Number 331, December 30, 1998.
Visit our home page: http://www.oneworld.org/sejup/
Our principal topics this week are:
LAND ISSUES
- 30% of Families Leave Government Resettlement Projects
- President Plans To Cut Half of the Funds Destined For Drought Areas
HUMAN RIGHTS
- Brazil Imprisons More But Does Not Increase Prison Space
- Assassin of Chico Mendes Requests Pardon
LAND ISSUES
- 30% of Families Leave Government Resettlement Projects
A recent study done by the Federal University of Rio showed that 30% of
rural families who have been resettled by the government have left these
land projects. The highest rates of evacuations occur principally in the
North and Central-West region of the country, among communities isolated
from other communities, and in communities with low levels of organization.
The study researched 59 ôassentamentosö (land settlements) created between
1985-95 in 22 states. It also reports horrible conditions on the
assentamentos: lack of health posts, streets, electricity, etc. Twelve
percent of the settlements did not have schools--classes are held outdoors;
and therefore, classes are often canceled due to rain. In the case of
health, many local providers have political interests: ôIn some cases, it
is obligatory to present your election card in order to be attended,ö said
the report.
Source: Folha de Sao Paulo, 28 December 1998
- President Plans To Cut Half of the Funds Destined For Drought Areas
After having confronted the worst drought of the century, Northeasterners
cannot expect to have much hope that things will get better in the coming
year: President Fernando Henrique Cardoso wants to cut half of the funds
destined for work projects in the areas affected by the recent drought.
The President wants to lower the existing budget for 1999 of $R522.9
million to $R258 million. This is part of his ôfinancial adjustment planö
to confront the difficulties the country is currently experiencing.
One of the states most affected by the drought is the Northeastern State of
Paraiba. One of the major cities of the state, Campina Grande, is on a
rationing water program as the dam which provides the water is only
operating at 18% of its original capacity. If there is not sufficient rain
in 1999, the system will collapse is September, say local experts. ôThe
situation is horrific, and who is really going to be in trouble are the
poor. Those who have money will just build their own cisterns. Industries
also suffer because they will have to pay additional costs. The only
solution would be to irrigate from the San Francisco River,ö said the mayor
of Campina Grande.
But in the region of Cariri, the scenario is much worse. One city of the
area, Soledade (pop. 11,106), has not had city water since 1992. Water is
now delivered by trucks. In 1998, it has only rained 60 millimeters
(normal for a year is 600 millimeters). ôThese last two years have been
exceptionally difficult. I have never seen anything like it. Hunger and
thirst rule, and what is worse is that the outlook is not good. There are
no policies for the development of the area, and the ground is not suitable
for agriculture. We have been struggling with this for years,ö said Mayor
Fernando Araujo Filho.
In Pernambuco, another state hard-hit by the drought, hunger has forced
farmers to eat seeds for planting. The seeds, treated with agrotoxins,
have served as a resource for food since June of this year when the rainy
season ended along with hopes for a harvest. The state has no seed stocks
for the coming year, complicating the situation even more. In this same
state, women and children who are hungry have set up ôtoll boothsö along
the highway, setting up makeshift barriers to stop cars and beg for
donations of food or money.
Source: Folha de Sao Paulo, 26 December 1998
HUMAN RIGHTS
- Brazil Imprisons More But Does Not Increase Prison Space
A report released yesterday by Human Rights Watch said that Brazil has
imprisoned more people but has not created more space for the prisoners.
Within the last three years, the number of prisoners increased from 95 per
100,000 habitants to 108 per 100,000 habitants. Now, there is 23% less
space. ôThis is aggravating the prison system, causing crises and creating
chaos,ö said James Cavallaro, the director of Human Rights Watch Brazil.
The number of prisoners per 100,000 habitants in Brazil is similar to
Columbia (110), Mexico (108) and Venezuela (113). The U.S. has the record
at 645. The report cited violence as the principal problem arising from
overcrowding--violence among prisoners, and violence administered by the
guards. In some prisons, ôtorture is practically routine,ö said Cavallaro.
