95
This has been verified with PNAFE in modernization of the state tax administrations, despite the delay in its execution, and in its main legacy, PROFISCO. Its influence is seen in projects like PNAGE and PROMOEX, which although they execute the Bank’s resources belatedly, are kept operational through the local counterpart.
96
Mainly with respect to: (i) less interference in execution from the federal level; (ii) coordination between participating subnational levels; and (iii) transformation of subnational governments into direct borrowers, which was previously the role of the ministries.
97
This was seen in projects like PROPREV, where the executing agency relied on the Bank’s experience with pension system reform, in PRODEV, where the expected results were inconsistent with the relatively low level of available resources, or in PNAGE, which had to be reformulated in order to be executed.
98
Prefect and/or national elections every two years (loans cannot be taken out or resources committed six months prior to the elections); the costs of learning with the new authorities; the system of transferring resources from a ministry to national subexecuting agencies with logistical redundancies, imposing transactional costs; the barriers of having to comply with both national and Bank procurement systems; and the excessive turnover of project personnel.
99
That possibility does not exist when the states and municípios take out loans directly from the Bank. However, in the event of noncompliance with the LRF, the federal government can set more stringent targets in the annual Fiscal Adjustment Plan.
100
Because that procedure is carried out after COFIEX approves the project design and concept in negotiating the operation, the operation might be significantly delayed or canceled, imposing large sunk costs on the Bank. Those problems have often been caused at the level of the subnational governments by misinformation and the lack of experience in external financing. Management has estimated that each project has had a cost of US$250,000, not including staff costs. PROFISCO and PROCIDADES are new modus operandi that do not get around that problem.
101
There are also studies that contributed to implementation of Ministry of Social Development’s social welfare policy, in particular, research on basic social welfare information at the municipal level (MUNIC) and studies to redefine the research and classification of beneficiary families of the program for the comprehensive integration of families (PAIF).
102
Strengthening of registration and planning systems and building of the operating capacities of the social affairs departments at the regional and municipal levels.
103
This was the federal government’s first initiative on the issue of racial inclusion in the country’s educational system.
104
The program made an important contribution to establishing a conceptual basis on exclusion, inclusion, and renewed ethnic and racial appreciation in middle and higher education.
105
Budget resources for the education sector quadrupled in the government’s last term in office.
106
The increase in social spending (mainly derived from expanded pension coverage, the increase in the minimum wage, two-thirds of which is indexed to retirement benefits, and sharp demographic pressures) was financed with an increase in the tax burden. On the side of spending efficiency, there were few gains. This is currently the main concern since further growth is not possible in view of tax pressures and the need to resolve tax distortions.