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'I Have Changed'.(Luiz Inacio (Lula) da Silva)(Interview)

Newsweek International

| November 11, 2002 | Weymouth, Lally | COPYRIGHT 2002 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

This week Luiz Inacio (Lula) da Silva, 57, was elected president of Brazil. Lula, who was born into extreme poverty and never got past elementary school, had lost three previous elections. This time he downplayed his left-wing credentials, moved to the center and promised to maintain the fiscal discipline of outgoing President Fernando Henrique Cardoso. Is da Silva's move to the center sincere or just a tactic? Can he handle the high expectations he has aroused, considering the tight economic situation afflicting Brazil today? Last week, NEWSWEEK's Lally Weymouth sat down with da Silva for an exclusive interview. Excerpts:

WEYMOUTH: What are your plans as president?

DA SILVA: During our campaign we made a commitment. Although Brazil is a country with extraordinary potential, 50 million people live below the poverty line. Brazil is not a poor country, but a country with social inequities, and this is a major issue. The wealth has been concentrated in the hands of a few. So we have made a commitment to reach out to the poorest [sectors].

There are high expectations on the part of the electorate and you've promised to create jobs. How can you do that given Brazil's dire economic situation?

Not much public money is required. Only [increased] production will give Brazil the conditions needed to reduce interest rates and generate the jobs that we need.

There are two ways to generate growth: the free market or the socialist model that relies on the state. Which course do you plan to follow?

I don't think that the state has to manage companies. I remember what President [Franklin] Roosevelt did with the Tennessee Valley Authority. The role of the state is to plan, stimulate development with incentives and, if necessary, provide funding in partnership with the private sector.

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