Brazil Must Stand for Western Ideals on Global Stage, Fraga Says

(Bloomberg) -- Brazil must be clear in its alignment with Western ideals of democracy and human rights on a divided global stage, said Arminio Fraga, a former head of the nation’s central bank and founder of Gavea Investimentos.

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The country’s strategy of trying to be nice to everyone isn’t sustainable, Fraga said on Wednesday at the Bloomberg New Economy at B20 in Sao Paulo. While it’s good for Brazil to trade with countries around the world, its core positions should still be clear, Fraga said.

“We’ve shown over the years some dubious taste in people we hang out with, people we take pictures with,” Fraga said. “I think we must have very clearly in our minds that we are a Western country.”

Brazil’s government and President Luiz Inacio Lula da Silva have faced criticism for not doing enough to pressure Nicolas Maduro following Venezuela’s disputed elections in July. Lula has advocated for a diplomatic resolution after years of arguing that the sanctions-heavy campaign waged by the US disproportionately hurt ordinary citizens in that country.

Speaking on the same panel, Stefan Simon, Americas CEO & Member of the Management Board at Deutsche Bank, said the world is back to “pre-WTO times” on politics and trade.

The challenge now, Simon said, is to navigate geopolitical challenges in a more divided world, to understand what the risks are and be able to “move fast.”

As a long-time investor in Latin America, Simon added the bank is “very positive” on the region.

DISCLAIMER: New Economy at B20 is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.

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