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Brazil: Loan to Help Build on the Legacy of Chico Mendes in the Brazilian Amazon

Available in: Português

Contacts: Brasília – Mauro Azeredo (+55 61) 3329-1059

mazeredo@worldbank.org

Washington – Stevan Jackson (+1 202) 458-5056
sjackson@worldbank.org

 

Project to be signed today with President Lula will help the State of Acre carry on ground-breaking work in inclusive and sustainable development

Approval coincides with the twenty-year memorial of Mendes’ assassination

WASHINGTON, December 19, 2008 – The World Bank Board of Executive Directors approved yesterday a loan to the State of Acre, in Brazil’s Amazon Region, for the Social and Economic Inclusion Project (PROACRE). The US$120 million loan will support the State’s efforts to deliver basic services to vulnerable populations and at the same time promote its strategy of economic development based on the sustainable use of Acre’s rich natural resource base. The loan will be signed in a special ceremony with President Luiz Inácio Lula da Silva and Acre Governor Binho Marques today, in Brasília, as part of the events marking 20 years of the assassination of world renowned environmentalist and social activist Chico Mendes.

 

"In the last 20 years, I have participated directly or indirectly in the outset of several projects with multilateral organizations, whether as a member of the National Rubber Tappers Council or as a manager of public policies, but no previous experience compares with the one I am having in PROACRE,” said Binho Marques, Governor of the State of Acre. “Starting with the first discussions with the World Bank teams, I have had the clear impression that something very special was happening. We spoke with deep emotion about several themes, using the same tone and purpose. This feeling became a reality during the project’s construction. Our teams mingled and became as one. The first result is now becoming a reality, with the project’s approval and signing in record time. In all, this has been a wonderful experience, and the reward will be an Acre that is more just, cleaner, more balanced and productive.”

 

“For too long there has been a sterile debate, pitting development against the environment. Chico Mendes pioneered a new way of integrating development and conservation, for the good of people and the environment,”said John Briscoe, World Bank Director for Brazil. “In the ensuing 20 years Chico Mendes’ associates and followers have made great strides in translating this philosophy into public policies and programs. There is complete congruence between the States’ strategy and the World Bank’s Amazon Partnership Framework, which guides the Bank’s growing portfolio of investments in sustainable development in the region.”

 

To foster community participation and ownership, the Government of Acre will utilize Community Development Plans (CDPs) to enable communities to select and define the productive activities at the local level. The CDPs will also determine a set of services to be delivered according to community needs, and represent an important strategy of integration across education, health and productive activities.

 

Different responses for different realities

To serve these various communities with the interventions that are appropriate to their needs, the project has designed a series of activities grouped into five components, defined by target communities' characteristics and service delivery approaches. The purpose is to ensure articulation and access from the poorest rural dispersed population to education, health, and sustainable production services in Acre´s complex geography. In addition to project management and monitoring, the loan has four main operational components that will:

 

Acre, Chico Mendes and Florestania

Located in the far east of Brazil, Acre has an area as big as Tunisia or Illinois, and a population of approximately 700,000. Formerly a part of Bolivia, it was populated by Brazilian rubber tappers and eventually purchased by Brazil after a revolution at the end of the nineteenth century.

More recently, environmentalist Chico Mendes is credited as the creator of the modern “Acrean identity”. Mendes, who was murdered in 1988, is a national hero of Brazil and is emblematic of the “florestania” concept, which unites sustainable use of the forest with social inclusion and citizen’s rights for the vulnerable population of the State.

Acre has the third smallest economy among Brazil’s states, based on extractive and forestry activities. Its per capita income of US$ 2,810 is the 10th lowest in the country. Despite significant recent improvements, many of the state’s social and economic indicators are well below the Amazon and Brazilian averages. Acre still maintains 88% of its original forest cover.

Provide basic services for isolated communities (US$24.8 million). This component will support the provision of basic services in health, education and agricultural extension services, including technical and financial assistance, to Acre’s dispersed and most isolated communities. It will expand access to health and education services by using informal and non-traditional methods of reaching children, youth, young adults and ethnically diverse populations.

Promote social and economic inclusion in rural areas (US$39.1 million). This component will improve the quality of education and health services and improve income levels of the population living in these communities by supporting selected production chains. Participatory Community Development Plans will support the identification, definition and selection of productive activities that will be implemented by each community. This component will also support professional training for workers in agriculture and industry.

 

Support entrepreneurship in selected poor urban communities (US$42.7 million). The objective of this component is to promote social inclusion of urban communities in areas of high socioeconomic and environmental vulnerability. The component will promote economic empowerment by supporting community enterprises and the expansion of micro-credit and vocational training.

 

Strengthen public policy and institutional capacity (US$37 million). The component will help modernize state agencies, with emphasis on those involved in Project implementation; support the decentralization of basic services in health and education; and introduce results-based management strategies in selected sectors.

 

“It is impressive how far the state has come in terms of improving the living conditions to its urban and forest population since the days of Chico Mendes,” said Adriana Moreira, Project Team Leader at the World Bank. “It is an honor to the Bank to be a partner to the State in taking this forward, and we would like to congratulate the Government team for their work and dedication.”

 

This US$120 million loan from the International Bank for Reconstruction and Development (IBRD) to the State of Acre is guaranteed by the Government of Brazil. The loan period is 28 years, including a seven-year grace period.

 

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