C·I ~; . / ' ClRCULATtNG COPY ,"- ,/' ~lt~~s~6rsr(EILE _ COpy -: AfjTE~~Jtt~~rMY fUND " DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use \::~ CIRCULATfNG COpy " TO BE RETURNED TO REPORTS DESK Report No. 38-BR ~--- V.:'i o THE ECONOMIC AND SOCIAL DEVELOPMENT OF BRAZIL (In eight volumes) VOLUME V EMPLOYMENT AND EDUCATION IN THE NORTHEAST March 12, 1973 rumerica and the Caribbean Department This report was prepared for official use only by the Bank Group. It may not be publiahed, quoted or cited without Bank Group authorization. The Bank Group does not a~ept responsibility for the accuracy or completeness of the report. , CURRENCY EQUIVALENT Carrency Unit: Cruzeiro. (Prior to May I" 1970, the currency unit was called the "Cruzeiro Novo" or 'lNew Cruzeiro", the adjective was dropped in May 1970, without any change involved.) Exchange Rates Ytective December 1$. 1972 . , Selling Rate I US$l.oo • Cr$6,21, Buying Ratel US$1.00 • Cr$6,16, Average Exchange Rates US$l.OO • Cr$4.S94 Cr$S.28, U5$l million • Cr$4,S94,ooo Cr$S,28S,ooo Cr$! million • U5$217,67S US$l89,21S .' This report is based on the findings of a mission ot: in February to "'.arch, 1972 to Brazil composed Francesco Abbate (Chief of Mission) Joseph Brooks (Fiscal Economist) Marc Blanc (Transport EconoJllist) Daniel Adams (Education Specialist) . Ian Hums (Population and Labor Force Specialist) Stanis Penag1des (Agricultural Economist) Louis Hermann (ConsUltant - Agricultural Economist) Samuel Yoha.i (Social Sectors) Maria Carole Maohado (Secretary) . " TABLE OF CONTENTS ~.NNEX I - POPULATION, EMPLOYMENT AND INCOMES ANNEX II - THE EDUCATION AND TRAINING SYSTEM CASE STUDY I - PERNAMBUCO CASE STUDY II - CEARA ANNEX I - POPULATION. EMPLOYMENT AND INCOMES .. TABLE OF CONTENTS Page No. ANN;';;r I - POPULATION. H::MPLOYMENT AND INCOM.;~S SUMMARY AND CONCLUSIONS ••••••••••••••••••••••••••••••••• i-iii I. POPULATION AND MIGRATION .. .......................................... . 1 Fertility Declines ••.•••.•••..••.••••.•••••.•••••••.•••. 1 Population Policy ••••..•.••••.••••..•.•.••••..•.•••••..• 2 Mi~ation from the Northeast •••••••••••••••••••••••••••• 4 Internal Rural-Urban Migration •••••••••••••••••••••••••• 5 The Imoact of Migration •••••.••••••••••••••••••.•••••••• 6 II. E}fl'L01'MENT. UNEMPLOYMENT AND UNDEREMPLOYMENT •••••••••••• 8 UnemploJ71Tl9nt •••••••••••••••••••••••••••••••••••••••••••• 8 Underemployment ......................................................... .. 10 The Structure and Quality of Employment ••••••••••••••••• 11 Employment Growth and Structural Change ••••••••••••••••• 12 The Impact of Growth on Incomes ••••••••••••••••••••••••• 13 Employment in Manufacturing Industry •••••.•••.•..••••••• 15 Employment-Output Elasticities ............................................. IS Improving Employment Creation .................................................. 17 Employment-Output Trade-Offs ..................................................... 19 III. INCOME DISTRIBUTION .................................... 22 Regional Income Growth •.••..•.•...••••..•.••.•••••..••.• 22 IncoJI1€ Distribution \1;i thin the Northeast •••••••••••••••• 22 Changes in Enuality 1960-70 ••••••••••••••••••••••••••••• 23 Absolute Income ChRnges ••.•••••.•••••••••••••••.•.•••••• 24 Elements in the Changing Distribution ••••••••••••••••••• 24 Policy Conclusions ••••••••••••••••••••••••••••••.••••••• 26 IV. EMPLOYME~IT AND INCOME POLICIES .......................... 27 Wages Policy ••••..••..•••..••.••..•.••.••.••....•.•••.•• 27 Minimum Wage Differentials •••••••••••••••••••••••••••••• 28 Migration Policy •.••.••.••.••.••.••••••••••••••••••••••. 28 Education and the Literacy Program •••••••••••••••••••••• 29 The Labor ~rket •••••••••••••••••••••••••••••••••••••••• 29 Development Strategy and Employment ••••••••••••••••••••• 30 Shadow Wages in the Northeast ••••••••••••••••••••••••••• 30 Research and Data Collection •••••••••••••••••••••••••••• 31 - 2 - Page No. v. FUTURE PROSPECTS • •••••••••••••••••••••••••••••••••••• 0 ••• 31 EmploJ1lllent Growth ••••••••••••••.••••••••.••.•••••••••••.• 31 Structural Changes and Incomes ••••••••••••••••••••••••••• 32 STATISTICAL APPENDIX •••••••••••••••••••••••••••••••••• a 0 • 34 A Note on Employment Statistics ••••••••••••••••• oe....... 35 A Summary of Findings from Other Studies of Income Distribution ••••••••••.••••••••••••••••••. e............ 36 Data. Limitations, Technica.l Problems and their Implications 39 Statistical Tables SUMWL:l.Y AND CON CLUS ION S ~. Conditions exhibited in the Northeast in recent years give a limit of progress which suggests that an era of transformation may, all else equal, be on the way. Progress, however, will inevitably be slow. Although employment growth rates recorded in recent years have increased compared to earlier periods, the impact of these increases on incomes is difficul t to identify. Since unorganized urban employment has grown about as rapidly as organized employment, the transformation of labor out of agri- culture has not automatically implied much higher incomes. Income growth in agriculture, moreover, appears to have been relatively stagnant compared to average income growth in the urban sectors, a fact which has implied some slight deterioration of income inequality. Although the region's over- all production and employment growth have increased, it is nevertheless still or~y the continuing heavy outmigration of people which gives the region a slight lead in income growth, in per capita terms over Brazil as a whole. Some of the major findings, conclusions and recommendations on these issues are the following: 2. Population and Migration. A rate of natural increase of 3.0 percent for the region has been reduced by the outmigration to give a total population growth of about 2.$ percent per annum through the sixties. Although this is slower than for Brazil it implies a relatively greater pressure on resources on account of the much lower income levels in the Northeast. 3. Fertility declines appear to have begun in ~he region (the crude birth rate fell from 47 to 42 per 1000, 1960-70), although these are still less than those recorded by Brazil. Recent changes in official attitudes to family planrling are discernible and this may signal a greater scope for this type of activity in the future. With infant mortality rates still in the range of 150/1000 and overall mortality rates still relatively high, the need for fertility declines is greater in tfie Northeast if population growth is not to exceed the national average. 4. The fact that 1.7 million people migrated out of the Northeast during the sixties implies that both absolutely and in terms of a migration rate (6.0 percent in the sixties, 4.6 percent in the fifties) outmigration has increased in recent years. This is surprising in a decade so untroubled by drought. The drought of 1970, however, could have been responsible for part of the increase. 5. ent and Underem 10 ent. The 1970 census records ur an sector emp oymen ~creases 0 percent per annum in the inter-cens8~ period as against a rate less than 3.0 percent for the pre- vious decade. Industrial growth was largely responsible for this increase although the services sector still accounted for about two-thirds of all the new employment created through the sixties. 6. Alongside this growth in employment, there have been slight declines in both unemployment and underemployment recorded by the PNAD surveys. In 1970 the latter show unemployment at 2.0 percent and under- employment overall at about 21 percent, having declined respectively from ii 2.3 percent and 25 percent in 1968. Too great a significance, however, should not be placed on these declines. They may simply be cyclical. 7. Although industrial employment generation grew much more rapidly during the sixties (manufacturing grew by 3.1 percent as against a decline in employment in the fifties), this sector still provides only less than 11 percent of all employment. Further, about half of the employment growth in m~~ufacturing may have been in traditional sector unorganized ac~ivities where incomes and productivity are low. Efforts to expand the capacity of modern sector manufacturing to absorb labor are therefore still a priority need. 8. Although SUD~~ has a pipeline of 34/1B-funded projects which, i f implemented in the current decade, should create about 2.50,000 modern sector manufacturing jobs thus doubling the size of this sector, it is not clear whether the branch mix of projects represents the best allocation of 34/18 funds. Although SUDENE has concentrated on encouraging the so-oalled IIdynanlicl! branches (those producing intermediate and capital goods), the cost per job in many traditional branches is much lower. Since some(admit- tedly fairly superfic.ial) evidence suggests that output yields per invest- ment unit is also higher in the traditional than in some of the dynamic branches, there may be a case for examing (a) why this is so and (b) ·whether a different allocation mix would not result in both more output and employ- ment. As a general point, it is not clear whether the current "points ll system may not be best substituted by an allocation procedure based on economic pricing rather than arbitrary point ratings. 9. L.come Distribution. By all accounts, some of which are conflict- ing in some respects, the overall concentration of personal incomes within the Northeast has shown only slight Ch&lges during the decade of the sixties. Within this overall result, however, the evidence is that the income dif- feren tial be'/\,ceer. agriculture and the urban economy has lo.>idened, to some degree, while in the industrial sector inequality appears to have increased quite markedly. In the services sector, although there was little change in concentration during the decade, the degree of inequality is still much greater than in the other sectors. These findings suggested the following broad policy conclusions: i. Increased efforts should be made to stimulate the growth of productivity and output in agriculture. In this respect the government programs to modernize and improve the efficiency in Northeast agriculture should be pressed ahead. ii. In industry, where part of the deterioration in equality has been due to a pattern of growth favoring relatively capital intensive operations, offering relatively high incomes to a minority of workers, the possibilities could be examined of encouraging a growth pattern favoring a broader spread of employment and incomes. A better set of effective relative prices for capital and labor may assist in this. iii iii. In the services sector (no less than in industry) much too little is known about the nature of work activities in the branches in which the poorest groups are occupied. Nor is it known which groups, precisely, are involved. Even less is known about how the organized sections of this sector grow in relation to the rest of the econo~. Research into these issues is a first priority. 10. From the estimates of the distribution of income within the region, it is in principle possible to assess the growth in income of the poorest groups in absolute terms. However, given the nature of the data available in this case, it is not possible to make estimates for the very poorest groups, but only the poorest 60 percent, For what they are worth the estirr~tes show that incomes in this group grew at no more, on average, than 1.9 percent p.a. in real terms through the sixties, against a regional average of 3.3 percent. The figure of 1.9 percent, applying as it does to such a large section of the population, appears to suggest that some groups within the poorest 60 percent have incomes which probably grew very little, i f at ali, during this period. 11. Emplo~ent Policy. There is no very well-defined employment policy as such, neither in the Northeast nor in Brazil. There are, hO"l- ever, a number of important policy programs, including the various regional development and colonization programs which the Government has implemented which could equally be defined a.s employment programs as programs to utilize other kinds of resources in the country. In addition, there are specific labor-oriented policies such as that to redistribute the flow of migrants out of the Northeast (or at least to supplement traditional flows towards the Center-South with new avenues to the North and l-lest); the education ~~d literacy programs are also essentially related to employment. The Government also has a weli-defined wages policy, incumbent en the need to set fairly rigid guidelines on account of inflationary tendencies in the economy. Part of the policy, however, aims to gradually eliminate inter-regional wage differentials by progressive adjustments in the minimum wage of lagging regions, in excess of the amount warranted by inflation. There are some dangers III this course. Possibly productivity growth in all regions should be used as the guide for real wage increases. Other needs in an employment policy relate to the need for a more developed urban labor market and for more research on the whole gamut of employment issues. Ourcent proposals of various research institutions in Brazil are reasonably encouraging in the latter case. 14. Future pros~cts. The expected growth rates in sectoral production found in the SUDENE p an for the Northeast imply on reasonable assumptions about employment-output elasticities, that the current decade could witness a transformation of the region's economy such that by 1980 less than 52 per- cent of its popUlation will be in agriculture. This result, however, depends upon the outmigration of about 700,000 workers, i.e., a number roughly equal to the outflow during the sixties. Further, it ta.'lces no account of the iv xisting backlog of underemployment. The extent to which underemployment will e reduced during this process of transfonnation will depend in the main on hether it is organized or unorganized activities which expand in the urban ectors. Per capita income growth overall, of course, will by definition also educe some underemployment. However, per capita income growth of the order f 7.:5 percent per annum as specified in the SUDENE plan, seem far too opti- istic. Actual achievements are likely to be much more modest. - 1 - I. POPU-LATION AND MIGRATION 1. On the basis of int.ercensal estimates, the rate of natural increase in the population of the Northeast was 2.9 percent per annum in 1970, the same as that for Brazil as a whole. This represents an increase of 0.3 percent p.a. in the growth rate over the decade of the fifties, a result which followed from an acceleration of the death rate relative to fertility declines during the sixties. However, in the period 1960-70 total population grew less slowly in the Northeast than in Brazil as a result of continuing outmigration from the region. Taking account of this factor total population grew at 2.5 percent p.a. during the latter period. l~ese, and other demographic magnitudes are visible in Table 1 of the dtatistical Appendix. 2. The fact that total population grew less rapidly in the Northeast ·t.han in Brazil cannot be taken as evidence that the burden of population growth is less serious here than in the nation as a whole; on the contrary, it is clearly greater. This is quite obvious at least in terms of the relative availability of land resources which are clearly less in the region than in i',he nation as a whole. But more than this, the fact that ayerage income levels in the Northeast are only about half the national average implies that, at comparable rates of natural increase, the pressure of popUlation growth on savable incomes is nmch greater in the Northeast. Hence the chronic outmigra- tion, the historic option against the region's poverty. 3. To the extent that the outmigration and the poverty of the region itself result from the effects of rapid population growth, the prospects for tne Northeast look nmch more dismal than for the nation as a whole. This is because the components of the growth in population in the Northeast are less advanced than in Brazil~ Both birth rates and death rates are higher in the Northeast: the crude birth rate in 1970 was 42 per 1000 in the Northeast, 37 per 1000 ~ Brazil; the death rates were 13 per 1000 and 8 per 1000 respectively.~ Because death rates have farther to fall in the Northeast fertility declines have to be that much more rapid in order to achieve a decline in population growth comparable to that for the nation as a whole. In fact, they have declined relatively less rapidly. 4. Fertil:i.ty Declines. As Table 1 shows, the decline in the crude birth rate in the Northeast accelerated during the sixties, falling 5 points ~ One reason for the relatively high death rates in the Northeast is the continuing very high rates of infant mortality. These were about 150 per thousand live births in 1970 (the figure for Brazil is currently about 100 per 1000 live births. The average for Europe is less than 25). In 1960 the rate was about 180, reflecting a fairly steady decline over the decade. These figures may not, however, be very accurate as registration of births and deaths is not ver,y reliable in the Northeast, particularly outside the major urban centers. A recent innovation plans to introduce into the PNAD surveys questions on births and deaths. - 2 - as against a decline of less than 1 point in the previous decade]:/ Further, it appears that the decline reflects a real decline in fertility habits rather than an arithmetic decline in birth rates as a result of factors such as changing age structures of/the population, and changes in the proportions of women who are married.