In the wake of the extreme polarization that led to the January 8, 2023, coup attempts in Brazil, economist and former Central Bank president Arminio Fraga released what he termed a 'brief liberal-progressive manifesto.' This document, published twenty days after the invasion of the Plaza of the Three Powers, argued for the necessity of combining democracy with capitalism, proclaiming it as the sole viable path for Brazil's development. Fraga emphasized that while both democracy and capitalism are imperfect, they remain the best arrangements formulated in their respective realms.

Fraga's manifesto highlighted the fragility of liberal democracies, noting their historical success in fostering prosperity, freedom, and the well-being of citizens. He warned against the dangers of transitioning to plutocratic and autocratic regimes, where power becomes concentrated either in the hands of a wealthy few or through populist measures. This ideological stance reflects a clear concern for the future political landscape of Brazil, hinting at potential threats that could undermine democratic institutions.

In his argument, Fraga called for a synthesis that focuses on economic growth alongside reducing inequalities. He asserted that there is no viable path to prosperity without inclusiveness, suggesting that addressing economic disparities is vital for sustaining democracy. His views resonate within a broader context of Brazil's economic and political challenges and offer insights into possible directions for policy development that could counter the rising tide of authoritarianism and social discontent.