IBOV 177,866 ▲ 2.97% IPSA 11,057 ▲ 0.28% IPC MEX 66,496 ▲ 0.59% MERVAL 3,280,224 ▲ 2.43% COLCAP 2,307.67 ▲ 0.65% BVL PERÚ 56,194.27 ▲ 1.29% USD/BRL5.12▲ 0.23% USD/MXN17.48▲ 0.06% USD/CLP925.87▲ 0.11% USD/COP3,237▼ 0.27% USD/PEN3.41▲ 0.43% USD/ARS1,487▼ 0.03% USD/UYU40.22▲ 1.37% USD/PYG6,055▲ 1.45% USD/BOB10.14▲ 4.01% USD/DOP58.65▲ 0.29% USD/CRC448.82▲ 1.41% USD/GTQ7.63▲ 2.31% USD/HNL26.72▲ 0.09% USD/NIO 36.62 — 0.00% USD/VES719.54▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD158.09▲ 0.40% USD/TTD6.75▲ 1.44% EUR/BRL5.84▲ 0.44% BRENT 78.65 ▲ 3.47% WTI 73.93 ▲ 3.53% IRON ORE 161.91 — — COPPER 6.30 ▲ 1.07% GOLD 4,064 ▼ 0.98% SILVER 58.85 ▼ 1.61% SOY 1,196 ▼ 0.02% CORN 466.75 ▲ 6.56% WHEAT 638.25 ▲ 0.99% COFFEE 334.55 ▼ 2.46% SUGAR 14.77 ▼ 0.74% ORANGE JUICE 145.35 ▼ 1.69% COTTON 81.35 ▲ 1.79% COCOA 5,595 ▼ 5.47% BEEF 230.55 ▼ 2.00% CATTLE 354.60 ▼ 0.44% LITHIUM 72.32 ▼ 0.69% PETR4 39.65 ▲ 1.12% VALE3 74.18 ▲ 1.41% ITUB4 44.30 ▲ 4.02% BBDC4 18.86 ▲ 4.78% ABEV3 15.82 ▲ 0.64% BBAS3 20.58 ▲ 2.90% B3SA3 15.42 ▲ 4.26% WEGE3 46.51 ▲ 1.68% PRIO3 55.45 ▼ 0.29% SUZB3 41.55 ▲ 1.27% RENT3 41.10 ▲ 4.31% AZZA3 19.10 ▲ 3.47% CSAN3 4.07 ▲ 5.44% RAIZ4 0.35 ▼ 5.41% PCAR3 2.73 ▼ 1.09% GMAT3 3.97 ▲ 1.02% PSSA3 54.97 ▲ 3.04% CVCB3 1.25 — 0.00% POSI3 3.97 ▲ 3.12% SLCE3 14.02 ▲ 1.67% NATU3 8.68 ▲ 2.60% BRKM5 6.63 ▲ 4.25% RANI3 8.01 ▲ 1.91% CSNA3 5.18 ▲ 7.92% CMIN3 5.23 ▲ 8.28% USIM5 8.45 ▲ 1.20% GGBR4 23.01 ▲ 2.36% ENEV3 27.55 ▲ 5.15% CPFE3 47.87 ▲ 3.41% CMIG4 11.38 ▲ 2.71% EQTL3 40.91 ▲ 3.54% LREN3 14.62 ▲ 3.32% VIVT3 35.75 ▲ 3.62% RAIL3 14.36 ▲ 4.44% KLABIN 17.54 ▲ 0.80% RAIA DROGASIL 18.77 ▲ 3.53% RDOR3 36.02 ▲ 2.48% HAPV3 10.60 ▲ 5.26% FLRY3 16.42 ▲ 4.25% SMTO3 16.37 ▲ 1.99% UGPA3 30.71 ▲ 2.03% VBBR3 33.00 ▲ 2.80% BBSE3 40.35 ▲ 2.72% BPAC11 58.73 ▲ 5.48% CURY3 34.21 ▲ 4.62% AERI3 2.09 ▲ 1.46% VIVARA 23.53 ▲ 4.21% COMPASS 25.50 ▲ 3.32% VAMOS 3.06 ▲ 3.38% SANB11 27.62 ▲ 5.22% ASAI3 8.87 ▲ 4.85% SBSP3 31.11 ▲ 3.70% WALMEX 49.31 ▲ 0.59% GMEXICO 198.62 ▲ 1.68% FEMSA 223.20 ▲ 0.37% CEMEX 21.82 ▲ 0.51% GFNORTE 186.51 ▲ 0.63% BIMBO 56.06 ▲ 0.23% TELEVISA 9.74 ▲ 2.63% AMX 22.70 ▲ 0.27% GAP 412.01 ▼ 0.41% ASUR 285.12 ▲ 0.53% OMA 235.73 ▼ 0.95% KOF 182.08 ▲ 0.65% GRUMA 282.99 ▲ 