Summary and Keywords
In December 1989, Fernando Collor was elected President of Brazil, in the first election after the 1988 democratic Constitution. The election occurred under the threat of hyperinflation. The winner did not have strong parliamentary support, but the urgency for fighting high inflation gave to the President some time to govern without Judiciary and Legislative resistance. Soon after his inauguration, on March 15, the President launched heterodox stabilization measures—the Collor Plan—to “liquidate inflation.” This plan froze prices, changed the currency, and retained part of checking and saving accounts and other financial assets in Central Bank accounts, to be returned to the owners from September 1991 on. The government also started liberal reforms, privatizing state-owned enterprises and reducing barriers to international trade. The Collor Plan reduced the high inflation, but prices soon increased. On March 31, 1991, the government launched the Collor Plan II, once more against inflation. Having had bad results with the original plan, the government adopted economic orthodoxy, but high inflation remained. The center and left-wing party opposition grew, claiming legal protection for lower salaries and other demands for a substantive democracy. The conservatives pressed for more participation in the Executive in exchange of parliamentary support. President Collor resisted these pressures but finally made a ministerial reform in April 1992, to please the conservative parties and to strengthen his power. However, in May, a magazine published two interviews where the President’s younger brother accused him of corruption. In reaction, the center and left opposition parties made a coalition, and the Congress decided to organize a Mixed Parliamentary Inquiry Commission (CPMI) to investigate the accusation. After three months of inquiry, the CPMI approved, on August 26, a report saying that the President had committed crimes that allowed Congress to impeach him. Since August 16, the CPMI had been supported by a huge mass mobilization for impeachment. The mobilization continued until the Chamber of Representatives decided, on September 27, to allow the judgment of the President by Senate. This decision was achieved because conservative parties were included in the alliance around Vice President Itamar Franco. In December 1992, the Senate voted for Collor’s impeachment.
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