3. SOCIAL SECTOR IMPROVEMENTS

Brazil's new social policy concentrates on the following areas:

a) more efficient social spending;
b) emphasis on greater opportunity; and
c) priority for low-income sector needs: basic education, professional training, sanitation, housing, and reduction of infant mortality.

The first fruits of the new social policy were already evident in 1995, particularly in education and health. The work of the Community Solidarity Program (Programa Comunidade Solidária) stands out. The Community Solidarity Program frees resources and monitors the social impact of ministerial programs. It organizes public support for basic education and health projects in needy localities (basic "scholl kit" distribution to students and teachers, school transportation, school lunches, and combating infant mortality). The most recent project, "Solidarity University " ("Universidade Solidária"), sent one thousand university students into poor communities to give assistance and guidance, and to initiate a process of improving the social situation of these communities.

The following accomplishments in the health area deserve mention:

• Health spending in 1995 doubled compared to 1993, reaching R$15.8 billion. This level surpassed the government's goal to be spending R$80 per capita annually on health programs by the end of its four-year term.
• In 1994, the Community Health Agents Program (Programa de Agentes Comunitários de Saúde) had 29,098 agents. In 1995, this number increased to 34,546 agents. Today the Program exists in 1,008 municipalities, and is a valuable instrument in the fight against infant mortality and in dispensing preventive medicine.
• The number of hospitals that provide special care for children (Hospitais Amigos da Criança) doubled. There were 11 in 1994; 22 in 1995.
• The number of municipalities covered by the Supplemental Food Program (Programa de Suplementação Alimentar) "Milk Is Health" ("Leite é Saúde") grew from 480 in 1994 to 915 in 1995.
• The number of doctors making house calls increased from 328 in 1994 to 851 in 1995; the Family Health Program (Programa de Saúde da Família) now covers 177 municipalities, compared to 65 in 1994.
• The National Immunization Program (Programa Nacional de Imunização) kept infantile paralysis eradicated and contributed to the appreciable decrease of diphtheria, tetanus, whooping cough and measles.
• The campaign against fraud in 1995 reduced hospital internments by 1,815,347 during the period January-October, compared to the same period in 1994; computerized payment controls were introduced and the National Accounting System (Sistema Nacional de Auditoria) was reactivated.

In education, basic instruction stands out as a priority. The proposed constitutional amendment sent to Congress on October 15, 1995, anticipates earmarking close to R$12 billion per year for basic education. It would:

• Earmark 15% of state and municipal tax receipts for basic education and for creation of a special fund.
• Redistribute money from this fund among the states and municipalities in accordance with the number of students enrolled in the primary education system.
• Guarantee, at the federal level, an annual per student expenditure of at least R$300.
• Earmark 60% of those resources to pay professors who are actually teaching.

Another innovation in 1995 was the creation of the School TV (TV Escola), an exclusive satellite channel to train teachers and to update their teaching techniques. Each public school with more than 100 students will receive the resources to purchase a television, a VCR, and a satellite dish to receive the TV School transmissions. In 1995, resources were already made available to 40,000 schools, benefiting more than 23 million students.

The National Educational Book Program (Programa Nacional do Livro Didático) distributed 110 million books to Brazil's 30 million grade school students. The quality of these books was evaluated in order to eliminate elements of discrimination, inadequate curricula, and errors.

In 1995, the National School Lunch Program (Programa Nacional de Alimentação Escolar) spent R$660 million — more than the total UNESCO worldwide budget (US$518 million). The Program provided nearly 6 billion lunches to 34 million children. Today, the Program covers all 4,986 of Brazil's municipalities.

Brazil's agrarian reform initiatives settled more than 42,000 families in 1995. The goal for 1996 is to settle as many as 60,000 families.

GRAPHIC 7

Moreover, the National Program for Strengthening Family Farming (PRONAF — Programa Nacional de Fortalecimento da Agricultura Familiar) will render assistance to the poorest rural families because it is not enough just to settle them on the land. They must also be provided the conditions necessary for survival. Through an agreement with the National Confederation of Agricultural Workers (CONTAG å Confederação Nacional dos Trabalhadores na Agricultura), the government makes resources available to be used directly on the settlements.

Rural financing took a new direction in 1995. The TR (Reference Interest Rate) was eliminated for new loans, and outstanding debts (matured or about to mature) were refinanced for up to ten years with a two-year grace period. This action will benefit nearly 230,000 farmers.

Financing for housing and basic sanitation was resumed after a four-year suspension. The Federal Savings Bank (Caixa Econômica Federal) and the Bank of Brazil are being restructured in order to adapt them to the new social policies, freed from political patronage. In 1996, R$3.8 billion from the Severance Pay Fund (Fundo de Garantia por Tempo de Serviço) will be set aside to finance housing construction and sanitation projects.