Brazil’s Role in Global Issues
Agenda
•
•
•
•
Foreign Aid
Current Diplomacy
Energy/Ethanol
Environment
Brazil’s Foreign Aid Program
• Brazil's provision of foreign aid to developing
countries is not new; Member of the SSC (SouthSouth cooperation) for the past 40 years
• The South American giant is both a recipient and
provider of aid which gives it a better understanding
of the needs and constraints facing developing
countries as aid recipients
• The foreign aid program in Brazil supports agriculture,
health, education and technological growth in
developing countries
• Brazil’s lavishing assistance in Africa and Central
America has helped it compete with China and India
for soft-power influence in the developing world
Brazil Gives Back
 Brazil is heavily involved in the most successful post earthquake
initiative in Haiti (Lèt Agogo)
 Embrapa, a Brazilian research outfit, has helped significantly
increase cotton yields in Mali
 Odebrecht, a Brazilian construction firm, is building much of
Angola’s water supply and is one of the biggest contractors in
Africa
 Brazil contributes $300 Million to the World Food Program, $350
Million to Haiti, $100 million to United Nations Development
Program, $30 Million to ABC (Brazilian Cooperation Agency) and $
450 million for in-kind expertise provided by Brazilian institutions
involved in technical cooperation around the world
 BNDES, Brazilian State Development Bank has given out over $3.3
Billion in loans to developing countries in Central America and
Africa since 2008
Foreign Aid Notable Facts
• Current calculations suggest that Brazilian aid is
around $1 Billion a year which puts it on par
with India, Sweden and Canada
• This surge in aid has put Brazil ahead of other
Development Assistance Committee members
like Finland, Ireland and Portugal.
• Brazil’s foreign aid policy has come under some
scrutiny at home and abroad because the
country still has large pockets of third world
poverty.
Brazil and the U.S.
• Brazil wants to be respected as a world power
–
–
–
–
Protect its own interest in international affairs
U.N. Security Council
Humanitarian mission in Haiti
Non-interventionist
• U.S. wants to ensure exports to Brazil, spur jobs
in the U.S.
• “Arguably the most effecting intermediary
between Washington and a resurgent, anti-U.S.
Latin left”
• Hemispheric divide of interests
Diplomacy in Iran
• 2010, President Luiz Inacio Lula da Silva traveled to
Tehran to discuss Iran’s nuclear plans with President
Ahmadinejad
• U.S. & U.N. not pleased, seen as way to stall proposed
sanctions
• Brazil opposed sanctions, wanted to protect its own
nuclear interest
– Developed uranium enrichment capabilities in secret in the
1970s
– Signed the Nuclear Nonproliferation Treaty a decade later
• Widely regarded as having little to do with Iran, and
more to do with Lula’s interest in earning respect
Energy in Brazil – Ethanol
• 1973 oil crisis (oil embargo by Arab members of OPEC) spurs
Brazilian government to invest in R&D for alternative energies
• Since 1976, minimum amount of ethanol must be blended with
gasoline in fuels
–
–
–
–
all gas stations must sell gasoline, diesel, and ethanol by law
Cleaner and cheaper to produce than oil (and U.S. corn-based ethanol)
61% decrease in greenhouse gas emissions vs. gasoline or diesel
18-25% of fuel blends must be ethanol (2011)
• Brazilian car manufacturing industry develops “flex-fuel”
vehicles that can run on either gas or ethanol
– 92% of all new cars and light vehicles sold in 2009 were flex-fuel
– Driver chooses which type of fuel to use
Energy in Brazil – Ethanol
• 2nd largest ethanol fuel producer globally (30% of global supply;
US 50%)
– Agricultural advantage: Brazil produces 40% of world’s sugarcane
– 2011 decline in Brazil’s ethanol exports (high prices and unfavorable
weather damaged sugarcane crops)  US #1 in 2011
• Not necessarily an energy panacea
– Need more land for sugarcane crop rainforest deforestation (and higher
net carbon emissions), endangered species
– Nitrogen fertilizer used to grow sugarcane produces nitrous oxide
(greenhouse gas)
– Working conditions of sugar field workers
• Looking ahead:
– 12/31/2011: expiration of (a) US tax credits for corn-based ethanol and (b
sugarcane ethanol import tariffs opens US market to Brazilian sugarcane
ethanol firms (e.g. Cosan)
The Environment:
Growing Support for Legislation
• 1986- Brazilian National Environmental Policy
(BNEP) signals serious effort to improve
• Deforestation and loss of Amazon are biggest
global concerns
• Brazil leads air and water pollution reduction
efforts in emerging markets
Climate Change Initiatives
• 16.2% of Brazil’s forest were cleared
by 2003
– Loss of land productivity, biodiversity
loss, net emissions of greenhouse
gases, and irregular water cycles
• 2010 Climate Change Conference
COP 15- reduce greenhouse gas
emissions between 36-39% by 2020
• 2011 REDD policy changes may
reopen Amazon to logging and allow
non-native species
– Suggesting privatization of forest and
soils through carbon markets
Reducing Air and Industrial Pollution
Air:
• Sao Paulo- only certain cars with a license plate ending on a
corresponding day of the week to drive certain days.
Water:
• Chevron oil spill in November 2011- 3% of total production;
Brazil demanding $10.6B in damages and threat of shutting
down operations
• Implemented quality and quantity-related water charges in
regulations to promote reuse
Hosting 2012 Earth Summit (Rio+20)- signal of commitment to
sustainable development and green economy with necessary Open
Government Partnership