Nearshore Americas

Study Shows Brazil’s Investment in International Cooperation Projects Over $1.4 Billion

The Brazilian government invested over US$ 1.43 billion in international aid and cooperative projects between 2005 and 2009, as confirmed by the results of a survey conducted by Brazil’s Institute of Applied Economic Research (IPEA).  The study reveals that the value of these investments nearly doubled from US$ 158.0 million in 2005 to over US$ 362.0 million in 2009.

The majority of the dollars invested were allocated to international organizations and regional banks, which received 76.1 percent of the total investment; 14 percent was allocated to international humanitarian aid and projects to promote technological innovation; and 10 percent to scholarships.

Countries in Latin America and the Caribbean were the top recipients of the resources, receiving 76 percent of total humanitarian aid and 35 percent of the total funds invested to promote technological innovation. Notably, the results reveal that investment in international humanitarian aid and projects to promote technical innovation appreciated significantly, from US$ 17.29 million in 2005 to US$ 110.55 million in 2009.

The Brazilian government’s contribution to international organizations also appreciated during this time period, from nearly US$ 179.47 million to over US$ 296.13 million. International sources of financing for developing countries, including the Inter-American Development Bank, the World Bank and the African Development Bank received 37 percent of investments allocated to international organizations and regional banks.

In addition, more than US$ 257.24 of investment in international organizations was dedicated to the countries of the Southern Cone Market (MERCOSUL). The Brazilian government also contributes approximately 70 percent of the annual resources of its Structural Convergence Fund (FOCEM) to MERCOSUL (FOCEM was established in 2004 and aims to develop and promote the economic and trade leadership of MERCOSUL).

The IPEA survey also presents statistics on Brazilian government operations for peacekeeping, totaling over US$ 367.0 million from 2005 to 2009. The survey also details investment for refugee relief, which supports over 4,200 refugees from approximately 76 countries that currently live in Brazil.

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IPEA partnered with the Brazilian Ministry of Foreign Affairs Cooperation Agency (ABC), with the support of the staff to the President, to compile the survey results. The data was also compiled in conjunction with over 60 governmental agencies and entities linked directly to the federal government.

Tarun George

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