IDB - Brazil Partnership

A girl in Manaus in Brazil’s North Region. The country strategy will continue to address the regional inequity experienced by Brazil’s poorer north and northeast. Photo source: IDB The IDB has a long relationship with Brazil and the country has been the IDB’s largest borrower, representing 23.6% of the total sovereign guaranteed (SG) volume to date. In light of Brazil’s recent low economic growth and fiscal constraints, the IDB proposes policies that promote productivity and more efficient social spending. The 2016–2018 country strategy is structured around three strategic areas: 1) Boosting productivity and competitiveness 2) Reducing inequity and improving public services 3) Institutional strengthening at the three levels of government The strategy’s interventions will be guided by three implementation approaches: 1) Strengthening the public-private partnerships for development (PPPDs) 2) Promoting sustainable growth in the metropolitan areas 3) Reducing regional inequalities 1) Boosting Productivity and Competitiveness The IDB will support the simplification of the regulatory framework for setting up a business and streamlining business tax payment processes. It will also carry out investment in infrastructure, particularly in the areas of transportation, logistics, and urban mobility. The IDB will also guarantee systems for PPPDs and build up SMEs through better access to long-term financing. 2) Reducing Inequity and Improving Public Services This area is focused on the priority sectors of water and sanitation, education, health, and citizen security through the following interventions. Water and sanitation Supporting thereduction of gaps in the coverage of water and basic sanitation services as well as improving the quality of service delivery, associated with achieving efficient and sustainable management by service operators. Education Building, expanding, and improving school infrastructure, improving the use of technology to reach remote areas, increasing education quality by improving teacher qualification and curriculum reviews, and strengthening the delivery of public education services by PPPDs. Health Guaranteeing universal access to the primary and specialized network, with an emphasis on high-quality comprehensive care and on strengthening the Unified Health System (SUS). Citizen security Supporting effective policies and inter-agency cooperation as well as boosting the efficiency of resources through improved management mechanisms and models, including PPPDs. 3) Institutional Strengthening at the Three Levels of Government Continuing support towards institutional strengthening in Brazil through the enhancement of public resource management. This will be done by supporting improvements to government financingthrough the creation of a simpler and more efficient tax system as well as greater efficiency, quality, and transparency in public expenditure. Greater cooperation among the three levels of government will also be promoted. Funding During the strategy period, the IDB estimates approval and disbursement levels averaging in the order of USD 1.8 billion per year in approvals and USD 1.2 billion per year in disbursements. A sovereign guaranteed financial envelope of USD 5–5.5 billion is estimated to be absorbed mostly by subnational borrowers, in line with historical demand, but with an opening for new demand at the federal level. Comparison of average annual funding for recent IDB-Brazil funding cycles (in USD billion) Contact Inter-American Development Bank Tel: (55-61) 3317-4200 Fax: (55-61) 3321-3112 Email: