Brazil's bold industrial turn is a gamble

For many in the developing world, Brazil is a rare beacon of hope in an otherwise bleak global landscape.

- Jayati Ghosh

Along with his South African counterpart, Cyril Ramaphosa, President Luiz Inácio 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 Mr 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 decarbonisation. Since returning to office, Mr 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, Mr Lula’s administration has launched several important reforms.