During the presidency of Lula da Silva Brazil’s governing Workers’ Party has turned from a radical alternative into a safe pair of hands for capitalism. Now support is growing for a socialist alternative in the coming presidential elections.

Brazil is not just one of the world’s most unequal and fast-growing economies. It’s also a country where a Marxist-influenced  Workers’ Party (PT) united the whole working class and was elected to power. During the presidency of Lula da Silva, a former metalworker and trade union leader, the PT has turned from a radical alternative into a safe pair of hands for capitalism.

In the 1990s the party won popularity for advocating immediate land reform and a default on the external debt. In the campaign for the presidential elections in 2002, Lula looked set to win because of huge disillusionment with Brazil’s corrupt politicians. However, the stock markets and capitalist newspapers started to panic at the idea of a trade unionist president rather. Foreign investment threatened to dry up. Lula switched to wearing suits, moved right and began courting more conservative allies.

In the middle of the election campaign he supported a record deal with the IMF which boosted the stock market and promised spending cuts. He started talking about fiscal responsibility and the need to pay back the country’s huge debts, which had risen from 30% to 55% of GDP under president Cardoso, of the social-democratic PSDB, despite a huge privatisation programme. That swung enough of the capitalist class and conservative voters to bring Lula to power.

Taking office in 2003, Lula’s government started a series of attacks on pensions, education and workers; rights. Pensioners over the age of 90 had to reapply personally for their pensions. The retirement age was increased and pensions were limited, especially for civil servants, saving £12bn.

The stock market soared with the good news for capitalism, until a huge strike wave developed and a left wing group of PT MPs formed in the senate which refused to vote for these attacks. They were expelled by Lula, who then continued with neoliberal policies similar to those of Cardoso. To prevent further rebellions in congress, the PT started a secret multi-million programme to bribe opposition MPs, starting with a tax reform in September 2003.

After raising over 400,000 signatures, the expelled MPs were able to register a new party: the Party of Socialism and Liberty (PSOL). In the 2006 election campaign they won 6.5 million votes, and got three MPs elected into the parliament. The party has now grown to 11,000 members.

In the 2010 presidential election, the PSOL is running Plínio Arruda Sampaio, an 80-year old veteran socialist, alongside Hamilton Assis, the first-ever black candidate for vice-president. The two front-runners, Dilma Rousseff from the PT and José Serra from the PSDB, are both social-democratic economists committed to neoliberal policies. Because the party is represented in the senate, Plínio has been able to take part August’s televised presidential debates. According to The Economist’s review of the presidential debate, “Plinio Soares de Arruda Sampaio of the Socialism and Freedom Party, was the only one to throw caution to the wind.”

Hamilton Assis

Left vice-presidential candidate Hamilton Assis

Despite the PT’s collapse into neoliberal social democracy, most workers in Brazil think there is no alternative to the PT or PSDB. In the 2006 elections, support for socialists in other countries was vital in showing the credibility of the PSOL’s campaign. Socialists from every continent have endorsed a statement backing the campaign, including supporters of Counterfire, Socialist Resistance and the SWP here in Britain. To see the statement and signatories, go to http://bit.ly/plinio. Add your name to the statement by emailing apoiopliniopresidente@yahoo.com.br.

Duncan Chapel is a member of the Socialist Resistance editorial board. This article first appeared at Counterfire.