This should aid him in pursuing additional reforms required to correct the country's worrisome fiscal problems, which continue to threaten stability. It should also retain his commitment to attracting more foreign investment to Brazil. The outlook for Argentina is less sanguine. It has yet to emerge from its Brazilian-spawned recession. Mercosur membership has only exacerbated Argentina's travails.
Many multinational companies have since consolidated operations in Brazil as a result.
One survey respondent says his computer manufacturing company will be doing shortly. Argentina's provincial governments may begin offering foreign companies tax and other fiscal incentives to invest locally. Some officials are even threatening retaliation through discrimination in public contract awards against companies defecting to Brazil. Meanwhile, discord over trade in autos, steel, textiles and poultry exports to Argentina continues to fuel tensions. Chile, long a role model for prudent economic policy, was also humbled by recession last year.