Source: Folha de Sao Paulo, 16 December 1998
- Assassin of Chico Mendes Requests Pardon
The man who assassinated Chico Mendes ten years ago, Darly Alves da Silva,
has requested pardon from the government. According to his lawyers, da
Silva fits certain conditions that could warrant his release: he is older
than 60 years of age, he has already completed a third of his 19 year
sentence, and he has done nothing serious in the last 12 months. However,
the government has added a new condition this year which would impede a
pardon: no prisoner will be freed who has escaped or tried to escaped from
prison, or who has been involved in prison revolts. In 1993, da Silva and
his son, Darci, also charged in the death of Mendes, escaped prison. They
were recaptured in 1996. The request is currently being considered by
Judge Everardo Alves Ribeiro. Due to international pressure, it seems
unlikely that the judge will recommend pardon for Da Silva.
Chico Mendes was assassinated after a confrontation with landowners in the
state of Acre. He organized the rubber tappers of the region to stop the
clear cutting of the rainforest, the source of their livelihood.
Source: Folha de Sao Paulo, 19 December 1998
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NEWS FROM BRAZIL supplied by SEJUP (Servico Brasileiro de Justi a e Paz).
Number 332, January 7, 1999.
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Visit our home page: http://www.oneworld.org/sejup/
Our principal topics this week are:
CHURCHES
- Brazilian bishops question government solutions to economic and social
crisis
URBAN QUESTIONS
- Street population: There is no place for them
POLITICS
- FHC says that he isnÆt ômanager of the crisisö
SOCIAL QUESTIONS
- Unemployment rate will reach record high in 1999
HUMAN RIGHTS
- UPDATE DINIZ CASE : Group ends hunger strike
CHURCHES
- Brazilian bishops question government solutions to economic and social
crisi
ôIt was sad to see how much money was wasted on electoral campaigns, while
the great majority of people confront enormous difficulties,ö said the
bishops of the CNBB (National Conference of the Bishops of Brazil). Even
more worrisome, according to the bishops, is ôthe situation in which people
live, in the scandalous inequality and misery that is characteristic of
our country.ö The difficulties of the people are increasing and the
economic decisions of the government, following suggestions coming from
outside the country, do nothing except confirm the questionable direction
governmental polocies are taking. And the questions are many: why does
the government not prioritize internal production and consumption? Why
does it not make unemployment and the growing misery and inequities a
national priority? And what about agrarian reform?
The CNBB does not consider it correct to attibute ôthe origins of our
problems principally to the international crisis. Ask why the government
prefers to opt for submission to globalization dictated simply by the logic
of the market. Is it not right to oppose the demands on Brazil by
international organization more concerned about the health of the stock
markets than the health of the people?ö
Source: Sem Fronteiras - December 1998
URBAN QUESTIONS
- Street population: There is no place for them
(The following excerpts were taken from an article, written by Paulo
Pereira Lima, that appeared in the December 1997 edition of Sem Fronteiras
magazine.)
Ana Maria, a street person, is not showing much, but she has already begun
to feel the movements of her baby going from one side to the other, ôlike a
little fish inside an aquarium.ö Her husband, Carlos Roberto, dies
laughing, one of the seemingly few moments of happiness amidst the
harshness of life on the street. It is the coupleÆs first child. It has
been six months since they moved from a shantytown in the Southern Zone of
S o Paulo to viaducts and parks in the center of the city. ôThe way things
were going, it just wasnÆt working out. The rent and the food were just
too much. Everything is expensive. Without a job, things just donÆt work
out,ö complained Roberto. ôThis country has gone from bad to worse.ö
Just as the baby moves in its motherÆs womb, the parents go from one
corner to the next looking for a safe place to hide and sleep. They have
already lost their places under the viaducts, canopies, and places in the
parks which had served as their home until the police drove them out and
took their few belongings. ôThe problem is not only the police.ö says
Roberto. Life is becoming more difficult for street people. ôPeople are
putting up bars just about everywhere. The city has practically everything
fenced in,ö explains Roberto.
