Neo-Liberal "Democracy" in Action

One of the claims repeatedly made by proponents of neo-liberal globalization is that their policies are an essential ingredient in bringing "democracy" to developing countries. Increasingly, investment and aid to these countries is made conditional on their acceptance of "democratic" reforms dictated by the International Monetary Fund (IMF) and World Bank. However, the case of Brazil shows, once again, that the concept of democracy promoted by the international financiers is considerably different from the way ordinary people use the term.

Brazil is in the grips of a serious financial crisis due largely to interest payments on its $210 billion foreign debt and massive outflows of profits to foreign investors. The ruling coalition is also suffering from a severe credibility crisis, as one after another of its leading lights is charged with corruption related to the privatization of public enterprises, a key neo-liberal policy imposed on Brazil by the IMF and World Bank.

The people of Brazil, disgusted with the corrupt and anti-democratic activities of the governing parties are preparing to throw them out of office and replace them with progressive candidates with a track record of honesty and respect for the democratic wishes of the Brazilian people. The response of the international financial oligarchy has been to threaten the Brazilian people with financial ruin if they dare to exercise their democratic rights and elect representatives they trust. In response to polls indicating an overwhelming lead for presidential candidate Luis "Lula" da Silva of the Workers Party, major investment banks, including Morgan Stanley Dean Witter and Merrill Lynch began downgrading their ratings for Brazil in May, causing the country's stock market to plummet and its currency to decline. They are threatening to plunge the country into even deeper crisis if Brazilians dare to throw the crooks out of office and elect Lula in October's presidential elections. Is this what neo-liberals mean by "free and fair elections"?