Rural Poverty Alleviation in Brazil: Toward an Integrated Strategy (World Bank Country Study)

281 Pages·2003·1.77 MB·English

by  World Bank Group

A W O R L D B A N K C O U N T R Y S T U D Y
Rural Poverty Alleviation in Brazil: Toward an Integrated R Rural Poverty Alleviation
Strategy is part of the World Bank Country Study series. u
These reports are published with the approval of the subject r
a in Brazil
government to communicate the results of the Bank’s work on l

the economic and related conditions of member countries to P
governments and to the development community. o
v
Toward an Integrated Strategy
e
This study contains a detailed profile of the rural poor in the
r
northeast and southeast regions of Brazil. This report’s six the- t
y
matic studies identify the key microeconomic determinants of
A
rural poverty in these regions by reviewing the dynamics of
l
the small farm sector, rural labor markets, rural land markets, l
e
rural non-farm employment, rural education and pensions. v
This study proposes a five-pronged framework for integrating i
a
policy to help reduce rural poverty in Brazil. It concludes that t
i
such an integrated policy approach is necessary to generate o
n
the multiple poverty exit pathways needed in Brazil. This

approach involves agricultural intensification in the small farm i
n
sector, dynamism in the commercial agricultural sector, rural

B
non-farm employment stimulation, youth migration, and safe-
r
ty net provisions. a
z
i
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ISBN 0-8213-5206-7
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A W O R L D B A N K C O U N T R Y S T U D Y
Rural Poverty Alleviation
in Brazil
Toward an Integrated Strategy
THE WORLD BANK
Washington, D.C.
Copyright © 2003
The International Bank for Reconstruction and Development / The World Bank
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First printing: June 2003
1 2 3 4 05 04 03
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ISBN: 0-8213-5206-7
eISBN: 0-8213-5207-5
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Library of Congress Cataloging-in-Publication Data
Rural poverty alleviation in Brazil: toward an integrated strategy.
p. cm. -- (World Bank country study)
Includes bibliographical references (p.).
ISBN 0-8213-5206-7
1. Poverty--Brazil. 2. rural poor--Brazil. 3. Economic assistance--Brazil. I. World
Bank. II. Series.
HC 190.P6 R87 2003
339.4’6’0981091734--dc21
2002032186
C
ONTENTS
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ix
Abbreviations and Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xi
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
A Profile of Rural Poverty: Updated Facts and New Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
A Five-Pronged Strategic Framework for rural Poverty Reduction . . . . . . . . . . . . . . . . . . . . . . . . .3
1. A Agricultural Intensification on the Small Farm Sector . . . . . . . . . . . . . . . . . . . . . . . . . . .3
2. A More Dynamic Commercial Agricultural Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
3. Stimulating rural Non-Farm (RNF) sector Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
4. Migration of the Young . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
5. Safety Net Provision for those “Trapped” in Poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
A Tentative Portfolio of Integrated Rural Poverty Reduction Policies . . . . . . . . . . . . . . . . . . . . . .5
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
A Profile of Rural Poverty: Updated Facts and New Findings . . . . . . . . . . . . . . . . . . . . . . . . .8
A Strategic Framework for Rural Poverty Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Rural Poverty Exit Paths: A Five-Prong Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Agricultural Intensification of the Small Farm Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
More Dynamic Commercial Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Rural Non-Farm Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Migration of the Young . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
A Safety Net for those “Trapped” in Poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
An Integrated Policy Portfolio for Rural Poverty Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Improving Human Capital Endowment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Rural Land Market Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Increasing R&D and Transfer of Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Rural Finance Market Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Rural Labor Market Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Reviewing the Labor Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
RNF Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Supply of Public Goods and Building of Social Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Price and Trade Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Transfer Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
A Preliminary Policy Portfolio Selection Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
iii
IV CONTENTS
1. Poverty Profile in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
The Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Main Characteristics of Rural Households . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Comparison among Different Rural Population Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Poverty Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Summary of Main Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
2. Dynamics of the Brazilian Small Farm Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
The Structural Changes of Brazilian Agriculture and their Implications on
Family Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
Implications on Family Farming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
Main Implications on Public Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
Main Determinants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
Main Alternative Policy actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78
3. An Assessment of Rural Labor Markets in the 1990s . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
Labor Organization in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
The Appearance of Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
Government Reaction to Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
Cooperatives or Condomínios? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86
The Evolution of Agricultural Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
Driving Forces of Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
Rural-Urban Migration Trends in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
The Structure of Employment in the Agricultural Sector . . . . . . . . . . . . . . . . . . . . . . . . . . .92
