IV. COUNTRY NOTES Brazil Population and territory ● 191 million inhabitants (2007), 8.5 million km2. Administrative structure ● Federal country: ❖ 5 statistical regions (regiões). ❖ TL2: 27 states (Estados). ❖ TL3: 137 mesorregiões, among which 8 are predominantly urban (26.3% of total population in 2010), 27 are intermediate (23.6%) and 102 are predominantly rural (50.1%). ❖ 557 microrregiões. ❖ 5 592 municipalities. Share of sub-national government in total spending/revenues ● Spending: 55.5%. Revenues: 58%. Concentration and inequalities ● ● ● ● ● Although Brazil’s concentration index is amongst the highest in the OECD, it has been gradually decreasing over the past two decades and in particular since the 1990s during Brazil’s expansionary period. According to the geographic concentration index, Brazil is the most concentrated economy in the OECD area (61.7), surpassing the OECD average value almost by twice and the second most concentrated economy (Sweden) significantly. The TL2 region Sao Paolo alone is home to 21% of the national population in 2008 and produces 34% of GDP in 2007. Inequality in GDP per capita among Brazilian TL2 regions surpasses OECD standards. In 2007 GDP per capita in its leading capital region Distrito Federal (USD 28 594) was more than three times higher than the national average (USD 10 038); in contrast, in the lagging region Piauí (USD 3 199) GDP per capita was approximately one third of the national average. The Gini index of inequality in GDP per capita – measuring inequality among Brazilian TL2 regions (Estados) – Third highest (0.30) when compared to OECD countries in 2007. Inequality in Brazil is driven by two main forces: its leading region outperforming the rest and lagging regions in the Nordeste trailing behind. Brazil’s capital region Distrito Federal increased its GDP per capita from 73% above the national value in 1980 to almost three times (i.e. 285%) above the national average in 2007. In contrast, lagging regions in the Nordeste were approximately on average 50% of the national average in 1980 and 27 years later they still remain in similar range values. São Paolo is the TL2 region with the largest contribution to national growth over the period 1980-2007, contributing to approximately one third of aggregate growth, followed by nine regions (Minas Gerais, Rio de Janeiro, Paraná, Distrito Federal, Rio Grande do Sul, Santa Catarina, Bahia, Goiás and Espírito Santo) which contribute to almost half of national growth (i.e. 49.3%). The remaining 17 regions (or 62% of them) contributed to 20% of aggregate growth. Key challenges ● Social and productive inclusion of marginal and poor areas. Objectives of regional policy ● Targeted support to specific regions facing major production development and social inclusion challenges. Legal/institutional framework for regional policy ● National Policy for Regional Development (PNDR) adopted in 2007. Urban policy framework ● Various plans elaborated by the Ministry of Cities. Rural policy framework ● Territories of Citizenship (Territórios das Cidadanías). Major regional policy tools ● ● Constitutional Funds (FCO, FNE, FNO) and Federal Budget (OGU,Orçamento Geral da União). Major financing comes from some infrastructure investments (PAC1 and 2); and major horizontal programmes (Bolsa Familia, Minha Casa Minha Vida, etc.). Policy co-ordination at central level ● Ministry for National Integration (MIN). Multi-level governance between national and sub-national levels ● Agreements (Convenios), not binding. Federative pacts (“pactos federativos”), usually associated with plans and funds. Co-ordination bodies such as the Sub-secretariat for Federal Issues (Subchefía de Asuntos Federativos) or the Federal Co-ordination Committee (Comitê de Articulação Federativa). ● ● Policy co-ordination at regional level ● Re-created regional development agencies (SUDENE, SUDAM and SUDECO). Territories of Citizenship. Inter-municipal consortia. Regional forums of state governors such as the Forum of the Governors of the North-East. Evaluation and monitoring ● Federal Audit Authority (TCU, Tribunal de Contas da União). Future orientations of regional policy ● Proposal to create a National Fund for Regional Development. ● ● ● 234 OECD REGIONAL OUTLOOK 2011: BUILDING RESILIENT REGIONS FOR STRONGER ECONOMIES © OECD 2011 IV. Gini index of inequality of GDP per capita across TL2 regions, 1980-2007 COUNTRY NOTES Regional performance in GDP per capita over time, 1980 and 2007 Brazil (TL2) Brazil (TL2) 2007 GDP pc (100 = average of regions) 0.33 340 300 0.32 Distrito Federal 260 0.31 220 0.30 180 140 0.29 100 Espirito Santo Mato Grosso São Paulo Rio de Janeiro Rio Grande do Sul Amazonas 0.28 60 Pará 0.27 1980 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20 20 60 100 140 180 220 260 300 340 1980 GDP pc (average of regions) Regional contribution (%) to national GDP growth, 1995-2007 20% - 100% 15% - 20% 10% - 15% 5% - 10% 0% - 5% -100% - 0% No data available This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map. Source of administrative boundaries: National Statistical Offices and FAO Global Administrative Unit Layers (GAUL). 700 km Source: Calculations based on the OECD Regional Database (2009). 1 2 http://dx.doi.org/10.1787/888932521106 OECD REGIONAL OUTLOOK 2011: BUILDING RESILIENT REGIONS FOR STRONGER ECONOMIES © OECD 2011 235
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