Brazil

During the last century, Brazil was one of the fastest growing economies in the world. Between 1901 and 2000, Brazil's Gross Domestic Product (GDP) per capita grew at... Show More + an average annual rate of 4.4 percent. Brazil's long-run growth has rivaled that of counties such as South Korea, universally praised as a stellar performer. Brazil does not received the same praise. Perhaps one reason is that more has been expected of Brazil, especially by Brazilians themselves. After all the country is richly endowed with natural resources and is blessed with an energetic people. Perhaps is that economic growth in Brazil has been more erratic than in other countries, or it may be that this economic growth performance has been accompanied by high inequality, thus diminishing the "quality" of growth. How is it that the country with the fastest growth in the region also has the highest inequality? Are the two facts related, and if so, what can be done to improve the pattern of future income growth across the social classes, and reduce its extreme inequality and the breadth and depth of its poverty? The first volume summarizes the overall conclusions for policy drawn from the seven background papers presented in the second volume, and other relevant research, as well as giving a historical account of the driving forces behind Brazilian growth since the 1960s. Show Less -

This report is about agriculture in Brazil, the natural resources of Brazil, and the people who live in rural Brazil. It surveys and analyses the policies that the... Show More + government has adopted towards this interactive complex. And it suggests modifications in those policies that would better achieve the goals that the Government wishes to achieve. These goals are: (a) virgorous growth in agriculture; (b) reduction in rural poverty; and (c) sustainable use of natural resources. Brazil has undertaken major institutional and economic reforms over the last few years, many in agriculture and natural resource management. But the process is incomplete and the hard-won gains are in danger of reversal if reforms are not completed. Further, a number of policies put in place in the past have outlived their usefulness or are having unintended side effects that are costly to agricultural growth and rural development. In other cases the type of intervention seems appropriate. This report documents a large number of interventions used by the government to manage agriculture, rural development and natural resource use. It comments on the appropriateness of each and, where appropriate, suggests alternatives. The broad view taken by the report allows it to identify outcomes that cut across the different goals of policy so that interaction between policies and concerns that are systemic can be identified. Show Less -

This report describes the current environment for doing business in Brazil and analyzes the ways in which public policies have affected the private sector's ability... Show More + to develop in an economically efficient way. There has in the past been much to commend these policies. There is now much that is wrong, and this assessment suggests priority areas for government action. The policy framework has changed in the last four decades, and the report takes a partial historical perspective in order to show the cumulative weight of past policies in explaining the current business environment. The progressive development of macroeconomic instability over almost two decades and its debilitating effect on today's business environment is this report's central theme. The analysis also emphasizes the institutions (in particular the legal system) that underpin economic activity in Brazil and the way the financial intermediation has collapsed under the pressure of inflation. The report further looks at the regulatory regime for industrial activities. The choice of topics is selective, reflecting the apparent priorities revealed from discussions and surveys in Brazil. Detailed treatments of the private sector in agriculture and more generally in the poorer regions of Brazil are notable omissions. Show Less -

This report has two main purposes. The first is to define an analytical normative framework within which Bank dialogue with Brazil on municipal policy issues can occur.... Show More + This framework will support the design of policy conditions to be built in municipal development projects. The second is to propose reforms that address the issues - identified by relying on the normative framework - raised by the design of: (a) the institutional arrangements and policy framework for municipal development; (b) the state of municipal financial management; and (c) the impact of institutional and financial management deficiencies on municipal finances and service delivery performance. The practical relevance of the conceptual analysis is illustrated for the cases of urban pollution control and for primary education. Show Less -

This report assesses the major Brazilian taxes and proposes an agenda for tax reform. It shows that the tax base for both direct and indirect tax systems must be restored... Show More + and proposes measures to increase revenue by 2 to 3 percent of GDP in the short run. This is a primary objective of the reform since the solution to the fiscal adjustment will come from a combination of expenditure cuts and revenue increases. In addition to the revenue issue, the reform proposals also address the major structural deficiencies of the tax system: inefficiency, inequity and complexity. The report shows why the systems of direct and indirect taxation suffer from these deficiencies. The report also looks at the major weaknesses of both direct and indirect taxes and proposes recommendations for reform. Show Less -

