Economy Minister Guedes picks his job over his beliefs

Back in 2018, ultra-liberal economist Paulo Guedes was seen as the guarantor of Jair Bolsonaro’s presidential bid. For big-time investors in São Paulo, the promise of market-friendly reform with Mr. Guedes at the wheel made Mr. Bolsonaro’s inflammatory and aggressive politics more palatable. However, as we have shown on The Brazilian Report, Economy Minister Paulo Guedes’ influence has been on the wane since day one of the Bolsonaro administration. Once seen as the Chicago School-educated glue holding the government together, Mr. Guedes is now marginalized, ridiculed, and made expendable.

The latest example of his fall from grace came this week, as the government launched a thorough reshuffle of Mr. Guedes’ Economy Ministry. Three of his key advisors are out, and more may be heading for the exit soon.

With Congress breathing down the Economy Ministry’s neck after lengthy squabbles over the 2021 budget — approved last week, almost four months late — Mr. Guedes announced that