Annual World Bank Conference on Land and Poverty 2013
LANDOWNERSHIP AS A DETERMINAT OF POVERTY IN THE AMAZON REGION: A STUDY CASE BASED ON THE STATE OF ACRE
Paper prepared for presentation at the “ANNUAL WORLD BANK CONFERENCE ON LAND AND POVERTY” The World Bank - Washington DC, April 8-11, 2013
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LANDOWNERSHIP AS A DETERMINAT OF POVERTY IN THE AMAZON REGION: A STUDY CASE BASED ON THE STATE OF ACRE
REYDON, Bastiaan Philip1 MAIA, Alexandre Gori2 MACIEL, Raimundo Cláudio Gomes3 SOUZA, Gisele Elaine de Araújo Batista4
Abstract The policies for the Amazonian occupation and development implemented by the Brazilian Federal Government in the late 1960s, replaced the region specific development based on products extracted from the Rain Forest and by the large agriculture and cattle projects. Its main results were: disarticulation of forest products extraction, destruction of large amount natural forests and dislocation of the “people from the forests” to the outskirts of cities. To minimize such conflicts, during the 70s and 80s, the federal government created the colonization projects, PAD’s and PAE's. In the 90s as a result of the social conflicts the RESEX´s - protected areas for sustainable use were created. These different types of access to land implies in different land use forms, different levels of monetary gains and of wellbeing. This article based on data from rural households from three regions in the state of Acre, in the period 1996/1997 to 2006/2007 analyzes the different socioeconomic and environmental conditions, given the kinds of access to land and types of governance resources (land/environment). What can be generalized is that the level of guaranty associated to land ownership and organization of the farmers played an important role in their wealth situation. Key Words – land ownership, land governance, poverty, wealth, Amazon region, traditional populations.
1. INTRODUCTION The economic history of the formation of the Amazon, especially in Acre, is directly related to so-called rubber boom, which according Martinello (1985) "was undoubtedly [...] the socio-economic phenomenon that took place more expressive Amazon "(p.23), in the late nineteenth and early twentieth centuries. In its initial stage, the operation gomífera experienced intense expansion, in view of the growing demand of rubber in international trade, since this product had become a raw material for wide applications in industry, being, also an important component of automobile industry. This event led to a very large economic growth in the Amazon region (SILVA, 1990; Martinello, 1985). However, after the rubber growing the introduction in Malaysia rubber has been produced with better quality and lower cost than the native Hevea. Thus, from 1913, the Amazon rubber extraction plant lost its position in international trade, with its production surpassed by that obtained in the plantations of the East (Duarte, 1987; SILVA, 1990). 1
Economist (USP), Master in Agronomy (USP), Doctor in Economical Development (IE/UNICAMP), Powder- by the University of Wisconsin Madison, Free Teacher of the Institute of Economy of the State University of Campinas. Email:basrey@eco.unicamp.br
2 Statistical (UNICAMP), Master in Economical Development (IE/UNICAMP), Doctor in Applied Economy (IE/UNICAMP), Powder-doctorate in Latin-American Studies for the University of Texas attn Austin and in Geography (USP), Teacher Doutor of the Institute of Economy of the State University of Campinas. Email: gori@eco.unicamp.br
3 Economist (UFAC), Master in Economical Development (IE/UNICAMP), Doctor in Applied Economy (IE/UNICAMP), Free Teacher of the Department of Economy of the Federal University of Acre, Coordinator of the Project Economical Analysis of Basic Systems of the Rural Family Production in the State of Acre (ASPF)/UFAC. Email: rcgmaciel@bol.com.br
4 Economist (UFAC), Master in Rural Extension (UFV), Student of the Doctorate in Economical Development (IE/UNICAMP). Email: gigi_acre@yahoo.com.br
Only with the outbreak of World War II, in the period 1942/1945, that the production of native Amazon was contacted again, since the Asian rubber cultivation had been invaded by the Japanese, suddenly interrupting the supply of rubber to the United States that were forced to seek alternative sources of supply. However, the end of the Great War in 1945, the natural production was once again abandoned to their fate (Duarte, 1987). The period after the war until the end of the 60s of the twentieth century, the extractive economy faced one of its worst crises, reinforced by the gradual replacement of rubber imported by domestic plant and the national synthetic. (Rego, 2002). But it was with the installation of the Military Government in 1964, the national crop production suffered the hardest blow, because the economic policy set for the country not favored over the exploitation of rubber (SON COSTA, 1995). In the case of Amazon, the blow was even harder, because the policies of occupation and development, implemented by the Federal Government in the late 60s, relegated the specifics of a region with an economy rooted purely extractive base and encouraged the installation large agricultural projects, resulting in dislocation of the extraction plant rubber, the destruction of vast areas of forest and the expulsion of families of rubber tappers to the outskirts of cities, especially to Rio Branco, dilating pockets of poverty in the capital of Acre (SILVA , 1990). In this context, the land that once guaranteed the survival of the community extraction becomes the object of lust by big businessmen, squatters and speculators, going to be used primarily as a store of value. The socioeconomic and environmental impacts caused aroused great feeling of revolt among rubber workers who remained in the rubber, recognized as autonomous, resulting in the emergence of social conflicts between them and the ranchers (SILVA, 1990). To minimize such conflicts, from the 70s and 80s, the federal government created official colonization, such as the creation of Settlement Projects Addressed (DBP's), Agroextrativista Settlement Projects (PAE's) and in 1990 , regulated the establishment of protected areas for sustainable use, such as extractive reserves, which became for many, not only alternatives to mitigate the problem of land concentration, but also the rational exploitation of natural resources, and, therefore immediately linked to the recent discussion on sustainable development and referenced by many scholars as the new development paradigm for the Amazon region (Duarte, 1987; SOUZA, 2010). Although the institution of settlement projects and conservation units of sustainable use has minimized the problem of land in the Amazonian, numerous studies point to the difficulties of maintenance and social reproduction of families living there and thus to the viability of these socioeconomic and environmental arrangements for land access. These types of difficulties occurred in the past 15 years, in research conducted by the Project Economic Analysis of Production Systems Basic Rural Family in Acre (ASPF), coordinated by the Department of Economics, Federal University of Acre (UFAC). They showed not only the problem of economic feasibility of production units and therefore the ability to generate income for the families, but also the weaknesses of health conditions, access to education, access to professional knowledge, access working conditions of child development, housing conditions and environmental conditions (MACIEL, 2011). However, it is important to note that the rural Amazonian universe, particularly of Acre, involves very heterogeneous populations (tappers, settlers, riparian, etc..), With its specific productive, social, and cultural interaction with the environment, which depending on the type of access to land (ownership, agricultural settlements and extractive reserves) and the pattern of governance established (land and environmental), may translate into different situations of poverty and socioeconomic conditions. Thus, this study aims to identify and analyze the different socioeconomic and environmental conditions of rural households in the state of Acre, in the period 1996/1997 to 2006/2007, given the kinds of access to land and types of governance resources (land / environment)
