Back home though, the petistas - members of Lula's Workers Party (PT) - are still waiting for the president to stand up to the International Monetary Fund. Despite his rhetoric, he has presided over huge cuts in public spending and worsening living conditions.
Last year average wages fell by 7 per cent. Unemployment, meanwhile, is now running as high as 28 per cent in cities such as Salvador. Yet Lula has prioritised debt repayments, which account for a colossal 10 per cent of economic output.
Inevitably, there have been protests from within the PT. They prompted the party leadership to take action in December. Three petista congressional deputies and one senator, the highly respected PT founding member Heloisa Helena, were expelled from the party. Their "crime" was opposing pension-reform legislation demanded by the IMF; the legislation was designed to open up Brazilian pension funds to privatisation and slash workers' benefits.
Lula, who missed the meeting that voted for the expulsions, argued that the legislation provided a solid basis for the rest of his government. Helena countered that she had not spent her life working for the PT in order to cut workers' pension rights when in power.
The government was rattled by the ensuing storm of criticism. Even Leonardo Boff, a popular, radical Franciscan friar, expressed solidarity with Helena, whom he described as "my little sister, who was not afraid". As a result, Lula has been forced to adopt a more radical tone in public.
All over Brazil, petistas have been discussing their options, and, while most have decided to stay in the PT, they are pressing for a change in direction. "This is the year we begin to change Brazil" is the new catch phrase. There is a sense of grass-roots excitement in the air.
Forthcoming municipal elections in October give the government an incentive to act on numerous initiatives - agrarian reform, the zero-hunger programme, income support for the poorest, education. With his speech in Mexico, Lula showed that he can talk the talk. Now he must walk the walk.
Back to Rio Sue Branford looks at Brazil’s unsustainable development – and the potential for a new direction
Lula’s legacy Sue Branford asks what Lula has delivered in his eight years in power
An exception to Lula’s rule The movement of landless workers in Brazil is unique in resisting co-option by the Lula government and has retained an impressive self-reliance and independent politics. For Sue Branford it is a beacon for the left worldwide. Here she explains why
February 15, 2003: The day the world said no to war Phyllis Bennis argues that while the day of mass protest did not stop the war, it did change history
Egypt: The revolution is alive Just before the second anniversary of the Egyptian revolution, Emma Hughes spoke to Ola Shahba, an activist who has spent 15 years organising in Egypt
Workfare: a policy on the brink Warren Clark explains how the success of the campaign against workfare has put the policy’s future in doubt
Tenant troubles The past year has seen the beginnings of a vibrant private tenants’ movement emerging. Christine Haigh reports
Co-operating with cuts in Lambeth Isabelle Koksal reports on how Lambeth’s ‘co-operative council’ is riding roughshod over co-operative principles in its drive for sell-offs and cuts in local services
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