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Love for Lula on outside, inside strife

By CARMEN GENTILE, UPI Latin America Correspondent

SAO PAULO, June 4 (UPI) -- The president of South American's largest nation finds himself mired in internal strife that could jeopardize his ambitions for widespread reform, despite having the support of nearly eight in 10 Brazilians.

A poll released Tuesday gave President Luiz Inacio Lula da Silva a 78 percent approval rating. The high marks for Brazil's leftist leader -- the nation's first in almost 40 years -- are an improvement of more than four points since last month.

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The former metal worker and union leader also received majority support for his administration with a 51.6 percent approval rating in May, up from 47.7 percent in April and extending the high he has ridden since his Jan. 1 inauguration.

The president has won some significant battles in the last six months that have garnered praise from voters from across the entire political spectrum, from the vast impoverished populace to the wealthy elite.

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Making the most of his coalition government, which one Lula official characterized this week as "center-left," the president's Workers' Party, known as the PT, has managed to implement its first priority well before 100 days in office.

Known locally as "Zero Fome" (Zero Hunger), the hunger eradication program -- which intends to feed some 40 million impoverished Brazilians of a total population of 176 million -- has been widely praised by its beneficiaries and received condemnation from international leaders despite a smaller start than initially expected. Nevertheless, neighboring Argentina and its new President Nestor Kirchner have even said they would attempt to implement their own version of Zero Fome in that economically embattled nation.

On the economic front, Lula has impressed investors at home and on Wall St. with his seemingly conservative economic outlook, having raised interest rates several times in recent months to stave off inflation, thereby contributing to the reduced risk rating for the continent's largest economy and bolstering its currency, the real.

Since assuming office, the real has made serious gains, from nearly four to every dollar, to a closing Wednesday of 2.91. The improvement has also impressed IMF officials who give Lula's economic team high marks for its austerity moves amid a global downturn that has hampered the world's 9th largest economy, a stark contrast to Argentina's decision in 2001 to default on billions of dollars in foreign debt.

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Yet success with the people appears to have come at a price for Lula. Officials in the PT -- including his own vice president -- have been particularly critical of the president.

Vice President Jose Alencar, a wealthy textile magnate who was added to Lula's ticket to appeal to Brazil's big-business owners, criticized Lula and his Finance Minister Antonio Palocci for giving the Central Bank too much autonomy amid growing concerns of economic deflation caused by high interest rates.

"We needed political decisions; there are decisions to be made that are not for an economist to make," said Alencar this week while Lula was in Geneva Switzerland attending the G8 summit regarding the lowering of interest rates to stimulate the country's economy. "It is a decision for politicians, to be made in the political sphere," he added.

Lula reportedly met with his second in command to ask him to tone down the critical rhetoric, though both leaders did not speak to the media after the meeting.

The president faces yet another, more difficult internal battle with a segment of PT officials known dubiously as "radicals" for their criticism of the president's policies thus far in his administration.

Led by the outspoken Sen. Heloisa Helena, the radicals allege that Lula has steered the PT away from its left-wing labor roots by pandering to the economic interests of the wealthy and international bodies like the IMF.

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But their mischief-making goes further than just harsh words for Lula. The radicals have also voted against official party lines which has led a PT ethics committee to investigate whether they should expel the defiant leaders from their ranks.

In Brazil, alliances among the country's more than 20 political parties are vital and internal party unity is crucial to pushing through any agenda in the fractured Congress.

The PT needs as much support as possible as it attempts to promote in Congress a widespread reform proposal that would alter Brazil's political, economic, social and even judicial landscape.

PT leader Jose Genoino has characterized the ongoing criticism of the party by the radicals as a "low blow" in an effort to portray the radicals as a detriment to the nation's well-being as it attempts to win public support for the changes.

While the public opinion polls show that Lula is still riding high with the voters, there are signs that the honeymoon might be winding down.

Ironically enough, the president suffered from his first bout of public discontent while addressing what should be his strongest backers -- union activists -- who heckled the president as he spoke to them.

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"We will make the Brazilian economy move, grow again and generate employment. We will make the necessary reforms for this country," said Lula to union members, eliciting pessimistic catcalls at the president's pledge.

The politically nimble Lula, however, appeared to take the criticism in stride saying that the criticism was "healthy" and as "important as the applause."

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