LSE Department of Geography & Environment Postgraduate Cover Sheet for Assessed Work TWO copies of each assessed piece of work should be posted in the Graduate Departmental Box located outside S406 BEFORE the deadline. A cover sheet must be attached to each copy of assessed work, with the required information. Do not write your name on any part of the submission so as to maintain anonymity in the marking process. You should keep an electronic or paper copy of your work for your records. CANDIDATE NUMBER* : 56315 COURSE NUMBER: GY499 * This is not your student number. Candidate number is available via ‘LSE for you’. NAME OF MSc PROGRAMME: Local Economic Development FULL TITLE OF SUBMITTED WORK: Dissertation - Challenging assistentialism in Brazil. “Zero Hunger”: a Local Economic Development strategy. PLAGIARISM Work submitted by you for assessment must be your own. If you try to pass off the work of others as your own you will be guilty of plagiarism. Plagiarism refers to any work by others, whether published or not, and can include the work of other candidates. Any quotation from the published or unpublished works of other persons, including other candidates, must be clearly identified as such being placed inside quotation marks and a full reference to their sources must be provided in proper form. A series of short quotations from several different sources, if not clearly identified as such, constitutes as plagiarism just as much as does a single unacknowledged long quotation from a single source. Dyslexia Students who have been assessed as having a specific learning disability such as dyslexia or dyspraxia, may obtain a 'letter of notification' from the Disability Office to attach to both copies of their assessed coursework if they wish to inform the markers of their disability. First/Second Examiner’s comments: (please delete as appropriate) Structure: Use of sources: Coverage of relevant aspects: Demonstrated critical understanding: Insight and originality: Overall: First examiner’s mark: signature: Second examiner’s mark: signature: Agreed Mark for coursework: signature: 0 (All marks are provisional until the final examination board has met and are subject to amendment by the External Examiner) Challenging assistentialism in Brazil. “Zero Hunger”: a Local Economic Development strategy. Abstract This article examines whether the programme Zero Hunger, introduced in Brazil by President Lula, in 2003, to combat hunger and social exclusion in the country, shows any effects on local economic development of extremely poor localities, or just provides existential assistance to the poor, without changing real individual output – GDP per capita for the considerations of this article. At a glimpse, to several critics, the programme appears to be merely „assistentialist‟. However, after careful analysis, it is possible to conclude that the programme is effectively helping lagging regions to develop, in terms of GDP growth, and of reduction of poverty and inequality within and between regions. The programme‟s mosaic of integrated, complementary actions is being successful in addressing hunger and its causes, because it combines a set of emergency actions, designed to address urgent harmful effects of poverty, as innutrition, with more structural actions, designed to address specific causes of poverty, as unemployment and missing markets. Such an initiative relates to a new developmental agenda adopted in Brazil, where Washington Consensus policies have declined in influence, while Keynesian demand-side stimulation models have gained special consideration as local economic development enhancers. 1 Table of Contents 1. Introduction p3 2. Theoretical background p7 3. Hypothesis p 12 4. Zero Hunger and demand-led local economic development p 12 4.1 The Food Security issue in historical perspective in Brazil p 12 4.2. Zero Hunger nowadays p 18 4.2.1 Objectives and theoretical design p 18 4.2.2 Criticism and management reformulation p 20 4.2.3 Actual management structure p 22 4.2.3.1 Actions p 23 4.2.3.2 Involved Agencies p 26 5. Evidence Analysis p 27 5.1 Previous Research p 28 5.2 Maranhao Case Study p 29 5.2.1 Methodology p 29 5.2.1.1 Selecting criteria: Where to drive attention to? p 29 5.2.1.2 Counterfactuals p 32 5.2.2 Principal Findings p35 5.2.2.1 What is about the Northeast? p35 5.2.2.1.1 What is about Maranhao? p38 5.2.2.2 Zero Hunger’s cash transfers correlation with GDP per capita performance in Maranhao p 39 5.2.2.2.1 Rate of poor families protected by Family Grant p 41 5.2.2.2.2 GDP per capita performance p 45 6. Conclusion Marks p 47 7. Bibliography p 47 2 1. Introduction The programme „Fome Zero‟ – Zero Hunger is a historic mark in Brazilian public policy. It has been introduced in 2003, when Luiz Inácio Lula Da Silva – Lula, from the Labour Party – „Partido dos Tabalhadores‟ – PT, took office as President of Brazil, after Labour‟s remarkable victory in 2002‟s national elections, over the PSDB- PFL coalition1 – which was in control of the Presidency since 19942. This meant, in the words of Almeida (2005: 1), “the first major change in governing elites in the country since the end of the military regime, in 1985”; since PT had been the country‟s main oppositional party since then, without having, however, ever succeeded in presidential elections before. To many, Lula‟s mandate presents the first left government ever established in Brazil (Cerri, Santos, 2002)3, and, for this reason, great anxiety and expectations surrounded his first years in office. These feelings were almost integrally projected to Zero Hunger programme, which was announced as Lula‟s first priority in his presidential campaign, in 2002, and reaffirmed as a principal government policy, right on the inauguration of his first term of office. As a result, the programme has attracted massive attention of oppositionists and of the public opinion, and became a major criticism focus of Labour‟s administration (FAO, 2006: 5). The food security issue became extremely popular, calling attention of diverse research Institutes, unions, society organizations, social movements, experts, and even celebrities. Such attention had been provoked both by the status of absolute government priority the programme has received from Lula and by the method through which Zero Hunger was conceptualized, a bottom-up participative approach. The programme, however, was not a complete novelty of 1 „Partido Social Democrata Brasileiro‟ and „Partido da Frente Liberal‟, which formed the coalition supporting Fernando Henrique Cardoso – FHC‟s offices. 2 That year, FHC was elected president of Brazil, in replacement of Itamar Franco, who substituted Fernando Collor de Mello, dismissed by impeachment, over corruption charge, in 1992. 3 See http://alainet.org/active/3107&lang=es and http://www.binghamton.edu/fbc/120gp.htm , for some examples of articles calling attention to the left orientation of Lula and PT. Accessed on 22/08/2008 3 Lula‟s government; it has been originated from the Zero Hunger Project (SILVA, BELIK and TAKAGI, 2001), a document spontaneously produced by the NGO „Instituto Cidadania‟ – Citizenship Institute, in 2001, containing structural guidelines for the implementation of a food security policy in Brazil. The proposal was designed after one year of collaborative work between many ONGs‟ representatives, research institutes, unions, society organizations, social movements and experts (SILVA, BELIK and TAKAGI, 2001). Such achievement was possible because, since the early 90‟s, NGOs and civil society organizations had been involved with the hunger issue, which generated knowledge accumulation. Jose Graziano da Silva, one of the authors of the project was called to integrate Lula‟s administration, in 2003, to coordinate the implementation of Zero Hunger, as head of the newly created Special Ministry of Food Security and Hunger Combat – Ministerio Especial de Seguranca Alimentar e Combate a Fome – MESA. However, his path as minister of food security was not a smooth one. During the first year of his term, the policy had disapproval reports published every day, by diverse media channels, regarding the management model of the programme and its orientation (Almeida, 2005). Several critics charged the programme as merely „assistential‟, not effective at truly transforming unprotected individuals dependence condition and social exclusion. Criticism focused implementation and targeting methods of Zero Hunger‟s actions, their impact on poverty and inequality, and their possible „unintended negative impacts on labour force participation‟ (Soares, Ribas and Osorio, 2007: 3; Almeida, 2005). It had been largely suggested that the programme‟s conditional cash transfers, fundamental components of its strategic policy umbrella, produced a perverse side-effect on beneficiaries‟ motivation to engage in jobs, and make their own money, as they received free-of-efforts government aid (Ibidem, 2007). 4 It had also been argued that the programme was populist/paternalist, which offered aid without effectively changing the adverse excluding circumstances that made people starve, or without impacting local economies development, roots of hunger and poverty, as largely evoked by PSDB, main oppositionist party to PT‟s administration4. The intense spreading of these ideas, in 2003, began to weaken government‟s image and provoked a ministerial crisis. Zero Hunger, which had been assumed as a means of combating hunger, while delivering local economic development and fighting „assistentialism‟, and as a primary government priority, was being said to be everything it was designed not to. Because of such a crisis, Graziano stayed in the coordination of the programme only until January 2004, when a structural ministerial reform was carried out to integrate all social policies in one single agency, the Ministry for Social Development and Hunger Combat, under command of Patrus Ananias. Evidence, however, dismiss the criticism hypothesis pointed above. Soares, Ribas and Osorio (2007: 8), studying diverse Zero Hunger‟s conditional transfers evaluations5, found that „the labour market participation rate of treated adults was 2.6 percentage points higher than for nontreated adults‟, while „the participation rate of beneficiary women was 4.3 percentage points higher‟. Moreover, works of (Barros, 2007) have found that Zero Hunger‟s conditional transfers have been responsible for a relevant decrease in Brazil‟s inequality marks in the last five years. Taking into account the conclusions of Adelman (1977); Alesina and Perotti (1996); Benabou (1996); and Barro (1999), who found that high inequality negatively impacts economic growth in developing countries, it is possible to conclude that, while successful in reducing inequality, Zero Hunger is also contributing to local economic development. 