Read the text below entitled “Facing headwinds, Dilma changes course” so as to answer question:

Facing headwinds, Dilma changes course

Source: www.economist.com (Adapted)

Aug 18th, 2012

The government announces plans to privatise infrastructure, and disappoints striking bureaucrats. In recent years Brazil's government has been able to avoid tough spending choices. Faster economic growth and falling tax evasion have translated into steadily rising revenues, allowing the federal government to hire more workers and pay them more, as well as to boost pensions and social transfers. But the fat times are over. In 2011 economic growth was only 2.7%; this year 2% looks optimistic. Tax revenues are rising only a little faster than infl ation. The government can no longer satisfy everyone.

The noisiest demands come from public-sector workers. Teachers at federal universities have been on strike for three months; they have recently been joined by federal police, tax offi cials and staff at some regulatory agencies. The strikers'demands would swell the government's salary bill by up to 50%; infl ation is running at 5.2%.

Read the text below entitled “Facing headwinds, Dilma changes course” so as to answer question:

Facing headwinds, Dilma changes course

Source: www.economist.com (Adapted)

Aug 18th, 2012

The government announces plans to privatise infrastructure, and disappoints striking bureaucrats. In recent years Brazil's government has been able to avoid tough spending choices. Faster economic growth and falling tax evasion have translated into steadily rising revenues, allowing the federal government to hire more workers and pay them more, as well as to boost pensions and social transfers. But the fat times are over. In 2011 economic growth was only 2.7%; this year 2% looks optimistic. Tax revenues are rising only a little faster than infl ation. The government can no longer satisfy everyone.

The noisiest demands come from public-sector workers. Teachers at federal universities have been on strike for three months; they have recently been joined by federal police, tax offi cials and staff at some regulatory agencies. The strikers'demands would swell the government's salary bill by up to 50%; infl ation is running at 5.2%.

Read the text below entitled “Brazil's big challenge ahead of Rio 2016” so as to answer question:

Brazil´s big challenge ahead of Rio 2016

Source: www.guardian.com.uk (Adapted)

Aug 26th, 2012

Many Brazilians watched the closing ceremony of the London Olympics with trepidation. “Do you think we will be able to manage anything more than a couple of carnival fl oats, some football and traffi c jams?” mused one of my friends.

It is a few years since I have heard such expressions of national self-doubt. When I fi rst arrived in Brazil, almost 10 years ago, the country had just elected its fi rst leftwing president, Luiz Inácio “Lula” da Silva. Both the currency and stock exchange were in freefall as investors took fright.

Lula's fi rst term in offi ce combined cautious economic orthodoxy and some critical social reforms. The minimum wage was raised signifi cantly and an innovative cash transfer called Bolsa Família introduced for poor families. A start was also made in reforming the Brazilian justice system. At the same time the government kept an eye on public spending, ran a primary budget surplus and began to reduce the national debt.

These days the scenario has been changing. Economic growth stalled last year, choked by a hugely overvalued currency. This year looks even worse, as export demand has been hit by the global recession. While the government's success in reducing its still astronomically high inequality was a spur to domestic demand, economic growth was underpinned by the export of primary commodities such as soya, coffee and iron ore.