2. DEVELOPMENT AND RURAL POVERTY Until the early '60s, there was no need to distinguish development of economic growth, since until then the developed nations were the same that had become rich through industrialization. The other countries were poor and underdeveloped, and in some of them industrialization was still nascent. However, the perception that the intense economic growth occurred during the 50s in many semi-industrialized countries (including Brazil), did not necessarily translate into increased access of the poor to material goods, but also in improving the levels of education and health, as occurred in developed countries entitled (Veiga, 2008). Allied to this, the oil crisis in the late 60's signaled the need to think about the limits and consequences of economic growth on the environment and quality of life (SOUZA, 2008). Over time, the conceptions of development have acquired various meanings. In the economic literature, it is clear that there are three basic concepts of what is developing. The first stream supports the idea that development is synonymous to economic growth, measured by traditional indicators such as Gross Domestic Product (GDP) per capita. The second thought is that the development is merely an illusion, a sort of myth or ideological manipulation. Finally, a third view asserts that economic growth is essential but not sufficient, since the development should be based on the qualitative aspect of the social point of view, without requiring exhausting performance, poor remuneration and performance of consumption patterns irresponsible (Furtado, 2000; SOUZA, 2008; VEIGA, 2008). However, it was with the publication of the Brundtland Report in 1987, which was made public the best known concept of sustainable development, which would soon become a reference worldwide (CAVALCANTE, 1993). In this, we define sustainable development as "that meets the needs of the present without compromising the ability of future generations to meet their own needs." (WCED, 1987 apud BUARQUE, 2002, p.59). We must point out the difficulty of interpreting the term sustainable development, which is a widely accepted term, but has not been exactly a unique significance as to direct the actions of change. As a normative concept, he came up with the name eco-development indicating a development that takes into account economic efficiency, ecological prudence and social justice (Daly, 1996; PALMER, 2001). However, a broader view and critique of the development was launched in 2000 by the Indian economist, Amartya Sen, in the work entitled "Development as Freedom", which sets the development "as a process of expanding the real freedoms that people enjoy "(Sen, 2000, p.17). This focus on human freedoms contrasts with the traditional view of development as a result of growth of Gross National Product (GNP), income growth, industrialization, technological advancement and modernization of a country, region or locality. Anyway, freedom depends on other determinants, such as social and economic arrangements (health, education) and civil rights (political participation, public inquiries) (Sen, 2000). For SEN (2000), the achievement of freedom requires that development removes major sources of un-freedom, such as: poverty, lack of political freedom, deprivation of basic civil rights, lack of economic opportunities, neglect of public services (education, health, sanitation, clean water, etc.)., hunger, malnutrition, unemployment, gender inequality, among other. In addition to these hardships, we can also mention the situation of landless individuals and may result in the loss of productive opportunities, economic, investment, access to credit, among others, and compromise the expansion of individual liberties (Deininger, 2003). In his work, Sen (2000, p.109), focuses especially on poverty, defined by him "as a deprivation of basic capabilities rather than merely as low income," since they may be influenced by other variables such as age, disability or illness which
may reduce the individual's potential to earn income. According to the author, income is important in the sense that it extends the individual capabilities, just as better education and health services can directly elevate the quality of life and increase the potential for a person earning income and thus get rid of poverty measured by income. In other words, poverty is a multidimensional phenomenon that goes far beyond a specific deficiency. (Buainain et al. 2010) Depending on the conceptualization of poverty, different methods for its measurement and analysis can be used. In the case of poverty related to income the next methods can be highlighted: as insufficient income, poverty and extreme poverty line, poverty defined by public policy, the minimum wage as a criterion, insufficient income and access to basic conditions life, regionalized consumption baskets, stated income and poverty. For the multidimensional approach, there are two main indexes: the Human Development Index (IDH) and the Human Poverty Index, both developed by the United Nations Program for Development (UNDP), incorporating the vision of basic capabilities, proposed by Amartya Sen (Buainain, 2010; Veiga, 2005). Even within the multidimensional approach, there is the Rural Family Development Index (IDF-R), developed by IPEA, from the Human Development Index (HDI) (Barros et al., 2006). Poverty and inequality in Brazil decreased considerably in recent years, especially since the 2000s, but even so, "Brazil still has established itself as one of the most unequal nations, with the largest number of the world's poor." (MAIA & Buainain, 2012). For Maia & Buainain (2012, p. 4), the main determinants of these changes include: "The expansion of the rural pension system from the '90s, which helped to eliminate many families out of poverty and to reduce the gap between the richest and poorest of Brazil (MAIA, 2010), the intensification of political public direct income transfer, which helped to ease the situation of vulnerability of poor households (Medeiros et al., 2007); important changes in structure and remuneration of labor market agricultural and non-agricultural (Gasques et al., 2010), besides the almost continuous appreciation of the minimum wage since 1994, the basis for payment of social security benefits and income of the poorest in the labor market.". According to the report published by the Economic Commission for Latin America and the Caribbean (ECLAC, 2010), in Brazil, in 2009, "25% of the population were in poverty and 7%, on condition of indigence," representing in absolute numbers, approximately 47.5 million and 13.3 million, respectively, in poverty and indigence. With respect to income concentration, the Human Development Report of the United Nations (UNDP, 2010) indicated that the Gini coefficient for income inequality in the country (0.55) "was less than the few countries in the world, all with low