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World Bank Document A WORLD BANK COUNTRY STUDY Pw Public Disclosure Authorized BRAZIL Integrated Development of the Northwest Frontier Public Disclosure Authorized r Public Disclosure Authorized N, Public Disclosure Authorized JUNE 1981 BRAZIL Integrated Development of the Northwest Frontier This report is based on the findings of a mission which visited Brazil during the period from October 15 to November 7, 1979. The mission was composed of: Dennis J. Mahar, chief of mission Maurice Asseo, deputy chief of mission James Coates, agricultural economist Robert Goodland, ecologist Simon Hocombe, agronomist, FAO/CP John Landers, agronomist, consultant John Redwood, regional planner, consultant Renato Schulz, transport economist Nils Tcheyan, agricultural settlement expert, consultant George Watson, tree crops specialist, consultant The findings of subsequent missions have been employed to update the discussions of: demo- graphic trends, Amerindians, agriculture and transportation. Latin America and the Caribbean Regional Office The World Bank Washington, D.C., U.S.A. The World Bank issues country economic studies in two series. This report is a working document and is, as such, part of an informal series based wholly on materials originally prepared for restricted use within the Bank. The text is not meant to be definitive, but is offered so as to make some results of internal research widely available to scholars and practitioners throughout the world. A second, more formal series entitled World Bank Country Economic Reports is pub-, lished for the Bank by The Johns Hopkins University Press, Baltimore and London. Titles of these and all other bank publications may be found in the Catalog of Publications,which is available free of charge from World Bank, Publications Unit, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. This report is a free publication. A small charge may be made if airmail postage is required. The views and interpretations in this report are the authors' and should not be attributed to the World Bank, to its affiliated organizations, or to any individual acting in their behalf. Copyright i 1981 The International Bank for Reconstruction and Development/The World Bank The World Bank enjoys copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, permission for reproduction of any part of this report is hereby granted provided that full citation is made. CURRENCY EQUIVALENTS Cruzeiros/US$ at End of Period 1975 9.07 1976 12.35 1977 16.05 1978 20.92 1979 42.53 1980 64.21 1981 January 68.44 Source Central Bank Bulletins TABLE OF CONTENTS Page No. COUNTRY DATA GLOSSARY OF ACRONYMS MAP SUMMARY AND CONCLUSIONS .................. i- vi I. INTPODOCTION .................................................... 1 II. DEVELOPMENT PLANNING FOR THE NORTHWEST ........................ 3 Administrative Structure ................................ 3 Federal Special Programs ................................ 4 State Development Plans ....................................... 8 III. POPULATION, MIGRATION AND SOCIAL INDICATORS .................. 10 Population Growth and Spatial Distribution ................... 10 Migration ...................................................... 14 Education and Health .......................................... 19 IV. AMERINDIANS .................................................... 23 Legislation .............................................. 23 The National Indian Foundation (FUNAI) ....................... 24 Identification and Protection of Indian Lands ......... 29 The Situation of the Indian in the Northwest ................. 31 The FTNAI Program for the Northwest ........................... 34 Issues and Recommendations .............................. 36 V. ENVIRONMENTAL ISSTE.S AND POLICY ......................... 38 The Natural Environment of the Northwest ..................... 38 Land UTse and the Environment ................................. 41 Covernment Institutions and Policies ......................... 43 VI. LAND SETTLEMENT ................................................ 46 General Background ............................................. 46 Jlato Grosso................................................... 46 Pondonia .................................................... 49 Proposed Settlement Programs ................................. 54 TA.RIE OF CONTENTS (Continued) Page No VII. AGRICULTUR .................................................... 57 Introduction ........................................ 57 Resource Base ....................................... 57 Current Development Patterns ........................... 59 Land Tenure .................................................... 65 Government Support Services .................................. 72 Constraints and Recommendations ........................ 