MercoPress. South Atlantic News Agency

Lula confirms conservative economic policy

Brazilian president Luiz Inacio Lula da Silva appealed to the business community not to expect “magic plans” to help reactivate the stagnant Brazilian economy which in 2003 contracted 0,2% for the first time in eleven years.

"I'm convinced there are no magic plans or miracles, but rather with perseverance, calmness and obstinate dedication, we'll surely manage a better performance of the country's economy and long term sustainable development", said Mr. Lula da Silva who was addressing an audience of businessmen and high government officials during a forum in the country's National Institute of High Studies.

Mr. Lula da Silva emphasized that the objective of his economic policy was to achieve a historic cycle of stability and economic growth, in which "social inclusion is both the engine and the ultimate result" and added that "my economic policies are not for one mandate but long term".

But this does "not come out of the blue", they are a long, continuous extenuating process.

"That is why our government has been pushing for a new course, more coherent and more responsible; we're not after easy and inconsistent victories, short lived applause but an effective and permanent solution of the great national problems and challenges".

Mr. Lula da Silva also pointed out that in the first quarter of 2004, a total of 347,000 new jobs had been created by the economy, "the best result since 1992", which clearly indicates Brazil is back on "the growth track", complemented by other significant information such as expansion of retail sales and industrial production.

Mr. Lula da Silva's announcement coincided with the latest release from the Brazilian Geography and Statistics Institute indicating that during March industrial production in the country's main fourteen states has expanded 5,8% compared to a year ago.

President Lula da Silva's administration has been under growing, and public, criticism from its own party and coalition allies who want a more aggressive expansive economic policy leaving aside the conservative orthodoxy that has virtually frozen domestic demand