4 See for example: http://www.psdb.org.br/assessoria_tecnica/documentos%5CINFORME_06_OProjeto_Fome_Zero_(04022003).pdf. 5 In addition, this article examines the impact of Zero Hunger transfers on real GDP growth per capita. Findings corroborate the results found by previous evaluations. A strong correlation marks the relationship between the two variables, meaning that the localities with higher rates of poor families assisted by the programme, in the period studied, showed, in general – deviant cases excluded –, higher GDP per capita performance, than less assisted localities. It also means that the variation of real GDP per capita in the localities studied was consistent, to great extent, with the variation of rates of poor families assisted there, year by year of the series. Such a finding allows for the inference that Zero Hunger has generated multiplier effects at local economies, through demand-side stimulation, which has generated growth without generating relevant inflation – since the variable studied is real GDP per capita. This which can be taken as a indicator that Zero Hunger has generated local economic development. This is an important mark; since other possible criticism focus of Zero Hunger could be based on Friedman‟s monetary framework, which predicts neutralization of any government aid, in the medium and long run, by effects of inflation. Of course, there is not yet a way to predict if predatory inflation is going to be, or not, a result in the long run. The available database at the moment is yet too short to allow reliable linear regression projections for future outcomes. Zero Hunger transfers have started in 2003 and GDP growth results of municipalities has only been treated by Brazilian Institute of Geography and Statistics6– IBGE until the year of 2005, so, basically, we had only three eligible years for analysing the variables correlation. The really strong correlation found between them, however, alleviate the potential uncertainty, relatively to the accuracy of the research results that could be raised as a result of the short series. 6 „Instituto Brasileiro de Georgrafia e Estatistica‟ 6 Together, all the mentioned findings form a strong evidence analysis base that permits careful conclusions about the effects of Zero Hunger in the fight against hunger and poverty. Contrarily to what the common sense seems to suggest, the programme cannot be proved as merely „assistentialist‟. Several researches have pointed important indicators that the programme has advanced in the effective combat of poverty and generated local economic development. 2. Theoretical background For its demand-side appeal, Zero Hunger is situated in the field of post-Keynesian growth theories, which has been be explicitly declared by Jose Graziano da Silva, former Minister of Food Security and Hunger Combat: “We want to generate a strong stimulator of food demand in the country. This is a KeynesianKaleckian policy that aims at giving impulse to local economies dynamics, taking advantage of their specific assets, as family-business agri-industries, for example. However, big metropolis will also feel this impact, with the multiplication of popular restaurants and with the „first employment‟ policies. Zero Hunger is a „social umbrella‟, but, above all, it presents the seed of a new development model that generates social inclusion, not assistentialism”7. Such a tendency presents what Singer (1997) has called the „swinging back of the Keynesian consensus pendulous‟. After the monetarist Keynesian critics, of potential neutrality of government intervention in the economy, because of inflation stimulation (Friedman, Schwartz, 1963); and after the great popularity of retrenchment ideas, with the famous agendas of Thatcher and Reagan (Pierson, 1994), and with the wide spreading of Washington Consensus influence 7 Interview with Jose Graziano on 01/12/2002 às 00:13, by Cerri, Alterthum, originally published in the transition government wesite, now avalilable in: http://www.midiaindependente.org/pt/blue/2002/11/42761.shtml . Accessed on 22/06/2008 7 around the world, the developing world found its way back to some fundamental Keynesian principles (Gore, 2000). The inaccuracy of some of Washington Consensus‟ prescriptions, in delivering economic development to many developing countries, animated the formation of an alternative „Southern Consensus‟, which presents a compound of more realistic development recipes, designed for addressing specific underdevelopment determinants experienced by such countries (Gore, 2000: 796 – 798). Such consensus, as explained by Gore, has not counted with the protocol and institutionalization that marked Washington Consensus; it has rather emerged from the bottom, as a synthesis of demand-side development policies taken simultaneously in diverse Latin American countries, as Brazil, Mexico, Chile, Ecuador and Colombia (Soares, Ribas and Osorio, 2007). Such policies emerged in these countries‟ agenda as a result of their own reflection about the specificities that constrained their economic development, instead of coming from external agents‟ development packages. Between those specificities, high inequality, within and between regions, poverty and „demand-side constraints to growth‟ can be pointed out as common problems (Gore, 2000:798; Henriques, 2000; Barros et al, 2001; Veiga 2000). In such conditions, post-Keynesian demand-side formulations recovered importance in LatinAmerican countries. Reliance on the potential ability of „exogenous changes in effective demand‟, in altering „the growth rate and the functional distribution of income, in both the short and the long run‟ (Barbosa Filho, 2004:16), has been inspiring policy, under the understanding that the economy had remained „below its potential output‟; or, in other words, had been „locked in a “slow-growth” because of demand factors‟ (Barbosa Filho, 2004:7). As argues the author: “Independently of the importance of supply issues, the emphasis of modern growth theory on 8 potential output tends to ignore the fact that capitalist economies may stay below their maximum output for long periods of time. Even if one accepts Say‟s law and assume that effective demand does converge to potential output in the long run, the adjusting period may be long enough to make a demand-led growth theory worthy for medium-run macroeconomics. If one rejects Say‟s law and assumes instead that it is potential output that converges to effective demand in the long run, the need for a demand-led growth theory becomes even more obvious”. (Ibidem, 2004:4) Neto and Vernengo (2004), and Davidson (2003) also converge in this understanding. Zero Hunger and the late social cash transfers of Fernando Henrique Cardoso‟s administration8 integrate such a development framework. It is the pendulous swinging back again towards government intervention reliance, and away from free markets‟ sufficiency, as has occurred in the past, in the beginning of the XX Century. After the second industrial revolution, Weberian „modern‟ societies engaged in a renewed capitalist mode of production, which experienced the exacerbation, followed by extreme criticism, of laissez-faire ideals (Keynes, 1926). In the decade of 1930, the economist John Maynard Keynes would change the history of capitalism, by proposing the macroeconomic theoretical formulations that would enable transition from laissez-faire capitalism to twentieth century welfare state, through a deep „paradigm shift‟ (Kuhn, 1970: 103, 150) in State‟s role in the economy (Keynes, 1936). His demand-side approach to economic growth fit so well with post-1929 Crisis policy needs all around the world, that, by the end of the II World War, the world came to experience what is today known as the „Keynesian consensus‟. The economic breakdown of 1929, and the massive unemployment that followed, claimed policy responses diverse from those usually supported by 8 See discussion on- 2.1 The Food Security issue in historical perspective in Brazil, pp 9/ 10 9 laissez-faire enthusiasts. The economic growth paradigm disseminated on that time, grounded on Say‟s Law supply-side reliability, could not present a solution. The real-world unemployment issue found on Keynes‟ General Theory of Employment, Interest, and Money (1936), and other related works, a new „against-crisis/ pro-economic-development‟ paradigm for State actuation, based on aggregatedemand-enhancer welfare (Behring, 1998; Linhares, 2005). The Welfare State had become the new paradigm of interaction between government and markets and the keystone of growth prospects for national economies. Such consensus would, however, deteriorate in the 1970‟s, after two consecutive oil shocks –1973/1979 – and a huge international economic crisis. As noted by Johnston (2001: 15), oil prices raised approximately 400%, combined with “the spectre of inflation which had already been raised by the wage pressures and strengthening of the trade unions as a result of a long experience of full employment”, created a generalized recession unsolvable by the Welfare State. Unemployment reached record rates since the II World War (Wijnbergen, 1985), and people began to disbelieve Keynes fiscal policy. By the 80‟s Keynesianism was unable to deal with or explain the low rate of net profit markets made or the high rates of inflation and unemployment. Once again, the world was hit with high unemployment rates, but this time another worldwide macroeconomic framework would advise policy: monetarism – to be further enforced by Washington Consensus (Williamson, 1990) advocates. Such formulation, which deeply influenced policy in the UK and the US, from the late 70‟s (Pierson, 1994), charged the installed Welfare State, as one of the main causes of the inflationary crisis. Inflation was blamed as the main responsible for the crisis, and the Welfare State the main responsible for inflation. As noted by Johnston (2001: 15), “Inflation became the nemesis of the Keynesian Consensus, and 10 inflation control the icon of the Washington Consensus”; it was the collapse of Keynesian consensus; of the Welfare State; and the rise of retrenchment. The pendulous swung back laissezfaire reliance again. „Populist macroeconomic policies‟, meaning lax fiscal policy, were understood „as the cause of the lost decade‟ to Consensus‟ fathers. (Bresser Pereira and Dall‟Acqua, 1991). Williamson‟s recipes had fiscal discipline as a strongest concern, followed by deregulation, liberalization, and privatization (Neto, Vernengo, 2004: 3). Such an emphasis related to the idea that „high fiscal deficits were behind macroeconomic instability‟, which generated inflation and „fears of default, leading to balance of payments problems‟ (Neto, Vernengo, 2004: 3). As pointed out by Davidson (2003: 3) „all ten reforms of the Washington Consensus (were) founded on classical economic theory that supports the laissez-faire doctrine as necessary to solve all our economic problems.‟ In Brazil, such a framework animated restrictive fiscal policy, during Fernando Henrique Cardoso – FHC‟s administrations (1995-2002), when economic development was believed to come as a result of successful stabilization policies, through inflation control and increased population purchasing power. This would impulse, in the medium run, diminution of poverty, and increased private investment, because of positive signs of rising credibility and reliability of the economy, with stabilization attainments and inflation control. Say‟s Law was restored and economic development was, again, expected to come as a result from supply-side adjustment (Ferrari Filho, 2003: 279 - 282). However, such strict stabilization policies, based on primary surplus and high interest rates, have proved a failure in many Latin American countries (Neto, Vernengo, and 2004:3). In Brazil, after huge recession and unemployment, arisen with the stabilization programme, during FHC‟s second term in office (1998 - 2002), Washington 11 Consensus prescriptions became nationally discredited as realistic economic growth inducer (Bailey, Heinz, 1999; Neto, Vernengo, 2004). Thus, the pendulous has been, again, moving way from supply-side growth approaches; postKeynesian approaches, in turn, start again to gain strength and empirical application in Latin America, and Brazil is special As this article intends to demonstrate, in Lula‟s administration, a new concept of developmental state, which focuses essentially on demand-led local economic development of lagging regions. 