0.14% KIMBER 38.13 ▼ 0.81% SQM-B 67,750 ▼ 1.95% COPEC 6,139 ▲ 1.98% BSANTANDER 79.00 ▲ 1.94% FALABELLA 5,905 ▲ 0.92% ENELAM 85.40 ▲ 1.47% CENCOSUD 2,045 ▼ 0.55% CMPC 1,109 ▲ 1.32% BANCO CHILE 188.88 ▲ 1.01% LATAM AIR 26.26 ▼ 0.53% YPF 74,450 ▼ 1.75% GGAL 8,350 ▲ 5.96% PAMPA 5,185 ▼ 0.38% TXAR 671.00 ▲ 0.98% ALUAR 978.00 ▲ 0.98% TGS 9,610 ▲ 3.22% CEPU 2,405 ▲ 3.89% MIRGOR 17,375 ▲ 1.02% COME 45.90 ▲ 1.06% LOMA NEGRA 3,583 ▲ 2.43% BYMA 314.00 ▲ 1.37% TELECOM ARG 4,248 ▲ 3.09% ECOPETROL 15.59 ▲ 1.27% BANCOLOMBIA 82.95 ▲ 2.50% GRUPO AVAL 5.08 ▲ 1.20% CREDICORP 400.81 ▲ 2.27% SOUTHERN COPPER 175.83 ▲ 0.80% BUENAVENTURA 30.00 ▲ 1.52% MERCADOLIBRE 1,852 ▲ 2.46% NUBANK 13.76 ▲ 0.66% XP 16.92 ▲ 3.11% PAGSEGURO 9.25 ▲ 2.78% STONE 11.21 ▲ 2.28% GLOBANT 29.96 ▼ 4.25% TECNOGLASS 43.90 ▲ 1.76% GAP AIRPORT 235.64 ▲ 0.50% ASUR 285.12 ▲ 0.53% OMA AIRPORT 108.09 ▼ 0.22% AMX ADR 26.04 ▲ 0.77% FEMSA ADR 127.70 ▲ 0.55% CEMEX ADR 12.48 ▲ 0.89% PETROBRAS ADR 17.32 ▲ 1.70% VALE ADR 14.46 ▲ 1.69% ITAU ADR 8.62 ▲ 4.11% SANTANDER BR 5.39 ▲ 4.86% AMBEV ADR 3.07 ▲ 0.99% CSN 1.01 ▲ 5.79% GERDAU 4.50 ▲ 2.04% LATAM ADR 56.45 ▼ 1.03% BTC 62,782 ▼ 1.53% ETH 1,780 ▼ 1.43% SOL 76.09 ▼ 1.02% XRP 1.08 ▼ 0.84% BNB 568.96 ▼ 0.87% ADA 0.16 ▼ 1.39% DOGE 0.07 ▼ 0.57% AVAX 6.61 ▲ 3.25% LINK 7.93 ▼ 0.75% DOT 0.83 ▼ 1.56% LTC 43.36 ▼ 1.39% BCH 237.59 ▼ 0.99% TRX 0.33 ▼ 1.27% XLM 0.18 ▼ 1.47% HBAR 0.07 ▼ 1.04% NEAR 1.91 ▲ 1.13% ATOM 1.54 ▼ 1.35% AAVE 95.66 ▼ 1.44% SELIC 14.25% EMBRAER 84.60 ▲ 0.88% EMBRAER ADR 66.01 ▲ 0.72% JBS 11.91 ▲ 1.53% JBS BDR 60.78 ▲ 1.22% MBRF3 15.55 ▲ 0.91% MBRFY 2.97 ▼ 1.00% INTER 5.82 ▲ 1.93% EGX 52,608 ▲ 0.67% USD/ZAR16.37▲ 0.28% USD/NGN 1,376 — 0.00% NIKKEI 67,243 ▼ 1.92% CSI300 4,695 ▼ 1.79% HSI 24,214 ▲ 0.16% NIFTY 24,211 ▲ 0.02% KOSPI 6,807 ▼ 8.95% JCI 6,038 ▲ 1.92% USD/JPY162.16▲ 0.27% USD/CNY6.77▼ 0.17% DAX 25,120 ▲ 0.21% CAC 8,356 ▲ 0.20% FTSE 10,496 ▼ 0.02% MIB 52,804 ▲ 0.36% IBEX 19,429 ▲ 0.23% STOXX 641.17 ▲ 0.01% EUR/USD1.14▲ 0.22% GBP/USD1.34▼ 0.01% SPX 7,575 ▲ 0.42% DJI 52,637 ▲ 0.29% NDX 29,825 ▲ 0.33% RUT 2,978 ▼ 0.49% TSX 35,305 ▲ 0.30% VIX 16.33 ▲ 8.65% USD/CAD1.41▼ 0.17% US10Y 4.5690 ▲ 0.66% IBOV 177,866 ▲ 2.97% IPSA 11,057 ▲ 0.28% IPC MEX 66,496 ▲ 0.59% MERVAL 