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USAID Information:
External Links:
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Brazil
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Communicable Diseases Program |
512-007 |
8,140 |
7,856 |
7,900 |
| Environment Program |
512-008 |
6,275 |
6,088 |
5,143 |
| Energy Program |
512-009 |
1,375 |
990 |
1,000 |
| At-Risk Youth Program |
512-010 |
1,300 |
1,360 |
1,289 |
| SME Growth, Trade, and Poverty Reduction |
512-011 |
1,943 |
846 |
1,741 |
| Total (in thousands of dollars) |
19,033 |
17,140 |
17,073 |
|
The Development Challenge: With a population of 182 million and the largest economy in South America, Brazil is a key U.S. partner and provides a regional leadership role on trade, democracy, environment, and peacekeeping. Brazil has made progress in consolidating democratic reforms and establishing relative economic stability after years of rampant inflation. In 2002, Luís Inácio Lula da Silva, of the Worker's Party, was elected President with an unprecedented 61% of the popular vote. Voters supported Lula with the expectation that he would fight poverty, create jobs, and expand social sector programs. Nearly two years into his administration, Lula has strengthened the confidence of international and domestic investors by shoring up Brazil's economy, running primary budget surplus, and controling inflation. Preliminary 2004 economic figures project a drop in the 2003 inflation rate of 9.3% to 7%, and an increase in the economic growth from 0.5% in 2003 to 5.0%.
Despite relative economic stability and promise on the trade front, major social problems challenge the Government of Brazil (GOB). An estimated 53 million (or 30%) Brazilians live in poverty, nearly 20% of the population is illiterate, 57% of all HIV/AIDS cases in South America are found in Brazil, and 120,000 new tuberculosis (TB) cases are reported annually. Over 12 million people lack access to the national power grid. In 2003, in response to widespread poverty and income inequality, the Lula administration unveiled its flagship "Zero Hunger" program, focused on improving nutrition, and increasing access to potable water, health and education. The program, which was recognized during a June 2003 Presidential Summit President Bush and Lula, has been slow to achieve results. USAID support to nongovernmental organizations (NGOs) and faith-based organizations (FBOs) is key to the success of Zero Hunger, in addressing HIV/AIDS and TB, assisting at-risk youth, and expanding energy access.
Proper stewardship of Brazil's rich environmental endowment holds global significance. Twenty-two percent of the world's known plant species exist in Brazil and 20% of the world's fresh water lies in the Amazon basin. Brazil is one of the largest greenhouse gas contributors in the world. Environmental degradation and deforestation continue at alarming rates as the agricultural frontier expands. Environmentally-sustainable economic development in the Amazon is the only viable alternative to deforestation. USAID environment and energy programs directly support the U.S.-Brazil Common Agenda for the Environment.
The USAID Program: USAID plays an important role in bringing the GOB, donor community, civil society and private sector together to leverage the broad expertise and resources necessary to address many of Brazil's most pressing development challenges. USAID's program comprises five Strategic Objectives contributing to: 1) protection of Brazil's environment and unique biodiversity; this program is designed to increase benefits to rural poor and shape future land-use trends over large geographic areas, while continuing to mitigate the adverse impact of climate change (GCC) and biodiversity loss; 2) reduction of greenhouse gas emissions through the promotion of alternative energy and energy efficiency; the program seeks to stimulate economic growth, reduce poverty, and address GCC and other adverse environmental impacts through delivery of renewable energy and energy efficiency services; 3) increased training and employment opportunities for disadvantaged youth and reduction of trafficking in persons (TIP) cases; the program provides disadvantaged youth with access to training and employment opportunities through technical and life skills development and offers technical assistance to the GOB to halt TIP for sexual exploitation; 4) HIV/AIDS prevention and decreased TB; the health program strategy aims at reducing the transmission of selected communicable diseases, with an emphasis on enhanced HIV/AIDS prevention and expansion of TB control programs; and 5) promotion of free trade and small and micro enterprise (SME) development, as well as support to complement the GOB's Zero Hunger program by funding local nongovernmental organization (NGO) safety net programs. USAID's objective is to create conditions for greater hemispheric trade and related SME growth and employment, while contributing to poverty alleviation.
USAID makes significant contributions in addressing development challenges in Brazil, despite the country's sheer size and the magnitude of its development challenges. USAID works with U.S. and Brazilian NGOs and firms, most of which work through consortia and/or with local partners. USAID succeeds by focusing geographic coverage; expanding local government, NGO, indigenous organizations and local communities' capacity to respond to challenges in the areas of health service provision, expanded access to reliable sources of energy, environmental protection, and social and economic inclusion of impoverished populations; and by promoting replicable pilot activities and methodologies that leverage significant collaboration and resources.
Other Program Elements: USAID's Office of Regional Sustainable Development within the Latin American and Caribbean Bureau manages several activities in Brazil. The Parks-in-Peril program contributes to the national park conservation activities. A regional trade program disseminates information on the benefits of free trade and works with the GOB in developing mechanisms for the private sector and civil society to provide their input on free trade issues. USAID's Bureau for Economic Growth, Agriculture and Trade manages complementary activities that focus on biodiversity conservation, information sharing, coordination of USAID programs, youth employability, and energy policy. Under the energy program, the United States Energy Association is helping to facilitate partnerships between Brazil's Power Sector Regulatory Agency and U.S. public utility commissions.
USAID's Global Health Bureau contributes to a program that conducts field research on HIV/AIDS, sexually transmitted infections and TB and provides related management training. The South American Regional Program manages a malaria surveillance, detection, and treatment activity in the Brazilian Amazon region.
Other Donors: The GOB funds most environmental activities in Brazil. USAID ranks sixth in dollar contributions. The German Development Agency (GTZ) is the number one international investor in the protection of Brazil's biodiversity, followed by the European Union. The World Bank (IBRD) provides technical and financial cooperation for the Amazon Regional Protected Areas program. The Gordon and Betty Moore Foundation contributes three to four times the annual USAID environment budget, focusing on general Amazon forest conservation. Holland and the United Kingdom (UK) also contribute significantly to environmental protection in Brazil.
USAID is the largest bilateral donor in HIV/AIDS prevention. Complementing USAID efforts with the GOB, the World Bank signed a third HIV/AIDS loan for $150 million, administered principally by UNESCO. Previous HIV/AIDS loans totaled $325 million. The International Labor Organization (ILO) currently chairs the Brazil chapter of UNAIDS and is investing mostly in AIDS in the Workplace programs. Other donors include GTZ, the UK's Division for International Development (DFID) and UN Children's Fund (UNICEF). USAID also works closely with the Pan American Health Organization (PAHO) on TB control. In the energy sector, the IBRD and the Inter-American Development Bank (IDB) are the largest donors, followed by the UN Development Program (UNDP). The Japanese, GTZ and DFID also share USAID's interest in the energy sector. Key areas supported by these donors include energy sector regulation, energy efficiency, climate change and hydrogen.
Youth employability and TIP programs are priorities for USAID and ILO. Both collaborate in promoting youth training and employment generation, and in tackling TIP as major violation of human rights. Another key donor combating TIP is the Swedish Children's Fund. On SME growth, trade and poverty alleviation, the IDB and the IBRD have earmarked substantial resources to support the GOB's Zero Hunger program, while a local NGO, funded by the UN Food and Agriculture Organization and the International Finance Corporation coordinates a unified private sector response in this area. DFID and GTZ are working on specific clusters and productive associations to support SMEs. A number of domestic agencies, among which the Brazilian Small Business Administration, the Small Business Export Agency and the National Confederation of Industries are prepared to co-fund pilot activities in trade-led growth and employment.
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