World Bank Development Project Proposal: Brazil By Jeffery Wong

General Information – Brazil Location: South America Capital: Brasilia Largest City: Sao Paulo

Bazil Population: 202, 656, 788 people (2014 est.) Brazil economy is on the rise It has become the most powerful country in South America in economic terms

Social and Economic Data

Social indicators of development Human developing index ranking – 79 out of 187  High human development Human developing index value – Population growth rate – million School life expectancy 5.82% of GDP Total fertility rate 1.05 million Education expenditures 5.82% of GDP

Economic indicators of development GDP per capita 14, (2011 PPP$) GDP – composition by sector billion Unemployment rate 6.2& aged 15 years and older Public dept 16.64% of GDP Stock of direct foreign investment – At Home 3.38% of GDP Labor Force – By occupation - (Male: 59.5% of ages 15 and older) / (Female: 80.9 % of ages 15 or older)

Age dependency ratio (% of working-age population) The latest value for Age dependency ratio (% of working-age population) in Brazil was as of Over the past 51 years, the value for this indicator has fluctuated between in 1964 and in 2011.

Conclude - Social and Economic Data Human developing index ranking – 79 out of 187  High human development School Life Expectancy: 14 years GDP per capita: 14, (2011 PPP)  5, USD

Income distribution Brazil has been tackling problems of income inequality despite high rates of growth Its GDP (gross domestic product) growth in 2010 was 7.5% The country's high-income concentration is depicted by the richest one per cent of the population

Obstacles to economic development

Rural Urban divide Varying levels of economic development exists in urban and rural areas. Those living in the rural communities face a lack of proper education, healthcare and infrastructure. The lack of access to technology, formal education and skills training have resulted in fewer employment opportunities, and hence contribute to lower revenues of people living in rural areas.

Low levels of education The low level of education in Brazil in general has been a concern as it perpetuates the income inequality situation by decreasing social mobility. This limits the opportunities of those in low income groups, lowering their chances of narrowing the income gap. Brazil has an illiteracy rate of 10.2% and a poor quality of education.

Pro-rich tax system Brazil implements a regressive tax system that which burdens the poor. The tax load of those in the higher income brackets earning more than 30 times the minimum wage a month amounted to 26.3 per cent. In contrast, those with a monthly income of less than twice the minimum wage were taxed almost twice the amount at 48.8 per cent.

High land ownership concentration The expansion of an export- driven agribusiness has led to land ownership concentration (IBGE census reports a GINI index of 0.872). The government implemented an agrarian reform that has resettled many family farms, which employ about 74% of agricultural workers. However, land ownership concentration was reported to be high even in areas where family farms are settled. This is a disturbing issue with regards to income inequality as family farms find it hard to compete with large-scale producers.

Resources and potential

Renewable energy After the oil shocks of the 1970s, Brazil started focusing on developing alternative sources of energy, mainly sugarcane ethanol. Its large sugarcane farms helped a lot. In 1985, 91% of cars produced that year ran on sugarcane ethanol.

Short Summarize

Formal Proposal Requesting loans for education and transportation in rural areas in Brazil Expand school and transport system; amount of school in rural areas Increase average school years Develop more skills in different industries Develop the industries of renewable energy plant

Financial Plan/Analyize Cost Estimate – 20 million Secondary Education – 5 million Teacher training – 2 million Transportation system – 8 million Renewable energy system – 5 million

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