Free Articles  >>  Business And Finance >>  Page 2405  >> 

Brazil s Largest Ever Economic Growth Programme

This short article discusses the two stages of Brazil’s Programa de Aceleração do Crescimento (‘Growth Acceleration Programme’, also known as ‘PAC’). Aimed at assisting the country’s economic progression, the PAC is mainly focused around improving Brazil’s infrastructure through a variety of means.

*** PAC-1 (Programa de Aceleração do Crescimento 1 / Growth Acceleration Programme One) ***

Initiated on 28th January 2007, the PAC-1 was structured upon a four year implementation strategy, composed of five levels, in order of priority:

1) Infrastructural measures largely focused around energy (via the means of interest payment reductions as well as gas industry subsidies and tax reliefs); transportation (roads, highways, ports, airports, urban transport), housing and sanitation;

2) Measures to encourage credit and financing;

3) Better environmental regulatory frameworks;

4) Tax relief, largely focused around the poorer ends of society;

5) Fiscal measures spread over the long term.

The aim of the $R 513 billion programme was, in turn, to accelerate private investment and was allocated in the following directions:

Energia (‘Energy’) – out of a total of R$ 274.8 billion, R$ 179.0 billion was invested in oil and natural gas; R $ $ 65.9 billion in power generation; R$ 17.4 billion in renewable fuels and R$ 12.5 billion in electricity transportation.

Melhorias Infraestrutura Social e Urbana (‘Social Infrastructure and Urban Improvements') – out of a total of R$ 170.8 billion, R$ 106.3 billion was invested in housing improving projects (with majority allocated in lower class areas); R$ 40 billion in basic sanitation; R$ 12.7 billion in water system improvements; R$8.7 billion on the Luz Para Todos programme (‘Light for All', which entitles households in rural areas to get a free spot light per room with electricity two sockets) and R$ 3.1 billion on improving subway systems (particularly in Rio de Janeiro and São Paulo).

Transporte Logística (‘Transport Logistics’) – out of a total of R$ 58.3 billion, R$33.4 billion was invested in the country’s highways; R$ 10.6 billion in the merchant navy; R$ 7.9 billion in railways; R$ 3 billion in airports; R$ 2.7 billion in ports and R$ 700 million on public waterways.

Shortly after the introduction of the programme, a sub-project entitled PAC das Crianças (‘PAC for Children’) was also launched aimed at addressing the root causes of violence against children and adolescents. R$ 2.9 billion was allocated to renovate and construct 49 buildings to house young people in this predicament supported by counselling, educational programmes, sporting academies, libraries, workshops and clinics. In conjunction with this, a programme was created to pass a single payment to families to bring back their abandoned children (an unfortunate consequence in the poorer parts of the country). The source of the funding for PAC-1 largely came from both state enterprises (including an investment by Petrobras of R$ 148.7 billion) and the private sector as well as a proportion from fiscal and social security receipts.

The main criticism the programme has attracted has been with regards to its slow implementation: at the target completion date of March 2010, only 63 percent of the funding was spent. At the time, President Lula publically stated his dissatisfaction: "I'm not happy with what we have done so far, the poor people of this country needs us to do more and the economy needs to happen." Further pressure was subsequently put on state heads and municipality governments to carry out projects efficiently within set timeframes. Despite these issues, the overall impact of the PAC-1 has been viewed as a positive step for Brazil from all sections of society. Launched amidst the global economic crisis, many have cited the programme as a major contributory factor which assisted in Brazil's excelled recovery – particularly as a result of the increased employment opportunities and company subsidies / tax reliefs.

*** PAC-2 (Programa de Aceleração do Crescimento 2 / Growth Acceleration Programme Part Two) ***

In March 2010, phase two of the Growth Acceleration Programme was launched with an infrastructure investment plan of R$ 958.8 billion for use between 2011 and 2014. Funded via a combination of private, state, federal and municipal investment, the allocation is as follows:

Melhores Cidades (‘Better Cities') – with an investment of R$ 57.1 billion, the aim is to improve the quality of life in Brazil's major cities with a focus on sanitation, urban mobility, pavement improvements and decreasing crime.

Cidadania da Comunidade (‘Community Citizenship') – an investment of R$ 23 billion aimed at augmenting the accessibility of state services in the country's poorer regions including various health services, emergency care units, day care centres, pre-schools, sporting facilities and community policing facilities.

Minha Casa, Minha Vida (‘My House, My Life') – continuing the established programme of reducing the country's housing shortage, providing construction sector incentives and generating jobs with an investment of R$ 278.2 billion.

Água e Luz para Todos (‘Water and Light for All') – a R$30.6 billion investment with the objective of continuing the programme of free access to lighting for poorer communities (see above) as well as the provision of improved water supply and related resources.

Transporte (‘Transportation’) – an investment of $R 4.5 billion to continue the work of the PAC-1 in improving, expanding and integrating a logistical network of quality and safety of Brazil’s roads, railways, ports, waterways and airports.

Energia ('Energy') – with the largest investment of R$ 627.1 billion the funding is aimed at continuing the country’s leading global status of producing clean and renewable sources of energy; supporting the production of oil (mainly in the country’s south east coast); electricity efficiency; shipbuilding investments and mineral research.

