Brazilian president urges peace in politically divided society

Bloomberg

Luiz Inacio Lula da Silva retook the helm of Latin America’s largest democracy promising to bring back the economic inclusion and prosperity that marked his first two terms as Brazil’s president between 2003 and 2011.
It won’t be easy: Brazil grew more politically polarised over the past two decades, with trust in his Workers’ Party eroded by corruption scandals. The world also became a tougher place
for emerging-market countries, and particularly those with unresolved fiscal issues.
The leftist leader’s inauguration started in Brasilia with a parade through the esplanade of ministries and a first stop at the National Congress. There, the 77-year-old politician was sworn in and delivered his initial speech as president, saying he was signing measures that would allow state-owned companies to resume their role in boosting economic development.
“Public banks, particularly the BNDES, as well as companies that lead growth and innovation such as Petrobras will have a key role in this new cycle,” Lula said, also promising to govern with fiscal and monetary realism.
“The wheel of economy will spin again and popular consumption will have a central role in that process.”
Lula’s second stop was at Planalto Palace, his official working address, where a traditional power handover ceremony took place without the participation of ex-President Jair Bolsonaro, who ditched the inauguration to travel to the US.
Instead, the green-and-yellow sash that’s traditionally passed from one leader to the next was handed to Lula by a Black woman who works as a trash picker — part of larger group including an indigenous leader, a man with physical disability and a black child symbolising the most vulnerable Brazilians. His second speech then took an emotional tone. Speaking before thousands of supporters gathered in front of the palace, Lula started by thanking those who supported him during his time in jail, but said he will govern for all and urged peace in the politically divided society. He was moved to tears when talking about the country’s deep inequalities.
Security was reinforced in Brasilia after some of Bolsonaro’s supporters were involved in violent protests against Lula’s razor-thin victory on October 30. In a more worrisome development, police last month derailed a plan by a man identified as a backer of the conservative leader who intended to blow up a fuel tank trucker near Brasilia’s international airport. The explosion was only one of other terror tactics planned by a group of people who sought to spread chaos, which they believed would force the military to intervene, stopping Lula from taking office.
Pacifying a country politically divided, as well as improving relations with the military, congress and the top court, are among Lula’s most pressing tasks.
His other challenge, possibly the most difficult, is to deliver on several campaign promises that require more social spending and investment at a time Brazil’s public finances are more fragile, inflation remains above target, and interest rates high.
A possible global recession would only add to Brazil’s woes as major central banks continue tightening monetary policy across the globe.