 Washington, September 23, 2008 – The World Bank’s Board of Directors today approved a loan in the amount of US$20.8 million for the Sergipe State Integrated Project: Rural Poverty, which is aimed at expanding social and economic opportunities for the poor in the rural areas of the state, through greater access to basic socioeconomic infrastructure.
“The program seeks to generate productive activities through local associations and cooperatives, boosting the income of small farmers in Sergipe, while guaranteeing employment and development and improving the quality of life of individuals,” stated the Governor of Sergipe, Marcelo Déda. “This project is an essential component of the State’s Strategic Program, which has social inclusion as its main focus. This will reduce inequalities between Sergipe's eight territories through a new public management culture of democratic engagement, and will promote the sustainable development of the region, mainly through the contributions of family agriculture and of the rural communities of the State”.
The loan continues the work begun in the first Rural Poverty Alleviation loan to the state, also in the amount of US$20.8 million, which directly benefitted more than 100,000 families. The projects use the community-driven development methodology, which allows rural farmers’ associations to make autonomous decisions on local development investments and priorities. “Experience with poverty alleviation projects in Brazil demonstrates that local communities are capable of executing investment subprojects, working closely with municipal authorities,” stated John Briscoe, World Bank Director for Brazil. “The new loan will stimulate investment in small-scale, community-managed infrastructure that will generate income for the poor in rural areas. The loan will also foster greater integration of State and Federal rural development policies, programs, and projects.” The loan will help build capacity in rural communities to organize themselves collectively and meet their own needs; improve the local governance of community organizations and Municipal Councils; and promote greater integration of rural development policies, programs, and projects at the local level. “There have been important progresses in recent years in improving basic services availability to rural populations in Sergipe,” said Jorge Muñoz, World Bank’s Project Manager. “The percentage of households without access to electricity declined from 23 percent in 2003 to 12 percent in 2006. However, much remains to be done in order to improve the quality of life of the rural populations in Sergipe, given that more than 46 percent of families in these areas do not have running water in their homes.” Sergipe is the smallest state in Brazil and ranks 23 among 27 states in the Human Development Index. Approximately 54 percent of its 1.93 million inhabitants are poor. Poverty is even more widespread in rural areas, where the income of 50 percent of families is below the minimum wage (about US$ 250 per month) and 60 percent live on less than two minimum wages. This US$20.8 million loan from the International Bank for Reconstruction and Development (IBRD) to the State of Sergipe is guaranteed by the Government of Brazil. The loan period is 20 years, including 5 years grace period. Since 1977, the World Bank has invested more than US$330 million in the State, mostly for rural poverty reduction, water resources and education programs. More details on the project can be found at: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P110614 |
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