standards of human development, such as Bolivia, Botswana and Namibia." (MAIA & Buainain, 2012, p. 3). According to the analysis from the Institute of Applied Economic Research (IPEA), using micro data from PNAD/IBGE, in 2009, the Northern Region was the second poorest in the country, behind only to the Northeast, and the State of Acre ranked in 12th position in the national ranking and 3rd in the ranking of the North, ie 32.39% of the population is considered poor. Furthermore, 12.43% of Acre lived in extreme poverty. Among the main factors explaining poverty in Brazil are historical inequality in the distribution of income and wealth in the country and the lack of a comprehensive plan for land administration, which worsens increasingly the serious conflicts over land (MARTINS , 2002 and REYDON, 2011 ). For Kageyama and Hoffmann (2006), Brazilian poverty has a dual nature, ie, on one hand, is the result of underdevelopment and regional location, which imposes deprivations on the basic conditions of existence (electricity, piped water, health, education, etc.) depending on public and private investments to overcome them, on the other hand, poverty has roots in demographic characteristics and the limitations of human and financial capital of households that impair the ability to raise the family income, and they may be supplanted with improvements in primary education, access to the labor market or the social security programs. In the case of the Amazon region, in particular, the key poverty determinants are the lack of available resources,
mainly land and labor relations, with even the remaining of slave labor (MATTEI, 2012). Regarding the importance of land tenure Deininger (2003, p.17) made the following statement: "The land is a key asset for the rural and urban population. It provides a basis for economic activity and functioning of the market (eg, loans) and non-market institutions (eg, local governments and social networks) in many developing countries." Observing the Brazilian land issue, Reydon (2011) considers the high concentration of land ownership as the main reason of the great social and economic inequality in the country and a significant portion of its rural poverty, especially through social exclusion, given that the poorer individuals have no access to land. This high degree of concentration is expressed in indicators such as the Gini index of property, which in 2006 remained at a high level of 0.85. However, for Reydon (2011), the country's main Brazilian problem is the lack of concrete mechanisms regulating the ownership; use and occupation of rural and urban land. And this lack of regulation, effective and not rules, and stems is determined by the possibilities of speculating on land - ie, make money on the purchase, maintenance, conversion and subsequent resale of land in any of its forms. In the Amazon, the absence of regulation translates into problems take possession of lands, land speculation, high rates of deforestation, which value the property in the land market. Thus, the regulation that would be ideal in which society and governance have passed could define proper use of soil, either from the standpoint of production, whether for housing, while preserving the environment (Reydon, 2011)
3. MATERIAL AND MEHODS 3.1. AIM The aim of this study is to analyze: four Oriented Settlement Projects (Projetos de Assentamento Dirigidos, PAD’s), from a total of 5 PAD’s existing in Acre; four Settlement Projects (PA), from a total of 71; 1 Agroextractive Settlement Project (ASP), from a total of 11; 3 Extractive Reserves (RESEX), from a total of 5; and 2 areas of private ownership and of the RECA Project5, distributed between the regions of the Acre Valley (Vale do Acre) and Juruá Valley (Vale do Juruá) , in the State of Acre – Brazil. In order to simplify analysis, we are working with these two old regional division in Acre. Presently, Acre is divided in 5 areas of development: High Acre, Down Acre, Purus, Tarauacá / Envira and Juruá.
Source: ACRE, 2011. Figure 1 – Regions of Development, State of Acre
The survey was initially performed in the systems of agriculture, extraction and agroforestry in the period 1996/1997. Due to the success of the study in determining local public policies, such as the State Law Chico Mendes and the establishment of Agroforestry Poles in Acre, the survey was expanded to the Juruá Valley, being applied in its agricultural production systems in1999/2000 and in its extractive production system in 2000/2001. The research was reapplied in the respective regions of the Acre Valley in 2005/2006 and of the Juruá Valley in 2006/2007, in the same areas surveyed in the first phase (Table 1). . 5 RECA project is the common name attributed to the Association of Small Farmers and Forestry Workers of the Project of Economic Reforestation Project Joint Ventured and Compacted (RECA), located in the District of Nova Califórnia, 360 km from the city of Porto Velho - RO and 150 km from Rio Branco - AC. The Project was created in 1989 and consists of groups of farmers from southern Brazil, which by exchanging experiences with Amazonian rubber tappers established a new mode of production, an association of the use of forest and fruit species in the same space today widely known as agroforestry or SAF's. The central feature of this project is a strong social organization that allows producers' participation in decisions relating to all stages of the process of production, as well as in the destination of the processed products (palm, cupuaçu, among others). So far there is no regularization or titling of land in the RECA Projetct. (PROJETO QUEM FEZ BEM, S/D).
Table 1 – Areas of study and period of analysis Year Phase I Phase II 1996/1997 2005/2006 1999/2001* 2006/2007
Region Acre Valley Juruá Valley
* In 1999/2000 the research was applied in the agricultural system and in 2000/2001 in the extractive system.
3.2. Survey design The sample of Family Farms Units (UPF `s) surveyed in the state of Acre was defined in three stages: Stratification of the areas of each production system (extractive, agricultural and agroforestry) according to their levels of development (high, medium and low). The criteria to define the level of development was related to the volume of production, quality and ease of access, availability of infrastructure and technical assistance, and the degree of community organization; Random selection of half of the stratum in the area of study based on the representativeness of each stratum; Random selection of 10% of the production units within each stratum selected in the previous stage. Tables 2 and 3 describe the sample design in the regions Acre and Juruá Valleys.
Table 2 – Sample Design in the Acre Valley– Acre – Brazil System of Production
Local
PAD Peixoto Agriculture
Municipality Plácido de Castro
46
Senador Guiomard
45
Rio Branco
1
Acrelândia
13
Total
Area (ha)
Date of Creation
4,671
296,243.87 31/10/1977
105
Porto Acre
37
951
61,179.00 22/09/1980
PAD Boa Esperança
Sena Madureira
37
983
275,646.00 27/12/1976
179 10
6,605 96
24,348.93 23/12/1987
10
96
PAE Porto Dias
Acrelândia
Total PAE's
RESEX Chico Mendes
Xapuri
46
Assis Brasil
10
Brasiléia
7
Capixaba
5
Total RESEX Agroforestry
Families Settled
PAD Humaitá Total PAD's
Extractive
Sample Size
RECA Project ACRE VALLEY
1,495
970,570.00 12/03/1990
68 Porto Velho - RO*
30
300
287
8,496
21,414.00 1,649,401.80
Fonte: MDA/INCRA (2007). ZEE/AC (2006), * In the first period, region where the RECA project is located belonged to the State of Acre. Presently, it is within the geographical boundaries of the State of Rondônia. after decision of a litigation process.