~ There is, as expected, no established explanation for these trends but it seems consistent with the expected impact of the spread of education, urbanization and the growth in incomes all of which apparently accelerated to some degree over the rates achieved in the fifties. It is also true that the family planning agency B~YAM has expanded its activities quite rapidly in the years since 1967 and this must have had some impact.1! However, this agency has only about 250,000 acceptors in the whole of Brazil of which only about 100,000 are in the Northeast, so the direct impact of its activities is probably quite limited. It is felt by researchers working in this field that a' major block to lower fertility rates is the continuing high rate of infant mortality which itself may stimulate fertility. These researchers claim that a nutrition and health program must form a component of any major effort to reduce fertility. 5. P£hulation Policy. The question of population policy as it relates to e issues of ~amily planning, child spacing, etc., is still a 1/ These declines were slower than those in Brazil as a whole. In the period 1960-70 the crude birth rate for Brazil declined by 13 percent as against a decline of 10 percent for the Northeast. ~/ Our calculations reveal that there was a decline in the proportion of women in the age groups 15-49 sufficient to have accounted for a decline in the crude birth rate of about 2.5 points per thousand over the decade 1960-1970. However, at the same time there was an increase in the pel·::!entage of married women in these age groups of an amount which, on reasonable assumptions about illegitimacy, would have implied an increase in the birth rate of about 2.5 points, i.e., about off- setting the effect of the change in age structure. The overall decline of 5 points per 1000 in the birth rate, therefore, appears to reflapt changing habits. BEMFAM stands for "Bern Estar Familiar" (Family Welfare) • It is a pri- vate agency funded by IPPF and to some extent by the Ford Foundation, its chief aims being the provision of education in family health, wel- fare and family planning, the running of day care centers for children and the distribution of advice and methods of contraception (25 percent IUDs; 75 percent pills). It has 73 pre- and post-partum clinics in Brazil, 28 of which are in the Northeast. The rate of new acceptors has grown from about 12,000 in 1967 to 111,000 in 1971 and signs are this growth will continue. The IPPF which funded about a US$1.2 million budget for BEMFAM in 1971 has voted uS$2.5 million for 1972. - 3- very controversial one in Brazil with various social lobbies besides the Church and the press holding to more or less entrenched positions in the debate. Al though there are some apparently forceful groups speakiIlg in favor of family planning practices these seem to be in the minority of vocal groups. However, it is their belief that the vocal opposition to these practices that is heard tends to overstate the real feeling among the people at large in Brazil who, it is held, appear to be increasingly receptive to the idea of family planning. 6. The protagonists have explained the situation in the following terms: groups such as the National Federation oj' Bishops, who are really no more than mildly critical of birth control,!! and a group of physicians in the Guanabara Medical Society, who are very strongly critical, make good Uf~ of a press which, frankly, sees a controversy as newsworthy, but v.rhich may also tend to be IIpro-natalist n in leaning. On the other hand, despite this resistance, BEMFAM presses ahead with its activities, point- ing to the considerable visible growth in takers in recent years as good evidence of a basic receptivity among the people who can be put in con- tac t with the BEMFAM clinics. The Government, in all of this, seems to play an ambivalent role which apparently prefers not to politicize the issue at all.~/ BEMFAM claims that this passivity implies that the Government has no strong commitment either way but that in pru1ciple it reflects a feeling that the vocal opposition to family planning may not in fact reflect the best interests of the nation. 7. There is some recent evidence to support this insofar as the Government, both at the Federal level and the state and local levels, has been affording increasing support to the work of BEMFAM. In April 1971, for example, a Federal decree granted BEMFAM the status of "utilidade Public a" (L e., a non-profit utility of benefit to the community) which carried a real tangible advantage in that it enabled the granting of an exemption of payment of the social security contributions of BEMFAM staff, a saving equal to about 20 percent of BEMFAM's wage bill (Le., a saving of about U8$120,000 a year). The decree also enabled the granting of a Federal Budget allocation to BEMFAM which, though only very small in 1971 (US$12,OOO) is significant beyond the amount involved. The Director of BEMFAM has expressed confidence that future allocations will be substan- tially greater. In addition to these developments, BEMFAM also reports an increasing amount of cooperation at the level of individual clinics between its staff and the local authority and state government, the latter having responded by supplying buildings, facilities and sometimes personnel t~ assist in BEMFAM1s work. 1/ The opposition of the Church, however, is by no means confined to the making of statements alone. BEMFAM is often visited by local church- men who express displeasure and try to dissuade the BEMFAM staff from their pursuits. 2/ The single exception to this at present is in the local state govern- ment of Rio Grande do Norte (a state in the Northeast) where the Governor has adopted a positive policy favoring family planning. - 4- 8. These considerations, which apply equally to Brazil as to the Northeast, seem to provide some ground to expect that the currently observed declines in fertility patterns may be given an added momentum in future years, as the work of BEMFAM grows and to the extent that the measures it advocates are effective. In short, the changes in observed fertility in the Northeast plus the new attitudes towards BEMFAM may be the signals that indicate that the region (and Brazil no less) has now begun a phase of real fertility decline which bodes for declining popu- lation growth rates in the longer term. 9. Migration from the Northeast. Workers and families moving out of the region to take up res1dence -and occupations in other parts of Brazil has been a longstanding characteristic of the Northeast. Although this process has often been stimulated by the occurrence of droughts in the hinterland of the Agreste and Sertao, the migration has its own momentu..'1l born out of the generally depressed and insecure living standards to be found in the Northeast relative to what has appeared at least to be the w~ch better prospects elsewhere, and particularly in the Center-South region. From the data supplied inAlte advanced tabulations of the 1910 census it is now possible to draw a complete picture of the size and nature of the migrant flows over the last three decades. A selected tabulation of these data is found in Tables 1-5 of the Appendix. 10. The first important obsenvation to be made of the data on migra- tion is that it reveals an unexpec.tedly large outflow of people in the decade of the sixties. About 1.7 million 'people left the Northeast during this perio~/ as against about 1.0:mil1ion in the earlier decade. This implied an increase in the migration rate from 4.6 percent for the fifties to 6.0 percent for the sixties. This was unexpected not only for the reason that in contrast to the period 1950-60 which experienced repeated droughts, the decade of the sixties was without a severe .drought: it was also expected that, with relatively rapid economic growth in the Northeast matched against a relative slo,~J.e gains in labor productivit:,? RF:!al resource gains, and not i..o;:.;i.slative fiat, provide the only real cnurse to higher income levels. , Migra tj.o.~ Pol}cy. The.f ederal au thori ties are hoping to be able ;:..:" di-vert. the flow o'l DUgrants, who have traditionally gravitated towards - 29 - the Center-South, into new regions in the Center~est and along the newly colonized frontiers to the North and West. Or, at least, it is hoped to supplement the traditional axis with opportunities for migrants, both in official resettlement schemes and elsewhere, along these new frontiers. In the words of one }tinistry of Labor spokesman, there is no intention lito break the iEl Dorado I image of the Center-Southll which is often wrongly held by many of those who migrate to the region. The achievement of a more balanced distribution of migrants, however, is probably some way off. Even though the opening up of the frontier regions is proceeding quite rapidly in terms of the construct.ion of the trans-Amazonica and Cuiaba-Santarem highways, the settlement of migrants along these axes is progressing only slowly. 63. Education and the Literacy Pro ram. These subjects have been dealt u..!.th e sewhere in the report, so there is no detailed account offered here. Human capital formation, however, whose generally deficient levels have been a distinghishing characteristic of the region, constitutes a need of the first priority both in urban and rural areas. Although much still needs to be done, there has been progress in spreading education across a wider base of the population and in reducing illiteracy. 64. Despite the progress made in spreading education there remains a need, not just to widen the access to elementary education still further, but also to improve the access to secondary education and thereafter to the univerSities and colleges. Given the importance of private schools in the system there are often still financial barriers inhibiting entry into sec- ondary and thence to higher level education. This perpetuates the existing pattern of income distribution and is regressive. 65. The lack of comprehensive data on the existing educational profile of the employed labor force, together with a lack of systematic information about the region's needs for different types of trained labor, precludes the making of any detailed manpower forecasts for the Northeast. Visits to industrial enterprises in the region, however, many of which undertake on- the-job training of various kinds tended to suggest a shortage of skilled and highly skilled, though not of course of low-grade labor. 66. The Labor Market. As urbanization of the Northeast proceeds, so will the need for an organized and efficient urban labor market become an important factor in the employment situation. At present both the regional delegations of the federal and state Ministries of Labor and the two social services instit~tes for Commerce and Industry (SESCl and SESl) operate some form of labor exchange system where workseekers and employers needing labor can register. This function, however, forms only a secondary role of these institutions and it is not clear how efficient their operations are in this respect. In the Northeast, only 47.5 percent of those seeking work in 1970 approached the labor exchange while about 70 percent did so in Guanabara-Sao Paulo. (See Table 23). Since the institutions have only a single recreation office in each major urban center and none in rural areas in the Northeast, there is only a relatively limited information spread about these activities which could be improved by building a network of offices and by more active advertising. - 30 - 67. Develotment strate~ and Employment. Some of the conflicts inev- itable in astra egy of indu~riar development which relies heavily on a bullish private sector encouraged by subsidized public capital have already been mentioned and need no elaboration here. In the same category also is the issue of whether the incidence of social security contributions is rationally placed. Macro-economic policy could be reexamined to see if the relative real prices of labor and capital could not be adjusted. 68. The point here is not the simple one that assumes a lvide choice of techniques such that employers will choose more labor intensive methods i f relati.ve prices were different. The impact of this effect is probably qulte Ibruted. If, however, capital can be rationally priced this will tend to shift the aJ_location of capital to the most efficient (rather than the most privileged) producers who may be accustomed to making comfortable pl:ofits w::i.:,n a reiatively inefficient use of capital. Tightening up effi- ciency could increase both output and employYnent. A shifting of the heavy burden of social contributions from the wage bill, however, seems a pre- requisi te to elilltinate the current reluctance of employers using relatively large amoun:.s of labor to expand their employment. 09. Shadow W~es in the ,Northeast. If the legal manLmUm wage implies an arbitrary distorvion between the actual market price of labor and its free market price, the existence of the social security contributions add stili further to the distortion since they raise the cost of labor to the employer. From the social point of view these imply some positive limit to the shado(Ol wage insofar as a portion of the contributions is COIlUni tted to providing some of the urban amenities flconsumed" by the urban worker. 70. As a.'Tl iJ.lustrative case, merely to reflect possible orders of magnitude, it might be of interest to report the results of a very rough attempt to define the limits of the shadow wage for a port construction project in Re(!~ .f'~~, Assuming the upper li..'1lit w be the going mo:rket wage for an unskil:.i..f',c construction worker, this gave a figure of Gr$1.90.00 a month in 197L Assuming that the public authority does not intervene to assign specii'ic weight to encourage employme:d:., the lower limit can be defined in terms of the opportunity cost of labor (i.e., output foregone in a previous activity) plus the indirect costs involved in nigration, urbanization and increased consumption. r:.... Since open unemployment is very low in the Northeast, newly employed labor would be found from among the lUlderemployed. Whether or not any output is foregone depends upon whether the man taking up the new job has his work taken up by someone else. In the last count the output :ost wi:l probably be in the rural area as the rural-urban migrant takes up the place left among the urban underemployed by the newly employed worker. rrhis output loss could be close to zero, but many of the migrant are in the most productive age groups, so something close to the average product may be lost. In Pernambuco this was probably in the region of Cr$35-45 a month for the poorest class of agricultural worker in 1971. Add to this an esti- maw of the indirect costs'!/ which came to Cr$22.00 gave a final lower limit. of Cr$57-67, i.e., about 35-40 percent of the market wage. These estimates, however, could not be defended very vigorously. l/ Based on the urbanization costs derived by EDMAR BACHA, OPe cit. - 31 - 72. Research and Data Collection. Research in a number of fields relevant to employment, migration and incomes is being planned in various parts of Brazil which should provide useful policy guidance for the future. 1/ A detailed account of these is given in a recent IBRD report an the subject __ New efforts are also being mounted to expand and improve the existing quar- terly household survey to improve information an incomes, savings, consump- tion, migration and fertility patterns amongst others. Standardization and centralization of data collection and publication is also being planned by the D~~ in an effort to eliminate inconsistencies between law of two-thirds data and that from other sources. lUI this bodes well for the future state knowledge in this field. v. FUTURE PROSPECTS 73. The only firm basis for assessing prospects for the future, other than simply projecting past trends, is the SUDENE plan which covers expected developments in the coming years. Using the plan as a yardstick it is pos- sible, in the light of the discussion of earlier sections, to gain a general impression of the prospects for future employment and incomes. 74. Employment Growth. The SUDENE plan envisages a growth in regional product of around 10 percent per annum through the current decade. This compromises the sectoral growth rates shown in the table below. The employ- ment impact which would follow the achievement of these targets depends on the future changes in employment-output elasticities, i.e., on the respec- tive rates of productivity growth in each sector. This is difficult to forecast. The only available basis is to project past elasticities which is the procedure adopted below for the services sector and agriculture. For industry, there is more definite information in the form of the pipe- line of SUDENE-approved projects which, as described in paragraph 38 above, may be expected to create about 300,000 jobs in this decade. Assuming construction and utilities expand their employment by roughly similar pro- portions (which they may do in response to the growth in manufac~ing) this gives a total employment expansion for industry of 583,000.~ 3:/ "Development Research in Brazil as an Aid to the Definition of the Bank1s Lending Program," Peter B. Clark, John Simmons, May 1972, IBRD. 2/ This implies an employment-output elasticity of .39. rne elasticity recorded for industry in the period 1960-70 was .56. rne decline reflects the inclusion of organized sector manufacturing projects which have a relatively high productivity rate (see paragraph 39 above). - 32 - EXPECTED GROWTH IN LABOR FORCE AND EMPLOYMENT, 1970-80 Expected Annual output &nployment Absolute Increase Increase % % Elasticity 1970-80 Industry 15.0 5.5 .39 0.640 3ervices 10.0 5.4 .54 1.241 !