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A silver lining lightens Brazil's gloom

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Luiz Inacio 'Lula' da Silva has big plans for his country: He wants it to have a permanent seat on the United Nations Security Council and sees it as one day being the leader of a united South America.

Given Brazil's setbacks in recent months, such ideas may seem far fetched. But keep in mind they come from a man who rose from abject poverty to the presidency.

Lula, as Brazilians popularly know him, does not give up easily. He became president on his fourth attempt and is confidently looking to re-election in October.

Some observers may think he is being overly optimistic in light of the series of domestic and foreign challenges of late. Little would seem to be going his way at a crucial time in his political career and as he is trying to assert his country's influence internationally.

Brazil's problems have been exposed over the past week by clashes between gangs and police in the nation's biggest city, Sao Paulo. Lawlessness, trigger-happy police, racial intolerance and the wide gap between rich and poor were highlighted by the world's media. There could be no worse publicity for a nation trying to portray itself as a model of stability and an attractive destination for foreign investors.

Overseas capital is much needed to improve the development prospects for South America's most populous country and biggest economy. Brazil is looking towards a GDP growth rate this year of about 4 per cent, a sluggish figure for a developing country with 180 million people.

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