THE POLITICS OF EDUCATION FUNDING IN BRAZIL, 1964-1984 by PEDRO LINCOLN C. L. de MATTOS Department of Government The London School of Economics and Political Science Thesis submitted to the University of London in partial fulfilment of the requirements of the degree of Doctor of Philosophy Aut umn, 1988 UMI Number: U615529 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U615529 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 f 65&S Edineide "The Brazilian nation should feel emotion in facing the drama of education in this country. " Col. S6rgio Pasquali, former General Secretary of the Ministry of Education and Culture (who felt this emotion himself) ACKNOWLEDGMENTS The people and institutions listed below are not likely to be among the readers of this thesis. They have already dealt with it sufficiently... It is difficult, however, to be brief in these acknowledgments. Some institutions supported and made this work possible: the Brazilian Agency for University Staff Training (CAPES), the Federal University of Pernambuco (UFPE), The London School of Economics and Political Science <LSE> and The British Council. My personal acknowledgments go to my supervisor, Dr George Philip, who trusted me when this thesis still was in a sort of "pre-history with uncertain future"... I am especially thankful to each of the distinguished people I had the honour of interviewing for this research. Most of these decisive contributions to my work would not have been possible without the contact arrangements made by Col. Pasquali and Gen. Ludwig. Friends and companionship, particularly in the Ministry of Education, had a crucial role in the provision of original information and support, during the fieldwork between September and November 1986 or afterwards. They are too numerous to be individually named but each of them was too helpful to be omitted. In this dilemma, I mention Messrs Jo£o Paulo Peixoto, Claudio Neiva, J. Juc& Junior, Mesdames Lucia Barbosa, Ecilda Ramos and Odete Lapa, and Mr and Mrs Natanael Gomes as models of this attitude in which friendship overtook solicitude. ABSTRACT THE SUBJECT. This thesis lies in the field of public policy and its purpose is to interpret the decision-making process of education funding by the Brazilian federal government during the period 1964-84. The descriptive approach is meant to leave room for original information on a recent aspect of the educational issue in Brazil. THE MAIN ARGUMENT. As from the mid-fifties the impetus of the country's industrial economy raised the standard of development as the leit motiv of policy-making. Traditional, liberal views of public responsibilities in education services on the grounds of humanistic and democratic values were increasingly replaced by considerations of education as an investment for economic development. The economic approach to education was to be central to the decisions on finance allocation to education and implied a preliminary attention to the rationalization of education administration. The 1964 authoritarian regime implemented this policy by concentrating the decision-making process in the bureaucracy, since the nature of education funding was seen as a technical matter. THE CONTENTS. The thesis scans some aspects of the federal bureaucracy's historical background on which the policy stepped <and eventually stumbled) and the origins of policies on education funding. Two crucial elements of the decision-making process are then investigated: the stance of the military towards education and the reflexion of the expansion and crisis of the Brazilian economy on the provision of tax finance to education. At its height, the research goes into several vital decisions for the education funding to find out how they were actually made and on which reasons they were based, whether giving or denying education a special budgetary treatment. Finally, a look at the poor results of planning and ration­ alization in relevant points of the policies unveils the importance of some cultural and social components of the organizations involved. THE CONCLUSIONS. The thesis concludes that, as far as Brazilian experience suggests, the economic justification for funding education and rationalizing its spending is fragile and of little effect, since the allocation of public resources proves to be a political not a technical process. The cause loses rather than gains as the decisions are entrusted to economic bodies. TABLE OF CONTENTS List of Tables...................................... p. 12 INTRODUCTION........................................ p. 14 INT. 1. The subject and its relevance p. 14 INT. 2. The stucture of the chapters p. 23 INT. 3..............Some Caveats......................... p. 25 INT. 4. A first introductive excursus: the institutional framework of the Brazilian education system . .............. p. 26 INT. 4. 1. Constitutional aspects p. 27 INT. 4. 2. Other administrative aspects p. 30 INT. 5. A second introductive excursus: a panorama of the federal public expenditure on education in Brazil p. 33 CHAPTER ONE: DETERMINANT ELEMENTS FROM THE PAST. p. 42 1. 1. From the Jesuit era to the Pombal's reforms.. p. 43 1.2. A scene from the XlXth Century............ p. 50 1.3. The nationalist and liberal ideals of the 1920’ p. 56 1. 4. The Vargas legacy........................... p. 62 1.4. 1. The expansion of the federal government structure..................................... p. 63 1. 4. 2. The role of the Administrative Department of the Public Service <DASP> p. 69 - 6 - 1.5. The federalization of higher education institutions p. 74 CHAPTER TWO: THE FORMATION OF THE POLICIES ON EDUCATION FUNDING p. 78 2. 1. The 1964 regime and its political strategy. p. 79 2. 1, 1. The regime, from 1964 to 1984 (an interpretive outline)................ p. 7 9 2. 1.2. The political and administrative strategy.. p. 94 2.2. The genesis of the policies on education funding p. 99 2.2. 1. The approach until the early sixties p. 99 2. 2. 2. The 1966-73 key-period p. 103 2.2.3. The external influence p. 113 2.2.3. 1. The Brazil—USA early links for economic development p. 113 2. 2. 3. 2. Theoretical influential trends p. 114 2. 2. 3. 3. The 1961-63 inter-American conferences. p. 119 2. 2. 3. 4. The MEC—USAID agreements p. 122 2. 2. 3. 5. Assessing the influence of the MEC-USAIDs p. 127 2,2.3.6. Significant influence from other agencies p. 128 2.3. From the humanistic to economic approach: the change p. 130 2.4. The rationality of planning and expenditure on education p. 138 2.5. Conclusions p. 150 - 7 - CHAPTER THREE: THE MILITARY AND EDUCATION: AN INCIDENTAL INVOLVEMENT.................. p. 152 3. 1. Marks of origin: the standpoint of state security p. 152 3. 1. 1. Antecedents. p. 153 3. 1. 2. Features of the early repression p. 159 3. 1. 3. The main system of control: the SNI, the DSI's and the ASI's......................... p, 172 3. 1. 4. Subsequent developments p. 175 3.2. "Interventions" p. 177 3.2. 1. The "mission" of Gen. Meira Mattos: origins and features........................ p. 177 3. 2. 2. The "mission" of Gen. Meira Mattos: the end and results......................... p. 182 3. 2. 3. Other aspects of the military presence in MEC p. 188 3. 3. Concessions and attempts at dialogue........... p. 192 3.3. 1. The expansion of higher education p. 193 3. 3. 2. Attempts at dialogue......................... p. 201 3.3.3. Ministers of education and the era of liberalization............................... p. 207 3.4. Roots and links................................... p. 213 3.4. 1. The men of the Army education system......... p. 213 3.4.2. Has ESG interferred with MEC?...... p. 221 3. 5. Conclusions....................................... p. 225 CHAPTER FOUR: FROM THE DEVELOPMENTALIST STATE TO THE EDUCATION FUNDING................... p. 228 - 8 - 4. 1. A general view of the government financial crisis p. 228 4. 1. 1. The Brazilian public deficit: the crisis' fulcrum............ p. 228 4. 1. 2. The main process behind the deficit........ p. 230 4.2 The Treasury Budget: a narrowing space for education p. 240 4.2. 1. The federal Treasury and the aftermath of the expansion of state economic activity. p. 241 4.2. 1. 1. The organizational instruments of the expansion p. 242 4.2. 1.2. Consequences for the Treasury............. p. 247 4.2.2. Specific consequences on MEC's budget...... p. 251 4.3. Expansion, deficit and authoritarianism...... p. 256 4. 4. Conclusions....................................... p. 264 CHAPTER FIVE: THE STRUGGLE FOR FINANCE FOR EDUCATION p. 267 5. 1. The vicissitudes of earmarked financial sources for education p. 269 5. 1. 1. The early period, 1964-73...................... p. 269 5. 1. 1. 1. The Saldrlo-EducagSo: origins and development................................... p. 269 5. 1. 1.2. Lotteries' proceeds, loans, contributions to MOBRAL, percentages of FPE/FPM p. 277 5. 1. 2. The changes in 1974-76.......................... p. 285 5. 1. 2. 1, A blow to the Sal6rio-EducagSo............ p. 286 5. 1.2.2. The cut down on proceeds from lotteries with the creation of FA'S................... p. 289 5. 1.2.3. Changes in the FPE/FPM................... p. 295 - 9 - 5. 1.3. The moves related with the financial crisis p. 295 5. 1. 3. 1. Loans for dollars p. 295 5, 1. 3.