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Biblioteca Brazil - Poverty Reduction, Growth, and Fiscal Stability in the State of Ceara : A State Economic Memorandum, Volume 1. Policy Report

Brazil - Poverty Reduction, Growth, and Fiscal Stability in the State of Ceara : A State Economic Memorandum, Volume 1. Policy Report

Brazil - Poverty Reduction, Growth, and Fiscal Stability in the State of Ceara : A State Economic Memorandum, Volume 1. Policy Report

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Date of publication
Agosto 2013
Resource Language
ISBN / Resource ID
oai:openknowledge.worldbank.org:10986/14979

Although the State of Ceara, in Brazil,
is a model of good economic, and fiscal performance given
its poverty status, recent analysis show poverty remains
severe, in spite of significant reductions over the last
decade. The combination of good governance, and sound fiscal
management, industrial promotion, and public investments
have been successful, but the report questions whether
different policies, could have led to higher growth, and
poverty reduction, or, whether it is simply a matter of time
to further reduce poverty rates. Arguably, Ceara can
continue to develop economically, based on favorable assets,
such as agriculture, or tourism, on a large labor force with
wages comparatively low by Brazilian standards, and on
fiscal responsibility. But development is constrained by low
productivity, low education levels, and by large populations
living in stagnant regions, where water accessibility is
limited. While alternatives either suggest to: strengthen
the existing policy on industry development; focus on
massive public investments, namely education, and
infrastructure; or, exercise an explicit welfare strategy,
recommendations stipulate improvements in education,
development of public-private partnerships, removal of
industrial incentives through reform policies,
implementation of institutional framework for water resource
management, and, overall social safety nets to reduce poverty.

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