Table 3 - Sample Design in the Juruá Valley – Acre – Brazil System of Production
Local
Municipality
PAD Santa Luiza
Cruzeiro do Sul
Total PAD's
41
Families Settled
Area (ha)
Date of Creation
821
57,219.67
11/07/1980
41
PA São Pedro
Rodrigues Alves
23
330
25,151.28
10/07/1980
PA Amônia
Marechal Thaumaturgo
12
213
26,000.00
19/04/1995
Feijó
11
235
5,762.29
04/09/1995
Tarauacá
11
310
27,749.47
20/07/1988
57
1,909
Agriculture PA Envira PA Novo Destino Total PA's
Cruzeiro do Sul Pentecostes Community RESEX Alto Juruá
Marechal Thaumaturgo
RESEX Rio Liberdade
Cruzeiro do Sul
Total RESEX BR 364 Community
12
Mâncio Lima
Total POSSE
Extractive
Sample Size
3
150
15
150
23
850
538,492.00
23/01/1990
9
177
325,602.00
17/02/2005
32
1,027
7
70
7
70
Feijó
Total POSSE JURUÁ VALLEY
152
5,946.00
23,030.00
3,156
Fonte: MDA/INCRA (2007); ZEE/AC (2006).
3.3. Methodology This study evaluates the economic conditions of the rural families in Acre based on the indicators developed by the Project of Economic Analysis of Systems of Basic Production of Rural Family in Acre (ASPF), sponsored by the Department of Economics at Federal University of Acre (MACIEL, 2011). Analyses evaluate of the inputs (costs) and outputs (economic outcomes) of Farms Family (FSU's), located in the the PAD's, EAP's, RESEX, Project RECA and areas of private ownership, considering a period of 12 months, this means, the agricultural year in the region. Overall, four periods were used for socio-economic analysis: two periods in Acre Valley (1996/1997 and 2005/2006) and two in the Juruá Valley (1999/2001 and 2006 / 2007). All monetary values were deflated to February 2013 based on the National Consumer Price Index (INPC). Three main groups of indicators were considered (ASPF, 2008; MACIEL, 2011): total production costs; outcome measures; and measures of economic efficiency.
Total Production Costs Total Costs (CT): CT
CF
CV
CFe CFc
Thus, CT can also be represented by:
CT CFe CFc CV
(a.1)
Considering tha CFe CV Ce
(a.1.1)
We have:
CT Ce CFc
(a.1.2)
Where CV = variable costs ; CFe = Specific Fixed Costes; CFc= Common Fixed Costs; Ce = Specific Costs.
Gross Results Gross Income (RB): RB = Qv.pp Where : Qv = units sold; pp = unit price. Total Gross Income (RBT): RBT = RB + RT + RA Where: RT = income from cash transfers; RA = wage outside the UPF. Line of Dependence of the Market (LDM): LDM = Vbcc + CF Where: Vbcc = value of goods purchased in the market to maintain the family; CF = value spent on replacement of fixed capital (machines, equipment, tools, improvements, among others). Thus, LDM is the amount spent by the family to maintain the existing means of production. Net Results Net Income (RL): RL = RB – DE Where: DE = actual expenses. Gross Family Income (MBF): MBF = RB – (CV – Cftf) Where: RB = gross income; Cftf = actual cost fo the family labor. Level of Life (NV): NV = (MBF + AC + Cjicc) – AA Where: Cjicc = interest rate; AC = Self-Consumption; AA= Annual Amortization. Measures of Efficienty IEE = RB/CT When IEE > 1, there is profit; when IEE < 1, there is lost; when IEE = 1, there is equilibrium between income and expenditures. MBF/RB – Percentage of the gross income that the production unit is able to convert in gross family income. A ratio exceeding 50% is considered favorable. MBF/Q/h/d – index of remuneration for the family labor. Interchange term (TI): TI = Vbcc/RB - index of the RB appropriated by the market.
In order to analyze poverty, this study defined groups of income based on the Brazilian minimum wage, presently at R $ 678.00 / month. UPF’s were classified in six groups: A) NV greater than 4 minimum wages; B) NV between 2 and 4 minimum wages; Ca) NV between 1 to 2 minimum wages; Cb) NV between ½ and 1 minimum wage; D) NV between ½ and ¼ minimum wages; E) NV lower than ¼ minimum wages.
