IBOV 176,227 ▲ 0.28% IPSA 10,928 ▲ 0.16% IPC MEX 66,725 ▲ 1.14% MERVAL 3,238,659 ▲ 0.10% COLCAP 2,300.76 ▼ 0.30% BVL PERÚ 56,428.20 ▲ 1.50% USD/BRL5.07▼ 1.25% USD/MXN17.43▼ 0.59% USD/CLP923.80▼ 0.98% USD/COP3,253▼ 0.30% USD/PEN3.39▼ 0.65% USD/ARS1,473▼ 0.67% 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/JMD157.59▲ 0.64% USD/TTD6.75▲ 1.19% EUR/BRL5.80▼ 0.36% BRENT 84.78 ▲ 1.78% WTI 79.09 ▲ 1.22% IRON ORE 161.91 — — COPPER 6.38 ▲ 2.33% GOLD 4,067 ▲ 1.74% SILVER 59.10 ▲ 2.54% SOY 1,192 ▼ 0.83% CORN 460.75 ▲ 5.25% WHEAT 646.75 ▲ 3.15% COFFEE 326.65 ▼ 4.32% SUGAR 14.89 ▲ 0.95% ORANGE JUICE 138.80 ▼ 2.63% COTTON 81.68 ▲ 2.32% COCOA 5,901 ▲ 3.60% BEEF 231.80 ▼ 1.25% CATTLE 349.40 ▼ 1.40% LITHIUM 71.40 ▲ 1.65% PETR4 40.82 ▲ 0.39% VALE3 74.08 ▲ 1.69% ITUB4 43.51 ▼ 0.02% BBDC4 18.59 ▼ 0.96% ABEV3 15.89 ▲ 0.38% BBAS3 20.50 ▲ 1.28% B3SA3 15.32 ▲ 1.32% WEGE3 44.25 ▼ 0.32% PRIO3 57.03 ▼ 0.30% SUZB3 41.14 ▼ 0.84% RENT3 40.35 ▲ 0.37% AZZA3 18.81 ▼ 2.13% CSAN3 3.89 ▼ 0.26% RAIZ4 0.32 ▼ 3.03% PCAR3 2.47 ▼ 4.63% GMAT3 3.96 ▲ 0.51% PSSA3 54.07 ▲ 0.06% CVCB3 1.28 ▲ 2.40% POSI3 3.94 ▼ 1.25% SLCE3 13.71 ▼ 1.15% NATU3 8.51 ▼ 1.05% BRKM5 6.66 ▼ 4.03% RANI3 8.02 ▲ 0.88% CSNA3 5.20 ▼ 0.76% CMIN3 5.22 ▼ 4.22% USIM5 8.29 ▼ 1.07% GGBR4 23.11 ▲ 1.27% ENEV3 26.82 ▼ 0.22% CPFE3 47.02 ▲ 0.38% CMIG4 11.12 ▲ 0.45% EQTL3 40.48 ▲ 0.67% LREN3 14.13 ▼ 0.14% VIVT3 35.30 ▲ 1.64% RAIL3 14.14 ▲ 0.21% KLABIN 17.39 ▼ 0.51% RAIA DROGASIL 18.38 ▲ 0.99% RDOR3 35.60 ▲ 0.11% HAPV3 10.68 ▲ 2.10% FLRY3 16.31 ▲ 0.99% SMTO3 16.22 ▼ 0.92% UGPA3 30.25 ▼ 2.20% VBBR3 32.86 ▲ 0.31% BBSE3 40.15 ▼ 0.32% BPAC11 58.01 ▲ 0.85% CURY3 32.86 ▼ 0.79% AERI3 2.09 ▲ 0.48% VIVARA 23.26 ▲ 0.65% COMPASS 25.13 ▲ 1.45% VAMOS 3.05 ▲ 0.99% SANB11 27.32 ▼ 0.18% ASAI3 8.65 ▼ 0.69% SBSP3 30.31 ▼ 0.20% WALMEX 49.64 ▼ 0.02% GMEXICO 201.59 ▲ 3.07% FEMSA 233.69 ▲ 3.70% CEMEX 22.15 ▲ 1.70% GFNORTE 186.99 ▲ 2.70% BIMBO 56.37 ▲ 0.89% TELEVISA 9.48 ▼ 1.35% AMX 22.86 ▲ 1.20% GAP 386.93 ▼ 5.21% ASUR 278.43 ▼ 0.08% OMA 233.96 ▲ 0.27% KOF 182.17 ▲ 0.50% GRUMA 283.44 ▲ 0.74% KIMBER 38.46 ▲ 0.63% SQM-B 67,880 ▲ 1.00% COPEC 6,082 ▲ 0.41% BSANTANDER 78.65 ▲ 0.58% FALABELLA 5,889 ▼ 0.27% ENELAM 85.49 ▲ 1.53% CENCOSUD 2,064 ▲ 1.19% CMPC 1,081 ▲ 0.26% BANCO CHILE 188.12 ▲ 1.69% LATAM AIR 24.60 ▼ 1.20% YPF 77,375 ▲ 0.26% GGAL 8,025 ▼ 0.68% PAMPA 5,210 ▼ 0.29% TXAR 664.00 ▼ 0.08% ALUAR 960.00 ▼ 0.47% TGS 9,725 ▲ 1.62% CEPU 2,300 ▼ 0.82% MIRGOR 16,825 ▼ 1.03% COME 45.16 ▲ 0.85% LOMA NEGRA 3,565 ▲ 1.93% BYMA 306.00 ▼ 0.73% TELECOM ARG 4,263 ▲ 0.29% ECOPETROL 16.05 ▲ 1.07% BANCOLOMBIA 81.99 ▲ 1.95% GRUPO AVAL 4.92 ▲ 0.20% CREDICORP 390.96 ▲ 0.45% SOUTHERN COPPER 180.16 ▲ 3.23% BUENAVENTURA 30.80 ▲ 3.29% MERCADOLIBRE 1,878 ▲ 0.56% NUBANK 14.01 ▲ 2.45% XP 16.83 ▲ 2.78% PAGSEGURO 9.25 ▼ 0.38% STONE 11.23 ▲ 0.67% GLOBANT 31.86 ▼ 0.81% TECNOGLASS 43.41 ▲ 1.33% GAP AIRPORT 222.39 ▼ 4.46% ASUR 278.43 ▼ 0.08% OMA AIRPORT 107.40 ▲ 1.20% AMX ADR 26.25 ▲ 0.85% FEMSA ADR 134.15 ▲ 3.98% CEMEX ADR 12.72 ▲ 2.17% PETROBRAS ADR 18.00 ▲ 0.64% VALE ADR 14.56 ▲ 2.64% ITAU ADR 8.56 ▲ 1.00% SANTANDER BR 5.40 ▲ 0.84% AMBEV ADR 3.11 ▲ 1.63% CSN 1.03 ▼ 0.49% GERDAU 4.57 ▲ 1.78% LATAM ADR 53.46 ▲ 0.24% BTC 64,712 ▲ 3.97% ETH 1,872 ▲ 5.54% SOL 77.28 ▲ 3.23% XRP 1.10 ▲ 3.64% BNB 581.53 ▲ 2.63% ADA 0.17 ▲ 5.26% DOGE 0.07 ▲ 3.73% AVAX 6.65 ▲ 3.19% LINK 8.27 ▲ 5.06% DOT 0.86 ▲ 2.45% LTC 44.62 ▲ 2.60% BCH 237.99 ▲ 0.74% TRX 0.32 ▲ 0.24% XLM 0.18 ▲ 2.39% HBAR 0.07 ▲ 0.43% NEAR 2.03 ▲ 6.06% ATOM 1.55 ▲ 1.04% AAVE 100.00 ▲ 5.98% SELIC 14.25% EMBRAER 82.96 ▼ 0.06% EMBRAER ADR 65.40 ▲ 1.43% JBS 11.85 ▲ 0.42% JBS BDR 60.11 ▼ 0.82% MBRF3 16.00 ▲ 1.78% MBRFY 3.09 ▲ 1.31% INTER 5.66 ▲ 0.18% EGX 52,299 ▼ 0.59% USD/ZAR16.36▼ 0.68% 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/JPY162.14▼ 0.19% 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▲ 0.45% GBP/USD1.34— 0.00% SPX 7,534 ▲ 0.25% DJI 52,367 ▼ 0.25% NDX 29,581 ▲ 1.08% RUT 2,966 ▲ 0.45% TSX 35,343 ▲ 0.26% VIX 16.64 ▼ 3.03% USD/CAD1.41▼ 0.66% US10Y 4.5870 ▼ 0.48% IBOV 176,227 ▲ 0.28% IPSA 10,928 ▲ 0.16% IPC MEX 66,725 ▲ 1.14% MERVAL 