COMMITMENT 2

To eliminate poverty and fight social exclusion

The struggle against inflation, economic growth and the reduction of poverty

From 1993 to 1999, the Brazilian GDP has expanded at an average rate of 3.1% a year, and the per capita income rose by 1.7%. These figures are better than the ones obtained in the 12 previous years, when the GDP grew in average only 1.4% a year, and the per capita income dropped by 0.5%.

On account of the stabilisation of prices, the amount of poor people has expressively diminished during the last decade. In 1990, 43.8% of the total population of Brazil were poor (63.1 million people), a contingent that has diminished to circa 32.7% (50.1 million people) in 1998. During this period, therefore, 13 million people crossed the poverty line.

The dramatic situation of indigence was also mitigated. In 1990, 21.3% of Brazilians (32.6 million people) were indigents - a little over one in every five. In 1998, the contingent of indigents had reduced to 13.9% of the population - 23.1 million people or one in every seven Brazilians. This means that, in eight years, 9.5 million people were rescued from absolute poverty. tion of the poor and the indigents over the total population - Brasil 1977-1998.

 Income distribution

The GDP per capita, calculated in U$, moved from U$ 4.542, in 1990, to U$ 4.793, in 1998. However, the situation of income concentration has changed little, which is a crucial problem for any strategy of struggle against poverty and of promotion of social integration in Brazil. The Gini coefficient showed only a slight improvement. It was 0.618, in 1990, and 0.601, in 1998. The persistence of this situation in terms of income concentration requires government and society itself to strengthen active policies leading to greater social justice.

 More investment in social policies

Brazil presents quite significant figures in terms of social expenditure as a percentile of GDP - about 21%, in 1995. It is an expressive investment, if compared with those of some Latin American countries, such as Costa Rica (20.8%), Argentina (18.6%), Chile (13.4%) and Mexico (13.1%). As of 1993, even facing the requirements of the fiscal adjustment and in the midst of the international financial crises, Brazil increased the federal social expenditure, from R$ 77.7 billion, in 1993, to R$ 114.7 billion, in 1998.

Likewise, the per capita federal social expenditure confirms this trend of sustained growth. From R$ 515.2, in 1993, it moved to R$ 710.7, in 1998. Considering the average per capita federal social expenditure in different administrations since 1980, the highest average social expenditure in the last two decades was registered in the period between 1995 and 1998.

The proportion of homes having access to appropriate water-supply services grew from 75%, in 1992, to 81%, in 1997; to sanitation sewage services, from 52% to 59%; to electric-power services, from 88% to 93%; and to garbage collection services, from 64% to 74%.

During the same period, the access of the poorer population to the resources of modern life and to durable consumer goods has also increased. Only 1% do not own a stove, 3.6% do not own a television set, 9.3% do not count on a radio set, and 20.6% do not own a refrigerator.

 The democratisation of access to land

As from 1995, the most important agrarian-reform programme of Brazilian history has started being implemented. In five years, circa 373 thousand families have received a plot of land and 13.2 million hectares - an area equivalent to three times the territory of Switzerland or nearly half of Italy’s - were either expropriated or purchased by government. Until the beginning of the decade, the monthly average of families settled was 606; during the last five years, it has risen to six thousand families a month.

The main programme is the school snack, which ensures 36 million meals a day to the students of the public teaching network during the two hundred days of the school year. Starting in 1995, a broad programme of distribution of basic foodstuff baskets to poor families in the 2000 poorest municipalities of the country has been established. In 1998, circa 30 million such baskets were provided.

The Programme of Struggle against Nutritional Insufficiency, of the Ministry of Health, carries out specific efforts of assistance to malnutrition-ridden children between the ages of six to 23 months and to pregnant women risking malnutrition. It involves the encouragement of breast feeding, nutritional surveillance, the supply of one litre of milk a day to children under the age of two and of a tin of soybean oil per month. Out of the 5.507 Brazilian municipalities, 4.722 participate of the programme, encompassing a universe of 845 thousand children, in addition to pregnant women.