4. RESULTS According to indicators presented in Table 4, UPF’s from the PAD’s and RECA Projects had the best economic results in the Acre Valley in the first period of analysis. In relation to the efficiency rate (IEE), the PAD’s had an index of 1.87 in the agricultural year 96/97, followed by RECA Project, with 1.85. In other words, these UPF’s presented average economics outcomes higher than their costs. However, results reveal that these projects had negative growth for the IEE (61.9% for PAD’s and 35.59% for RECA). This reduction in the production efficiency is related to the production costs, especially fixed costs. In the Project PAD's, fixed costs more than doubled and in the Project RECA it grew almost seven times more than the fixed costs, possibly due to high investment in machinery, equipment, work tools and building
improvements. Due to these higher fixed costs, the families’ gross income in the PAD's reduced 32.59%. Moreover, despite increasing fixed costs, average gross income in the RECA Project increased by 181.69%, specially due to productivity gains in the production of palm (pupunha) and seeds of palm, as well also to the growing demand for processed palm by the Association of Producers of the Project. These analyses are reinforced by the dynamics of the Gross Family Income (MBF), which measures the income available to purchase goods and services in the market (market expenditures) and for replacement of fixed capital. The MBF in the PAD’s reduced 33.34%, suggesting that the production gains (R$ 578.78 / month) became insufficient to cover the market expenditures (R$ 1,497.45 / month). As a result, the LDM increased by 123.97%. These results suggest that families with need to purchase personal goods, such as food and clothing, as well as production goods, such as machinery, equipment, tools and building improvements, probably lost heritage in the period. Moreover, the value of the MBF in the RECA Project increased 169.8%: from R$ 386.96 / month yo R$ 1,043.84 / month. This value is now very close to the needs for market consumption, which rose from R $ 526.84 / month in 96/97 to R $ 1,251.04 / month in 05/06. On the other hand, UPFs in the PAE and RESEX projects presented economic results lower than those of the PAD’s and RECA Projects, as a result of long distance from the market, isolation, low technological level, difficulties in the trade, among others. In the first period of analysis, UPFs in these extractive projects presented index of economic efficiency higher than 1 and, in the case of the RESEX project, a MBF high enough to maintain the preexistent production factors. However, the dynamics of these indicators highlight the economic efficiency reduced in both areas, as a result of increasing fixed costs. Besides income from production, income from pension and cash transfers programs played also an import role in the economic dynamics of these UPFs, increasing family income and allowing higher market expenditures. These sources of income increased substantially in the PAD’s and PAE projects, whereas income from wages reduced. Opposite trend were witnessed in the RESEX area, where income from pensions and cash transfers reduced and wages increased. Since cash transfers are conditional to the involvement of children in schools, this reduction can be due to difficulties witnessed in the operation of the schools in these areas, as well as school dropouts. In the RECA project both the income from labor and from social transfers decreased and the self-production became the main source of income. Results also highlight that the Level of Life (NV) reduced in the PAD’s, PAE and RESEX, whereas it increased in the RECA Project. In the former projects, the MBF increased tenuously, whereas self-consumption reduced substantially. Moreover, the dependence of cash transfers increased in the agriculture and agro-extractive settlements, as well as the dependence of external wages increased in the extractive areas. In the RECA Project, both MBF and self-consumption production increased expressively. Moreover, market expenditures increased slightly, supported by the self-production income, since income from social transfers reduced substantially in this area. Overall, it can be highlighted that both production and self-consumption contributed to increase the level of life for these agroforestry farmers. Besides the fact that families living in the PAE’s, RESEX and PAD’s experienced hard economic conditions in the period, their production is it economically viable, since the level of life attained in all these types of settlements outpaced the value of the minimum wage in Brazil. Results in Table 5 highlight that the UPFs in the PADs and the PAs Projects had the best economic performance in the period of 99/01, especially due to the results for the economic efficiency index and MBF. However, in 06/07 both settlements had negative results for economic efficiency, specially the UPFs at the PAD’s Project. The UPFs at the Extractive Reserves improved the economic efficiency, due to reduction in the fixed and variable costs. Now they present the second best economic performance, just surpassed by the PA’s Project.
It must also be highlighted that in 99/01 the amount of income from social programs in the PAD’s Project was substantial, almost in the same amount of the income from production. On the other hand, the income from production in the PA’s was fundamental in 99/01, due to the low level of wages and the absence of income from social programs in these areas. But the growth of income from social programs was substantially in the next period in both projects, although not enough to sustain the market expenses (see line of dependence of the market). Private ownerships had better economic results than RESEX in 99/01, especially due to external wages. But in the next period the economic performance of the UPFs at the RESEX improved substantially and that of the private ownerships became the worst among all the projects. This dynamics stresses the difficulties witnessed for those families with no property rights over their land, which have no resource to invest in their property and are not allowed to access diverse types of funding sources for small family farms in Brazil. Families ate the RESEX project have both property rights over their land and access to special programs oriented for small agriculture production, such as those oriented form manioc flour production, the main component of the income among the farmers at the Juruá Valley. The Level of Life also reduced for all types of settlements in the Juruá Valley. However, those families in the RESEX project had the best performance, especially due to the high contribution of self-consumption income, which represented 80% of the minimum wage value in Brazil. On the other hand, families in private ownerships had the worst performance, especially due to the huge reduction in the production for self-consumption. Table 6 presents a stratification of the families in the Acre Valley according to Levels of Life (NV). Six classes were defined based on proportions of the minimum wage in Brazil (R$ 678,00/month). Poor were considered those families with per capita income lower than ½ minimum wage (class D) and extreme poor those families with per capita income lower ¼ minimum wage (class E). First, results highlight an expressive increase in the number of poor (D) and extreme poor (E) in the Acre Valley. The poor are accumulated in higher share in the PAE’s project and the extreme poor in the PAD’s project. Those families in the class C are especially distributed among projects PAE’s and RESEX. Those families with per capita income higher than 4 minimum wages (A) or between 4 and 2 minimum wages (B) prevail in the RECA Project. The number of poor and extreme poor grew even hardly in the Juruá Valley. They are especially accumulated in the RESEX project and in Indian communities in private ownership. Families in the class D prevail in all types of settlements. There are few families in class A, in the PA’s and PAD’s project and families, families in class B are accumulated in the RESEX area.
Table 4 – Median Economic Performance according to type of settlement, Acre Valley, Acre – Brazil. (I summarize) Indicator RB MBF AC NV LDM IEE
Unit R$/month R$/month R$/month R$/month R$/month und,
96/97
ΔY/Y(%)*
05/06
PAD's
PAE
RESEX
1,155.22 868.30 806.13 1,768.00 668.59 1.87
318.68 354.97 221.11 320.30 754.33 1,080.56 935.53 1,414.36 334.47 308.94 1.25 1.35
RECA
PAD's
414.43 778.71 386.96 578.78 311.81 200.75 649.39 827.91 526.84 1,497.45 1.85 0.73
PAE
RESEX
408.73 460.67 332.06 394.80 299.97 363.60 733.06 790.67 816.66 1,058.64 0.85 0.58
RECA
PAD's
PAE
1,167.42 1,043.84 394.05 1,516.90 1,251.04 1.12
-32.59 -33.34 -75.10 -53.17 123.97 -61.09
28.26 50.18 -60.23 -21.64 144.16 -31.69
RESEX 29.78 23.26 -66.35 -44.10 242.67 -56.85
RECA 181.69 169.75 26.37 133.59 137.46 -39.59
Observation: *In relation to the agricultural year 1996/1997. RB - Gross Income; MBF - Gross Family Income; AC - Self-Consumption; NV - Level of Life; LDM - Line of Dependence of the Market; IEE - Index of Economical Efficiency.
