Lula’s Dramatic Comeback Faces an Economic Reality Check

Two decades after assuming Brazil's presidency the first time, Luiz Incio Lula da Silva is once again preparing to take the reins of power. After eking out a narrow win in a bitterly fought race against incumbent Jair Bolsonaro, the 77-year-old leftist leader now faces the immense challenge of paying for his ambitious pledges and keeping the politically divided country growing.

In Brazil, poverty is increasing and the economy hasn't fully recovered from the damage done by the Covid-19 epidemic, as evidenced by the return of the president. He was in office from 2003 to 2010 and subsequently imprisoned after a now-quashed corruption conviction, and has vowed to extend the program of monthly cash transfers to the poor beyond the end of this year. Price pressures are a global problem that officials are battling hard to contain.