3. Hypothesis Demand-side stimulation policies can deliver economic development to countries like Brazil, where high levels of poverty and inequality have created „slow-growth lock- in‟ effects, because of demand factors (ver outras referencias em Barbosa Filho) (Barbosa Filho, 2004; Barro, XXX; Perotti,1996; Benabou, 1996; Gore, 2000;; Neto, Vernengo, 2004; Davidson, 2003; Bailey, Heinz, 1999). 4. Zero Hunger and demand-led local economic development 4.1 The Food Security issue in historical perspective in Brazil During Itamar Franco presidency (1992 - 1994), under the command of civil society organizations, a set of initiatives designed to promote food security was implemented. The most relevant were the campaign „Ação da Cidadania contra a Fome, a Miséria e pela Vida‟ – Citizenship Action Against the Hunger, the Misery and in Favour of Life, in 1993 and 1994; the creation, in 1993, of the National Council of Food Security – „Conselho Nacional de Segurança 12 Alimentar‟ (Consea), by Franco – to be later restored by Lula in 20039; the elaboration, in 1993, of the Hunger Map – Mapa da Fome, and the National Plan Against Hunger – „Plano Nacional de Combate à Fome‟, by the Institute of Applied Economic Research – Instituto de Pesquisa Economica Aplicada – IPEA; and the realization of the I National Conference of Food Security – Conferência Nacional de Segurança Alimentar, in 1994 (IPEA, 2004: 37). Other initial food security initiatives were taken during the 60‟s, when popular restaurants were installed and nutritional surveys were conducted by the Social Security Food Service – Serviço de Alimentação da Previdência – SAP, finding that workers nutrition was dreadful. Some complimentary actions started to be prospected, when the military dictatorial regime (1964 – 1985) interrupted the food programme. Popular restaurants were closed and hunger left the agenda, leaving nothing more than a residual, clientelistic/paternalistic food basket distribution policy, to be carried out by the militaries until 1985. In 1986, in Jose Sarney‟s government, with the re-democratization, a new food security initiative took place, the Milk Stamps – Tíquete do Leite, which raised national demand in more than 15%, with the distribution of 5 million litters /day. The per capita consume of milk moved from 94 litters /year to 104 litters /year, but corruption and deviations charges made the programme nothing different from the „assistentialist‟/ clientelistic food baskets of previous years. With the „neo-liberal‟ trends of Fernando Collor de Mello‟s administration (1990 - 1992), however, the Milk programme was extinct in 1991 – to be restored only in Lula‟s office, in 2004, under renewed management structure (Cerri, Santos, 2002). 9 The CONSEA was re-established by Lula through Law 10.683/2003. Available in: https://www.planalto.gov.br/ccivil_03/Leis/2003/L10.683compilado.htm 13 In the same year of 1991, the oppositionist Labour Party (PT), which had formed a „parallel government‟ to monitor, and to formulate alternative policies to Collor‟s government, presented the first proposal of a National Policy of Food Security to Brazil. The work reaffirmed the role of the State and of national planning for defeating development obstacles. Hunger was considered an emergent manifestation of historical socio-economic distortions, thus, requiring a bunch of interrelated policies that would move away from mere „assistentialism‟. The underlying framework was that the invisible market hand, in absolute glory in official circles, in that time, was unable to beat income concentration/ inequality, land conflicts and regional disparities. Hunger was the resultant of the combination of such deeply grounded socio-economic issues, and any policy effort intending to really deal with the problem, needed to extrapolate „assistentialism‟ and pursue actions aimed at delivering sustainable local economic development. Included in the proposal were objectives of medium and long run as well as emergency actions, as land reform, support to familiar agriculture, to agri-industries development, and to agricultural goods commercialization; and creation of popular restaurants and distributions of food to the extremely unprotected (Cerri, Santos, 2002). The parallel government‟s project also proposed the institution of a Special Secretary of Food Security, to be attached to the Presidency, and to coordinate all government actions around hunger strategic objectives. In addition, it previewed an institutional link with the civil society through the installation of a Food Security Council – CONSEA, to be leaded by the president, and composed by representatives of all government levels – national, regional (states) and municipal –, as well as community leaders and social entities that would help coordinating medium and long run actions. Two years later, such propositions saw a brief impact; the CONSEA was created in 1993, by Itamar Franco, to coordinate the actions of a Plan to Combat 14 Misery and Hunger – Plano de Combate à Fome e à Miséria, announced by the government. However, with the immediate success of the stabilization plan – „Plano Real‟, between 1994 and 1998 – Fernando Henrique Cardoso first term of office –, another trend towards invisible market hands reliance took place. Under influence of Washington Consensus prescriptions, the government extinguished the CONSEA, in 1995, after first animating results of inflation control. In substitution, the Solidarity Community Council – Conselho Comunidade Solidaria was created to concentrate the elaboration of policies aimed at addressing poverty in general (Cerri, Santos, 2002). Washington Consensus prescriptions were sceptics to social welfare as legitimate government intervention in developing countries, as Brazil, where high inflation and external debt operated (Kuczynsky, 2004: 29, 30; Birdsall, Szekely, 2004: 54 - 57); and where social welfare was traditionally associated with, clientelistic relations between authoritarian governments and individuals, subject to corruption and patrimonialism (Almeida, 2005; Medeiros, 2001; Malloy, 1979). That style of Welfare State, based on patrimonialism and corporativism, with cooptation of labour organizations by the government, became largely recognized by its culture of dependence, or „assistentialism‟. The term, used to describe paternalist/clientelistic social welfare, distributed by giant, expensive, corrupt, inefficient, ineffective and process driven, welfare states, became a profanity in the 90‟s Washington Consensus reforms‟ glossary (Birdsall, Szekely, 2004: 54 - 57). Directly attributable to the populist and paternalist character of the military dictatorial regime of 1964 – 1985, and of Varga‟s Era (1930 - 1945), Brazilian installed Welfare State was included between reforms‟ great priorities to be implemented during Cardoso‟s administrations (1995 - 2002), which were strongly influenced by Washington Consensus ideas. 15 Cradoso‟s reforms followed international tendency towards reduction of public expenditure growth rates; introduction of beneficiaries‟ selectivity mechanisms – focalization; and introduction of public-private policy management instruments (Vianna, 2000:62); as well as decentralization, participation of beneficiaries in decision-making processes, combat against cronyism in the use of welfare resources, rationalization and more efficient spending, and greater equity in the provision of benefits and social services (Almeida 2005:2). In this context, „minimum income‟ policies proposals experienced a strong revival (Linhares, 2005). Such ideas were strongly linked with the actuation of the Solidarity Community Council presided by Cardoso‟s wife, the sociologist Ruth Cardoso10. Considerable reforms were implemented in the social field, both in institutional and philosophical aspects (Almeida, 2005). The Solidarity Community served as intellectual supplier of social policy frameworks that would be inaugurated during Fernando Henrique‟s administrations. Many of them were associated with focalized „minimum income‟ mechanisms. As noted by Almeida: „a set of programs were created (...), which would include rural retirement system and non contributive social assistance programs, such as: Bolsa-Escola- School Allowance, Erradicação do Trabalho Infantil – Eradication of Child Labor, Bolsa-Alimentação - Food Allowance, Auxilio-Gás - Gas Subsidy, Agente Jovem – Youth Program, Programa de Saúde da Família- Family Health Care Program, Programa de Apoio à Agricultura Familiar – Family Farming Support Program, plus the Alvorada Project, supporting the 2.361 Brazilian towns with the highest rates of inhabitants living below the poverty line. All these programs consist of direct transference of monetary income to the beneficiaries, centrally managed by the Federal Government. Thus, the basic food basket distribution programs (practiced during military dictatorial times), which were often subject to cronyism, were eliminated.‟ (Almeida, 2005). 10 Under the competence of the newly created Solidarity Community Council (1995), social policy gained a publicprivate partnership orientation and an intellectual agenda. 16 In the meanwhile, NGOs, which were called to participate in the social agenda, by the Solidarity Community, also developed their own frameworks for social policy in the country. In 2000, the NGO Citizenship Institute – „Instituto Cidadania‟ reintroduced the hunger issue into the social agenda, with the proposal of a national food security policy, under the label of Zero Hunger Project , which had Jose Graziano da Silva11 as one of its coordinators (Silva, Belik and Takagi, 2001). This version absorbed many of the contributions proposed by the parallel government, including the re-institution of the CONSEA, besides having received other expert contributions in the course of one year. In 2002, Graziano was invited to coordinate Lula‟s campaign proposal for agriculture and subsequently to join Lula‟s transition team12 for economic development. On 01/01/2003, he was nominated Lula‟s Special Minister of Food Security and Hunger Combat 13 and received the task of coordinating the first implementation arrangements necessary to bring Zero Hunger project out of the paper and into action. Graziano‟s greatest challenge was to aggregate Cardoso‟s direct transfer policy innovations (Almeida, 2005) to the Zero Hunger comprehensive programme. Because he was not very successful in such a task, in 2004, programme‟s coordination was transferred to the Ministry for Social Development, under command of Patrus Ananias, where such integration was made possible. 11 José Graziano da Silva, undergraduate as an agricultural engineer, is PhD in Economics, and in Applied Economics – University of Campinas (Unicamp). He is nowadays a permanent Professor of the Economics Institute of the University of Campinas (Unicamp), actuating specially in Agricultural Economics, and Coordinator of the Master in Economic Development, Space and Environment of the school. Graziano has also accomplished a postdoctoral degree at the Institute of Latin American Studies at University College London. He has published five books, between them “The new dynamics of Brazilian agriculture” , “The new Brazilian rural”, and “Familybussiness agriculture technology” . He coordinated the formulation of the Zero Hunger project in 2000/2001, at the NGO Instituto Cidadania, and on 01/01/2003 was nominated Lula‟s Minister of Food Security and Hunger Combat. 12 The transition team refers to a group of Lula‟s candidature head leaders, associated with the Labour Party (PT), who supported Lula‟s presidential campaign and were tasked to take care of the initial management arrangements required for a smooth presidential succession in 2002/2003, when Lula substituted Fernando Henrique Cardoso in the Presidency of Brazil. 