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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619 SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202 WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected] A Profile of Brazil’s New Administration On January 1, 2015, Dilma Rousseff was inaugurated as President of Brazil for a second four-year term. Representing the Workers’ Party (Partido dos Trabalhadores - PT), she won with 51.6% of the vote in the closest election since Brazil’s return to democracy in 1985. Despite Rousseff’s victory, her party actually lost seats in the new increasingly fragmented legislature. Because a multi-party coalition is required to govern, her new cabinet also reflects party diversity that will require deft political skills to manage at a time when Brazil faces myriad problems. President Rousseff has 39 ministerial positions to be shared among her allies, but this is no guarantee that she will be able to form a supportive and effective governing base. Nonetheless, the makeup of the new administration is an important indicator of the direction President Rousseff intends to take. The profile that follows provides a summary of the new leaders of the second Rousseff Administration and is intended to be a useful guide in and of itself, as well as a first look at the leaders who may help determine policy direction at a critical juncture in Brazil’s history. The New Cabinet The year begins with considerable uncertainty given that the final lineup of Rousseff’s cabinet was only announced two days before her inauguration on January 1. Rousseff designed her cabinet to achieve as much support as possible in a multi-party congress that represents a highly diverse society. Nonetheless, the new cabinet has already been criticized by important political groups that formally support the President, beginning with her own party, which historically is often split among competing subgroups. The majority in the PT, led by former President Luiz Inácio Lula da Silva, lost positions in Rousseff’s new team. Her “inner cabinet” of five ministers has two members from one of the PT’s dissent factions (Miguell Rossetto and Pepe Vargas) and only one person very close to Lula (Jaques Wagner). The strongmanto emerge in the new government is Aloizio Mercadante, who despite being an important political leader of the PT, has never been part of Lula’s inner circle or previous cabinets. The PT as a whole lost three cabinet positions, falling from 16 to 13. The PMDB (Partido do Movimento Democrático Brasileiro) of Vice President Michel Temer and Rousseff’s most important ally, increased its cabinet posts from 5 to 6, but still lost influence because the positions are among the politically less important ministries. Furthermore, the PMDB subgroup led by Renan Calheiros, Speaker of the Senate, received no nominations for cabinet posts, resulting in some tension among key members of an important political party whose support will be critical for passing legislation in the Senate, particularly given the House has become even more conservative and could block Rousseff’s legislative agenda. Challenges and Policy Responses Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed for its self-referential remarks, restatement of broad campaign goals and lack of substance in addressing Brazil’s major challenges. Roussef f pledged to fight corruption, for example, but took no responsibility for the growing Petrobras scandal or how to address it. Most important, Rousseff’s address provided no specifics as to how she intends to fix the macroeconomic problems facing the nation, not the least of which is a sizeable and politically difficult fiscal adjustment. She referred vaguely to adjustments, while reiterating that they will not affect her social policies. Questions regarding her commitment to a new direction in economic policy are growing in light of possible internal struggles with her chief economic advisors and policy decisions made since the beginning of 2015. For example, Nelson Barbosa, the new Planning Minister, announced that new rules for minimal wage increases would take effect in 2016, but Rousseff countered immediately from vacation in Bahia that this would not be the case and forced him to make a public retraction. In fact, the government subsequently announced that the

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Page 1: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

A Profile of Brazil’s New Administration On January 1, 2015, Dilma Rousseff was inaugurated as President of Brazil for a second four-year term. Representing the Workers’ Party (Partido dos Trabalhadores - PT), she won with 51.6% of the vote in the closest election since Brazil’s return to democracy in 1985. Despite Rousseff’s victory, her party actually lost seats in the new increasingly fragmented legislature. Because a multi-party coalition is required to govern, her new cabinet also reflects party diversity that will require deft political skills to manage at a time when Brazil faces myriad problems. President Rousseff has 39 ministerial positions to be shared among her allies, but this is no guarantee that she will be able to form a supportive and effective governing base. Nonetheless, the makeup of the new administration is an important indicator of the direction President Rousseff intends to take. The profile that follows provides a summary of the new leaders of the second Rousseff Administration and is intended to be a useful guide in and of itself, as well as a first look at the leaders who may help determine policy direction at a critical juncture in Brazil’s history.

The New Cabinet

The year begins with considerable uncertainty given that the final lineup of Rousseff’s cabinet was only announced two days before her inauguration on January 1. Rousseff designed her cabinet to achieve as much support as possible in a multi-party congress that represents a highly diverse society. Nonetheless, the new cabinet has already been criticized by important political groups that formally support the President, beginning with her own party, which historically is often split among competing subgroups. The majority in the PT, led by former President Luiz Inácio Lula da Silva, lost positions in Rousseff’s new team. Her “inner cabinet” of five ministers has two members from one of the PT’s dissent factions (Miguell Rossetto and Pepe Vargas) and only one person very close to Lula (Jaques Wagner). The “strongman” to emerge in the new government is Aloizio Mercadante, who despite being an important political leader of the PT, has never been part of Lula’s inner circle or previous cabinets. The PT as a whole lost three cabinet positions, falling from 16 to 13. The PMDB (Partido do Movimento Democrático Brasileiro) of Vice President Michel Temer and Rousseff’s most important ally, increased its cabinet posts from 5 to 6, but still lost influence because the positions are among the politically less important ministries. Furthermore, the PMDB subgroup led by Renan Calheiros, Speaker of the Senate, received no nominations for cabinet posts, resulting in some tension among key members of an important political party whose support will be critical for passing legislation in the Senate, particularly given the House has become even more conservative and could block Rousseff’s legislative agenda. Challenges and Policy Responses Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed for its self-referential remarks, restatement of broad campaign goals and lack of substance in addressing Brazil’s major challenges. Rousseff pledged to fight corruption, for example, but took no responsibility for the growing Petrobras scandal or how to address it. Most important, Rousseff’s address provided no specifics as to how she intends to fix the macroeconomic problems facing the nation, not the least of which is a sizeable and politically difficult fiscal adjustment. She referred vaguely to adjustments, while reiterating that they will not affect her social policies. Questions regarding her commitment to a new direction in economic policy are growing in light of possible internal struggles with her chief economic advisors and policy decisions made since the beginning of 2015. For example, Nelson Barbosa, the new Planning Minister, announced that new rules for minimal wage increases would take effect in 2016, but Rousseff countered immediately from vacation in Bahia that this would not be the case and forced him to make a public retraction. In fact, the government subsequently announced that the

