Growth vs. Sustainability: The Brazilian Dilemma and the PoliticoInstitutional Solution Marcio Ranauro On the 26th April 2007, President Luis Inácio Lula da Silva - upon signing the Provisional Measure 366/2007 which divides IBAMA, (Brazilian Institute of the Environment and Renewable Natural Resources), and creates the Chico Mendes Institute for the Conservation of Bio-diversity - implemented a new climate for environmental protection and conservation in the country. Such a measure, accompanied by statutes for regulating the decision1, immediately generated adverse reactions, as much from IBAMA officials as from the environmental movement active in the country. The principal effect of this Provisional Measure is that it removes from IBAMA the responsibility for the management of the Federal Conservation Units (UCs), concentrating its powers on environmental inspection, monitoring and licensing, including the authorisation of exploration for natural resources. Therefore, some of the existing IBAMA offices across the country will be handed over to the Chico Mendes Institute, thereby fragmenting its activities, dividing its responsibilities and affecting the environmental decisions of the most important body in the country in this area - responsible, as it is, for the regulation of environmental preservation across the entire national territory. Such an attitude from the Federal Government can be directly associated with the launch of the P.A.C. - Programme for the Acceleration of Growth/Development - which has, as principal objective, the execution of logistics infrastructure projects, energy generation, sanitation and housing, for the growth of the P.I.B. - Brazilian Gross Internal Production - which depends directly on environmental licensing. According to the criticism of environmentalists and IBAMA officials, the division of the body aims to facilitate licensing, thereby creating a situation  Social Scientist, Masters Student at CPDA, UFRRJ,and Socio-Environmental Consultant. On the same day on which the Provisional Measure was published, the government also detailed the regulatory structure and demonstrative outline of the responsibilities of the two bodies. (Statutes nº. 6.099 and 6.100, 2007). 1 that places the objectives of the P.A.C. above the mechanisms of environmental evaluation. According to critics, the division of the body will bring about a rupture between licensing activities and the creation and management of the Federal Conservation Units (UC's), which, in turn will automatically increase bureaucracy and the risk of illegal activities. Within the current structure, the environmental licensing of projects close to the UC's occurs in an integrated and centralised fashion2. Beyond these worries, the environmental movement also fears a possible lack of resources for the management of the UC's. In Brazil, a large part of these resources originate from compensatory measures resulting from these same licensing procedures. With the division of the body it is probable that the concentration of the interest of the government and the contractors in the infrastructure projects will impose a liberalisation of licensing without taking into account the compensation of resources destined for the maintenance of the UC's. We can add to this the risk of the consequent division of resources between the two bodies. Within a few days of the publishing of the Provisional Measure, almost all of the IBAMA offices across the entire country went on strike, demanding the immediate withdrawal of the PM 366/2007. Such a reaction was based on the idea that this action from the President could be a response to the supposed reluctance by the body in granting a licence for hydroelectric construction works on the Madeira River in Amazonia3, one of the P.A.C.´s largest energy generation projects. In this light, the PM which has divided IBAMA, can be seen as a reaction to IBAMA´s reluctance to grant licences. Almost all of IBAMA´s activities are currently paralysed, awaiting judicial decisions about the revocation of the Provisional Measure, or the establishment of dialogue which could bring about a revision of such. 2 Some Members of Parliament and IBAMA employees believe that with the division the licensing procedures have become slower due to the necessity for the presentation of reports from both bodies when the activity occurs close to a Conservation Unit. 3 The construction of the Hydroelectric works on the Madeira River tends to cause different socioenvironmental impacts, principally linked to the size of the lake which is being generated; also in relation to the modification in the flow of sediments which the river transports and the reproduction of the diversity of fish which thrive there. It must also be emphasized that the creation of an important hydroelectric dam such as this tends to induce a model of development inappropriate for Amazonia, which requires a form of development equivalent to the necessity for the preservation of the rainforest. The Chico Mendes Institute for the Conservation of Biodiversity The division of responsibilities between the Chico Mendes Institute and IBAMA is seen by its officials as a loss of the ´IBAMA´ trademark, who consider it a patrimony of the Federation4. The creation of a new body represents a loss of status and credibility with regards to the environmental protection activities of the Federal Government. On the other hand, those environmentalists more in favour of the creation of areas of 'complete protection' understand that the creation of the Chico Mendes Institute, by the very choice of its name reveals a strengthening, in terms of governmental politics, of the Conservation Units of 'sustainable use' (those that permit the permanence of population). Such criticism begins with the very choice of the name Chico Mendes5 for the institute, which is the fruit of the socio-environmentalist profile of the Minister for the Environment, Marina Silva. At first this measure was welcomed by the environmental movement, in the sense of bringing about a highlighting of the management of the Federal Conservation Units. However, the creation of the Chico Mendes Institute, in the current context, is receiving strong resistance as it has been exactly timed to coincide with the launch of the P.A.C., bursting as it is with infrastructure building projects of great environmental impact. Beyond this, the fragmentation of responsibilities implies a significant reduction in the structure of IBAMA, already considered insufficient for country's environmental management needs6. 4 It is necessary to emphasize that a large part of the workers participating in the strike in protest against the PM introduced by the government, are young civil servants who have been taken on in recent years, and who play a crucial role in the renovation of the activities of IBAMA, and in the promotion of a more militant and 'environmentalist' posture presented by the body. 5 Historically, Chico Mendes 'environmental' struggle was marked by his use of an environmental discourse to attract attention to the rubber tappers´ cause, and prevent the cutting down of rubber trees in Acre. Hence the worry for the more preservationalist environmentalists, that the body will favour the activities of sustainable use of natural resources in the UC's. 6 Of the 150 IBAMA environmental inspection posts in municipalities in Brazilian rural areas, only 16 will continue functioning, thereby reducing the inspection and monitoring of the use of natural resources. Reactions from the Public In the heat of all this discussion over the implementation of the P.A.C. and the 'division of IBAMA'7, the public has been accompanying the debate via news channelled through the media. In general the IBAMA strike has been treated as an impediment to the economic growth of the country for bringing about the delay in the licensing of P.A.C. building works. At the same time, IBAMA officials, represented by ASIBAMA - Association for the employees of IBAMA - have been posting letters on the internet in search of support for the revocation of Provisional Measure 366/2007, considering it harmful to the process of environmental preservation, and therefore infringing on the Human Rights of the Brazilian people. This movement has received the support of members of parliament of the Federal Congress, calling into doubt the approval of the Provisional Measure by Parliament. It is important to recognise that this movement catalysed by the employees of IBAMA has brought about a string of debates within the National Congress, with the participation of the public (the so-called environmentalists), focussed on the revision of a governmental decision taken without prior consultation. One can conclude that, with the introduction of the PM 366/2007 by the Federal Government, a new ambience for the conservation and protection of Bio-diversity in Brazil has been created, leaving many doubts hanging in the air about the federal mechanisms of environmental management, and the currently adopted model of economic growth. Within this scenario, a revocation or not of this Provisional Measure will indicate, in the near future, what form the profile of Brazilian Environmental Conservation will take. 7 It is in this way that the creation of the Chico Mendes Institute for the Conservation of Bio-diversity is being seen.