Brazil's President-elect Luiz Inacio Lula da Silva hailed the outgoingpresident today for initiating an unprecedented transitionof power which could prove key to the success of the country'sfirst elected left-wing administration.
Kicking off the transition of power after his watershedvictory in a presidential election runoff on Sunday, Lula metwith President Fernando Henrique Cardoso to ensure a smoothhandover at a time of financial turmoil.
After the meeting, Lula, as he is known universally inBrazil, announced that his Workers' Party's government programcoordinator Antonio Palocci would head a team to establish thenew administration ahead of the January takeover.
"I think the moment we are living has to be unique in LatinAmerica's political history," Lula said in his first statementfrom the presidential palace since winning the elections.
"And who knows if this lesson will not remain forever forthose of us who have seen ministers and rulers leave by theback door in order not to receive the elected one," said theformer union leader.
Lula's warm thanks to Cardoso for helping the transitionunderlined the significance of this transfer of power in acountry whose turbulent political history is pot-marked withmilitary interventions and unfinished presidencies.
Since Brazil's return to democracy in 1985 after twodecades of dictatorship, only one president - Cardoso - hasseen out his rule normally. One died, while another resignedwhen faced with possible impeachment amid a graft scandal.
This will be only the second time in the history of LatinAmerica's largest country that one elected president hands overthe presidential sash to another.
A smooth transition from Cardoso's eight-year rule is alsocrucial to ensure that Brazil's delicate economy returns torobust growth after months of turmoil in financial markets overthe prospect of a left turn in the country.
Markets were eagerly expecting the announcement of moremembers of Lula's transition team, in the hope of learning moreabout his government's likely economic policies.
But stocks and the currency were higher after the CentralBank managed to sell $951.5 million in dollar-linked domesticdebt just a week after the bank was unable to roll over debts.
Lula has promised to calm financial jitters in the world'sninth largest economy by honoring debt commitments and keepinglow inflation policies, in addition to pushing for swiftchanges to Brazil's cumbersome tax and public pension systems,which have long been desired by investors.
After Sunday's win he also pledged to quickly address thegaping social divide in one of the world's most unequalsocieties. He is planning to create a special secretariat toaddress the plight of Brazil's 50 million people who live belowthe poverty line.