Page 2: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

minimum salary would rise by 8.8%, 2.4 percentage points above the inflation rate. This calls into question not only her commitment to a new fiscally sensitive policy direction, but her willingness to give her economic team the autonomy to act. Nonetheless, Rousseff has made some changes in social welfare programs proposed by the new economic team, including reducing unemployment compensation and generous survivor benefits under the pension system, that were rebuffed by unions and other core constituencies of the PT. This may be a sign that Rousseff is aware of the need to take some unpopular measures if she wishes to address the economic malaise afflicting Brazil, but so far, most indicators point to a reluctance to embrace major policy change. The Petrobras “kickback” scheme is by far the largest and most serious scandal in the country's history. It shows every sign of becoming a major political liability for President Rousseff, but also opens the door for Brazil to change how business is done, in which case it has the potential to become an opportunity for the President. The scandal raises many questions about business-government relations at all levels of government, the depth and breadth of involvement beyond the construction and oil industries, and the wisdom of maintaining state-owned businesses that are now criticized for being corrupt as well as inefficient. US-Brazil Bilateral Relations Finally, the inaugural address reinforced statements President Rousseff already made on improving the bilateral relationship with the United States. The presence of Vice President Biden at President Rousseff`s inauguration was one of several signs that the relationship may be ready to move ahead after being stalled for 18 months over the National Security Agency (NSA) eavesdropping incident. Brazil is no longer insisting on a formal apology from the United States and given that the Petrobras scandal now involves inquiries from US agencies, there may be need for a closer cooperative scrutiny by both governments. There is even talk of rescheduling President Rousseff’’s postponed state visit for sometime in 2015. The United States’ recently changed policy toward Cuba has also made it easier for President Rousseff to reach out to her northern neighbor. A final important development in the new cabinet is the appointment of Mauro Vieira, the current Ambassador to the United States, to the position of Minister of Foreign Relations, perhaps a nod to the anticipated growing importance of US relations in the second Rousseff Administration. Outlook Despite this mixed picture of President Rousseff’s new administration, the most recent public opinion polls still show her with a relatively high degree of support: 42% rate her government as either good or very good and her overall approval rating is 52%. Although 68% believe she had some degree of responsibility for the corruption scandal at Petrobras, 49% say that her administration has fought corruption more vigorously than any other since the end of the military regime. Rousseff’s continuing popularity may be explained in part by the fact that with high employment levels and indexed wages, Brazil’s economic problems have not yet, or are just beginning, to affect the working class. With near zero economic growth and rising inflation, however, it is only a matter of time before most of the country will begin feeling the effects of Brazil’s weak economy, which could touch off more political problems for the government. The economic “adjustment”, even if soundly conceived and cautiously implemented, is unlikely to have a noticeable effect until late in the year or perhaps 2016. The second half of 2015, therefore, will be a critical period for assessing the effectiveness of the second Rousseff Administration in meeting the challenges facing Brazil.

Page 3: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

President of the Federative Republic of Brazil Dilma Vana Rousseff

» Born: 12/14/1947 – 67 years

» Base State: Rio Grande do Sul

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Minister of Mines and Energy (2003-2005), President’s Chief of Staff (2005-2010). First woman President of Brazil; elected in 2010 and reelected in 2014

» Picked by Lula to be his successor, she was not a member of PT until 2001 and had never run for public office until 2010; enjoyed large popularity as President until June 2013, when mass protests against the poor quality of public services erupted; was reelected in the closest presidential race since 1985

» Her second term may be her chance to affirm herself as a political leader in her own right, instead of Lula’s protégé, but several grave economic and political problems may make her task extremely difficult

Vice President of the Federative Republic of Brazil Michel Temer

» Born: 09/23/1940 – 73 years

» Base State: São Paulo

» Political party affiliation: Partido do Movimento Democrático Brasileiro – PMDB

» Most recent public offices: Representative, for six terms (1987-2010), elected Vice President of Brazil in 2010 and reelected in 2014

» One of the most experienced congressmen in Brazil, he was able to unify his large and highly fractured PMDB party for the 2010 presidential election to become Rousseff’s Vice President

» The extremely volatile political environment of 2015 will require all of his abilities to secure support for Rousseff’s administration; he has support in the opposition and may be instrumental in arranging political agreements

Page 4: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Executive Branch (Ministries) Presidency’s Chief of Staff Aloizio Mercadante

» Born: 05/13/1954 – 60 years

» Base State: São Paulo

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Representative (1991-1994/1999-2003), Senator (2003-2010); Minister of Science and Technology (2011-2012), Minister of Education (2012-2014)

» One of the founders of the PT, he was Lula’s running mate in the 1998 presidential election, which they lost; despite his close relationship with Lula, he was never appointed to a cabinet position and is considered a somewhat divisive leader within the PT

» Very close to Rousseff since the 2010 presidential election, he is widely considered as the “strongman” of the new administration and his name is already being mentioned as a potential presidential candidate for 2018

Presidency’s General Secretary Miguel Rossetto

» Born: 05/04/1960 – 54 years

» Base State: Rio Grande do Sul

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Vice Governor of Rio Grande do Sul (1999-2003), Minister of Agrarian Development (2003-2006/2014)

» One of the two members of PT’s Socialist Democracy faction included in Rousseff’s “kitchen cabinet,” his career has always been linked to the unions and agrarian reform movements

» His job will be to promote dialogue between the government and social movements, something that became crucial since the June 2013 demonstrations; his discourse and experience associated more to the left than PT’s mainstream could hinder or ease his support with such movements

Page 5: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Secretary of Institutional Relations Pepe Vargas

» Born: 10/29/1958 – 56 years

» Base State: Rio Grande do Sul

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Mayor of Caxias do Sul for two terms (1997-2005); Representative for three terms (2007-2019); Minister of Agrarian Development (2012-2014)

» As with Rossetto, he is from Rio Grande do Sul, the state where Rousseff made her political career, and a member of the PT “Socialist Democracy” faction; despite his three terms as a congressman, he has never been considered for leadership positions in the House

» He will have the task of promoting dialogue between the government and other political institutions including the Congress, its opposition faction, governors and mayors

Secretary for Social Communications of the Presidency Thomas Traumann

» Born: 07/29/1967 – 47 years

» Base State: São Paulo

» Political party affiliation: not affiliated

» He worked for some of the largest media outlets in the country as a political correspondent and sometimes as a director before joining the Rousseff administration

