https://www.wsj.com/articles/brazil-doubles-down-on-reform-11588541718?mod=opinion_lead_pos9
Under the strain of Covid-19, the Brazilian economy is expected to contract by 5% this year. But the outlook isn’t all grim for the world’s ninth-largest economy. Last week a political crisis swirling around President Jair Bolsonaro prompted him to reaffirm his commitment to free-market-minded Economy Minister Paulo Guedes.
Mr. Guedes is the architect of a revolutionary plan to end the decadeslong subsidization of the well-connected in Brasília, paid for by the forgotten man. Progress has been slow since Mr. Bolsonaro took office in January 2019 and now the virus has thrown the reformers a curveball. But the president’s fresh endorsement of Mr. Guedes signals an understanding that his government is built on the popular demand for faster growth and better living standards.
The wild card is whether the government can build a coalition in the National Congress willing to cooperate. That’s a thorny challenge in Brazil’s notoriously fragmented legislature. The socially conservative Mr. Bolsonaro is a former military officer who served 28 years in Congress. As a legislator, he was never prominent in shaping policy. Now swaying the coequal lawmaking body is vital to his efforts to move Brazil ahead.
Mr. Bolsonaro has been full of surprises for left-wing critics. During his presidential campaign in 2018, they labeled him a right-wing extremist and predicted that he would try to impose a military dictatorship. Yet while plenty of leaders around the region are using police-state tactics in national lockdowns to stop the spread of the coronavirus, Mr. Bolsonaro is taking a federalist approach by putting the states in charge.