O Banco do Nordeste do Brasil

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O Banco do Nordeste do Brasil

• - Federal Government Bank with 174 Branches and
  3,880 Employees
• - Microfinance 2nd largest program in Latin
  America, with more than 116,000 loans
• - Municipalities 1,958 (11 States)
• - Clients 1.24 million
• - Micro, Small and Medium Size Clients 97.7
• - Assets US 7.9 bilhões
• Long Term Loans in Northeast Brazil 76.2

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BUILDING INSTITUTIONAL CAPACITY AND SOCIAL
CAPITAL
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DEVELOPMENT AGENT
Created in October /1996

• Cooperates with local community
• Organizes producers demands
• Builds business awareness, vision of productive
  chain
• Structures demand for credit and training
• Negotiates terms of partnerships

• 480 Agents
• 8,500 communities served

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TRAINING
PARTICIPANTS 224,420 in 2001

DEMAND FOR TRAINING IN THE REGION
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DEVELOPMENT LIGHTHOUSE
Created in May/1999

• Local Business Space
• Systematic meetings of municipal leaders
• Definition and execution of local action plan
• Structuring of productive chains
• Training through workshops
• Internal and external management system

• In 2000
• 9,408 meetings
• 216,432 leader participations
• 16,214 commitments generated
• 12,215 commitments concluded

• Total (July/2001)
• 18,651 meetings
• 445,145 leader participations
• 42,135 commitments generated
• 26,865 commitments concluded

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SUCCESSFUL CASES
Municipality União dos Palmares-Alagoas- Muquém
Village

• Lack of water resources, a problem that has
  lasted for over 30 years
• People had to walk more than 6 km to transport
  the water in cans

PROBLEM

• A commitment involving the Municipal Government,
  the water company and the community

SOLUTION

• Water supply
• Improvement in the production and the quality of
  local handicraft
• Opening of International and National markets

BENEFITS
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GUARANTEE FUND ( MUNICIPAL DEVELOPMENT FUND)
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BUSINESS PERFORMANCE
NUMBER OF LOANS
FUNDS INVESTED IN THE REGION (R million)
EMPLOYMENT OPPORTUNITIES
NUMBER OF CLIENTS (thousands)
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CREDIT BY FIRM SIZE
LOANS 1995 TO SEPT/2001
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LOCAL ECONOMIC DEVELOPMENTLessons from
Implementation

• Disigning policies should take into account their
  implementation it should be adaptative
• Building Physical Capital is less complex than
  building institutional capacity, human capital
  and social capital credit providing is not a
  sufficient condition
• Local Development Strategies imply that local
  actors can have the opportunity to adopt their
  own strategies credit policy should be flexible
• The sequence of implementation policy can be
  fundamental. Good local results should be
  intensively celebrated
• The initial strategy is the start point not the
  final