3,280,224 ▲ 2.43% COLCAP 2,307.67 ▲ 0.65% BVL PERÚ 56,194.27 ▲ 1.29% USD/BRL 5.12 ▲ 0.23% USD/MXN 17.48 ▲ 0.06% USD/CLP 925.87 ▲ 0.11% USD/COP 3,237 ▼ 0.27% USD/PEN 3.41 ▲ 0.43% USD/ARS 1,487 ▼ 0.03% USD/UYU 40.22 ▲ 1.37% USD/PYG 6,055 ▲ 1.45% USD/BOB 10.14 ▲ 4.01% USD/DOP 58.65 ▲ 0.29% USD/CRC 448.82 ▲ 1.41% USD/GTQ 7.63 ▲ 2.31% USD/HNL 26.72 ▲ 0.09% USD/NIO 36.62 — 0.00% USD/VES 719.54 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 158.09 ▲ 0.40% USD/TTD 6.75 ▲ 1.44% EUR/BRL 5.84 ▲ 0.44% BRENT 78.65 ▲ 3.47% WTI 73.93 ▲ 3.53% IRON ORE 161.91 — — COPPER 6.30 ▲ 1.07% GOLD 4,064 ▼ 0.98% SILVER 58.85 ▼ 1.61% SOY 1,196 ▼ 0.02% CORN 466.75 ▲ 6.56% WHEAT 638.25 ▲ 0.99% COFFEE 334.55 ▼ 2.46% SUGAR 14.77 ▼ 0.74% ORANGE JUICE 145.35 ▼ 1.69% COTTON 81.35 ▲ 1.79% COCOA 5,595 ▼ 5.47% BEEF 230.55 ▼ 2.00% CATTLE 354.60 ▼ 0.44% LITHIUM 72.32 ▼ 0.69% PETR4 39.65 ▲ 1.12% VALE3 74.18 ▲ 1.41% ITUB4 44.30 ▲ 4.02% BBDC4 18.86 ▲ 4.78% ABEV3 15.82 ▲ 0.64% BBAS3 20.58 ▲ 2.90% B3SA3 15.42 ▲ 4.26% WEGE3 46.51 ▲ 1.68% PRIO3 55.45 ▼ 0.29% SUZB3 41.55 ▲ 1.27% RENT3 41.10 ▲ 4.31% AZZA3 19.10 ▲ 3.47% CSAN3 4.07 ▲ 5.44% RAIZ4 0.35 ▼ 5.41% PCAR3 2.73 ▼ 1.09% GMAT3 3.97 ▲ 1.02% PSSA3 54.97 ▲ 3.04% CVCB3 1.25 — 0.00% POSI3 3.97 ▲ 3.12% SLCE3 14.02 ▲ 1.67% NATU3 8.68 ▲ 2.60% BRKM5 6.63 ▲ 4.25% RANI3 8.01 ▲ 1.91% CSNA3 5.18 ▲ 7.92% CMIN3 5.23 ▲ 8.28% USIM5 8.45 ▲ 1.20% GGBR4 23.01 ▲ 2.36% ENEV3 27.55 ▲ 5.15% CPFE3 47.87 ▲ 3.41% CMIG4 11.38 ▲ 2.71% EQTL3 40.91 ▲ 3.54% LREN3 14.62 ▲ 3.32% VIVT3 35.75 ▲ 3.62% RAIL3 14.36 ▲ 4.44% KLABIN 17.54 ▲ 0.80% RAIA DROGASIL 18.77 ▲ 3.53% RDOR3 36.02 ▲ 2.48% HAPV3 10.60 ▲ 5.26% FLRY3 16.42 ▲ 4.25% SMTO3 16.37 ▲ 1.99% UGPA3 30.71 ▲ 2.03% VBBR3 33.00 ▲ 2.80% BBSE3 40.35 ▲ 2.72% BPAC11 58.73 ▲ 5.48% CURY3 34.21 ▲ 4.62% AERI3 2.09 ▲ 1.46% VIVARA 23.53 ▲ 4.21% COMPASS 25.50 ▲ 3.32% VAMOS 3.06 ▲ 3.38% SANB11 27.62 ▲ 5.22% ASAI3 8.87 ▲ 4.85% SBSP3 31.11 ▲ 3.70% WALMEX 49.31 ▲ 0.59% GMEXICO 198.62 ▲ 1.68% FEMSA 223.20 ▲ 0.37% CEMEX 21.82 ▲ 0.51% GFNORTE 186.51 ▲ 0.63% BIMBO 56.06 ▲ 0.23% TELEVISA 9.74 ▲ 2.63% AMX 22.70 ▲ 0.27% GAP 412.01 ▼ 0.41% ASUR 285.12 ▲ 0.53% OMA 235.73 ▼ 0.95% KOF 182.08 ▲ 0.65% GRUMA 282.99 ▲ 0.14% KIMBER 38.13 ▼ 0.81% SQM-B 67,750 ▼ 