Today, we explain two key resignations in the Economy Ministry. Brazil is doing its homework to gain entry to the OECD. The country has its eye on the Russian coronavirus vaccine. And more evidence of money laundering by the First Family.
Frustration leads to exodus in the Economy Ministry
The Economy Ministry lost two of its top staffers on Tuesday: Privatizations Secretary Salim Mattar and Debureaucratization Secretary Paulo Uebel. According to Economy Minister Paulo Guedes, the pair resigned due to their frustration with the ministry’s difficulty to fulfill its goals of privatizing state-owned companies and reforming the structure of public service in Brazil.
Why it matters. The two resignations come as Mr. Guedes loses influence within the administration. With the pandemic, the government’s military wing — which is in favor of increasing public spending in an effort to foster economic growth — has become more dominant.
Reality check. Between October 2018, when Jair Bolsonaro won the presidential election, and January 2019, when the new government took office, Economy Minister Paulo Guedes displayed his fiscal hawkishness at will. He said his goal was to “tame the Leviathan” that is Brazil, slashing taxes to all-time lows and privatizing “all state companies,...