Two Perspectives on the Brazilian Election:

"Fiscal Reform Challenges Raul Velloso, one of Brazil's leading experts in public spending, said there were two approaches to tackling the fiscal problem. The "vultures", who were in a majority, wanted tough, unpopular solutions while the "canaries" said the country only needed to grow at a slow pace. Velloso said Lula's main challenge in his second term would be to change a government structure in which current expenses, such as wages and pensions for public employees, had priority over investments in the infrastructure the country needs, such as railways and power stations. He pointed out that the current government spending - payroll, social programs and interest on loans - was equivalent to 40% of GDP. The tax burden comes to around 38% of GDP and is not enough to cover these costs. This means that there will be few resources available for infrastructure if this massive expending continues."

Quoted from "Economics and Politics in Brazil - a Tangled Web" December 7, 2006. By John Fitzpatrick.