 ▲ 0.57% BBAS3 20.44 ▲ 0.99% B3SA3 15.33 ▲ 1.39% WEGE3 44.40 ▲ 0.02% PRIO3 57.16 ▼ 0.07% SUZB3 41.13 ▼ 0.87% RENT3 40.53 ▲ 0.82% AZZA3 19.06 ▼ 0.83% CSAN3 3.89 ▼ 0.26% RAIZ4 0.34 ▲ 3.03% PCAR3 2.53 ▼ 2.32% GMAT3 3.96 ▲ 0.51% PSSA3 54.42 ▲ 0.70% CVCB3 1.32 ▲ 5.60% POSI3 3.96 ▼ 0.75% SLCE3 13.83 ▼ 0.29% NATU3 8.50 ▼ 1.16% BRKM5 6.86 ▼ 1.15% RANI3 7.98 ▲ 0.38% CSNA3 5.17 ▼ 1.34% CMIN3 5.20 ▼ 4.59% USIM5 8.22 ▼ 1.91% GGBR4 23.06 ▲ 1.05% ENEV3 26.83 ▼ 0.19% CPFE3 47.03 ▲ 0.41% CMIG4 11.12 ▲ 0.45% EQTL3 40.72 ▲ 1.27% LREN3 14.12 ▼ 0.21% VIVT3 35.26 ▲ 1.53% RAIL3 14.14 ▲ 0.21% KLABIN 17.38 ▼ 0.57% RAIA DROGASIL 18.54 ▲ 1.87% RDOR3 36.24 ▲ 1.91% HAPV3 10.62 ▲ 1.53% FLRY3 16.23 ▲ 0.50% SMTO3 16.31 ▼ 0.37% UGPA3 30.93 ▲ 0.72% VBBR3 32.24 ▼ 1.59% BBSE3 40.49 ▲ 0.52% BPAC11 57.66 ▲ 0.24% CURY3 33.20 ▲ 0.24% AERI3 2.09 ▲ 0.48% VIVARA 23.33 ▲ 0.95% COMPASS 24.93 ▲ 0.65% VAMOS 3.03 ▲ 0.33% SANB11 27.47 ▲ 0.37% ASAI3 8.67 ▼ 0.46% SBSP3 30.53 ▲ 0.53% WALMEX 49.57 ▼ 0.16% GMEXICO 203.10 ▲ 3.84% FEMSA 225.58 ▲ 0.10% CEMEX 22.65 ▲ 3.99% GFNORTE 183.32 ▲ 0.69% BIMBO 55.75 ▼ 0.21% TELEVISA 9.57 ▼ 0.42% AMX 22.78 ▲ 0.84% GAP 396.98 ▼ 2.75% ASUR 279.65 ▲ 0.36% OMA 233.41 ▲ 0.04% KOF 180.40 ▼ 0.70% GRUMA 281.86 ▲ 0.17% KIMBER 38.30 ▲ 0.21% SQM-B 67,211 — 0.00% COPEC 6,057 — 0.00% BSANTANDER 78.20 — 0.00% FALABELLA 5,905 — 0.00% ENELAM 84.20 ▼ 1.41% CENCOSUD 2,040 — 0.00% CMPC 1,078 — 0.00% BANCO CHILE 185.00 — 0.00% LATAM AIR 24.90 — 0.00% YPF 77,175 — 0.00% GGAL 8,080 — 0.00% PAMPA 5,225 — 0.00% TXAR 664.50 — 0.00% ALUAR 964.50 — 0.00% TGS 9,570 — 0.00% CEPU 2,319 — 0.00% MIRGOR 17,000 ▼ 1.45% COME 44.78 — 0.00% LOMA NEGRA 3,498 — 0.00% BYMA 308.25 — 0.00% TELECOM ARG 4,250 — 0.00% ECOPETROL 16.12 ▲ 1.51% BANCOLOMBIA 82.02 ▲ 1.99% GRUPO AVAL 5.00 ▲ 1.83% CREDICORP 394.90 ▲ 1.46% SOUTHERN COPPER 184.74 ▲ 5.85% BUENAVENTURA 31.40 ▲ 5.30% MERCADOLIBRE 1,867 ▼ 0.01% NUBANK 14.05 ▲ 2.78% XP 16.63 ▲ 1.58% PAGSEGURO 9.37 ▲ 0.97% STONE 11.32 ▲ 1.52% GLOBANT 31.76 ▼ 1.12% TECNOGLASS 43.46 ▲ 1.44% GAP AIRPORT 224.47 ▼ 3.57% ASUR 279.65 ▲ 0.36% OMA AIRPORT 107.55 ▲ 1.34% AMX ADR 26.07 ▲ 0.15% FEMSA ADR 130.67 ▲ 1.29% CEMEX ADR 13.08 ▲ 5.06% PETROBRAS ADR 18.02 ▲ 0.78% VALE ADR 14.62 ▲ 3.07% ITAU ADR 8.63 ▲ 1.83% SANTANDER BR 5.45 ▲ 1.87% AMBEV ADR 3.12 ▲ 1.80% CSN 1.02 ▼ 0.97% GERDAU 4.56 ▲ 1.56% LATAM ADR 53.69 ▲ 0.68% BTC 63,780 ▲ 2.48% ETH 1,870 ▲ 5.43% SOL 76.86 ▲ 2.67% XRP 1.10 ▲ 3.06% BNB 578.40 ▲ 2.08% ADA 0.16 ▲ 4.05% DOGE 0.07 ▲ 2.76% AVAX 6.65 ▲ 3.19% LINK 8.29 ▲ 5.30% DOT 0.85 ▲ 1.61% LTC 44.65 ▲ 2.67% BCH 239.00 ▲ 1.17% TRX 0.33 ▲ 0.36% XLM 0.18 ▲ 2.37% HBAR 0.07 ▲ 1.00% NEAR 2.03 ▲ 5.65% ATOM 1.55 ▲ 0.78% AAVE 99.05 ▲ 4.97% SELIC 14.25% EMBRAER 83.01 — 0.00% EMBRAER ADR 65.38 ▲ 1.40% JBS 11.87 ▲ 0.63% JBS BDR 60.13 ▼ 0.79% MBRF3 15.86 ▲ 0.89% MBRFY 3.05 — 0.00% INTER 5.77 ▲ 2.12% EGX 52,299 ▼ 0.59% USD/ZAR16.33▼ 0.87% 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/JPY161.93▼ 0.32% USD/CNY6.76▼ 0.32% DAX 25,087 ▼ 0.11% CAC 8,366 ▲ 0.02% FTSE 10,537 ▲ 0.37% MIB 52,863 ▲ 0.10% IBEX 19,352 ▲ 0.09% STOXX 641.95 ▲ 0.15% EUR/USD1.15▲ 0.62% GBP/USD1.34▲ 0.21% SPX 7,540 ▲ 0.33% DJI 52,557 ▲ 0.11% NDX 29,575 ▲ 1.06% RUT 2,976 ▲ 0.78% TSX 35,404 ▲ 0.43% VIX 16.53 ▼ 3.67% USD/CAD1.41▼ 0.60% US10Y 4.5750 ▼ 0.74% IBOV 176,706 ▲ 0.55% IPSA 10,928 ▲ 0.16% IPC MEX 66,697 ▲ 1.10% MERVAL 3,235,295 ▼ 1.37% COLCAP 2,312.56 ▲ 0.21% BVL PERÚ 56,428.20 ▲ 3.07% USD/BRL 5.07 ▼ 1.26% USD/MXN 17.39 ▼ 0.78% USD/CLP 923.18 ▼ 1.04% USD/COP 3,244 ▼ 0.58% USD/PEN 3.40 ▼ 0.21% USD/ARS 1,477 ▼ 0.40% USD/UYU 40.23 ▲ 0.99% USD/PYG 6,039 ▲ 1.12% USD/BOB 10.35 ▲ 6.04% USD/DOP 58.33 ▲ 0.42% 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 157.59 ▲ 0.64% USD/TTD 6.75 ▲ 1.19% EUR/BRL 5.81 ▼ 0.22% BRENT 85.62 ▲ 2.79% WTI 79.97 ▲ 2.34% IRON ORE 161.91 — — COPPER 6.43 ▲ 3.14% GOLD 4,091 ▲ 2.36% SILVER 59.73 ▲ 3.64% SOY 1,193 ▼ 0.75% CORN 460.25 ▲ 5.14% WHEAT 639.50 ▲ 1.99% COFFEE 334.75 ▼ 1.95% SUGAR 14.83 ▲ 0.54% ORANGE JUICE 135.35 ▼ 5.05% COTTON 81.07 ▲ 1.55% COCOA 5,644 ▼ 0.91% BEEF 228.73 ▼ 2.56% CATTLE 350.63 ▼ 1.05% LITHIUM 71.81 ▲ 2.23% PETR4 40.82 ▲ 0.39% VALE3 74.23 ▲ 1.89% ITUB4 43.82 ▲ 0.69% BBDC4 18.91 ▲ 0.75% ABEV3 15.92 ▲ 0.57% BBAS3 20.44 ▲ 0.99% B3SA3 15.33 ▲ 1.39% WEGE3 44.40 ▲ 0.02% PRIO3 57.16 ▼ 0.07% SUZB3 41.13 ▼ 0.87% RENT3 40.53 ▲ 0.82% AZZA3 19.06 ▼ 0.83% CSAN3 3.89 ▼ 0.26% RAIZ4 0.34 ▲ 3.03% PCAR3 2.53 ▼ 2.32% GMAT3 3.96 ▲ 0.51% PSSA3 54.42 ▲ 0.70% CVCB3 1.32 ▲ 5.60% POSI3 3.96 ▼ 0.75% SLCE3 13.83 ▼ 0.29% NATU3 8.50 ▼ 1.16% BRKM5 6.86 ▼ 1.15% RANI3 7.98 ▲ 0.38% CSNA3 5.17 ▼ 1.34% CMIN3 5.20 ▼ 4.59% USIM5 8.22 ▼ 1.91% GGBR4 23.06 ▲ 1.05% ENEV3 26.83 ▼ 0.19% CPFE3 47.03 ▲ 0.41% CMIG4 11.12 ▲ 0.45% EQTL3 40.72 ▲ 1.27% LREN3 14.12 ▼ 0.21% VIVT3 35.26 ▲ 1.53% RAIL3 14.14 ▲ 0.21% KLABIN 17.38 ▼ 0.57% RAIA DROGASIL 18.54 ▲ 1.87% RDOR3 36.24 ▲ 1.91% HAPV3 10.62 ▲ 1.53% FLRY3 16.23 ▲ 0.50% SMTO3 16.31 ▼ 0.37% UGPA3 30.93 ▲ 0.72% VBBR3 32.24 ▼ 1.59% BBSE3 40.49 ▲ 0.52% BPAC11 57.66 ▲ 0.24% CURY3 33.20 ▲ 0.24% AERI3 2.09 ▲ 0.48% VIVARA 23.33 ▲ 0.95% COMPASS 24.93 ▲ 0.65% VAMOS 3.03 ▲ 0.33% SANB11 27.47 ▲ 0.37% ASAI3 8.67 ▼ 0.46% SBSP3 30.53 ▲ 0.53% WALMEX 49.57 ▼ 0.16% GMEXICO 203.10 ▲ 3.84% FEMSA 225.58 ▲ 0.10% CEMEX 22.65 ▲ 3.99% GFNORTE 183.32 ▲ 0.69% BIMBO 55.75 ▼ 0.21% TELEVISA 9.57 ▼ 0.42% AMX 22.78 ▲ 0.84% GAP 396.98 ▼ 2.75% ASUR 279.65 ▲ 0.36% OMA 233.41 ▲ 0.04% KOF 180.40 ▼ 0.70% GRUMA 281.86 ▲ 0.17% KIMBER 38.30 ▲ 0.21% SQM-B 67,211 — 0.00% COPEC 6,057 — 0.00% BSANTANDER 78.20 — 0.00% FALABELLA 5,905 — 0.00% ENELAM 84.20 ▼ 1.41% CENCOSUD 2,040 — 0.00% CMPC 1,078 — 0.00% BANCO CHILE 185.00 — 0.00% LATAM AIR 24.90 — 0.00% YPF 77,175 — 0.00% GGAL 8,080 — 0.00% PAMPA 5,225 — 