Table 5 - Median Economic Performance according to type of settlement, Juruá Valley, Acre – Brazil. (I summarize) Indicator RB MBF AC NV LDM IEE
Unit R$/month R$/month R$/month R$/month R$/month und,
99/01 POSSE
PAD
469.86 530.45 296.45 386.64 567.31 553.93 1,118.25 1,197.03 594.10 692.66 0.83 1.15
ΔY/Y(%)*
06/07 PA 551.17 328.76 531.05 835.41 528.03 1.05
RESEX 319.89 220.94 549.72 848.73 533.64 0.53
POSSE
PAD
225.82 354.40 186.51 244.45 200.03 155.08 385.48 532.24 614.97 1,268.38 0.61 0.51
PA 406.47 304.99 155.96 479.04 941.03 0.63
RESEX POSSE 285.21 254.53 226.02 552.37 742.08 0.79
-51.94 -37.09 -64.74 -65.53 3.51 -26.40
PAD
PA
-33.19 -36.78 -72.00 -55.54 83.12 -55.23
-26.25 -7.23 -70.63 -42.66 78.22 -39.58
RESEX -10.84 15.20 -58.88 -34.92 39.06 47.04
Table 6 – Percentage of Families according to Level of Life (NV), Acre and Juruá Valleys (%). Class % at Acre Valley % at Juruá Valley 1996/1997 2005/2006 Y/Y 1999/2001 2006/2007 Y/Y A 25,00 9,41 -60,87 5,71 1,32 -3,71 B 26,81 17,77 -31,08 25,71 9,87 -15,85 C (a - high) 29,71 35,19 23,17 38,29 26,32 -11,97 C (b - low) 13,77 21,95 65,79 20,00 26,32 6,32 D 3,62 9,76 180,00 8,00 21,71 13,71 E 1,09 5,92 466,67 2,29 14,47 12,19 A – NV > 4 Minimum Wages (MW) B - 2 MW/month < NV < 4 MW/month; C (a – high ) - 1 MW/month < NV < 2 MW/month; C (b - baixo) - 1/2 MW/month < NV < 1 MW/month; D - 1/2 MW/month > NV > 1/4 MW/month; E - NV < 1/4 MW/month.
Table 7 – Percentage of families according to type of settlement and Level of Life (NV), Acre and Juruá Valleys (%). % at Acre Valley % at Juruá Valley Difference 1996/1997 2005/2006 1999/2001 2006/2007 Acre Valley Juruá Valley
Class PAD
A B C (a) C (b) D E
35 27 26 8 2 2
PAE
Reca
0 9 73 9 9 0
3 10 31 41 14 0
RESEX
PAD
15 37 31 16 1 0
PAE
11 13 38 21 11 7
10 10 40 20 20 0
A – NV > 4 Minimum Wages (MW) B - 2 MW/month < NV < 4 MW/month; C (a – high ) - 1 MW/month < NV < 2 MW/month; C (b - baixo) - 1/2 MW/month < NV < 1 MW/month; D - 1/2 MW/month > NV > 1/4 MW/month; E - NV < 1/4 MW/month.
Reca
20 40 20 10 7 3
RESEX
PA
1 2 21 23 34 45 31 24 7 6 6 0
PAD
7 36 33 14 7 2
POSSE
13 31 26 13 10 8
RESEX
3 13 47 28 9 0
PA
2 9 30 23 18 19
PAD
2 12 17 32 27 10
POSSE
0 5 27 27 18 23
RESEX
0 13 31 25 25 6
PAD
-24 -13 12 12 8 5
PAE
10 1 -33 11 11 0
Reca
17 30 -11 -31 -7 3
RESEX
PA
-13 0 -16 -14 3 -15 15 -1 6 11 6 19
PAD
-5 -24 -16 17 20 7
POSSE
-13 -26 2 14 8 15
RESEX
-3 0 -16 -3 16 6
5. FINAL CONSIDERATIONS The economic analysis of the results obtained in terms of access to land surveyed in the Vale do Acre and Juruá Valley demonstrated how living conditions have changed in these regions, in a relatively short space of time. In general, it was found that the rents are low in both regions, as well as a significant worsening in the economic situation of families of farmers and / or extractive residents in these localities, clearly visible in the analysis of the evolution of the Index of Economic Efficiency and above , the monetary value of the standard of living. However, a more accurate indicator of the latter reveals that the deterioration of the living conditions of the families was more severe in Juruá. The decline in the standard of living of rural families of Acre, is explained on the one hand, the fall in rubber prices and other extractive products, except the Brazil nut and agricultural products, as a result of market disruption. On the other hand, justified by the absence of technical progress, resulting in high production costs. It is noteworthy that in the Valley of Acre economic performance was worse not only because the valuation of the Brazil nut, made possible by strengthening the institutional arrangements surrounding this chain. The economic disadvantage of Juruá Valley over the Valley of Acre is delineated a priori by distance and isolation from the city of Cruzeiro do Sul - the main commercial center of Juruá - for capital Rio Branco, constituting a major obstacle to commercialization . Furthermore, although the last ten years the region has received greater incentives Juruá Public Policy, compared to previous periods, yet they still are to a lesser extent than those for the Valley of Acre. Moreover, such initiatives have not yet been converted into concrete results to improve life for people in traditional Juruá. In the productive aspect, that region has long been the most responsible for the production of rubber in the state of Acre, however, with falling prices and lack of demand, tappers Juruá practically gave up the marketing of the product. Alternatively, families were focused on the production of cassava flour, becoming therefore the main economic activity of the region. However, with time the product began to face problems of decreased productivity due to depletion of soil and therefore problems increase production costs, which could not be compensated for even with an increase in product price. In fact, at the end of the production process, the family farmer has little if appropriate profit margins, since they, for the most part are channeled to the middlemen, thus indicating a serious problem in forming the final price of flour. Finally, it is essential to highlight the most important aspects of the evolution of the economic performance of the families in accordance with the terms of access to land, searches for the Vale do Acre and Juruá Valley. Observing the standard of living indicator, which reflects the total amount appropriated by the farmer and / or extraction, it was found in the Valley of Acre that the Project was the only RECA where families have achieved an increase in their standard of living, having income from production and consumption as determinants of this central result. Conversely, respectively in the PAD's, RESEX and PAE was a drastic reduction in the standard of living of families, led by a sharp reduction in consumption, revealing a greater dependence on the market for the purchase of consumer goods and therefore indicating the greatest indebtedness of these families, since income growth of production proved disproportionate to rising production costs, especially in RESEX and PAE. However, Juruá Valley was reduced even more drastically in the standard of living of families of all types of access to land, both by the large reduction in consumption as the reduction in income from production. Families identified with better off were those located in Extractive Reserves, with the smallest reduction in standard of living, then to the PAD's, PA's and, finally, those living in areas of ownership, which were reduced over 50 % in income from production, consumption and therefore the standard of living, revealing the difficulties of local ownership without defined to provide
adequate levels of income and even food security for households installed there.
