Brazil’s Role in Global Issues

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 • 2nd 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 • 1986- 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 2020 • 2011 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 2011- 3% 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