Rousseff Cabinet Head Quits to Stump on Brazils Economy

Dilma Rousseffs chief of staff is temporarily leaving office to help the president spread her message on Brazils economy ahead of the runoff vote on Oct. 26.

Aloizio Mercadante, who has a doctorate in economics from the State University of Campinas in Brazil, will start focusing full time on the campaign today, Rousseff told reporters in Brasilia. Rui Falcao, president of the Workers Party and the presidents campaign chief, told reporters at a separate event that Mercadante would take part in the economic debate in the run-up to second-round voting.

Brazils economy has become the central theme in this years national election, as Rousseffs opponent, Aecio Neves, says government policies have helped fuel surging consumer prices and erode business and consumer confidence. A trained economist, Rousseff says Nevess proposals to slow inflation and reduce the size of the state would put at risk jobs and social welfare programs.

Were witnessing opposition between the rich and the poor in the campaign, Rousseff said today. We would do policies for the poor and they would do policies for the rich. This dichotomy is partially true.

Brazils economy slipped into recession in the second quarter as inflation that twice this year breached the ceiling of the target range reduces purchasing power. Rousseff says her policies have pushed unemployment to record lows and that her party in 12 years has lifted about 35 million out of poverty.

Finance Minister Guido Mantega, who today told reporters that economic growth is picking up in the second half of the year, says he wouldnt stay on for a second term if Rousseff wins. The incumbent hasnt identified a possible replacement.

To contact the reporters on this story: Anna Edgerton in Brasilia at aedgerton@bloomberg.net; Arnaldo Galvao in Brasilia Newsroom at agalvao1@bloomberg.net

To contact the editors responsible for this story: Andre Soliani at asoliani@bloomberg.net Randall Woods, Robert Jameson

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Rousseff Cabinet Head Quits to Stump on Brazils Economy