\.griculture 6.5 0.5 .10 0.264 rotal 10.0 3.1 .31 2.145 ~ected growth in labor force 2.767Y Deficit 0.622 1/ This estimate assumes that the growth in labor force in the seventies is determined by the growth in population in the sixties (i.e., 2.9% p.a.). This probably leads to a slight overestimate because it fails to allow for possible declines in participation rates as education enrollments expand. Source: Demographic Census; DEICOM/IBGE; Getulio Vargas Foundation (FGV) 75. These quantities indicate that, even if the expected employment growth is achieved (which would be a considerable accomplishment) there liould still be a need for the migration of a little more than 600,000 mi- grants i f underemployment in the region were not to increase. These esti- mates, of course, take no account of the existing backlog of underemployment comprising about 1.8 million. The prospects for reducing underemployment i:iI'S t.hus entirely dependent upon how great the outmigra.-t.ion is in (3XC6SS of l';()O, 000, and, of" course, on income growth. " - {c-. The Amazon resettlement.- is reputed toO be ab1e to ab;30rb 700,000 ([1;\U.tes tr: t.. he decade but this is doubtful. Probably half tId.s number, i f i;Uit, is a morc' !"ealistic estimate. The fate of the residual will depend on ()'S rate at w.r.:ich new labor can continue to be absorbed in the Center-South. Lr, cJrty CE:Sd. 600)OCU ~orkers equ&tes (on previous patterns) to about 1.7 n:;~ljon 960P::..6 which, [{;; shoom in the projection of Table 1, implies <:" migra- '1:1)(\ rJ.te of 5.0 percent.. Unless drought conditions return to force people '''' ;.. ~ it seems unlikely that migration will exc~3ed this rate. 'rhe chances of s:~.>g:;::.,i.f.icantly reducing underemplcYlrlont, therefore, seem slim. Certainly the :3ULlJ:t:NE prognosis, which sees underemployment declining by 5 percent or more, s(~em.s optimistic. • struct.ural Chan~e and Incomes. The achievement of the expected J.',)i/Lh rates Ll1 "emproymen would certainly bring about a significant change 1.11 the ::Jtructure of the regional economy. As the table below shows, agri- ~ll.l.t;ure 1 s share of employment would decline by 10 percent, implying a - 33 - significantly more rapid rate of transformation than in the previous decade. The services sector, however, would still provide the bulk of the expanded urban employment. The Changes in Sector Shares of Employment According to SUDENE Estimates for 1970-80 1970 1980 (000) (%) (000) (%) Industry 904 10.8 1437 13.9 Services 2299 27.5 3540 34.4 Agricul ture 5157 61.7 5330 51. 7 Total 8362 100.0 10307 100.0 Source: SUDEWE 78. The L~pact which these changes may have on incomes is difficult to assess without a more detailed knowledge of the types of activity making up the new employment. L'1 industry, although its share might not expand very rapidly, the prospect is for most new employment to be in organized activities yielding relatively high incomes. This seems assured by the existing pipeline of SUDENE approved projects, all of which involve modern sector operations offering contractual wage employment. The employment growth in the services sector, however, offers less grounds for optimism. A high proportion of the labor absorbed into this sector may be taken up into the low income unorganized sector, or in the poorer grades of the public sector. In the latter case, income growth depends not on productiv- ity but on transfers of real income growth in other parts of the economy. 79. The growth of incomes within agriculture will depend to a large extent on the successful implementation of the various public programs to boost production in this sector, although natural conditions are inevitably paramount here. On past performance, an average growth in agricultural output of 6.5 percent is high. So, too, are SUDENE's expectations for the other sectors. An overall growth in regional product of 10 percent per year would imply a per capita income growth of about 7.5 percent. This would be a substantial achievement even for economies with a greater resource endow- ment than is currently visible in the Northeast. - 34 - STATIS'rlCAL kPPENDIX , "iH ' - 35 - A Note on Emplo~ent statistics 1. There are three principal sources of ~yPloyment data for Brazil, namely the Demographic Census, the PNAD SUrvey~ and the data collected by the Ministry of Labor in relation to the !fLaw of Two-Thirds H • In terms of coverage, and in the detailing of different qualitative characl:ieristics of employment the PNAD data are the best and, as described below, this source also gives very useful information on unemployment and underemploy- ment. The problem with the PNAD data is that they go back no further than 1968 and so do not allow the examination of long-term trends. As a source of data for the future, however, the PNAD system provides exceptionally )od information by most developing country standards.3,/ The If Law of Two- Thirds" data, although they go back further than PNAD, are relatively defi- cient in qualitative information and they do not cover agriculture. Also, reporting seems to be erratic, resulting in highly unstable fluctuations in apparent rates of growth of employment. For the examination of long-term trends the census data provides the only consistent record and they are generally accepted as the most reliable source for_~is purpose, although again, there are certain problems with these, too.21 The basic structural analysi~ of this paper is based largely on the data from the demographic census .J:!/ Y A household survey system giving quarterly results for all regions of Brazil. 2/ At present there are some inconsistencies between PNAD data and, for example, the census information which I have not as yet been able to explain. One case of this is that PNAD shows a total labor force for the Northeast of 9.2 million as against 8.4 million from the census. This kind of discrepancy is possibly due to an inflated population estimate in building the PNAD universe. 3/ The 1960 census, for example, is essentially incomplete and carries very little reliable data at dis aggregated levels, while that at aggregate levels needs adjusting for consistency with the other censuses. Also, the censuses do not give data for unemployment and "employment" is found by proxy under the heading of economically active population by sector. The latter, as is common to most data of this type, include the unemployed and underemployed. 4/ A fourth source of data, which gives information from routine industrial enterprise reporting for the manufacturing sector, is the IBGE (DEICOM) data contained in the publication Producao Industrial. Here again, coverage is partial and dates only from 196$ (with some information for 1958). Further, employment growth data from this source appear unduly low in terms of corresponding data for output growth. Implications of this are discussed in the text. - 36 - A Summary of Findings from Ot.her Studies of Income Distribution There are three studies, other than that by Langoni, which have attempted studies of the distribution in the Northeast. In addition, same 3st1mates were made by the mission of distribution changes within each sector in the region. 1. The Goodman-Cavalcanti Studl: D. Goodman and R. Cavalcanti have completed a study of industri- alization in the Northeast!/ in which they estimate from demograpllic census 1ata the change in concentration ratios of perso~~ incomes of the economi- cally active population over the period 1960-70._1 Using Gini ratios as the measure of concentration, their study showed both a lower degree of inequality in the Northeast and less of a deterioration than in Brazil as a Whole. A deterioratton was found nevertheless with the overall Gini ratio moving from .50 in 1960 to .56 in 1970. This comprised sectoral movements as f ollow"s : % 1960 1970 Chan~e Agricul ture .39 .35 -11.1 Industry .45 .54 20.0 Services .58 .60 3.5 'L'lle problem >'lith this study is that very little discussion is giveE to :llfs-c.hodology so it ts difficult to compare with confidence these results Iler'e l·,:;pI;Ja:'':EJ(l the the change would be greater. {. at.'Lempts ustmentsl~O ac(;oun~j for the imputed rent of homeowners and domestic servants living ..lith their employers. Again, however, thesE:~ adjustments were not mHde on the data for the Northeast. There may be some bias resulting from this omission but the net direction C i:he bias is not clear. Langoni, for his part, regards this issue as Cir Secondary importance. - 41 - 8. Dif'f'erential Costs of' living. There is an undoubted bias in the census data incurred by the fact that reported incomes are in nominal terms and take no account of relative purchasing powers in different regions and between rural and urban areas. Fishlow fails to mention this point at all. La~goni, on the other hand, draws attention to it, pointing out that most people in the upper income brackets live in urban areas where prices are much higher. He argues this is a case for assuming that reported incomes will systematically overstate the income of the rich, but he does not attempt any quantification of this effect. Further, if his point is valid, it Beems the corollary must be that reported incomes would understate the income of the poor, so the final bias from this effect may not be very great. 9. Different,ial Inflation Rates. Since the market bundle of the rieh is l:'..;;;:ely to be quite different from that of the poor it is likely that their respective inflation rates have also been dif'ferent. This may be particularly important insofar as the prices of services and other items, which weigh more heavily in the bundle of the upper income groups, have risen at faster rates than those of basic wage goods. The CoD.L. Indexes in Brazil are based on weights found from budget surveys of income groups equating to unskilled labor in industry!! and is, therefore, in- appropriate for use in deflating the incomes of upper income groups. An attempt was made to use the Paulding Ind~ for executive C.O.L. movements. This index has clearly risen at a much faster rate tha~ the index for Guanabara.J( In 1971, with 1960 as base, the Guanabara Index was 4441.0 while the Paulding Index was 8259.1. The problem with this index, however, apart from some doubtful implications relating to its method of construc- tion, is that it is based on a very high income by Brazilian standards. It takes as its average family one which spends NCr$65,000 a month in 1957 prices which is more than twice as high as estimated means of the upper income bracket in 1960. My feeling was that this would apply to a very small minority of income earners which, on the basis of the existing data, could probably not be identified as a separate group. To use the index for the whole of the reported upper income group would probably distort more than improve the calculations. Thus, no adjustment was made for differential inflation, and this probably means that the growth in reported money incomes of' the upper group to some extent overstate their growth in real terms relative to that of' the poorer groups. A rough indication of the possible scope for bias is that the price index for personal services increased by 40 percent more over the period 1960-70 than the overall consumer price index. There is no reason to believe why this effect should apply any le ss to the Northeast than to the whole of Brazil. 1/ I have this information from the Statistics and Econometrics Division of the Getulio Vargas Foundation., y Derived from "Executive Cost of living Requirements in Rio de Janeiro and Sao Paulo" Paulding Associates, Rio de Janeiro 1968, plus additions for later years. Ideally, we should use a regional C.O.L. index rather than that for Guanabara. As yet no regional index is published. A number of indexes for cities in the Northeast are compiled by the Ministry of Labor but on examination these were found to be little different in evolution to the Guanabara index. They are in any case only available since 1969. - 42 - 10. The Impact of Taxes. A corollary of the issue arising from the impact of the income derived from the consumption of public goods is the redistributive effect of the tax structure. tangoni examines the issue for Brazil as a whole, finding some, though not very much, progressivity in the incidence of income tax. The issue is not tackled for the Northeast separately but he finds, in any case, that the pre- and post-tax profiles do not differ very greatly. 11. Part Time Earnings. tangoni emphasiz~s the fact that the income profile drawn from the census reflects the earnings of both part-time and full-time workers. This will always reflect greater inequality than the profile drawn for full-time workers only because the inclusion of part-time workers swells the numbers of below average income earners. Most part-time workers are women doing jobs to supplement family incomes. Including them as individual income earners thus distorts the real income profile. As can be seen from Table 9, this is of greater importance in the Northeast than, e.g., in the Center-South. ANNEX II - THE EDUCATION AND TRAINING SYSTEM TABLE OF CONTENTS Page No, SUMMARY AND CONCLUSIONS •••••••••••••••••••••••••••••••••••• i-iv I. THE EDUCATION AND TRAINING SYSTEM •••••••••••••••••••••••••• 1 A. Institutional and Administrative Background •••••••••••• 1 B. Formal Education ••••••••••••••••••••••••••••••••••••••• 3 1 e Pre'Talen t Structure ., ••••••••••••••••••••••••• e • • • • 3 ! 2. Recent Reforms •••••••••••••••••••••••••••••••• 0 •••• 4 3. Enrollment Growth and Quality of Education ••••••••• 5 a. Overview ••••••••••••••••••••••••••••••••••••••• 5 b. Primary Education •••••••••••••••••••••••••••••• 6 c. Secondary Education: Lower Level (Ginasio) •••• 7 d. Secondary Education: Upper Level (Colegio) •••• 8 e. Higher Education ••••••••••••••••••••••••••••••• 9 4. New ~dia •••••••••••••••••••••••••••••••••••••••••• 9 C. Non-Formal Education ••••••••••••••••••••••••••••••••••• 10 1. Vocational Training: Technical and Commercial ••••• 10 2. Agricultural Training •••••••••••••••••••••••••••••• 11 3. Lituracy ••••••••••••••••••••••••••••••••••••••••••• 12 II. EFFICIENCY OF THE EDUCATION AND TRAINING SYSTEM ........... . A. Formal Education ••••••••••••••••••••••••••••••••••••••• 13 1. Internal Efficiency •••••••••••••••••••••••••••••••• 13 2. External Efficiency •••••••••••••••••••••••••••••••• 14 B. Non-Formal Education ••••••••••••••••••••••••••••••••••• 15 1. Internal Efficiency ................... ........... . ~ 2. External Efficiency •••••••••••••••••••••••••••••••• 15 15 III. LABOR FORCE: EDUCATIONAL ATTAINMENTS, DEMAND AND SUPPLY FOR THE IS70's ••••••••••••••••••••••••••••••••••••••••••• 16 A. Educational Attainments •••••••••••••••••••••••••••••••• 16 B. Educational Attainments and Earnings ••••••••••••••••••• 18 IV. EDUCATION FINANCE ••••••••••••••••••••••••••••••••••••• e •••• 20 A. Formal Education Expenditures •••••••••••••••••••••••••• 20 1. Overview of the Financing System and Expenditures •• 20 2. Sources and Expenditures: Growth and Trends ••••••• 23 3. Public Expenditures by Level of Education •••••••••• 25 4. Type of Expenditures: Recurring and Capital....... 27 5. Unit Costs ••••• ~.O ......•••..•••••••••...••••• O.... 27 - 2 - Table of Contents Continued Page No. B. Non-Forrual Education Expenditures •••••••••••••••••••••• 29 1. SENA! ••••••••••••••.••.••••••••••••••.••••.•••••••• 29 2. SENAC •••••••••••••••••••••••••••••••••••••••••••••• 30 3. Literacy: MOBRAL •••••••••••••••••••••••••••••••••• 31 V. EDUCATION DEVELOPMENT: PLANNING AND STRATEGy •••••••••••••• 32 A. Overnew ••••••.•.••.•••••.••••••••••.••••••••••.•••••.• 32 B. Expenditure Projections •••••••••••••••••••••••••••••••• 33 C. Migration and Education •••••••••••••••••••••••••••••••• 38 ANNEXES Chb.rt I - MEC - Administrative Reform, 1970 Chart II - Pernambuco - Education Administration Chart III - Ceara - Education Administration Chart IV - Brazil - Structure of the Education System 1969 Chart V - Brazil - New Structure of the Education System Chart VI - Brazil - New Structure of the Education System Arulex I - Basic data on Primary Education, 1970 Annex II - Primary Education Indicators by Rural and Urban Distinction - 1970 Annex III - Distribution of Secondary Enrollments, 1964 and 1970 Annex IV - Northeast Brazil - Primary School Teachers, 1964-70 Annex V - Northeast Brazil: Senai and Senac Enrollments, 1970 Annex VI - Northeast Literacy: Summary of Mobral Results, 1970-71 Annex VII - Total Population and Economically Active by Educational Attainments Annex VIII - Earnings and Educational Background, 1969 Annex IX - Federal Transfer Programs for Education Annex X - Total Northeast Public Expenditures at Each Level According to Source, 1964-70 Annex XI - Current and Capital PUblic Education Expenditures by Source and Level of Education, 1964-70 Annex XII - National Service of Industrial Apprenticeship (Senai) Northeast Expenditures, 1968-71 Annex XIII - National Service of Commercial Apprenticeship (Senac) Northeast Expenditures, 1968-71 Annex XIV - Outline of Ministry of Education Sector Plan, 1972-74 SUMMARY AND CONCLUSIONS 1. Quantitative lOOasures indicate that the education and training system of Northeast Brazil has responded impressively to the growing national commitment to education. Between 1964 and 1970 enrollments in the formal education system increased on average at a rate of 5.1 percent per annum at the ~r1mary level (grades 1-4), 12.9 percent at the ~nasj&t le7el (grades 5-8), 14.7 percent at the colegio level (grades 9-11) and It.3 percent at the higher level. The primary and c01egio enrollment growth rates surpassed those for Brazil as a whole. In 1970 the North- east accounted for 26 percent of Brazil's primary school enrollments and for 14-17 per~ent of enrolllOOnts at the other levels, with Northeast being: pr~ -- 3.30 million; ginasio -- 0.53 million; colegio -- 0.19 million; and higher -- 0.06 million. 