13 Accessed on 09/08/2008. Available in: http://www.vermelho.org.br/governo_lula/09.asp 17 Cardoso‟s transfer policy structure formed, thus, the essential base from which Lula‟s Zero Hunger has been derived (Almeida, 2005). In that sense, it can be argued that Zero Hunger has been formulated within the same social policy framework that emerged in reaction to the clientelistic - „assistantialist‟ military model, inaugurated during Cardoso‟s years. This framework had focalization – to attain those really unprotected people – sustainability, and local economic development – for further beneficiaries‟ independence of social welfare – as main inspirational fundamentals, which have been assumed by Zero Hunger (Ibidem). Thus, if Cardoso‟s transfer policies can be understood as a reaction to „assistentialism‟, disseminated in the country by dictatorial regimes, for so many years, (Ibidem), also can Zero Hunger. 4.2. Zero Hunger nowadays 4.2.1 Objectives and theoretical design Accordingly with MDS authorities: “Fome Zero (Zero Hunger) is a strategy of the Federal Government to guarantee the human right of access to adequate food for those who lack it. That strategy is situated in a context of promotion of food and nutritional security in an attempt to achieve social inclusion and citizenship rights for the population most vulnerable to hunger.”14 Such a general statement does not offer much of an explanation of programme‟s real specificities, which differentiate it from the „assistentialist‟ food baskets programme, operated by military regime. However, there is an essential difference between both policies. While the latter consists exclusively of distribution of food, the former‟s main action, „Bolsa Familia‟ – Family Grant, consists of cash transfers for beneficiaries to buy food themselves, within their local 14 Ministerio do Desenvolvimento Social e Combate a Fome – MDS. Livreto Fome Zero – English Version. Brasilia. 2004. Available in: http://www.fomezero.gov.br/publicacoes/resolveUid/27cc25ace852bb50dc9b5a0d3f73c262 , accessed on 20/06/2008 18 markets. As explained by Jose Graziano15, Zero Hunger primary coordinator, one of the project‟s main pillars „is the stimulation of aggregate demand at the local level‟. The link between the monetary transfers and the acquisition of food at local markets was affirmed as a structural requisite of the project, as well as the connection of transfers‟ conditionality with long run human development generators, as education and health care. From the beginning, Zero Hunger was conceptualized through a comprehensive set of complimentary actions aimed at addressing different, but interconnected, chunks of hunger issue. The project has been formulated to combine assistance to completely unprotected people, living in absolute misery and incapable of changing their life conditions without emergency aid support, with more structural interventions driven to address specific structural causes of hunger, which would really help them overcome their disadvantaged life conditions (Silva, Belik And Takagi, 2001). This can be understood as the main purpose of Zero Hunger, announced through the famous sentence repeated by President Lula in diverse occasions: “It is necessary to give the poor a fish, but at the same time teach them how to fish” 16. This symbolic declaration reflects concern with the complexity involved in the treatment of hunger. The problem has been identified as a result of lack of income, unemployment, missing food markets, lack of education and skills, territorial isolation, poor food logistics distribution, 15 On an official report of Lula‟s government transition team, published on its official website, on 01/12/2002. The website of the transition team used to be http://transicao.lula.org.br, but as it is currently unavailable, the complete report can be accessed in: http://www.midiaindependente.org/pt/blue/2002/11/42761.shtml . Accessed on 09/08/2008. 16 In President Lula‟s own words: “Teaching how to fish” means creation of employment in regions stricken by hunger and poverty, investment on improvement of living conditions of such population; means to imrpove access to quality education, decent health, wages and income; it means to promote agrarian reform, to give incentives for family farming; to stimulate agriculture co-ops, small loans (microfinance) and alfabetization; it means to prepare people for a profession or a job; it means to create sufficient conditions for them to be able to support themselves. In short, teaching how to fish means once and for all to definitely free millions of Brazilians from the humiliation of hand-out food baskets. It means (making sure evyone can) to make everyone, absolutely everyone, be able to feed themselves, without help from the others for that matter”. Available in: http://www.brazil.org.uk/socialissues/zerohunger.html . Accessed on 30/06/2008. 19 among others (Silva, Belik And Takagi, 2001). In short, it‟s been understood that the state of „hunger‟ involves more complex deprivations, than strictly the inability to consume food; it is fatally linked with deeper aspects of the social exclusion in Brazil (MDS, 2004; Dedecca, Barbieri, 2003). So, gradually, what was initially a program driven to honour president Lula‟s main campaign promise: to make, at least, every Brazilian be able to have a decent meal every day, turned to be a complex network of interconnected actions aimed at shifting the social exclusion and poverty attributes, of approximately 11, 2 million nutritionally unsecured families, or 46 million people, which led them to starve (Dedecca, Barbieri, 2003). Illustration: 4.2.2 Criticism and management reformulation In accordance with the diagram above, a series of interventions were proposed such as: 20 “transference of monetary income „Cartão-Alimentação‟ - Food Card, distribution of basic food baskets, creation of food canteens for the poor and food banks, purchasing food from family farms, nutritional education programs, drilling artesian wells, building popular housing projects, milk distribution and basic education programs.” (Almeida, 2005: pp). However, as pointed out by Almeida, such an ambitious purpose made Zero Hunger lack „substance and clearly defined objectives‟, in the beginning. Also, it seemed to ignore the cash transfers „social protection network established by the previous government‟. Moreover the programme was argued to have been „precariously implemented in a centralized manner, as the federal government got directly involved in the cities, skipping state governments and participatory institutions created beforehand‟ (Almeida, 2005: pp). In addition, several critics charged the programme as merely „assistential‟. Its targeting methods were doubted to impact poverty and inequality roots, while its cash transfers were said to produce a perverse side-effect on beneficiaries‟ motivation to engage in jobs (Soares, Ribas and Osorio, 2007: 3; Almeida, 2005). It had also been argued that the programme was populist/paternalist, which offered aid, without effectively changing the adverse excluding circumstances that made people starve, or without impacting local economies development, as evoked by PSDB, main oppositionist party to PT‟s administration17. The intense spreading of these ideas, in 2003, began to weaken government‟s image and provoked a ministerial crisis. Zero Hunger, which had been assumed as a means of combating hunger, while delivering local economic development and fighting „assistentialism‟, and as a primary government priority, was being said to be everything it was designed not to. Because of such a crisis, Graziano stayed in 17 See for example: http://www.psdb.org.br/assessoria_tecnica/documentos%5CINFORME_06_OProjeto_Fome_Zero_(04022003).pdf. 21 the coordination of the programme only until January 2004, when a structural ministerial reform was carried out to integrate all social policies in one single agency, the Ministry for Social Development and Hunger Combat, under command of Patrus Ananias. The Special Ministry for Food Security and Hunger Combat was extinct and Jose Graziano became Lula‟s assessor. With the creation of the Ministry for Social Development and Hunger Combat – MDS, Zero Hunger suffered deep management reform. Programme Bolsa Familia – Family Grant was created to tie together diverse fragmented social transfers in place – Zero Hunger‟s Food Card and transfer programmes of Cardoso‟s administration18 –, with the reformulation of the „Cadastro Unico Federal‟ – „Federal Single Registry System‟, a social policy managerial tool created during Cardoso‟s years, by Decree19 nº 3.877/ 2001 20. Family Grant, which, then, became Zero Hunger‟s main action, also substituted all transfer programmes operated by states and municipalities; such government instances were called to integrate the management design of Family Grant, instead of operating the transfers by their own. Such changes aimed bringing more rationality to Zero Hunger. Family Grant’s reasonable success in delivering such a purpose made it Lula‟s most celebrated social policy (Almeida, 2005), to the extent that many people don‟t even know Family Grant is a Zero Hunger‟s action. Many treat it as an independent programme. 4.2.3 Actual management structure Today, Zero Hunger constitutes a single umbrella that includes almost all social policies managed by MDS, a series of different complementary policies aimed at combating poverty 18 To a list of Cardoso‟s cash transfer programmes see, on page 10, the transcription of Almeida (2005). Available in: http://www.planalto.gov.br/ccivil_03/decreto/2001/D3877.htm , accessed on 20/07/2008. 20 Family Grant was established by Law 10.836, with the main purpose of unifying management and execution procedures of all cash transfers operated by the Federal Government. Its main tool is the „Federal Single Registry System‟, which counts with municipalities‟ and state‟s cooperation for accuracy (Law 10,836, Art. 1o). Available in: http://www.planalto.gov.br/ccivil_03/_ato2004-2006/2004/lei/l10.836.htm 19 22 through a demand-led growth intervention. One single database of potential beneficiaries was developed by full implementation of MDS‟s national poverty record, „Cadastro Unico‟ – „Single Registry System‟, with cooperation with municipal authorities21. Potential beneficiaries are those families living in extreme poverty (with R$ 60.00 per capita income per month or less – approximately $ 38.6) and in poverty (with per capita income between R$ 60.00 and R$ 120,00 – approximately $ 77.2)22. Once registered, families become eligible for receiving support from all Zero Hunger actions, depending on their specific needs. Family Grant, the principal action, reaches today 11,043,076 poor Brazilian families out of 11,102,770 total poor families in the country, as estimated by PNAD 2004, having transferred a total of R$ 8,965,499,608.00 in 200723, by delivering cash aid of R$ 58.00 + extra R$ 18.00/ per children, or extra R$ 30.00/per teenagers, held in school, at a maximum of three kids assisted per family, to families living with R$ 60.00 per capita income/month or less (extreme poverty); and cash aid of just R$ 18.00/ per children, or R$ 30.00/per teenagers, held in school, to families living with per capita income of R$ 120.00 tops (Law 10,836, Art. 2o). 4.2.3.1 Actions 21 More information on: http://www.mds.gov.br/bolsafamilia/cadastro_unico/o-que-e-1/ . For latest updates on the Cadastro Unico specifications, see Decree 6135/2007, available in: http://www.planalto.gov.br/CCIVIL/_Ato20072010/2007/Decreto/D6135.htm , accessed on 12/08/2008. 