S o Paulo does not only have the streets closed by gates, guards posted
on corners, and houses with electric fences around them. Now, banks,
hotels, theaters and stores downtown have installed pointed iron bars on
windowsills. The objective: to keep undesireable people from sitting or
laying on empty spaces. Some even set up a device that the streetpeople
call ôthe little showerheadö or the ôautomatic wash.ö These are pipes on
a roofs from which buckets of water are released onto the sidewalk below at
certain hours of the early morning.
In less than a year, iron fences have taken up the last centimeters of the
concrete or green in public places. In the recently inaugurated metro
station, Parada Inglesa, the space under the viaduct is fenced in with
iron bars and concrete pillars. One innovation in terms of
ôanti-steetpeople architectureö is the pavement under the viaduct which is
constructed with uneven bricks that are laid vertically.
Some places in the city now have more than simple fencing in public
places: they now serve as parking lots for city officials. The city
claims that these measures have been adopted for security reasons, to
ôprotect the public spaces from vandals.ö For the NGOs that struggle for
streetpeoplesÆ rights, this has another name: ôintolerance and disrespect.ö
The complaint of streetpeople of the ôseigeö against them is common.
After iron fencing forced him out of his shelter next to a bank, Paulo
Rogerio Santos, from Bahia, passes the damp nights on a sidewalk of the
famous Avenida Paulista, the financial heart of the city. He left Bahia
four years ago for a better life in S o Paulo. He says that what they are
doing is ôpure cowardice. No one can stay any longer under a viaduct or
an overhang. Only the street is left.ö And since the street is the only
option, he preferred to choose a street with a lot of traffic - ôitÆs much
safer.ö Besides extending his hat to passers-by on the street, Rogerio also
collects aluminum cans from restaurants and local bars. At the end of the
day, he takes his cans to the recycling center. They pay him fifty
centavos (about 50 cents) per kilo.
Themes such as ôanti-streetpeople architecture,ö the closing of public
spaces, urban violence, etc. were debated at a national symposium at the
University of S o Paulo last month. One organizer of the event, Erm nia
Maricato, former city councilwoman during Luiza ErundinaÆs mayorship, said
that what is most worrisome is the type of city planning that doesnÆt
unite, but divides more people. ôThis is the fruit of globalization - it
takes apart the collective solutions, and affirms individuality and
competition. Solidairty is at the bottom of the list.ö
POLITICS
- FHC says that he isnÆt ômanager of the crisisö
The president Fernando Henrique Cardoso, 67, began his second term
yesterday with a lukewarm speech in which he made few promises and warned:
ôI wasnÆt elected to be the manager of the crisis. I was chosen to rise
above it.ö Before the audience, also lukewarm, and various empty seats in
the House plenary, he said that he was elected to build a ôstable, modern
and competitive democracy,ö but noted that to combat the crisis, hard
measures will be necessary. ôTaking bitter medecine to cure a sickness is
better than continuing with a chronic fever that debilitates oneÆs strength
and compromises the health of the entire organism,ö said FHC haltingly and
without emotion. He said there ôremains much to doö and promised to put
an end to the imbalance of the public accounts: ôI will not hesitate to do
whatever is necessay to put an end to the torment of public deficit.ö The
president pointed out that the public deficit is one of the ôvulnerable
pointsö of his government. According to him, the country will succeed in
being liberated from ôthe snare of high interest ratesö only when fiscal
adjustment is complete.
FHC said that the increase in international interdependence makes it such
that the country is affected ôby events originating in other regions of the
world.ö And he finished: ôThe problems of others become ours as well.
In the same way, our problems affect more directly other countries.ö The
president was referring to the financial crises in Asia and Russia, which
the Brazilian government used to justify the doubling of interest rates.