1.95% COPEC 6,139 ▲ 1.98% BSANTANDER 79.00 ▲ 1.94% FALABELLA 5,905 ▲ 0.92% ENELAM 85.40 ▲ 1.47% CENCOSUD 2,045 ▼ 0.55% CMPC 1,109 ▲ 1.32% BANCO CHILE 188.88 ▲ 1.01% LATAM AIR 26.26 ▼ 0.53% YPF 74,450 ▼ 1.75% GGAL 8,350 ▲ 5.96% PAMPA 5,185 ▼ 0.38% TXAR 671.00 ▲ 0.98% ALUAR 978.00 ▲ 0.98% TGS 9,610 ▲ 3.22% CEPU 2,405 ▲ 3.89% MIRGOR 17,375 ▲ 1.02% COME 45.90 ▲ 1.06% LOMA NEGRA 3,583 ▲ 2.43% BYMA 314.00 ▲ 1.37% TELECOM ARG 4,248 ▲ 3.09% ECOPETROL 15.59 ▲ 1.27% BANCOLOMBIA 82.95 ▲ 2.50% GRUPO AVAL 5.08 ▲ 1.20% CREDICORP 400.81 ▲ 2.27% SOUTHERN COPPER 175.83 ▲ 0.80% BUENAVENTURA 30.00 ▲ 1.52% MERCADOLIBRE 1,852 ▲ 2.46% NUBANK 13.76 ▲ 0.66% XP 16.92 ▲ 3.11% PAGSEGURO 9.25 ▲ 2.78% STONE 11.21 ▲ 2.28% GLOBANT 29.96 ▼ 4.25% TECNOGLASS 43.90 ▲ 1.76% GAP AIRPORT 235.64 ▲ 0.50% ASUR 285.12 ▲ 0.53% OMA AIRPORT 108.09 ▼ 0.22% AMX ADR 26.04 ▲ 0.77% FEMSA ADR 127.70 ▲ 0.55% CEMEX ADR 12.48 ▲ 0.89% PETROBRAS ADR 17.32 ▲ 1.70% VALE ADR 14.46 ▲ 1.69% ITAU ADR 8.62 ▲ 4.11% SANTANDER BR 5.39 ▲ 4.86% AMBEV ADR 3.07 ▲ 0.99% CSN 1.01 ▲ 5.79% GERDAU 4.50 ▲ 2.04% LATAM ADR 56.45 ▼ 1.03% BTC 62,782 ▼ 1.53% ETH 1,780 ▼ 1.43% SOL 76.09 ▼ 1.02% XRP 1.08 ▼ 0.84% BNB 568.96 ▼ 0.87% ADA 0.16 ▼ 1.39% DOGE 0.07 ▼ 0.57% AVAX 6.61 ▲ 3.25% LINK 7.93 ▼ 0.75% DOT 0.83 ▼ 1.56% LTC 43.36 ▼ 1.39% BCH 237.59 ▼ 0.99% TRX 0.33 ▼ 1.27% XLM 0.18 ▼ 1.47% HBAR 0.07 ▼ 1.04% NEAR 1.91 ▲ 1.13% ATOM 1.54 ▼ 1.35% AAVE 95.66 ▼ 1.44% SELIC 14.25% EMBRAER 84.60 ▲ 0.88% EMBRAER ADR 66.01 ▲ 0.72% JBS 11.91 ▲ 1.53% JBS BDR 60.78 ▲ 1.22% MBRF3 15.55 ▲ 0.91% MBRFY 2.97 ▼ 1.00% INTER 5.82 ▲ 1.93% EGX 52,608 ▲ 0.67% USD/ZAR 16.35 ▲ 0.05% USD/NGN 1,376 — 0.00% NIKKEI 67,243 ▼ 1.92% CSI300 4,695 ▼ 1.79% HSI 24,214 ▲ 0.16% NIFTY 24,211 ▲ 0.02% KOSPI 6,807 ▼ 8.95% JCI 6,038 ▲ 1.92% USD/JPY 162.12 ▲ 0.28% USD/CNY 6.7655 ▼ 0.02% DAX 25,120 ▲ 0.21% CAC 8,356 ▲ 0.20% FTSE 10,496 ▼ 0.02% MIB 52,804 ▲ 0.36% IBEX 19,429 ▲ 0.23% STOXX 641.17 ▲ 0.01% EUR/USD 1.1431 ▲ 0.11% GBP/USD 1.3395 ▼ 0.02% SPX 7,575 ▲ 0.42% DJI 52,637 ▲ 0.29% NDX 29,825 ▲ 0.33% RUT 2,978 ▼ 0.49% TSX 35,305 ▲ 0.30% VIX 16.33 ▲ 8.65% USD/CAD 1.4134 ▼ 0.13% US10Y 4.5690 ▲ 0.66%
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Opinion: Brazil’s Institutional Problem

