By Cibele Reschke, a Brazilian journalist, currently enrolled in a Master’s program in China Studies at the Yenching Academy of Peking University
Two days before the 11th gathering of leaders from the Group of 20 - twenty major economies in the world - in Hangzhou, China, on Sept. 4-5, Brazil has confirmed its attendance.
The nation is undergoing a severe political crisis, which had led to the impeachment of President Dilma Rousseff. Michel Temer was sworn in as the Brazil's new president on Wednesday shortly after lawmakers ousted Dilma Rousseff from her presidency in an impeachment vote. Temer has be installed in office to represent Brazil at the forthcoming G20 summit.
This would be his first chance to get international recognition, as well as a strategic step towards increasing his tarnished domestic popularity.
Temer’s performance at the G20 summit will be crucial for resuming Brazil’s economic growth. His main goal will be to reestablish trust among international investors, especially China, Brazil’s largest trading partner and investor, by showing that his intended economic reforms will re-stabilize the economy.
“Attracting the attention of overseas investors is key for Brazil at this moment of economic distress, and the G20 forum will be a great opportunity to do so. Foreign capital will be necessary to help boost investments and job creation,” said Larissa Wachholz, a specialist in the Chinese market who is a partner and director of Vallya, a Brazilian bank of boutique investments.
Brazil has become the main destination of Chinese capital in Latin America, with investments approaching US$ 50 billion. The Latin American country relies on the financial support of its Asian partner, and China is deeply interested in importing Brazilian commodities and agricultural products, specifically after the Chinese plan to rebalance the economy .
Prior to confirming his G20 attendance, Temer had already scheduled meetings with leaders from Italy, Spain, Saudi Arabia, China, and other BRICS (Brazil, Russia, India, China and South Africa) nations.
While meeting with Chinese President Xi Jinping, the Brazilian officials intend to sign an agreement to expand cooperation in the services and trade fields. They will also discuss the creation of a bilateral fund to sponsor infrastructure projects in Brazil.
Apart from softening Brazil’s urgent financial problems, Temer will have another important role to play: To engage as a global leader during the G20’s discussions on the United Nations 2030 agenda to fight against poverty and promote sustainable development.
With positive experiences, such as the cash-transfer program “Bolsa Familia”, which had lifted 36 million people from extreme poverty over the past twelve years, Brazil is expected to contribute much to the program.
Just as the nation showed it could successfully host a major global event such as the Rio 2016 Olympic Games amid social unrest, the country needs to prevent a political crisis from interfering with its performance at the G20.
Building international cooperation to solve an internal financial slump should be prioritized over party politics. The ouster of Rousseff should not harm the promotion of local and global interests at the forum.
( The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com. )
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