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USAID Information:
External Links:
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Brazil
The Development Challenge: The most pressing development challenge facing Brazil today is how best to generate sustainable economic growth while responding to overwhelming public pressure for rapid solutions to extensive poverty and social inequality. During the first year of President Luis Inacio Lula da Silva's administration, considerable progress was made in stabilizing the economy: inflation is under control, interest rates are beginning to fall, and investor confidence is rising. Likewise, several programs have been launched to address hunger, unemployment, and needed improvements to Brazil's health care and education systems. However, the effectiveness of these measures, particularly in the social sector, is still in question. Heavy foreign debt remains a serious constraint to productive spending, crime has grown dramatically, and unemployment stands at 12.9% nationally and as high as 18% in major urban centers, while Brazil's income distribution continues to be among the world's worst. Approximately 15% of the nation remains illiterate, nearly 20 million Brazilians lack access to reliable energy and an estimated 53 million people (one third of the population) live below the international poverty line. Brazil is home to nearly 60% of all HIV/AIDS cases in South America and the majority of its malaria cases, and is a high-burden tuberculosis country. Finally, environmental degradation continues at an alarming rate, with increased pressure to look towards the Amazon for the resources needed to generate economic growth and employment. It is important to note, however, that the Government of Brazil (GOB) has achieved outstanding success in implementing the kinds of fiscal and monetary policies that will be critical to eventually turning the tide on these daunting socio-economic challenges. In addition, USAID has found the Government of Brazil and Brazilian civil society to be highly collaborative and committed partners in joint efforts to address the U.S. transnational priorities of combating HIV/AIDS and other communicable diseases, protecting the region's unique biodiversity and natural ecosystems, mitigating global climate, and combating poverty.
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The USAID Program: USAID is working with Brazil to address regional and global issues of mutual concern and in addressing its serious socio-economic problems. USAID's program, for which FY 2004 and FY 2005 funding is being requested, comprises five objectives contributing to: (1) protection of Brazil's environment and unique biodiversity;(2) reduction of greenhouse gas emissions through the promotion of alternative energy and energy efficiency;(3) increased training and employment opportunities for disadvantaged Brazilian youth and the elimination of trafficking in youth; (4) HIV/AIDS prevention and decreased tuberculosis and other communicable diseases; and (5) promotion of free trade and small and medium enterprise development, as well as support for the Government of Brazil's Zero Hunger program. Implementation of the above strategic objectives began in October 2003, following the approval of a six-year Country Strategic Plan (FY 2003 - FY 2008).
Four of the current objectives build upon successes achieved under USAID's Country Strategic Plan (FY 1998 - FY 2002), while the fifth reflects U.S. foreign policy priority of promoting free trade, the Free Trade Area of the Americas (FTAA), and enhanced hemispheric integration. This objective will also contribute to Brazil's efforts to alleviate poverty and overcome social exclusion by promoting economic growth in the small and medium enterprise sector and supporting a social safety net.
USAID does not provide funding directly to the Government of Brazil, but rather, works through U.S. and Brazilian non-governmental organizations (NGOs) and firms. In addition, USAID works with its contractors and grantees to form strategic partnerships with national and local government and other donors, which have resulted in shared development agendas, enhanced resources, and a high degree of collaboration. USAID also manages four Global Development Alliances in Brazil that are leveraging private sector funds and support for activities that prepare disadvantaged youth for employment and promote the use of certified forest products. Throughout its program portfolio, USAID has identified extremely capable and committed government, NGO, private sector and donor community partners.
Other Program Elements: USAID, through centrally-funded programs, implements complementary activities to the bilateral programs described in the data sheets. For example, in the health sector, in FY 2003 HIV/AIDS prevention programs and key family planning studies are supported through the Global Health Bureau. Also, under the Amazon Malaria initiative a malaria control program is managed through the South American Regional program. In support of free trade and hemispheric integration, the Latin America and Caribbean Bureau funds supplemental activities, such as six Free Trade Area of the America (FTAA) outreach events in major Brazilian industrial cities, the travel of key public opinion makers to Mexico to observe the impact that the North American Free Trade Agreement (NAFTA) has had on that country, and a Washington visit by members of the Brazilian congress to discuss free trade with their U.S. counterparts.
The International Youth Foundation received support for its Entra 21 program, which supports youth employment training, through the Global Development Alliance Secretariat with significant support provided by the Inter-American Development Bank (IDB). The goal of the Entra 21 program is to enhance opportunities for disadvantaged youth in the formal job market, which complements similar Mission-funded activities in the northeastern region of the country.
USAID's Bureau for Economic Growth, Agriculture and Trade (EGAT) supported Lions Clubs International Foundation with assistance to disadvantaged youth. Finally, in the energy sector, EGAT supported development of: (1) a joint environment/energy initiative to promote awareness and engagement of indigenous populations in the development of small hydro-electric plants; (2) two solar powered tele-centers in the Amazon to connect isolated communities to the internet; and (3) a diagnostic study of the possibility of using performance-based contracts for public sector energy efficiency projects.
Other Donors: USAID collaborates extensively with bilateral and multilateral donors, the Government of Brazil, and the country's private sector, for the purpose of leveraging funds and coordinating efforts, and plays a key role in donor coordination by actively participating in conferences, workshops, and meetings that address USAID's focus areas. In addition, USAID takes the lead in facilitating annual meetings in the environment and energy sectors, which bring key government, international donor, and NGO representatives together to discuss challenges and priorities, lessons learned, and potential areas of collaboration.
Key interest areas of other donors in the environment sector include: protection of the Brazilian rainforest, biodiversity conservation, natural resource management, expansion of parks and indigenous reserves, sustainable forest management and the elimination of predatory logging; promotion of ecotourism and green markets for forest products, poverty alleviation and economic activities compatible with environmental protection, community-based development projects, indigenous issues, and institutional strengthening.
USAID also meets regularly with a multi-donor United Nations Joint Program on HIV/AIDS theme group to ensure cooperation on prevention activities. USAID also meets with the Pan-American Health Organization to address tuberculosis and malaria treatment and prevention. In the energy sector, the United Nations Development Program (UNDP) is focused on co-generation issues, while Japan and Great Britain share USAID's interest in promoting renewable, alternative energy sources and energy efficiency. In the area of assisting disadvantaged youth and combating trafficking and the sexual exploitation of youth, USAID collaborates with the Brazilian Ministries of Justice, Labor, and Education, several NGOs, the World Children's Fund, and the United Nations Educational, Scientific and Cultural Organization (UNESCO).
The World Bank and European Union are the first and second largest development partners, respectively. They are followed by USAID, the Inter-American Development Bank, the German Government, UNDP (education, environment, and health), the United Nations Children Fund, the Canadian Government (health and education), and Great Britain (health and sustainable development).
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