Lula and the bankers

[topp8564 at mail.usyd.edu.au]

Just a little note on the piece Ian forwarded. It mentions that Lula has made 
welfare reform his centrepiece. This overstates what's happened. He has set out 
to reform the retirement schemes, he has signalled the possibility of expanding 
unemployment insurance schemes. There are currently many different retirement 
schemes, some of which pay 'special' rates for such groups as university 
lecturers and senior public servants. These workers - in theory - contribute 
more to their retirment. In practice many people rort the system, specially in 
the bureaucracy. On the other hand workers in the non-special system get very 
bad rates after retirment. There is no question the system needs overhaul, the 
trouble is Lula is moving to amalgamate them by bringing the special system 
down to the level of the general one. As a result, senior university lecturers 
I have spoken to plan to retire before the plan enters in effect.

Lula's plan, known here as 'reforma da previdência', has drawn huge flak. Some 
members of his party have threatened to quit if he continues down this path - 
Heloisa Helena, for instance, an influential northeastern leftwing senator.

The plan has also alienated the university sector, which was one of the PT's 
strongest supporters. 

Thiago

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