» His job is to oversee and coordinate the communication policies of the federal government and public companies. He is also responsible for the release of funds and the management of advertising contracts signed by the federal government

Secretary of the Office of Cabinet Affairs Beto Vasconcelos

» Born: 02/23/1977 – 37 years

» Base State: São Paulo

» Political party affiliation: not affiliated

» Deputy Secretary of the Department of Entrepreneurial Technology of the Ministry of Science and Technology (2004), Deputy Chief for Legal Affairs of the Presidency of the Republic (2006-2007), Undersecretary of Legal Affairs (2007-2010)

» He has been one of the closest aides of Rousseff since her time as Lula’s chief of staff, when he was able to develop a solid image as a reliable and efficient bureaucrat; he has gained the respect of several sectors, including the business community

» It is possible that his duties will increase in importance in the coming four years

Page 6: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Special Advisor to the President Marco Aurélio Garcia

» Born: 07/22/1941 – 73 years

» Base State: Rio Grande do Sul

» Political party affiliation: Partido dos Trabalhadores – PT

» PT’s president (2005-2010), coordinator for former president Lula’s reelection campaign (2006), Special Advisor, acting mainly in International Affairs, for both of former president Lula’s two terms (2003-2010)

» He is one of the very few survivors from the first Lula administration still in power. In Lula’s eight years, he had responsibility for overseeing Brazil’s relationships with other Latin American countries, while Foreign Affairs Minister Celso Amorim dealt with all other external issues. In Rousseff’s first term, he lost power and influence along with other persons dealing with foreign affairs. It is not known yet what he will be able to accomplish in the coming four years

Special Advisor to the President Giles Azevedo

» Born: 04/12/1962 – 52 years

» Base State: Distrito Federal

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Secretary of Geology, Mining and Mineral Processing in the Ministry of Mines and Energy (2003-2005); Presidency’s Chief of Staff (2005-2010); Secretary of the Office of Cabinet Affairs (2011-2014)

» He is one of the advisors with the most access to Rousseff and has her total trust. He assists with all issues and continues to be influential in her second term

Page 7: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Economic Ministries Minister of Finance Joaquim Levy

» Born: 02/17/1961 – 53 years

» Base State: Rio de Janeiro

» Political party affiliation: not affiliated

» Most recent public offices: Secretary for the National Treasury (2003-2006), Rio de Janeiro State Finance Secretary (2007-2010)

» He was the director of one of Brazil’s largest private asset management banks, but also has a very good reputation as a public accounts manager due to his successful terms as Secretary for the National Treasury and Finance Secretary for the State of Rio de Janeiro

» His extremely complex task will be to provide fiscal guidance and assurance for the government and reorganize public spending. Whether he will enjoy enough autonomy and confidence from Rousseff is the most important question

Secretary for the National Treasury Marcelo Barbosa Saintive

» Base State: Rio de Janeiro

» Political party affiliation: not affiliated

» He worked with Levy at the Finance Secretary of the State of Rio de Janeiro and is considered very loyal to the new Minister, he maintains a low political profile

» He is expected to execute faithfully Levy’s guidance rather than formulate policies on his own

Secretary of the Federal Revenue Office Jorge Rachid

» Born: 01/19/1961 – 53 years

» Base State: Rio de Janeiro

» Political party affiliation: not affiliated

» He had the same job under Minister Antonio Palocci in the first Lula administration and developed a reputation for efficiency in increasing government revenue. He made his entire career in the Brazilian Revenue Service and had his first important role during the Cardoso government

» He is expected to repeat his excellent performance of the past

Page 8: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Planning, Budget and Administration Nelson Barbosa

» Born: 11/17/1969 – 45 years

» Base State: Rio de Janeiro

» Political party affiliation: not affiliated

» Chief Economic Advisor for the Ministry of Planning, Budget and Administration (2003); Advisor to the President of the Brazilian Development Bank (2005-2006); Deputy Secretary for Macroeconomics of the Ministry of the Finance (2006-2007); Economic Monitoring Secretary of the Ministry of the Finance (2007-2008); Economic Policy Secretary of the Ministry of the Finance (2008-2010)

» Although not affiliated with the PT, he enjoys the trust of several of the party’s leaders, including Lula, for his previous work in the Finance Ministry, despite his disagreements with former Minister Guido Mantega

» His appointment seemed to signal both change in the economic policy, as well as a counter balance to Levy’s more liberal economic approach. However, he was the target of Rousseff’s first public reprimand of her new economic team regarding proposed changes to minimal wage policies

President of the Central Bank Alexandre Tombini

» Born: 12/09/1963 – 51 years

» Base State: Distrito Federal

» Political party affiliation: not affiliated

» He has been working at the Central Bank since 1995 when he joined as a technical analyst

» His technical profile is suited to the domestic market, but his lack of political experience places limitations on his relationship with the President, he was reappointed to the office and is expected to faithfully follow the Finance Minister’s guidelines

Minister of Development, Industry and Foreign Trade Armando Monteiro

» Born: 02/24/1952 – 62 years

» Base State: Pernambuco

» Political party affiliation: Partido Trabalhista Brasileiro – PTB

» He comes from a traditional political and industrialist family and was President of the National Industry Confederation. His political experience has been in industry, taxation and small business

» His appointment is intended to tighten ties with industry and reinforce his party’s (PTB) support to the government; however it has displeased the core constituency of Rousseff’s own party

Page 9: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Agriculture, Livestock and Food Supply Kátia Abreu

» Born: 02/02/1962 – 52 years

» Base State: Tocantins

» Political party affiliation: Partido do Movimento Democrático Brasileiro – PMDB

» Most recent public offices: Representative for Tocantins (2003-2007), Senator (2007-2014)

» Former President of the National Agriculture Confederation, she has been a very controversial political figure. She has advocated controversial policies on restructuring rural credit and seed policies related to large biotech corporations

» Her appointment intends to rebuild the relationship between Rousseff and agribusiness; the opposition won soundly in all agribusiness areas in 2014; however environmental groups, human rights defenders and most of the PT reacted negatively to her appointment

Minister of Science and Technology Aldo Rebelo

» Born: 02/23/1956 - 58 years

» Base State: São Paulo

» Political party affiliation: Partido Comunista do Brasil – PCdoB

» Most recent public offices: Representative, for five terms (1990- 2011), Secretary for Institutional Relations (2004-2005), Minister of Sports (2011-2014)

