| This short article discusses the two stages of Brazil's | | | | publically stated his dissatisfaction: "I'm not happy with |
| Programa de Aceleração do Crescimento | | | | what we have done so far, the poor people of this |
| ('Growth Acceleration Programme', also known as | | | | country needs us to do more and the economy needs |
| 'PAC'). Aimed at assisting the country's economic | | | | to happen." More pressure was subsequently put on |
| progression, the PAC is mainly focused around | | | | state heads and municipality governments to carry out |
| improving Brazil's infrastructure through a variety of | | | | projects efficiently within set timeframes. Despite |
| means. | | | | these issues, the overall impact of the PAC-1 has been |
| *** PAC-1 (Programa de Aceleração do | | | | viewed as a positive step for Brazil from all sections |
| Crescimento 1 / Growth Acceleration Programme | | | | of society. Launched amidst the global economic crisis, |
| One) *** | | | | many have cited the programme as a major |
| Initiated on 28th January 2007, the PAC-1 was built | | | | contributory factor which assisted in Brazil's excelled |
| around a four year implementation strategy, composed | | | | recovery - particularly as a result of the increased |
| of five levels, in order of priority: | | | | employment opportunities and company subsidies. |
| 1) Infrastructural measures largely focused around | | | | *** PAC-2 (Programa de Aceleração do |
| energy (via the means of interest payment reductions | | | | Crescimento 2 / Growth Acceleration Programme |
| as well as gas industry subsidies and tax reliefs); | | | | Two) *** |
| transportation (roads, highways, ports, airports, urban | | | | In March 2010, phase two of the Growth Acceleration |
| transport), housing and sanitation; | | | | Programme was launched with an infrastructure |
| 2) Measures to encourage credit and financing; | | | | investment plan of R$ 958.8 billion for use between |
| 3) Better environmental regulatory frameworks; | | | | 2011 and 2014. Funded via a combination of private, |
| 4) Tax relief, particularly aimed at the poorer ends of | | | | state, federal and municipal investment, the allocation is |
| society; | | | | as follows: |
| 5) Fiscal measures for the long term. | | | | Melhores Cidades ('Better Cities') - with an investment |
| The aim of the $R 513 billion programme was, in turn, | | | | of R$ 57.1 billion, the aim is to improve the quality of life |
| to accelerate private investment and was allocated in | | | | in Brazil's major cities with a focus on sanitation, urban |
| the following directions: | | | | mobility, pavement improvements and decreasing |
| Energia ('Energy') - out of a total of R$ 274.8 billion, R$ | | | | crime. |
| 179.0 billion was invested in natural gases and oil; R $ $ | | | | Cidadania da Comunidade ('Community Citizenship') - |
| 65.9 billion in power generation; R$ 17.4 billion in | | | | an investment of R$ 23 billion aimed at augmenting the |
| renewable fuels and R$ 12.5 billion in electricity | | | | accessibility of state services in the country's poorer |
| transportation. | | | | regions including various health services, emergency |
| Melhorias Infraestrutura Social e Urbana ('Social | | | | care units, day care centres, pre-schools, sporting |
| Infrastructure and Urban Improvements') - out of a | | | | facilities and community police stations. |
| total of R$ 170.8 billion, R$ 106.3 billion was invested in | | | | Minha Casa, Minha Vida ('My House, My Life') - |
| housing improving projects (with majority allocated in | | | | continuing the established programme of reducing the |
| lower class areas); R$ 40 billion in basic sanitation; R$ | | | | country's housing deficit, providing construction sector |
| 12.7 billion in water system improvements; R$8.7 billion | | | | incentives and generating jobs with an investment of |
| on the Luz Para Todos programme ('Light for All', | | | | R$ 278.2 billion. |
| which entitles households in rural areas to get a free | | | | Água e Luz para Todos ('Water and Light for All') - a |
| spot light per room with electricity two sockets) and | | | | R$30.6 billion investment with the objective of |
| R$ 3.1 billion on improving subway systems (particularly | | | | continuing the programme of free access to lighting for |
| in Rio de Janeiro and São Paulo). | | | | poorer communities as well as the provision of |
| Transporte Logística ('Transport Logistics') - out of a | | | | improved water supply and resources. |
| total of R$ 58.3 billion, R$33.4 billion was invested in the | | | | Transporte ('Transportation') - an investment of $R 4.5 |
| country's highways; R$ 10.6 billion in the merchant navy; | | | | billion to continue the work of the PAC-1 in improving, |
| R$ 7.9 billion in railways; R$ 3 billion in airport | | | | expanding and integrating a logistical network of quality |
| infrastructure; R$ 2.7 billion in ports and R$ 700 million | | | | and safety of Brazil's roads, railways, ports, |
| on public waterways. | | | | waterways and airports. |
| Shortly after the introduction of the programme, a | | | | Energia ('Energy') - with the largest investment of R$ |
| sub-project entitled PAC das Crianças ('PAC for | | | | 627.1 billion the funding is aimed at continuing the |
| Children') was also launched focused at addressing the | | | | country's leading global status of producing clean and |
| fundamental causes of violence against children and | | | | renewable sources of energy; supporting the |
| adolescents. R$ 2.9 billion was allocated to renovate | | | | production of oil (mainly in the country's south east |
| and construct 49 buildings to house young people in | | | | coast); electricity efficiency; shipbuilding investments |
| this predicament supported by counselling, educational | | | | and mineral research. |
| programmes, sporting academies, libraries, workshops | | | | PAC-2 was accused of being a means of President |
| and clinics. In conjunction with this, a programme was | | | | Lula's Workers Party to gain votes for the 2010 |
| created to pass a one-off grant to families to bring | | | | elections referring to the fact that the programme |
| back their abandoned children (an unfortunate | | | | should not have been started when the first part was |
| consequence in the poorer parts of the country). The | | | | not fully implemented. Worker Party government |
| source of the funding for PAC-1 largely came from | | | | officials were quick to dismiss the programmes critics |
| both state enterprises (including an investment by | | | | maintaining that Brazil is in need for these infrastructural |
| Petrobras of R$ 148.7 billion) and the private sector as | | | | improvements and the main concern should be with |
| well as a proportion from fiscal and social security | | | | regards to the successive effects on inflation that the |
| receipts. | | | | various parts of the programme will cause. It has |
| The main criticism the programme has attracted has | | | | therefore become clear that the government needs to |
| been with regards to its slow implementation: at the | | | | keep close eye on controlling runaway price rises in |
| target completion date of March 2010, 63 percent of | | | | order to solidify the country's long term growth and |
| the funding was spent. At the time, President Lula | | | | maximise the effects of the programme. |