0.00% TXAR 664.50 — 0.00% ALUAR 964.50 — 0.00% TGS 9,570 — 0.00% CEPU 2,319 — 0.00% MIRGOR 17,000 ▼ 1.45% COME 44.78 — 0.00% LOMA NEGRA 3,498 — 0.00% BYMA 308.25 — 0.00% TELECOM ARG 4,250 — 0.00% ECOPETROL 16.12 ▲ 1.51% BANCOLOMBIA 82.02 ▲ 1.99% GRUPO AVAL 5.00 ▲ 1.83% CREDICORP 394.90 ▲ 1.46% SOUTHERN COPPER 184.74 ▲ 5.85% BUENAVENTURA 31.40 ▲ 5.30% MERCADOLIBRE 1,867 ▼ 0.01% NUBANK 14.05 ▲ 2.78% XP 16.63 ▲ 1.58% PAGSEGURO 9.37 ▲ 0.97% STONE 11.32 ▲ 1.52% GLOBANT 31.76 ▼ 1.12% TECNOGLASS 43.46 ▲ 1.44% GAP AIRPORT 224.47 ▼ 3.57% ASUR 279.65 ▲ 0.36% OMA AIRPORT 107.55 ▲ 1.34% AMX ADR 26.07 ▲ 0.15% FEMSA ADR 130.67 ▲ 1.29% CEMEX ADR 13.08 ▲ 5.06% PETROBRAS ADR 18.02 ▲ 0.78% VALE ADR 14.62 ▲ 3.07% ITAU ADR 8.63 ▲ 1.83% SANTANDER BR 5.45 ▲ 1.87% AMBEV ADR 3.12 ▲ 1.80% CSN 1.02 ▼ 0.97% GERDAU 4.56 ▲ 1.56% LATAM ADR 53.69 ▲ 0.68% BTC 63,780 ▲ 2.48% ETH 1,870 ▲ 5.43% SOL 76.86 ▲ 2.67% XRP 1.10 ▲ 3.06% BNB 578.40 ▲ 2.08% ADA 0.16 ▲ 4.05% DOGE 0.07 ▲ 2.76% AVAX 6.65 ▲ 3.19% LINK 8.29 ▲ 5.30% DOT 0.85 ▲ 1.61% LTC 44.65 ▲ 2.67% BCH 239.00 ▲ 1.17% TRX 0.33 ▲ 0.36% XLM 0.18 ▲ 2.37% HBAR 0.07 ▲ 1.00% NEAR 2.03 ▲ 5.65% ATOM 1.55 ▲ 0.78% AAVE 99.05 ▲ 4.97% SELIC 14.25% EMBRAER 83.01 — 0.00% EMBRAER ADR 65.38 ▲ 1.40% JBS 11.87 ▲ 0.63% JBS BDR 60.13 ▼ 0.79% MBRF3 15.86 ▲ 0.89% MBRFY 3.05 — 0.00% INTER 5.77 ▲ 2.12% EGX 52,299 ▼ 0.59% USD/ZAR 16.33 ▼ 0.76% 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 161.94 ▼ 0.31% USD/CNY 6.7584 ▼ 0.18% DAX 25,087 ▼ 0.11% CAC 8,366 ▲ 0.02% FTSE 10,537 ▲ 0.37% MIB 52,863 ▲ 0.10% IBEX 19,352 ▲ 0.09% STOXX 641.95 ▲ 0.15% EUR/USD 1.1453 ▲ 0.58% GBP/USD 1.3415 ▲ 0.49% SPX 7,540 ▲ 0.33% DJI 52,557 ▲ 0.11% NDX 29,575 ▲ 1.06% RUT 2,976 ▲ 0.78% TSX 35,404 ▲ 0.43% VIX 16.53 ▼ 3.67% USD/CAD 1.4070 ▼ 0.59% US10Y 4.5750 ▼ 0.74%
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Opinion: Brazil’s BBB and Voting Blocs – Bolsonaro’s Challenge