» As PCdoB leader, he has served all PT led administrations loyally over the last 12 years in several positions

» His appointment to this ministry has been viewed as an accommodation to both him and his party; it was very badly received by the academic and scientific communities due to his former strong positions against measures to alleviate global warming and his often extreme discourse attacking environmentalists as agents of imperialism

Secretary of Small and Micro-Business Guilherme Afif Domingos

» Born: 09/18/1943 – 71 years

» Base State: São Paulo

» Political party affiliation: Democratas – DEM (1991 to 2011) and Partido Social Democrático – PSD (since 2011)

» Most recent public offices: Secretary of Development of São Paulo State (2011), Secretary of Small and Micro-Business (since 2013), and also Vice Governor of São Paulo State (2011 to 2015)

» Although he was Vice Governor of São Paulo, an opposition stronghold led by one of the most important opposition leaders, he joined Rousseff’s government in 2013 and retains his federal job

» His appointment is another attempt to pave the way for dialogue between Rousseff and the business community

Page 10: A Profile of Brazil’s New Administration · Two problems dominate the President’s agenda, the failing economy and the Petrobras scandal. The inaugural address left many disappointed

BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

President of the Brazilian Development Bank Luciano Coutinho

» Born: 09/29/1946 – 68 years

» Base State: São Paulo

» Political party affiliation: not affiliated

» Most recent public offices: Executive Secretary on the Ministry of Science and Technology (1985-1988), professor at Unicamp (1988-current); consultant in antitrust, international trade and economics at LCA Consultore (1995-2007)

» Will likely to be replaced soon by Paulo Cafarelli, who was Executive Secretary of the Finance Ministry under Guido Mantega and who has good rapport with the business community

President of the Bank of Brazil Aldemir Bendine

» Born: 12/10/1963 – 51 years

» Base State: Distrito Federal

» Political party affiliation: not affiliated

» Most recent public offices: he has been working at the Bank of Brazil on the technical side since he joined the institution and has held numerous positions with increasing responsibity, such as director of retail and new business, and eventually promoted to vice president

» Will likely to be replaced soon probably by Alexandre Abreu, who is currently vice president for retail operations at the Bank.

President of Caixa Econômica Federal Jorge Hereda

» Born: 09/27/1956 – 58 years

» Base State: São Paulo

» Political party affiliation: not affiliated

» Most recent public offices: held many secretary positions in the State of São Paulo, mainly in urban issues: Secretary of Housing in Diadema, Secretary of Sustainable Development in Ribeirão Pires and Secretary of Urban Affairs in São Paulo. He was also President of the Metropolitan Housing Company of São Paulo

» Will likely to be replaced soon by Mirian Belchior, who is former Planning Minister and has the full confidence of President Rousseff

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Institutional Ministries Minister of Justice José Eduardo Cardozo

» Born: 04/18/1959 – 55 years

» Base State: São Paulo

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Public Attorney of São Paulo municipality (1989 -1992), São Paulo councilman (1997 – 2001), Representative, for two terms (2003-2011), Minister of Justice (since 2011)

» One of the younger generation of PT leaders, he tried to dissociate himself from the ethics deviations of the party since the Mensalão affair; he has good rapport with some sectors of the opposition

» He will face several challenges in the volatile political environment, including the prospects of new street demonstrations and the ongoing federal investigation into Petrobras and large construction firms

Minister of Foreign Affairs Mauro Vieira

» Born: 02/15/1951 – 63 years

» Base State: Distrito Federal

» Political party affiliation: not affiliated

» Most recent public offices: Vieira has been a diplomat since 1973; he was ambassador to Argentina (2004-2010), and Ambassador in the US (2010-2014)

» He is known for being pragmatic and efficient, while maintaining a discreet, low profile and having no political ambitions; under PT administrations he was appointed to the two most important ambassadorial posts

» His appointment as Minister of Foreign Affairs may be read as a signal of Rousseff’s intention to strengthen the relationship between Brasilia and Washington, which has been strained in recent years, particularly since the NSA spying episode

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Defense Jaques Wagner

» Born: 03/16/1951 – 63 years

» Base State: Bahia

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Representative, for three terms (1990-1998); Minister of Labor and Employment (2003-2004), Secretary for Institutional Relations (2005-2006), Bahia governor, for two terms (2007-2014)

» One of the most important PT national leaders, he enjoys intimacy and trust from both Lula and Rousseff and he has a good rapport with several sectors of society; he is known for his negotiating skill in reaching difficult agreements

» Although his new job physically locates him outside of the Planalto Palace, Rousseff will continue to keep him as a close adviser and he will serve as a liaison to Lula; in the Ministry of Defense, a main mission will be to manage the military’s expectations and reactions to the National Truth Commission study

Minister and Chief of Staff of Institutional Security José Elito

» Born: 11/26/1946 – 68 years

» Base State: Distrito Federal

» Political party affiliation: not affiliated

» Most recent public offices: a General Officer who has held his current position since 2011; he is career military has been in the Army since 1969

» Despite his public disagreements with Rousseff over the National Truth Commission study, he has been one of the trusted advisors to the government within the military

» His appointment is part of a strategy of maintaining good relations with the military; he may also have an important role to play in the case of new public demonstrations like those in June 2013

Attorney General Luís Inácio Adams

» Born: 03/02/1965 – 49 years

» Base State: Distrito Federal

» Political party affiliation: not affiliated

» Most recent public offices: Prosecutor of the National Treasury Department (since 1993), Secretary-General of Litigation for the Attorney General's Office (2001-2005), General Attorney for the National Treasure (2006-2009), Attorney General (since 2009)

» His continued service in this office is an indication of President Rousseff’s commitment to pursue corruption in the federal government and public companies such as Petrobras

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Comptroller General Valdir Simão

» Born: 02/23/1960 – 54 years

» Base State: Distrito Federal

» Political party affiliation: not affiliated

» Most recent public offices: Simão has been IRS tax auditor since 1987, and held many public offices as a technical manager working with multiple ministries

» He is very close to Rousseff, having been her aide for several years; he is considered an able technocrat, who knows well the federal bureaucracy and is respected by his colleagues in the public sector. He is replacing a comptroller who also enjoyed considerable praise from civil society

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Infrastructure Ministries Minister of Communications Ricardo Berzoini

» Born: 02/10/1960 – 54 years

» Base State: São Paulo

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Representative for four terms (1999-2014); Minister of Social Security (2003-2004), Minister of Labor and Employment (2004-2005); Secretary for Institutional Relations (2014)

