Navigating Economic and Political Challenges: Lula's Third Term in a Changing World

Authors

  • Alessandro Donadio Miebach UFRGS
  • Henrique Morrone UFRGS
  • Henrique Morrone UFRGS
  • Adalmir Marquetti PUCRS
  • Adalmir Marquetti PUCRS
  • Samuel Volkeis Leitew UFRGS
  • Samuel Volkeis Leitew UFRGS

DOI:

https://doi.org/10.7203/IREP.6.1.29168

Abstract

This article analyses the economic prospects and challenges that Lula's third term may face, considering both short and long-term perspectives. The study examines the factors influencing the profit rate between 2002 and 2023 and the global changes resulting from the dominant rivalry between the United States and China. In the short term, it may be possible to boost demand by increasing the wage share and improving the real average income of the less affluent population through a higher real minimum wage and social transfers. This approach could expand household demand and increase capacity utilization. The economic growth in 2023 exceeded expectations, reflecting the success of these policies. Our findings emphasize the need to promote capital accumulation and sustainable growth through strategic public and state-owned enterprise investments. The government's ability to revitalize economic growth depends on a radical reform of institutions, moving away from neoliberalism and embracing a developmentalist framework within a multipolar world. However, the government is constrained by political limitations in implementing this strategy, which a change in the international order could address.

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References

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Published

2024-07-10

How to Cite

Donadio Miebach, A., Morrone, H., Morrone, H., Marquetti, A., Marquetti, A., Volkeis Leitew, S., & Volkeis Leitew, S. (2024). Navigating Economic and Political Challenges: Lula’s Third Term in a Changing World. International Review of Economic Policy-Revista Internacional De Política Económica, 6(1), 35–49. https://doi.org/10.7203/IREP.6.1.29168
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Vol. 6 No. 1 (2024)

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Articles

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