at the 2nd
World Trade Organization Ministerial Conference in Geneva, Switzerland, 18 May 1998 in the
Oval Office in 2001 in Moscow in January 2002 Cardoso, often nicknamed "FHC", was elected with the support of a heterodox alliance of his own
Brazilian Social Democracy Party (PSDB) and two right-wing parties, the
Liberal Front Party (PFL) and the
Brazilian Labour Party (PTB). Brazil's largest party, the centrist
Party of the Brazilian Democratic Movement (PMDB), joined Cardoso's governing coalition after the election, as did the right-wing
Brazilian Progressive Party (PPB) in 1996. Party loyalty was not always strong, and coalition members did not always vote with the government. Cardoso had difficulty at times gaining support for some of his legislative priorities, even though his coalition held an overwhelming majority of the congressional seats. Nevertheless, many constitutional amendments were passed during his presidency. Cardoso's presidency saw institutional advancements in human rights, beginning with a national secretariat and a new government program, discussed with civil society, to address the issue. On 8 January 1996, he issued the controversial
Decree 1775, which created a framework for the clear demarcation of
indigenous territories, but which, as part of the process, opened
indigenous territories to counterclaims by adjacent landowners. In 2000, Cardoso demanded the disclosure of some classified military files concerning
Operation Condor, a network of South American military dictatorships that kidnapped and assassinated political opponents. FHC was the first Brazilian President to address the
inequality and the enormous gap between rich and poor. He started the following programs:
Bolsa Escola, the
Auxílio Gás, the Bolsa Alimentação, and the Cartão Alimentação. His wife,
Ruth Cardoso, focused on unifying transfer programs aimed at helping people suffering from poverty and hunger., by means of a program based on the idea that educating the poor could help raise them out of poverty. Cardoso's administration deepened the privatization program launched by president
Fernando Collor de Mello. During his first term, several government-owned enterprises in areas such as steel milling, telecommunications and mining, such as
Telebras and
Companhia Vale do Rio Doce were sold to the private sector, the deepest denationalisation in Brazilian history, amidst a polarized political debate between "neoliberals" and "developmentalists". Ironically, this time Cardoso was against the latter group, generating uproar among former academic colleagues and political allies who accused him of reneging on his previous intellectual work. Economists still contend over its long-term effects; some research suggests that companies sold by the government achieved better profitability as a result of their disengagement from the state. (right), at the
inauguration of
Luiz Inácio Lula da Silva on 1 January 2003 Despite the sale of public assets, the years 1995 to 2002 saw a rise of the total public debt from 30% to 55.5% of GDP. Economists aligned with his government argued that this was due to external factors outside the control of the administration at the time, such as the devaluation of the Brazilian real and the growth of the share of the debt denominated in US dollars. Nevertheless,
devaluation of the currency was an instrument of
monetary policy used right after his reelection, when the real pegged to the dollar led to a financial crisis that saw the country lose much of its foreign reserve fund and raise its interest rates on government bonds to very high levels as he tried to stabilize the currency under a new free-floating regime. With this economic shift, the greatest achievement of Cardoso – his landmark lowering of inflation – was maintained, but his popularity plummeted. Given his previous experience as Minister of Foreign Affairs and his prestige as an internationally famous sociologist, he was respected on the world scene, building friendships with such leaders as
Bill Clinton and
Ernesto Zedillo. Although he was respected abroad, in Brazil he had problems gaining support in Congress for government priorities and among people in general. As a result, major reforms planned by the
executive branch, such as changes in the tax system and to
social security, were only partially approved and only after long discussion. Although claiming to still support
social democracy, his economic policies led people on the left to identify him with
neoliberalism and
right-wing politics, terms that often carry a
very negative connotation in Latin American political debate and academic circles. Due his mix of
neoliberalism and
social democracy, but also because of the friendship with
Ernesto Zedillo and
Bill Clinton, Cardorso is considered to be a follower of the
Third Way. He also experienced personal problems with former ally
Itamar Franco, his predecessor who later became Governor of
Minas Gerais, a fierce opponent of his administrative reforms that saw the state lose its capacity to contract debt and forced a reduction of local government spending. Cardoso was also criticized for amending the constitution to his own benefit, allowing him to stay eight years in office. His popularity in his first four years, gained with the success of
Plano Real, decreased during his last four years as the currency crisis was followed by lower economic growth and employment rates, greater public debt, growing political dissent, low levels of investment in appropriate infrastructure, and, finally, an energy crisis caused by an unexpected drought, as over 80% of Brazil's electricity is hydroelectric. He publicly admitted that he could have done more for
public security and for the creation of new jobs, but defended his policies in areas such as health and education. Cardoso's administration was accused of bribing congressmen to pass a constitutional amendment that secured FHC the right to seek reelection, which he eventually won. ==Post-presidency==