» Experienced member of PT’s “old guard”, he is very close to Lula and his Ministry is one of the most important in government

» Media regulation is one of the most sensitive issues for Brazilian society; although he has been historically in favor of measures to control media, Rousseff does not seem inclined to support major changes in this area; despite speculation that management of the federal advertisement budget would be included in his portfolio, this did not happen, another indication that his autonomy may be limited

Minister of Mines and Energy Eduardo Braga

» Born: 12/06/1960 – 54 years

» Base State: Amazonas

» Political party affiliation: Partido do Movimento Democrático Brasileiro – PMDB

» Most recent public offices: Mayor of Manaus (1994-1996), Governor of Amazonas for two terms (2003-2010), Senator (2011-2014)

» He built a solid reputation of efficiency and progressiveness as governor of Amazonas; because of that, he became a leader of PMDB with national stature as a Senator; his nomination puts an end to the long hegemony of the Sarney group in the area of energy

» He will have to deal with the very serious problems of the severe drought in the country and the need to increase tariffs that have been artificially contained over the last few years; the energy sector is one of the most troubled in Brazil

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Transport Antonio Carlos Rodrigues

» Born: 05/17/1950 – 64 years

» Base State: São Paulo

» Political party affiliation: Partido da República – PR

» Most recent public offices: Assistant Secretary for the Department of Sports and Tourism of the State of São Paulo (1999); São Paulo councilman (since 2001 for four terms); Senator (2012, as deputy for Marta Suplicy)

» He belongs to one of the most conservative political parties in the country and has had a very limited role in national politics since his career has been as a councilman in São Paulo; he became a Senator in 2012 because Senator Martha Suplicy had been appointed Minister and he was her deputy

» Priorities in his ministry have not been outlined, but poor public services in public transport was a major cause that triggered the June 2013 demonstrations

Secretary of Civil Aviation Eliseu Padilha

» Born: 12/23/1945 – 69 years

» Base State: Rio Grande do Sul

» Political party affiliation: Partido do Movimento Democrático Brasileiro – PMDB

» Most recent public offices: Representative for five terms (1995-2014), Minister of Transport (1997-2011)

» A very experienced member of PMDB who has served as a prominent figure in governments led both by PT and PSDB; most recently, he has supported Rousseff and was a key factor for her electoral success in their state

» His Ministry deals with the remodeling of airports that have been recently privatized, another sensitive issue in Brazil

Secretary of Ports Edinho Araujo

» Born: 06/30/1949 – 65 years

» Base State: São Paulo

» Political party affiliation: Partido do Movimento Democrático Brasileiro – PMDB

» Most recent public offices: Representative (2010-2014)

» Another PMDB leader given a ministerial position in order to solidify the alliance of the party with the government. Ports are another area with several bottlenecks in Brazil, and his challenge will be to solve complex problems with under a budget constraint

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Cities Gilberto Kassab

» Born: 08/12/1960 – 54 years

» Base State: São Paulo

» Political party affiliation: Partido da Frente Liberal – PFL (1995-2007), Democratas – DEM (2007-2011), Partido Social Democrático – PSD (as its founder)

» Most recent public offices: São Paulo State Planning Secretary (1997-1998), Representative (1999-2005), São Paulo Vice Mayor (2005-2006), São Paulo Mayor 2006-2013)

» Launched into national politics by José Serra, one of the most important opposition leaders, he created a new political party in order to support Rousseff.

» However, as several of his colleagues, he will have to face the difficulties of fiscal constraint that will affect budget levelslow budgets

Minister of the Environment Izabella Teixeira

» Born: 10/09/1961 – 53 years

» Base State: Distrito Federal

» Political party affiliation: not affiliated

» Most recent public offices: IBAMA employee since 1985, held many positions at the Institute, mostly managing international cooperation programs

» Teixeira was also Secretary of the Environment of the State of Rio de Janeiro (2007-2008) and Executive Secretary of the Minister of the Environment (2008 - 2010)

» She has indicated that she does not want to keep her job in the new administration and there are already rumors that she could be replaced soon. With such a weak start, it is probable that she will not lead any significant project

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Social Ministries Secretary for Strategic Affairs Marcelo Neri

» Born: 03/27/1964 – 50 years

» Base State: Rio de Janeiro

» Political party affiliation: not affiliated

» A very well known and respected economist, he was criticized during the recent presidential campaign for withholding the release of potentially negative social indicators published by the institute he presided over (IPEA), allegedly to help Rousseff. His reputation was damaged and his challenge will be to enhance the relevance of what has traditionally been a ministry of marginal importance

Minister of Education Cid Gomes

» Born: 04/27/1963 – 51 years

» Base State: Ceará

» Political party affiliation: Partido Socialista Brasileiro – PSB (2003-2013), Partido Republicano da Ordem Social – PROS (2013-current)

» Most recent public offices: Ceará State Representative (1991-1995). Sobral Mayor, for two terms (1997-2004), Ceará governor, for two terms (2007-2014)

» He comes from a high profile and controversial northeast political family that split with Eduardo Campos and left PSB and his appointment seems to have had the intention of attracting his new party to the coalition that will support Rousseff in Congress

» In her inaugural speech, Rousseff said that education would be her second term top priority. However, the Minister she appointed to lead the education portfolio is not close either to her or the PT

Minister of Health Arthur Chioro

» Born: 12/05/1963 – 51 years

» Base State: São Paulo

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: São Bernardo do Campo Health Secretary (2009-2014); Minister of Health (since 2014)

» He is a member of PT and retains the job he took over when his predecessor, Alexandre Padilha, left it to run for the Governor of São Paulo with Lula’s blessings (Padilha was not elected). Although he has not projected himself as an important leader, the Health Ministry is important enough to transform him into a national figure. His challenges are big, since most public opinion polls show that the public dissatisfaction with health services is among the top priorities for Brazilians

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of National Integration Gilberto Occhi

» Born: 07/24/1958 - 56 years

» Base State: Distrito Federal

» Political party affiliation: Partido Progressista – PP

» Most recent public offices: Minister of Cities (2014)

» He was Minister of Cities and has changed jobs as one of the arrangements to accommodate as many political parties as possible in the cabinet. His party is one of the most conservative in the ideological spectrum.

