Lakhasly

His reform attempts directed towards adopting free market policies and foreign borrowing, as foreign debt rose from 150 to 250 billion dollars during his presidency, and this inflation in debt led to a crisis of mistrust in the Brazilian economy, whether from international donors or local and foreign investors. Cardoso's policies also tended towards issuing domestic debt bonds with high interest, which encouraged investors to abandon productive investment in favor of buying government bonds until the domestic debt increased by 900%. Thus, his attempts deviated to more burdens on future generations and did not achieve progress in production, but Only progress in the financial sector, an increase in debt, a greater complication of the crisis of confidence, and of course the continuation of the deteriorating economic conditions of the poor classes.

Towards the end of his presidency, in July 2002, Cardoso desperately sought a new loan from the International Monetary Fund, and pledged to take steps to address mistrust. In August of the same year, the Fund replied that it was ready to lend Brazil a loan of 30 billion dollars, but after the presidential elections and knowing the directions of the new president, and thus Cardoso left power, leaving behind major economic problems that cast a shadow of bankruptcy on the country, despite his tireless attempts to solve these problems. .

("The Real Plan"), devised in the spring of 1994, sought to break inflationary expectations by pegging the real to the U.S.A. dollar. Inflation was brought down to single digit annual figures, but not fast enough to avoid substantial real exchange rate appreciation during the transitional phase of the Plano Real. This appreciation meant that Brazilian goods were now more expensive compared to goods from other countries, which contributed to large current account deficits. However, no shortage of foreign currency ensued because of the financial community's renewed interest in Brazilian markets as inflation rates stabilized and memories of the debt crisis of the 1980s faded.

The Real Plan successfully eliminated inflation, after many failed attempts to control it. Almost 25 million people have turned into consumers.

The maintenance of large current account deficits via capital account surpluses became problematic as investors became more risk averse to emerging market exposure as a consequence of the Asian financial crisis in 1997 and the Russian bond default in August 1998. After crafting a fiscal adjustment program and pledging progress on structural reform, Brazil received a $41.5 billion IMF-led international support program in November 1998. In January 1999, the Brazilian Central Bank announced that the real would no longer be pegged to the U.S.A. dollar. This devaluation helped moderate the downturn in economic growth in 1999 that investors had expressed concerns about over the summer of 1998. Brazil's debt to GDP ratio of 48% for 1999 beat the IMF target and helped reassure investors that Brazil will maintain tight economic and monetary policy even with a floating currency.

The economy grew by 4.4% in 2000, however, problems in Argentina in 2001, and growing concerns that the presidential candidate considered most likely to win, leftist Luis Inácio Lula da Silva, would default on the debt, triggered a confidence crisis that caused the economy to decelerate. Poverty was down to near 16%.

In 2002, Luis Inácio Lula da Silva won the presidential elections and was re-elected in 2006. During his government, the economy began to grow more rapidly. In 2004 Brazil saw a promising growth of 5.7% in GDP, following 2005 with a 3.2% growth, 2006 with a 4.0%, 2007 with a 6.1% and 2008 with a 5.1% growth. Due the 2008-2010 world financial crisis, Brazil's economy was expected to slow down in 2009 between a decline of -0.5% and a growth of 0.0%. In reality, economic growth has continued at a high rate with economic growth hitting 7.5% in 2010("The Real Plan"), devised in the spring of 1994, sought to break inflationary expectations by pegging the real to the U.S.A. dollar. Inflation was brought down to single digit annual figures, but not fast enough to avoid substantial real exchange rate appreciation during the transitional phase of the Plano Real. This appreciation meant that Brazilian goods were now more expensive compared to goods from other countries, which contributed to large current account deficits. However, no shortage of foreign currency ensued because of the financial community's renewed interest in Brazilian markets as inflation rates stabilized and memories of the debt crisis of the 1980s faded.

The Real Plan successfully eliminated inflation, after many failed attempts to control it. Almost 25 million people have turned into consumers.

The maintenance of large current account deficits via capital account surpluses became problematic as investors became more risk averse to emerging market exposure as a consequence of the Asian financial crisis in 1997 and the Russian bond default in August 1998. After crafting a fiscal adjustment program and pledging progress on structural reform, Brazil received a $41.5 billion IMF-led international support program in November 1998. In January 1999, the Brazilian Central Bank announced that the real would no longer be pegged to the U.S.A. dollar. This devaluation helped moderate the downturn in economic growth in 1999 that investors had expressed concerns about over the summer of 1998. Brazil's debt to GDP ratio of 48% for 1999 beat the IMF target and helped reassure investors that Brazil will maintain tight economic and monetary policy even with a floating currency.

The economy grew by 4.4% in 2000, however, problems in Argentina in 2001, and growing concerns that the presidential candidate considered most likely to win, leftist Luis Inácio Lula da Silva, would default on the debt, triggered a confidence crisis that caused the economy to decelerate. Poverty was down to near 16%.

In 2002, Luis Inácio Lula da Silva won the presidential elections and was re-elected in 2006. During his government, the economy began to grow more rapidly. In 2004 Brazil saw a promising growth of 5.7% in GDP, following 2005 with a 3.2% growth, 2006 with a 4.0%, 2007 with a 6.1% and 2008 with a 5.1% growth. Due the 2008-2010 world financial crisis, Brazil's economy was expected to slow down in 2009 between a decline of -0.5% and a growth of 0.0%. In reality, economic growth has continued at a high rate with economic growth hitting 7.5% in 2010

Which he lost, as: “Between paying interest and satisfying the people, I will stand for the people [13].” Finally, as the oligarch stresses, his election was "the best thing that could happen to our country[14]". To the amazement of some of his party's supporters, President Lula quickly became the preferred man for investors and financial markets. It is true that they did everything they could to encourage him to do so.

At that time, the Brazilian economy was subject to a new loan from the International Monetary Fund. However, as explained by The Wall Street Journal, of August 14, 2002, “The IMF loan is structured in such a way as to force the favored left-wing candidates in opinion polls, Luis Inacio “Lula” da Silva and Ciro Gomez, to continue the path of conservative economic policies that It was followed by the outgoing president."