22 Accordingly to Family Grant's Management Report 2007, the poverty and extreme poverty parameters used by Ministry for Social Development and Hunger Combat – MDS were formulated in accordance with studies conducted by the Brazilian Institute of Statistics and Geography – IBG) and the Institute of Applied Economic Research – IPEA , both part of the Ministry of Planning. Such parameters are expressed on Family Grant's Law 10,836/ 2004, and on Family Grant's Decree 5,209/2004. The three mentioned documents were accessed on 13/08/2008, and are available respectively in: http://www.mds.gov.br/servicos/relatorio-gestao/2007/senarc/resolveUid/96f7cc7f855d26b70ee835bd5d2f841b ; http://www.planalto.gov.br/ccivil_03/_ato2004-2006/2004/lei/l10.836.htm ; and: http://www.planalto.gov.br/Ccivil_03/_Ato2004-2006/2004/Decreto/D5209.htm# 23 MDS. Bolsa Familia.‟ “Relatório Consolidado da Folha de Pagamento”, extracted from the database of the online monitoring system of the „Bolsa Familia‟ transferred resources – SIBEC, available in: https://www.beneficiossociais.caixa.gov.br/ , but with restricted access to local, regional and national managers of the program, as well as members of fiscalization and inspection agencies at local and national instances agencies accounting and control agencies. The complete original data is shown on Annex III. 23 Zero Hunger actions are organized within four main blocks: Food Access; Strengthening of Familiar Agriculture; Income generation; and Partnership Promotion and Civil Society Mobilization I – Food access a) Conditional cash transfer: • Bolsa Família – Family Grant b) Nutritional programmes: • National School Food Programme • Food for ethnic groups • Rainwater cisterns • Popular restaurants • Food banks • Urban agriculture/Community gardens • Food and Nutrition Surveillance • Distribution of Vitamin A (Vitamin A+) • Distribution of Iron (Iron Health) • Food and nutrition for indigenous people • Food and nutrition education for consumption • Healthy Diet/Promotion of Healthy Habits c) Taxes incentive/Inducement: • Workers food program d) Tribute reduction: • Basic food basket tax reduction 24 II – Strengthening family agriculture • National Programme for strengthening of family agriculture • Harvest Insurance • Familiar Farm Agriculture Insurance • Food Procurement Programme (PAA) III – Income generation • Social and professional qualification • Solidarity economy and productive inclusion • Food and nutrition security and local development consortium (Consad‟s) • Poor communities‟ productive organization (Produzir) • Development of cooperatives of recyclable material collectors • Guided productive microcredit IV – Partnership promotion and civil society mobilization • Family Houses - Social Assistance Reference Centres (CRAS) • Social mobilization and education for citizenship • Social and public agents‟ mobilization • Volunteer work and donations • Partnership with private sector and NGO‟S • Social development councils Source: MDS. (2004) “Livreto Fome Zero”24 24 See Anex I for details about each action 25 4.2.3.2 Involved Agencies • Ministry of Social Development and Fight against Hunger – MDS: Responsible for Coordination and implementation of programme. • Ministry of Agrarian Development – MDA: Responsible for of „Strengthening family agriculture‟ and Urban agriculture/Community gardens. • Ministry of Health – MS: Responsible for of health care conditionality. • Ministry of Education – MEC: Responsible for school attendance conditionality and School Food Programme. • Ministry of Agriculture, Livestock and Food Supply – MAPA: Responsible for Harvest Insurance and Familiar Farm Agriculture Insurance. • Ministry of Labor and Employment – MTE: Involved in implementation of Workers food program. • Ministry of National Integration – MI: Responsible for managing institutional linkages between national, states‟ and municipalities authorities. • Ministry of Planning, Budget and Management – MP: Involved in general management aspects of Pluriannual Plan – „Plano Plurianual‟ – PPA formulation and periodic revisions; and Budget issues. • Ministry of Finance – MF: Responsible for allocation of resources and Basic food basket tax reduction. • Office of the Civil Staff of the Presidency of the Republic – PR: Responsible for institutional coordination within the federal government. 26 • General Secretariat of the Presidency of the Republic/Communication Secretariat – PR: Responsible for general communication and marketing strategies. • Offices of the Special Advisors of the Presidency of the Republic – PR: Responsible for presidential interlocution. • National Food and Nutrition Security Council – Consea: Responsible for interlocution with state‟s and municipalities‟ food security councils interlocution between the federal government and NGOs, civil society organizations, unions, specialists involved in the national food security policy. Source: MDS. (2004) “Livreto Fome Zero” Illustration: 5. Evidence Analysis In order to verify if Zero Hunger is actually succeeding in delivering solutions for both the most emergent effects of misery, as hunger and indigence, as well as its main substantial causes, 27 related to localized low local economic development, this paper brings to light current GDP performance data of some of Brazilian poorest municipalities supported by Zero Hunger. In the case study of 23 municipalities of „Maranhao‟, a Northeast state, this article tests the correlation between Zero Hunger‟s Family Grant cash transfers and GDP per capita municipal performance between 2003 and 2005. First, though, we expose some of the numerous Family Grant recent evaluation findings, conducted by prestigious research institutes at the national and international levels. 5.1 Previous Research One important finding that has been registered refers to Zero Hunger‟s Bolsa Familia transfers relation with reduction of inequality as found by (Barros, 2007; Lindert et al., 2007) As asserted by (Lindert et al., 2007:3): „BFP has achieved some important efficiency gains and is showing exceptional targeting results, with 73% of transfers going to the poorest quintile and 94% going to the poorest two quintiles. Furthermore, studies have shown that the BFP played a significant role in the recent reduction in income inequality, which in turn has been instrumental in reducing extreme poverty. Indeed, results of the annual household survey (PNAD 2004) show that the BFP accounted for a significant share (20-25%) of Brazil‟s recent (and impressive) reduction of inequality and 16% of the recent fall in extreme poverty‟ Such a finding is also strongly supported by (Barros, 2007; and Medeiros, Britto and Soares, 2008). This is important because Barro (1999), Perotti (1996) and Benabou (1996) have found that economic development tends to fall with greater inequality – Barro (1999) went further to show that this is specially a reality when per capita GDP is below around $2000 (1985 U.S. dollars), 28 which is the case of many Brazilian localities, as shown on section 5.2. Moreover, Medeiros, Britto and Soares (2008), in accordance with Soares, Ribas and Osorio (2007: 8), argue that evidence findings do not support the hypothesis of labour market participation discouragement for Family Grant beneficiaries, besides other positive effects measured in education and health care poor attainments. 5.2 Maranhao Case Study 5.2.1 Methodology 5.2.1.1 Selecting criteria: Where to drive attention to? The criterion used for selection of municipalities to be investigated was Brazilian municipalities with highest levels of people living in extreme poverty, because, in theory, these were to be in Zero Hunger‟s priority frontline (Silva, Belik, Takagi, 2001). Quite a few works could be found in the social policy literature regarding methodologies for identification of which conditions characterize extremely poor people in Brazil and where are they located. We used the Hunger Map‟s ranking of national misery organized by the Social Policy Centre of Fundacao Getulio Vargas – FGV (2004)25, based on data from IBGE26‟s Brazilian 2000 Demographic Census. They have organized a ranking containing the 50 most and 50 least Brazilian municipalities affected by poverty, as shown on table 1 below. On the left side are shown the municipalities with highest levels of poverty, on the right side the 50 localities with lowest levels of poverty, sorted by their position in the ranking. The initials on the right side of each municipality poverty rate are the 25 Published in: Fundacao Getulio Vargas – FGV, Centro de Politicas Sociais. Mapa do Fim da fome II:Miseria Nacional. Rio de janeiro, 2004. Available in: http://www.fgv.br/cps/Nacional/Apresentacao.htm , accessed on 01/08/2008. 26 Brazilian Institute of Geography and Statistics – Instituto Brasileiro de Gegrafia e Estatistica. 29 abbreviations of the federative state the municipality belongs to. Table 1 50 poorest localities in Brazil - (%) of people leaving below the indigence line - R$ 79.00*per capita/ month STATE % People in misery 95.32 1 Centro do Guilherme MA 94.56 2 Jordão AC 93.75 3 Belágua MA 91.95 4 Pauini AM 91.37 5 Santo Amaro do Maranhão MA 91.16 6 Guaribas PI 91.07 7 Novo Santo Antônio PI 90.59 8 Matões do Norte MA 90.41 9 Manari PE 90.18 10 Milton Brandão PI 89.92 11 Cantanhede MA 89.80 12 São Miguel do Fidalgo PI 89.50 13 Morro Cabeça no Tempo PI 89.03 14 Maranhãozinho MA 88.67 15 Ipixuna AM 88.66 16 São Benedito do Rio Preto MA 88.61 17 Tufilândia MA 88.50 18 Presidente Juscelino MA 88.48 19 Santa Rosa do Purus AC 88.28 20 Santana do Maranhão MA 88.15 21 Porto de Pedras AL 88.13 22 Lagoa do Tocantins TO 88.12 23 Traipu AL 88.07 24 Cachoeira Grande MA 88.05 25 Araguanã MA 88.01 26 São João Batista MA 87.98 27 Poço das Trincheiras AL 87.65 28 Acauã PI 87.52 29 Paulino Neves MA 87.50 30 Cajari MA 87.26 31 Carnaubeira da Penha PE 87.20 32 Pedro do Rosário MA 87.17 33 Carrasco Bonito TO 87.16 34 Presidente Vargas MA 86.94 35 Lagoa Grande do Maranhão MA 86.94 36 São José da Tapera AL 86.84 37 Betânia do Piauí PI 86.79 38 Guajará AM 86.65 39 Olivença AL 86.63 40 São Roberto MA 86.53 41 Cajapió MA 86.52 42 Apicum-Açu MA 86.48 43 Formosa da Serra Negra MA 86.45 44 Campo Largo do Piauí PI 86.42 45 Morro do Chapéu do Piauí PI 86.30 46 Uiramutã RR 86.27 47 Nina Rodrigues MA 86.26 48 Tapauá AM 86.25 49 Fonte Boa AM 86.25 50 Senador Rui Palmeira AL Source: CPS/IBRE/FGV from data of 2000 Demographic Census /IBGE 50 localities with lowest levels of poverty in Brazil - (%) of people leaving below the indigence line - R$ 79.00*per capita/ month Harmonia Presidente Lucena Águas de São Pedro % People in misery 1.16 1.52 2.55 Nova Bassano Monte Belo do Sul São José do Hortêncio Morro Reuter Paraí Carlos Barbosa Alto Feliz São Caetano do Sul 2.86 2.91 2.91 2.95 3.00 3.22 3.35 3.36 Imigrante São Vendelino Nova Pádua Feliz Vila Flores Flores da Cunha Vale Real Colinas Treviso Dois Irmãos Brusque Nova Petrópolis Lindóia 3.44 3.61 3.64 3.87 3.90 3.96 3.96 4.04 4.29 4.48 4.71 4.88 4.89 Nova Veneza Anta Gorda Garibaldi Saltinho 5.19 5.24 5.30 5.30 Vila Maria Picada Café Gramado Jaú 5.30 5.41 5.50 5.51 Tupandi Veranópolis Laurentino Fernando de Noronha Timbó Holambra 5.51 5.51 5.52 5.56 5.57 5.60 Luiz Alves Vista Alegre do Alto 5.65 5.73 Jaraguá do Sul Bento Gonçalves Presidente Getúlio Cerquilho 5.81 5.84 5.85 5.87 Pomerode Ivoti Pareci Novo Guaporé Teutônia Arroio do Meio 5.97 5.98 6.07 6.15 6.16 6.19 STATE RS RS SP RS RS RS RS RS RS RS SP RS RS RS RS RS RS RS RS SC RS SC RS SP SC RS RS SP RS RS RS SP RS RS SC PE SC SP SC SP SC RS SC SP SC RS RS RS RS RS * The amount of R$ 79.00), which was defined based on Sao Paulo prices, presents the indigence line estimated by Ferreira, Lanjouw and Neri (2003). 