For FHC, Brazil has to ôspeak firmlyö in the international arena to defend
its interests. He added that Brazil ôwill continue to take an active role
in reshaping the architecture of the international financial system.ö
Without specifying mechanisms, he said that speculative actions can no
longer be accepted without any supervision or ordering. In his opinion,
these actions disjoint the production process and pose a recurring threat
to national economies. Brazil, that had international reserves at the
level of US$70 billion six months ago, today only has close to US$37
billion.
After talking at least three times with the principal leader of the
opposition, Luiz Inßcio da Silva (WorkerÆs Party), including on the eve of
the inauguration, FHC dedicated three paragraphs of his speech to the
opposition. In defending the alternation of power as part of the
democratic process, he expressed an openness to the possibility of changes
in his governmentÆs policies. ôI am ready to debate and set the path
straight, you only need to convince me that the alternative is better for
the country,ö he said. Further along in his speech, he was more
reticent about the possibility of changes: ôThe path is correct. The
policies are coherent. They are already producing results. They will be
reinforced. Rectified when necessary.ö While showing much happiness about
the opening of dialogue with the opposition, which did not exist during
practically his entire first term, he pointed out that there are ôthemes
and actions that are above party differences.ö FHC, however, balanced this
part of the speech with a thank you to his support base: ôFundamental to
democracy, however, is the support of the majority. This support I
received at the voting polls by popular vote and from various political
parties.ö As he has done since 1995, FHC emphasized the necessity to pass
the reforms currently up for vote in Congress. The reforms that the
president pointed out in the speech were in the areas of social security,
administration, judiciary, politics, and taxes.
ôIÆm worried about unemployment,ö said the president, admiting that the
level of unemployment ahould go down during this initial phase of the new
government, as predicted by different institutions. He promised to
concentrate all the MinistriesÆ energies on projects that open new
opportunities for work and income, ôespecially for young people.ö He
mentioned also the opening of credit for small businesses and programs to
train workers and provide assistence to the unemployed.
Source: Folha de S o Paulo, 2 January 1999
SOCIAL QUESTIONS
- Unemployment rate will reach record high in 1999
The consensus among analysts and economists is that the unemployment rate
in 1999 will grow significantly. How much the rate will increase,
however, is difficult to predict. The umemployment rates of 1998 already
reached record highs.
The rate of unemployment in the metropolitan region of S o Paulo, using
the methodology of Dieese and the Seade Foundation, was 17.7% of the
Economically Active Population (EAP) in November. According to Mßrcio
Pochmann of Unicamp (State University of Campinas), the rate can reach up
to 25% of the EAP in the first months of the year. ôThe recession combined
with the adjustment in the public sector, something that has never happened
before.ö
According to IBGE (Brazilian Institute of Geography and Statistics), the
unemployment rate in principal metropolitan regions of the country in
November was 7.04 of the EAP. The majority of analysts that use this
methodology predict that the rate could rise to between 9% and 11% of the EAP.
Source: Folha de S o Paulo, 2 January 1999
HUMAN RIGHTS
- UPDATE DINIZ CASE : Group ends hunger strike
The group that kidnapped businessman Ab lio Diniz ended their hunger
strike which lasted for 46 days. The decision was announced by the groupÆs
spokesperson, Breno Altman, after a meeting of one hour and 25 minutes with
the 8 kidnappers, the political negotiator of the case, House
representative Luiz Eduardo Greenhalgh (WorkerÆs Party - SP) and the
honorary president of the WorkerÆs Party, Luiz Inßcio Lula da Silva.
The five Chileans and two Argentinians accepted the Brazilian governmentÆs
proposal to transfer them to their countries before the treaty for
transfers of prisoners is approved by the leglislatures of the three
countries involved (Brazil, Argentina and Chile).
The only Brazilian of the group, Raimundo Costa Freire, accepted the
compromise of the government, according to Greenhalgh, to transfer him to a
special prison in Cearß, his home state. He will remain in the custody the
Military Police of Fortaleza until the local justice makes a judgement on
his request for conditional liberty. The foreign prisoners will be
subjected to the decision of the Justice Ministers in their countries.