PAC-2 was accused of being a means of President Lula’s Workers Party to gain votes for the 2010 elections referring to the fact that the programme should not have been started when the first part was not fully completed. Worker Party government officials were quick to dismiss the programmes critics maintaining that Brazil is in need for infrastructural improvements and the main concern should be with regards to the successive effects on inflation that the various parts of the programme will cause. It has therefore become clear that the government needs to keep close eye on preventing runaway price rises in order to solidify the country’s long term growth and maximise the effects of the programme.

About Author Ruban Selvanayagam :

See detailed information about Brazil's Growth Acceleration Programme here: <a href="" target="_blank"></a> (English translation available).&nbsp; We provide FREE e-books, news, facts, figures, area guides, hints and tips for anyone with an interest in real estate and land investment in Brazil: <a href="" target="_blank"></a>

Article Source:
Article Url:

Article Added on Tuesday, August 10, 2010
Other Articles by Ruban Selvanayagam

The Banks in Brazil
Post global recession, the banking system of Brazil is now internationally recognized as a highly efficient model. Many economists have attributed its recent success to the sophisticated mechanisms and regulatory systems that were created during the 'lost-decade' of hyper-inflation. Nowadays, financial regulation is very conservative and was created to ensure the banks would be able to regularly ‘stress test’ their processes to check and balance their activities in a variety of hypothetical...

My House My Life Brazil s Low Cost Housing Programme
*** BACKGROUND *** The Minha Casa, Minha Vida (My House, My Life) campaign was announced by the Federal Government in March 2009 as one of the means of reducing the inequality gap and housing deficit in Brazil (of over 10 million houses). With an initial governmental investment of over $64 BRL billion, 1 million houses are planned to be built and allocated to families on a means tested basis: - Households with a total income of up to 3 times the minimum wage (currently at $465 BRL per...

Investing in S o Paulo Real Estate and Land A General Overview
São Paulo is the largest state in Brazil in terms of its economic force and continues to remain attractive from an investment perspective. The state has the largest population, industrial and economic hub in the country. As well as being then wealthiest state in Brazil, it´s capital is the largest in South America. Prior to European settlement in the 16th century, the region was largely populated by the Tupi´s peoples nation. It was during this time that widescale slavery of the indigenous...

Excelling Microfinance in Brazil
As a country which is witnessing strong economic growth exemplified by a widening middle class, rising GDP, large export growth, oil discoveries amongst several other factors – it is often forgotten that some parts of Brazil are still experiencing abject poverty and income inequality. Whilst the efforts of social programmes such as ‘Minha Casa, Minha Vida’, ‘Bolsa Família’ and ‘Zero Fome’ are to be commended, much work needs to be done to decrease inequality. This articles outlines some...

Alleviating Poverty in Brazil
*** INEQUALITY REDUCES IN BRAZIL *** For many years, international property and land investors viewed Brazil as a country where inequality was a widespread problem - and therefore one to be avoided. In modern times, the contrary is becoming more apparent with a growing amount of evidence pointing to decreasing levels of those living under the poverty line. As a result of two notably successful social programmes - the Bolsa Família (‘Family Grant') and Fome Zero ('Zero Hunger') - visible...

Economic Growth in Brazil Improving the Education of Future Generations
*** BRAZIL'S MODERN DAY EDUCATION SYSTEM *** Long criticised as being comparatively inferior (particularly for the lower demographic of society) to other developing countries, Brazil has a long way to go before its compulsory education system is where it needs to be in terms of both improving the competitive intelligence of future generations and reducing poverty. The Instituto de Pesquisa Econômica Aplicada indicated that the average 25-year-old in modern day Brazil has only nine years of...

Reducing Corruption to Solidify Brazil 180 s Growth
Reducing Corruption to Solidify Brazil´s Growth The issue of corruption has, for a long time, been an unfortunate characteristic of Brazil and a concern of international investors and business people. With the most prominent forms appearing in the country's political system, below are some short descriptions of the most well known cases: - Fernando Collor (president from 1990 to 1992) was exposed as having undertaken a number of corrupt extortions in a fairly unsubtle manner and...

Property and Land Investment Hotspot Tocantins Brazil
Tocantins is officially classified as Brazil's most modern state and has witnessed a solid level of growth in terms of infrastructural development and investment. The entire region was formerly part of the Goiás state; however, although not officially classed as such, separation occurred since the 17th century due to accessibility issues which were further exacerbated as a result of political tensions between inhabitants. National pressure led to the federal government officially separating...

Ceara Brazil for Real Estate and Land Investors
Located north eastern of Brazil; as well as being well known for its extensive coastlines (extending for 356 miles), mountains and valleys; Ceará state has been an area of strong economic growth – particularly around it's capital, Forteleza (where an increasing amount of European and American investors own property and land). The region is bordered to the east by Rio Grande do Norte and Paraíba states; to the south by Pernambuco state and to the west by Piauí. Early Portuguese colonisation...

How To Invest in Brazil Commercial Real Estate and Land
With its ever escalating industry growth, rising consumer confidence, larger middle class, strong currency, increased foreign investment, high M&A activity, abundance of natural resources, improving investment grade classifications amongst several other factors there are many reasons that commercial real estate investors are feeling confident about Brazil. Whilst some are questioning the formation of a bubble in real estate (which can often be statistically warranted), it cannot be...

Click here to see More Articles by Ruban Selvanayagam
Publishers / Webmasters
Article ID: 251485
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

101 Users Online !
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Cheap Linux Web Hosting Provided By AwareIndia

Company IDS