30 The reason why FGV‟s work was selected is that it fits well with Zero Hunger‟s indigence parameters, in use. As defined by the formulators of Bolsa Familia – Family Grant, Zero Hunger‟s main policy, benefits would be driven to families that earned R$ 120.00 per capita/ month or less, being higher benefits to those earning R$ 60.00 per capita/ month or less; the latter being understood by MDS as the indigence line, and the former the poverty line, (Law 10,836/2004). FGV‟s work uses Ferreira, Lanjouw and Neri (2003)‟s indigence line of R$ 79.00 per capita/month, for its considerations regarding levels of poverty held by different municipalities and regions of Brazil, value well situated between the R$ 60.00 and R$ 120.00 MDS‟s latest poverty marks. Thus, FGV‟s conclusions of places most and least affected by indigence tend to be consistent with government measurements and potential Zero Hunger attention. Accordingly to FGV‟s „Hunger Map‟, Northeast is the Brazilian region, and Maranhao is the state, with highest levels of poverty, to which Zero Hunger should drive prior attention. Data from IBGE‟s PNAD 2004 – National Household Sample Survey (Pesquisa Nacional por Amostra de Domicilios)27 also helped such a conlusion28. For this reason, the present research‟s case study focused analysis on Northeast and Maranhao. The municipalities selected were all those of Maranhao included in FGV (2004)‟s 50 poorest municipalities ranking, as listed on table 2: Table 2 Position in the ranking Maranhão (%) Rate of people living below the indigence line 1st 3rd Centro do Guilherme Belágua 95.32 93.75 5th Santo Amaro do Maranhão 91.37 27 Available in: http://www.ibge.gov.br/home/estatistica/populacao/trabalhoerendimento/pnad2004/suplalimentar2004/comentario.p df . Accessed on 30/07/2008 28 Details are shown in the Section 6.2 „Principal findings‟ – 6.2.1 “What is about the Northeast?”. 31 8th Matões do Norte 90.59 11 th Cantanhede 89.92 14 th Maranhãozinho 89.03 th São Benedito do Rio Preto Tufilândia Presidente Juscelino Santana do Maranhão Cachoeira Grande Araguanã São João Batista Paulino Neves Cajari Pedro do Rosário Presidente Vargas Lagoa Grande do Maranhão São Roberto Cajapió Apicum-Açu Formosa da Serra Negra Nina Rodrigues 88.66 88.61 88.5 88.28 88.07 88.05 88.01 87.52 87.5 87.2 87.16 86.94 86.63 86.53 86.52 86.48 86.27 16 17th 18th 20th 24th 25th 26th 29th 30th 32nd 34th 35th 40th 41st 42nd 43rd 47th 5.2.1.2 Counterfactuals Our intention was, at first, to compare, in a time series, GDP performance of eligible municipalities included in the program with others, as counterfactuals, that were to be included, but had not yet. However, it was not possible, since the implementation strategy of the program was not to elect a priority list of poor municipalities, which would have all of their indigent families assisted, and then gradually expand support to more and more localities, year by year, as we first figured it was. In fact, the program was implemented, incrementally, adapting previous programmes‟ structures, which were spread out within almost all Brazilian municipalities, reaching a small number of poor families in each locality, though. Facing these circumstances, an alternative counterfactual methodology had to be adopted in the present research. 32 GDP per capita data, from IBGE‟s 1999- 2005 series29, was collected for all municipalities listed above and results were compared between two groups; group A, on table 4, containing Maranhao sample‟s municipalities with most expressive incidence of Family Grant‟s transfers – highest ratios of localities‟ poor families included in the programme; and, group B, on table 5, containing Maranhao sample‟s municipalities with lowest incidence of Family Grant‟s transfers – lowest ratios of localities‟ poor families included in the programme –, as counterfactual elements. To divide Maranhao‟s sample between samples A and B, average rates of protected families of all municipalities were calculated for each year, from the original data provided by SENARC/MDS30, which contained number of poor families existent in each municipality of the sample31; number of families supported by Bolsa Familia in each of them, from 2003 to 2007; and the respective amount of money transferred by the central government to the families assisted. From this data, we obtained the ratios of families covered in each municipality in each year for series 2003-2007, and annual average rates of protected families of the sample. The outliers, with approximately 20% less of secured families than the average amount, in at least one year of the sample, were included in group B, taken as counterfactuals to those that had families supported rate close or above the sample‟s average annual rate. These last ones were included in group A. Tables 4 and 5 show Maranhao municipalities included in groups A and B, with respective ratio of poor families assisted by Family Grant, by year of the sample. Data 29 Instituto Brasileiro de Geografia e Estatistica – Brazilian Institute of Geography and Statistics. Accessed on 14/06/2008. Available in: http://www.ibge.gov.br/lojavirtual/default.php?codigoproduto=8948 ; http://www.ibge.gov.br/home/estatistica/economia/pibmunicipios/2003/default.shtm 30 “Relatório Consolidado da Folha de Pagamento”, extracted from the database of the online monitoring system of the „Bolsa Familia‟ transferred resources – SIBEC, available in: https://www.beneficiossociais.caixa.gov.br/ , but with restricted access to local, regional and national managers of the program, as well as members of fiscalization and inspection agencies at local and national instances agencies accounting and control agencies. The complete original data for Maranhao‟s municipalities studied is shown on Annex III. 31 Estimated by PNAD 2004 33 provided by SENARC/MDS also included years 2006 and 2007, but because municipal GDP data provided by IBGE was available only until 2005, Family Grant‟s data will be considered only until 2005 as well, since the utility of the independent variable is given by the availability of dependent variable marks. Also in group B, were included the municipalities of Rio Grande do Sul‟s sample, on tables 3 and 6, which were considered Brazilian localities with lowest numbers of poor families (FGV, 2004), where the impact of Bolsa Familia tends to be insignificant – in a locality as Harmonia, for example, where only 1.16% of the population live below the indigence line, even if Family Grant transfers reach all the poor individuals, its impact on GDP tends to be irrelevant, since the total amount of transfers‟ eligible beneficiaries (poor) is so small. It is almost like Rio Grande do Sul selected municipalities experience no incidence of Bolsa Familia transfers at all, thus, useful as counterfactuals to municipalities included in group A. Table 3 Position in the ranking 1st 2nd 4th Rio Grande do Sul Harmonia Presidente Lucena (%) Rate of people living below the indigence line 1.16 1.52 Nova Bassano 2.86 5th Monte Belo do Sul 2.91 6th São José do Hortêncio 2.91 Morro Reuter Paraí Carlos Barbosa Alto Feliz Imigrante São Vendelino Nova Pádua Feliz Vila Flores Flores da Cunha Vale Real Colinas Dois Irmãos 2.95 3 3.22 3.35 3.44 3.61 3.64 3.87 3.9 3.96 3.96 4.04 4.48 7th 8th 9th 10th 12th 13th 14th 15th 16th 17th 18th 19th 21st 34 23rd 26th 27th 29th 30th Source: see page 22 Nova Petrópolis Anta Gorda Garibaldi Vila Maria Picada Café 4.88 5.24 5.3 5.3 5.41 5.2.2 Principal Findings 5.2.2.1 What is about the Northeast? It is noteworthy, on table 1, the fact that Rio Grande do Sul (RS), a state located in the South region of Brazil, concentrates 32 out of the 50 Brazilian municipalities least affected by indigence (64% of the sample), including the least of all of them, Harmonia, followed by Santa Catarina (SC), also from the South, and Sao Paulo (SP), from the Southeast. These two states hold, respectively, 9 and 8 localities of the list, presenting, respectively, 18% and 16% of the sample. Together, Rio Grande do Sul and Santa Catarina reunite 41out of the 50 Brazilian municipalities with lowest levels of people living with life standards below Ferreira, Lanjouw and Neri‟s (2003) indigence line (82% of the sample), meaning that the South region of Brazil concentrates the country‟s municipalities with lowest concentrations of poverty, although, in terms of number of indigent people per state, the results are not the same, as showed on table 1. The numbers on table 1 lead us to conclude that, while in Sao Paulo and Santa Catarina, poverty is more equally distributed between diverse municipalities, in Rio Grande do Sul, it is more concentrated in some places, since the latter contains several municipalities with the lowest levels of poverty in Brazil, but on aggregate it does not present the same result. This implies that there is no linearity between both measures, meaning that it is not that there is no indigent people living in Rio Grande do Sul; it is just that in this state some localities actually managed to maintain poverty away. 35 Oppositely, it is also notable that, 23 out of the 50 localities with highest levels of people living with life standards below Ferreira, Lanjouw and Neri‟s indigence line – 46% of the sample – are from the state of Maranhao (MA), located in the Northeast region of Brazil – including the poorest of all of them, Centro do Guilherme. This presents almost three times more than the percentage held by Piaui (PI) – another state of the Northeast –, position number 2 in the poverty ranking, which contains 8 of the 50 poorest Brazilian municipalities (16%). Alagoas (AL), also a Northeast state, comes in third, with 6 municipalities included in the list, or 12% of the sample. Together, these three states sum 74% of the sample (37 localities), meaning that northeast is the region of Brazil where the poorest municipalities of the country are located. Moreover, in terms of number of indigent people per state, northeast also concentrates the highest results, as pointed out by FGV (2004), showed on table 1. Again, Maranhao leads the ranking – 68.42% of the population under indigence line –, followed by Alagoas (63.75%), Piaui (63.30%), Ceara (58.65%) and Bahia (57.89%), both from the Northeast as well, which confirms the northeast as the poorest Brazilian region, and Maranhao, Piaui and Alagoas as the poorest states of Brazil – both in terms of number of municipalities with highest levels of poverty and of percentage of the population living in indigent conditions. 36 Table 1 5 more 5 less Brazilian States' Misery Ranking: 5 Brazilian States more and less affected by misery % of people leaving with per capita income lower than R$ 79.00* per state of the Federation UFs 1 - São Paulo 2 - Santa Catarina 3 - Distrito Federal 4 - Rio Grande do Sul 5 - Rio de Janeiro % of People in Misery 14.25 15.36 17.06 18.36 19.45 1 - Maranhão 2 - Alagoas 3 - Piauí 4 - Ceará 5 - Bahia 68.42 63.75 63.30 58.65 57.89 Source: CPS/IBRE/FGV from data of 2000 Demographic Census /IBGE Table copied from FGV (2004), available in Portuguese in: http://www.fgv.br/cps/Nacional/Apresentacao.htm In addition, Northeast has been pointed out as the region with higher levels of nutritionally unprotected individuals, challenged by starvation, for IBGE‟s 2004 National Household Sample Survey („Pesquisa Nacional por Amostra de Domicilios‟ – PNAD)32. According to the Brazilian Institute of Geography and Statistics – IBGE, the high levels of nutritionally challenged individuals found in the Northeast and North of Brazil, as shown in chart 1, reflect the well known regional disparities, in terms of life standards and of access to general consumption of goods and services, which historically operate in the country. The chart shows that, in the South, more than 75% of the households had granted access to food consumption in quantity and quality compatible with the minimal standards defined by OMS as mandatory for a healthy living maintenance, in the occasion of the survey, while, in the North, only 53.6% of the population did experience the same situation, and, in the Northeast, not even half of the resident people, 46.4%, did. Moreover, the survey also shows that, out of the 14 million people found in gravely nutritionally unprotected households, 52%, i.e. around 7 million people, were resident in the 32 Available in: http://www.ibge.gov.br/home/estatistica/populacao/trabalhoerendimento/pnad2004/suplalimentar2004/comentario.p df . Accessed on 30/07/2008 37 Northeast, region that counted for just 28% of the Brazilian total population, in the occasion of the survey (PNAD, 2004). Chart 1 Source: PNAD 2004. 