Public Policy in Brazil: Public Policy in Brazil: System Performance & System Performance &

Outcomes Outcomes

Regional Differences Important in Brazil

Distributive & Distributive & Redistributive Policy Redistributive Policy

QuantityQuantity Available resources usually depend of Available resources usually depend of

domestic extractive capabilitydomestic extractive capability Example of OPEC countries Example of OPEC countries

Areas of human life touched by benefitsAreas of human life touched by benefits WelfareWelfare National security National security

Welfare state as a distributive ideology Welfare state as a distributive ideology

Chart –object of Chart –object of expenditures Distexpenditures Dist

Extractive PolicyExtractive Policy

Services (military duty, jury duty) Services (military duty, jury duty) Taxation (extractions that have Taxation (extractions that have

no immediate or direct benefit) no immediate or direct benefit) Borrowing Borrowing Issues of efficiency and equity Issues of efficiency and equity

are always associated with are always associated with making and implementing making and implementing extractive rules extractive rules

Chart -central Gvt Chart -central Gvt Revenue Revenue

Sources of ExtractionSources of Extraction

Kinds of Public Policies: Kinds of Public Policies: Regulation Regulation

RegulationRegulation of human behavior of human behavior CompulsionCompulsion Inducements Inducements

Goal – obtain compliance for the extractive Goal – obtain compliance for the extractive and distributive policies of the state and distributive policies of the state

Kinds of Public Policies: Kinds of Public Policies: SymbolicSymbolic

Symbolism Symbolism political speechespolitical speeches holidays rites holidays rites public monuments public monuments

Used by government Used by government to exhort citizens to to exhort citizens to desired forms of desired forms of conduct conduct

Brasilia – Brasilia – symbolizing power in symbolizing power in Century 21Century 21

Where Democratic Brazil’s Where Democratic Brazil’s Policy Implementation Policy Implementation

Record is MixedRecord is Mixed Producing growthProducing growth Controlling inflationControlling inflation Enacting economic reformEnacting economic reform

Economic Policy Economic Policy

The recordThe record Inflation following return to democracy Inflation following return to democracy Cardoso: Real PlanCardoso: Real Plan Deregulation of financial and labor marketsDeregulation of financial and labor markets Pension reformPension reform Extractive capacity diminished by corruption Extractive capacity diminished by corruption TaxesTaxes

Tax on the Circulation of Goods and ServicesTax on the Circulation of Goods and Services Single value-added taxSingle value-added tax

Other “Mixed” RecordsOther “Mixed” Records

Education resources Education resources used for elite creation used for elite creation poor record of elementary school poor record of elementary school basic adult literacy improves slowly basic adult literacy improves slowly

Redistributing income and providing Redistributing income and providing basic social servicesbasic social services Minimal reduction in broad disparities Minimal reduction in broad disparities Patron-client relations prevail Patron-client relations prevail

Where Democratic Brazil’s Where Democratic Brazil’s Record is Poor: Health Record is Poor: Health

1988 Constitution - 1988 Constitution - Heath Care Heath Care Universally MandatedUniversally Mandated Access to system is Access to system is

unevenuneven

Quality of health care Quality of health care in shantytowns is lowin shantytowns is low Poor Health Indicators Poor Health Indicators

AIDS ProgramAIDS Program

Poor area of Rio de Poor area of Rio de Janeiro controlled by Janeiro controlled by armed drug-dealersarmed drug-dealers

No established medical No established medical facilities facilities

Where Democratic Brazil’s Where Democratic Brazil’s Record is PoorRecord is Poor

Street childrenStreet children estimates they number estimates they number

25,000 nation-wide25,000 nation-wide Vulnerable & exploited Vulnerable & exploited Favela children Favela children

recruited by drug recruited by drug gangs who given them gangs who given them weaponsweapons

meninos de rua

Where Democratic Brazil’s Where Democratic Brazil’s Record is Poor; Housing Record is Poor; Housing