2. Vocational apprenticeship training provided in the Northeast by the national associations of industry and commerce (SENAI and SENAC) has also increased substantially, with trainees in 1970 numbering 32,000 or ten percent of the national total. In addition, in its first year Brazil's national literacy campaign (MOBRA) involved over 1,000 or 75 percent of the Northeast's municipalities in programs of adult education. By mid-1971 the Northeast accounted for 360,000 or 42 percent of the adults successfully alphabetized by MOBRAL. 3. Despite these gains, however, there remain significant regional disparities and imbalances regarding the distribution of education opportunities ard attainments and the efficiency and quality of the educa- tion system. EnrolllOOnt ratios for the relevant age groups in the North- east are lower than overall Brazil average at all levels of education, amounting to only 45-50 percent of the primary age groups versus almost 70 percent for all Brazil. The education attainments of the Northeast labor force shalT that 63 percent of the economically active population (ten years old and above) had less than one year of schooling compared to )6 percent for Brazil as a whole. With almost one-third of Brazil's population, the Northeast still accounts for about one-half of the country1s 15 million illiterates over 14 years of age. 4. A comparison of education efficiency shows that 81 percent of primary school stUdents drop out before completing grade four in the North- east, compared to 64 percent for all Brazil. Due to wastage in the system caused by repeaters and dropouts, it takes eleven student years to graduate one primary sohool student in the Northeast, oompared to 8 student years for Brazil at large. 5. Secondary level education dropout rates are much lower than tor the primary level but still show a similar disparity between the Northeast and all Brazil. A selective examination between the primary and secondary levels has contributed to the lower dropout rates in secondary schools. About one-half of primary graduates continue to secondary school. - ii - '. Ccnparinons between the Northeast and all Brazil should not .bscure the disparities within the Northeast itself between urban and rural .reas. Enrollment ratios, literacy and labor force education attainments, nd (in most Northeast states) education efficiency in the rural areas are II lower than in the urban areas. B,y these measures, the rural areas of ,he Northeast also compare unfavorably in most instances with rural areas .n Brazil as a whole. Contributing to the low efficiency of the Northeast's education :ystem is the fact that at least one-half of primary and secondary achool ,eacherg are unqualified. Most teachers are part-time and may hold another ob or teach in seveI'!l.l schools. Another contributing factor is the lack of ,ufficient physical facilities (70 percent of primary schools have a single lassroom) to keep students in school for more than a few hours each day. [ost primary ani secondary schools operate on a triple shift basis" In .ddition the curriculum at both levels is crowded and difficult and text 'ooks are rare. Socio-economic factors, such as seasonal agricultural work .nd distance to school in the rural area, also undoubtedly contribute to he system's ineffic:l.ency. • Maq:>ower data required to evaluate the external productivity of he formal education system is lacking, although a main criticism of the resent system is that it is too theoretically and academically oriented nd thus limits the a1aptability of graduates and dropouts to job tasks in he labor force. Academic and university oriented streams accounted for pproximately 80 per-,ent of secondary school enrollments in 1970. The ercentage of enrollments in industrial and commercial streams combined eclined slightly during the 1960' s (amounting to 12 percent of ~na.~o nd 23 percent of colegio enrollments in 1970.) Enrollments in agricUltural treams account for less than 1 percent of enrollments. There has bee.n o regional education development strategy to parallel the Governmen~, IS egional development projects and plans. The decentralized institutional strueture of th.e Brazilian edu- ation system gives the states the main responsibility for a.dministra:tion and Lnance af prim3.!'Y anc secondary education. Between 1964 and 1970 state iUcation exp endi toure accounted for an average of 60 percent of total public iucation expenciitU::'6s and were concentrated (about 60 percent) at the primary :weI, where they provided the bulk of total public primary education expen- Ltur,"),s. A relatively small share of stat,e education expenditures (about J) 3T'CSr"t) accounted for almost three-fourths of total public secondary level "Jcation expenditures. MUnicipality education expenditures amounted on average ) percent of t.he t?tal and were applied le.rgely at the primary level. ~A.ral Ministry of Education expenditures accounted for 28 percent of total :ponditures on average and were directed mainly to higher education, where ley provided approximately 90 percent of the expenditures. '. Between 15'64 and 1970 total public education expenditures in the 'rt.h€!ast increased at an average annual rate of 15.5 percent in real terms th aducation expendi tu:re s by all levels of government making SUbstantial - iii - gains. The growth in expenditures was not enough, however, to improve the Northeast's share of total Brazilian public education expenditures. With more than 20 percent of Brazil's enrollments, the Northeast in 1910 accounted for only 14 percent of total national public education expenditures, the same share it ac~ounted for in 1964. Expenditures per student at the primary and secondary school level in the Northeast are approximately one-half the comparable expenditures in the more developed states of Brazil. This can be attributed to (a) placing with the state governments the main financial and administrative responsibility for primary and secondary schooling and (b) the inadequacy of federal transfers for t;ld.ucation in compens,ating for different state financing capacities. 11. Recent trends show that on the average the states have been committing to education a slightly larger share of their budgetary resources (from 14.1 percent in 1964 to 16.3 percent in 1910) and that reliance on these resources has grown significantly in comparison to transfers from the Ministry of Educ~tion. An average of 92 percent of the states' budgetary resources devoted to education, as well as a considerable portion of federal transfers for education, go to meet recurring costs, mainly personnel salaries. With the present availability of funds the states cannot afford to devote any significant amount of their own resources to capital invest- ments in education. 12. Recent reforms enacted by the Government are intended to: (i) change the structure of the education system by ccmbining the primary and ~nasio levels into an eight- year course of basic education; (ii) expand education opportunities at this new level to include 80 percent of all 1-14 year olds by 1915, while streamlining enrollments to eliminate repeaters and dropouts; (Ui) end early specialization by providing exploratory pre- vocational courses only during the last two years of the eight-year basic cycle; (iv) orient curricula and enrollments at the colegio level to job opportunities, providing adequate professional training to students who will not continue to higher education. 13. The implementation of these reforms rests with the individual states. Consequently, the reforms' success will depend largely upon the states' physical and financial constraints. Federal assistance will be channelled through the Education Salary Tax, an earmarked transfer mechanism, and several Northeast states will receive additional assistance from USAID. No cost estimates for the reforms have yet been derived; these are to be determined on the basis of results of a school mapping and inventory of existing facilities now being conducted by the states. - iv - 14. Federal government objectives give great emphasis to quantitative expansion of enro~lments, particularly among the 7-14 year old age group_ The low quality or education and the past rapid expansion at this level in the Northeast require that future quantitative expansion be ba1anoed against quantitative improvements. Relatively little attention is being paid to the co1egio level (grades 9-11), and there is a great need to expand educa- tion opportunitie.s at this level. The system of financing higher eduoation through the Federal Ministry of Education results in excessively high expenditures at this level relative to primary and secondary education. Improvement and expansion at the primary and secondary levels in the Northeast states to correot existing regional disparities require that greater resouroes be provided through transfers from the Federal Government. 15. Mission projections possible at the primary and ginasio school levels in the state and munioipa1 systems show that, excluding the oost of conversion to the new structure of basic eduoation and the subsequent increased student flow between the primary and ginasio levels, the state and municipalities would faoe a gap in recurrent expenditures alone of some Cr$l70 mi11i~n by 197; and Cr$240 million by 1980 simply by maintaining the enrollment growth rate achieved between 1964 and 1970, with the same relatively low qualitative level. Estimates of school oonstruotion needs to facilitate the same oontinued enrollment growth suggest that on the basis of past capital expenditure patterns, the states and municipalities would face a capital investment gap of some Cr$300mi11ion by 1975 and Cr$B50 million by 1980 16. There is a olear need to strengthen state education planning units and to relate planning at the federal level to state and regional disparities and priorities. National education objective may not be consistent with state and regional development needs, and national enroll- ment targets have little meaning for states with below average enrollment ratios, such a.s those in the Northeast. Migration and its costs and benefits need to be analyzed and taken into acoount in the formula used for the allocation of federal transfers for education in the Northeast. • I. THE EDUCATION AND TRADUID SYSTEI'·1 A. Institutional and Admini strative Background 1. The institutional and administrative characteristics of the educational system of Northeast Brazil must be viewed in the national context. The Brazilian education system is a decentralized one in which ·'·mction3 and authority are dispersed among a number of institutions and governmental levels. Frequently, the functions and areas of authority of one institution or governmental level overlap those of another. The principal thrust, of constitutional and legislative measures regarding education has been to assign planning and coordination authority as well as supplementary financing responsibilities to the federal level, leaving the main responsibility for education administration and finance (excluding the university level) to the states and municipalities. 2. Despite these broad divisions, however, the Federal Government shares policy ITllking, planning, teacher-training, as well as financing functions, with the states and, to a lesser extent, the municipalities. To the extent that it maintains primary schools and a large number of technical vocational secondary schools, the Federal Government also shares the admin- istrative function at these levels. public (federal and state) and private universities and other institutions of higher education are administratively autonomous. Religious and lay organizations in the private sector maintain institutions at the three levels of education. Two large organizations within the private sector, the National Service of Industrial Apprenticeship (SENAI) and the National Service of Commercial Apprenticeship (SENAC), maintain centers of vocational training in each state. 3. The basic institutional framework of the present formal public education system was established in the Law of Policy and Principles (Lei de Diretrizes e Bases) of December 1961. This law also attempted to define more clearly the functions and areas of authority corresponding to the di.f- ferent levels of government. 4Q Established by the law, the Federal Council of Education (con- sisting of 24 educators appointed for six years by the president of the Republic) is the principal body responsible for developing overall education policy in Brazil, including the drawing up of basic guidelines and standards as well as the criteria for the allocation of the federal education budget resources to the different levels of education. The executive arm of the Federal Council of Education is the Hinistry of Education and Culture. In addition to its responsibility for directly aili~nistering a relatively small number of federal primary schools and a relatively large number of technical vocational seconda~J schools, the Ministry of Education has been given a number of major responsibilities directly involving the states: - 2 - (a) it is encharged with exercl.sl.ng a IIsupervisory and supplEmentary" role in prima!"'!] and secondary education to ensure that state policies and practices are con- siBtent with those laid down by the Federal Council of Ed'lcation; • (b) it is responsible for allocating federal monetary trans- fers among the states and controlling the subsequent experrlitures; (c) it is responsible for the coordination of education planning between the federal and state levels and for the provision of technical assistance to the states for planning and administration. 5. The brond responsibilities of the I1inistry of Education have given it a significant role in the interpretation of national education policy itself and made the l41ni stry the crucial link between the federal and state levels. To simplify its procedures and function more efficiently, the Ministry has been reorganized since 19'10 under the leadership of a new and dynamic Minister of Education. Some 70 internal entities reporting to the 11inister were reduced to 8 major departments (See Chart I) and 106 separate budgetary entities were consolidated into 20w1thin a composite Ministry of Education Budget. Each of these departments -- particularly those dealing with primary am secondary education -- maintains direct contact with state education authorities, largely through the provision of technical assistance. s. In spite of the important role and responsibilities of the Ministry of education, however, the education system in Brazil remains iecentra1ized, for in practice the }linistl~ operates as an advisory rather than regulatory body vis-a-vis the states. In the end, practical decision naking with regard to education organization, administration, and finance (excluding federal universities) is in reality left to the states th3mselves. fience, although the T~aw of Policies and ?rinciples intended to decentralize )nly the administration of education, the states a1't~, in .!:'act.' largely ,tutonamOllS in other spheres a.s well. F'or example, little control is exer- :::ised over the 1J.SE:~ of federal moneta.!'"'.! transfers, and tbe states are ~enerally free to l.l~~' as well as their mtn much larger budget a r'J' '3dUc8.tion funds as tr.t'.y see fit.. ::::Lmilarl;r, the states enjoy 9, great deal ')f It'8wa:' in Gonforming thBir Oi'm education plans and objectives t.o those StrijiClllated at the i scleral 1 f~ ~ TIle principal boo)" respor1s').. ble for defining policies a.nd programs Ln I=!ach state is the State Council of Education, estr,blished by the 1961 ::.aw of' Policies and principles. Like their federal counterpart, the state ~ouncils have an exec utive ann -- the State Secretariat s of !);ducation -- . . hich are responsible for the administration of the state education system. Jenerally, the organigation of the State Secretariat includes functional iepartments somewhat similar to the Federal Ministry of Education. (The )rganlzation of two state Secretariats -- Ceara and Pernambuco -- is in Charts I I and III.) - 3 - 8. Appointed by the state governors, the state secretaries of education are generally the most influential authorities in determining progr&~s and finance allocations within the education sector. Although larger municipalities have their own boards handling educational matters (usually related only to primary education), all municipality progr&~s and policies are subject to the authority of the State Secretariate, and many states maintain supervisory personnel to oversee municipality education. 9. The framework of the Northeast's education system provides no institutional procedures through which the nine state secretaries of education can collaborate on a regional basisQ Although SUDENE, the Northeast development authority, is formally responsible for providir~ a regional focus on education development problems, it has not played a regional coordinating or planning role in tMs sector and r..as no formal authority over the state secretaries of education. 