Brazil

The Executive Directors approved the Brazil - Third Minas Gerais Development Partnership Development Policy Loan, or DPL Project to the State of Minas Gerais, Brazil... Show More + in the amount of US$450 million on the payment terms and conditions set out in the President's memorandum. Directors expressed broad support for the Development Policy Loan, which is aligned with and closely linked to the objectives of the Brazil Country Partnership Strategy, or CPS, 2012-2015. Directors highlighted the importance of closely monitoring program results and the State's fiscal situation, given its high vulnerability to reductions in commodity prices. Staffs were urged to ensure that the operation will benefit the poorest regions of the State and foster more jobs for youth. Directors also called for dissemination of the lessons learned from its successful reform to other client governments, both inside and outside Brazil. Directors noted staff efforts to provide support to Brazil through a large number of sub-national DPLs, and in this regard called for an assessment of lessons learned. Directors also noted efforts to support improvements in environmental management and climate change mitigation policies. Show Less -

Brazil has made considerable progress toward macroeconomic stability since reform measures began to take hold in the early 1990s, and its economy has produced stronger... Show More + growth as a result an average of 2.5 percent annually over the past decade. This study provides a broad, cross-sectoral analysis of Brazil's capacity for producing knowledge and innovation. As such, it moves beyond the traditional recommendation that is, builds a stable macroeconomic environment and business-friendly physical and policy infrastructure and instead seeks a more comprehensive approach. The fact is that Brazil has delivered some important successes with efforts to develop innovation in agriculture, aerospace and energy. But like other middle-income nations, it is discovering that it must re-evaluate its education system, its information technology infrastructure, and its policy framework for encouraging innovation to ensure that its economy as a whole is growing fast enough to keep up with the global competition while also guaranteeing progress in its fight against poverty. This study was developed in close consultation with Brazilian government and civil society leaders, who are deeply engaged with the question of how to foster innovation and greater economic competitiveness. Indeed, the breadth of the support for this study is a testament to Brazil's pragmatism and perseverance in pursuing more robust growth. It is also a welcome reflection of its continually evolving relationship with the World Bank. Today, Brazil has emerged as a leader of efforts to build South-South cooperation. In this role, it can set an important example for other middle-income nations and act as a bridge between the northern and southern hemispheres. Show Less -