New Labour, New Lula, same old Champagne socialism

Sorry FHC, but socialism is more
lucrative these days.

Interesting interview in Brazilian newspaper Estadao with Brazil's ex-President "FHC" (Fernando Henrique Cardoso). His government carried out a number of high-profile privatisations between 1995 and 2003 and many credit his economic reforms as the basis for Brazil's subsequent boom, obviously aided by the global thirst for this country's raw materials. His left-wing successor Lula, for all his socialist swagger, managed not to upset FHC's apple cart too much, hence the reason why the boom didn't turn to bust, as so often before in this stop-start economy.

FHC tells Estadao (in a rough translation and paraphrasing) that Lula, who had been so critical of the privatisation programme, now jet-sets around the world speaking to companies like Telefonica in London for $100,000 a throw. He adds that Lula's son is the director of another telecoms company. FHC is annoyed that Lula has had it both ways - indulging in revolutionary socialist rhetoric that condemns the private sector while in reality benefiting from his predecessor's reforms and economic initiatives. Lula's newfound corporate cheerleading is insult to injury.

Coming from the UK I can only sigh wearily at the non-news that yet another famous "socialist" ex-leader has boarded the gravy train of celebrity speaking and "consultancy" (ie please make a few phone calls to your old chums and we'll pay you £1m a year). Bill Clinton, Tony Blair, now the hideous Peter Mandelson and Gordon Brown are trying it. The Blair gravy train is something to behold and no doubt Lula will be hoping to take a few leaves out of the ex-British PM's book.

In the honeymoon period of his first government, Blair tried to label his "new" socialism as "The Third Way". All sorts of PPE-drivel was spouted at the time but Blair's Labour Party was simply a chastened left-wing, after years without power, benefiting from the economic foundations laid by the hated right-wing and, perhaps more importantly, by an unprecedented globalisation of capital and markets. Sound familiar, Lula ?

Blair's money-man, Gordon "prudence" Brown, played a key role in blowing the UK's budget and leaving the country deeply and desperately in debt. Now he hopes to become President of the IMF. You couldn't make it up.

Lula's much-lauded redistribution of Brazilian wealth in the form of handouts to the poorest may have been prudent or it may have been a gimmicky distraction from more important reforms that were not made. Time will tell but my money's on the latter.

Either way, there can be no question that, for ex-Prime Ministers and Presidents, and for their courtly circles, champagne socialism has never been in ruder health. While the middle classes feel more pinched than ever, and many feel they are downwardly rather than upwardly mobile, our great revolutionary leaders have long since joined the ranks of the twenty-first century aristocracy.

Saude !