| Brazil has a diversity of regional political cultures. | | | | to switch parties, changing the balance of power |
| Politics in the states of the Northeast (Nordeste) | | | | in Congress. The PT won five of twenty-seven |
| and North (Norte) are much more dependent on | | | | governorships, but the opposition PSDB remains in |
| political benevolence from BrasÃlia than are the | | | | control of the critical states of Sao Paulo and |
| states of the South (Sul) and Southeast | | | | Minas Gerais. The PMDB, as in the legislative |
| (Sudeste). | | | | elections, won the most governorships of any one |
| Brazil is a federal republic with 26 states and a | | | | party, controlling seven states. Because of the |
| federal district. The 1988 constitution grants broad | | | | mandatory revenue allocation to states and |
| powers to the federal government, made up of | | | | municipalities provided for in the 1988 constitution, |
| executive, legislative, and judicial branches. The | | | | Brazilian governors and mayors have exercised |
| president holds office for 4 years, with the right | | | | considerable power since 1989. |
| to re-election for an additional 4-year term, and | | | | Since 2003, President Lula's administration has |
| appoints his own cabinet. | | | | steadied exchange rates and aided social stability |
| Fifteen political parties are represented in | | | | and today Brazil ranks as the thirteenth largest |
| Congress. Since it is common for politicians to | | | | economy on the planet. And Brazil property can |
| switch parties, the proportion of congressional | | | | be purchased on a freehold basis and property |
| seats held by particular parties changes regularly. | | | | rights and title are secure while taxes remain low. |
| The major political parties are: | | | | Brazil's economy, aided by a benign international |
| * Workers Party (PT-center-left) * Liberal Front | | | | environment, grew approximately 2.9% in 2005 |
| Party (PFL-right) * Brazilian Democratic Movement | | | | and 3.7% in 2006. (Note: In early 2007, the |
| Party (PMDB-center) * Brazilian Social Democratic | | | | Brazilian Institute of Geography and Statistics |
| Party (PSDB-center-left) * Progressive Party | | | | (IBGE) revised its methodology for computing |
| (PP-right) * Brazilian Labor Party (PTB-center-right) | | | | gross domestic product and announced revised |
| * Liberal Party (PL-center-right) * Brazilian Socialist | | | | figures for 2000-2006.) Sustained growth, coupled |
| Party (PSB-left) * Popular Socialist Party (PPS-left) | | | | with booming exports, healthy external accounts, |
| * Democratic Labor Party (PDT-left) * Communist | | | | moderate inflation, decreasing unemployment, and |
| Party of Brazil (PCdoB-left) | | | | reductions in the debt-to-GDP ratio. President Lula |
| President Lula was re-elected October 29, 2006 in | | | | and his economic team have implemented prudent |
| a second round victory with over 60% of the | | | | fiscal and monetary policies and have pursued |
| vote, over Geraldo Alckmin of the PSDB. Lula's | | | | necessary microeconomic reforms. |
| PT party failed to win a majority in either the | | | | Current evidence shows that investment |
| lower or upper houses in concurrent legislative | | | | property in Brazil is now a highly beneficial market |
| elections and will be obliged to form a coalition | | | | in which to invest. While the tourist infrastructure |
| with the centrist PMDB party -- which won the | | | | and economic climate is improving rapidly in Brazil, |
| most seats in the lower house and may end up | | | | investors are urged to catch this market at the |
| with the largest number in the Senate -- and a | | | | very beginning while prices remain incredibly low |
| collection of minor parties. However, party loyalty | | | | and high returns on investment are inevitable. |
| is weak in Brazil, and it is common for politicians | | | | |