7. WHAT RESULTS DO WE EXPECT?

• Sustained growth
• Creation of employment
• Expansion of social expendituresSustained GrowthThe economic stability achieved in 1995 strengthens the confidence that Brazil will initiate a new cycle of sustained growth, with greater savings and an improvement in income distribution. The target is to increase global savings from the current level of 17.5% of GDP to 24%, the rate reached during the 1970's. With that in mind, the Executive will soon send Congress a bill designed to stimulate savings.

GRAPHIC 12

It is expected that investment will continue to expand, in the private and government sectors, and through the external accounts. Reducing the "Brazil cost" will be a priority in 1996. Foreign investments, which reached US$ 3.5 billion in 1995, according to Central Bank estimates, should reach a higher level in 1996. Public works projects will be reinitiated, stimulating the private sector through privatizations, public service concessions and joint public/private sector projects. The Multi-year Plan 1996-1999 (PPA) will mobilize significant resources for infrastructure and social development. Of those resources, 75% will be destined for the social area.

MULTI-YEAR PLAN 1996-1999
Federal Government Expenditures
(R$ millions)

	Investments	Maintenance	Total	%
Infrastructure	47.552	186	47.738	12.3
Agriculture	7.289	6.619	13.908	3.6
Science & Technology	2.630	3.847	6.477	1.7
Social Programs	23.064	268.594	291.658	75.1
Others	15.811	12.577	28.388	7.3
Total	96.346	291.283	388.169	100.0

Source: PPA

Creation of Employment

During 1996, the government will face unemployment by using structural policy measures (economic stabilization, increased savings and investment, and interest rate reduction). In addition, it will implement more specific incentives, such as:

• A reduction of wage-related taxes;
• Support to rural workers through PRONAF;
• Help for small and medium companies which currently account for 43% of the production and 59% of the employment in the country; in 1996, the Ministry of Industry, Commerce and Tourism will implement policies which will decentralize geographically its various programs to assist companies;
• Promotion of artisan skills; and
• Preparation and retraining of workers.

Expansion of Social Expenditures

Besides creating jobs and establishing economic conditions for better wages, the government intends to implement additional new policies and programs that will expand opportunities. The priorities will be:

1. Agrarian reform — the resources necessary to settle approximately 60,000 families have already been earmarked; moreover, the legislative changes proposed by the government will permit, if approved, the acceleration of the expropriation process.
2. Education — 1996 will be the year of education; the various projects initiated in 1995 will be expanded.
3. Health — the fight against fraud will be intensified; similarly, the campaign against infant mortality and the effort to improve services in the clinics and hospitals will be priorities.
4. Sanitation and housing — R$ 3.8 billion have been earmarked for this sector.

On September 7, 1995, the President initiated a broad national campaign in defense of human rights. Among the priority themes are: the fight against juvenile prostitution; the elimination of indentured and forced labor, both for children and adults; an improvement in the appreciation of the black community; efforts regarding the political leaders that have disappeared; and the advancement of women's rights. The National Plan for Human Rights will be adopted in 1996.