While Brazil ranks as one of the world’s highest GDP rates, it still struggles with inequality and inefficiency. The World Bank has seen it fit to grant Brazil $500 million in loans to fund 3 projects that will help end inequality in Brazil. The loans fund three projects located in Sao Paulo, Rio de Janeiro and Belo Horizonte.

The first project is the Sao Paulo State Sustainable Transport Project. This project aims to improve environmental and disaster management as well as the safety of the transport system in Sao Paulo. Sao Paulo is home to over 40 million people and an efficient and safe transport system is essential to keep this region competitive with the world. More importantly, this project will extend the transport system to regions that have not had access to public transportation. This project will give citizens the opportunity to find jobs in the metropolitan area and hopefully lift them out of poverty.

The second project will help millions of citizens in the South East of Brazil. It is the Belo Horizonte Urban Inclusive Development Policy Loan. This $200 million loan will help with the development of this region, which has been plagued with inequality. This project will focus on development strategies to provide safe housing to all citizens. Belo Horizonte has had increasing economic growth but an increase in irregular housing. The hope is to increase the quality of life of the low-income population.

The third project involves the municipality of Rio de Janeiro which received a $16.2 million loan for the Rio de Janeiro Strengthening Public Sector Management Technical Assistance Project. In the past decade, the administration of Rio de Janeiro has implemented several different programs such as The Family Health Strategy and new education programs to combat the high levels of poverty and inequality in the region. However, the administration does not have the money or power to implement all of these reforms immediately. This loan will help the administration to achieve these reforms.

– Catherine Ulrich
Source: World Bank, Political Press
Photo: Professional Jeweller