790-312 11-19

790-312 11-19 - Final exam Wednesday dec 19th, 12-3PM in...

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Final exam – Wednesday dec 19 th , 12-3PM in same ARH room as class ***Reading in Kingstone and Power – introduction, ch 2, 6, 9, 11*** Lula Presidency (2002-today) Background mid 1990s: Transformation of PT Debates within PT over electoral losses - PT lost elections and if they wanted to be serious competitor, they would have to moderate their position - Radical wing accused more moderates of altering principles party was founded on Start of move toward center - Lula and aides started this - Anti-capitalist rhetoric began to cease - Still criticized capitalism Role of local PT office-holder (mayors, governors) - Important element in moving PT more toward center - Persuaded party as a whole to shift its strategy toward appealing to more moderate voters By the time of the 2002 campaign, rhetoric had jettisoned, and they would pursue the social justice framework Background: 2002 Financial Crisis Investor anxiety provoked by high debt and prospect of Lula victory - Argentina financial meltdown of 2001…debt to private banks and creditors - Brazil’s debt not as large as Argentina’s, but by 2001 some slippage occurred and Brazilian government spent more for election year and by 2002 there was hefty debt in spite of Cardoza’s fiscal caution. A lot of speculation about whether Brazil would be able to pay. - Investors were also nervous of Lula victory and his move to the center… would he service the debt? Would he overpopulate economy? Importance of portfolio capital investment - Foreign investors invest through two types o By establishing plants and factories that already exist (foreign direct investment). More stable because it is harder to sell equipment and factory once investor decides to sell o Portfolio investment capital (investment in paper> stocks, bonds, currency) Bonds traded on financial markets and relatively very quickly. Can liquidate fairly quickly compared with FDI^, and therefore
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This note was uploaded on 04/07/2008 for the course POLI 312 taught by Professor Kaufman during the Spring '08 term at Rutgers.

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790-312 11-19 - Final exam Wednesday dec 19th, 12-3PM in...

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