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Poverty, Inequality and Social Policies in Brazil: Social Productive Keynesianism?
 

Poverty, Inequality and Social Policies in Brazil: Social Productive Keynesianism?

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Presentation by Senator Cristovam Buarque from Brazil on 27 April 2012 at IPC-IG. Cristovam Buarque has been a Senator for two consecutive terms (2003-2019) and a Professor at the University of ...

Presentation by Senator Cristovam Buarque from Brazil on 27 April 2012 at IPC-IG. Cristovam Buarque has been a Senator for two consecutive terms (2003-2019) and a Professor at the University of Brasilia since 1979, where he was also Dean (1985-1989). He graduated in Mechanical Engineering at the Federal University of Pernambuco (1966) and earned a PhD in Economics from Sorbonne (1973). He worked as Advisor for the Inter-American Development Bank (IADB) from 1973-1979. He has also presided the UN University for Peace Council and is a member of UNESCO’s Institute of Education, having published over ten books. During his mandate as Governor of the Brazilian Federal District (1995-1998), he was recognized by his commitment with social inclusion and as an administrator able to turn the ideas previously exposed in his books into laws. Among the several creative solutions conceived by the Professor and implemented by the Governor, the most renowned in Brazil and abroad is the Bolsa-Escola, a revolutionary approach for education and against poverty. He was Minister of Education in 2003. At the Senate he was Chairman of the Senate's External Relations Committee (2004), headed the Senate Human Rights Committee (2005-06), and was Chairman of the Education, Sports and Culture Committee (2007). Presently, Senator Buarque is Vice-Chairman of the Senate External Relations Committee and Chairman of the Special Subcommittee for the 2012 Summit Rio+20.

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    Poverty, Inequality and Social Policies in Brazil: Social Productive Keynesianism? Poverty, Inequality and Social Policies in Brazil: Social Productive Keynesianism? Presentation Transcript

