"For nations like Argentina, Uruguay, Paraguay and other South American countries in a more turbulent and fragile state than Brazil, what we are doing could be a lesson for people to believe it is possible to live together democratically amid diversity," Lula told more than 100 people including some of Brazil's most important bankers and business leaders. The meeting was expected to lay the foundation for a non-governmental economic and social development council that will debate and then advise Lula's left-wing administration. 

The social pact -- which his advisors described as a commitment to negotiated solutions -- was one of Lula's main campaign pledges before his sweeping victory on Oct. 27.  "Even though it is an advisory council, this could turn into an institution capable of producing a number of solutions that Brazil has never before been able to produce," Lula said. Lula has also searched for consensus in Congress, where his Workers' Party will need support to pass legislation. 

He is near to a deal with the Brazilian Democratic Party, or PMDB, and, after a meeting in Brasilia, the centrist Brazilian Social Democratic Party (PSDB) of outgoing President Fernando Henrique Cardoso promised to act as a constructive opposition. 

Brazilians Expect "Great" Government 

The pressure on the former union leader to make good on his promises is great. A survey by the Sensus institute released on Thursday found that 70 percent of the 2,000 people polled expect Lula's government to be "good" or "great," and foresee improvements on key campaign issues such as unemployment, corruption and sky-high interest rates. 

Topping Lula's agenda are reforms to Brazil's tax and labor systems, that should cut corporate costs and revive the stagnant economy, and a program to fight against hunger. Business leaders appeared optimistic about the council's ability to recommend solutions. "If we can agree on 60, 70 percent, then certainly we'll be able to create a solid base for the future," said Luiz Fernando Furlan, president of Sadia, a major poultry exporter. 

Meanwhile, financial markets have been itching for clues as to whom Lula will appoint to his cabinet, especially to the crucial posts of finance minister and central bank president. Lula said he would not be pressured into naming his ministers until he is ready. "I want to name my cabinet without pressure to make sure the right people are there," he said.