According to Greenhalgh, the members of the group must remain 4-5 days in
the hospital to recuperate physically before traveling. About the transfer
of the Brazilian and the possible concession of conditional liberty, the
group affirmed, through their spokesperson, that they look ôwith optimism
at what was proposed by the federal government.ö
ôFundamental to the decision of the prisoners was the Brazilian
governmentÆs demonstration of good will,ö said Lula, who affirmed having
gone to the hospital to ômake an appealö to the group to end their hunger
strike. ôI have to confess that, if it depended on me, there would be no
hunger strike.ö said Lula. Back in 1980, he and other colleagues went
without eating for six days to protest the ôunjustö imprisonment of the group.
Source: Folha de S o Paulo, 1 January 1999
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NEWS FROM BRAZIL supplied by SEJUP (Servico Brasileiro de Justi a e Paz).
Number 333, January 16, 1999.
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Visit our home page: http://www.oneworld.org/sejup/
Our principal topics this week are:
LAND
- Jurors Dismissed from Trial of Sem-Terra Massacre
HUMAN RIGHTS
- Hunger-Strikers Return to Prison
- Child Labor Law Changes
CHURCHES
- Interview with the New Archbishop of Salvador
LAND
- Jurors Dismissed from Trial of Sem-Terra Massacre
The Justice Department of the state of Para will dismiss 21 members of a
jury panel that will decide the verdict in the case of a massacre of
Sem-Terra members (moviment of the landless). The massacre happened on
April 17, 1996, in a confrontation between military police and Sem-Terra
members. Nineteen Sem-Terra members will killed in the conflict. The
president of the Tribunal of Justice, Romao Amoedo, confirmed that there
will be new selection for the jury, although he did not explain the motive
for the dismissal. The Sao Paulo newspaper, Folha de Sao Paulo, earlier
revealed that 13 of the 21 jury members for the trial had some connection
with the ôfazendeirosö (the large land-owners). The trial is also
awaiting a response from the Superior Court for a request to move the trial
to the state capital, Belem. The judge for the case now predicts that the
case will not begin until sometime in April or May.
Source: Folha de Sao Paulo, 13 January, 1999
HUMAN RIGHTS
- Hunger-Strikers Return to Prison
After 46 days of a hunger-strike and 12 days of recovery, the kidnappers
of businessman Abilio Dinez have been returned to prison. The group of
eight, consisting of Argentineans, Chileans and one Brazilian, ended the
hunger-strike after the Brazilian government agreed to expel the foreigners
to their homelands and transfer the Brazilian to his home state of Ceara.
According to Breno Altman, the spokesperson for the group, the return to
prison has not shaken the groupÆs confidence that the agreement will be
kept. ôOur estimate is that in a week or ten days maximum, they will be
returning home,ö said Altman. But there are still some beaucratic hurdles
ahead. First, The Supreme Federal Court must make a decision about a court
order from a Sao Paulo procurator. The court order alleges that the
transfer of the prisoners cannot happen until the accord is approved by the
legislative bodies of Brazil and Argentina. Chile has already approved the
agreement; Argentina has not signed, and the Brazilian Senate has yet to
pass the accord. (It has already passed in the Brazilian House.) The
Brazilian, Raimundo Costa Freire, was authorized on the 14th of January by
local authorities to be transferred to Ceara.
Source: Folha de Sao Paulo, 13 & 14 January, 1999
- Child Labor Law Changes
It is now against the law for minors under 16 years of age to work. The
change is part of a constitutional amendment which also moves the minimum
retirement age up to 65 for men and 60 for women. It also changes the
minimum age of an apprentice from 12 to 14. Businesses that hire minors
are subject to a US$320 fine. Critiques of the amendment say that the law
is not helpful, and may even be harmful unless the government can guarantee
education for minors and social assistance for those families who receive
only a minimum wage and need their children to work
Source: Folha de Sao Paulo, 11 & 14 January, 1999
CHURCHES
- Interview with the New Archbishop of Salvador
Pope John Paul II has name Dom Geraldo Majella Agnelo as BrazilÆs prelate
and Archbishop of Salvador, Bahia. He assumes his new role on March 11.