3,238,659 ▲ 0.10% COLCAP 2,300.76 ▼ 0.30% BVL PERÚ 56,428.20 ▲ 1.50% USD/BRL 5.07 ▼ 1.25% USD/MXN 17.43 ▼ 0.59% USD/CLP 923.80 ▼ 0.98% USD/COP 3,253 ▼ 0.30% USD/PEN 3.39 ▼ 0.65% USD/ARS 1,473 ▼ 0.67% 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 157.59 ▲ 0.64% USD/TTD 6.75 ▲ 1.19% EUR/BRL 5.80 ▼ 0.36% BRENT 84.78 ▲ 1.78% WTI 79.09 ▲ 1.22% IRON ORE 161.91 — — COPPER 6.38 ▲ 2.33% GOLD 4,067 ▲ 1.74% SILVER 59.10 ▲ 2.54% SOY 1,192 ▼ 0.83% CORN 460.75 ▲ 5.25% WHEAT 646.75 ▲ 3.15% COFFEE 326.65 ▼ 4.32% SUGAR 14.89 ▲ 0.95% ORANGE JUICE 138.80 ▼ 2.63% COTTON 81.68 ▲ 2.32% COCOA 5,901 ▲ 3.60% BEEF 231.80 ▼ 1.25% CATTLE 349.40 ▼ 1.40% LITHIUM 71.40 ▲ 1.65% PETR4 40.82 ▲ 0.39% VALE3 74.08 ▲ 1.69% ITUB4 43.51 ▼ 0.02% BBDC4 18.59 ▼ 0.96% ABEV3 15.89 ▲ 0.38% BBAS3 20.50 ▲ 1.28% B3SA3 15.32 ▲ 1.32% WEGE3 44.25 ▼ 0.32% PRIO3 57.03 ▼ 0.30% SUZB3 41.14 ▼ 0.84% RENT3 40.35 ▲ 0.37% AZZA3 18.81 ▼ 2.13% CSAN3 3.89 ▼ 0.26% RAIZ4 0.32 ▼ 3.03% PCAR3 2.47 ▼ 4.63% GMAT3 3.96 ▲ 0.51% PSSA3 54.07 ▲ 0.06% CVCB3 1.28 ▲ 2.40% POSI3 3.94 ▼ 1.25% SLCE3 13.71 ▼ 1.15% NATU3 8.51 ▼ 1.05% BRKM5 6.66 ▼ 4.03% RANI3 8.02 ▲ 0.88% CSNA3 5.20 ▼ 0.76% CMIN3 5.22 ▼ 4.22% USIM5 8.29 ▼ 1.07% GGBR4 23.11 ▲ 1.27% ENEV3 26.82 ▼ 0.22% CPFE3 47.02 ▲ 0.38% CMIG4 11.12 ▲ 0.45% EQTL3 40.48 ▲ 0.67% LREN3 14.13 ▼ 0.14% VIVT3 35.30 ▲ 1.64% RAIL3 14.14 ▲ 0.21% KLABIN 17.39 ▼ 0.51% RAIA DROGASIL 18.38 ▲ 0.99% RDOR3 35.60 ▲ 0.11% HAPV3 10.68 ▲ 2.10% FLRY3 16.31 ▲ 0.99% SMTO3 16.22 ▼ 0.92% UGPA3 30.25 ▼ 2.20% VBBR3 32.86 ▲ 0.31% BBSE3 40.15 ▼ 0.32% BPAC11 58.01 ▲ 0.85% CURY3 32.86 ▼ 0.79% AERI3 2.09 ▲ 0.48% VIVARA 23.26 ▲ 0.65% COMPASS 25.13 ▲ 1.45% VAMOS 3.05 ▲ 0.99% SANB11 27.32 ▼ 0.18% ASAI3 8.65 ▼ 0.69% SBSP3 30.31 ▼ 0.20% WALMEX 49.64 ▼ 0.02% GMEXICO 201.59 ▲ 3.07% FEMSA 233.69 ▲ 3.70% CEMEX 22.15 ▲ 1.70% GFNORTE 186.99 ▲ 2.70% BIMBO 56.37 ▲ 0.89% TELEVISA 9.48 ▼ 1.35% AMX 22.86 ▲ 1.20% GAP 386.93 ▼ 5.21% ASUR 278.43 ▼ 0.08% OMA 233.96 ▲ 0.27% KOF 182.17 ▲ 0.50% GRUMA 283.44 ▲ 0.74% KIMBER 38.46 ▲ 0.63% SQM-B 67,880 ▲ 