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1 [i] (October 16, 2018)

handle is hein.crs/crsmthzzbum0001 and id is 1 raw text is: CRS INSIGHT Brazil's Presidential Election Updated October 16, 2018 (IN10976) Related Author Peter J. Mever Peter J. Meyer, Specialist in Latin American Affairs (pme rcr- Ic , 7-5474) Brazil-the fifth most populous country and ninth-largest economy in the world-held general elections on October 7, 2018. Antiestablishment sentiment carried the day, as Brazilians replaced almost half of their congressional representatives and nearly elected a right-wing populist to the presidency. A presidential runoff election, scheduled for October 28, will have significant implications for the economic and foreign policies of this U.S. strategicpartnfer. Domestic Context Over the past several years, Brazil has struggled to emerge from a series of domestic crises. The country fell into a deep recession in 2014, due to a decline in global commodity prices and economic mismanagement under the center-left Workers Party (PT) government of President Dilma Rousseff (2011-2016). The unemployment rate more than doubled as real gross domestic product contracted by more than 3L from 2015 to 2016. Although economic growth returned in 2017, conditions remain difficult. More than i2% of the population is unemployed, and seveyral million formerly middle-class Brazilians now live in poverty. Budget cuts have exacerbated the situation, limiting the capacity of Brazilian authorities to provide social services and address challenges such as escalating crime and violence. Brazil also is contending with the repercussions of massive corruption scandals. Since 2014, investigators have uncovered arrangements throughout the public sector in which businesses provided bribes and illegal campaign donations to politicians in exchange for contracts or other favorable government treatment. The revelations discredited much of Brazil's political establishment and contributed to the controversial impeachment and removal from office of President Rousseff in August 2016. These repeated political crises have polarized Brazilian society and significantly .reded Brazilians' faith in democracy. President Michel Temer, who succeeded Rousseff, is deeply unpopular. His center-right government has enacted several major economic reforms, including measures to freeze government spending for 20 years, weaken worker protections, and allow greater private sector participation in Brazil's oil sector. Temer also has worked with the Brazilian congress to shield himself from corruption charges. Although international investors have applauded Temer's economic policies, 89% of Brazilians disapprove of his administration. Election Results The October 7 elections demonstrated widespread dissatisfaction with Brazil's political class. Voters Mated 75% of

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