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BUARQUE, Sérgio C.. Construindo o desenvolvimento local sustentável. Metodologia de planejamento. Rio de Janeiro: Garamond, 2002, 177p. CAVALCANTE, Ormifran Pessoa. A polêmica em torno do conceito de Reserva Extrativista enquanto atividade econômica sustentável. Rio Branco: UFAC/DE, 1993. 61f. Monografia (Graduação em Economia) – Departamento de Economia, Universidade Federal do Acre, 1993. COSTA FILHO, Orlando Sabino da. Reserva Extrativista: desenvolvimento sustentável e qualidade de vida. 1995. 156p. Dissertação (Mestrado em Ciências Econômicas) – Universidade Federal de Minas Gerais (UFMG), Belo Horizonte,1995. DALY, Herman E. Beyond Growth: the economics of sustainable development. Boston: Beacon Press, 1996. 254 p. DEININGER, Klaus. Land policies for growth and poverty reduction. A World Bank Policy Research Report. Washington: World Bank e Oxford University Press, 2003. p. 17-46.
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MARTINELLO, Pedro. A “batalha da borracha” na segunda guerra mundial e suas conseqüências para o vale amazônico. 1985. 368p. Tese (Doutorado em História Econômica) – USP, São Paulo, 1985. MARTINS, Clítia Helena Backx. Pobreza, meio ambiente e qualidade de vida: indicadores para o desenvolvimento humano sustentável. Indic. Econ. FEE, Porto Alegre, v. 30, n.3, p.171-188. dez/2002. MATTEI, Lauro. Pobreza rural: um fenômeno histórico-estrutural relacionado à estrutura agrária do país. OPPA/CPDA/UFRRJ: Rio de Janeiro, n.41, jan. 2012, p. 1-5.
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RÊGO, José Fernandes do. Estado e Políticas Públicas: a recuperação econômica da Amazônia durante o regime militar. São Luís: EDUFMA, Rio Branco: UFAC, 2002. 420 p. REYDON, Bastiaan P. A questão agrária brasileira requer solução no século XXI. In: TEIXEIRA, E. C. (ed.). As questões agrárias e da infra-estrutura de transporte para o agronegócio. Viçosa-MG: UFV/DER, 2011. p.3-48. REYDON, Bastiaan P. O desmatamento da floresta amazônica: causas e soluções. In: GRAMKOW, C. L. & PRADO, P. G. (coord.) Política Ambiental. Economia Verde – Desafios e oportunidades. Conservação Internacional: Belo Horizonte, n. 8, jun. 2011. p. 143-155.
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SILVA, Adalberto Ferreira da. Raízes da ocupação recente das terras do acre: movimento de capitais, especulação fundiária e disputa pela terra. Rio Branco: Casa da Amazônia, 1990, 79 p. Dissertação (Mestrado em Economia Regional) – CEDEPLAR/Universidade Federal de Minas Gerais (UFMG), Belo Horizonte. 1990. SOUZA, Gisele Elaine de Araújo Batista. Reserva Extrativista Chico Mendes - AC: os desafios de gestão (com)partilhada. Viçosa: DER/UFV, 2010. 218p. (Dissertação de mestrado em Extensão Rural). SOUZA, Nali de Jesus de. Desenvolvimento Econômico. 5. ed. São Paulo: Atlas, 2008. VEIGA, José Eli. Desenvolvimento Sustentável - O desafio do século XXI. Rio de Janeiro: Garamond, 2008. 3ª ed.
APÊNDICE
I – Median Economic Performance according to type of settlement, Acre Valley, Acre – Brazil. (Table completes) Indicator RB RA RT RBT RL MBF CF CV VBCC LDM AC NV IEE MBF/RB MBF/Qh/d TI
Unit
96/97 PAD's
PAE
RESEX
R$/month 1,155.22 318.68 354.97 R$/month 92.14 43.59 33.68 R$/month 285.32 0.00 545.28 R$/month 1,272.68 318.68 364.02 R$/month 821.11 167.33 249.58 R$/month 868.30 221.11 320.30 R$/month 256.96 83.59 123.62 R$/month 225.81 118.61 101.05 R$/month 369.64 231.58 147.70 R$/month 668.59 334.47 308.94 R$/month 806.13 754.33 1,080.56 R$/month 1,768.00 935.53 1,414.36 und, 1.87 1.25 1.35 und, 0.89 0.83 0.92 R$/day 83.72 8.93 15.99 und, 0.34 1.01 0.47
Y/Y(%)*
05/06 RECA
PAD's
414.43 778.71 285.32 56.23 557.96 474.22 506.25 1,074.89 323.33 342.94 386.96 578.78 90.21 645.70 111.77 257.91 373.66 809.94 526.84 1,497.45 311.81 200.75 649.39 827.91 1.85 0.73 0.93 0.85 44.11 66.41 0.72 1.02
PAE
RESEX
RECA
408.73 460.67 1,167.42 0.00 56.45 27.10 128.72 128.72 97.78 408.73 595.03 1,202.08 173.06 205.25 887.48 332.06 394.80 1,043.84 262.82 417.36 632.00 202.40 130.23 294.59 518.78 549.69 690.31 816.66 1,058.64 1,251.04 299.97 363.60 394.05 733.06 790.67 1,516.90 0.85 0.58 1.12 0.87 0.93 0.90 23.23 42.70 74.06 1.55 1.42 0.50
PAD's
PAE
-32.59 28.26 -38.97 -100.00 66.20 -15.54 28.26 -58.23 3.42 -33.34 50.18 151.28 214.42 14.22 70.64 119.12 124.02 123.97 144.16 -75.10 -60.23 -53.17 -21.64 -61.09 -31.69 -3.71 4.95 -20.68 160.12 203.56 54.07
RESEX RECA 29.78 67.60 -76.39 63.46 -17.76 23.26 237.61 28.88 272.17 242.67 -66.35 -44.10 -56.85 1.49 167.06 198.80
181.69 -90.50 -82.48 137.45 174.49 169.75 600.56 163.57 84.74 137.46 26.37 133.59 -39.59 -3.21 67.91 -30.55
Observation: In relation to the agricultural year 1996/1997. RB - Gross Income; RA - wage outside the UPF; RT - income from cash transfers; RBT - Total Gross Income; RL - Net Income; MBF - Gross Family Income; CF - Fixed Costs; CV - variable costs; Vbcc - value of goods purchased in the market to maintain the family; LDM - Line of Dependence of the Market; AC - Self-Consumption; NV - Level of Life; IEE - Index of Economical Efficiency; MBF/Q/h/d – index of remuneration for the family labor; TI - Interchange term.
