• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Commentarydilma rousseff

Why Dilma Rousseff’s Ouster Won’t Save Brazil

By
Joao Augusto de Castro Neves
Joao Augusto de Castro Neves
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Joao Augusto de Castro Neves
Joao Augusto de Castro Neves
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
August 30, 2016, 6:19 PM ET
BRAZIL-BRASILIA-IMPEACHMENT-ROUSSEFF
BRASILIA, Aug. 30, 2016 -- Suspended Brazilian President Dilma Rousseff attends a Senate impeachment trial in Brasilia, Brazil, Aug. 29, 2016. Brazilian leader Dilma Rousseff, twice elected president as the candidate of a left-leaning alliance led by the Workers' Party, will undergo one of the most critical moments of her political career. (Xinhua/Li Ming via Getty Images)Xinhua/Li Ming — Getty Images
Add Fortune on Google for similar content.

João Augusto de Castro Neves is the Latin American director at Eurasia Group.

Nine months since the beginning of the proceedings in Congress, Brazil President Dilma Rousseff’s impeachment process reached its final mark. The highlight of the trial happened Monday, when Rousseff appeared at the senate floor to present her defense. While there was some discussion between government and opposition, Rousseff’s presence was somewhat lackluster. Her main proposal to appease senators—to call for a plebiscite on new elections, should she return to power—was rejected even by her own Workers’ Party.

With little to offer in exchange for an acquittal, the suspended president has embarked on a more aggressive defense strategy, referring to the impeachment process as a “parliamentary coup” as she sat beside Brazil’s chief justice. While this tone may resonate well with segments of public opinion, it will not be enough to tip the balance in her favor in the senate.

The senate, therefore, is just hours away from deciding whether or not to confirm what most pundits have been expecting for quite some time. The threshold to oust a president is two-thirds of the senate (54 votes), and support for impeachment in the upper chamber has only increased in recent months. The latest tally for tomorrow’s vote stands at 59-60. Chances are that, beginning in September, Brazil will finally have a new president in a permanent capacity. After Rousseff’s ouster, Vice President Michel Temer will be officially sworn in as president to complete Rousseff’s original term, which ends in 2018.

Will the impeachment solve months of acute political and economic turmoil in Brazil? The short answer: no. Against the backdrop of a less favorable global economy, a combination of deep recession, fiscal imbalance, ongoing corruption scandal, and the usual political bickering constitutes what many have called a perfect storm. While the end of a long impeachment trial will bring some respite, the incoming government will continue to face an uphill battle to put the country back on track.

On the economic front, there are two main challenges. The first is to get the country’s troubled finances in order. The end of the commodity super-cycle and several years of macroeconomic mismanagement have taken a toll in the government’s coffers. Any meaningful attempt to correct the course will require structural reforms to limit spending, curtail entitlements, and raise taxes. In addition to stoking an already disgruntled middle class, this unpopular agenda will face a high bar to clear a fragmented congress. Progress on this front, therefore, will be very piecemeal.

 

The second economic challenge will be to regain confidence from investors. During Rousseff’s five-year tenure as president, the hand of the state fell heavily on some sectors of the economy, leading to a number of policy distortions, if not outright incoherence. With little public funds at his disposal, Temer will need to resort to the private sector in order to increase investments and spur an economic recovery. Consequently, a much-needed boost in credibility will demand reforms to improve the business environment for investors. Energy and logistics infrastructure will be two sectors that will face positive changes in the coming months.

But all of this economic reform will happen in a very complicated political environment. The massive corruption scandal that has engulfed large swathes of Brazil’s political class and business elites in the last two-and-a-half years, the investigation known as Lava Jato (or Operation Car Wash), will continue to cast a shadow for the time being. But while an active and autonomous prosecutorial body will maintain the investigation alive for at least several more months, Temer is likely to survive. The lingering uncertainty, however, will make his life harder to project more credibility to investors and Brazil watchers more broadly.

Be it as it may, Temer will lead a transition government ahead of the 2018 presidential election. Whoever wins then will need to carry on with an ambitious reform agenda. If there is a silver lining, it’s that Brazil’s perfect storm may have started to clear. With the impeachment saga over and incipient signs of economic recovery, the worst of the country’s crisis appears to be in the past. A successful Olympic Games in Rio, after much concern, has also helped to boost morale. But for Temer, the real governing game will begin now.

About the Authors
By Joao Augusto de Castro Neves
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Commentary

craig
CommentaryPharmaceutical Industry
Big pharma’s patent cliff meets a new biotech Cold War: We need to outrun China, not outlaw it
By Craig GarthwaiteJuly 24, 2026
14 hours ago
tim
Commentarysmartphones and mobile devices
NYU Stern pricing expert: There’s a hidden ‘AI tax’ hitting Apple, Dell — and your next phone
By Srikanth JagabathulaJuly 24, 2026
14 hours ago
nyse
CommentaryEconomics
AI doesn’t end scarcity. It relocates it
By François Candelon, Paul-Louis Andres and Augustin ManchonJuly 24, 2026
16 hours ago
Can Bangkok future-proof itself against the heat?
CommentaryThailand
Can Bangkok future-proof itself against the heat?
By Curtis S. Chin and Ella TanJuly 23, 2026
1 day ago
mm
CommentaryLeadership
Michael Muthukrishna: The ‘lone genius’ myth is wrong and it’s holding back your business
By Michael MuthukrishnaJuly 23, 2026
2 days ago
Paul Keary (L) and Mike Sutcliff (R).
CommentaryAI agents
Teneo & Thoughtworks CEOs: the AI race will be won with governance, not speed 
By Paul Keary and Mike SutcliffJuly 23, 2026
2 days ago

Most Popular

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Big Tech
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
By Sydney LakeJuly 23, 2026
2 days ago
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
Economy
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
By Eleanor PringleJuly 24, 2026
18 hours ago
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Economy
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
By Sasha RogelbergJuly 23, 2026
1 day ago
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
2 days ago
Current price of oil as of July 24, 2026
Personal Finance
Current price of oil as of July 24, 2026
By Joseph HostetlerJuly 24, 2026
16 hours ago
Turns out Dead Internet Theory was right: AI agents are eating the Web, growing by nearly 8,000% and rewiring the Internet's business model
AI
Turns out Dead Internet Theory was right: AI agents are eating the Web, growing by nearly 8,000% and rewiring the Internet's business model
By Mia OsmonbekovJuly 23, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.