By · April 20, 2016 · 3 min read

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Opinion, by Michael Royster

RIO DE JANEIRO, BRAZIL – Brazil’s biggest problem is that, institutionally, it’s living a lie. The 1988 Constitution created an essentially parliamentary system with many institutional features that do not belong to a presidential one. For starters, there are now 35 registered political parties, none of which stands for anything other than getting elected and feeding at the public trough.

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There isn’t even a minimal vote requirement for parties (which are private entities) to receive public campaign funds. There are “suplentes” or substitutes for legislators who take executive positions, but who can step back in whenever they want.

Recently, three of Dilma’s ministers returned to their seats in Congress, taking a temporary leave of absence from their daytime jobs, just so they could vote against impeachment of their boss.

There is the reprehensible, barely comprehensible “party coefficient” system of electing federal, state and municipal deputies, permitting the formation of election coalitions between parties, and ensuring that most deputies don’t actually represent anyone except themselves.

There are “medidas provisórias” or executive decrees with the force of law, common to the many failed parliamentary republics of the early 20th Century. Historically, both Hitler and Mussolini came to power legally by issuing the functional equivalent of “medidas provisórias”.

All these factors combine to make Brazil ungovernable by fair means, but governable by foul—“mensalão”, “Petrolão” and more. Lula understood this very well.

Back in 1999, when plumping for the impeachment of FHC, Lula said publicly that if elected he would use the plethora of parties to take power, distributing high-cash-flow ministries and plush jobs at cash-rich state-owned companies to cronies in exchange for votes. He did precisely that for eight years as President.

Even though sitting at Lula’s right hand the entire time, Dilma never learned the tricks of that trade until it was too late. Her last-gasp attempt to retain the title of President, however, was to appoint Lula as her unofficial Prime Minister. That’s equivalent to resignation and conversion to a parliamentary system whereby she, like Queen Elizabeth II, reigns but does not rule.

Dilma should have resigned months ago, as the Curmudgeon and many other commentators have long pointed out. Had she done so, Brazil would not be living through its current farce, where the corrupt “300 Picaretas” in Congress (Lula’s phrase) have voted to oust the president in favor of her vice president.

Votes of no confidence have no place in presidential systems, but Sunday, April 17th, the Brazilian Congress (oops! sorry, should have said Parliament…) gave a resounding vote of no confidence in Dilma, by an overwhelming 367 deputies out of 513. The Senate will soon conduct its own vote of confidence or no confidence.

Brazil’s biggest problem is that its people do not recognize they are living an institutional lie, where they have inherited the worst of both worlds.

The Curmudgeon, who once studied parliamentary vs presidential systems for one full academic year, begs his readers’ pardon for entering into the realm of political science, rather than mere politics.

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