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Brazil President to Lead Poverty Crusade.

Sunday, September 19th 2004 - 21:00 UTC
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A grade school dropout and ex-factory worker, President Luiz Inacio Lula da Silva vividly recalls his struggle to survive in Brazil's backwoods and urban squalor. Now, Silva hopes to lead a global crusade to help the worlds needy.

Lula leads a list of 56 heads of state and government who are to attend the conference Action against Hunger and Poverty which starts Monday at the United Nations Brazil has drawn up proposals to raise money for the world's poor, ranging from taxes on arms sales and financial transactions to creating special bonds and raising outlays from the International Monetary Fund The need is dire. Latin American economies shrank 1 percent since 2001, and the number of desperately poor in sub-Saharan African has nearly doubled since 1981, to 314 million.

The United Nations and the World Bank say aid to poor nations must be increased by some $50 billion a year through 2015. But the problems are equally daunting. Few expect immediate results, and Silva admits that just calling the world's attention to the problem will be a victory.

The "Zero Hunger" program to feed the poor was a cornerstone of Silva's domestic policy. But his plans to take the program global depend on where the funding will come from.

President Bush won't be at the meeting. The problems of developing nations will take a back seat in the United States, the world's richest nation, at least until the presidential election in November. Bush is sending Agriculture Secretary Ann Veneman to represent the country at the meeting.

"No president will pay attention to something like this in an election year," said David Fleischer, a political scientist at the University of Brasilia. Even after the election, Washington may be reluctant to raise spending for the poor. "Bush has talked about aid money, but whether he's willing to spend it is another matter," Fleischer said. "The U.S. is in pretty bad fiscal shape."

That puts the spotlight on Europe. Leaders from France, Spain and six other European nations will be present, but many key players won't attend. And Europeans have balked at a key Brazilian proposal: a tax on financial transfers.

Speculative capital flows are believed to total US$13 trillion a year worldwide ? more than 20 times Brazil's gross national product. Another proposal ? taxing the arms trade, which Silva proposed last year ? has become something of an inside joke. "It could be an advertising gimmick: 'Buy our guns and help the poor'," Fleischer said. The tax also would take effect only when all arms producers agree, according to the Brazilian proposal, which could delay enactment indefinitely. Other ideas include fighting tax evasion, helping workers abroad send money home and encouraging donations through credit cards and Internet websites. In the future, a carbon tax my be proposed, but Brazil recognizes that taxation is difficult. "Except for voluntary contributions, all others would require some sort of agreement with governments," the Brazilian draft proposal admitted. So far, Silva has been pushing the project on his own in meetings with world leaders. The subject reportedly came up when he met Japanese Prime Minister Junichiro Koizumi in Brazil this week.

"That's always what Lula says," said Alexandre Barros, head of political consultants Early Warning in Brasilia, the capital. "He's very non-specific, and it's impossible to disagreee. It's like being for blue skies."

Now, Silva must turn promises into action.

"We must recognize that it is time to consider the subject of alternative sources of financing as a top priority," the Brazilian foreign ministry said. "The international community cannot afford a wait-and-see attitude."

French President Jacques Chirac has been one of Silva's biggest supporters and is flying to New York just to attend the Monday meeting. France's U.N. Ambassdor Jean Marc de La Sabliere expressed hope earlier this month that the meeting would unite participants behind "a number of simple principles" without focusing on specific options. He also expressed hope that it would "mobilize international attending and political will" to tackle the critical issue of funding the fight against poverty.

Categories: Mercosur.

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