HUMAN DEVELOPMENT REPORT FOR BRAZIL - 1996

 

The Report recalls that between 1980 and 1992 the Brazilian economy grew by only 1.25% a year. And since the population continues growing at higher rates than this, the per capita income in the period fell by 7.6%.

It should be emphasised that inflation has negative effects not only in the growth of the economy, but also in the employment level and income distribution. The participation of salaries in the national income is inversely proportionate to the inflation rate. The reflexes of inflation affect more seriously the poorer sectors.

Because of all this, says the Report, economic stabilisation is a necessary condition—though not sufficient by itself—for a sustained economic growth and for a confrontation with the issue of poverty. After describing the evolution of the "Real (currency) Plan", the Report mentions the conditions for consolidating the stabilisation, amongst which is the fiscal adjustment, considered fundamental.

The reduction of public spending, it goes on, must be accompanied by a big increase in efficiency.

The Report touches on the new technological model—new organisational techniques and automation based on electronics—and the problem of low Brazilian investment (0.7% of the GNP, almost all done by the State) in science and technology.

It analyses Brazilian industrial competitivity and its insertion in the world market, and examines the consequences of the country’s new international commitments within the context of the globalisation process and the formation of regional blocs. It points out that the country will still need to adjust itself to the exigencies of an environmental nature, a decisive ingredient for sustainable economic development.

The topic of sustainability and environmental management takes up one chapter, with the Report stressing that the country occupies a privileged position with regard to a large portion of natural resources—chiefly water—but already faces a lot of problems.

Even water is a resource that is becoming scarce in the metropolitan regions because of pollution and waste, apart from the question of losses in the energy system. Inadequate use of soils is another problem mentioned, side by side with deficiencies in basic sanitation. Even though the investments in sanitation in the decades of the 70s and 80s benefited mainly the most needy segments, a high degree of disparity still persists in the access by the poorest to basic sanitation, refuse collection and other services.

Atmospheric pollution, principally in São Paulo, and the deficiencies in refuse collection and disposal are also analysed.

Back to the chapter's index

Back to the report's index