5.2.2.1.1 What is about Maranhao? In addition to FGV findings, IBGE‟s PNAD 2004 shows that, besides being the state with the highest number of municipalities included in the top 50 poorest localities in Brazil, including the first of the ranking; and despite being the state with highest rate of people, over total population, living under conditions of indigence; Maranhao also presents the highest levels of nutritionally unprotected people – 69,1% of the population, including slightly, considerably and gravely unprotected people. 18% of such are considered gravely unprotected, facing serious risk of starvation, and 27. 9% are considered considerably unprotected, facing risk of starvation. Both marks were the highest rates between all Brazilian states in each respective category, registered in the occasion of the survey, as shown in chart 2. That is precisely why Maranhao has been selected for this research‟s case study. 38 Chart 2 5.2.2.2 Zero Hunger’s cash transfers correlation with GDP per capita performance in Maranhao 5.2.2.2.1 Rate of poor families protected by Family Grant a) Group A: Table 4 – Sample‟s municipalities with ratio of assisted families close to the sample‟s annual 39 average rate, in approximately 20%, or higher, in all years of the series 2003 – 2005. Municipalities CENTRO DO GUILHERME BELAGUA SANTO AMARO DO MARANHAO MATOES DO NORTE CANTANHEDE MARANHAOZINHO PRESIDENTE JUSCELINO SAO JOAO BATISTA PAULINO NEVES CAJARI PRESIDENTE VARGAS LAGOA GRANDE DO MARANHAO SAO ROBERTO CAJAPIO FORMOSA DA SERRA NEGRA AVERAGE Rate Estimated number of poor families (PNAD 2004) 973 771 1306 1257 2980 1279 1774 3058 1551 2150 1770 1405 726 1424 1831 Protection rate (%) 2 003 55 59 31 47 53 49 30 54 60 52 43 77 38 56 53 51 2 004 55 69 55 55 59 78 64 63 79 54 71 82 52 72 54 64 2 005 89 82 68 81 67 92 74 88 88 73 78 84 87 74 81 81 b) Group B – counterfactuals: I – Maranhao’s municipalities with ratio of assisted families, approximately, 20% lower than localities‟ annual average rates, in at least one year of the series 2003 – 2005. Table 5 Municipalities CACHOEIRA GRANDE ARAGUANA SAO BENEDITO DO RIO PRETO APICUM-ACU NINA RODRIGUES TUFILANDIA PEDRO DO ROSARIO SANTANA DO MARANHAO AVERAGE Rate Estimated number of poor families (PNAD 2004) 1004 1449 2540 1532 1210 985 2598 1967 40 Protection rate (%) 2 003 2 004 0 52 5 6 7 17 15 27 21 21 22 28 25 35 35 47 16 29 2 005 89 18 54 90 33 51 54 50 55 II – Rio Grande do Sul’s municipalities with lowest rates of poor families incidence (FGV, 2004), where the impact of Bolsa Familia tends to be insignificant: Table 6 Municipalities HARMONIA PRESIDENTE LUCENA NOVA BASSANO MONTE BELO DO SUL SAO JOSE DO HORTENCIO MORRO REUTER PARAI CARLOS BARBOSA ALTO FELIZ IMIGRANTE SAO VENDELINO NOVA PADUA FELIZ VILA FLORES FLORES DA CUNHA VALE REAL COLINAS DOIS IRMAOS NOVA PETROPOLIS ANTA GORDA GARIBALDI VILA MARIA PICADA CAFE AVERAGE Rate Estimated number of poor families (PNAD 2004) 58 46 103 28 57 78 77 227 62 69 45 24 196 40 241 67 63 265 308 133 334 95 52 Protection rate (%) 2003 2004 2005 19 9 56 21 25 46 81 29 15 26 2 29 22 35 44 40 29 100 13 62 57 28 38 45 13 80 50 37 73 106 77 35 57 29 54 42 53 78 70 65 109 72 69 75 49 73 83 13 110 71 37 73 110 82 11 57 33 83 62 110 113 73 78 114 92 107 119 84 113 36 61 79 5.2.2.2.2 GDP per capita performance33 a) Group A Table 7 33 Data is available until 2007, however, because GDP data is available only until 2005, here we display numbers until 2005 only. Complete data can be found on Annex III. 41 Municipalities Centro do Guilherme BELAGUA Santo Amaro do Maranhão Matões do Norte Cantanhede Maranhãozinho Presidente Juscelino São João Batista Paulino Neves Cajari Presidente Vargas Lagoa Grande do Maranhão São Roberto Cajapió Formosa da Serra Negra GDP per capita 1999 2000 792 1 145 470 783 586 697 681 671 780 1 211 706 909 790 741 915 959 1 551 648 1 124 771 933 568 856 745 1 109 765 1 101 1 001 714 1 070 Chart 3 b) Group B – counterfactuals: I – Maranhao Table 8 42 2001 1 158 1 292 713 1 176 933 955 628 957 828 1 194 737 1 520 967 830 1 082 2002 1 233 996 799 1 133 1 008 1 160 824 868 843 1 233 889 1 870 1 129 869 1 464 2003 2 487 2 115 1 306 1 677 1 501 1 777 1 380 1 776 1 601 1 952 1 717 1 795 1 637 1 342 1 799 2004 2 765 3 052 1 470 2 064 1 841 2 192 1 519 2 071 1 803 2 505 1 975 2 555 1 758 1 599 1 924 2005 3 092 3 080 1 645 2 321 2 258 2 718 1 664 1 958 2 026 2 755 2 231 2 263 1 986 1 590 2 297 Municipalities Cachoeira Grande Araguanã São Benedito do Rio Preto Apicum-Açu Nina Rodrigues Tufilândia Pedro do Rosário Santana do Maranhão 1999 592 1 403 645 404 683 675 636 836 GDP per capita (R$) 2002 2003 835 1 386 2 005 2 542 759 1 465 714 1 247 1 078 1 574 987 1 918 898 1 124 934 1 497 2000 749 1 455 713 587 925 742 769 617 2001 799 1 908 878 705 831 888 852 664 Chart 4 II – Rio Grande do Sul Table 9 43 2004 1 439 2 688 1 842 1 401 1 812 2 234 1 286 1 640 2005 1 587 2 607 1 869 1 466 2 148 2 580 1 526 1 656 Alto Feliz Anta Gorda Carlos Barbosa Colinas Dois Irmãos Feliz Flores da Cunha Garibaldi Harmonia Imigrante Monte Belo do Sul Morro Reuter Nova Bassano Nova Pádua Nova Petrópolis Paraí Picada Café Presidente Lucena São José do Hortêncio São Vendelino Vale Real Vila Flores Vila Maria 1999 6 603 5 982 13 283 5 689 13 372 7 789 12 361 17 974 9 750 9 010 9 158 8 715 15 890 16 839 10 072 7 624 13 747 7 577 9 122 5 758 4 914 8 048 10 335 2000 7 245 7 298 14 982 6 494 15 413 6 913 13 680 18 371 10 488 10 428 10 985 9 425 21 945 17 405 10 367 8 942 17 602 8 291 11 114 6 350 5 448 9 653 10 200 Chart 5 GDP per capita 2001 2002 8 028 8 273 9 790 11 641 16 270 18 420 7 117 8 043 17 020 17 466 6 963 7 258 14 691 16 572 20 051 22 180 10 066 10 751 11 832 14 717 11 320 15 286 9 886 10 916 23 406 29 267 22 001 27 115 10 792 10 527 10 196 13 859 15 595 16 733 9 444 10 370 11 358 12 958 7 213 8 110 5 995 6 723 10 805 11 800 11 455 13 641 2003 6 570 11 429 18 737 7 753 16 215 8 891 13 537 18 855 9 083 13 818 9 058 10 422 23 786 15 867 10 262 12 830 12 110 11 292 11 150 7 065 6 819 10 493 12 381 GDP per Capita (Reais) Municipalities 2004 7 029 11 050 21 758 7 672 17 639 9 515 14 497 21 665 10 147 16 497 9 587 11 248 28 561 17 366 11 570 14 381 15 788 10 819 11 491 8 525 7 517 11 867 12 234 2005 7 405 8 748 24 217 8 359 16 664 10 573 15 334 23 502 12 118 17 124 10 020 11 229 30 609 17 969 12 526 15 989 18 052 11 6603500 11 671 9 8693000 7 667 13 6592500 12 442 2000 1500 1000 500 GDP per capita 0 44 5.2.2.2.3 Correlating both variables a) Group A Table 10 2003 Municipalities CENTRO DO GUILHERME BELAGUA SANTO AMARO DO MARANHAO MATOES DO NORTE CANTANHEDE MARANHAOZINHO PRESIDENTE JUSCELINO SAO JOAO BATISTA PAULINO NEVES CAJARI PRESIDENTE VARGAS LAGOA GRANDE DO MARANHAO SAO ROBERTO CAJAPIO FORMOSA DA SERRA NEGRA GDP per capita 2 487 2 115 1 306 1 677 1 501 1 777 1 380 1 776 1 601 1 952 1 717 1 795 1 637 1 342 1 799 2004 Family Grant's poor families protection rate (%) 55 59 31 47 53 49 30 54 60 52 43 77 38 56 53 Chart 6 45 GDP per capita 2 765 3 052 1 470 2 064 1 841 2 192 1 519 2 071 1 803 2 505 1 975 2 555 1 758 1 599 1 924 2005 Family Grant's poor families protection rate (%) 55 69 55 55 59 78 64 63 79 54 71 82 52 72 54 GDP per capita 3 092 3 080 1 645 2 321 2 258 2 718 1 664 1 958 2 026 2 755 2 231 2 263 1 986 1 590 2 297 2003-2005 Family Grant's Correlation poor families between protection rate variables (%) 2003-2005 89 82 68 81 67 92 74 88 88 73 78 84 87 74 81 0.891053 0.850366 0.982924 0.91393 0.99558 0.966103 0.946456 0.371199 0.970603 0.794476 0.950815 0.72857 0.998207 0.989753 0.975506 b) Group B I – Maranhao Table 11 2003 Municipalities Cachoeira Grande Araguanã São Benedito do Rio Preto Apicum-Açu Nina Rodrigues Tufilândia Pedro do Rosário Santana do Maranhão GDP per capita 1 386 2 542 1 465 1 247 1 574 1 918 1 124 1 497 2004 Family Grant's poor families protection rate (%) GDP per capita 0 5 7 15 21 22 25 35 1 439 2 688 1 842 1 401 1 812 2 234 1 286 1 640 Chart 7 46 2003-2005 2005 Family Grant's poor families protection rate (%) 52 6 17 27 21 28 35 47 GDP per capita 1 587 2 607 1 869 1 466 2 148 2 580 1 526 1 656 Family Grant's Correlation poor families between protection rate variables (%) 2003-2005 89 18 54 90 33 51 54 50 0.935882 7.19E-05 0.707185 0.82494 0.918308 0.951931 0.99771 0.995828 Example of Dimension of Bolsa Familia’s transfers in GDP results. 6. Conclusion Marks The findings of the Case Study Maranhao bring about really strong correlation between GDP per capita attainments and Zero Hunger‟s Bolsa Familia cash transfers, which means the pace of GDP growth has been largely influenced by number of poor families assisted by Family Grant, in extremely poor municipalities of Maranhao. This finding agrees with demand-led growth theories discussed on section 2, and with the hypothesis supported in this research, dismissing the common sense hypothesis of programme‟s creation of dependence and assistentialism. Local economies are growing and this is a first step for long run sustainable local development and poverty diminution. Together with all other findings listed on section 5.1, this article brings evidence that allows for a conclusion that post-Keynesian demand-side interventions are succeeding in delivering economic development to places with high levels of poverty and inequality. 7. Bibliography ALMEIDA, M. H. T. 