Currently, he is finishing up an assignment at the Vatican. Below are
excerpts of an interview with the new archbishop.
Folha: You are returning to Brazil at a moment in which the charismatic
movement is advancing in the Church, including Father Marcelo Rossi, who is
becoming a star of the media. How do you see this situation?
Dom Geraldo: I havenÆt yet seen the entirety of Father RossiÆs work. I
have seen some of his shows on Italian TV. Every week we have news about
Father Rossi. He is a very charismatic person. I have also read an
article by Brother Betto warning of the dangers of so much attention. All
who submit themselves to the media should be prepared for those who will
accept their message and those who will be adverse to it. When I return to
Brazil, I will be able to see everything of his work. I hope that he is
able to help his followers come to more profound understanding of the Gospel.
F: Pope John Paul II clearly denounced the attacks of the U.S. and Britain
against Iraq. Could this be a new, more political posture of the Church?
D.G.: Why do they not defend anyone dying in Africa? Why do they not send
planes to combat hunger? The Middle East has many economic interests.
There is oil there. The U.S. always thinks that the world should bend to
its interests. This is not to deny that Saddam Hussein is a tyrant. The
news that we get show that he is. But he is not the one who dies. ItÆs
the people, always the people, who pay. When did a war ever resolve
anything? War always leaves pain, suffering and open wounds. The pope is
absolutely correct to critique the attacks.
F: You will return, you will find Brazil in an economic crisis. Today
there was a huge drop in the stock market.
D.G.: ItÆs not only Brazil. Today, the whole world is involved in a game,
the perverse game of the world stock markets. The Third Word has become a
game piece in the hands of the largest economies. What is most serious is
that I do not see any of the large world powers in solidarity with those
who suffer most. Today, in rich countries, they prefer to throw away
excess production, and do not channel it to those who suffer from hunger.
It seems that the great powers really want famine victims in Africa to die.
F: IsnÆt this the face of the policies of economic globalization?
D.G.: We are living a sad end of the millennium. In a world more
globalized, with more individualism, more egoism. A difficult time in
which the globalization of human solidarity is urgent. Today, power is
with those with money and information, and this only serves to set back
human life. IÆm pulling for globalization of solidarity, for the end of
this savage capitalism we are living, with the poor being game pieces in
the hands of the large economic powers.
In other Church news, Dom Jose Antonio Aparecido Tosi Marques was
nominated as the new archbishop of Fortaleza, Ceara. The post was vacated
when Dom Claudio Hummes was transferred to Sao Paulo.
Source: Folha de Sao Paulo, 14 January, 1999
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NEWS FROM BRAZIL supplied by SEJUP (Servico Brasileiro de Justi a e Paz).
Number 334, January 22, 1999.
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Visit our home page: http://www.oneworld.org/sejup/
Our principal topics this week are:
ENVIRONMENT
- Greenpeace Ends Protest against Dow
HUMAN RIGHTS
- Update on Diniz Case
RACISM
- Survey Reveals Racism Not Discussed Much in Classroom
ECONOMICS
- FHC Assures That Inflation Will Not Return
ENVIRONMENT
- Greenpeace Ends Protest against Dow
The environmental group Greenpeace pulled out a group of four activists
who were occupying the pier used by Dow Chemical. The protesters chained
themselves to barrels of toxic substances which were allegedly being
released into the rivers of Guaruja, Sao Paulo. The protesters remained
there for 72 hours. Their objective was to force Dow to keep to its
promise that it would reduce the amount of toxins it dumps into rivers to
zero within ten years. The ten-year deadline expired, and the company
continues this practice, according to Greenpeace. Dow denied the charge.
The Greenpeace ship has left the pier and is heading south to Rio Grande
do Sul where it will stage more protests.
