BRAZIL: Aid from Below

Abstract

“…o Brasil vem desenvolvendo uma maneira bastante própria de cooperar com os países em desenvolvimento … Trata-se de um modelo ainda em construção, que, a pesar de já revelar algumas de suas características, ainda carece de maior sistematização e debate.”

These words written by President Luiz Inácio “Lula” da Silva open the preface to the  Brazilian government’s first official report on its foreign aid program, published in 2010. In  English, this declaration reads, “Brazil has developed its own method to cooperate with  developing countries […] It is a model still under construction, that, despite having already  revealed some of its characteristics, still needs major systematization and debate.”2 Brazil  genuinely believes in its own system for foreign aid, which brings the public, academic, and civil  sectors of society together to offer aid without conditionalities to countries whose difficulties  mirror those of Brazil’s past and present. The report also emphasizes the failures of previous aid  paradigms in adequately addressing poverty, asserting developing countries’ importance in  reassessing aid practices.3 Nonetheless, even as he remains convinced that the Brazilian method  of foreign aid is sound and successful in many ways, the former president is willing to concede  that the Brazilian method requires more study and development to become truly successful and  effective. This article will take a brief look at Brazilian aid practices to document the strengths of  both South-South cooperation and trilateral cooperation as well as opportunities to improve these  aid approaches, and conclude with recommendations for the wider aid community.


Brazilian Aid Processes 

Brazil’s foreign aid program, headed by the Agência Brasileira de Cooperação (ABC),  focuses on helping countries that have had a development experience similar to its own. This  similarity of experience provides a basis for Brazil to encourage the use of programs and policies  developed through Brazil’s experience and internal discussion, with the assumption that  similarities ensure programs that were successful in Brazil would also be successful in the  partner country.4 As a result, Brazil’s aid agency works most often with other Latin American  countries and Portuguese-speaking countries, although aid is given to a number of countries that  do not fall into either category. Brazilian programs also focus on areas where they have  expertise, such as agricultural training and infrastructure or conditional cash transfer programs  following the successful Bolsa Familia model.5 

Brazil contributes 76 percent of its total assistance to multilateral institutions, whether  they are international organizations or regional development banks. The remaining 24 percent is  disbursed through bilateral partnerships, called South-South cooperation (SSC), or with a  traditional donor partner, known as trilateral cooperation.6 These bilateral partnerships are  roughly equivalent to traditional donors’ bilateral aid in that ABC is working directly with a  country’s government. ABC prefers to use the word “cooperation,” rather than bilateral aid, to  signal that the process is a two-way knowledge exchange and participatory experience rather  than a one-sided gift or loan.7 Trilateral cooperation is defined by the OECD-DAC’s Task Team  on South-South Cooperation as “the collaboration between a Southern, sometimes called pivotal,  provider and a Northern donor in benefit of a third recipient country.”8 This method is meant to  take advantage of the experience and funding of a traditional donor as well as the trust fostered by shared experience between the emerging donor and the recipient country. Approximately one fifth of Brazil’s current projects, or 88 total projects, are trilateral cooperation.9 

Brazilian Aid Principles 

In the preface to Brazil’s report on foreign aid, former President Lula da Silva highlights  several key features of Brazilian aid along with differences between Brazilian and traditional  donor programs, on which Brazil prides itself. Above all, Brazilian aid focuses on partner  countries and their needs. Since Brazil emphasizes respect for national sovereignty, the Brazilian  aid program does not include conditionalities. Additionally, Brazil's aid approach incorporates  partner countries into the project process from the negotiation phase through the end of the  project. Partner countries are also expected to enter into an exchange of benefits and responsibilities rather than simply functioning as recipients of aid. The final product of this two-way partnership is, ideally, projects supported by Brazilian funding that can have an impact on  the specific needs of a country and be a part of the partner government’s long-term plan.10 

These features can be found in other emerging donor programs that focus on the  principles of horizontality, consensus, and equity. As Brazil's approach suggests, emerging  donors use comparative advantages and shared experiences or regional ties to create effective  and embedded aid programs. The OECD-DAC’s Task Team asserts that these principles support  the aid effectiveness agenda agreed upon by traditional donors in the 2005 Paris Declaration and  the 2008 Accra Agenda for Action. Brazil, however, along with other emerging donors, displays  a reluctance to support principles that are at the core of traditional donor assistance, making  donors wary of the emerging actors’ increasing activity. For instance, although emerging donor  programs, like Brazil's, support OECD aid effectiveness, the organization notes Brazil joins many Southern aid providers, including Cuba and Nigeria, in non-ratification of the Paris  Declaration, and a preference to emphasize principles such as respecting the sovereignty of  recipient partners.11 Brazil itself indicated its unwillingness to ratify OECD principles of aid  effectiveness in the preface to its report.12 

