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Brazilian Biofuels Programmes from the WEL Nexus Perspective

Brazilian Biofuels Programmes from the WEL Nexus Perspective

Brazilian Biofuels Programmes from the WEL Nexus Perspective

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Brazil’s biofuel programmes viewed <strong>from</strong> <strong>the</strong> <strong>WEL</strong>-nexus perspectiveThe development of Proalcool followed a trajectory similar to that of o<strong>the</strong>r large-scale, capitalintensiveagricultural efforts, and <strong>Brazilian</strong> policy-makers believed it was failing to reducepoverty and social inequities, which were among <strong>the</strong> explicit objectives of <strong>the</strong> programme (Hallet al., 2009). This perception is largely because large economic groups dominate <strong>the</strong>production of biofuels in Brazil and <strong>the</strong> small distilleries in <strong>the</strong> case of ethanol, and <strong>the</strong>involvement of family farmers in <strong>the</strong> case of bio-diesel is very small (Santos and Rathmann,2009).Although one might have expected PNPB to have explicit environmental goals, <strong>the</strong> Decree thatimplemented PNPB is based on <strong>the</strong> viability of <strong>the</strong> production and use of bio-diesel, but doesnot mention sustainability concerns. Also, in defining vegetable oil as <strong>the</strong> primary material forbio-diesel production, <strong>the</strong> Decree demonstrates a proclivity towards Brazil’s agriculturalexpansion (Garcez and Vianna, 2009).The comparison between <strong>the</strong> two programmes suggests that, despite <strong>the</strong> differences in <strong>the</strong>irchange models, action models and maturity of <strong>the</strong> programmes, <strong>the</strong> outcomes to date are verysimilar. These reflect <strong>the</strong> general type of results observed in developing countries, with astrong focus on large-scale, capital-intensive agricultural sectors, which affects to some extent<strong>the</strong> ISG principles.Besides trespass of ISG principles, <strong>the</strong> usual barriers for economic development in mostdeveloping countries, such as macroeconomic deficiencies, regulatory problems anduncertainty, precarious infrastructure, poor public services, informality, among o<strong>the</strong>rs, <strong>the</strong>reare five factors to be taken into account in feasibility evaluations for such agricultural systems(GTZ, 2005):1 Land with soil and climate suitable for <strong>the</strong> crop to be planted2 Enough capital, even subsidised, in <strong>the</strong> first phase3 Suitable technology4 Management knowledge in order to turn productive resources into economicallysustainable activities5 Inclusion in a productive chain of agribusiness (value-systems investments)40

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