The National Housing Bank The National Housing Bank (Banco Nacional de (Banco Nacional de Habitação--BNH) Habitação--BNH)

well-to-do live in chic well-to-do live in chic neighborhoods, usually neighborhoods, usually centrally locatedcentrally located

The urban poor live in The urban poor live in favelas or distant housing favelas or distant housing projects, take long bus trips projects, take long bus trips to work, go to public schools.to work, go to public schools. Boa Viagem beach – Recife

Luxury apartments in São Paulo right next to a favela

Individual pools

Tennis Courts

Another pool Another pool and patioand patio

•3 maids rooms3 maids rooms

•Waiting rooms for drivers in basementWaiting rooms for drivers in basement

•Special rooms for storing crystal, china Special rooms for storing crystal, china silver, ectsilver, ect

•Electric fences, video cameras, and Electric fences, video cameras, and private guardsprivate guards

Class Divide Comparative Perspective

GINI Index of Inequality 0 = perfect equality and 1 = perfect inequality

Crime, Drugs & Urban Poor

Crime rates high in urban shantytowns Warring cartels compete for influence in

the shantytowns Illicit drug trade (second only to USA) Militarization of policing

Other Important Policy Challenges

Environment Deforestation

Amazon Basin Economic growth

vs. Rainforest preservation

Air & Water Pollution in cities

Political CorruptionPolitical Corruption& Brazilian Public Opinion& Brazilian Public Opinion

Political Scandal 2005 During 2010

presidential campaign

Political Attitudes towards Corruption

How does corruption, and public attitudes toward corruption influence public policy?

National Strategy of National Strategy of DefenseDefense

Modernization of Modernization of Armed Forces under Armed Forces under President Lula President Lula

Restructuring of Restructuring of Brazilian Defense Brazilian Defense IndustryIndustry

Troop requirements Troop requirements increasedincreased

Partner in Russian-Indian joint venture to produce fifth-generation fighter aircraft version of the Sukhoi fighter aircraft

Reorganization of Reorganization of Armed ForcesArmed Forces

New Strategic New Strategic Guidelines to Guidelines to Each Military Each Military BranchBranch

Stresses flexibility Stresses flexibility and elasticity for and elasticity for ArmyArmy

Mandatory Mandatory military service military service

South American Military South American Military Focus Focus

PERU

BRAZIL

ECUADOR

VENEZUELA

BOLIVIA

COLOMBIA

GUYANA

SURINAM

FRENCH GUIANA

Brazil: Rising force in Brazil: Rising force in International AffairsInternational Affairs

Carving out a sphere of Carving out a sphere of influence in South influence in South America America MERCOSURMERCOSUR UNASUR UNASUR

Enhancing the influence Enhancing the influence of the BRICof the BRIC

Mediating with CubaMediating with Cuba Environmental Politics Environmental Politics Mastering peaceful Mastering peaceful

nuclear technology nuclear technology

Explaining Policy Failures Explaining Policy Failures

Mixed elite supportMixed elite support Poorly designed programsPoorly designed programs Clientilism and regionalismClientilism and regionalism Little difference between policy Little difference between policy

success/failure of military and civilian success/failure of military and civilian regimesregimes

World market conditions World market conditions

Going in the Right DirectionGoing in the Right Direction

Prospects: Reasons for Prospects: Reasons for Optimism Optimism

Political: increasing stabilityPolitical: increasing stability Economic: meeting challengesEconomic: meeting challenges

Fiscal deficitsFiscal deficits Structural reformStructural reform International competitiveness of industry International competitiveness of industry

Growing confidence among Brazilians Growing confidence among Brazilians In 2005, 67 percent of Brazilians believed their children would In 2005, 67 percent of Brazilians believed their children would

live better than they had lived.live better than they had lived. 2012 World Cub2012 World Cub 2016 Olympics 2016 Olympics