Source: Folha de Sao Paulo, 19 January 1999
HUMAN RIGHTS
- Update on Diniz Case
Raimundo Costa Freire, a Brazilian and one of the kidnappers of Abilio
Diniz, will request conditional release this week from the Ceara Department
of Justice. He arrived in the early morning of January 17th back to his
home state, escorted by four police officers. He was taken to a hospital
where a doctor declared that his health was good (Freire had just completed
a 46 day hunger strike two weeks ago. Interviews with him were forbidden,
but in a card he sent to the Folha de Sao Paulo, Freire wrote, ôMy struggle
for liberty will continue here in Ceara.ö Freire has already complete nine
years of a seventeen year sentence. In Brazil, persons can be up for
parole after minimally completing a third of their sentence.
In regard to the Chileans and Argentineans who are still being held, the
Brazilian Senate approved on Thursday the request to transfer the prisoners
to their respective countries.
Source: Folha de Sao Paulo, 18 & 22 January, 1999
RACISM
- Survey Reveals Racism Not Discussed Much in Classroom
Racial discrimination still is an issue not often discussed in the
classroom, says a survey of teachers in Sao Paulo. The study revealed that
only 17.5% of those teachers interviewed discussed issues of racism in
their classes. Although the majority believe that racism exists in
Brazilian society, 80% believe that the school is one place where it
doesnÆt exist. Irene de Souza, coordinator of the study, added ôTeachers
have a tendency to deal with the subject in an emotional manner, or they
prefer to not even touch a subject so delicate. There are few who are able
to deal with the topic in a rational manner.ö De Souza went on to say that
the schools are not helping students develop a critical consciousness in
regard to racial differences and social inequalities. Part of the
problem is with the teachers who are not prepared or trained to conduct
such classroom discussions. 60% of those interviewed said they would like
to receive more training in this area.
Source: Folha de Sao Paulo, 18 January, 1999
ECONOMICS
- FHC Assures That Inflation Will Not Return
President Fernando Henrique Cardoso tried to lay aside fears of the old
days of hyperinflation in the country. ôIf before we had our eyes fixed on
the dwindling reserves, and whether or not speculative capital would help
us our not, from here on we need to have our eyes fixed on doing what we
need to do to prevent prices from rising unnecessarily,ö said the
president. ôWe have no more excuses, and it does not help to put the blame
on the outside. Now itÆs within (the country). Now itÆs the Congress, the
federal government, the state governors. ItÆs our competency in
maintaining a line of austerity with hope and firmness.ö Despite FHCÆs
assurances, inflation has already begun in some stores, especially in the
area of imported goods. Who bought a Panasonic TV last Friday before the
devaluing of the Real paid R$1,768; on Saturday, the same TV was selling
for R$2,014. Even bread, the flour for which is mostly imported, is
expected to rise between 20-50%.
Source: Folha de Sao Paulo, 18, 19 & 20 January, 1999
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NEWS FROM BRAZIL supplied by SEJUP (Servico Brasileiro de Justi a e Paz).
Number 335, January 29, 1999.
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Visit our home page: http://www.oneworld.org/sejup/
Our principal topics this week are:
THE DROUGHT
- Governor Declares State of Emergency in Pernambuco
- Government Proposes Deal With Spain To Combat Drought
ECONOMICS
- Another Day of Devaluation for the Real.
- GM and Ford Layoff Workers
- Sao Paulo Has Record Unemployment for 1998
- Increase in prices already affecting various sectors
THE DROUGHT
- Governor Declares State of Emergency in Pernambuco
The water shortage crisis caused by the drought in the Northeast spurred
the governor of Pernambuco, Jarbas Vasconcelos, to declare a state of
emergency in the metropolitan area of Recife. This act, which should make
available federal funding for the state, enables the governor to bypass
several bureaucratic hurdles and accelerate such public works as drilling
for wells. The metropolitan area of Recife has had its biggest water
rationing in its history. Since January 21st, water is only available for
residents for 20 hours every five days. The Tapacura dam, responsible for
most of the water for the area, is currently only operating at 8.5% of its
capacity.