By · January 22, 2019 · 3 min read

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Opinion, by Michael Royster

RIO DE JANEIRO, BRAZIL – Fear not, gentle reader — the BBB in the headline is NOT about Brazilian broadcasting’s bowdlerized debauchery.  Rather, it stands for Bancada do Boi, da Bala e da Biblia. The term, coined in 2015, describes powerful cross-party voting blocs in Brazil’s Congress.

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Bancada” literally means “bench”, upon which members of parliament (“benchers”) sit. US terminology varies (farm bloc, Black Caucus, gun lobby). The Curmudgeon will stick with Bloc, the alliterative Plan B.

Boi, Bala e Bíblia” are literally “beef, bullets and bible”. “Beef” includes (soy)beans, because the bloc represents agribusiness. “Bullets” includes those tough on crime and supporting military intervention. “Bible” includes evangelical Christians favoring “traditional family values”.

Bancada BBB comprises the three largest cross-party voting blocs in Brazil’s Congress, particularly after the 2018 elections. President Bolsonaro is looking to these blocs and several others, rather than to traditional political parties, as the principal means to pass legislation he favors.

This approach is a radical departure from past practice, and reinforces his campaign promise not to use pork-barrel patronage to purchase legislative majorities. His predecessors in office created dozens of useless but lucrative cabinet ministries and handed out powerful administrative positions in government-owned companies: the inevitable result was systemic corruption.

At an institutional level, however, putting aside questions of corruption, the use of voting blocs poses a serious threat to the entire structure of Brazilian politics. In almost all democracies, political parties are essential to governing the country. In theory, they represent voters and create consensus.

Brazil’s democracy has two features that make parties more crucial than in many other countries. The first is the “party list” system for choosing legislators. The second is “coalition presidentialism”.

In Brazil, when you vote for legislators, you are really voting for the party they belong to, not the individual candidate. There are no separate election districts in Brazil – legislators do not represent voters in specific geographic areas. There is no Federal or State Deputy from Barra da Tijuca or Municipal Assemblywoman from Copacabana.

In this institutional structure, where the political party bosses control who can be a candidate, the prime loyalty of legislators is to the party bosses, not to voters in a specific constituency.

When a vote in Congress is pending, the bosses typically demand loyalty to the party position. Multi-party blocs based on single issues (beef, bullet, bible) subvert this system, because the party bosses lose control.

Brazil’s second distinctive feature — coalition presidentialism — is an egregious example of trying to graft a feature of parliamentary systems of government onto a presidential system. Very few countries have tried this, because most set limits on the number of political parties in their legislatures.

Moreover, it has not worked well in Brazil or any other country, because it inevitably leads to corruption and a lack of governability—no President can hope to control 25 or 30 political parties without bribes, backhanders and baksheesh.

For decades, Bolsonaro was a Congressional backbencher (“baixo clero”) with no real party ties or influence. His plan, consistent with this background, is to rely on the Bancada BBB and other blocs, rather than on a coalition of political parties, to enact his legislative programs.

That is a risky proposition for him and for Brazil’s legislative institutions.

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