10. The increased priority given to education w~thin the last five years has led to the "introduction by federal authorities of several recent major r€forms in the education system. This reformato~s phase in education development is likely to test severely the decentralized char- acter of the institutional structure for education. In a count~J as large as Brazil, some decentralization is undoubtedly conducive to more efficient a~~nistration. The decentralization of authority, however, particularly wi th regard to the administration and finance of primary and secondary edu- cation, makes the timely implementation of nation-wide qualitative and quan- titative reforms at these levels of education extremely problematic. The federal author:' ties have been given the function of drawing up m tional plans am targets but not the power or authority to implement them. This means that federal authorities must rely on the states to adopt ani comply with federally-initiated policies and guidelines. state actions, in turn, are determined largely by the states' o~~ administrative and financial constraints. O.lly when there is a substantial financial contribution attached to federally-originated policies are the states willing and able to comply without considerable delay. As as result, the adoption of national policies in such fundamental areas as teacher salaries and the structure of education occurs in varying degrees and at different times throughout the country. Bo Formal EdUcation 11. As a result of federally enacted changes in the st~~cture of primary and secondary education, a reformed or legal structure of education has come into existence alongside the still far more prevalent de f~ structure. frevalent structure 12. Primary schools offer a four-year course with entry beginning at the age of 7. Some state and mUnicipal schools offer a fifth and sixth - 4 - {ear or prima~ education, but both of these two years account for less ~han 4 percent of total prima~ enrollment. Secondary education is divided Lnto two levels: the i!nasio (grades 5 through 8) and the colegio (grades 'II 1 through 11). Both sinasios and colegios are differentiated according to ~he curriculum which they emphasize - academic, industrial, agricultural, ~~~ercial, or normal (teacher training). Although only the completion of 1 ginasio is required for entrance to the cOlesio level, an examination has leen required for entrance to ginasio, resulting in a sharp drop in student now between the primary and secondary levels. Depending em the degree ~ought, higher education offers courses of three to six years' duration to 3tudents passing a required entrance examination. ~ecent Reforms ~3. Two major structural reforms have been enacted by the Government. "irst, '..dth the intention of eventually transforming all ginasios, the }overnment introduced in 1968 the .§.inasio polivalente, or multi-purpose ;chool, which eliminates early specialization and provides instead two rears of general education followed by two years of more specialized Laboratory and workshop studies of a pre-vocational nature .,!.! .4. Second, in August 1971, the Government established the structural mification of the ~inasio and primary levels, creating an eight-year basic 3ducation course (ensino fundamental).Y Incorporating the new concept of ~inasio polivalente, this basic course is meant to prepare students for ~ither continuatio.n into colegio or entrance into the labor force. The ~lilT'J.nation of the exarnination oetween the primary and ginasio levels is ~xpected to increase,pupil now greatly, and a school mapping is being under- ;aken in an attempt to maximize the use of existing facilities. (See Chart IV, r and VI for canparison of different structures.) S. The requirements and implications of the basic education program teed to be assessed by the individual states in relation to their physical ,nd financial ccmstraintso As a result, this new program has not been mplemented in t,118 Northeast in 1972 and its introduction "'-ill be gradual, ith the result that there will exist for a long transition period two ducation systems covering the first eight years of schooling. 6. The following discussion on trends and evaluation of the :iucation system is b,ased on the structure prevailing before August 1971. l Introduced as the "Program of Expansion and Improvement of Secondary Educa- tion" in Decree 63.914 of December 26, 1968. This program is the subject of USAIDI s first sector loan, amounting to US$32 million to assist in the construction and equipping of some 300 ~inasios polivalentes in four states as well as 1 ginasio in each state capital in Brazil for demonstration purposes. One Northeast state, Bahia, is included under the USAID loan. A second sector loan is presently being discussed by USAID and the Brazilian Government; it is anticipated that at. least two more Northeast states will be included under this loan. , Decree Law 5.692 of August 31, 1971, "Directives and Ba.ses for Fundamental and Seconda~ Education". - 5- Enrollment Growth and Quality of Education An Overview 17. As shown in Table 1 below, the national commitment to education has increased significantly since 1964. The quantitative expansion of the system has been impr,3ssive, particularly at the post-primary levels. The edueational development of the Northeast region improved relatively to the 1964 1970 Annual Growth Level of Education Brazil Northeast Brazil Northeast Brazil Northeast Primary 10,217,300 2,450,900 12,812,000 3,.300,500 3.8% 1% Secondary 1st Cycle 1,453,700 256,400 3,080,200 530,000 13.3% 12.9% 2nd Cycle 439,000 77 ,400 1,003,385 185,134 14g8% 15.7% Higher 136,700 21,600 425,500 59,200 21.0% 18.3% Source: Annuario Estatistico do Brazil 1967 and 1971. rest of the country in the provision of primary, was about the same for seconda.ry education but lagged in higher educationj a phenomenon that could partly be explained by the migration of young people to pursue higher studies in other states. Despite tr.ese favorable enrollment trends, the Northeast states accounted for a smaller share of enrollments than their representative pop- ulation, with a 2c percent share of the primary students and 14 percent of those in higher edUcation in 1970a (Additional information on enrollments is given in Annexes 1-3.) 18. The relative improvement in the provision of basic education in the Northeast has rad marginal impact so far on the disoanties of scholar- ization rates and literacy among this region and the rest of Brazil. Almost half of Brazil's 15 million illiterates over 14 years of age resided in the Northeast region in 1970 and the enrollment ratio of the region is roughly estimated to lag the natio~al one of about 67% by ten percentage points. Addi tional regional imbalances vis-a-Vis labor force educational attainments also prevail, and they are discussed in detail further below. 19. Qualitative improvements in the education system have lagged the quanti tative expansion. A very high percentage of the teache rs is unquali fi ed.. These teachers are found mostly in the public school system, particularly the municipios where expenditures per student have chronically remained at - 6 - xtremely low levels because of inadequate public finances. There are roblems of inequity in the availability of educational opportunities .. ithin the region and these are accentuated by differences in the quality f education provided in the public versus the private schools, the latter eing more successful in placing their candidates in schools of the rnmediately higher leveL r:Lmary E;ducation o. As illust.rated in the appended case studies despite substantial rogress in enrollment growth there has been, within the Northeast states, tremendous chronic disparity in the provision of educational opportunities mong urban a~d rural areas. Enrollment ratios in rural areas range from o percent to 60 percent of those in urban areas. The inequality of educational pportunlties can be attributed to a number of factors such as the dispersion f rural population which cannot sustain economic size schools, ineffective I' non-existent planning at the local level, and scarcity of local government inancial resources. 1. The overall lack of school facilities has led to a ver;r intensive se of the existing o~es. One~oam schools account for some 70 percent of 11 schools. Sessions are short (about h hours per day) and schools operate n a double or tripl.3 shift basis. The conditions of teaching service are ot attractive to qualified teachers and do not promote creation of a dedi- ated professional force. Most teachers are part-time, either having another ob or teaching in several schools. About half of the primary teachers in he Northeast are not qualified (Annex h). The unqualified ter.chers concentrate n the municipalitief, where they account for as much as 80 percant of the eaching staff. Teacher upgrading is very limited and offered erratically epending on fund availability. Teacher salaries, by law fixed equal to the tate salary minimum, cannot be met in the municipalitiBs which may pay as i ttle as 20 nercent of the minimum. Other local arrangements are not ufficient inducements to attract qualified teachers. The curriculum is crowded nd di fficul t .1/ All these affect. adversely the efficiency tr..e education }'i'3tsm. I A recently completed study by the M:i.pistry of Education I s research branch (INEP), co.lpHrtng (nlrri.cular context required at each grade le'l6l. in primar,y Ec:hcols in the U2At France, Russia, Sweden and SWit- Z;2r1.arri, showed that the Brazilian requirerr..ents at the same levels were Qi'ten far greater for each year and were required at a younger age l.eve:l in generaL some cases, a taptc or skill expected to be mastered in Brazil. at the second grade level was offered at the ~~ixth grade lS'Irel in the other countries" - 7 - 22. In the Nbrtheast, the municipalities accour:t for the largest proportion ofr;rimary enrolLments, predominantly rural, in sharp contrast with Brazil as a whole as shown in Table 2 and Annex 1. Any quantitative and qualitative improvements in educational opportunities must include the municipalities. Yet, the greatest constraints for such improvements exist at this level. They include low teacher salaries for qualified personnel, a poorly qualified teaching staff, and limited finances for the provision of schooling in sparsely populated areas or qualitative improvements by in- creasing expenditures per student which now represent a bare one fifth of state expendit.J.res per student. l1unicipal schools h;.ve the lOv-lest average number of students, 41, as compared with 119 in federal pr"'.D1lary schools, 138 in state schools and 82 in private schools. !ab1e-1.: MUNICIPAL PRI11ARY SCHOOL BASIC DATA, 1970 Ca) (b) (c ) (aj cIa a/e Numbers of Nll.."ilbers of Enrollments Teachers Schools Classes Municipali tie:=- Brazil 81,583 97,627 3,851 124,232 Northeast 39,926 45,008 1,629 51,h61 As a %of Total Brazil 56% 36% 30% 27% Northeast 74% 88% 49% 48% Seconda~ Ed~ation Lower Level (I1Ginasioll) 23. Despite the real gains in the expansion of opportunities to gain entrance to middle-level education (Table 1), on the basis of evidence gathered for the two case studies of Ceara and Pernambuco still only about half of the primary grarluates were admitted to grade one of ginasio in 1970. 24. Most schools operate in three sessions. Their teaching staffs are almost enti rely part-time and less than half are qualifi ed. Science laboratories and workshops are rare. Teaching is mainly by the lecture method and courses are too academic. The courses become increasingly spe- cialized as the level increases. Through 1970, the gin~siQ offered options into eight area~ of study: general, commercial, industrial, agricultural, teacher training, arts, home economics and nursing. 25. Very small relative changes have occurred in the distribution of enrollments since 1964, when cafu~ercial education and teacher training were favored slightly more. The academic stream accounts for about 85 - '8 - ~rcent of the enrollments, and the commercial and industrial ones for 11 ~rcent. Enrollments by sex, while balanced for Brazil, as a whole, are ~ percent female in the rbrtheast. The public schools account for half of Le overall enrollments. There are only marginal differences in the dis- ~bution of enrollments between the Northeast states and the country as whole in 1964 and 1970 (Annex J). Under the new education system (para. 14) practical work in 'ades seven and eight will be promoted to allow students to explore their ffierest in such areas as industrial arts, commerce, agriculture, and me economics. The emphasis of the various nrograms will be related to .e e:rnrironment of the school's location. Teacher training at this level : being gradually phased out. Other pre-vocational training that had 'en offered in a small number of schools at this level will terminate rl the more sophisticated equipment, where available, will be trans- ,rred for use in colegios. The constraints to quick implementation of .is program are developed later. ".) er Level ("Colegio lf ) Colegio enrollments have grown at a rapid rate, partly because , increasing social ~pressure for C91egi~level education, but also because e base of the growth has been small. The distribution of enrollments in e various categories is markedly different in this cycle than at the wer level, mainly because of the significance of teacher training. This : an option students choose not SO much to prepare for teaching careers ~t rather to take advantage of a relatively easier course of study which, vertheless, satisfies the minimum colegio requirement for university ltrance. Enrollments in the academic streams account for 32 percent. Since 64, there has been a small relative increase in industrial enrollments and acher training while general and commercial enrollments declined slightly , latively. For industrial enrollments, this may be indicative of the beginning a larger response to the greater demand for rruddle-level industrial person- 1 in the region. 1'his may also account for the noticeable change in the stribution of the enrollments in Northeast which now approximates that of azil at large. (Annex 3). Female enrollments at colegio level are the highest of any ucation level and stand at 57 percent of the total in Northeast, compared with 53 rcent for Brazil at large. This is because of the overwhelming female en- llments in teacher training institutions which amount for over nine- nths of the total for the Northeast and for Brazil. Enrollments are erwhelmingly public in industrial and agricultural education, about half teacher tr~ning and about one third in the general and commercial schools. erall public enrollments account for 57 percent of the total. Colegios also operate in a shift system v."i.th 2-3 sessions per y. Their teaching st2ff qualifications are mostly limited to general bjects background. In some cases, the offering of practical courses is nited because of the. lack of qualified science, laboratories and workshop - 9 - teachers. The J''',-3munera";.ion of such personnel in non-teaching occupations is too high for the school' systems to compete with. In come instances, ed engineers from ll)cal companies render valuable part-ti.'1l8 service as technical teachers. Very lew of the practical subject teachers '~ave received any pedagogic traini~. Two of eight regional centers for technical education, established unde:.:' Federal law in 1966 to train technical tea.ehers, are located in the Northeast and are designed, when in full use, to meet the technical teacht3r requirements of the region. Higher Education 30. The most rapid expansion of enrollments has taken place at the higher level. The greatest growth of enrollments has ta~en place in the fields of liberal arts and humanities. Enrollments in engineering, medicine and agronomy, despite their substantial absolute gains, accounted for 24 percent of university enrollments, a considerable decline from a share of 32 percent in 1964. The federal universities in the region accounted for the ma.iori ty of the enrollments (61 percent). 31. The rapid expansion of ur~versity enrollments has been supported by the Government to meet the high-level manpower requirements of the country. It has been accomplished, however, at the eXpense of quality and at a high co st. Because the uni versi ties were originally created by uniting separate faculties, there is a widespread duplication of courses with individual entrance examinations to separate faculties for some of which there is ex- cessive competition while for others there is too little. New Hedia 32. Although it is still largely in a preparatory stage, the use of education~l radio and television broadcasting has received a significant emphasis during the last three years in both the Northeast and Brazil as a whole. In 1969 the Government set up an inter-ministerial c~rnission to coordinate feasibility and program studies on the use of modern communications ~edia in reformulating educational methods. The long-range goal of the Govern- ment is the estabJishment of a national educationn.l communications network (known as Advanced System of Educa.tional Technology - SATE). To provide coordinati~n and financing assistance for the use of television and radio within this system, the Government created in early 1972 the National program of Tele-education (PRONl'EL) under the direction of the 11inister of Bducation. 33. The regional institutional basis for SATE has been laid with the development of five regional audio-visual centers for assisting in teacher training and testing of prototype materials. The Northeast center in Recife, established in the Federal University of Pernambllco, has begun equipment acquisition and program design for local television broadcasting.lI 1/ Financial assi[tance of slightly more than US$l million was recently obtained from the German Kreditanstalt, with SUDENE providing apprQxi- mat ely US$lOO,OOO additional. - 10 - In addition the Brazilian Space Agency (CNAE) has begun a pilot project in the state of Rio Grande del Norte to determine the cost and effectiveness ~f radio and television education programs transmitted by satellite from Sao Paulo. 