In the neighboring state of Paraiba, the governor announced that the state
is going to destroy eight clandestine dams along the Gramame and Mamuaba
rivers. These rivers supply the capital city Joao PessoaÆs water reserves.
For the first time in 30 years, that city also has begun water rationing.
Source: Folha de Sao Paulo, 27 January, 1999
- Government Proposes Deal With Spain To Combat Drought
The Brazilian government proposed a deal with Spain for a megaproject
aimed at alleviating drought conditions of the Northeast. The project is
estimated at $US600 million, with at least half of the costs going to
Spanish products and services. However, costs could run up to $US1.5
billion if one includes a plan to irrigate water from the San Francisco
River, a project in which Spain also is interested. The loan for the
project will be granted by Expansion Exterior, a Spanish development
company which makes loans to other countries to stimulate the purchases of
Spanish products, technology and services. The idea of the project is to
create centers of production in nine states of the Northeast. Each center
will have a cooperative for the producers of specific types of crops, like
cotton, fruit, and more expensive crops, like irrigated rice. Each center
will have infrastructures for health, education, security, and telephone
services. The project has yet to be approved by the Brazilian Senate.
Source: Folha de Sao Paulo, 25 January, 1999
ECONOMICS
- Another Day of Devaluation for the Real.
On Tuesday of this week, the Real, the Brazilian monetary unit, saw its
greatest drop in worth since the government liberated its exchange rate on
January 15th. In the morning, the dollar was worth $R1.98, but dropped to
$1.88 by the end of the day. That day also saw another $US549 million
leave the country. The president of the Central Bank, Francisco Lopes,
announced the possibility of having the return of inflated interest rates.
This is part of a strategy to control inflation--ôInflation is not going to
return to this country. We will not let it,ö said Lopes.
Source: Folha de Sao Paulo, 27 January, 1999
- GM and Ford Layoff Workers
General Motors is planning to layoff 850 workers and reduce the salaries
of its other 8,794 workers by 20% for five months. The company asserts the
layoffs and salary reductions are a result of the economic crisis and the
subsequent drop in sales. The GM plant, located in Sao Jose dos Campos,
Sao Paulo, has already dismissed 2,091 workers since September of last
year. Meanwhile, Ford Motor Company announced its layoff of 2,800 workers.
The president of the factory, Ivan Fonseca e Silva, met with the president
of the Factory Union, Luiz Marinho concerning the dismissals. The only
thing accomplished at the meeting was that Ford agreed to give more
severance benefits to those laid-off. The following day, workers formed
picket lines to protest against the layoffs. Now, Marinho is on his way to
Brasilia to talk with the president and the president of the Senate,
Antonio Carlos Magalhaes. He hopes to win government backing for a
proposal to preserve the jobs of the workers.
Source: Folha de Sao Paulo, 27 January, 1999
- Sao Paulo Has Record Unemployment for 1998
In 1998, unemployment in metropolitan Sao Paulo was the highest since
1985. It affected, on average, 18.3% of the Economically Active
Population. This percentage represents an average of 1,594,000 people,
219,000 more than in 1997. Industry closed 107,000 job openings and
business, 39,000. The average time spent looking for employment went from
28 weeks in 1997 to 36 weeks. Unemployment rose 35.1% among workers with a
less than college education. During FHCÆs government, the number of
umemployed in the region grew to 48.2%. This means that 495,000 more
people were without work.
Source: Folha de Sao Paulo, 28 January 1999
- Increase in prices already affecting various sectors
In two weeks of the realÆs devaluation, the increase in prices is already
affecting various sectors, from food to construction material. For
clothing, there was an average increase of 1.44%. Also there have
increase in the prices of other products, such as chicken (5.59%), pork
(4.33%) and furniture (5.64%). The Business Federation of the State of Sao
Paulo believes that the impact will be more obvious in February.
Source:: Folha de Sao Paulo, 28 January 1999
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