» His new Ministry is ill equipped and its attributions are very specific

Minister of Labor and Employment Manoel Dias

» Born: 08/13/1938 – 76 years

» Base State: Rio Grande do Sul

» Political party affiliation: Partido Democrático Trabalhista – PDT

» One of the founders of PDT, the party to which Rousseff originally belonged to. He keeps his job, which may have important tasks with the possibly growing dissatisfaction of workers with the economic environment and measures that have already been announced that will cut some of their privileges. There is the possibility of higher unemployment and subsequent strikes, and some have already started, particularly in the automobile industry

Minister of Social Security Carlos Gabas

» Born: 02/27/1965 – 49 years

» Base State: Distrito Federal

» Political party affiliation: Partido dos Trabalhadores - PT

» Most recent public offices: Minister of Social Security (2010)

» Gabas joined the federal public service in 1986, in the position of administrative officer of the Social Security Office, and held many positions in the social security area, such as São Paulo INSS State Superintendent, (2003); Ministry of Social Security Executive Secretary, (2005); Minister of Social Security (2010-2011)

» Another leader of the new PT generation, he has solid experience in social security, having already been minister before for shorter periods of time. His challenges, as with other Ministers in the social area, will be to maintain benefits in a government that has to cut expenses

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Culture Juca Ferreira

» Born: 01/31/1949 – 65 years

» Base State: Bahia

» Present political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Minister of Culture (2008-2010)

» One of the most controversial appointments of the new cabinet, he was general-secretary of the Ministry and Minister during both Lula’s administrations. His return was highly criticized by his predecessors Martha Suplicy and Ana de Hollanda, both PT members. However, he is supported by many very popular artists who, according to his critics, are beneficiaries of unneeded incentives

Minister of Sports George Hilton

» Born: 06/11/1971 – 43 years

» Base State: Minas Gerais

» Political party affiliation: Partido Republicano Brasileiro – PRB

» Most recent public offices: State Representative for two terms (1998-2006), Representative for three terms (2006-2018)

» Another highly disputed appointment, the new Minister has publicly acknowledged he does not have much acquaintance with sports. He belongs to the evangelical caucus and his nomination probably intends to attract the support for Rousseff from this group. He has been attacked because the 2016 Olympics are 18 months off, which is little time to acquire the necessary experience and expertise to manage such a large project

Minister of Social Development and Fight Against Hunger Tereza Campello

» Born:03/02/1962 – 52 years

» Base State: São Paulo

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: Minister of Social Development, since 2011

» She keeps her job and will have the task of maintaining one of PT’s most important policy flagships, the Bolsa Familia program, in times of budgetary restrictions. She says she will reduce expenses in her Ministry without diminishing the benefits given to the poor families

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Agrarian Development Patrus Ananias

» Born: 01/26/1952 – 62 years

» Base State: Minas Gerais

» Political party affiliation: Partido dos Trabalhadores – PT (founding member)

» Most recent public offices Minister of Social Development and Fight Against Hunger (2004-2010)

» One of the most important national PT leaders, his nomination has been endorsed by Lula and by many social movements with which he has a close relationship. He seems to be willing to use the Ministry as a political platform and has already engaged in a controversy with his cabinet colleague Katia Abreu

Minister of Fishing and Aquaculture Helder Barbalho

» Born: 05/18/1979 – 35 years

» Base State: Pará

» Political party affiliation: Partido do Movimento Democrático Brasileiro – PMDB

» Most recent public offices: Ananindeua councilman in 2005 for two terms; Pará State Representative in 2003; Ananindeua mayor in 2005, for two terms

» He is the son of a very conservative leader from Pará, famous for the many allegations of corruption against him and was one of the very first influential Brazilian politicians to be arrested and put in jail, back in 1999. His Ministry is considered one example of high level jobs created just to accommodate allies

Secretary for Human Rights Ideli Salvatti

» Born: 03/18/1952 – 62 years

» Base State: Santa Catarina

» Political party affiliation: Partido dos Trabalhadores – PT

» Most recent public offices: State Representative for Santa Catarina (1995-2003, for two terms), Senator (2003-2011), Minister of Fishing and Aquaculture (2011), Minister of Institutional Relations (2011-2014)

» Another Minister who has just taken over her job and is already rumored as possibly leaving it soon in the case that Rousseff will be able to contemplate other politicians that she did not nominate for fear that their names may be involved in the Petrobras scandal. Whoever gets the job will have to deal with serious problems as the very dramatic conditions of prisons in many States and the repercussions of the National Truth Commission final report

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Minister of Tourism Vinícius Nobre Lages

» Born: 12/15/1957 – 57 years

» Base State: Alagoas

» Political party affiliation: Partido do Movimento Democrático Brasileiro – PMDB

» His appointment came probably as a “consolation prize” to the PMDB Senate group, which is very dissatisfied for not having been able to have any of its members in an important Ministry. Although Tourism may be a relevant industry with the 2016 Olympics, the Ministry has been traditionally weak in Brazil

Secretary for Racial Equality Nilma Lino

» Base State: Minas Gerais

» Political party affiliation: Not affiliated

» Most recent public offices: Dean of the Universidade da Integração Internacional da Lusofonia Afro-Brasileira (Unilab)

» She is not affiliated to any political party, has never held elective office, and has been active in the black movement and in academics

» The Secretary for Racial Equality occupies a space of where social discourse takes place; it is an important channel of liaison with organized social movements and traditional populations

Secretary for Women’s Policies Eleonora Menicucci

» Born: 08/21/1944 – 70 years

» Base State: São Paulo

» Political party affiliation: Partido dos Trabalhadores – PT

» She is a friend and a person of trust of Rousseff, having met her in the 1970’s in the fight against the military regime; it is a ministry of limited influence

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Regulatory Agencies

Brazilian regulatory agencies in their current form were basically created in 1996. Originally, they were supposed to follow the American model and be financially, politically and managerially independent. This would allow them to operate objectively in establishing rules and overseeing activities. Since 2003, however, when President Lula started his first term, this concept has changed dramatically and the agencies have become mostly an appendix of the Executive Branch, often used for the purpose of rewarding allies with jobs and influence. In her second term, President Rousseff will appoint 15 directors of the 10 existing agencies, subject to Senate confirmation.

National Telecommunications Agency

(Agência Nacional de Telecomunicações - ANATEL)

The National Telecomunications Agency is linked to the Ministry of Comunications. Anatel’s goal is to promote the development of telecommunications in the country and provide a modern and efficient telecommunications infrastructure, capable of offering diversified services at fair prices throughout the national territory. ANATEL’s board of Directors is made up of four directors and one General Director who each hold 5-year terms.

