Brazil needs a massive and complete political system reform - Wells Fargo

According to Eugenio J. Alemán, Senior Economist at Wells Fargo, reforming the economy in Brazil is good, but a more urgent reform to the political system is needed. 

Key Quotes: 

“A president, Dilma Rousseff, successfully impeached and out of office; the current president, Michel Temer, prosecuted with an uncertain future to say the least; an ex-president, and the leading labor party’s (PT) presidential candidate for the 2018 election convicted to almost 10 years in prison but with still several avenues to delay and fight his conviction before the presidential elections take place; a Congress where a large number of its members have been accused or have pending corruption processes. These are all consequences, not the cause of Brazil’s problems.”

“The biggest problem in Brazil is not corruption; it is its highly compartmentalized and localized/fractious framework that makes the political system conducive for corrupt activities to take a hold.”

“What the current President of Brazil is doing today is good: trying to pass economic reforms to allow the economy to grow without the need for another commodity and export boom to help the economic expansion. However, what the country urgently needs more than ever is a massive and complete political system reform, something that nobody wants to talk about today. In the Brazilian case, it is not the “economy, stupid,” it is the “political system, stupid.”