 The expansion of programmes of assistance to children

Developed in partnership with non-governmental organisations, this programme has served 1.4 million poor children in day-care centres and kindergarten schools, in 1999, at the cost of R$ 241 million, without counting the service delivered by states and municipalities. With funds that amount to R$ 1.163 billion, the programme is intended to benefit - by 2003 - circa 1.8 million children from day-care centres and 1.1 million children enrolled in elementary school every year.

 Assistance to the disabled

The programme for Care of the Disabled is meant to ensure the rights of the disabled and to protect people having some physical or mental disadvantage against discrimination. In 1998, circa R$ 65 million were mobilised in activities aimed at diminishing the social exclusion of over 120 thousand disabled persons. In partnership with companies and non-governmental organisations, a series of efforts is being developed aimed at reducing the amount of disabled people that cannot work, at socially integrating the disabled and at improving their everyday life.

 Assistance to the elderly

The programme of Valorisation of the Health of the Elderly, in addition to promoting the health and the functional independence of people over 65, contemplates social-assistance efforts meant for the most destitute layer of this age group. The assistance activities for the elderly in institutions, socialising centres and home-care have benefited circa 265 thousand people, in 1999, with an expenditure of R$ 27 million.

Among other actions developed, the following highlight: the training project for people who take care of the elderly; the Walk for a Healthy Ageing, with the estimated participation of 500 thousand elderly people, and the National Campaign for Vaccinating the Elderly, that reaches 85% of the population over 65 - circa nine million people.

 Support for minimal-income programmes

The establishment of minimal-income programmes, so that the poorer families may keep their children at school - thence the best known name of school-scholarship - has been rapidly incorporated to the Brazilian social rights. Experiences of this sort have been developed in several municipalities.

Due to their nature, such programmes can only be developed at local level, in a decentralised manner, due to the dimensions of the country and to its enormous diversity. Furthermore, these programmes require public control and the commitment of communities. The federal government, however, has an active presence, in terms of normative, logistic and financial support, particularly in the poorest municipalities.

There are currently in existence two such programmes, Union-wide - both put in place starting in 1995. The first one is that of struggle against child labour, to be dealt with below. The second one, more recent and totally decentralised, is aimed at assisting the poorer municipalities in the implementation of the school scholarship. The federal government transfers half the total cost of the municipality programme, according to the calculation formula established by law. The value of the monthly benefit granted varies according to the per capita income of the poorer families and to the number of children in school age. When fully in place, the programme shall serve over three million families, with funds of R$ 1.5 billion per year.

 The elimination of child labour

Established in 1996, the Programme for the Elimination of Child Labour - PETI withdraws children between the ages of seven and 14 from debasing and risk activities, particularly in quarries, sugar-cane plantations and charcoal factories. The families of children selected by the programme receive from the federal government a monthly allowance in moneys, against the commitment that children will give up work and start regularly attending school. In late 1999, PETI was already assisting 145 thousand children in eleven states in the country. The target for 2000 is to assist 362 thousand children, and 866 thousand in 2002.

Children in situations of poverty, desertion and social exclusion also find support in Programme Brazil Citizen Children, which has invested R$ 103 million, only in 1998, in assisting 431 thousand children and teenagers in the ages of seven to 14. The programme offers educational, health and professional-training services.

Finally, the Programme for the Struggle against the Sexual Abuse and Exploitation of Children and Teenagers, which encompasses actions of the Ministries of Justice, Education, Health and Culture, counts on R$ 32 million, and intends to serve, by 2003, 17 thousand children with an extended school-attendance time. Campaigns against the exploitation of infantile and juvenile sex tourism have been regularly organised, in order to inhibit this sort of appeal still used by some tourism promoters.