34. Brazil and its Northeast clearly offer a great potential for t.he use of educational radio and television. With proper use and program- ning these media corld assist in reducing the disparities in educational Jpportunities that result from sheer geographical separations between regions ~nd between urban and rural environments. Although educational television nust be viewed as still somewhat experimental, it holds out the possibility of maximizing the use of qualified teachers while compensating for the scarcity of educational materials and the inadequacy of curricula. And :l.lthough start-Up costs are high, the unit costs rapidly decline with laroge :ludiences, and further cost savings can be obtained by the provision of simple )rograms aimed at increasing the productivity of adult workers. 35. These potential advantages, however, can be realized only a considerable period of exp erience during which pilot projects are tested, 3..fter bechnicians are trained, and a number of other administrative and planning :onditions are established. Hence, for the foreseeable future, modern tech- nology must be viewed as a minor complement to the more conventional means )f developing education in the Northeast. C. IDN-FORH..t\L EDUCATION locational Training: Technical and Commercial ~6. Concerted efforts have been undertaken to provide vocational ;raining to meet local Dlaq:>ower demands. Commercial training is undertaken Iy SENAC (National Service for Commercial ApprEmticeship); industrial ,raining is uooertaken by SENAI (National Service for Industrial Apprentice- imp). Almost all vocational training is for middle-level personnel and ,bout half of the industrial training is for m'Li.ch needed skilled worker ngrading. The priorities for vocational traini.ng are detennined from studies ommiss':'oned by state representatives of PIPMO, (Intensive progra.'1l. for the reparation of Labor, under the Directorat.e of Secondary EdUcation of the inistry of Education), and from specific requests from establishments for rained marpower or in~pla.nt training. 7. ~:n 1970, about 11,000 trainees enri)lled in ~NAC I S various r'aining programs organized in 9 centers in the Northeast states. Another :; ,,:;()O participa ted he SENAI I S training programs i:nplemented in 24 of its -Tn centers and :i.n the facilities of 11 finns. These enrollments repre- ~nted, in each case,a tenth of ule national ones. Their distribution by rp", of progra.rn is given in Annex 5. Adult training account for the bulk ~ SENJiC's enrollments, vlhile for SEW.l half of the enrollments were in :illed worker training programs, a fifth in apprenticeship programs and lout 28 percent in supervisory and management personnel training programs. - 11 - 38. The facilities of the larger SENAC and SENAI centers are generally well equipped and maintained. The teaching staff is composed primarily of part-time personnel who are contracted for the duration of the course. SENAI is experiencing some problan in finding and retaining qualified staff to teach some of the more specialized courses. There are no facilities for instructor training, a factor that has limited the organization's flexibility in allocating its staff and undertaking requests for organizing training programs. The existing institutional a!Tangements are flexible and adaptable so as to meet short-term local manpOi.J'er training requirements, although the effectiveness of the training could be enhanced with better resource allocation and new training schemes. 39. A large number of training programs, enrolling an additional 5,900 trainees in the Northeast during 1970, were financed directly by ?IPMO. PIPMO is a very flexible organization with very dynamic state personnel. Its objectives are to carry out labor market stUdies and to organize as well as finance training programs through SENAI, SENAC and other private or public facilities, particularly the }upistry of Labor. owns no physical infrastructure and its only overhead is its state professional and administrative staff of about five persons in each state. The organization attempts to meet regional needs and this is clearly sho~~ in the regional distribution of its trainees. Of the 104,000 who participated in PIPMO programs in 1971, a full one-third weT'e in the Northeast states. PIPHO finds itself strategically in the best position to promote regional, urban and rural programs and fills the tremendous gaps exLsting in the system vn.th regard to the training required by small land holders and businesses. It works on a limited budget 1Vhich has been, however, increasing in recognition of the organization I s effectiveness. Any support to expand PIP110 activities must be undertaken wi thout compror:us~ng the orgarJ.z~tionf s flexibility, a view &1030 endorsed by the national and state officials of the organization. Agricultural Trainin~ 40. In 1970, PIPHO expanded its activities to include agricultural training for small..;. and mediu.:rn-size farm holders. The orgrlnized courses were residential and of short duration. These COl~ses were the only agricultural training activity addressed to farmers, other those connected w-l. th fal1'l credit utilization, and v-rho benefit from the extension services. \{nile PIPI10's initiative -vd.ll meet a great need ""hen the agricultural training progra.'1ls are eJ."Panded in scope 3.nd coverage,~he prograIlls will still fall short of being totally effective because of the lack of follow-up of the trainees by extension agents. The prese~t institu-t,ioE:ll arrangements of the extension service relate most of the activities of the extension agents with credit extonsion,thus resulting in lack of trained personnel that could. advise the large majority of the small- and medium-size land holders. 41. Addi onal agricultural training schemes of c predaminatly in- service nature are being organized by other public agencies such as ABeAn 8nd t.he Bank of Northeast. ABCAn. has two of its seve~ training centers located - 12 - in the Northeast. In 1970, a total of 1,850 trainees attended over 200 courses of an average duration of 10 days. However, only 320 of these trainees were ABCAf( personnel. The rest were staff from the state secretar- ia~ of agriculture and agricultural institutions. Included in the courses ..18re rural extension, cooperatives, planning and agricultural tech- nology. The Bank of Northeast is implementing its own training programs to meet its various needs for credit supervisors and for personnel for farm management, a newly created occupational classification. The programs extend over 14 months and enroll universi t;y- graduates many of whom are lured fran _,'-BeAR by higher salaries. Literacy - 1\ 42. In 1970, 8.4 million or almost one-half of Brazil's analpha- betized over 14 years of age resided in the Northeast. In that year the analphabetized became part of the target of a national campaign (MOBHAL- MOvL~ento Brasileiro de Alfabetizacao) aimed at providing: (a) fUnctional literacy to all the analphabetized by 1980, and (b) an education equivalent to primary level, but condensed in a year of teaching, to those who wish to continue beyond the functional literacy courses. In the Northeast, about 34,000 successfully obtained functional literacy in the second half of 1970 when the program began and their number increased to about 332,000 in the first, six months of 1971 alone. This is indicative of the wide national attention as well as momentum the literacy program has gained. The Government has concentrated its resources on the Northeast programs. Roughly 40 per- cent of HOBfillL' s financial am human resource effort has been directed to this region. This is also shown in the increased participation of the ;~ortheast population in the programs. Of 1,373 municipalities in the region, ]{l5I participated in MOBRAL programs and Northeast enrollments accounted for 42 percent of the total in 1971 (Annex 6). 43. The success of the program will, however, eventually be deter- nined, in Inrge measure, by the availability of qualified teaching staff. ~er 28,000 teachers were recruited in the region in 1971, but few of tlEm were qualified. Teacher training courses of one week are organized through- out the states so that the various visual aids used in the program can be explained and teaching techniques demonstrated, but the effectiveness of this short training is limited because of the poor teaching capability of th3 I:,tjac[: ,:~rs. - 13 - II. EFFICIENCY OF THE EDUCATION SYSTEM A. Formal Education Internal Efficiency 44. There is a very uneven distribution of pupils among grades in primary school. Since 1964, there has been a minor correction in this distribution: but, still, Northeast enrollments in the first grade account for about 60 percent of all primary enrollments, as compared with a corresponding share of 47 percent for Brazil at large. Fourth grade enrollments were less than 10 percent of the total. This phenomenon is explained by the large numbers of repeaters and dropouts. The system's inefficiency is illustrated in the charts below.lI Chart 1: PROGRESSION OF A COHORT (PRIMARY) Year Year Year Year 1 2 3 4 Students in Each Year All Brazil 1,000 513 439 356 Dropouts 487 74 83 Northeast 1,000 313 245 190 Dropouts 687 68 55 45. It is indicated from the chart above that while the drop out rate for the country as a whole was 64 percent of 1,000 students entering in grade one, that for the Northeast region was 81 percent. Most of this drop out takes place in the first grade. 46. Another contribution to wastage arises from the repeaters in the system. UNESCO data offer the following composition of 1,000 students in each of the four primary grades.g/ Repeaters in the first grade amounted to about one-fourth of the grade's enrollment at the beginning of the school year. Year 1 Year, 2 Year ~ Year ~ Brazil NE Brazil NE Brazil 1TE Brazil NE Repetition 301 240 192 147 171 130 116 105 Promotion 327 258 697 672 681 677 Drop Out 327 502 III 181 148 193 Output 884 895 11 Based on actual 1967 and 1966 data. UNESCO, International Conference on Education, the Statistical Measurement of Educational Wastage. July, 1970. g/ UNESCO, Ibid. - lL. - L.7. Drop-outs and repeaters have raised the unit cost per successful graduate of the fourth grade to a very high level. It takes about 11 student years to graduate one student from primary four, as compared to a much lower, but still relatively high, about 8 student years for Brazil at large. This latter statistic compares more favorably with most Latin America countries (Argentina 11 student years in a seven year primary cycle; Columbia 12 student years in a ,-year cycle; Mexico 11 student years in a six-year cycle). L.8. Wastage and other levels of education is much lower but still significant. Drop-out rates at other levels of the education system exhibit a variation with 1!0 definitive trends and with Northeast rates intermitently lower or higher than those in Brazil at large. At the ginasio level, the drop-out rate was 6 percent in the Northeast, a decline from 8.3 percent in 1964. But certain streams, particularly those of general education and teacher training exhibited very large drop-out rates in 1969 as high as 20 percent, and relative increases in the rates over 196L.. At colegio level, the overall drop-out rate was estimated at B.L. percent for the Northeast in 1969. It has varied erratically over the years and has generally been above that for Brazil at large. External Efficiency 49. There is lack of appropriate data that would allOiv the evaluation of the external productivity of the education system in the Northeast. A proposed labor market study (see Northeast 1£.ssion volume on employment and income distribution) would include an identification of the educational and occupational characteristics of marginal urban groups. The possible sub- sequent extension of this study to include comprehensive state labor market surveys would fill a great need and would bE~ very valuable, if appropriately designed, in assessing the performance of the education system and j,n formulating a long-term strategy to meet the projected educational require- ments of the labor force in the Northeast states. One of the main present criticisms of the edUcation system is that education is too theoretically oriented, which l~mi ts the adaptabili t:l of the graduates and drop-outs to new job tasks when they join the labor 201'c9 9 50" Another area where the e~r:ternal efficiency of the system can be improved is in the education of trl'':: (')ver-ilgH students who in almost all cases now i'ollo'Jl the regular curriculw.. OW'lr-agc students could be grouped separately and offered, tn special or parallel shifts, a curriculwn designed i3.ppropriately for their needs and capabilitieso Att.ainment of literacy or pursuance of ~chool work towards degrees should in most (~ases be obt.ained with accelerated programs commensurate to the abso~'ption c2pacity of the stUdents. One of the diffi cuI t,h~ s 1:.'1 e val ua ting the e duca ti on sys tern I s ext.ernal efficiency in the Northeast it; tnat such an evaluation would have to extend beyond the confines of state boundaries. Almost half of the university graduates and most post-graduates migrate to southern regions where they are employed. Migration also oceurs among other school graduates hut to a lesser degree. Disaggregated raw eensus data on the education at,ta:i.nments of migrants a!"e available but have not been compiled by the Brazilian statistical services for analysis .. - 15 - B. Non-Formal Education Internal Efficiency 52. The efficiency in the implementation of SENt'll and SENAC courses varies with the adrrinistration of each center, as well as with the type cmd level of courses offered. SENAC experienced in 1970 a drop-out rate of about 11 percent in its courses for minors and a larger, 19 percent, in its adult courses, (the respective rates for Brazil were 14 percent and 15 percent). The drop-outs are attributed prime.rily to family obligations by the trainees and securing of employment while still registered for the co~rse. Because of limited funds SENAC's facilities are underutilized. In a few states where new large facilities have been built recently, there is clearly a problem of excessive capital investment in training capacity. 53. SENAI's operations are more efficient both in terms of space and equipment u:jilization as well as the limited drop-out rates of trainees from its programs. The larger facilities of SENAI are used at capacity. There are difficulties, in Pernambuco for example, in meeting all requests by firms for the organization of training programs. In the ccurses offered, the highest drop-out rate was experienced in the courses for skilled workers (about If) percent in the Northeast versus 12 percent in Brazil at large). But, in other courses such as for technician, teacher and managanel;t and supervisory personnal training, the number of trainees successfully concluding their courses ranges from 95 percent - 100 percent. External Efficiency 54. Because of its direct ,job orientation and its nexibility in course organization and administration, vocational training is effective, although still short of meeting the training requirements of new or existing enterprises in the Northeast. The effectiveness of such training could be enhanced further with better resource allocation and new training schemes to assist in the remedy of chronic labor market problems. Recent interest in developing some programs to train chronically unemployed should be en- couraged. Limited labor market information from Ceara and Pernambuco shows a chronic unsatisfied demand for qualified assistant accountants and ad- ministration workers. Future absorption of hotel office nersonnel in Per- nambuco was found to have a high potential. In blue collar jobs, the most critical shortages are identified in occupational fields that include elec- tricians, mechanics and welders. 55. While there are vocational training programs which are oriented in meeting some of the above shortages, they are not sufficient to meet all the requirements. The constraints in program organization in SENAC are primarily financial~ while in SENAI both physical and financial. A more efficient manner of meeting the more spe cialized industrial manpower require- ments of the Northeast could be the expansion of training for selected skills on a regional basis. This is currently done for textile training with one center serving the needs of the whole regionQ - 16 - III. LABOR FOHCE: EDUCATIONAL ATTAINMENTS, DEl1A.ND AND SUPPLY FOR THE 1970 I S A. Educational Attainments 6. Similar to the regi onal literacy di.ffe rence s (para. 18), the ducational attainments of the Northeast labor force lag considerably those f Brazil at large. The 1970 census shows that about 63 percent of the conomically active of ten year s of age and above had none or less than one ear of schooling in the Northeast, while the corresponding proportion for he whole country was 36 percent. (The differences would, of course, be =centuated if Northeast was excluded from the Brazilian averages.) 7. As indicated in Table 4, the differences among the educational ttainmants of the labor force in Northeast and Brazil at large prevail for Lmost all economic activities, except for public administration among those no have had schooling of ten or more years. The higher the educational evels considered the greater are the differences in educational attainments. 