Viewing cable 08SAOPAULO498
Title: GLOBAL ECONOMY; SOUTH AFRICA

IdentifierCreatedReleasedClassificationOrigin
08SAOPAULO4982008-09-23 11:02:00 2011-08-30 01:44:00 UNCLASSIFIED Consulate Sao Paulo
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TAGS: KMDR OPRC OIIP ETRD XM XR BR
SUBJECT: GLOBAL ECONOMY; SOUTH AFRICA 
 
While the help doesn't come 
 
Lead editorial in center-right O Estado de S. Paulo (09/23) says: 
"The initial enthusiasm is over, the financial market found out that 
the world is not safe yet and that approval of the US$ 700 billion 
plan presented by the U.S. government on Friday will demand tough 
negotiations.  The Executive Branch asks urgency of the Congress, 
but senators and congressmen, as well as the candidates for the U.S. 
presidency, try to gain politically with the crisis and also with 
the bailout operation proposed by President George W. Bush and by 
Treasury Secretary Henry Paulson.  No important politician opposes 
the use of public money if it is used to avoid the worst, but 
there's no lack of suggestions as to how to execute the 
intervention. ... In the world's other rich countries, no government 
is willing to adopt a plan similar to that presented by Bush and 
Paulson. ... Brazil is ok, but the crisis should not be 
underestimated, observed Brazilian Central Bank president Henrique 
Meirelles on Monday.  Now, President Lula says he is not considering 
the hypothesis of the crisis contaminating Brazil.  Thank God, said 
Lula, the U.S. crisis up to now "did not cross the Atlantic." In 
fact, it is not easy to come from the U.S. to Brazil by this 
route." 
 
The South African Challenge 
 
Editorial in liberal Folha de S. Paulo (09/23) comments: "After nine 
years in power, South African president Thano Mbeki announced his 
resignation on Sunday. ...It is the end of an era.  Upon succeeding 
Nelson Mandela, Mbeki represented the consolidation of the 
post-apartheid society in the country. He leaves as his legacy an 
unprecedented stability and an emerging black middle class. 
However, Mbeki was not able to achieve any notable triumph over the 
persistent poverty in the country.  Income disparity grows and the 
challenge of racial polarization has not yet been overcome. ...With 
Mbeki's decline, the model of power represented by the African 
National Congress (ANC) is the key for the future.  ... The coming 
months will show if the young democracy will continue to point to a 
promising future for the continent." 
Story