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Brazil

Brazil is an upper middle-income country with a population of 160 million and GDP of over $700 billion. Despite its income status it has a highly inequitable income distribution and large numbers of poor people - nearly a quarter of the population (36 million) - live on one dollar a day.

Poverty is concentrated in the north-east where around 60% of Brazil’s poor people live, and ethnic minorities such as indigenous and afro-descendent groups are especially affected by inequalities in living standards and opportunities.

Extreme inequalities within Brazil remain a major challenge for its Government. The Brazilian Government has announced its commitment to achieving the international development target (IDT) of reducing absolute poverty by one half by the year 2015. However, it is likely to fall short of this target without substantial policy changes to make income distribution more equitable, in addition to improving social services.

Our objectives are to promote pro-poor economic growth, social inclusion (particularly of ethnic groups) and improve governance. Given Brazil’s middle-income status, our role is to provide access to international best practice, promote lesson learning and empower poor and disadvantaged groups.

Our current portfolio includes projects and programmes in the areas of environment and livelihoods, health and governance. National and international partners regard our programme in Amazonia as an example of good practice in establishing the links between sustainable development, poverty and public policies.

We aim to maximise the strategic impact of our activities in Brazil through our new Regional Assistance Plan (RAP) that has set the framework for DFID’s involvement in Latin America.

By placing much greater emphasis on working with other partners and enhancing the effectiveness of assistance provided by multilateral donors, the new strategy marks a significant shift in DFID’s approach towards the region, and one which DFID believes will have a much greater impact.

Although Brazil will have no specific bilateral programme, these will be phased out by March 2006. DFID will continue to work in Brazil, both through its efforts to improve the effectiveness of the World Bank and IDB, and in engaging on global policy issues such as trade policy and HIV/AIDS lesson sharing.

Our efforts are having some effect, with both the Government and other donors now being more ready to discuss poverty as an integral part of the Programme.

The Brazil Office will act as one of our sub-regional offices for MERCOSUR, whose activities will contribute to DFID’s regional approach.

• The Development Challenge for Brazil (151kb)

Last updated: 17 November 2004

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