91atively less provision of higher education in the Northeast would account or some of these differences, but the migration from the Northeast of arge numbers of better educated personnel would certainly bea very sig- Lficant factor as well. The chronic lack of educational opportunities n rural areas is strongly reflected in the data on educational attainments n agricultural activities where the Northeast region shows the greatest and ::1st serious lag in such at.taiments at al.l levels of education. 3. 'While the more limited formal education background of the workers 1 the Northeast can be and is being complemented by non-formal training such , vocational, on-the-job and in-service training, nevertheless, it is quite Lkely that the lag in educational attainments affects, relatively, their ~ductivity and influences their adaotability to new technology. Because , lack of other reliable data, if the distribution of educational attainments !re to be liberally transformed to a manpower distribution by occupational !vel, with the highest levels of educational attainments corresponding to ,gher-level manpower, one could deduce that there is a spread of occupational .sks not commensurate.to training backgrounds, i.e.,9rofessional staff tending sub-9!'ofessional tasks and unqualified lower personnel involved in pervision and sub-professional areas. Field visits by the mission confirm is. There are no sufficient data for comparison of labor force rticipation rates by age groUps and educational attairnnents. Census data jicate that it is not until the tenth year of education or more, (corresponding upp er secondary and university education), that the participation rates educational attairnnent are significantly higher than those of the other ~ego~ies. This is shown in Table S and in more detail in Annex 7. The data in Table S show that for both the Northeast region and tzil at large, the maj ori ty of those who have had at lee.st up through nine l~S of education were not considered to be economically active at the time - 17 - Table 4: PRoPOln'ION OF POPULllTION OF AGE 10 on MOHE BY LEVELS Oil. YEAtts OF STUDIES None or less Inc omplete 5-9 10-12 13-1'7 Activity Total than 1 year Primary Primary Years Years Years Total Populati.on NE 100 59.2 24.:) 9.2 4.7 2.2 .7 Brazil 100 36.5 29.9 20.0 8.5 3.7 1.4 i~vono:micActive NE 100 62.7 21.8 8.2 304 2.7 1..2 Brazil 100 35.8 28.4 21.3 7.4 4.8 2.] ~ Activity Agric u1 t ure NE 100 79.1 18.6 1.9 .3 .05 .04 Brazil 100 57.6 31. 7 9.6 .8 .20 .1:) Industry NE 100 47.1 30.0 11... 3 5.0 2.8 1.6 B:::'azil 100 21.8 30.2 32.1 9.6 4,,2 2.1 Comrrrerce l'JZ 100 29.7 29.h 22.2 12.2 5.7 .8 Brazil 100 13.8 24.6 35.0 17.5 7.6 1.S Services t,fE 100 46.9 31.6 16.6 3.9 .8 .2 Brazil 100 28.3 32.1 30.7 7.0 1.~ .It Trans" CO!1'L."llun. l-E 100 . 3:).4 30.4 2)~. 9 9.9 3.6 .8 B!!azil 100 15.0 30.5 37.0 12.2 4.3 1.1 Social Activities. NE 100 8.4 12~8 22.9 13.8 28,,6 13.':> Brazil 100 5.3 10.5 21.6 14,,3 31.8 16.S public Admin. NE 100 13.7 18.3 24.9 20.2 13.9 9. :) Brazil 100 7.4 16.0 29.0 24.1 13.8 9.7 O~~er Activities NE 100 40.4 17.7 13.1 11.0 11. J 6.5 Brazil 100 18.0 15.3 22.5 17.8 17.0 9.4 - 18 - of the census. The steady decline of the proportions of economically active as educational attainments increase is perplexing. It could be partly explained by the fact that these ratios are affected by the population in school, which would be reported as non-economically active. LEVELS OF EDUCATION AND DISTRIBUTION BY ECONOMICALLY ACTIVE AND NON-ECONOMICALLY ACTIVE None or Less than 1 2 3 4-5 6-9 10-12 13-17 1 Year Year Years Years Years Years Years Years Total Population 100 100 100 100 100 100 100 100 Econom. Active NE 46.3 42.1 39.0 37.1 39.3 32.B 53.4 73.5 Braz:il 44.0 43.1 41.9 42.4 47. 8 39.0 57.0 75.3 Non-Econom. Active NE 53.7 57.9 61.0 62.9 60.7 67.2 46.6 26.5 Brazil 56.0 56.9 5B.o 57.6 1)2.2 61.0 43.0 24.7 B. Educational Attainments and Earni~s 61. Data relating educational attainn::mts and earnings are limited (see also volume on employment and income distribution). The discussion below is based on data gathered by the :Ministry of Labor on anployees of in0ustrial, commercial and service establishments in the North- east in 1969Y (All earnings are in 1969 prices.) A detailed breakdown of earnings by level of education, in the above establishments, is given in Annex B. 62. For the purpose of the present analysis, earnings have been grouped into three categories: (a) up to Cr$119, 'Which was about the ave:r.'age !'1inimum salary in the region in that year; (b) from Cr.$120 to Cr.$299; a.'1d (c) 01'$300 or more. About half of the emplo;rees in industry and one -third of those in commerce and services earned up to the minimum wage. These percentages are lower than those reported in the .Mission's volume of employment and income because of the limited coverage of the reported data to the i'iinistr-I of Labor, used in the present 8dtimates. The large majority of those earning up to the minimu.m wage have had only primary education or less. 63. Earnings in commerce and services are considerably higher than those in indUstry, even for the same level of education. The data also II Hinisterio de Trabalho e previdencia Social, Boletim Tecnico de SEPT, ApUT'RC::IO Lei de 2/3 n!. 20, Setembro 1970, pp.24-27. The data reported by employers, represent about one-half of the employees in the industrial sector and about one-third of those in services and commerce. - 19 - indicate greater mobility existing within the service sector than others. The range of earnings accrued to the majority of the service and commerce workers at different educational backgrounds is more extended than that for industrial employees. The attaimnent of some primary education is more crucial in earnings above the minimum wage in the industrial sector, while in commerce am services such earnings extend over educational attainments ranging from incomplete primary through colegio-level education. 64. An analysis of earnings by educational attaiments support further the. points raised in paragraph 58, regarding educational attaiments and occupational responsibilities. Large proportions of employees with low educational background earn incomes which are at the higher range of earnings. For example, about 44 percent of those who earned more than Cr$299 had up through primary education in industry, as compared to about 21 percent in commerce and services. - 20 - IV. EDUCATION FINANCE Formal Education Expenditures • The formal education fincncing system includes both public d private sources and expenditures. private education expenditures are timated to account for approximately 10 percent of total formal education Jenditu:t'es. The multiplicity of sources, transfers, earmarked funds::t and ex- mditures has giveri the -publio- education financing system a complex cnaracter. cause of the Dow of funds among the federal, state, and municipal levels government, a comprehensive and accurate view of the public education nancing effort requires not only the measurement of education expenditures the three levels of government but also the identification of the source l! suppli erll of funds spent. erview of the FinanCing System and. Expenditures • Table 6 on the following page presents the dil~ct education :>endi tures made in the Northeast by the state and municipal govermnents i the Federa.l Ministry of EdUcation from 1964-70, with state and municipal )endi tures broken down by source. During this period state education )enditures acoounted for an annual average of 60 percent of total public ucation expenditures, municipalities expenditures for 12 percent, and the nistr"J of EdUcation expenditures for 28 percent .• state Governments. 'rhe great bulk (about two-thirds) of state ~cation expenditures have been met by the state I s own budgetary revenues rived fran direct and indirect taxes. During the 1964-70 period the ltes spent on education an average of approximately 20 percent of their c revenues and IS percent of their total public expenditures.Y The r~naining portion of state education expenditures has In met mainly by three federally established revenue sharing and transfer )grams which are partially designed to favor the poorer states in Brazil.~/ : most recent of these, the Participation Fund was established in 1967 as 'ederal revenue sharing mechanism to offset state and municipality revenue :ses resulting fran ihe Tax Reform Law of 1966. Since its establishnent, Northeast region has .received an average of about 40 percent of the Fund's The 1961 Law of Policies and Principles and. subsequent constitutional enactments require both states and. municipalities to allocate 20 percent of their tax revenues to education. Each of these prog~s and its formula used for the allocation of funds among states are discussed more fully in Annex 9. Table 6: IDHTHE,'\.:~:T B!iJ;.ZIL PUBLIC EDUCATION EXPENDITURES BY LEVEL OF /'..DHINIST.H.ATION, 1964-70 (Millions Cr $, 1971 prices) 19bL; 1965 1966 19b7 1968 1969 1910 Classification Cr$-% Crr-% crr-% crr-% cr"$-% Crr--% Cr'$-% state E~enditures 248.8 100 343.3 100 280.8 100 334.5 100 419.2 100 492.1 100 543.5 100 - -- Own Budgetary f~sources 167.1 67 208.8 61 193.6 69 210.3 63 266.5 64 372.8 76 417.7 77 participation Fund!! 43.5 13 81.9 20 46 .4 9 h6.9 9 Education Salary 1.5 nil 3.9 1 8.0 2 8.7 2 12.0 2 16.9 3 (state ::.Juota) Education Salary 14.2 4 31.9 11 24.9 7 29.8 7 40.4 8 48.6 9 (Federal Quota) HEC: Primary Ed. Fund 31.9 13 52.1 15 18.9 7 24.5 7 11.7 3 Secondary Ed. Fund 21.6 9 49.8 15 17 8 0 6 16 4 0 5 15.5 h 15.2 3 13.4 2 Other (Foreign Assistance, 28.2 11 17.2 5 14.7 5 6.9 2 5.1 1 503 1 n.a. SUDENE, etc. ) IlliC Direct Exnenditures h 87.7 100 114.2 100 145.6 100 183.5 100 220.7 100 251. 9 100 2890 100 f\) l-' HUniciEal Expenditures 45.7 100 67.9 100 61.b!. 100 70.4 100 146.5 100 86.6 100 73.2 100 Otm Resource ~I 33.7 74 hh.l 65 55.0 90 16.5 23 31.5 22 16.6 19 18.3 25 Participation Fu...'1c8i 49.1 70 94.8 65 49.8 58 54.9 75 l1EC: primary Ed. Fund ~ 26 n~ ..J2 6.4 10 ~ ~ ~ II 20.2 .?J TOT~.L EXPENDITlU1ES 382.2 100 525.7 100 487.8 100 588.4 100 100 786.4 ......... 830.6 100 906.1 100 =-== -...::=: = = ~= =---- -== "*'" liSe: -=-= ===oDe ~ ==- state Ex. as % of Total 65 65 58 57 53 60 60 HEC Ex. as ~ ·of Total 23 22 30 31 28 30 32 11UniciEal Ex. as ~ of Total 12 13 13 12 19 10 8 II Fifteen percent of total Participation Fund receipts of Northeast states. '21 Estimated at one-third of municipality education expenditures from Participation Fund receipts. 31 Twenty percent (legal minimum) of municipality Participation Fund receipts. - 22 - allocations to states and municipalities.!! The Northeast states have been spending on education approximately 15-20 percent of their Participation Fund receipts. 69. The Education Salary Fund was established by the Government in 1965 to provide earmarked funds to the states for primary or fundamental education by means of a payroll tax equivalent to 1.4 percent of the legal minimum wage multiplied by the number of employees on the payroll of e,ach private and. public enterprise contributing to Brazil's social security system. One-half of the tax remains in the state where it is collected and the other half is channelled to the Ministry of EdUcation for reallocation among the states. Between 1965-70 the Northeast states received an average of 42 ;:>ercent of these reallocations. 110st of these receipts (75 percent) repre- sented a net transfer~ from the rest of Brazil. 70. The third federally established source of funds for state education eXDendi tures has been the primary and Secondary EdUcation National ~'unds, which provide transfers from the federal 11inistry of Education's budget. ?~om 1964 to 1968, when they began to be phased out, transfers from th~se f"..lnds amounted or. average to an estimated 15-20 percent of the m.nistry's budget. During this period the Northeast region received an annual average of 42 percent and 34 percent resp ectively . of the Primary and Secondary Education Fund transfers. 7l. Table 6 shows that only a very small percentage of state ~duc8.tionexpenditures in recent years has been provided by other sources )f finance such as foreign assistance (principally U&~ID and IDB) and. SU'DENE. Current and planned education sector loans by U3.tUD include several ~ortheast state s and., consequently, will increase thi s percentage.lI "(2. Min1st~ of Education. The l1:lnistry of Education I s direct 3ducation expenditures ~own in Table 6 generally provide the financing for )ne or two federal cole~ios and one federal university in each Northeast 3tate. In 1968 and 1969, the only years for which complete data are available, ! The Participation Fund is composed of receipts fran the Brazilian Industrial products Tax and Federal Incane Tax. Five percent of the Fum is allocated a~ong the stateR and 5 percent a~ong the municipalities. The states and municipalities generally include Participation Fund receipts and expenditures for education within t,he category of those fran their own budgetary resources. Not,ing thp..t the Participation Fund was established to substitute for revenues which they preYiously collected themselves, the states argue that the exclu- sion of t.hese funds fran their own budgetary expenditures l .....ould give a misleading picture of changes in state budgetary commitments to education. ! Total allocations received from the federal level rninus an &'Tlount equal to the state quotas. I See footnote to paragraph .13. - 23 - the Northeast region received approximately 20 percent of the Ministry of Education's total direct expenditures at the secondary level and approxi- mately 18 percent of its total allocation to institutions of higher education. 73. Municipal Government. Municipalities are legally required to spend 20 percent on their tax revenues and participation fund receipts on education. Although data for total municipality education expenditures are not available in Brazil on a regional or state basis, federal and state education authorities estimate that 75 percent of municipality education expenditures are derived from Participation Fund receipts. This estimate excludes Ministry of Education (Primary Education National Fund) transfers, which provided an annual average of approximately 20 percent of total Northeast municipal education expenditures during 1964-69. Sources and E!:l?endi tures : Growth and Trends 74. Educati.on expenditures by level of government have been consolidated according to source of funds in Table 7. Based in part on Tables 6 and 7, the following c~nolusions can be drawn concerning growth and trends in public education expenditures: (a) Overall growth in public education expenditures and unchanged share of Northeast in total Brazil education e~nditures. Total public education expenditures in the Northeast increased at an average annual rate of 15.5 percent growing in real terms from Cr$382.2 willion in 1964 to Cr$906.1 million in 1970 (in 1971 prices). This rate of growth is somewhat larger than the rate of growth in Northeast education enrollments and. slightly greater than the rate of growth of public education expendi tures in Brazil as a whole. However, the rapid rate of growth of Northeast education expenditures was not great enough to improve the North- east's share of total Brazilian public education expenditures. With 30 per- cent of Brazil's population and 20 percent of its enrollments, the Northeast in 1970 accounted for only 14 percent of total national public education expenditures, the same share it accounted for in 1964. (b) Increased share of state financing Although direct education expenditures by the Federal Ministry of Education grew at a somewhat greater rate than state education expenditures, the state share of education financing increased as a percentage of both state education expenditures and total public education expenditures. This can be attributed largely to the marked decline in transfers from the Ministry of Education as a result of the phasing out of the Primary and Secondary Education National Funds. Although the Education Salary Tax transfers have grown impressively, these transfers have not been sufficient to offset the decline in transfers through the Ministry of Education. While the Northeast states' education expenditures and share of overall education financing have grown significantly in recent years, the (Ivf.illions Cr $, 1971 Prices) 1964 1/)65 1966 1957'" 1966 1959 191Q Source of Funds Cr$% Cr$~ C~ % C~% Cr$- % Cr$% cr$ % HEC Budget!! Direct Expenditures 87.7 23 114.2 22 145.6 30 183.5 31 220.7 32 25109 30 289.4 32 Transfers 65.5 17 125.7 24 43.1 9 45.7 8 47 ~4 2 35.4 5 13.4 1 SUb-Total 1~ Ii5 239.9 to nm:-7 39 229.2 39 268.1 34 287,,3 );r 203.8 3J state Budget 167.1 44 208.8 40 193.6 40 210.3 :/J 266.5 34 372.8 45 417.7 46 (Own P..evenues) Participation Fund 92 6 16 0 176.6 22 96.2 12 101.8 11 Education Salary2-' 15.7 3 35.8 7 32.9 6 38.5 5 52.4 6 65.6 7 I f\) c- Hunicipal 33.7 9 44.1 8 55.0 11 16.5 3 3L.5 4 16.6 2 18 3 0 2 (Own Revenues)Jf Other (Foreign 28.2 7 11.2 3 1407 3 6.9 1 5.1 1 5.3 1 n.a. Assistance, SUDENE, etc.) TOTAL 382.2 !Q.Q. 52507 !QQ 487.8 100 588,4 100' 786.4 100 8.30.6 100 906.1 100 - - -- - - - - 1/ Includes Primary and Secondary Education National Fund (transfers) and Direct Expenditures •. "2/ Includes state and Federal Quotas, although the latter is channelled through MEC. 11 Estimated at one-third of municipality Participation Fund education expenditu1~. ,, - 25 - states have been com.'7litting to education a slightly larger share of their o~m total budgetary resources. In 1970, an average of 16 percent of SGate budgetary revenues was committed to education, cOOlpa!'ed ,nth 14 percent in 1964. ~ This slight increase suggests that despite the shift of education financing responsibilities to the states, other sectors of the states' economies have been given a higher priorl ty in allocation of funds and have continued to absorb the bulk of state resources. (c) Decreasing growth of municipality expenditures and sources of education financ8 0 1-1ission estimates of municipality expenditures show a decline after 1968, wh~.ch is partially the result of unusually large Participation Fund disbursements in that year. Beginning in 1970, however, an important impact can be seen in the termination of the Ministry of Education's trans- fers to municipalities for pri~ary education, transfers which accounted for 23 percent of total municipal educa~ion expenditures in 1969. The purpose of terminating these transfers, according to federal authorities, is to in- crease the coordination between state and municipal education authorities. To cornpensate for this loss, an increase in Education Sa18.ry Tax receipts and the transfer of a portion of these receipts by the state to the muni- cipalities are anticipated by federal authorities. public Exoenditures by Level of Education 75. The allocation of the Northeast's total public education ex- penditures substantially favors the primary and higher levels. Of the almost Gr$700 million in public expenditures classified according to level of education in 19705/, 43 percent was devoted to Drimary education, 36 percent to higher education, and only 21 percent to secondary education. frJ way of comoarison, in 1964 primary education received 54 percent of public education expenditures, higher education 21 percent, and secondary education 24 percent. Consequently, since 1964 the share of both ~rimary and secondary education has decreased to the benefit of higher education. 