    • SPK: a theory behind CCT Cristovam BuarqueConference on New Approaches to Poverty and Inequality Reduction in the Global South An Overview of Poverty, Inequality and Social Policies in Brazil 04/27/2012 – IPC-UNDP
    • The five global crises Financial Economic Paradigmatic crisis Ecological Social
    • The five global crisesFinancial
    • The five global crisesEconomic
    • The five global crisesEcological
    • The five global crisesSocial
    • The five global crisesParadigmatic
    • The paradigmatic crisis Economic Growth Poverty reduction but global warming
    • The paradigmatic crisis Economic Recession Quest for Sustainable Development Financial Instability Social Crisis
    • The paradigmatic crisis Cuts in Public Spending Economic Slowdown Environmental Control Social Security and Social Crisis Pension Reform
    • The paradigmatic crisis• Previous harmonic coexistence of four vectors• Breakdown of balance with entrance of ecological dimension Political Social democracy welfare Ecological balance Economic Scientific & growth technological advancement
    • The catastrophes aheadInequality Life expectancy = 86 years Life expectancy = 39 years
    • The catastrophes aheadSocial Apartheid
    • The catastrophes aheadBiological mutation Neo homo sapiens Homo Homo sapiens sapiens
    • The catastrophes aheadUnemployment
    • The catastrophes aheadThe need of walls
    • The catastrophes aheadGlobal warming
    • The catastrophes aheadTechnical advancement without ethical development
    • The catastrophes aheadVulnerability
    • The catastrophes aheadWidespread migration
    • The catastrophes aheadUrban chaos
    • The catastrophes aheadScarcity of natural resources
    • The catastrophes aheadThe Third-world World
    • The bad development Production Nature GDP Depletion, pollution, waste, residues Work Consumption Population
    • New objectivesEcological balance Production Nature GDP Reduction of waste, depletion, pollution Work Consumption Population
    • A new proposal Space of superfluous consumption prevented by rules of environmental protection Ecological limits Space of tolerated inequality defined by individual talent and persistence - thanks to good Schooling effect: SAL education for all Social limits: SSN Space of social exclusion avoided by social policies SAL: Social Ascension Ladder SSN: Social Safety Net
    • The New Developmenta. New objectives • Good growth without ecological unbalance • Degrowth with social well being • Happiness without growth • Free time with cultural practices
    • The New Developmentb. New products:• Public and immaterial goods (culture, education, health, security)
    • The New Developmentb. New products:• Private and material goods for the basis of the social pyramid• High tech products Exclusive products Mass products
    • The New Developmentc. Renewable resources
    • The New Developmentd. Reduction of waste
    • Traditional Keynesianism x SocialProductive Keynesianism• Traditional Keynesianism expands the aggregate demand, using public funds to employ manpower, even to produce “no-goods” that dont meet consumer needs: monuments, unnecessary infrastructure, weapons. The worker earns just enough to buy products that will boost the aggregate supply.
    • Traditional Keynesianism x SocialProductive Keynesianism• Social Productive Keynesianism proposes the use of public funds to finance employment in order to produce goods that will meet population needs and ecological balance.
    • New conception to fight poverty andpromote economic growthSocial productivism:• From SSN: social-safety-net• To SAL: social-ascension-ladder• To pay poor people to produce what poor people need – mobilizing the poor The SSN keeps the poor in the poverty line, without a door to a way out. The SAL mobilizes the poor and offers them a way out of poverty.
    • Cash transfersTwo different conceptions:• Unconditional Cash Transfers (Traditional Keynesianism) X ConditionalCash Transfers (Productive Keynesianism)• Social Safety nets (SSN) X Social Ascension Ladder (SAL) No poverty Social Social ascension Permanent poverty safety ladder Absolute poverty net
    • Cash Transfer ProgramsCan be unproductive or productive• Unproductive: reduces some of the poverty burden, without conditionalities related to production and with no provision of adequate goods and services• Productive: requires that beneficiaries produce goods and services to attend the poor’s needs
    • Cash Transfers Programs Unproductive / unconditional cash transfer programs offer a minimum income to relieve the poverty needs by the purchase of private goods at the market
    • Cash Transfers Programs Social / conditional productive cash transfer programs offer an income to relief private needs through the market and mobilizes the unemployed poor to produce and increase the offer of public goods and services to overcome social disparities
    • Social Productive Keynesianism – SPK Alleviating poverty Social inclusion Overcoming poverty Bolsa-Escola – part of a strategy aimed at: Efficiency Economic competitiveness Inventiveness
    • Social Productive Keynesianism – SPKBolsa-Escola, the first Productive Conditional Cash Transfer program:Payment of a stipend, in cash, requiring that poor families ensure that their children were attending school, with the following requirements:• the per capita family income is under a pre-defined level close to the poverty line;• all children of school age have to be enrolled in a public school;• all of them must comply with a minimum of 90% school attendance. Failure causes suspension of the monthly payment, until all children of the specific family are regularly attending school.
    • Social Productive Keynesianism – SPK The Bolsa-Escola History: • Theoretically proposed in 1987 • Published as a book in 1994 • Implemented in Brasilia in 1995
    • Social Productive Keynesianism – SPK The Bolsa-Escola History: • Implemented at Federal level as of 2001 – over 4 million families benefited • Implementation worldwide as of 1997: initially in Mexico, later in Ecuador, Argentina, Sao Tome and Principe, Mozambique, Tanzania, Chile, Bolivia, El Salvador, and Guatemala • Reached in Brazil, until 2010, up to 12 million families, or 50 million people under the name of Bolsa Familia, with a reduction of the educational requirements
    • Social Productive Keynesianism – SPK The impacts of Bolsa-Escola Promotes local governmental Defends human Increases empowerment rights, especially adult literacy children’s rights Enhances education quality Inhibits migration Drastically reduces Enhances drop out BOLSA-ESCOLA family bonds Eradicates Empowers women child labor Promotes economic Brings poverty relief growth from the bottom (increases income, brings of the social pyramid better food, health, housing) Creates job and income growth Impacts on children’s life and education Impacts on society and economy Impacts on citizenship and solidarity
    • Social Productive Keynesianism (SPK) – the Social Incentives Poupança-Escola (School Savings Program)• Program implemented in Brasilia in 1995, consists ofdepositing a certain amount of money for the studentsreceiving the School Scholarship who are promoted to the nextgrade.• Up to half the amount deposited can be withdrawn whenthe student finishes fourth grade and enrolls in fifth grade.• Another withdrawal can only be made when the studentfinishes eighth grade and enrolls in the first year of secondaryschool.• Finally, the student can only withdraw the entire amountdeposited if he or she finishes secondary school.• If the student quits school at any time, he or she loses theamount deposited.
    • Social Productive Keynesianism (SPK) –the Social IncentivesBolsa-Alfa (Literacy Scholarship)
    • Social Productive Keynesianism (SPK) –the Social IncentivesMala do Livro (Home Lecture Program)
    • Social Productive Keynesianism (SPK) –the Social IncentivesBolsa-Floresta (Forest Protection)
    • Social Productive Keynesianism (SPK) –the Social IncentivesUniversalization of water and sewage services
    • Social Productive Keynesianism (SPK) –the Social IncentivesRecovery of rivers
    • Social Productive Keynesianism (SPK) –the Social IncentivesUrbanization and revitalization of shantytowns: pay poor people to improve their urban and housing
    • Social Productive Keynesianism (SPK) –the Social IncentivesMicro-credit: offer poor people financial support for economic production and income growth
    • Social Productive Keynesianism (SPK) –the Social IncentivesDomestic Agro-industries: support rural workers to build their own micro-industries
    • A new proposal – the Educationism• A worldwide revolution in education and through education• Education for All• A school committed with the ecological and social balance• A connected civilization
    • Global benefits• Reducing migration• World-scale increase in efficiency• World-scale increase in demand• Reducing conflicts, especially cultural conflict
    • Difficulties Mental Political Epistemological Social Technical Juridical Economic Demographic
    • DifficultiesThe concept revolution Ethical Social Economic Technical values objectives rationality choice Sense of ethical-modernity Sense of technical-modernity
    • The change in logic • the poverty of Economics • the cost of omission • the feminization of social logic • growth from the base of the social pyramid
    • The EducationismGlobal Social Marshall Plan for Education • Requires additional US$200 per child = US$ 200 billion • Equivalent to less than 0,5% (5/1000) of the world personal income • Equivalent to 10% of the U.S. banking system rescue package (US$2 trillion) in the 2007/2008 crisis • Nearly equivalent to what President Obama spent in education for American children (US$ 127 billion), as part of the economy rescue plan (US$ 819 billion)
    • Social Productive Cash Transfers to facethe global crisis http://twitter.com/Sen_Cristovam http://twitter.com/cbbrazilianview www.cristovam.org.br www.educacionista.org.br
    • The EducationismSome bibliography by the author • Abolishing poverty: a proposal for the eradication of poverty in Brazil http://bit.ly/IpxdxB • Bolsa-Escola: A poverty recovery plan for Africa – Bringing children first http://bit.ly/HzWLso • Social incentives: a program to abolish poverty in Brazil http://bit.ly/HLcgfB • The revolution of small things http://bit.ly/HAiWzn • The progress of the idea of progress http://bit.ly/IiYgaw