There are other practices that compound traditional donors’ caution. In 2006, former  OECD-DAC Chair Richard Manning published a memo on the risks of the “wider range of  financing options” that the entrance of emerging donors creates for low-income countries  seeking aid. In his view, emerging donors could potentially inhibit the DAC’s pursuit of aid  effectiveness principles.13 Through this perspective, emerging donors are not necessarily  committed to traditional aid principles, a thought that disturbs traditional donors in their pursuit  of good aid practices. Manning also expresses worry that a lack of conditionalities, as well as the  absence of rigorous benchmarks agreed upon by DAC donors, may result in countries receiving  aid without making substantial improvements in governance or without being able to repay. He  suggests that the lack of conditionalities could result in minimal progress on governance and re emergence of debt duties for low-income countries.14 

Emerging donors are lagging behind in data collection and project supervision, two  things that are key to the Paris Declaration. Managing for results and accountability are difficult  to improve without statistics and in-country donor presence.15 In Brazil’s case, the 2010 report – the result of a series of surveys – was the first attempt to gather statistics on aid disbursements.  While this qualitative methodology of collecting data on Brazil’s program is something that  ABC believes could be useful for other emerging donors, ABC also states that the method was not reliable enough to analyze projects prior to 2005. Furthermore, ABC claims that Brazil’s  reporting technique requires refinement, and that the agency lacked sufficient resources to pursue  further data collection for the report.16 

Assessing the success of South-South cooperation and trilateral partnerships is necessary  before considering whether traditional donors should increase their cooperation with emerging  donors and if they should encourage or facilitate more SSC work among developing nations.  Without addressing the risks earlier discussed, increasing SSC and trilateral work could create  future problems for the world. There are challenges, however, in measuring the success of the  Brazilian case is difficult because of differences in key definitions and a lack of documentation  and statistics. 

Differences in Key Definitions 

Brazil’s report on foreign cooperation divides Brazil's aid activities into five categories:  humanitarian assistance; scholarships for foreigners to study in Brazil; technical, scientific, and  technological cooperation; contributions to international organizations and regional banks; and  peace operations.17 These broad categories present somewhat of an issue for assessing Brazil’s  aid contributions for a variety of reasons-most stemming from Brazil’s emphasis on their foreign  work as cooperation rather than development assistance. 

Foremost, OECD-DAC countries do not generally consider scholarships for foreigners to  be characterized as foreign aid. Brazil, however, lists this as “one of the most traditional methods  of cooperation.”18 These scholarships provide funding for foreigners from a select list of  countries to study in Brazil, especially for those interested in science and technology. Ministries associated with Brazilian aid appear to view these scholarships as a method of investing in a  country’s capacity by creating more educated leaders. This type of spending accounts for 10  percent of Brazil’s total foreign cooperation.19 Disagreement on whether this constitutes foreign  assistance would result in a substantially different portrait of aid, both in quantity and in  Brazilian actors involved. 

According to ABC-submitted documents, technical assistance constitutes a great amount  of Brazil’s humanitarian aid. While Brazil states that humanitarian aid accounted for 25.5  percent of foreign assistance in 2009, documentation from ABC only reveals one project that  was coded as anything related to humanitarian assistance according to OECD sector codes.20 21 

This lone project is coded as disaster prevention and preparedness, and involves training sessions  in Colombia on forest fire management.22 

The report on foreign assistance does specify that humanitarian assistance is largely given  through ministries related to food, health, shipping, and human rights. In that regard, it may be a  logical assumption that ABC documents do not reflect humanitarian spending because the  agency is not charged with managing this type of cooperation. However, the countries singled  out as major recipients of humanitarian assistance do appear frequently in ABC’s project listings,  and many project descriptions discuss technical assistance for capacity building following a  crisis. These projects were all coded to other OECD sector codes, such as agriculture, health, or  education.23 This indicates that Brazil’s definition of humanitarian assistance differs from the  OECD’s enough to create a substantial disparity in reporting. 

Lack of Documentation and Statistics 

The failure to collect and publish data is something that comes up frequently when  studying Brazilian aid. It is difficult to find information, even with looking for a very specific  project, given the multiplicity of Brazilian agencies and ministries working in foreign  cooperation. Trilateral partners make it equally difficult to find documentation of the partnership  and its results. In general, the lack of information makes it difficult to determine whether SSC  and trilateral cooperation are successful and more efficient than traditional aid giving, and in and  of itself indicates the need to improve processes and methods for results-tracking and  transparency before encouraging the increase of SSC and trilateral cooperation. 