This report concentrates on the institutional framework of the government's economic role and selected aspects of federal public expenditure. It is the first in a series... Show More + concerning Brazil's public finances. In addition to analyzing the institutional framework for government's economic intervention, and identifying measures to assist the Brazilian authorities with their objective of streamlining the role of the state in the economy, this report recommends specific reforms in several expenditure programs. First, the budgetary process needs to be be improved; it must provide better information to decisionmakers and the public concerning the costs and benefits of proposed expenditures, and greater safeguards from short-term considerations. Second, specific reforms in several expenditures policies are required, including reforms in agricultural pricing and stock management policies, personnel policies, and the Secretariat for Control of Public Enterprises (SEST) pricing and investment policies. Finally, the use of administrative rules and regulations to allocate resources should be reduced and replaced, where necessary, with taxes and expenditures that pass through the budget and are subject to budgetary review. Show Less -

This report assesses Brazil's current macroeconomic situation against the background of recent stabilization attempts--particularly the measures introduced in June 1987--and... Show More + medium-term prospects. Volume I contains the summary and conclusions, and the main text of the report. Volume II contains eleven annexes, including recent developments and prospects on fiscal policy, performance of public enterprises, monetary policy, balance of payments, price flexibilization, wages and investment. An analytical evaluation of the interrelationships among fiscal deficts, monetary policy and inflation is the subject of Annex X. Annex XI provides a taxonomy of short-run stabilization and medium-term structural measures for macroeconomic adjustment. Show Less -

This report is part of the Bank's ongoing economic work on medium-term policy choices for Brazilian economic recovery and development and resulted from a Bank mission... Show More + which visited Brazil during May-June 1984. Recent macroeconomic developments are reviewed, including the 1983-84 stabilization programme, recession and levels of economic activity, inflation, employment and wages, energy developments, balance of payments and external debt and public finance. Short-term and medium-term prospects are examined in the context of two base cases and alternative external scenarios. The report presents perspectives on medium-term strategies for economic recovery and development in the areas of trade, industry, agriculture, energy, public sector management, the financial sector, and employment, and offers suggestions for government reform of export promotion policies, public finance and fiscal policies, and external debt management. Show Less -

After the very rapid growth in the period 1967-74, when GDP growth in real terms averaged 10 percent per year, and per capita incomes registered a gain of sixty percent,... Show More + the growth of the Brazilian economy decelerated considerably in 1975. Severe balance of payments difficulties experienced in 1974 were compounded by a combination of adverse climatic conditions and policy-induced factors in 1975. In spite of this, actual export performance was quite impressive. Intensification of the balance of payments pressure through 1975 brought growing realization that drastic and effective domestic policies were needed to prevent further deterioration in the overall economy even at the cost of growth. Stabilization of the external payments position finally became accepted as a principal short-term objective. While growth and balance of payments prospects for the medium- and long-term hinge on the success of short-term stabilization measures and maintenance of high rates of export growth, the general outlook is favorable. The current account deficit will require substantial external financing, but sound economic management should produce a significant decline in the debt service ratio. Show Less -

Despite an impressive growth rate over the past three years, Brazil remains a poor country with a very unequal income distribution and extensive absolute poverty. The... Show More + government is convinced that the poverty and dualism that afflict the country can be ameliorated only if high rates of growth are sustained, although external factors may necessitate transition to a slower growth rate. Urbanization and industrialization have placed a particularly heavy strain on social and economic infrastructure in Sao Paulo. Investment strategy 1973-75 aims to decentralize economic activity, and programs have been designed to broaden distribution of the benefits of economic growth, particularly in education, housing, and sanitary services. Regional development programs are heavily oriented toward transport infrastructure and provision of credit to commercial agriculture and agroindustry. Rapid regional growth should continue, but unless high levels of investment are sustained, population pressure will outstrip gains. Volume III discusses Sao Paulo in detail. Show Less -