domingo, 29 de março de 2009

The Plano Real and the Global Crisis

The Plano Real and the Global Crisis

Stanley Martins Frasão

The Provisional Measure[1] 542, of June 30, 1994, ratified afterwards by several others, was converted into the Law 9.069/95, which ruled on the Plano Real and, among other things, established regulations for the transition from Cruzeiro Real, the URV and the Real, especially concerning the conversions of obligations.
The aforementioned Provisional Measure altered the currency of the country, commanded the writing in Real of all pecuniary expressions that translated into the national currency, fixed the parity between the Real and the Cruzeiro Real, and between the URV and the Real.
The Program of Economic Stability, or Plano Real, is considered the best in combating inflation, among others launched in recent times.
More accurately we continue in search of economic stability, for Brazilian inflation, according to the IBGE, measured by the IPCA (families with monthly incomes within 1 to 40 minimal wages), presents the following evolution, not counting the periods of price freezes:

1,990 (1,620.97), 1,995 (22.41), 2,000 (5.97), 2,005 (5.69)
1,991 (472.69), 1,996 (9.56), 2,001 (7.67), 2,006 (3.14)
1,992 (1,119.09), 1,997 (5.22), 2,002 (12.53), 2,007 (4.46)
1,993 (2,477.15), 1,998 (1.65), 2,003 (9.30), 2,008(until Nov.) (5.61)
1,994 (916.46), 1,999 (8.94), 2,004 (7.60)

The global crisis has generated worries of all sorts to everyone, causing the devaluation of the Brazilian currency against the dollar. The currency reflects the soul of its people. Consider the American example. The sum of the forced course and the public confidence in the government that mints the currency allowed the transition of the metal currency to the nominal concept, separated from its metallic element, when Nixon completely eradicated the gold standard in 1971. Since then the dollar was worth only by force of the trust of American citizens and other countries in the United States economy.
The Plano Real recovered people’s trust in the economy and the government, and since 1990 the Brazilian currency was embodied in the “dollar-standard”.
The government, the Plano Real, started to control an instrument capable of eradicating inflation from our economy, but we should not ignore the “Francomano of law”, because those who spend more than they earn and are indebted more than they can shall lose their independence, soul, and shall mortgage their future. If the State does not apply the wise Italian Law it will foment inflation, allowing the corrosion of the currency, and consequently the loss of trust from the people, which will allow all sorts of uncertainties to emerge.
The future, of course, is unknown. But the eternal and resistible Brazilian hope lessens the uncertainty that we will never have a devaluation in the currency comparable to the year of 1989, when it reached 1,765%.
[1] In Brazilian Constitutional Law, a Provisional Measure (Medida Provisória) is adopted by the President without the participation of the Legislative. It has the force of a law, but it is not a law until it is approved by Congress.

Parliamentary Inquiry Commission of the Penitentiary System

Parliamentary Inquiry Commission of the Penitentiary System

Stanley Martins Frasão

Recently I have had the opportunity to watch the video presented by the bachelor in Law, Vivian Azevedo Rodrigues, presented on the Parliamentary Inquiry Commission (CPI) of the Brazilian Penitentiary System, depicting its negative situation and criticizing it. The CPI was created with the goal of investigating the reality of the penitentiary system, focusing on the overpopulation of the detention centers, the economic and social costs established, the permanence of the prisoners who have already finished their term, the violence inside the institutions of the prison system, the corruption, organized crime and its ramifications in the prison facilities, and to seek solutions for the effective implementation of the Penal Law.
The aforementioned CPI, after ample studies and analyses of 56 prison establishments in 18 States, presented the Bill 4202/2008 which: (i) alters the procedures for material assistance, health assistance (of preventive and curative nature, encompassing medical, pharmaceutical, dental and psychological care), and judicial assistance for the interns, and discharge assistance, (ii) increases the number of members of the National Council for Criminal and Penitentiary Policy to 19 (the members’ mandate in the council will last 2 years, allowing continuation), (iii) creates at least one Center for the Monitoring and Accompaniment of the Execution of Penal Sentences and Alternative Measures to Imprisonment per municipality, equipped with inspecting teams and interdisciplinary teams composed of psychologists, social workers, educators and other professionals whose field of knowledge is related to the execution of penal sentences and alternative measures to imprisonment, and (iv) establishes that each municipality will have at least one public jailhouse in order to guarantee the interest of the Administration of Criminal Justice and the permanence of the prisoner in a place near his or her family and social milieu.
Furthermore, the admittance of prison personnel, the progression of ascension of employees will depend on specific educational courses in which it is mandatory to study human rights, carrying out regular update of active employees. And the director of the detention center will have to hold a graduate degree or specialization in prison administration.
The sale of products and contracted services will be explored by the administration of the detention center, and the funds obtained shall be transferred to the National Penitentiary Fund, and the prices of the products and services will be fixed by the Judge after hearing the Public Ministry, which shall inspect the sales and services and the destination and investment of the funds obtained.
The State may join partnerships, deals and covenants with the goal of professionalizing the price with SESC, SESI and SENAI.
It is important to stress that the Centers for the Monitoring and Accompaniment of the Execution of Penal Sentences and Alternative Measures to Imprisonment will constitute a sustainable social network, integrated by governmental and non-governmental entities with the objective of offering positions and services necessary to the structuring, monitoring and inspection of the conclusion of penalties and alternative measure to imprisonment. The State will set partnerships, deals and covenants with the Brazilian Bar Association, public and private universities, NGOs in the fields of justice, social development, citizenship and human rights, and with representative entities of the community linked to penal execution, in order to constitute a social network.
The execution of the penalties and alternative measures to imprisonment will be carried out in an integrated, articulate, interactive and inter-institutional manner, with the implementation of social public policies in the fields of health, schooling, professionalization and job and income generation.