Brazil

In response to the Great Recession of 2008, many national governments implemented fiscal stimuli packages in 2009 and 2010 to prevent further declines in aggregate demand... Show More + and to jump start their economic recovery. Where subnational governments responded with fiscal contraction, as in the United States, the impact was muted; where states/provinces also expanded expenditures, as in China and India, the impact was magnified. Increases in recurrent expenditure, which were made in Brazil and India, acted as short-term stimulants; additional public investment, as in China, appears to have had a more lasting impact on growth. Large developing countries typically exhibit high interregional inequality in levels of development and global integration, resulting in differential magnitude and timing of the crisis impact. For example, coastal states in India were affected more severely and quickly than landlocked states; revenue moved in opposite directions in the two types of state in 2009. Where fiscal stress varies widely across subnational entities, central transfers alone cannot prevent pro-cyclicality of subnational fiscal response to a recession. There is need for flexibility in subnational borrowing within a sustainable fiscal framework. Many Indian states were able to maintain or accelerate their spending thanks to the additional borrowing permitted in 2009 and 2010. In comparison, limited borrowing capacity and lack of flexibility in federal grants restricted the contribution of Brazilian states to fiscal stimulus. Legal prohibition of subnational borrowing induced China's provinces to finance additional investments through extra-budgetary borrowing by nongovernment entities, with significant fiscal risks on account of contingent liabilities. Show Less -

This case study summarizes the responses to the questionnaire on The Nuts and Bolts of the Program Expanding Health Coverage to the Poor, developed within the framework... Show More + of the World Bank's UNICO - Universal Challenge Program. By so doing, it assesses the key features and the achievements and challenges of Brazil’s Primary Care Strategy (PCS) and analyzes the contribution of this strategy to the establishment and implementation of universal coverage. Section 2 provides context for the discussion by summarizing key reforms and the impact of the PCS and describes Brazil’s health care delivery and financing system. The institutional architecture and interaction of the health care program (HCP), in this case the PCS, is discussed in section 3. Sections 4 through 8 outline the main features of the strategy, including the identification and targeting of beneficiaries, management of public funds, services covered, and the information environment. The case study concludes with a discussion of lessons learned (section 9) and the pending agenda (section 10). Show Less -

For many years, Rio de Janeiro has held the dubious distinction of being one of the world’s most beautiful cities, and at the same time, one of the most dangerous. This... Show More + report is the story of Rio’s attempt to break with history and establish a new kind of state presence in its favelas. This report documents how life in the favelas is changing as a result of the Police Pacification Unit (UPP) pacification effort, as seen through the eyes of favela residents themselves. This study used a qualitative, case-study approach and consisted of observations, focus groups, and key informant interviews in four favelas. The study fits into the broader territorial approach to urban and social development that the World Bank has been supporting in both the state and city of Rio de Janeiro, and for which the historical alliance between federal, state and municipal governments in Rio has been crucial. These projects have focused on strengthening planning and management of urban growth in the metropolitan region, promoting the provision of affordable housing with access to infrastructure and service, and supporting the implementation of a targeted, comprehensive social development program for the urban poor. Under the social development agenda, the Bank has been providing support to Social UPP since its design stage, in 2010, through technical assistance services to strengthen social governance and territorially-based monitoring and evaluation. Show Less -

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 -