Why the president gets tied down

Brazil has lived so long in its own world that adapting to outside forces involves a profound internal struggle. Vociferous state governors have strongly opposed reforms pushed by the federal government. They wield considerable influence in states bigger than some European countries. Sometimes it seems the governors' independent acts - refuting debts or rewriting contracts - could sink the whole ship or, at the least, scare off foreign investors. Maybe these men aren't as wild as their rhetoric. To find out, Brian Caplen took a closer look at three key Brazilian states and their leaders, in Rio Grande do Sul, Bahia and Minas Gerais

RIO GRANDE DO SUL: Riding with the gaúcho

BAHIA: Have Ford, will travel

MINAS GERAIS: Franco the noisy populist

Turning banks into tax collectors

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Some say the Brazilian state of Bahia boasts three religions – catholicism with its European origins, candomblé brought by slaves from west Africa and ACM, a uniquely Brazilian phenomenon. The initials ACM stand for Antônio Carlos Magalhães, the president of the senate in Brasília, and the strongman whose every word carries weight in Bahia.

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