The article aims to link recent changes in Brazil's political and econ
omic situation with the question of governance in a democratic setting
. It shows that a set of policies are only as good as the political su
pport which enables their implementation. As memories of the economic
nightmare of the past decade fade and the Costs of sustaining price st
ability through needed budget cuts continue to be felt, popular dissat
isfaction with reform is bound to increase. The Cardoso Administration
's incremental strategy of state reform and its step-by-step approach
to crucial human rights issues reflect the conflicting pressures the g
overnment must balance in order to make policy advances. As democratiz
ation increases the autonomous representation of societal interests an
d the structure of Brazilian politics continues to erect legislative o
bstacles, incrementalism seems the most appropriate pace for producing
real, long-lasting reform.