An interview with Dilma Rousseff, Brazil's president-elect

There is no way that you can cut interest rates unless you reduce your fiscal deficit. We are very cautious. We have an objective in mind: that our interest rates be convergent with international interest rates. To manage to get there, one of the most important issues is to reduce the public debt. The other important issue is to improve the competitiveness of our manufacturing and agricultural sectors. It is also very important that Brazil rationalize its tax system.

If you want to bring interest rates down, you must either cut spending or increase domestic savings.

You can't forget about economic growth. You have to combine many things.

What is your plan?

My plan is to continue the trajectory we have followed until today. We managed to reduce our debt from 60 percent down to 42 percent. Our objective is to reach 30 percent of our GDP. I need to rationalize my spending and at the same time have an increase of our gross domestic product that will lead the country forward.

So what do you mean when you say "rationalize spending"?

We are not in a depression here. We do not have to cut government spending. We will cut expenses but continue to grow.

We are following a very special path. This is a moment where the country is growing. We have macroeconomic stability, and at the same time we have great pride in the fact that we managed to reduce extreme poverty in Brazil.

We brought 36 million people into the middle class. We lifted 28 million from extreme poverty. How did we manage to do that? Income-transfer policies. The Bolsa Familia is one of its major examples.

Explain how Bolsa Familia works.

We pay a stipend, which is an income stipend to the poor. They get a card and they withdraw their income, but they have two duties they have to abide by: They have to put their kids in school, and they have to prove they attend 80 percent of the classes. At the same time, children should also get all the vaccines, and they have to go through a medical evaluation when they get their vaccines. This was one factor that was responsible, but it wasn't the only one.

We created 15 million new jobs during President Lula's administration. This year, we have already created 2 million new jobs.