The Growth of Temporary Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
Non-Agricultural Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95
Less Formal Jobs in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97
Regional Differences in Rural Labor Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
Policy Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Earnings and Poverty in the Rural Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107
CONTENTS V
4. Land Markets and Rural Poverty Alleviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
Recent Changes in Land Markets and Land Policies in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . .113
The Ownership Structure: Concentration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116
Tax Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118
Titling and Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118
Recent Changes in Legislation and Impact on Land Rental Markets . . . . . . . . . . . . . . . . .119
Alternatives to the Traditional Land Reform Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123
The Impacts on Rural Poverty Alleviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124
Conclusion and Policy Recommendation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129
5. Determinants of Farm Revenues and Factor Returns for Poor
Farmers in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Farm Revenues and Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140
Policies and Real Farm Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142
Trade Liberalization: Reducing Nominal Protection to Agricultural And
Non-agricultural Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Determinants of Farm Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
The Role of Prices on Factor Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152
6. Poverty and Non-farm Employment in Rural Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Rural Poverty in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155
Preliminary Regional Poverty Estimates for the NE/SE of Brazil . . . . . . . . . . . . . . . . . . . .156
Urban versus Rural Poverty: a Misleading Dichotomy? . . . . . . . . . . . . . . . . . . . . . . . . . . .159
State-Level Poverty Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
Non-Farm Activities in Northeast and Southeast Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163
Employment Trends in the Non-Farm Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
Incomes from Non-Farm Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177
Concluding Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189
7. Rural Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191
What is the Situation Regarding Rural Education? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191
VI CONTENTS
Access to Schools (enrollment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192
Student Flow in Rural and Urban Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194
Scores on Standardized Tests in Rural and Urban Areas—Using the SAEB Data . . . . . . . .197
School Inputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198
MEC Policies for Rural Education and the Impact of MEC
Universal Policies on Rural Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203
The Education Maintenance and Development Fund—FUNDEF . . . . . . . . . . . . . . . . . . .204
Programs Focusing on Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .206
Programs Focusing on Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209
Support for Technological Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .211
8. Social Insurance or Social Assistance for Brazil’s Rural Poor? . . . . . . . . . . . . . . . . . . .213
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213
RGPS Benefits for Rural Households . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .214
The Impact of Rural Pensions on Poverty and Welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216
Should Rural Old Age Pensions be Replaced with Social Assistance? . . . . . . . . . . . . . . . . . . . . .220
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .224
9. Public Policies to Reduce Rural Poverty a Selective Assessment . . . . . . . . . . . . . . . . . .225
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225
Government Policies and Spending Related to Rural Poverty, Targeting, and Impact . . . . . . . .228
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228
Land Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228
Northeast Rural Poverty Alleviation Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235
Drought Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238
Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .241
Water and Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246
Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249
Agricultural Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Comparing the Effectiveness of Different Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
Priorities for Policy Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .258
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .261
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262
A
BSTRACT
The objective of this report is to design an integrated strategy for rural poverty reduction in
Brazil. It contains an updated and detailed profile of the rural poor in the northeast and
southeast regions of Brazil; identifies key determinants of rural poverty in these regions; and pro-
poses a five-pronged strategic framework and a tentative set of policy options. The latter were
identified via an analysis of rural poverty determinants complemented with an evaluation of rele-
vant current public programs and six in-depth thematic studies: (a) the dynamics of the Brazilian
small farm sector, (b) rural labor markets, (c) rural land markets, (d) rural non-farm employment,
(e) rural education, and (f) rural pensions.
vii

P
REFACE
This study was prepared by Alberto Valdés (Task Manager) and Johan A. Mistiaen (Consultant).
We gladly acknowledge the helpful observations by the peer reviewers Malcolm Bale (Sector
manager, EASRD) and Robert Thompson (Director, RDV) and the constructive comments by
Gobind Nankani (Former Country Director, LCC5C), Joachim von Amsberg (Lead Economist,
LCC5C), Norman Hicks (Sector Manager, LCSPP), Indermit Gill (Lead Economist, LCSHD),
and Mark Roland Thomas (Economist, LCC5A).
Drafts of this report have been discussed with many institutions and individuals of the Brazilian
Government, and their comments have been taken into account. However, the views expressed in
this report are exclusively those of the World Bank.
Vice President: David de Ferranti
Country Director: Vinod Thomas
Sector Director: Ernesto May
Sector Manager: Norman L. Hicks
Task Manager: Alberto Valdés
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