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Brazil’s Role in Global Issues. Agenda Foreign Aid Current Diplomacy Energy/Ethanol Environment.

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Presentation on theme: "Brazil’s Role in Global Issues. Agenda Foreign Aid Current Diplomacy Energy/Ethanol Environment."— Presentation transcript:

1 Brazil’s Role in Global Issues

2 Agenda Foreign Aid Current Diplomacy Energy/Ethanol Environment

3 Brazil’s Foreign Aid Program Brazil's provision of foreign aid to developing countries is not new; Member of the SSC (South- South cooperation) for the past 40 years The South American giant is both a recipient and provider of aid which gives it a better understanding of the needs and constraints facing developing countries as aid recipients The foreign aid program in Brazil supports agriculture, health, education and technological growth in developing countries Brazil’s lavishing assistance in Africa and Central America has helped it compete with China and India for soft-power influence in the developing world

4 Brazil Gives Back  Brazil is heavily involved in the most successful post earthquake initiative in Haiti (Lèt Agogo)  Embrapa, a Brazilian research outfit, has helped significantly increase cotton yields in Mali  Odebrecht, a Brazilian construction firm, is building much of Angola’s water supply and is one of the biggest contractors in Africa  Brazil contributes $300 Million to the World Food Program, $350 Million to Haiti, $100 million to United Nations Development Program, $30 Million to ABC (Brazilian Cooperation Agency) and $ 450 million for in-kind expertise provided by Brazilian institutions involved in technical cooperation around the world  BNDES, Brazilian State Development Bank has given out over $3.3 Billion in loans to developing countries in Central America and Africa since 2008

5 Foreign Aid Notable Facts Current calculations suggest that Brazilian aid is around $1 Billion a year which puts it on par with India, Sweden and Canada This surge in aid has put Brazil ahead of other Development Assistance Committee members like Finland, Ireland and Portugal. Brazil’s foreign aid policy has come under some scrutiny at home and abroad because the country still has large pockets of third world poverty.

6 Brazil and the U.S. Brazil wants to be respected as a world power – Protect its own interest in international affairs – U.N. Security Council – Humanitarian mission in Haiti – Non-interventionist U.S. wants to ensure exports to Brazil, spur jobs in the U.S. “Arguably the most effecting intermediary between Washington and a resurgent, anti-U.S. Latin left” Hemispheric divide of interests

7 Diplomacy in Iran 2010, President Luiz Inacio Lula da Silva traveled to Tehran to discuss Iran’s nuclear plans with President Ahmadinejad U.S. & U.N. not pleased, seen as way to stall proposed sanctions Brazil opposed sanctions, wanted to protect its own nuclear interest – Developed uranium enrichment capabilities in secret in the 1970s – Signed the Nuclear Nonproliferation Treaty a decade later Widely regarded as having little to do with Iran, and more to do with Lula’s interest in earning respect

8 Energy in Brazil – Ethanol 1973 oil crisis (oil embargo by Arab members of OPEC) spurs Brazilian government to invest in R&D for alternative energies Since 1976, minimum amount of ethanol must be blended with gasoline in fuels – all gas stations must sell gasoline, diesel, and ethanol by law – Cleaner and cheaper to produce than oil (and U.S. corn-based ethanol) – 61% decrease in greenhouse gas emissions vs. gasoline or diesel – 18-25% of fuel blends must be ethanol (2011) Brazilian car manufacturing industry develops “flex-fuel” vehicles that can run on either gas or ethanol – 92% of all new cars and light vehicles sold in 2009 were flex-fuel – Driver chooses which type of fuel to use

9 Energy in Brazil – Ethanol 2 nd largest ethanol fuel producer globally (30% of global supply; US 50%) – Agricultural advantage: Brazil produces 40% of world’s sugarcane – 2011 decline in Brazil’s ethanol exports (high prices and unfavorable weather damaged sugarcane crops)  US #1 in 2011 Not necessarily an energy panacea – Need more land for sugarcane crop  rainforest deforestation (and higher net carbon emissions), endangered species – Nitrogen fertilizer used to grow sugarcane produces nitrous oxide (greenhouse gas) – Working conditions of sugar field workers Looking ahead: – 12/31/2011: expiration of (a) US tax credits for corn-based ethanol and (b) sugarcane ethanol import tariffs opens US market to Brazilian sugarcane ethanol firms (e.g. Cosan)

10 The Environment: Growing Support for Legislation Brazilian National Environmental Policy (BNEP) signals serious effort to improve Deforestation and loss of Amazon are biggest global concerns Brazil leads air and water pollution reduction efforts in emerging markets

11 Climate Change Initiatives 16.2% of Brazil’s forest were cleared by 2003 – Loss of land productivity, biodiversity loss, net emissions of greenhouse gases, and irregular water cycles 2010 Climate Change Conference COP 15- reduce greenhouse gas emissions between 36-39% by REDD policy changes may reopen Amazon to logging and allow non-native species – Suggesting privatization of forest and soils through carbon markets

12 Reducing Air and Industrial Pollution Air: Sao Paulo- only certain cars with a license plate ending on a corresponding day of the week to drive certain days. Water: Chevron oil spill in November % of total production; Brazil demanding $10.6B in damages and threat of shutting down operations Implemented quality and quantity-related water charges in regulations to promote reuse Hosting 2012 Earth Summit (Rio+20)- signal of commitment to sustainable development and green economy with necessary Open Government Partnership


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