 Assistance to youngsters in situations of risk

Youngsters under 24 from poor, low-income communities, in situations of personal and social risk have started receiving specific assistance by means of the Centres of Youth programme, which offers sport, leisure, education and culture activities. Eighty-six such centres are already in existence in several cities. They were established with federal-government funds and with the co-operation of states and municipalities. The goal is to put in place 1.050 Centres of Youth by 2003, giving priority to the poorest municipalities.

 Unemployment insurance and salary bonus

Wage earners receiving less than two minimal wages a month are entitled an annual bonus for the amount of one minimal wage. Over five million workers benefit from this salary bonus. Added to unemployment insurance, over R$ 5 billion are directly transferred to workers every year.

 Rural social security

It is the biggest agrarian and minimal-income programme in the country. It ensures a monthly income of one minimal wage to male and female peasants, even if they have never contributed to the social security system. Six million workers receive retirement benefits or pensions from the programme, at an annual cost of R$ 9.8 billion, funded by the social security budget.

From 1991 to 1996, rural social security experienced an enormous expansion: the volume of funds has increased by over 300%; the number of beneficiaries by over 50%, and the average monthly value of pensions and retirement benefits has almost trebled. In addition, the income of the peasant couple has doubled, because, starting in 1993, women are also entitled the benefit.

In small municipalities of the poorest regions, the number of participants of the programme reaches 20% of the population. If the beneficiary has one more family member as his or her dependant, which is common, almost half the inhabitants of those towns will find in rural social security the guarantee of a minimal income. The extension of this programme, associated to the stabilisation of the economy, has reduced the participation of rural poverty in the overall framework of poverty in the country.

 Modernisation of the social assistance policy

Starting in 1996, other programmes for the direct transfer of income have been created, under the Organic Law of Social Assistance - LOAS, which allowed the extension of a minimal-income support to the most vulnerable sectors of society. The concept of social assistance is now associated to permanent public efforts ensuring the exercise of basic social rights to groups affected by varying modalities and degrees of exclusion, such as the elderly and the disabled.

A deep institutional reform started the process of modernisation of the Brazilian social assistance policy. Decentralisation became one of the essential aspects of this new policy. Anticipated by the Constitution of 1988 and by LOAS, its implementation began after the extinction of the Brazilian Legion of Assistance - LBA, in 1995.

The quality and efficiency gains were immediate. A client-clique based organisation established in the 1950s, the LBA was, for decades, the body in charge of the management of agreements with philanthropic organisations for the provision of assistance to children and to the elderly. The LBA used to consume enormous amounts of public funds without presenting compatible results in terms of efficiency. In fact, the LBA was but a mechanism meant for granting political favours and for centralising policies, susceptible of corruption.

In 1995, the LBA was replaced by the Secretariat for Social Assistance of the Ministry of Social Security and Assistance, which currently carries out, in a decentralised manner, the main government actions in this domain. In addition to decentralisation, the qualitative progress of the Brazilian social policy in recent year was fostered by the introduction of social-control mechanisms and of instruments of external assessment of efforts carried out. All income-transfer programmes created ever since have incorporated this approach.

 Minimal income for the disabled

Ensures the disabled having a per capita family income of up to 1/4 of the national minimal wage a monthly allowance for the amount of one minimal wage. Over 1.3 million people receive this benefit, at an annual cost of R$ 1.5 billion.

 Minimal income for the elderly

There are two types of benefits for the elderly: the monthly income for life for those not having any other permanent source of income, granted since 1974 and by way of becoming extinct, and the programme for the guarantee of a minimal income, which is gradually replacing the previous system. Created in 1996, under LOAS, the minimal-income programme ensures to the portion of the elderly population having a per capita family income of up to 1/4 of the minimal wage the benefit of a monthly minimal wage. The current coverage of this segment of the population, currently 79%, is intended to be expanded, in order to reach at least 90% of the target population by 2003.

As a whole, only the federal programmes of direct income transfer move over R$ 17 billion a year, that is circa 2.4 % of the 1999 GDP, and represent socially desirable forms of utilising resources of the National Treasury and of social security.

Publications

Summary

Commitment 3