apital investment (Burbach, 1998; Paradox, 2000). This immediately put curbs on rampant inflation and enabled "ordinary working people . . . to undertake a minimum of financial planning in their lives" (Burbach, 1998, p. 20). Cardoso was first elected president of Brazil on the strength of the Real Plan and a high-profile commitment to wide-ranging free-market reforms. During his first term Brazil became the de facto managing partner of the South American common market, Mercosur.
Once in power, Cardoso moved to open up Brazil's economy and align it with the forces of globalization. Tariffs, duties and taxes were cut, state-owned enterprises were sold off, social spending was slashed and interest rates were raised to draw in foreign capital. While there was some public discontent over the rollback in social expenditures, particularly in the areas of health and social services, public support for Cardoso remained relatively strong because of the monetary stability and the country's economic growth, which held steady at a modest annual rate of 3-4 percent aft
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