Project specifics, planned or executed, are difficult to come by. ABC’s own report on  foreign aid gives information on commitment totals and destination countries, but does not talk  about specific projects and cannot provide information on what the projects have accomplished,  and the agency's website provides little more in terms of data and project information. ABC took  steps to improve information availability, through collaboration with AidData – a transparency  initiative – to publish statistics on the commitment and disbursement of aid for all available  documents using ABC project documents.24 Since ABC is only one of the donating partners  within the Brazilian government, this documentation does not reflect the whole of Brazil’s  foreign cooperation. Documentation on projects under other line ministries is not easily available  via ministry websites, and is rarely mentioned in great specifics. Gathering a portfolio of Brazil’s  projects and their details is nearly impossible, with even the number of projects unknown. For  instance, starting in 2002, Germany and Brazil worked together to establish and improve national  AIDS programmes in Paraguay, Colombia, El Salvador, the Dominican Republic and Uruguay, through Germany's Federal Ministry for Economic Cooperation and Development and Brazil's Ministry of Health.25 There is a limited amount of detail on the project via either the websites for  Germany's aid agencies or those of Brazil's Ministry of Health and ABC, which mentions  Germany as a general partner for development. While a webpage for Subregional South-South  Cooperation for German and Brazilian cooperation on HIV and AIDS in Latin America exists, it  only gives some details about the partnership, while not even listing the eleven countries now  involved in the partnership.26ABC’s project listing provided through AidData shows HIV/AIDS  related projects for El Salvador, but the project data does not make clear whether or not this  project even falls under triangular aid with Germany or is part of Brazil’s bilateral SSC. 

Trilateral partners also offer very little information about projects. ABC lists Japan,  United States, and Germany as their principal partners for trilateral cooperation, and all three of  these countries’ agencies shed little light on the inner workings of Brazilian projects and their  results.27 The Japan International Cooperation Agency (JICA) discusses its work with Brazil but  does not include documents, statistics, or particulars via heir agency website or in documents.28 

Germany’s website for its trilateral work with Brazil has not been launched, but appears to be in  planning.29 Searching the U.S. Agency for International Development (USAID) website  uncovers a news release on a memorandum of understanding establishing trilateral cooperation  in 2009, but little other details.30 

Without project documents or full statistics on giving, it is difficult to assess whether  Brazilian foreign cooperation has been successful – or even what it has been doing at all.  Numbers on commitment are available from ABC, but no information on disbursement or project results can be found, and no other ministries publish information on amount of money spent on  international cooperation. The full picture of cooperation across all Brazilian ministries is only  available from the Brazilian report on 2005 to 2009, which stated itself that the methodology  used to procure those numbers may be unreliable due to its qualitative nature.31 It is interesting  that even traditional trilateral partners with more experience in managing for development results  have not produced metrics or published documents allowing for a closer look at projects carried  out with Brazil. This seems to indicate that the partnerships may not be producing positive or  progressive changes for Brazil’s reporting method and capacity based on traditional donor  experience. 

Recommendations 

The issues discussed above are more than problems with information – they represent the  divide between Brazilian aid and traditional aid. Differing definitions of humanitarian aid and the  inclusion of scholarships for foreigners indicates that Brazil sees the needs of developing  countries differently. Capacity building, for ABC, is something that can be done on an individual  basis by giving foreign citizens the opportunity to study in Brazilian higher education  institutions. Humanitarian aid addresses long-term concerns with structure and capacity rather  than immediate needs of food, shelter, or other concerns. 

The lacking availability of statistics and documentation, even in instances where Brazil is  partnered with a traditional donor committed to results-based management and information  transparency, may indicate many things. Brazil may not be in a position to fund monitoring and  evaluation properly; the wide range of Brazilian ministries involved in giving may have very  different ideas of what project documents can or cannot be published, resulting in the failure to publish anything; or Brazil may be reluctant to follow the example of traditional donors in  publishing project documents and details, just as the agencies and ministries are reluctant to  follow the Paris Declaration and OECD definition of development assistance as noted in the  national report. Further information, however, must be available before any concrete  observations can be made. 

Despite Brazil’s reluctance to buy into traditional donors’ belief in transparency and its  connection to aid effectiveness, it still benefits from increasing capacity for monitoring and  evaluation to produce public statistical reports on success. Without developing better results  tracking, Brazil cannot evaluate where it has the biggest impact and where its particular policy  strengths are best used. Without quantitative measures of success and strength, Brazil also cannot  make a case for trilateral partnerships with traditional donors who may be more reluctant to work  with emerging donors. For Brazil to be able to develop sound monitoring and evaluation, as well  as work towards information availability, traditional donors must lend a hand. Traditional donors  should continue to forge partnerships with ABC, through which they can share expertise and  funding to bolster ABC’s capacity for measuring results and publishing assessments.  Furthermore, Brazil would benefit if foreign cooperation could be consolidated into ABC. This  would entail all foreign funding running through ABC, while having associated ministries work  through ABC to lend expertise. The Brazilian government would then have a better idea of how  much was being spent and on what, dodging future problems of redundancy and proliferation  within their own aid program. Traditional donors can encourage this consolidation by working  directly with ABC in all trilateral partnerships.

