The far right Bolsonaro leads the Brazilian presidency against corruption

BRASILIA / RIO DE JANEIRO (Reuters) – Right-wing legislator Jair Bolsonaro won the presidential election of Brazil on Sunday, promising to clean up politics, shrink the state and fight against crime, by turning away from the left in the world. greater democracy.

The former army captain has alarmed many people with vows to keep political opponents off the map and make comments denigrating women, gay men and racial minorities.

He will be the first president from the armed forces since the end of the Brazilian military dictatorship of 1964-1985, which he publicly praised. He has hired retired generals to serve as vice-president and lead key departments.

In his first public comments after his overwhelming victory, he pledged to respect democratic principles, while saying he wanted to change the direction of the country.

"We can not continue to flirt with socialism, communism, populism and leftist extremism … We will change the destiny of Brazil," said Bolsonaro in a speech of acceptance, promising to eliminate corruption and stem the flow of violent crime.

US President Donald Trump's declared admirer, Bolsonaro is also committed to realigning Brazil with more advanced economies rather than regional allies, reshaping diplomatic priorities after nearly fifteen years of left-wing government.

Trump called Bolsonaro to wish him good luck shortly after his election victory, foreshadowing closer political ties between the two largest countries in the Americas – both now led by conservative populists promising to overthrow the political establishment.

Bolsonaro garnered 55.2 percent of the vote in the presidential election against left-wing candidate Fernando Haddad of the Workers Party (PT), with 44.8 percent, according to the TSE electoral authority.

The 63-year-old Congressman's rise was prompted by the rejection of the left-wing party that ruled Brazil for 13 of the past 15 years. The party was ousted from power in 2016 in the midst of a deep recession and a political corruption scandal.

Thousands of Bolsonaro supporters cheered and set fireworks in front of his home in the upmarket Barra de Tijuca district of Rio de Janeiro, at the time of his announcement. victory. In the commercial capital of Brazil, Sao Paulo, Bolsonaro's victory was greeted by fireworks and car horns.

Investors also praised the rise of Bolsonaro, relieved that he could keep the PT safe from power and hoping to carry out the tax reforms proposed by his guru of the orthodox economy.

The Brazilian listed exchange-traded funds (ETF) jumped by more than 12% at the opening of the Japanese markets following the victory of Bolsonaro.

"I do not adopt Bolsonaro and I do not know if he will rule well, but we are hopeful. People want to get out of the PT, they can not fight corruption anymore, "said Tatiana Cunha, a 39-year-old systems analyst at a raucous party in Rio.

MILITARY CONTEXT

Many Brazilians fear that Bolsonaro, an admirer of dictatorship and defender of his use of torture against left-wing opponents, tramples on human rights, restricts civil liberties and muzzle freedom of expression.

Human Rights Watch called on Brazilian judges, prosecutors, media and civil society to oppose any Bolsonaro attempt to "erode the democratic rights and institutions that Brazil has laboriously built over the past three years. decades ".

In his acceptance speech, Bolsonaro promised to govern according to the Bible and the country's constitution.

The live broadcast of Bolsonaro's lyrics was preceded by a prayer led by legislator, pastor and gospel singer Magno Malta, highlighting Bolsonaro's links with the evangelical churches that supported him for supporting their conservative social agenda.

Evangelical congregations in Brazil, which are developing rapidly, have created a conservative political force, which Bolsonaro put to use by decrying sex education in schools and by blocking the rights of homosexuals.

He promised to fight crime in Brazilian cities and agricultural areas by giving police more autonomy to shoot suspected criminals. He also wants to let more Brazilians buy weapons to fight crime.

He himself was stabbed at a rally last month and will have to undergo surgery in mid-December to remove a colostomy bag, the leader of his social-liberal social party told reporters. socialist, Gustavo Bebianno.

DELEGATED INVESTORS

Bolsonaro said it would "unite Brazil" by cutting red tape and red tape for businesses. He committed to fiscal discipline and called for the rapid elimination of the federal government's budget deficit.

"We will think in terms of more Brazil and less Brasilia," he said, referring to the capital of the country where he will take office on 1 January.

The financial markets should rally Monday to the victory of Bolsonaro.

The real currency gained about 10% against the dollar in the last month, as Bolsonaro's chances of winning improved. The Bovespa benchmark in Sao Paulo has increased by 13.5% since mid-September.

Investors are particularly encouraged by the choice of Paulo Guedes, an economist and investment banker educated at the University of Chicago, as economic guru and future minister of the economy.

Guedes said the new government would try to erase Brazil 's unsustainable budget by one year, simplify and reduce taxes and create 10 million jobs by reducing payroll taxes. New rules will boost investment in infrastructure, he told reporters.

Guedes wishes to privatize a range of state-owned companies, including units of the oil company Petroleo Brasileiro SA (Petrobras) and the electricity company Centrais Eletricas Brasileiras SA (Eletrobras).

However, his free market ideas opposed the views of retired army generals who help Bolsonaro expand his government program.

On Sunday, Guedes said Brazil would seek to improve its trade relations outside the restrictions imposed by the Mercosur bloc founded with its Argentine neighbors, Uruguay and Paraguay.

The rise of Bolsonaro follows the conservative election victories in Argentina, Chile, Colombia, Paraguay and Peru, pushing the continent to the right and undermining support for Venezuela's authoritarian socialist regime.

Several hundred protesters from the PT protested Bolsonaro's victory on Paulista's main avenue in Sao Paulo before the police dispersed them with tear gas.

But the vote was calm and orderly across the country, said Laura Chinchilla, former president of Costa Rica, head of the electoral observation mission of the Organization of American States. Brazil suffered a wave of partisan violence during the polarized campaign.