1.00% COPEC 6,082 ▲ 0.41% BSANTANDER 78.65 ▲ 0.58% FALABELLA 5,889 ▼ 0.27% ENELAM 85.49 ▲ 1.53% CENCOSUD 2,064 ▲ 1.19% CMPC 1,081 ▲ 0.26% BANCO CHILE 188.12 ▲ 1.69% LATAM AIR 24.60 ▼ 1.20% YPF 77,375 ▲ 0.26% GGAL 8,025 ▼ 0.68% PAMPA 5,210 ▼ 0.29% TXAR 664.00 ▼ 0.08% ALUAR 960.00 ▼ 0.47% TGS 9,725 ▲ 1.62% CEPU 2,300 ▼ 0.82% MIRGOR 16,825 ▼ 1.03% COME 45.16 ▲ 0.85% LOMA NEGRA 3,565 ▲ 1.93% BYMA 306.00 ▼ 0.73% TELECOM ARG 4,263 ▲ 0.29% ECOPETROL 16.05 ▲ 1.07% BANCOLOMBIA 81.99 ▲ 1.95% GRUPO AVAL 4.92 ▲ 0.20% CREDICORP 390.96 ▲ 0.45% SOUTHERN COPPER 180.16 ▲ 3.23% BUENAVENTURA 30.80 ▲ 3.29% MERCADOLIBRE 1,878 ▲ 0.56% NUBANK 14.01 ▲ 2.45% XP 16.83 ▲ 2.78% PAGSEGURO 9.25 ▼ 0.38% STONE 11.23 ▲ 0.67% GLOBANT 31.86 ▼ 0.81% TECNOGLASS 43.41 ▲ 1.33% GAP AIRPORT 222.39 ▼ 4.46% ASUR 278.43 ▼ 0.08% OMA AIRPORT 107.40 ▲ 1.20% AMX ADR 26.25 ▲ 0.85% FEMSA ADR 134.15 ▲ 3.98% CEMEX ADR 12.72 ▲ 2.17% PETROBRAS ADR 18.00 ▲ 0.64% VALE ADR 14.56 ▲ 2.64% ITAU ADR 8.56 ▲ 1.00% SANTANDER BR 5.40 ▲ 0.84% AMBEV ADR 3.11 ▲ 1.63% CSN 1.03 ▼ 0.49% GERDAU 4.57 ▲ 1.78% LATAM ADR 53.46 ▲ 0.24% BTC 64,712 ▲ 3.97% ETH 1,872 ▲ 5.54% SOL 77.28 ▲ 3.23% XRP 1.10 ▲ 3.64% BNB 581.53 ▲ 2.63% ADA 0.17 ▲ 5.26% DOGE 0.07 ▲ 3.73% AVAX 6.65 ▲ 3.19% LINK 8.27 ▲ 5.06% DOT 0.86 ▲ 2.45% LTC 44.62 ▲ 2.60% BCH 237.99 ▲ 0.74% TRX 0.32 ▲ 0.24% XLM 0.18 ▲ 2.39% HBAR 0.07 ▲ 0.43% NEAR 2.03 ▲ 6.06% ATOM 1.55 ▲ 1.04% AAVE 100.00 ▲ 5.98% SELIC 14.25% EMBRAER 82.96 ▼ 0.06% EMBRAER ADR 65.40 ▲ 1.43% JBS 11.85 ▲ 0.42% JBS BDR 60.11 ▼ 0.82% MBRF3 16.00 ▲ 1.78% MBRFY 3.09 ▲ 1.31% INTER 5.66 ▲ 0.18% EGX 52,299 ▼ 0.59% USD/ZAR 16.37 ▼ 0.52% 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 162.15 ▼ 0.17% 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 1.1434 ▲ 0.41% GBP/USD 1.3388 ▲ 0.29% SPX 7,534 ▲ 0.25% DJI 52,367 ▼ 0.25% NDX 29,581 ▲ 1.08% RUT 2,966 ▲ 0.45% TSX 35,343 ▲ 0.26% VIX 16.64 ▼ 3.03% USD/CAD 1.4066 ▼ 0.61% US10Y 4.5870 ▼ 0.48%
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Opinion: Brazil’s Halfhearted Electoral “Reform”