Brazilian foreign cooperation offers many exciting prospects in the relationships it can  draw upon within Latin America, among Portuguese-speaking countries, and even in the greater  community of developing nations. However, Brazil’s lack of information and definitional  disconnect is a weakness that holds the country back from understanding its own strengths in aid  giving and keeps traditional donors from realizing where they can benefit from a trilateral  partnership with Brazil. Future research should draw upon documents and information as it  becomes available to understand where Brazilian aid performs well. 

ENDNOTES

1 Macedo Cintra, Marcos Antonio, ed. Cooperação Brasileira para o Desenvolvimento Internacional: 2005- 2009. Instituto de Pesquisa Econômica Aplicada, Agência Brasileira de Cooperação, Brasilia: 2010. 78 pp. 7.

2 Author’s own translation. 

3 Ibid, 7-8. 

4 Macedo Cintra 2010, 7.  

5 Bolsa Família is Brazil’s social welfare program, which absorbed older welfare policies and programs and unites  government ministries across multiple sectors in one program to combat both the causes of poverty as well as its  results. The conditional cash transfer program within Bolsa Família is the most important and well-known part of  the program. Eligible families receive cash in return for fulfilling conditions, such as school attendance for young  children, immunizations for babies, and clinic visits for pregnant mothers. 

6 Macedo Cintra 2010, 19. 

7 Ibid, 17. 

8 The Task Team on South-South Cooperation. Boosting South-South Cooperation in the Context of Aid  Effectiveness: Telling the Story of Partners Involved in more than 110 Cases of South-South and  Triangular Cooperation. OECD: 12 March 2010. 26. 

9 Overseas Development Institute. “Brazil: an emerging aid player.” Briefing Paper 64. October 2010. 3.

10 Macedo Cintra 2010, 7. 

11 Task Team 2010, 14-25. 

12 Ibid, 14-25. 

13 Manning, Richard. “Will ‘Emerging Donors’ Change the Face of International Cooperation?” OECD/DAC: 2006.  <http://www.oecd.org/dataoecd/35/38/36417541.pdf>. 1, 7-8. 

14 Ibid, 10. 

15 Ibid, 19-21. 

16 Macedo Cintra 2010, 13-14. 

17 Ibid, Sumário (Table of contents). 

18 Ibid, 26. 

19 Ibid, 26-32. 

20 Ibid, 22; AidData. “PLAID 1.9.1 Codebook and User’s Guide.” February 2010. <http://s3.amazonaws.com/plaid19/PLAID191_codebook_23Feb2010.pdf>. Accessed 30 June 2011. 75.

21 This statement is based on all instances where Brazil is a donor of development assistance according to AidData.  AidData's coverage of Brazil's aid activities span from 2005 until 2009. More information on Brazil's aid giving  activities can be found on <www.aiddata.org>.

22 “Exchange of Knowledge and Experience about Forest Fire Management.” AidData project information. Brazil to  Colombia. <http://www.aiddata.org/project/show/3001904>. Accessed 25 June 2011. 

23 This statement is also based on all instances where Brazil is a donor of development assistance according to  AidData. 

24 AidData 2010. 

25 Deutsche Gesellschaft für Technische Zusammenarbeit. “Subregional South-South Cooperation HIV/AIDS.”  <http://www.gtz.de/en/weltweit/lateinamerika-karibik/18818.htm>.Accessed 22 June 2011. 26 Deutsche Gesellschaft für Technische Zusammenarbeit. “Subregional South-South Cooperation HIV/AIDS.”  <http://www.gtz.de/en/weltweit/lateinamerika-karibik/18818.htm>.Accessed 22 June 2011. 27 Macedo Cintra 2010, 34. 

28 Japan International Cooperation Agency - Brazil. <http://www.jica.go.jp/brazil/english/index.html>. Accessed 30  June 2011. 

29 Deutsche Gesellschaft für Technische Zusammenarbeit. “Programmes and projects in Brazil.” <  http://www.gtz.de/en/weltweit/lateinamerika-karibik/30080.htm>. Accessed 22 June 2011.

30 United States Agency for International Development - Brazil. <http://brazil.usaid.gov/en/node/1>. Accessed 30  June 2011. 

31 Macedo Cintra 2010, 13-14.

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