Directors

João Batista de Rezende (General Director) Terms ends in May 2018 May not be reappointed

Marcelo Bechara Term ends in November 2015 May be reappointed

Rodrigo Zerbone Loureiro Term ends in November 2016 May be reappointed

Igor Vilas Boas de Freitas Terms ends in May 2017 May be reappointed

Jarbas Valente Term ends in May 2014 May be reappointed

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

National Agency for Civil Aviation

(Agência Nacional de Aviação Civil - ANAC) The National Agency for Civil Aviation is responsibility for overseeing the technical and economic issues of civil aviation in Brazil. ANAC’s Board consists of four directors and one Director General who have five-year terms.

Directors

Marcelo Pacheco dos Guaranys (General Director) Term ends in March 2016 May not be reappointed

Ricardo Sérgio Maia Bezerra Term ends in June 2015 May be reappointed

Cláudio Simão Passos Term ends in March 2016 May not be reappointed

2 vacant seats – Positions previously held by Rubens Carlos Vieira and Carlos Eduardo Magalhães da Silveira Pellegrino

National Agency of Land Transportation

(Agência Nacional de Transportes Terrestres – ANTT) The National Agency of Land Transportation is responsible for regulating railways, federal roads and inland transportation services. ANTT’s board consists of four directors and one General Director who serve five-year terms. There are currently three directors serving on an interim basis and one vacancy on the Board.

Directors

Jorge Luiz Macedo Bastos (General Director) Term ends in February 2018 May be reappointed

Carlos Fernando do Nascimento (Interim) Nominated in March 2012

Ana Patrizia Gonçalves Lira (Interim) Nominated in March 2012

Natália Marcassa (Interim) Nominated in March 2012

1 vacant seat

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

National Waterway Transportation Agency

(Agência Nacional de Transportes Aquaviários – ANTAQ) The National Waterway Transportation Agency is linked to the Department of Ports. The agency is responsible for the regulation, tariff control, study and development of water transportation in Brazil. ANTAQ’s board consists of two directors and one Director General. The members are appointed to four-year terms by the President and are subject to Senate confirmation.

Directors

Mário Povia (General Director) Term ends in February 2016 May be reappointed

Fernando José de Pádua Costa Fonseca Term ends in February 2017 May be reappointed

Adalberto Tokarski Term ends in February 2018 May be reappointed

National Petroleum, Natural Gas and Biofuel Agency

(Agência Nacional de Petróleo, Gás e Biocombustíveis – ANP)

The federal government agency linked to the Ministry of Mines and Energy responsible for the regulation of the oil sector. ANP’s board consists of four directors and one General Director.

Directors

Magda Maria de Regina Chambriard (General Director ) Term ends in June 2016 May not be reappointed

Helder Queiroz Term ends in June 2015 May be reappointed

José Gutman Term ends in May 2017 May be reappointed

Waldyr Martins Barroso Term ends in January 2017 May be reappointed

Florival Rodrigues Term ends in June 2015 May be reappointed

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

National Supplementary Health Agency

(Agência Nacional de Saúde Suplementar - ANS) The National Supplementary Health Agency is linked to the Ministry of Health, which regulates the private health insurance market. The agency was established in January 2000 and is responsible for promoting the public interest in private health insurance, regulating sectorial operators, the relationship between providers and consumers and the development of health activities in the country. It is based in the city of Rio de Janeiro. Its structure consists of up to five directors, who serve for fixed three-year terms with the possibility of reappointment. The Director General is chosen from among the directors.

Directors

André Longo Araújo de Melo (General Director) Term ends in January 2015 May be reappointed

José Carlos de Souza Abrahão Term ends in December 2017 May be reappointed

Leandro Reis Tavares Term ends in June 2013 May be reappointed

Martha Regina de Oliveira Term ends in August 2017 May be reappointed

Simone Sanches Freire Term ends in May 2017 May be reappointed

National Health Surveillance Agency

(Agência Nacional de Vigilância Sanitária - Anvisa) The National Health Surveillance Agency is linked to the Ministry of Health. The Agency is responsible for the sanitary control of all products and services (domestic or imported) that are subjected to sanitary surveillance, such as medicines, foods, cosmetics, disinfectants, tobacco products, medical products and health services. In addition, along with the Ministry of Foreign Affairs, the agency controls ports, airports and borders in matters related to health surveillance. ANVISA’s structure consists of up to five directors, for fixed three-year terms. The Director General is chosen from among the directors. Directors

Jaime César de Moura Oliveira (General Director Interim) Term ends in December 2017 May not be reappointed

Ivo Bucaresky Term ends in July 2016 May be reappointed

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Renato Alecancar Porto Term ends in July 2016 May be reappointed

José Carlos Magalhães Term ends in November 2017 May be reappointed

1 vacant seat - previously occupied by Dirceu Barbano Term ended in November 2014

National Water Agency (Agência Nacional de Águas - ANA)

The National Water Agency is linked to the Ministry of Environment and is responsible for the implementation and management of Brazilian water resources. It regulates the use of the waters of rivers and lakes that belong to the federal government and implements the National Water Resources Management. ANA consists of five directors with fixed terms of four years. The General Director is chosen among the directors.

Directors

Vicente Andreu Guillo (General Director) Term ends in January 2018 May not be reappointed

Paulo Lopes Varella Neto Term ends in May 2017 May not be reappointed

João Gilberto Lotufo Conejo Term ends in January 2018 May not be reappointed

Gisela Damm Forattini Term ends in January 2018 May be reappointed

1 vacant seat - previously occupied by Paulo Rodrigues Vieira Term ended in December 2012

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

National Film Agency

(Agência Nacional de Cinema - Ancine) The National Film Agency is an official government body, established as a regulatory agency, based in Brasilia with a central office in the city of Rio de Janeiro. The Agency promotes, regulates and supervises the film industry. Ancine consists of 3 directors and one General Director with a fixed term of four years.

