Regional Development Policy in Brazil: The Great Carajas Project

1
Regional Development Policy in BrazilThe Great
Carajas Project

• By Rachel Welles Moeko Numata 13SA

2
Variations between Core and Peripheral region in
Brazil
3
Reasons for regional variations

• Myrdals Cumulative Causation Model
• Multiplier effect new jobs are created and
  people who moved into Carajas take jobs so they
  have more money to spend in the shops, which
  means that more employees are needed. Also, the
  employees pay their taxes and spend their money,
  creating more jobs in industries as well as
  transport and education.
• Backwash effect the Great Carajas Programme is
  one of the largest development schemes undertaken
  in tropical rainforests, where skilled labor will
  be gathered within the area.
• Spread effect Carajas is a part of rain forest
  which is going to be growth pole which will be
  concentration of resources and it can improve
  transport systems so that the resources can be
  exported at lower costs.
• Limitations of Myrdals model other factors
• No timeframe of growth.
• Takes no consideration of declining
  resources/damage to environment.
• Based on MEDCs and therefore cannot be fully
  applied to Brazil.

4
Reason nature of regional development project

• Why the Great Carajas Project is necessary in
  this area
• They have to maintain sustainable development in
  the area where it is covered by the rainforests
  in order to balance wealth of the country which
  is not distributed evenly.
• Governments tried to reduce the regional
  inequalities resulting from the concentration of
  industry in south-east regions.
• Nature of the project and its aims
• The Great Carajas Project is a top-down
  development which the World Bank, Japan and EEC
  that agreed with the plan.
• Also the Great Carajas Project is led by the
  national government which involves large-scale
  projects with major investments in infrastructure.

5
Assessment of development policys impact

• Activities are monitored by environmental policy
  that strives to conserve/regenerate delicate
  ecosystems of the Amazon region.
• Environmental Impacts
• Deforestation in the Amazon region increased from
  2.4 I n1978 to 10 in 1988
• Social Impacts
• Population displacement of indigenous people and
  rural peasants
• Increased inabilities to acquire food supplies
• Positive multiplier effects
• Numerous employment opportunities
• Boosting local economic activity e.g. shops
• Increase in educaton, low rent houses
• Higher standard of education
• Spread effects
• Encouraged iron extraction in peripheral regions
  due to its success in the core region.
• Success in core region boomed agricultural
  businesses in nearby towns and increased
  infrastructural development to keep this
  development consistent.