Bolsa Familia

Oil and Education in Brazil

November 9, 2011

by Eduardo J. Gomez

The author also wrote “Dilma’s Education Dilemma” in the Fall 2011 issue of AQ.

When Dilma Rousseff assumed the Brazilian presidency in January 2011, she inherited perhaps Brazil’s most challenging socioeconomic issue to date: improving its education system. In recent years, Brazil has registered low rankings in international standardized assessments of topics like writing, reading comprehension and math. When coupled with other longstanding issues like inadequate federal funding as well as insufficient human and infrastructural resources, Brazil’s system is simply not able to keep up with the economy’s growing demands—especially in the high-tech sector.

Nevertheless, my article in the Fall 2011 issue of Americas Quarterly explains the delicacy of improving system: while increasing federal spending for education, Dilma must find ways to prune the budget, reduce fiscal deficits and keep foreign investors happy. By following in the footsteps of her predecessor, Luiz Inácio Lula da Silva (Lula), Dilma will turn to state-owned resources like oil to fund education policies—and maintain or increase the level of foreign investment.

Federal efforts to address the decline in educational performance began under Lula. While education reform was also important under the Cardoso administration (1994-2002), the Lula administration sought to expand and use its oil resources in order to fund education policy rather Cardoso’s approach which had been to pursue privatization and decentralization. In response to the discovery of new Pré-Sal (pre-salt) oil reserves off of the coast of Rio de Janeiro in 2007, before two years had passed Lula created a new federal agency for the national reserves and a “social fund” within the agency. This social fund uses approximately half of Pré-Sal’s earnings to fund education policy, signaling a clear break from Cardoso’s anti-statist approach to education policy—that is, to strategically expand and use state-owned resources in order to enhance the quality of education.

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Tags: Education, oil, Dilma Rousseff, Bolsa Familia