Brazil - Public Expenditures for Poverty Alleviation in Northeast Brazil : Promoting Growth and Improving Services
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Washington, DC
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This report addresses the role public
expenditure can play in the alleviation of poverty in the
Brazilian northeast, involving both regional growth, and
social services. Notwithstanding relatively high growth in
the past two years, the northeast lags behind the rest of
the country, with a per capita GDP just under sixty percent
of the country's GDP, with no significant variations
since 1965. Based on national statistical data, the study
identifies private investment as a principal determinant of
regional growth, and, although public investments do not
appear to effect growth directly, it does indirectly in so
far private investment can be stimulated. The analysis
further indicates that certain type of infrastructure
investments, that lower local cost of production in the
region (i.e., electric power, and water supply) are
associated with increased private investment. However,
public infrastructure investments (i.e., transportation, and
communication) that increase regional integration with the
rest of the country, have mixed effects. Results largely
confirm that public investment should be complementary to
private investment, by providing goods, or overcoming other
market failures, rather than substituting for private
activities. And also, results point to a possible
interregional externality, i.e., that the returns to state
investments in education may well accrue to other states. It
is suggested that infrastructure supporting the creation of
off-farm employment is necessary, that guiding urban
development is a high priority, while in the short-run,
agriculture will remain a prominent feature of the northeast economy.
Palabras clave
AGGREGATE OUTPUT, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTIVITY, ANNUAL RATE, ANXIETY, AVERAGE INCOMES, BASIC EDUCATION, CAPITAL FORMATION, CLINICS, COMMUNITY PARTICIPATION, COMPARATIVE ADVANTAGE, CUMULATIVE DISTRIBUTION, DEBT, DEVELOPMENT RESEARCH, DEVELOPMENT STRATEGY, DISTRIBUTIONAL IMPACT, EDUCATION, EDUCATION LEVEL, EDUCATIONAL OPPORTUNITIES, EMPIRICAL ESTIMATES, EMPLOYMENT, EXTERNALITIES, FARMS, FINANCIAL FLOWS, FISCAL POLICIES, GROWTH PROSPECTS, GROWTH RATES, HEALTH, HEALTH CARE, HEALTH EDUCATION, HEALTH INSURANCE, HEALTH INTERVENTIONS, HEALTH PROBLEM, HEALTH SERVICES, HEALTH STATUS, HEALTH SURVEYS, HIGH GROWTH, HIGH INFLATION, HOSPITALS, HOUSEHOLD SURVEY, HYGIENE, IMMUNIZATION, IMPROVED HEALTH, INCOME, INCOME DISTRIBUTION, INCOME GROUPS, INFANT MORTALITY, INFLATION, INFRASTRUCTURE INVESTMENT, INSURANCE, INSURANCE MARKETS, LABOR MARKET, LABOR PRODUCTIVITY, LAND REFORM, LIVING CONDITIONS, LOCAL CONDITIONS, LOCAL LEVELS, LONG RUN, LONG TERM, LONG-RUN GROWTH, LONG-TERM GROWTH, MACROECONOMIC STABILIZATION, MANAGERS, MARKET FAILURES, MARKETING, MEDICAL CARE, MEDICAL SERVICES, MIGRANTS, MORBIDITY, MORTALITY, MOTIVATION, NATIONAL INCOME, OUTPUT GROWTH, PARENTS, PENSION SYSTEM, PER CAPITA INCOME, POLICY DEBATE, POLICY DISCUSSION, POLICY OPTIONS, POLICY REFORMS, POLITICAL SUPPORT, POOR PEOPLE, POVERTY ALLEVIATION, POVERTY ASSESSMENT, POVERTY LINE, POVERTY RATES, POVERTY REDUCTION, PRICE STABILITY, PRIMARY EDUCATION, PRIVATE SECTOR, PRO-POOR, PRODUCERS, PRODUCTIVE ASSETS, PRODUCTIVITY GROWTH, PROMOTING GROWTH, PUBLIC EMPLOYMENT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURES, PUBLIC GOODS, PUBLIC HEALTH, PUBLIC HEALTH SERVICES, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC POLICY, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SERVICE, PUBLIC SERVICES, PUBLIC WORKS, REFORM PROGRAM, RETIREMENT, RURAL AREAS, RURAL POOR, RURAL POVERTY, RURAL RESIDENTS, SCHOOLS, SHORT TERM, SIGNIFICANT EFFECT, SOCIAL POLICY, SOCIAL SERVICES, STATE ENTERPRISES, STATE POLICIES, STATISTICAL ANALYSIS, TARGETING TRANSFERS, UNEMPLOYMENT, UNSKILLED LABOR, URBAN AREAS, URBAN CENTERS, WAGES, WATER SUPPLY PUBLIC EXPENDITURES, ECONOMIC GROWTH, SOCIAL CONDITIONS, POVERTY REDUCTION, REGIONAL DISPARITY, REGIONAL ECONOMIC DEVELOPMENT, POLICY FRAMEWORK, PUBLIC INFRASTRUCTURE, REGIONAL INTEGRATION, PUBLIC HEALTH, EDUCATION SECTOR, PRIVATE INVESTMENTS, PRODUCTION COSTS, ELECTRIC POWER, WATER SUPPLY, TRANSPORTATION ECONOMICS, COMMUNICATION INFRASTRUCTURE, EMPLOYMENT OPPORTUNITIES, URBAN DEVELOPMENT, AGRICULTURAL ECONOMY, LAND REFORM, ACCESS TO EDUCATION