Despite doubts, business leaders rally around rightist

SAO PAULO — Business leaders and financial markets in Latin America’s largest economy are shaking off their misgivings to coalesce around the candidacy of poll leader Jair Bolsonaro, a retired army captain who has repeatedly said he doesn’t understand the economy.

For many Brazilians, Bolsonaro’s candidacy in Sunday’s vote has long provoked fears because of his penchant for waxing nostalgic about the country’s 1964-1985 dictatorship, along with his steady stream of derogatory comments about women, blacks, indigenous peoples and gays. For their part, industry leaders worried about what they saw as a big-government, populist streak in past statements and his voting record.

The growing move by the business community to essentially hold its nose is being driven by factors ranging from Bolsonaro’s decision to name a respected banker as head of his economic team to fear about a return of the left-leaning policies of the Workers’ Party.

Bolsonaro leads polls in the crowded 13-candidate field followed by Workers’ Party candidate Fernando Haddad, who is likely to face him in an Oct. 28 runoff.

“For the markets, Bolsonaro is not a dream candidate, but he represents less risk than Haddad,” said Gilberto Braga, a finance professor at the business-oriented Ibmec university in Rio de Janeiro.

Some are skeptical that Bolsonaro truly represents less risk for the economy, or other aspects of society. Besides divisive comments, some of Bolsonaro’s proposals, such as cracking down on crime by giving freer rein to already-violent police forces, are sending shivers through many communities. He has promised to fill his cabinet with current and former generals, raising the specter of a de facto military government. Historically, leaders of such governments in many countries have increased state control of the economy, not reduced it.

“The one person who is actually most likely to turn Brazil into Venezuela is Bolsonaro,” said Monica de Bolle, director of Latin American Studies at Johns Hopkins University.

In recent months, stock markets have surged and the Brazilian real has gained strength against the U.S. dollar each time Bolsonaro’s candidacy has appeared to gain strength. Several polls show Bolsonaro gaining more than 10 points since Sept. 6, when he was stabbed and hospitalized while campaigning.

He now commands 35 percent of voter support compared to 22 percent for Haddad, according to a Datafolha poll published Thursday. The poll interviewed 10,930 voters on Wednesday and Thursday and had a two percentage point margin of error.

Mauricio Savarese and Peter Prengaman are Associated Press writers.