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Brazilian legislators are developing an intense agenda aimed at increasing parliamentary control over IFIs. Until now, four petitions were put forward, among them a proposal for constitutional reform to include popular referenda prior to the approval of agreements with IFIs.

There are four main facts worth mentioning regarding parliamentary action in Brazil that are relevant as moves that have potential effects on the relations between the Brazilian government and IFIs:

1) In 2003, a parliamentary coalition (called "Parliamentary Front for the Defense of Public Finance and National Sovereignty") was created in Parliament. Rede Brasil assisted in gathering materials and momentum to launch this parliamentary front. It is a kind of caucus that has a focus on IFIs (mainly IMF, World bank and IDB). From time to time the front is brought into action under the leadership of a few of its members.

2) A Proposal of Constitutional Amendment (PCA no. 223/2003) was initiated in the Brazilian Parliament by MP Ivan Valente in Dec. 2003, after a seminar co-organized by Rede Brasil and the Parliamentary Front to discuss the implications of IMF policies. This PCA extends to the lower house the power to approve foreign loans and credit operations. If finally turned into an actual amendment, this reform of the constitution will open new polical avenues for legislators to be involved in debating IFIs dealings with the Brazilian government.

3)A proposal of constitutional amendment (PCA no. 389/2005) has been initiated in the Brazilian parliament by MP João Alfredo, a member of the "Parliamentary Front for the Defense of Public Finance and National Sovereignty", which Rede Brasil helped set up in 2003. The PCA establishes that international agreements which may curtail national sovereignty or which delegate powers of the Brazilian state to supranational bodies must be ratified by popular referendum. According to the staff of MP João Alfredo, if the PCA is approved, agreements with the IMF would have to be confirmed by the people by means of referenda. An official opinion given by the rapporteur of the PCA, MP Zulaie Cobra, affirms the constitutional soundness of the amendment proposal. In its current form, the PCA establishes that a referendum will be required in the instances indicated by referral of: (a) the President of the Republic, (b) the Parliament or (c) by 3 percent of the national electorate.

4)A legislative Bill (no. 2785/2003) has been initiated in the Brazilian parliament which proposes that appointment of Brazilian nationals to fill posts in international organizations be subject to approval by the upper legislative house (the Federal Senate). According to the official rapporteur of the bill, MP João Hermann Neto, the legislative proposal has the aim of "improv[ing] the control exerted by society upon the actions of the government and thus strengthens democracy". The rapporteur also states that the "agreements with the International Monetary Fund permeate our choices of economic policy. It is only natural that the Senate be empowered to monitor Brazilian representatives in this and other organizations".

In the meantime, civil society organizations supporting this initiative are strengthening their actions in order to move forward in the same direction as Brazil. In this sense, the next step will be a meeting to be held on September 25, within the framework of the IMF/World Bank Annual Meetings in Washington D.C. It is expected that new strategies will be outlined there in order to continue along the same path.

Source: Rede Brasil

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