Directors

Manoel Rangel (General Director) Term ends in May 2017 May not be reappointed

Vera Zaverucha Term ends in June 2015 May be reappointed

Rosana Alcântara Term ends in February 2017 May be reappointed

Roberto Gonçalves de Lima Term ends in January 2018 May be reappointed

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

New Administration’s Coalition The fragmentation of the Brazilian Congress among dozens of political parties (currently 28) would make governing a very difficult task for any president. The problem is aggravated by infighting among groups within the larger parties, such as PMDB and PT. Therefore, the nominal party affiliation of members of Congress and the formal support of parties for the government are often poor predictors of how votes will be cast in the legislature. Sometimes caucuses representing particular groups, such as rural or evangelical interests, are better predictors of voting behavior, but not always. In any case, it is clear that the new congress will be more conservative and potentially more hostile to Rousseff, especially if the President loses popularity from the expected fallout related to economic and social problems that may continue through 2015 and possibly into 2016. The new Congress will convene on February 1, 2015. Because of appointments of several Deputies to executive offices in federal and state administrations, the division of the House by parties will differ from the result of the 2014 elections. The most recent projections show that the PMDB will become the largest party in the House, with 67 seats, followed by the PT, with 65 seats and the PSDB with 53.

House of Representatives

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Senate

The legislature will see a number of delays before it can get down to business. Many Representatives and Senators will leave their legislative functions to take other positions, such as Ministries and Secretariats, opening space for their alternates. The election of the President of the House will be subjected to a drawn out competition and even though the Congress will take office at the start of February, the Carnival recess will delay action until March on many important decisions, including committee assignments.

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BRASÍLIA SAF Sul Quadra 02, Lote 04. Edifício Via Esplanada Salas 103 a 106 CEP 70070-600 Fone: (61) 3327-2606 Fax: (61) 3327-1619

SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Superior Courts Brazilian Superior Courts have been very active in the last couple of years, in effect, filling the institutional voids left by the Executive and particularly Legislative branches of government, although for different reasons. This practice is commonly called “judicialization of politics,” increasing the Judiciary’s influence in society. Former Supreme Court Chief Joaquim Barbosa, for example, achieved near “pop star” status for his decisions in 2013 and 2014. This increased affinity with society is likely to continue in the coming years. Certain issues will be particularly important for the Courts: fiscal matters, labor relations and governance (especially combating graft).

Federal Supreme Court (STF) The STF is the highest body of the judicial branch and comprises eleven ministers. President Rousseff’s re-election will allow her to appoint six ministers to the Supreme Court by 2018.

Of the current 10 ministers, four were appointed by President Rousseff and three by former President Luiz Inacio Lula da Silva. By the end of 2018, a total of 10 ministers will have been appointed by presidents of the Workers Party. Of those named in previous administrations, only Gilmar Mendes, who was appointed by Fernando Henrique Cardoso (PSDB), will remain.

Since the retirement of former Chief Minister Joaquim Barbosa last July, there is a vacant chair that must be filed with a nomination made by President Rousseff. In addition, five other ministers will retire in the next four years, when they reach the manditory age of 70.

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

STF Ministers

José Celso de Mello Filho Mandatory retirement: November 2015

Marco Aurélio Mello Mandatory retirement: July 2016

Ricardo Lewandowski Mandatory retirement: May 2018

Teori Albino Zavascki Mandatory retirement: August 2018

Rosa Maria Weber Mandatory retirement: October 2018

Luiz Fux Mandatory retirement: April 2023

Cármen Lúcia Mandatory retirement: April 2023

José Antonio Dias Toffoli Mandatory retirement: November 2037

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Gilmar Mendes Mandatory retirement: November 2025

Luís Roberto Barroso Mandatory retirement: March 2028

Vacant – Previously occupied by Joaquim Barbosa who retired in July.

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SÃO PAULO Rua Olimpíadas, 134, 5º andar, Cj 52. Condomínio Alpha Tower Vila Olímpia CEP 04551-000 Fone: (11) 3079-4533 Fax: (11) 3079-2202

WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Superior Court of Justice (STJ) The STJ is the last appeal for hearing cases not related directly to the Federal Constitution.

The Court comprises 33 ministers chosen among Brazilians between the ages of 35 and 65, appointed by the President from previously established three partite list presented by the STJ, after majority approval by the Senate.

President Rousseff will appoint three new members to fill the seats of ministers who will mandatorily retire at the age of 70 by the end of 2018.

Ministers who must retire in the next four years are Napoleon Nunes Maia Filho (December 2015), Felix Fischer (August 2017), Assusete Magalhães (January 2018) and Laurita Vaz (October 2018).

When the new appointments are made by 2018, the Court will be composed of 20 ministers chosen by Rousseff, almost 60% of the Court’s seats. In total, 72% of its members were appointed by the PT.

Superior Labor Court (TST)

The TST standardizes decisions on labor by consolidating case laws (repeated judgments on the same topic).

There are 27 ministers in the TST, chosen in the same way as the STJ.

Ministers that must retire in the next four years are Renato Paiva (September 2017), Emmanoel Pereira (October 2017) and Fernando Ono (November 2018).

When the new appointments are made by 2018, the Court will be composed of 8 ministers chosen by Rousseff, 14 ministers chosen by former president Lula and 5 ministers chosen by former president Fernando Henrique Cardoso.

Supreme Electoral Court (TSE)

TSE is the highest judicial body for analyzing electoral cases. TSE, among other duties established in the Brazilian Electoral Code, hears appeals from regional electoral courts (TRE), including on administrative matters.

Unlike the other Courts, the TSE comprises seven members with two-year terms each. Three ministers are chosen from the STF, two from the Superior Court and two are attorneys.

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WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

General Public Prosecutor

The General Public Prosecutor in Brazil is an autonomous office, in effect constituting a fourth branch of government. Established by the Constitution, it has financial, managerial and functional independence from the Executive, Legislative and Judiciary branches of government. Its mission is to defend society and the public patrimony against potential abuses and omissions by public authorities and to ensure that all laws are properly upheld. Priority issues have been combating corruption, guaranteeing consumers’ rights and ensuring the due rendering of public services.

Currently, the General Prosecutor is Rodrigo Janot.

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WASHINGTON, DC 1101 17th St. NW Suite 1010 Phone: (202) 822-6420 Fax: (202) 822-6423 www.patri.com.br [email protected]

Gubernatorial Elections

The division of states in Brazil according to the governing political party may be as poor an indicator of a governor’s political behavior as party affiliation is of members of Congress. First, states depend much on the federal government to be able to survive financially and therefore, often an opposition governor has to strike deals with the federal government. Second, internal fights within parties can lead to governors turning against the president even if they are members of the same party. Nonetheless, the map of Brazil divided by nominal opposition and nominal support for President Rousseff shows a more divided country than seen in the last three presidential elections, which may be another indication of a more challenging governing environment for the the PT.

Governors' support for the President

Nine political parties