75 Production Forecasts .................................. 77 VIII. INDIJSTRY .............................................. 83 Industrial Structure .................................. 83 Constraints and Prospects .................................... 84 Industrial Policy ...................................... 85 IX. TRANSPORTATION ......................................... 87 Overview ....................................................... 87 The Present System ............................................. 87 Current Traffic Flows ......................................... 91 Estimated Futulre Traffic Flows ............................... 93 Issues and Recommendations ................................... 94 ANNEX: Agricultural Production Forecasts ................... 98 TABLE OF CONTESi'S (Continued) LIST OF FIGURES Page No. 26 1. FUNAI: Present Organization ................................. 2. Sequence of Land Use Under Present System of Agriculture ........................................ 62 TABLE OF CONTENTS (Continued) LIST OF TABLES Page No. 1. POLONOROESTE Budget, 1981-85 ........................... 6 2. Northwest Region: Total Population, Land Area and Population Density, 1980 ............... 12 3. Northwest Region: Average Annual Rates of Population Growth, 1960-70, 1970-80, 1960-80 ......... 13 4. Number of Persons Processed at Rondonia Migration Orientation Center (CETREMI), 1976-80 .... 15 5. Rondonia: Previous Agricultural Experience of Settlers in Selected Official Colonization Areas 19 6. FUNAI Budget, 1979 ..................................... 27 7. Northwest Region: Population, Size and Status of Official Indian Areas ............................ 32 8. Northwest Region: Major Vegetation Types ................... 40 9. Size and Capacity of INCRA Settlement Projects in Rondonia ....................................... 49 10. Titles Issued by INCRA in Rondonia Settlement Projects, 1973-80 .................................... 51 11. INCRA Road Building in Rondonia Settlement Projects, 1971-78 .................................... 52 12. Northwest Region: Land Capability Classification ...... 58 13. Northwest Region: Agricultural Land Use, 1978 ......... 60 14. Mato Grosso and Rondonia: Area, Output, and Yield Date for Key Crops, 1978-79 .................... 64 15. Northwest Region: Distribution of Farms by Major Tenure Groups, 1975 ............................ 69 16. Northwest Region: Size Distribution of Farms, 1975 71 17. Northwest Region: Forecast of Total Agricultural and Timber Output, 1984, 1989 and 1994................... 80 18. Northwest Region: Estimated Value of Key Traded Commodities, 1984 and 1989 ................... 82 Annex Tables A - 1. Population and Consumption Assumptions ...................... 99 A - 2. Underlying Price Assumptions for Selected Commodities, 1979, 1984 and 1989 ..................... 100 A- 3. Northwest Region: Forecast of Exportable Agricultural and Timber Output, 1984, 1989 and 1994 .................. 101 Page 1 of 2 COUNTRY DATA - BRAZIL AREA POPULATION DENSITY (1979) 8,512,000 km 119.0 million (September 1980) 14.4 per km Rate of Growth: 2.8% (from 1970 to 1979) POPULATION CHARACTERISTICS (1978) HEALTH (1977) Crude Birth Rate (per 1,000) 36.0 Population per physician 1,700 Crude Death Rate (per 1,000) 9.0 Population per hospital bed 253 INCOME DISTRIBUTION (1972) DISTRIBUTION OF LAND OWNERSHIP 70 of national income, highest quintile 66.6 % owned by top 10% of owners 45.0 lowest quintile 2.0 % owned by smallest 10% of owners 1.5 ACCESS TO SAFE WATER (1975) ACCESS TO ELECTRICITY (Most recent estimatea/ Percentage of population 77.0 % of population - total 63.0 - rural 19.2 NUTRITION (1977) EDUCATION (Most recent estimate) Calorie intake as % of requirements 107.0 Adult literacy rate % 75.7 Per capita protein intake (grams/day) 62.7 Primary school enrollment % 90.0 GNP PER CAPITA in1979 US$1,687 GROSS NATIONAL PRODUCT IN 1979 ANNUAL RATE OF GROWTH (%. constant prices) 1977 1978 1979 GNP at Market Prices 198,790 100.0 4.5 5.8 5.7 Gross Domestic Investment 46,176 23.2 -0.6 9.4 7-3 Gross National Saving 36,313 18.3 1 11.2 4.4 Current Account Balance 10, 021 -5.0 1.1 Exports of Goods, NFS 16,697 8.4 -0.4 17.8 7.4 Imports of Goods, NFS 21,915 10.9 -7.6 9.5 7.8 OUTPUT, EMPLOYMENT AND PRODUCTIVITY IN 1977 Net Domestic Product EMPLOYMENT NDP per Worker US $Mln. % Mln. % US$ % Agriculture 16,746 12.4 15.6 35.8 1,073 34.6 Industry 50,350 37.3 10.0 22.9 5,035 162.6 Services 67,953 50.3 18.0 41.3 3,775 121.9 Total/Average 135,049 100.0 43.6 100.0 3,097 100.0 GOVERNMENT FINANCE Federal Government (Cr$ Bln.) % of GDP 1979 1979 1972 Current Receipts 544.2 9.9 10.4 Current Expenditure 460.4 8.4 9.9 Current Surplus 83.8 1.5 0.5 Capital Expenditures 43.7 0.8 0.6
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