BRAZIL'S BOLD TURN

Lula’s industrial policy signals a major shift in Brazil’s national-security strategy. To boost self-sufficiency in defense production, the administration has set an ambitious target of producing half of the country’s critical defense technologies domestically

- Jayati Ghosh

For many in the developing world, Brazil is a rare beacon of hope in an otherwise bleak global landscape. Along with his South African counterpart, Cyril Ramaphosa, President Luiz Inacio Lula da Silva is among the few world leaders who have stood up to US President Donald Trump with dignity and a measure of success.

Brazil has succeeded in reversing some of Trump's most punitive measures, despite lacking the bargaining power of countries like China. The 40% tariff he imposed on Brazilian agricultural exports, for example, was quietly rolled back without any concessions from Brazil. Likewise, the absurd US sanctions against Brazilian Supreme Court Justice Alexandre de Moraes, who presided over the conviction of former President Jair Bolsonaro, were lifted without fanfare.

At a time when many governments around the world are retreating from their climate commitments, Brazil is doubling down on decarbonization. Since returning to office, Lula has accelerated efforts to curb deforestation and announced plans to triple renewable capacity and double energy efficiency by 2030.

Even in what many regard as a less ambitious third term, and despite being constrained by strong opposition in Congress, Lula’s administration has launched several important reforms. Most notably, it has simplified the Brazilian tax system and addressed some of its most regressive features, although much remains to be done to make it genuinely progressive.