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It associates the transfer of financial benefits to the access to social basic rights: health, food, education and social assistance. • National School Food Programme (PNAE) It is a programme which offers, at least, one meal a day, seeking to fulfill nutrition needs of students during their stay at school, contributing to growth, development, learning and scholar goals, as well as to the constitution of healthy nourishment habits. • Food for ethnic groups It extends access to basic food for indigenous people, communities of slave descendants (quilombolas), groups of peasants in camps, rubbish pickers and others who face a food and nutrition insecurity situation as a result of food allocation. • Rainwater cisterns It is an action developed for the population of peasants from the Brazilian semi-arid region, seeking the improvement of life conditions and access to water as well as the encouragement of keeping up the intercourse in the semi-arid. • Popular restaurants They are common-wealth spaces administered by the public power that is characterized by commerce of ready and healthy meals, and by an accessible cost to people who have to eat out daily. • Food banks They act on receiving food donations considered improper to commerce, but appropriate for consumption. Food is given to non-profitable institutions from civil society which produce and distribute free meals to people in situation of food vulnerability. • Urban agriculture/Community gardens They are developed at places appreciated by the community, where there is a concentration of families and people with low income and lack of food, willing to encourage and uphold the introduction of small unities for healthy food production. • Food and Nutrition Surveillance (Sisvan) It is an action of basic attention to health which has the objective of organizing the nutritional conditions, describing tendencies of health and nutrition and situations of nutrition insecurity, either on individual or collective levels, collecting information for the estimate of public policies to the Health Single System, seeking the improvement of people‟s health conditions. Distribution of Vitamin A (Vitamin A +) 55 It is set to prevent and/or to control the shortcoming of vitamin A, in order to aid the reduction of infections seriousness and, consequently, the reduction of motherly-childish mortality. It is directed to children aged between 6 to 59 months and women on immediate after-birth, belonging to endemic areas, like the Northeast Region, Vale do Jequitinhonha, and Mucuri, in Minas Gerais. • Iron Distribution (Iron Health) It is a strategy directed to prevent and/or to control anemic diseases by iron deficiency on the most vulnerable groups (children from 6 to 18 months, pregnant women and women on the afterbirth), whose researches point to a prevalence of 50% on children and 40%on pregnant women, which brings serious consequences to the full physical, mental and social development from childhood to adult/grown-up phase. • Food and nutrition for indigenous people It is an action which produces a record of indigenous populations, guaranteeing their inclusion on governmental instruments in accordance with their cultural values, willing also to introduce intersectional actions for food and nutritional security, environmental management and sustainable development of these indigenous populations. • Food and nutrition education for consumption It develops actions to promote healthy diet, which seek to stimulate the society, through educational activities and communication actions, to fight hunger and to adopt health nourishment habits. Healthy Diet/Promotion of Healthy Habits It instigates healthy nourishment during life time, preventing and controlling nutritional disturbances, as well as illnesses related to nourishment and nutrition on the Health Single System, besides subsidization actions of food and nutritional education along with the population, through publishing instructive material. • Worker’s food programme (PAT) It has the objective of improving worker‟s nutritional conditions, with positive repercussions into life quality, reducing accidents at work and increasing production. • Basic food basket tax reduction Exemption and minimization on the ICMS duty concerning first need food which compose the basic food basket, considered indispensable to dignified survival. Strengthening of family agriculture • National Programme For Strenethening of Family Agriculture (Pronaf) It values and promotes family agriculture as an essential economic activity for the socioeconomic sustainable development in rural areas. • Harvest Insurance 56 It is one of the actions of Pronaf which seeks stability and security for the practice of agricultural activity on the semi-arid region of Brazil, making possible that farmers receive a benefit in the period of dry weather and a family living during six months. • Familiar Farm Agriculture Insurance It guarantees 100% covering of a loan, plus 65% of the liquid revenue expected by the project provided by family farmes. This innovation will guarantee significant percentage of the expected incoming by family farmers at the moment of engaging his agricultural costing operations at Pronaf. • Food Procurement Programme (PAA) It encourages the production of food by family agriculture, allowing purchase, constitution of stocks, and distribution of food for people in situation of food insecurity. The products are also allocated to school lunch, hospitals, and beneficent enterprises. Income generation • Social and professional qualification It promotes worker‟s social, occupational and professional qualification linked to the other actions of integration promotion to job market and to school attendance. • Solidarity economy and productive inclusion It makes available opportunities of social (reflections on citizenship, strengthening and the working world), professional (technical-scientific basis of occupation) and occupational (specific activities about occupation, technical-management proportions, co-operator and associative) for paid workers and/or victims of actions from the Employment Public System and from actions of social solidary economy, linked with credit actions, job generation and income as well as social economy. • Food and Nutrition Security and Local Development Consortion (Consad) It is an initiative of territorial development promotion, at peripheral areas in the country, whith emphasis on food and nutrition security as well as work and income generation, as the main strategy for socioeconomic emancipation of families wich are under the poverty line in these regions. • Poor communities’ productive organization (Produzir) It promotes social inclusion for unemployed people and poor communities, rural or urban and employees of enterprises on a process of productive weakening, organizing them on productive auto-manageable projects, achievable and upheld economically. • Development of cooperatives of recycable material collectors Supports the cooperatives development, especially collectors (rubbish pickers), for triage and benefit from garbage, alongside the new model of integrated treatment and eradication of landfills. • Guided productive microcredit 57 Gives credit for the attending of financial necessities of workers of small size productive activities of using a method based on direct relationship with local workers where the activity is executed. Partnership Promotion and Civil Society Mobilization • Families’ Houses - Social Assistance Reference Centers (CRAS) It is a continued service of basic social protection, developed at the Reference Center of Social Assistance. These centers spaces are located strategically in areas with social and personal risk and vulnerability. They give social assistance, articulate services available in each location, increasing, coordinating and organizing a web of basic social protection alongside professional qualification policies, productive inclusion and other public and social policies in search of better conditions for families. • Social mobilization and education for citizenship It provides the qualification, logistics, elaboration and reprodution of informative material, among other actions. It proposes to: prepare citizens in Brazilian cities, starting by areas with Fome Zero priority and, in the future, reaching families in situation of insecurity, reaching and organizing mobilization initiatives of the Society for the Food and Nutrition and giving priority in organizing forums on Food and Nutrition Security. • Social and public agents mobilization It promotes workshops, courses and events, capacitating public and social agents for monitoring and evaluating social development and figth against hunger policies, besides improving these policies based on results obtained, and increasing transparency of government actions. Volunteer work and donations It is a great national movement of solidarity towards those that suffer each day with the lack of food and cannot wait for the results of profound changes in the economic and social structures. It is important to remember that there are many ways to help someone in need. However, the act of donating goes way beyond the offer of food or money. It is also important for the society to get involved in the actions of the programmes that seek to overcome the structural causes of hunger and poverty. There are many ways to donate, being that in money, food, or partnerships. More information is available at the website www.fomezero.gov.br • Partnership with the private sector and neo’s These are projects executed by Fome Zero‟s partners that serve as support for the Federal Governments social policies. Institutions that want to be partners of Fome Zero must act with priority in their structural actions, in which are included support in generating work and income, complementary actions of Bolsa Família programme, social protection actions, nourishment and nutritional security. • Social development councils It is the society‟s participation and verification over Fome Zero actions. Social control bodies of programmes that integrate Fome Zero respect the reality of local instances (existent Social Counsels, Committees). 58 CENTRO DO GUILHERME BELAGUA SANTO AMARO DO MARANHAO MATOES DO NORTE CANTANHEDE MARANHAOZINHO SAO BENEDITO DO RIO PRETO TUFILANDIA PRESIDENTE JUSCELINO SANTANA DO MARANHAO CACHOEIRA GRANDE ARAGUANA SAO JOAO BATISTA PAULINO NEVES CAJARI PEDRO DO ROSARIO PRESIDENTE VARGAS LAGOA GRANDE DO MARANHAO SAO ROBERTO CAJAPIO APICUM-ACU FORMOSA DA SERRA NEGRA NINA RODRIGUES Municipalities Estimated Family Grant transfers number of 2003 2004 2005 2006 2007 poor Covered Total Amount Covered Total Amount Covered Total Amount Covered Total Amount Covered Total Amount families Families trasfered (R$) Families trasfered (R$) Families trasfered (R$) Families trasfered (R$) Families trasfered (R$) 973 536 102,495.00 538 488,330.00 866 572,262.00 1,129 941,254.00 1,147 1,115,665.00 771 452 117,285.00 535 493,815.00 636 565,119.00 795 674,751.00 772 803,873.00 1306 402 101,270.00 717 454,774.00 890 779,410.00 1,323 1,074,197.00 1,293 1,276,819.00 1257 590 109,430.00 689 552,688.00 1,020 708,953.00 1,124 955,928.00 1,249 1,149,274.00 2980 1,590 261,375.00 1,744 1,411,210.00 2,010 1,564,572.00 2,272 1,869,247.00 2,309 2,119,609.00 1279 631 86,660.00 994 597,421.00 1,174 868,532.00 1,278 997,681.00 1,240 1,114,935.00 2540 171 36,450.00 425 177,288.00 1,369 540,413.00 2,579 2,054,700.00 2,524 2,477,122.00 985 217 53,000.00 273 216,889.00 503 354,721.00 862 600,952.00 997 915,804.00 1774 527 108,020.00 1,137 606,288.00 1,306 1,022,781.00 1,608 1,241,471.00 1,801 1,606,724.00 1967 697 164,800.00 934 716,073.00 992 869,402.00 1,005 885,619.00 1,337 1,136,709.00 1004 2 350.00 522 67,544.00 895 575,934.00 1,151 967,689.00 1,228 1,051,710.00 1449 78 11,445.00 91 73,690.00 264 132,475.00 1,372 757,045.00 1,431 1,292,295.00 3058 1,663 219,205.00 1,924 1,593,920.00 2,702 1,970,358.00 3,300 2,748,228.00 3,291 3,103,440.00 1551 935 214,120.00 1,227 977,759.00 1,358 1,176,028.00 1,962 1,582,549.00 2,039 1,952,426.00 2150 1,116 131,470.00 1,159 944,565.00 1,573 1,070,125.00 2,119 1,635,356.00 2,138 2,034,212.00 2598 645 102,620.00 904 639,018.00 1,398 970,489.00 2,567 1,963,725.00 2,607 2,477,260.00 1770 764 88,275.00 1,250 773,545.00 1,385 1,199,202.00 1,631 1,431,800.00 1,714 1,655,053.00 1405 1,077 234,335.00 1,146 985,137.00 1,185 1,020,447.00 1,546 1,315,600.00 1,600 1,574,454.00 726 276 56,005.00 380 280,937.00 631 430,771.00 772 647,252.00 761 720,107.00 1424 802 112,780.00 1,026 721,445.00 1,057 840,481.00 1,304 1,041,025.00 1,425 1,299,888.00 1532 227 32,475.00 415 230,140.00 1,384 932,755.00 1,779 1,524,649.00 1,822 1,773,117.00 1831 972 114,360.00 985 903,529.00 1,489 1,024,726.00 1,883 1,562,684.00 1,872 1,791,983.00 1210 249 31,990.00 252 235,469.00 396 254,421.00 1,059 801,377.00 1,217 1,237,136.00 ANNEX III 59
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