Brazilian Business Leaders Push Back on an Illiberal President

*By Adam Fefer
Time Period: 2019-2023
Location: Brazil, especially Rio de Janeiro
Main Actors: Federation of Industries of the State of São Paulo, Instituto Ethos, Sistema B

Tactics

Brazil became less free and democratic during Jair Bolsonaro’s presidency (2019-2022). During his campaign, Bolsonaro attacked Afro-Brazilians, women, and indigenous peoples, while expressing nostalgia for Brazil’s military dictatorship (1964-85). While in office, journalists and civil society activists were harassed and faced violence. Bolsonaro threatened Supreme Court justices and publicly opposed independent checks on his power. Brazil’s disastrous COVID-19 response was heightened by Bolsonaro’s efforts to suppress public data about cases and fatalities as well as his promotion of the ineffective drug hydroxychloroquine.

In January 2023, after Bolsonaro was defeated by President Lula da Silva, around 5,000 Bolsonaro supporters attacked federal buildings in the capital, Brasília, to disrupt the transfer of power. The rioters were motivated by misinformation about the election and many sought to reinstate military rule. Brazil’s January attack, which not incidentally mirrored the US’ January 6 capitol attack, drew widespread condemnation.

Bolsonaro enjoyed extensive support from leaders of the business pillar during and after his time in office. Compared to his main opponent –the left-leaning Workers’ Party (PT)– Bolsonaro’s privatizations, efforts to reduce public sector pensions, and support for Amazon’s deforestation were popular among business elites. More generally, economic concerns were crucial in polarizing Brazilian society and tempting many to embrace Bolsonaro. Indeed, the 2014-16 recession was the worst in Brazilian history. 

In spite of broad business support, influential members of the business pillar did make statements and take actions in response to Bolsonaro’s anti-democratic behavior. For example, in August 2022, the Federation of Industries of the State of São Paulo –a business association representing over 100,000 industries– authored a letter called “In Defense of Democracy and Justice.” The letter, which was published in 5 national newspapers, garnered over 100 signatories, including businesses, NGOs, unions, and universities. Key among its themes were the importance of Brazil’s judiciary and electoral court –institutions that Bolsonaro repeatedly attacked– in strengthening both democracy and the economy. The letter emphasized that strong democratic institutions can help mitigate recessions, inflation, and under-development, independent of which political party is in office. In this way, the Federation both took a non-partisan approach and appealed to concrete business interests.

Additional examples can be drawn from publications by Instituto Ethos, a business-led civil society organization. In March 2020, it published a piece denouncing Bolsonaro’s COVID-19 policy as authoritarian and his actions as constituting executive aggrandizement. It urged all Brazilian citizens and institutions to ignore Bolsonaro’s recommendations. One month later, Instituto Ethos denounced Bolsonaro’s politicization of the police, which involved appointing a close ally and family friend as director-general of the Federal Police. Instituto argued that Bolsonaro would use the appointment to unlawfully access intelligence reports and shield his family from corruption investigations. The statement was prudent to highlight an issue related to crime, which also polarized Brazilian society before Bolsonaro’s election and swelled his support. 

Finally, in August 2022, Instituto Ethos published a piece denouncing businesses who expressed support for a coup if Bolsonaro wasn’t reelected, stating in no uncertain terms that these do not represent the private sector. Much like with the Federation of Industries letter, Instituto emphasized that democracy is essential to a strong economy and urged businesses to help disseminate high-quality information about elections and encourage voting. It also launched a guide with recommendations for pro-democracy business actions with respect to elections. 

A third example comes from Sistema B, a Latin American coalition of businesses committed to ethical and sustainable practices. In October 2018, Brazil’s Sistema B branch denounced Bolsonaro’s efforts to deregulate the environment. For the firms that make up Sistema B, Bolsonaro had undermined democratic values of accountability, transparency, and the public good.

The campaign against Bolsonaro by Brazil’s business pillar likely played a role in Lula da Silva’s presidential victory. Bolsonarism was dealt a further blow when Brazil’s Superior Electoral Court banned him from seeking reelection until 2030. It should also be noted that Bolsonaro’s administration became increasingly unpopular and was perceived as inept, especially with respect to its COVID policy. 

Democracy advocates in the US can learn much from the examples set by Brazil’s business pillar. A first lesson is that successful campaigns will mobilize many different kinds of interests, as was the case with the Federation of Industries letter, whose signatories included trade unions, banking federations, and bar associations. US businesses –from large corporations to small firms and everything in between– should be similarly persuaded that autocracy harms the economy and their daily operations. A second lesson is that pillar-specific language can be very effective in garnering legitimacy and avoiding perceptions of partisanship. Brazilian pro-democracy businesses appealed in non-partisan terms to the imperatives of combating inflation and under-development. Finally, although businesses may be very effective when appealing to economic issues, they can also play a key role in promoting more traditional democracy issues, as demonstrated by Instituto Ethos’ efforts to combat misinformation and encourage voter turnout. 

Where to Learn More
– Cameron, C. (2023). The attack on Brazil’s seat of government resembles the storming of the U.S. Capitol on Jan. 6, 2021. New York Times.
– Hunter, W., & Power, T. J. (2019). Bolsonaro and Brazil’s illiberal backlash. Journal of democracy, 30(1), 68-82
– Smith, A. E. (2020). COVID vs. Democracy: Brazil’s Populist playbook. Journal of Democracy31(4), 76-90.