By · October 5, 2017 · 2 min read

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Opinion, by Michael Royster

RIO DE JANEIRO, BRAZIL – To the surprise of many (including the Curmudgeon) the Brazilian Senate, on October 3rd, approved a Constitutional Amendment that, starting in 2019, will limit the number of political parties represented in federal, state and municipal legislatures.

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The “barrier” is not direct, because it does not prevent parties from having representatives seated in the legislative bodies. Rather, what it does is bar parties from access to official sources of income — the federal electoral fund and the ability to have free TV time during election campaigns.

Since 2015, corporations have been banned from making campaign contributions, and individual political contributions are typically small. Therefore, the fund and the free TV are the principal sources of funding for political parties; it is supposed that without the funds, minuscule parties will not be able to get their propaganda out to voters.

The initial threshold for parties to cross is to have received at least 1.5 percent of the 2018 total vote for the federal Chamber of Deputies. Moreover, to reduce regional disparities, they must have received at least one percent of the total votes in at least nine Brazilian states, or have elected at least one federal deputy in at least nine states.

The percentages increase gradually over the next twelve years, so that by 2033, a party will only have access to official funding if it has received three percent of the vote for federal deputies in 2032, with two percent of the vote in at least nine states, or have elected fifteen federal deputies in nine states.

Based on the 2014 elections, some fourteen political parties (out of the 35 currently registered with the Electoral Tribunal) would not now be represented in Congress if the barrier clause had been in effect.

What this means is that the year 2018 should see a great consolidation of political parties, as the current minnows seek to ensure they will still receive funding in future elections. That is, in theory, a distinct improvement.

The current election rules, which greatly favor incumbents, remain in place for the 2018 elections. Moreover, at the very last minute, Congress also created a second election campaign fund, voting itself another R$1.7 billion (half a billion U.S. dollars). Thus, it is likely that 2019 will see a continuation of the corrupt current composition of Congress.

Is this “reform”? Is half a loaf better than none? The Curmudgeon doesn’t think so, but perhaps he’s wrong (again).

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