US$ 13 bi: The Low Price to End Brazil's Poverty

With a little more than 2 percent of its revenue Brazil could put
an end to its poverty. By using US$ 13 billion annually, in a few years
Brazil could assure all its children good schools. Everyone would
have housing and healthcare and no one would go hungry. And
these projects would generate employment and revenue.

Cristovam Buarque

Between 1999 and 2002 I traveled a great deal defending the idea of a "Socio-Global Marshall Plan for the Eradication of Child Labor and Guarantee that Every Child Is in School." Each time I spoke of this matter I dreaded hearing the question, "What authority do you have to speak about this since your country is not doing its part?"

Sixty years ago, the United States launched a recovery plan for a Europe devastated by World War II. Named the Marshall Plan after the American Secretary of State who coordinated it, in few years it successfully restored the Old World after its destruction by the war. This week President Lula is proposing the creation of a Marshall Plan to facilitate the growth of poor countries.

More than any other country in the world, Brazil has the best conditions to make that proposal. Brazil is a perfect portrait of humanity in these times. Perhaps we may be the only country that has all the problems of humanity's tragedy at the beginning of this century and, at the same time, all the necessary resources to solve those problems.

Other countries have either the problems without the resources or the resources without the problems. This is why the idea of a Marshall Plan to confront worldwide poverty originated here.

During the next months, however, we run the risk of seeing our proposal become discredited if Brazil itself does not set an example by demonstrating the possibility of carrying out a vast program of poverty abolition.

If conditions are present in the world to abolish poverty in Africa, Asia and Latin America, then the conditions are present in Brazil to abolish poverty at home.

If a Marshall Plan for the world is possible, then a Marshall Plan—certainly with another name—will also be possible for Brazil. Should we not create one, our proposal will be ridiculed and discredited.

The entire world would need a small percentage of its revenue, which amounts to US$ 40 trillion, to eradicate poverty. Brazil would need a little more than 2 percent of its revenue (1.6 trillion reais—US$ 516 milion) to put an end to its poverty.

By using R$ 40 billion (US$ 13 billion) annually, in a few years Brazil could assure all its children well-equipped, good schools with well-prepared, well-paid and dedicated teachers. All houses would have running water and plumbing.

Everyone would be guaranteed housing, a preventative healthcare system and a network of top-quality hospitals where no one would have to wait for medical attention. And no one would go hungry since the expenditures to carry out these projects would generate employment and revenue.

President Lula is the right person to propose the Marshall Plan for the world, but he is, even more, the right person to propose our own Marshall Plan. He can inspire the Brazilian population to pay that small 2 percent to accomplish the great social shock that Brazil has awaited for centuries. It should have begun decades ago and for 18 months Brazil has been waiting for the Lula government to initiate it.

The Lula government is still our hope for the emergence of a new mentality, one that understands that the transfer of revenue, to those who need it, will thus dynamize the economy, benefiting not only those who receive revenue but also those who transfer it.

By transferring billions of dollars, back in the 1940s, for the recovery of Europe, the United States was an ultimate beneficiary. Just like the poor Brazilians, the 10 percent most wealthy will benefit from a poverty-abolition program.

From the point of view of economics, thanks to the decurrent growth; from the point of view of ethics, thanks to the decency of living in a country without shameful inequality, thanks to the reduction of violence, thanks to the increase in education and in national culture. Thanks to the pride of living in a decent country.

But the United States not only understood the advantage of transferring revenue to a Europe devastated by war, it also saw the necessary of doing it soon after the war ended. The Lula government cannot wait any longer to set up our Marshall Plan.

With each passing day the President loses more of his credibility to propose new ideas and ask for sacrifices. Because of this, an idea as important as a Marshall Plan for the world does not have the repercussions that it should: People, here and abroad, are asking themselves why he is not doing here what he is proposing for the world.

Lula must not give up his Marshall Plan for the world but he also needs to present Our Marshall Plan because, should he not do this, his proposal will appear to be merely a speech, without major consequences.

Cristovam Buarque - cristovam@senador.gov.br -, has a Ph.D. in economics. He is a PT senator for the Federal District and was Governor of the Federal District (1995-98) and Minister of Education (2003-04).

Translated by Linda Jerome - LinJerome@cs.com.