Brazil Inequality

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PAPER N.º 1

OECD – CHINA CONFERENCE

(*) Alfredo Lopes Neto is a Specialist in Public Policies, and Advisor for the Vice-Governor of the State of Ceará. E-mail: vicegov.supest@secrel.com.br E-mail: pml@secrel.com.br

XI’AN, PEOPLE’S REPUBLIC OF CHINA OCTOBER 2001

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LESSONS FROM BRAZIL’S REGIONAL DEVELOPMENT POLICIES TABLE OF CONTENTS I. Introduction – Social and Regional Inequalities in Brazil II. Introducing Brazil: A Country of Continental Dimensions • • • Brazil One Brazil Two The Inequality Numbers

III. The Historical Regionalization Process in Brazil IV. The Brazilian Government and the Attempts to Reduce the Regional Inequalities • • • • • • • • • • • The Beginning The Administrative Reform, 1967 The Seventies: The Special Programs The Eighties: The Almost Lost Decade Regional Development and the Constitution Brazil: A Broad Experience in the Implementation of Tax Incentives Systems The Present Situation Impacts of the Brazilian Commercial Opening The Role of the Direct External Investments (DEI) Some Thoughts About the DEI The Nineties Programs for Attracting Investments The Brazil In Action Program The National Integration: Axes Identify Brazil’s Scenarios for the XXI Century The Move Forward Brazil Program

V. The Lessons from the Regional Development Policies in Brazil: The Northeast Region, a Study Case • • • SUDENE’s Role: The Comparativeness Era. The Investments Role The Present Changes

VI Proposing New Regional Policies for Brazil
• • • • • • • Modernization Areas Sharing with Stagnated Areas into the Regional Space New Regional Policies for Brazil: Great Objectives to Be Reached A New Way to Deal with the Regional Dimension Each Case is a Case... Initial Proposals A New Regional Development Proposal for the Northeast The Fragmentation Era has Caused Mistakes 2

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Proposals which Are being Analyzed...

ANNEXES ANNEX I – TABLES
Table I –Comparative Data among the Brazilian Regions

Table 2 –Brazilian Imports By States and Regions from 1990 to 2000

Table 3 – Brazilian Exports By States and Regions from 1990 to 2000

Table 4 –Intent Survey of Industrial Investments in Brazil From 1995 To 2000

Tables 5 and 6 – Foreign Investments in Brazil: Consolidated By Region (1995)

ANNEX II - MAPS
Map 1 – The Regions and the States of the Federation Map 2 – The Two Brazils Map 3 – Integration Axes

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ABBREVIATIONS

ABDIB – Associação Brasileira de Infra-Estrutura e Indústrias de Base (Brazilian Association of Infrastructure and Base Industries) ADA – Agência para o Desenvolvimento da Amazônia (Amazon Development Agency) ADENE – Agência para o Desenvolvimento do Nordeste (Northeast Development Agency) ALCA – Área de livre Comércio das Américas (America’s Free Trade Area-AFTA) BACEN – Banco Central do Brasil (Central Bank of Brazil) CHESF – Companhia Hidrelétrica do São Francisco (São Francisco Hydroelectric Company) CODEVASF – Companhia de Desenvolvimento do Vale do São Francisco (São Francisco Valley Development Company) CVSF – Comissão do Vale do São Francisco (São Francisco Valley Authority) DNOCS – Departamento Nacional de Obras Contra as Secas (0) EUA – Estados Unidos da América (United States of America – USA) FINAM – Fundo de Desenvolvimento da Amazônia (Amazon Development Fund) FINOR – Fundo de Desenvolvimento do Nordeste (Northeast Development Fund) FNA – Fundo Constitucional do Norte (Constitutional Fund of the North) FNDR – Fundo Nacional de Desenvolvimento Regional (Regional Development National Fund) FNE – Fundo Constitucional do Nordeste (Constitutional Fund of the Northeast) FNO – Fundo Constitucional do Centro-Oeste (Constitutional Fund of the Center West) IAA – Instituto de Açúcar e Álcool (Sugar and Alcohol Institute) IBGE – Instituto Brasileiro de Geografia e Estatística (Brazilian Institute of Geography and Statistics) IDH – Índice de Desenvolvimento Humano (Human Development Index –HDI) IOCS – Inspectoria de Obras contra as Secas (Inspectorship...
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