Brazil's political crisis has claimed the scalps of the presidency's hard core of advisors. It has also forced the most momentous reshuffle in government since Luis Inacio Lula da Silva since Silva came to power. Even finance minister Antonio Palocci, one of Lula's closest allies, is feeling the heat. Here, Emerging Markets profiles the other key players in Lula's overhauled inner circle.
Murilo Portugal, "Dr No"
Formerly a country representative at the IMF, 56-year-old Murilo Portugal was called back to join Lula's government earlier this year as executive secretary of the finance ministry. Number two to Antonio Palocci, he is a reassuring figure as far as financial investors are concerned. Spendthrift Portugal calls himself a public servant who has served for all governments over the past three decades. But it's certainly in his capacity as treasury secretary in the 1990s that he became most famous. A ministerial colleague nicknamed him "Dr No" at the time due to his tough stance on public spending. Portugal believes that Brazil is now on its way to reaching investment grade status by 2007 as long as the right mix of policies is kept in place.
Joaquim Levy, the treasurer
Sharp and soft spoken, Joaquim Levy, 44, also worked with the previous government. A Chicago trained economist, he became deputy secretary of economic policy at the finance ministry in 2000 and chief economist at the planning and budget ministry in 2001-02. He was then appointed treasury secretary in the current administration. He has an excellent working relationship with Portugal, who praises his extraordinary working capacity. Levy is also well versed in international finance after several years at the Fund and the European Central Bank. Under his tenure, the Treasury has gained more power to coordinate Eurobond issues in the international capital markets, in coordination with central bank officials.
Henrique Meirelles, the banker
Henrique de Campos Meirelles, 60, was a well-known figure in international banking circles for decades before he assumed the presidency of the central bank in 2003. Before that, he experienced a short interlude as a politician. In October 2002, shortly after retiring from FleetBoston (where he was heading the Latin American operations), he was elected member of the house of deputies for the social democratic party (PSDB) of former president Fernando Henrique Cardoso. Nevertheless, he later accepted Lula's invitation to head the central bank, which enjoys some sort of autonomy but is not officially independent from the government. Meirelles has since been a staunch defender of tight monetary policies to keep inflation in check, according to pre-determined inflation targets.
Dilma Rousseff, "iron lady"
The former guerilla activist became Lula's new civil chief-of-staff in the course of the political crisis. A very competent and determined politician, the 57-year-old Dilma Rousseff's often tough stance is well known to investors in the energy sector. She was mines and energy minister until recently. In this capacity, she put in place the new regulatory model for the electricity sector and fended off widespread criticisms of state interventionism from private companies. Dubbed "Auntie Dilma" by sympathetic politicians, such as the governor of Parana, Roberto Requiao, she is rather known as "the iron lady" by most observers in Brasilia. Her task is to deliver bureaucratic efficiency to the government team.
Luiz Dulci, the faithful soldier
Fifty-year-old Dulci was secretary-general of the Workers Party (PT – created by Lula 25 years ago) before he became secretary-general of the presidency. Besides Palocci, he is the only member of the inner circle of presidential advisers who has survived the changes provoked by the recent wave of corruption allegations. He has also gained in influence. A former Portuguese teacher and union leader, his style is discreet but he enjoys the boss's confidence.
Jaques Wagner, the articulator
The minister of institutional relations is also a close political ally to the president. Jaques Wagner, 54, has the unenviable task of restoring order between an embattled government and a discredited Congress, with the help of a nearly bankrupt Workers Party. He has been a member of government from the start of Lula's tenure, but he has also gained more influence due to the corruption crisis. He was first appointed labour minister, then president of the Social-Economic Development Council, a non-elected assembly of business leaders and civil society representatives created to formulate public policy.
Guido Mantega, Lula's first economics teacher
This 54-year-old son of Italian immigrants is now president of the Social and Economic National Development Bank (BNDES). But for a long time, when Lula still looked like the investors' bogeyman, Mantega was "the PT with a human face" who showed up at international meetings such as the one held by the IDB or the IMF.
A former economics lecturer and state interventionist, he has long been Lula's close economic adviser, although he has lost some influence since Palocci assumed the finance ministry.
Luiz Fernando Furlan, the business leader turned minister
The former chairman of Sadia, Brazil's leading poultry exporter, is the most prominent business leader in the government team. Furlan acts as a sort of spokesman of the trade community in Brasilia and has won Lula's trust. His criticism of the Central Bank's tight monetary policy are well known, but he is otherwise regarded as an unrepentant optimist. He has been running the Development, Industry and Foreign trade ministry very successfully, with double digit growth in exports every year. Furlan, 58, who has been a regular participant at the World Economic Forum and other international gatherings for years, always says he does not intend to become a politician. If he does return to the business arena one day, he will certainly boast one of the best address books in the market.