BRAZILIAN ELECTIONS 2014 - 2NDEDITION PUBLIC AFFAIRS TEAM EDELMAN SIGNIFICA SÃO PAULO | BRAZIL
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Brazilian Elections – nd2014
2 Edition
By
Public Affairs Team
Edelman Significa
São Paulo | Brazil
Introduction
Our first report, released on August 21st, focused on the main topics that were being
discussed during the campaigns and provided a brief bio of the three main presidential
candidates. The election’s first round took place on October 5th and in this report, you will
find a brief analysis of the presidential candidates’ positions on the economy, environment,
health and other issues.
Since Brazil returned to democracy with the 1988 Constitution, Brazilian citizens have
elected Fernando Collor de Melo (PRN 1990), who resigned in 1992, having ceded to
public pressure resulting from a corruption scandal; Fernando Henrique Cardoso (PSDB
1994 and 1998); and Lula (PT 2002 and 2006). In the 2010 elections, Lula supported Dilma
Rousseff, who won the presidency and is now up for reelection.
In the 2014 Elections, the three main candidates were President Dilma (PT), Aécio Neves
(PSDB) and Eduardo Campos (PSB). After the tragic death of Eduardo Campos in August,
Marina Silva replaced Campos as the PSB’s presidential candidate. While Campos had
about 9% of voting intentions, the first poll released after the PSB officially announced
Marina’s candidacy, showed that she had 29% of voting intentions for the first round,
replacing Aécio Neves as President Dilma’s main opponent. However, after the commotion
caused by Campos’ death dissipated, and due to an aggressive campaign against Marina
and her frequent position changes during her campaign, she started to lose votes. It was not
until the last polls were released during election weekend that Aécio Neves appeared ahead
of Marina Silva for the first time in the race.
The Presidential election’s first round final results were announced at 7:56 pm on October
5th, only 12 hours after the start of voting, thanks to the digital system we have in Brazil.
In the second round, Dilma Rousseff will face Aécio Neves. Aécio advanced to the runoff
round, with 33.55% of all valid votes.
Candidate Votes % Valid Votes
Dilma 43.267.668 41.59%
Aécio Neves 34.897.211 33.55%
Marina Silva 22.176.619 21.32%
Other 3.682.304 3.54%
The difference between Aécio Neves and President Dilma Rousseff, of less than 9 million
votes in a universe of 142,821,358 voters, makes it hard to predict any possible result.
Additionally, Marina Silva, who managed to secure 22 million votes, officially announced
her support for candidate Aécio Neves.
In order to inform our clients about the candidates’ plans for Brazil, we highlighted the
most important topics from the campaigns and chose one significant quote that summarizes
the candidate’s thoughts on that matter.
1
Presidential Candidate Profiles (in alphabetical order)
Aécio Neves | for full profile, please refer to the 1stEdition of this
report
Economy
“The Central Bank will have operational autonomy to make an appropriate
financial policy that will control inflation, allowing Brazil to return to a
growth path”.
Aécio Neves is seen by the stock market as a good alternative to Dilma’s Government:
after his significant (and some might say unexpected) number of votes; following the
election São Paulo Stock Exchange had its best trading session in two years. Among other
attitudes that should be taken to boost the economy, Aécio plans to simplify the Brazilian
tax system, creating a Value Added Tax (VAT) to substitute for several other combined
taxes.
Energy
“In my administration, energy and fuel prices will be predictable (…).
Obviously we will have to realign these prices”.
Neves intends to invest in cleaner and renewable sources of energy. Therefore,
incentives for the use of ethanol in vehicles and for the development of wind and biomass
energy are expected. As he stated above, energy and fuel prices will tend to be market-
regulated, with less government intervention.
Livestock and Agriculture
“I will create on my first day a Super-Ministry of Agriculture, which will
have power equal to the Finance and Planning Ministry”.
Aécio Neves plans to prioritize the agriculture sector, allowing it to make
decisions regarding logistic and infrastructure investments (building ports and railways,
for instance). Increasing technology applied to disease control and building up capacity for
grains storage are also part of the plans.
2Infrastructure
“On the first hand, I can say we are planning to create a strong
Infrastructure Ministry”.
