Brazil - Poverty Reduction, Growth, and Fiscal Stability in the State of Ceara : A State Economic Memorandum, Volume 1. Policy Report

Although the State of Ceara, in Brazil, is a model of good economic, and fiscal performance given its poverty status, recent analysis show poverty remains severe, in spite of significant reductions over the last decade. The combination of good governance, and sound fiscal management, industrial promotion, and public investments have been successful, but the report questions whether different policies, could have led to higher growth, and poverty reduction, or, whether it is simply a matter of time to further reduce poverty rates. Arguably, Ceara can continue to develop economically, based on favorable assets, such as agriculture, or tourism, on a large labor force with wages comparatively low by Brazilian standards, and on fiscal responsibility. But development is constrained by low productivity, low education levels, and by large populations living in stagnant regions, where water accessibility is limited. While alternatives either suggest to: strengthen the existing policy on industry development; focus on massive public investments, namely education, and infrastructure; or, exercise an explicit welfare strategy, recommendations stipulate improvements in education, development of public-private partnerships, removal of industrial incentives through reform policies, implementation of institutional framework for water resource management, and, overall social safety nets to reduce poverty.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2000-08-21
Subjects:POVERTY REDUCTION, ECONOMIC GROWTH, FISCAL EFFICIENCY, GOVERNANCE, INDUSTRIAL PROMOTION, INDUSTRIAL INCENTIVES, PUBLIC INVESTMENTS, POLICY REFORM, LABOR FORCE POPULATION, LOCAL GOVERNMENT, LOW-INCOME ECONOMIES, EDUCATIONAL DEVELOPMENT, POPULATION DISTRIBUTION, ACCESS TO WATER, INFRASTRUCTURE DEVELOPMENT, WELFARE STATE, PUBLIC-PRIVATE PARTNERSHIPS, INSTITUTIONAL FRAMEWORK, WATER RESOURCES DEVELOPMENT, SOCIAL SAFETY NETS, INDUSTRIAL DEVELOPMENT AGING, AGRICULTURAL SECTOR, AVERAGE GROWTH, BASIC EDUCATION, BENEFIT ANALYSIS, CLIMATE, COMMUNITY PARTICIPATION, COMPARATIVE ADVANTAGE, COST RECOVERY, CURRENCY UNIT, DEBT, DEVELOPMENT POLICY, ECONOMIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC MEMORANDUM, ECONOMIC OPPORTUNITIES, ECONOMIC POLICIES, ECONOMIC REFORMS, ECONOMIC STUDIES, EDUCATION LEVEL, EMPLOYMENT, EMPLOYMENT STATUS, EXCHANGE RATES, EXPENDITURE ANALYSIS, EXPENDITURE REVIEW, EXPENDITURES, EXTERNALITIES, EXTREME POVERTY, FAMILIES, GROWTH EFFECT, GROWTH PERFORMANCE, GROWTH POLICIES, GROWTH RATE, HEADCOUNT POVERTY, HEALTH CARE, HEALTH POLICY, HOUSEHOLD SURVEY, HOUSING, HUMAN CAPITAL, INCENTIVE POLICIES, INCOME, INDUSTRIAL DEVELOPMENT, INDUSTRIAL POLICY, INTERNATIONAL TRADE, LABOR FORCE, LABOR MARKET, LAND REFORM, LIVING STANDARDS, LIVING STANDARDS MEASUREMENT, LIVING STANDARDS MEASUREMENT STUDY, MANAGEMENT CAPACITY, MIGRATION, NATIONAL AVERAGE, NATIONAL POLICIES, NATIONAL POVERTY, OVERALL COSTS, PARTNERSHIP, PENSION SYSTEM, PER CAPITA INCOME, POLICY ACTIONS, POLICY FOCUS, POLICY INSTRUMENTS, POLICY ISSUES, POLICY MAKERS, POLICY MAKING, POLICY OPTIONS, POLICY REFORMS, POLLUTION, POVERTY ALLEVIATION, POVERTY LEVEL, POVERTY LINE, POVERTY PROFILE, POVERTY RATE, POVERTY RATES, POVERTY REDUCING, POVERTY TARGETING, PRIMARY SCHOOL, PRIMARY SCHOOLS, PRIORITY AREAS, PRIVATE SECTOR, PRODUCTIVITY, PUBLIC ACTIONS, PUBLIC INVESTMENT, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC SPENDING, REDUCING POVERTY, RURAL AREAS, RURAL ECONOMY, RURAL EMPLOYMENT, RURAL POOR, RURAL POPULATION, RURAL POVERTY, SAFETY, SAFETY NET, SCHOOL GRADUATES, SECTORAL COMPOSITION, SERVICE SECTOR, SIGNIFICANT REDUCTION, SOCIAL CAPITAL, SOCIAL DEVELOPMENT, SOCIAL POLICIES, SOCIAL SPENDING, SPATIAL DISTRIBUTION, STATE POLICIES, TECHNICAL ASSISTANCE, TRANSFER PAYMENTS, UNEMPLOYMENT, URBAN AREAS, URBAN POPULATION, WAGES, WATER RESOURCES, WATER SUPPLY,
Online Access:http://documents.worldbank.org/curated/en/2000/08/693316/brazil-poverty-reduction-growth-fiscal-stability-state-ceara-state-economic-memorandum-vol-1-2-policy-report
https://hdl.handle.net/10986/14979
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Summary:Although the State of Ceara, in Brazil, is a model of good economic, and fiscal performance given its poverty status, recent analysis show poverty remains severe, in spite of significant reductions over the last decade. The combination of good governance, and sound fiscal management, industrial promotion, and public investments have been successful, but the report questions whether different policies, could have led to higher growth, and poverty reduction, or, whether it is simply a matter of time to further reduce poverty rates. Arguably, Ceara can continue to develop economically, based on favorable assets, such as agriculture, or tourism, on a large labor force with wages comparatively low by Brazilian standards, and on fiscal responsibility. But development is constrained by low productivity, low education levels, and by large populations living in stagnant regions, where water accessibility is limited. While alternatives either suggest to: strengthen the existing policy on industry development; focus on massive public investments, namely education, and infrastructure; or, exercise an explicit welfare strategy, recommendations stipulate improvements in education, development of public-private partnerships, removal of industrial incentives through reform policies, implementation of institutional framework for water resource management, and, overall social safety nets to reduce poverty.