Tropical Jungle

Following the standard of the previous government, but with caution, it diminished the aliquot ones of importation of diverse products. The new Brazilian currency in circulation it arrived to be quoted above of the North American currency. It was the start of the stability of the currency, economic growth and of the fall of the inflation. It implanted the Provisory Tax on Movimentao Financeira (IPMF) – tax this that later, in the FHC government was substituted by the CPMF, becoming definitive. A positive point of its government was when in January of 1993, it was congregated with presidents of nineteen parties, in the intention to establish a governabilidade pact and to guarantee support of the Congress. Another factor of important neoliberal characteristic was the retaken one of the process of privatizations, that if became necessary due to the high cost of maintenance of the state ones for the public coffers.

4. Election of a successor With the apogee of the Real Plan, Fernando Enrique Cardoso, then Secretary of the Treasury did not have difficulties to choose itself soon in the first turn, as the new president of the republic in the three elections of October of 1994, conquering 54.3% of the valid votes. The challenge alone was initiating, its government would have that to guarantee the stabilization of the currency and at the same time, to promote economic the growth so longed for. FHC during its government, that had in economic liberalism its stronger characteristic, presented the following proposals: the State would not have would fulfill functions enterprise, that would be transferred to the private initiative; the public finances would have to be balanced and the stimulatons right-handers given to the private companies would be parsimonious; it could not more support privileges for categories of employees; in place of the enterprise functions, it would have to develop social politics more intensely; the country would have that to extend its integration with the Exterior, but with priority for the deepening and expansion of the Mercosul.

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