World Bank Warns Brazil: ‘You Need to Invest in Infrastructure’

The vice-president of the World Bank (IBRD – International Bank for Reconstruction and Development) for Latin America and the Caribbean, Pamela Fox, warned, of the need for Brazil to invest in infrastructure to ensure long-term sustained development.

Fox, who is making her first official visit to Brazil since assuming the post on January 1, left her meeting with the Minister of Finance, Antônio Palocci, saying that she is enthusiastic over the country’s macroeconomic policy and the 5% growth in the Gross Domestic Product in 2004.


“The economic team has been working very well in the Ministry of Finance. They presented sustainable macroeconomic policies, and we hope that the Ministry continues along these lines.


“We don’t think the pace of growth will decline. But, in the long run, Brazil shares growth obstacles with other Latin American countries. One of them is the need to keep investing in infrastructure,” Fox observed.


In her view, the government knows it must invest in infrastructure. “But there exist fiscal space limitations in the budget.”


One of the alternatives she mentioned is the Public-Private Partnerships (PPP’s) program, which was the theme of her conversation with Palocci.


She said that the IBRD supports the PPP’s project, which was sanctioned by President Luiz Inácio Lula da Silva on December 30, and is studying ways to participate, but there is still no specific project on the table.


“We are ready to analyze any infrastructure project in which the government is interested in including the bank,” she affirmed.


Water and sanitation are other areas of interest to the IBRD for future PPP’s.


The World Bank has been collaborating with Brazil since 1949 and has already provided US$ 35 billion in funding.


Currently, the IBRD is financing 50 projects involving US$ 6.2 billion in direct investments.


The projects are related to the war on poverty and social and economic development, with an emphasis on health, education, water, infrastructure, and environment.


Translation: David Silberstein
Agência Brasil

Tags:

Ads

You May Also Like

Brazil’s 3-1 Win Over Croatia Wasn’t a Good Start. Just a Bad Omen

Well, we’re off to the races! This has turned out to be a season ...

Brazil’s Best-Selling Paulo Coelho Posts Novels on Web for Free

Publishing House HarperCollins has declared 2008 the year of Brazilian best-selling novelist Paulo Coelho. ...

Petrobras Brings Cleaner Diesel to Brazilian Market

Petrobras, Brazil's state-controlled oil multinational, informed that it is going to start distributing diesel ...

Brazil Breaks Territory into ‘Little Countries’ to Avoid Spread of Chicken Disease

Beginning in 2006, poultry production in Brazil is expected to adopt the model used ...

Shoes Not Only Made In But Also Of Brazil for the Foreign Market

A program for encouraging exports of Brazil made shoes called Brazilian Footwear, is going ...

Paraguay Gets a Hand from Brazil’s Electoral Expertise

Paraguay’s electoral process will enjoy a major boost, thanks to an agreement the Organization ...

Lack of Evidence in Bribery Probe Against Lula Gives Boost to Brazil

Latin American shares rose across the board; although, it was a Brazilian rally that ...

Texas-Based Firm Partners with Brazil in Spreading Computer Culture

The Education Secretariat of Goiás state in Brazil has launched the Simdesk on-demand computing ...

Loans in Brazilian Congress Were Just Way to Bypass the Law, Says Report

The joint preliminary report by the Post Office and Vote Buying Congressional Inquiry in ...

Brazil’s Bolsa Família in Northeast Can’t Take People out of Misery

A new study just out by Brazil’s Ministry of Social Development (MDS) has found ...