Brazilian President Lula kicks off re-election bid

Brazilian President Luiz Inacio Lula da Silva formally declared last night he would campaign for a second term in October's election…

Brazilian President Luiz Inacio Lula da Silva formally declared last night he would campaign for a second term in October's election, which polls indicate he will likely win.

Speaking at a convention of the Workers' Party, which he helped found 25 years ago, Mr Lula promised to intensify his fight against poverty and steer the economy through an unprecedented period of stability and growth.

"I am once again a candidate to build on what is going right, correct what went wrong, and do lots of things I didn't have time to do," Mr Lula told hundreds of chanting delegates waving flags emblazoned with the party's red star.

His conservative economic policies have won praise on Wall Street but irked longtime leftist allies who say the government should spend more to assist the one-third of Brazilians who live in poverty. Mr Lula wants Brazil, Latin America's largest country, to be a global player. Washington views him as a pragmatic alternative to leftist presidents like Bolivia's Evo Morales and Venezuela's Hugo Chavez.

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"Brazil today is more respected internationally, and, if we stay on the right path, we can consistently boost our role in the world," he said.

Polls show the 60-year-old incumbent will likely defeat Geraldo Alckmin, the former governor of Sao Paulo state, by a wide margin. Mr Alckmin is campaigning as a capable administrator and enjoys the support of many business leaders.

Despite a corruption scandal that has damaged his party, Mr Lula remains popular - helped by his charismatic appeal, an improving economy, a higher minimum wage and a program that provides food, money and healthcare to poor families.

Mr Lula cited a laundry list of accomplishments he says he made, such as broadening access to higher education for the poor, creating jobs and paying off billions of dollars in debt to the International Monetary Fund ahead of schedule.

He did not outline any major crime initiatives despite bloody clashes last month between police and gangs in Sao Paulo that killed about 200 people and focused national attention on violence on the country.

Mr Lula appeared upbeat, but the convention capped a difficult year for his Cabinet and party. They were dogged by allegations of vote-buying in Congress, siphoning public money to fund the party and soliciting bribes from businessmen.

The scandals forced his two most powerful aides to resign. About three dozen congressmen, including several from Mr Lula's party, were linked to the scandals even though party members denied the allegations.

Even if he wins the election, Mr Lula may struggle to patch together a coalition in Congress to pass reforms. And analysts say the Workers' Party, its credibility tarnished, could have a hard time holding onto congressional seats it won in a 2002 landslide.