Aécio Neves believes in the benefits from partnerships between the government and private
companies as a way to increase Brazil’s competitiveness in the sector. He is also planning
an Infrastructure Ministry, which would deal with investments in highways, railways and
in the energy sector. He plans to increase the investment index from 16.5% to 24% of the
GDP.
Human Rights
“I believe that the homophobia should be treated as a crime”.
Aécios Neves is committed to renewing the principles of equality, security
and peace and plans to prioritize social policies for the more vulnerable population, such
as the LGBT population, women, the elderly and children.
Health
“In our government we will increase investments in public healthcare to
10% of the annual budget”.
Aécio Neves plans to focus the investments of the National Bank of
Economic and Social Development (BNDES) on the health sector, financing young doctors
and increasing the interest of medical professionals to work in needier areas.
Foreign Policy
“I will conduct a foreign policy focused on respecting Brazil. It is not
appropriate that we are tied to ideological links”
Aécio disagrees with the current foreign policy from the Workers Party, as
he believes President Dilma’s party prioritizes relationships with nations with which it has
an ideological link, such as Venezuela and Cuba. He supports a more pragmatic foreign
policy, signing bilateral trade agreements with the European Union, for example.
3Dilma Rousseff | for full profile, please refer to the 1stEdition of this
report
Economy
“We are at a transition stage, no country completely recovered (from the
2008 economic crisis). But if you look at the period of 2011-2014, Brazil
has always had a growth rate above the international average.”
Economic professionals are discontent with Dilma’s administration regarding economic
matters, criticizing the state intervention at the economy. To fight this image, Ms. Rousseff
intends to increase investments in infrastructure and innovation.
Energy
“Our investments will double Brazil’s installed energy capacity in 15 years.”
Dilma Rousseff was the Mines and Energy Minister in Lula’s administration.
Both governments started building some of the biggest dams in the country’s recent history:
Belo Monte, Santo Antonio, Jirau, among others. On the other hand, Dilma’s determination
to have control over energy and fuel prices is increasing costs for the sector.
Livestock and Agriculture
“The agriculture sector generates income, jobs, technology, positive trade
balance and also is a source of pride for Brazil and Brazilians”
During Dilma Rousseff’s Administration, the new Forestry Act was developed
and approved. The Act assured more sustainable ways of agricultural production and more
legal support for the producers, especially smaller ones, aiming to avoid harmful
intervention from control and supervision agencies.
4Infrastructure
“Our expectation is to continue to create a favorable environment to
expand and accelerate infrastructure investments as to increase Brazil’s
competitiveness”
The pillar of the Worker’s Party (PT) for the infrastructure sector is the
Brazilian Growth Acceleration Program (PAC), a federal program. Its objective is to
accelerate Brazilian economic growth through private and state investments and public
funding. Examples of works from PAC are the construction of Belo Monte dam and São
Paulo’s subway system expansion.
Human Rights
“I’m against any form of violence. In the specific case of homophobia, I
believe it is an offense to Brazil. I believe we have to criminalize
homophobia”
The president has made declarations in favor of criminalizing offenses against
homosexuals. Additionally, President Dilma seeks greater equality in the country through
income distribution programs.
Health
“Brazil can only offer quality public healthcare if we admit our deficiencies,
if we try to resolve them and to search for support from those who can and
want to help”
Dilma Rousseff’s government created discontentment among health professionals when it
launched “Mais Médicos”. This is a healthcare program in partnership with the Cuban
Government that brings Cuban doctors to Brazil, especially in regions lacking in doctors
and medical care. Dilma plans to expand the program if reelected.
Foreign Policy
“The delay in the expansion of vote power from the developing countries
at those institutions (International Monetary Fund and International
Bank)is unacceptable”
One of Dilma Rousseff’s main pillars for foreign policy is to prioritize the relationship with
developing countries. The plan is to strengthen Mercosul*, UNASUL** and the Latin
American and Caribbean Countries Community (CELAC), through economic integration,
trade stimulation and physical and energy infrastructure integration. She also seeks to
empower Brazil in international organizations.
5*Mercosul: Mercosul is the free trade customs union with Brazil, Argentina, Uruguay,
Venezuela and Paraguay.
**Unasul: Unasul’s objectives are to build an integration space for the cultural, social,
economic and political sectors from Argentina, Brazil, Bolivia, Chile, Ecuador, Guyana,
Peru, Suriname, Uruguay and Venezuela.
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