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Brazil
>> Regional Overview >> Brazil Overview
Development Challenge Summary Tables
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 199734
Introduction
Brazil's importance to the United States continues to increase, with the year 2000 witnessing strengthened U.S./Brazil collaboration in such areas as trade and technology, and consolidation of its position as a key strategic partner in Latin America in the political and economic arenas. Brazil's economy grew 4.2%, pushed by a 4.8% expansion in the industrial sector, a remarkable recovery in light of the 1998-99 recession, the devaluation of the Real, and the country's high fiscal deficit. The United States is Brazil's largest trading partner, receiving 24% of Brazil's exports and supplying 23% of Brazil's imports. Foreign direct investment in 2000 totaled $30.6 billion, the U.S. being the second largest investor with $5 billion. Brazil is of critical importance to the United States, because of such issues as the global effects of environmental degradation its rainforests, which house one of the major stocks of the world's biodiversity; and the spread of infectious diseases, such as HIV/AIDS, dengue, malaria and tuberculosis (TB). USAID is prepared to implement a program, which more closely deals with trade, growth and development.
The Development Challenge
In spite of economic progress, severe social problems persist: poor income distribution, social spending inequality, racial discrimination, to name but a few. The economic divide among Brazilian states has increased over the last five years: annual per capita income of the poorest state, Maranhão, is $728 while in São Paulo, the richest state, it is $4,833. The poor North/Northeast provided only 17.5% of the Brazilian GDP in 2000, while the Southern/Southeast accounted for 64%. The year 2000 saw the Government of Brazil (GOB), international donors, foundations and civil society engaged in debate on social spending inadequacy. Brazil has invested about $100 billion/year in the social area over the past five years, but 35 million people live below the poverty line. Of that total, 13% reaches those most in need, while most investments in education, health and social security goes to the middle class and wealthy. The GOB recently launched the $6 billion Alvorada Project to eradicate poverty in the 60 poorest municipalities by providing such services as health care, running water and education. Reducing such inequities tops the GOB's priority list. Supporting this effort through increased participation of civil society, while focussing primarily on global issues, is the core of USAID's development challenge in Brazil. Brazil is current on payments on its $230 billion official foreign debt. In 2000, approximately $50 billion were spent on debt service. Brazil has consistently strong export earnings, and increasingly prudent and responsible fiscal and monetary management. Its debt service requirements will not affect either its USAID program, nor in the foreseeable future, its relationship with the multi-lateral lenders.
USAID's strategy contributes to achievement of Agency goals 4 and 5 - "Stabilize World Population and Protect Human Health" and "The World's Environment Protected for Long-Term Sustainability," respectively. Given the scope of global problems that could potentially be addressed, the Mission has chosen to concentrate on protection of globally important biodiversity and reduction of Green House Gases (GHGs) associated with Global Climate Change (GCC); and on support for HIV/AIDS prevention and services to at-risk children. USAID phased out its reproductive health assistance in 2000, bringing it to a successful conclusion and producing and disseminating a final report on contribution. USAID's program is key to the Embassy's Mission Performance Plan's (MPP) strategic goals of Broad Based Growth, Open Markets, Democracy, Environment, and Population and Health.
Brazil's main challenges in addressing global environmental priorities are reducing biodiversity loss and the GCC threat by reducing GHG emissions in the land use and energy sectors. USAID activities promote sound land use in the Amazon, Atlantic Coast Rainforest, Cerrado and Wetlands. USAID's environment program seeks to leverage resources with those of NGOs, industry, multilateral banks, cooperatives, universities, and government agencies, allowing USAID to play a catalytic role in Brazil's climate change and biodiversity efforts. Energy industry restructuring has created a welcoming environment for USAID's Clean and Efficient Energy initiatives, and since the sector has moved toward deregulation, energy prices and demand for efficiency and renewable energy have increased. The GOB is interested in concentrating its climate change efforts on energy. In FY 2000, USAID approved a Development Credit Authority (DCA) loan guarantee for the installation of a waste-wood biomass co-generation plant, to demonstrate how renewable energy projects can be economically viable. A proposed federal bill mandates that power distribution utilities include renewable energy sources in their power purchases, which will result in future benefits such as reductions in CO2 emissions.
Another challenge is reducing HIV/AIDS transmission rates. About 52% of reported AIDS cases in LAC are in Brazil. Of these, 220,000 are estimated to be low-income women who acquired the disease through heterosexual transmission. USAID's strategy is designed to increase sustainable programs to prevent sexual transmission of HIV in target groups, including women, adolescents, and low-income populations. Technical assistance targets NGOs working with the Ministry of Health's National AIDS Coordination unit and aims at leveraging resources from the World Bank AIDS II loan. In FY2001, we will also target TB as it relates to HIV/AIDS patients.
Additionally, USAID is assisting at-risk children and youth to improve their lives. USAID's program targets street, impoverished and working children, emphasizing access to basic/vocational education, prevention and eradication of the worst forms of child labor, and awareness of health-related risk behavior. USAID supported the Brazilian government in the development of a five-year National Plan to Prevent Sexual Exploitation of Children and in implementation and monitoring of a Sentinel Surveillance Program, creating services to combat sexual violence against youth.
Other Donors
In FY 2000, the IBRD invested $58 million in environment and energy and $166 million in water and sanitation. Also investing in environment: UNDP, $33 million; EU, $55 million; the United Kingdom (U.K), $6 million; and Canada, $3 million. In the social area, the IBRD invested $160 million in education; Canada $5.5 million in health and education; U.K., $1.2 million in health; and UNICEF, $4 million in education. USAID is currently the major bilateral donor in HIV/AIDS.
FY 2002 Program
FY 2002 funds will continue our engagement through Brazilian and U.S. NGOs and contractors and USAID's continued engagement on foreign policy issues: Summit of the Americas' goals; global issues; and the U.S./Brazil Common Agenda. The environment program will concentrate on establishing a scientific basis for sustainable Amazonian resource use for U.S. and other stakeholder regional concerns; fire prevention will be a top priority. USAID actions will strengthen partnerships with Brazilian energy regulatory agencies to ensure policies and regulations are in place that facilitate access to clean energy sources and efficient use of energy, while also facilitating transfer of technology. Development Credit Authority (DCA) projects will allow increased collaboration with the private sector in renewable energy initiatives that increase access for energy of millions of unserved families.
USAID will address two of Brazil's most pressing public health problems: HIV/AIDS and TB. The AIDS epidemic and the consequent rise of infectious disease rates, including TB, affects the most impoverished. The GOB is addressing the disease through a model program but, due to the country's size, international support is needed to continue implementing this program. FY 2002 funds will fund AIDS prevention activities for women, adolescents and high-risk groups, provide improved responses to cross-border transmission, and support GOB implementation of a national HIV/AIDS surveillance system. USAID's successful At-Risk Youth Program has developed innovative approaches to remove children from the streets, reconstruct family ties, rehabilitate victims of sexual exploitation and abuse, and increase access to formal, non-formal and vocational education. FY2002 funds will ensure that USAID's efforts to improve the ability of at-risk children and youth to become productive, healthy citizens are documented, disseminated and replicated beyond target areas with other donor and GOB resources.
Activity Data Sheets
- 512-001 Environmentally and socioeconomically sustainable alternatives for sound land use adopted beyond target areas
- 512-002 Increased adoption by key actors of concepts, methods and technologies for clean and efficient energy production and use
- 512-003 Increased sustainable and effective programs to prevent sexual transmission of HIV among major target groups
- 512-005 Improved Ability of At-Risk and Working Children and Youth to Become Healthy, Productive Citizens
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: February 12, 2003 |
