Supporters of the new government also say that it will try to make economic reform more palatable to Congress: whereas Mr Mahuad proposed the new exchange-rate regime as part of a package including telecoms and energy privatisation and changes in the labour laws, the new team may try to do things in stages.
So if we have tax reform, lower the corporate tax rate, and require the companies to provide healthcare coverage in exchange for the lower tax rate this really would help.
They include the legacy of high debt and earlier deficits, trade unions that have consistently thwarted reform, and obsolete industries producing goods so shoddy that they would be uncompetitive at almost any exchangerate.