II - Median Economic Performance according to type of settlement, Juruá Valley, Acre – Brazil. (Table completes) 99/01 Indicator
Unit POSSE
RB RA RT RBT RL MBF CF CV VBCC LDM AC NV IEE MBF/RB MBF/Qh/d TI
Y/Y (%)
06/07
R$/month R$/month R$/month R$/month R$/month R$/month R$/month R$/month R$/month R$/month R$/month R$/month und, und, R$/day und,
PAD
469.86 530.45 214.25 61.75 306.20 526.10 574.93 696.37 220.17 300.83 296.45 386.64 284.97 307.35 200.41 191.64 292.21 286.10 594.10 692.66 567.31 553.93 1,118.25 1,197.03 0.83 1.15 0.78 0.73 14.91 20.98 0,68 0,55
PA 551.17 55.79 0.00 574.41 269.75 328.76 254.00 162.73 249.80 528.03 531.05 835.41 1.05 0.79 25.22 0,54
RESEX 319.89 72.90 482.06 415.71 172.56 220.94 340.19 132.73 169.50 533.64 549.72 848.73 0.53 0.72 16.60 0,59
POSSE
PAD
225.82 354.40 54.20 56.45 365.82 519.94 410.99 740.68 70.95 147.34 186.51 244.45 231.46 592.67 133.31 187.29 614.97 705.36 614.97 1,268.38 200.03 155.08 385.48 532.24 0.61 0.51 0.82 0.82 16.59 25.48 2,80 1,85
PA 406.47 36.70 250.66 670.68 180.06 304.99 456.23 142.96 506.67 941.03 155.96 479.04 0.63 0.86 21.69 1,38
RESEX POSSE 285.21 62.10 128.72 748.58 124.28 254.53 229.22 107.13 426.22 742.08 226.02 552.37 0.79 0.90 25.83 1,22
-51.94 -74.70 19.47 -28.52 -67.77 -37.09 -18.78 -33.48 110.46 3.51 -64.74 -65.53 -26.40 5.73 11.29 309,86
PAD -33.19 -8.57 -1.17 6.36 -51.02 -36.78 92.83 -2.27 146.55 83.12 -72.00 -55.54 -55.23 13.37 21.47 238,64
PA -26.25 -34.23 100.00 16.76 -33.25 -7.23 79.62 -12.15 102.83 78.22 -70.63 -42.66 -39.58 8.44 -14.00 156,41
RESEX -10.84 -14.82 -73.30 80.07 -27.98 15.20 -32.62 -19.29 151.47 39.06 -58.88 -34.92 47.04 24.59 55.61 104,92
III – Evolution of costs and prices of the main products traded, the Acre Valley, 1996/1997 and 2005/2006, Acre - Brazil Unit Cost Line Exploration Pupunha Palmito Coffee (C) Banana Seed Pupunha Creating Bois Cupuacu Chestnut Rubber Bean Rice (C) Corn (C) Manioc - manioc meal (S) Rice (S) Corn (S)
Price (R$)
Unit Rod Kg Bunch kg un. kg Tin (11 kg) Kg Kg Kg Kg Kg Kg Kg
96/97
05/06
0.80 0.80 0.36 3.99 279.79 0.21 5.35 2.79 1.67 1.88 0.35 2.24 1.35 0.61
0.46 0.35 1.25 4.26 328.82 0.64 9.47 2.80 2.54 1.29 0.60 2.24 1.36 0.95
ΔY/Y(%)* -0.43 -0.56 2.50 0.07 0.18 2.10 0.77 0.00 0.52 -0.31 0.70 0.00 0.01 0.56
96/97
05/06
1.43 1.94 3.83 18.33 499.04 1.81 6.05 1.18 1.36 1.02 0.35 1.08 1.02 0.35
1.10 1.36 3.29 14.27 384.13 0.44 10.98 2.30 1.32 1.10 0.44 0.88 1.10 0.44
ΔY/Y(%)* -23.03% -29.67% -14.02% -22.17% -23.03% -75.78% 81.42% 95.09% -3.50% 7.76% 26.78% -18.67% 7.76% 26.78%
Note: * Relative to the period 1996/1997. C - consortium, S - single.
IV - Evolution of costs and prices of key marketed products, Juruá Valley, 1999/2001 and 2006/2007, Acre - Brazil Unit Cost Line Exploration
Unit
Manioc - manioc meal (S) Rice (S) Rice (C) Creating Bois
Kg kg kg un.
99/01
06/07
0.57 2.36 1.13 729.69
1.50 0.73 0.82 545.12
Price (R$) ΔY/Y(%)* 161.56% -69.08% -27.11% -25.29%
99/01 0.63 2.58 2.58 527.00
06/07 0.97 0.48 0.48 424.35
ΔY/Y(%)* 53.99% -81.40% -81.40% -19.48%