76. The total expenditures at each level of educ:ation in 1970 are broken down according to governmental level in t.he -Gable below: 11 Two notable exceptions are Rio Grande do Norte (where the percentage of state expenditures committed to education increased from 17 percent in 1964 to 23 percent in 1970) and Sergipe (from 12 percent to 21 per- cent. ~ This amount is less than the total public education expenditures due to the exclusion of expenses falling under IICentral Admini strati on 11 , II Traini:ng" , and IICulture" categories in the State Balance Sheets. From 1964-69 IIAdJrri. nistrative Costsl! accounted for an average of 14 percent of state education expenditures. - 26 - Table 8: EXPENDITURE S OF ADMINISTR~TlVE LEVELS AS PERCENTAGE OF TOTAL AT LEVEL OF EDUCATION MEC Direct & Transfersl ! '::,'tates Municipalities Primary 100 13 67 18 Secondary 100 23 73 h Higher 100 88 12 0 11 Includes earmarked transfers (Prima.ry and Secondary Education Funds and Federal Quota of Education ealary Tax). Source: state Balance Sleets and Ministry of Education The data shows that the bulk of public expenditures at the primary and secondary levels are made by the states, with higher education being financed mainly by tne Federal Goverl'1'llent. Comparative data since 1964 reveal that the sta.tes have steadily accounted for a growing oercentage of the public expenditures at every level of education, while the federal share at each level has decreased (see A.nnex 10). 77. Although the states provide a slightly greater share of total public funds spent at the secondary level than at the primary level, a breakdown of the states' education expenditures show that the states commit twice as much of theseexpendi tures to primary education as to secondary education. From the data in Table 8 and Table 9 below it can be seen that less than one-third of state education expenditures provides almost three- fourths of the total expenditures at the secondary level. 78. The breakdown of Federal Ministry of Educ-'l.tion fundiT)'I in the Northe-'lst shows that. 90 percent of the Ministry's direct expenditures go to Lnstitutions of higher education, leaving only 10 percent for federal tech- ~ical cOlegios. Similarly 1 a relatively small share (22 percent) of the Ul"..i '5try r S transfer funds was directed to secondary edUcation. Table ..2 : • - --.-. < ••• EXPENDITURES BY LEVEL OF EDUCATION Primary Secondary Higher State Expenditures 10) 60 31 9 '~ni.stry of Education li)!) 13 :i irect E:t7ndi tures 12 75 1)1) 10 90 !~r,1 ns fel's_1 100 78 22 J!unicipAl "'nul t ure .g2! ';;"ill -' ... JJ._--, ._ 100 90 10 LI Inr.l'lde3 3ducation Ealary Tax (Federal Quota). Cource: 3t ':'8 Bab.nee Sheets and Ministry of Education. - 27 - TyPes of Expenditures: Recurring and Capital!/ 79. Almost all of the Northeast states! own education resources have been used to meet recurrent expenditures (see Annex 11). Between 1964 and 1970 recurrent expenditures accounted for a yearly average of 92 percent of the states' expenditures. During the same period yearly exoenditures for teacher and administrative salaries alone absorbed 84 percent of the states' own education resources. ~lith the present availa- bility of funds, the states cannot afford to devote any significant amount of their own resources to capital investments in education. One result of this is the use of a large number of one-room bQtldings for school class- rooms even though they were not constructed for this pUI'pC"se. 80. In the past, a considerable share of federal transfers was earmarked for capital investments.Y States am municipalities, however, increasingly diverted these investment funds to meet recurring costs, and in 1970 the restrictions on transfer expenditures were removed. Since 1968 about 50 percent of federal transfers to the states for primary and secondary education have been used for recurring expenditures, primarily personnel costs. Although no data concerning the type of expenditures by mun1cinalities is available, it is not likely that the municipalities have devoted any greater share of their transfer receipts to capital in- vestments. In addition, the Municipalities, like the states, spend almost all their own education resources on recurrent expend.ituY'es. 81. Total direct federal expenditures in the Northeast states have shown approximately the same distribution between recurrent and ca- pital expenditures as the states' own expenditures. During the 1964-70 period, 90 percent of federal direct expenditures at the secondary level and 84 percent at the higher level were devoted to recurring costs. 82. Taken together, total public resources used for capital in- vestments in education in the Northeast a~ount to only some 10 percent of total public education expenditures. Unit Costs 83. Overall public education expenditures in the Northeast and data from selected state balance sheets permit an indication of the range of recurrent expenditures per student in state-run schools and federal '17 The 1967, IBRD Economic heport ("\1m-In, Vol \TI), notes a number of difficulties involved in breaking down federal expenditures and trans- fers according to recurrent and capital costs. TWo recent studies have simplified this problem with regard to direct expenditures in recent years (8 ee MEC-Servico de Assistencia Tecnica, IlDespesa Federal Realizada em E:ducacao e Cultura, 1968 and 1969", July 1970; and "Despesa Publica Rea.lizada em Educacao e Cultura, 1967-69", Harch 1971). Calculations re- garding federal transfer and state expenditure breakdowns have been made from state balance sheets and information obtained by US.~D from the state Secretariats of Education. 2/ See Annex 9. - 2B - universities. III 196u and 1970, the range of expenditures was as follows: Primary Secondary Higher!! ~-----------(in 1971 Cr$)------------ 1964 105 - 135 295 - 360 n.a. 1970 160 - 190 33'0 - 390 u,250 - 11,000 Bu. As in most unit cost analyses, the data show a striking difference between the primary and secondary levels, on the one hand, and higher education on the other. This reflects the decentralization of primary and secondary education financing to the states which have more limited funds. 85. Primary education recurrent expenditures per student are much lower at the municipal level than at the state level. In 1970, these expenditures ranged between Cr$35 and Cr$95 (1971 prices), reflecting the lower teacher salaries and related quality of edUcation at this level. In addition, the average municipal primary school ex- penditure per student (about cr$45) has remained relatively unchanged since 196u, whereas the expenditure per student at the state level has grown at an average annual rate of 6.4 percent (from about Cr$l20 in 196u to cr$l75 in 1970). The extremely low expenditures per student at the municipal level reflect the poverty of most of these local governmen ts as well as the financial constrain ts within which efforts to improve educational quality must take place. 86. Despite their recent growth, the relatively low level of per student eA'"Penditures in. the Northeast state school systems can be seen in a comparison with per student expenditures (expressed in 1971 Cr$) in three high income stateswith strong systems of public education: Primary Seconda:z Northeast Average (1970) 175 J60 Guanabara (1969) 336 730 Rio Grande do Sul (1969) 305 938 Sao Paulo (1969) 318 693 The comparison with these states indicates that placing the responsibility for primary and secondary- schooling on the state governments leads to strikingly lower expenditures per student in the poorer states. The existence of federal transfers does not alter this picture, since these transfers are included in the state expenditures above. It is not likely that these differences in-per stUdent expenditures can be overcome without greater federal transfers to the poorer states. 1/ Includes federal universities. - 29 - B. Non-Formal 3ducation Expenditures 87. Financing for the industrial and commercial vocational training ~rovided by SENAI and SENAC is obtained largely from the private sector through the levy of a 1 percent payroll tax on industrial and commercial enterprises. Additional funds are occasionally obtained by state SENAI and SENAC organizations through contracts liith Government agencies, par- ticularly PIPMO and the Ministry of Labor, for specified tr,:z ~ Ii. o Z 1 r . I ~ E-< 1r1. 00 frlO E--:<>:0 I S~E-< ~ ~ «0 f:r3 ;:'::z<>: l"iIo-l(/)« E-< O::H E-< Z I E-<~23 E-:P(/)O ~~c3 frlO-< [.1 I !=lZ 0 • '~l q rr; ~ r1< 0 O::Hp 0:: f-< (f) E-< :-c rJ) ~~~~ 11::0::> . f-< q fL! !=l E-< :>-~ p .-,: ~~ ,-=1 If'-< 0":U) HHt> ~o~ «O::r::l « f.iJ (:l :p::·",r",q 0:: ;:r; q O::OH i I ~ ~., Po. 0:':') t> E--< • Jli~E~~ p., (,1 r~ p.. p.. ri! Po.U)1i1 ~ 0 rIl ~ p.. (11 ~tf)(/) O: rL! q 0 I HO qp~ q q J ~--- q(f)H pq « rxl CEARA STATE SECRETARY OF STATE COUNCIL EDUCATION ADMJJ~ISTRATION OF EDUCATION CABINET OF THE PLANNING JURIDICAL UNIT CONSULTANT EDUCATION & PUBLIC CULTURAL RELATIONS SERVICES DEPARTMENT OF DEPARTMENT OF EDUCATIO SECONDJLqy EDUCATION ASSISTANCE & SUPPORT DIVISIoa OF PRE-PRD-1AR DIVISION OF SECONilAR DIVISION OF PHYSICA EDUCATION EDUCATION EDUCATION . f DIVISION OF li'UNDp.MENTA:l 1 EDUCATION _ ~_ DIVISION OF DIVISION OF SUPPLEMEN- DIVISION OF TEACHER -[ ~~F~I~N=AN=C=E~S~__~ TA..R.Y EDUCATION TRAINING DIVISION OF GENERAL JIVISIm~ OF AUXILIARY DIVISION OF AUXILIAR DIVISION OF SERVICES AC?IVITIES ACTIVTTIES STATISTICS CHART IV. BRAiJl- STflUCTUr~E 1969 (BEFORE INTRODUCTION OF POLYVALENT GINASIOS) _--fRIMARY _ _ _ _- - - ,Y·__ -... MIDDLE LEVEL EDUCATION - - - - . - - - - - - - H I G H t R LEVEL EDUCATIC~~-'-·--....- ION EDUCATION OPERATIONAL ENGINEERS l JOURNALISM, PHYSICAL EDUCATION, LIBRARY SCIENCE NURSING, NUTRITION, I LOWER CYCLE UPPER CYCLE PHILOSOPHY, SCIENCE AND LETHRS (1" DEGREE) (GINASIO) (COLEGIO) "+---1 J 2 }-G] ACCOUNT lNG, ACTU"RIAL & ECONOMIC SC I[NCES, DENT ISTRY, GENERAL SCIENCE SUBJECTS PHILOSOPHY SCiEI"CE & LETTERS (liCENCIADO - GENERAL MIDDLE LEVEL TE'>.CHERS) A 2/ --0--0]---0--0---0- TECHNICAL - AGRICULTURAL ARCHITECTURE 0---0--0---EJ-0l ENGINEERING LAN PSYCHOl.OGY [-::I r.:I I . TECH~JI(AL - COMMERCIAL 1 -DJ~0--[Q--{D-12.J12J -@--0-0--0 FINE ARTS (3-6 Y[Ai{ COURSE) MEDICINE ~-L "'-::LJ~~~-;-: - L..!.J l2.J -L2.J ~ 8 ~ J AGRONOMY -I 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 - ~-- --1 --+--+-----+ ------i----j-----+- --+~----·-I-----l-----------+---_+_--+__+-_+I__+ ~ !'-ICE [>~i\I,m~.\110N TO 5~COi"D,\!.'Y EDUCi,T!Ot~ 1/ THE AGr Gi:OUr RELATIONSHIP ,\f'PLIES ONLY ','tHEN STUDENTS ENTER "'!PA~Y U ~\ v I;---.l(: t \ ..\.1'/, IN t-\ T I( ~'''J PRII/,,,,Y SCHOOL AT I Aim DC ~JOT REPEAT A eli.SS •. GENEitALlY .1Y L'\·\/\·!~~\ll,..»~( ~'~''': ll~-..,jl\ (:liTY ErJr;:u~i'Jc~ STUDi.!.Ji S Ml ULDl~. R~!T)tS ,'\hID ':fl\i.t·\Tr r',\_U~_Tlt~ 2/ IN SOME STATES A FIFTH AND SIXTH ,TAP. OF h: ,',I.\RY EDUC.l,T:CN IS UN,\ [,);, i' S t"~l) II"',T IT lITIClNo, OFFFRED, FOLLO'i:ING WHiCH STUDENTS fNTE~ GI~'·\SIO StCo~m GRADE. 3/ IN SOIM "TAHS THE NORWAl (eLEGIC CCU,~': [XTCI'JD; C"~~ FOUR YEARS. 4/ Ttl[ nCH~ilCI"NS' COURSE: EXT'.~.JDS O'!ER FOU? YEA::S, HiE L:.5T YEAR CONSISTING OF SUPE~VISED INTERNSHIP IN ltoJDUSTKY. , IBRD - 5057 (R) CHMT V (AFTER INTRODUCTlOI" OF POLYVALENT GINASIOS ) PRE- --~----MIDDlE LEVEl EDUCATION - - - - - '... PRIMARY-_-PRIMAr.Y--..... _---HIGHER LEVEL EDUCATION - - -....... _ ..... - 'DUCATION EDUCArION OPERATIONAL ENGiNEERS JOURNALISM, PHYSKAL EDUCATION, Ll3RMY SC IE NCE, NURSING, NUTRITION, PH ILOSOPHY. SC IE NeE lO\V(R CYCLE UPPER CYCU ANDLE ITERS 11 ,t DEG!:FE) (GINASIO) (COLEGIO) r;; ~ ACCOU.'.JTING, ACTU,\RIt,L & ~'J[R/'~ Jj1[2 I .1)1 L r .::..J1.::'.J _. I I [CONOf:!C SCIENCES, DE~!T!STRY, G£NERAL SCIENCE SUaJECTS, I, POLYVALENT OR MULlILA}ERAL .... GIr~AJ..':? _, r r--Et i ---, i r ":". ~.J~'_!): ':'t,L _ . I..· I . J'. PHILOSOPHY, :,CIEI-K( (. LETTERS (LlCHKIADO ' GENERAl. MIDDLE LEVEL TE/,CHE2S) SOC IAL STUDIES & Sr?VIc.E~. ----L~-0--0 A 1 -'()'-'L J-{i}--{3}{,''l''~ REl'l/,] A CLASS, 2/ IN 501: E ~TATl 51 Hc iX1Rt·,',\L COlEGIO COURSE Sh. ,,-'N~),\'\Y l: t\\ Il',lG C"./\,".'.IN ..\T!(lf'.,! WILL EXl! t-JD CJVlR feu': i'[I\f~S. f',\\.T~1i [".\{.'IN"TI,,'I-.JS ref: UNIVU:,IlY EI.JTRIINCf 3/ THE ,[GINIC'hNS' (OUeSE EXTENDS OVER FOUR UNIVU; "I I' "",D 5EPAR,~ll r;,CLiTIC'> YEARS, Hll LA',1 YfAR CCILt. MARY-_- _ - - - B/1~1(; .... EDUCATION _ .....I---HIGHER LEVEL EDUCATION - - -... "-'--L£.V[L _ _--t... _... ATION EtllU;.ATION OPERATIONAL ENGINEERS l JOU~NAlISt,\ I PHYS-ICAl EDUCATION, , LIBRARY SC I( NCE, NUi(SINC, ~,UTRITION, PHILOSOPHY. SC If IKE LOWU CYClE UPPER CYCLE AND LETTERS lis! D[CRf~) f(,/t'''~I()) (CCliCIO) '---EJ-0-G ACCOUNTING, ACTUARIAL & i (CONOt-HC SCIENCES, DENT 151 RY, tOlY'IAlENT GEUERAl selENe [ $USJE(1S, OR PHil 050 PHY. SCIENCE & lET1E2S (Ll(ENCIADO - C;E;,ERAl MUL1llATERAL /,'.! DDLE LEVEL TEACHE'\S) I ! GIJ"A510 SOCIAL s';UDIES & SERVICES II.. k>--'----l I --0-0-0 ! ARCHllECTURE ENGINEEii:ING LAW 1''illOSOPHY . , ------{t] -{D--fI}--0-{B . ..- - 1 : L. -: Iw\UlrilAiERt\l5/: ,1 ... '2 ~- 3:- _I f~c ARTS (3-6 YEAR COURSE) '--_ ... J ... ~. .J ItEDICINf Ht-~--I I ----0-{D-G}-@--{TI )r AGE 1/ 6 7 8 9 10 11 12 13 14 15 21 12 --i---t'---+-- t--+----i----l--:1-~_I-. __oj !;!Qill. I; TIll I,Gf c,r:OL? RELAlIOt>JSHIP APPLIES ONl.Y WHEN SlLJDfNTS [',E~ fRP-.'I,RY SCHOOL AT 7 AND DO NOT RfP[ A1 A ell,SS, 2/ f~J SOIM SI/,I", THt NO~M:\L COlEGIO COURSE )i'>J{);\.;::Y U ,\\'1:'«, t >(At\\iNA110i..J WILL [XHI'-JD C'!H rcu{ YEA~S. UllY 1\,\"\lt!\II\.'N~.f ';; lIt-,lv~;:~ny ff~TR,\NCE 3/ lHE HOINIC:',;,5:" CCLJr.<;f fXT~NDS OVER fOUR Vl.~;!1 Ar~l) I'A.~AT, FACUl j 'i 'i VfJlRS, Hlf l,\',T YlAP. COhl$ISTlNG OF SUP(RVISED ~l Ut<4I\'tK·illt) AND INST11 LJ1iON:, IN1:RNS~11r fr" Ii'.DU;T~Y. -4/A HR/!iI';,\L fC-t:dH \lAR WilL BE PROVIDED rOR AGRICUlllPAl l[CHN;CiANS. 5/ NO DtCISI()~,S '{,WE YET BUN MAOE REGARDING THE INIRODUCTiCN OF MUlTllAllRAL WPf COL£GIOS. " \ . \ BASIC DATA ON PRIMARY EDUCATION, 1970 ANNEX 1 Number Number ministration of Schools . of Classes Enrollment Teachers c* d* c (000) (a) (b) (c) (d) (a) (c) (b) dera1 Brazil 791 1,624 82 2,820 104 29 50 Northeast 201 414 24 . 695 119 35 58 :ate Brazil 54,450 137,369 7,726 285,476 142 27 56 Northeast 9,338 22,573 1,293 41,447 138 31 57 unicipali ties Brazil 81,583 97,627 3,851 124,232 47 31 40 Northeast 39,926 45,008 1,629 57,461 41 28 36 rivate Brazil . 9,312 31,734 1,154 44,878 124 26 36 Northeast . 4,309 10,157 354 13,511 82 26 35 ota1 Brazil 146,136 88,,354 12,813 457,406 88 28 48 Northeast 53,774 78,152 3,300 107,104 61 31 42 unicipa1 r % of Total Brazil 55.8'Yo 36.4% 30.1% 27.210 Northeast 74.2% 57.6% 49.4% 48.0% ,,< Students per school and student/teacher ratios are not meaningful because meaningful because of the shift attendance system and of the large number of part-time teachers. Source: Ministerio da Educacao e Cu1tura, Secretaria Gera1, Securico de Estatistica da Educacao e Cu1tura, Ensino Primario Comum - 1970. PRIMARY EDUCATION INDICATORS ANNEX 2 BY RURAL AND URBAN DISTINCTION - 1970 Urban Rural Total (a) (b) E!nts L 8,066,694 4,745,335 12,812,229 37% =ast 1,847,537 1,452,909 3,300,446 44/0 34,388 111,748 146~136 76% ~ast 15,012 38,732 53,744 72% )(Us L, 137,977 130,377 268,354 49/0 ~ast 36,510 41,642 78,152 53/0 ) 300,118 157,288 457,406 34% ~ast 62,447 44,627 107,074 42% lree: Ministerio da Educacao e Cultura, Secretaria Geral, Securico de Estatistica da Educacao e Cultura, Ensino Primario Comum - 1970. """EX 3 of Brazi 1 ___ Edus,!~~~n Number ':eneral 1,200,935 82.6 219,455 85.6 2,5'10,889 b5.2 , 452,7lu 86.4 167, .0 462,366 46.1 81,7U6 44.1 COr;'~rnercial 155,217 10.7 21. 280 8.3 234,873 7.7 39,U48 7.4 114,819 15,177 lY.6 21'1,101 21. ~ 34,4U5 1::.6 Industrial 40,127 3.2 7.677 3.0 113,207 3.7 19.762 3.8 22,692 2.832 3.7 4Y,522 4.':1 7,YUU 4.3 .-'.zricultural 1,lY3 .5 1.3,'3 .5 11,730 .4 2,235 .4 3,1U2 b51 .8 8.146 .5 1,625 .':1 :Eacr.e"r Training 44.199 3.u t.585 2.~ 85.183 2.8 8.940 1.7 131,185 30.l) 23.152 2'1.'1 262.690 26.2 59,124 31. Y .c",.res 429 .Ul 146 .02 JUu HO:::"re economics 2,322 .07 1,U38 .2 1,OSY .1 374 .2 ',""!r sing 1,292 .04 396 .07 171 0 524 275 10U.U 1,39 040 10U.0 77 JY4 lOU.U I,OU3,385 10U.U I 185,134 100.0 Source: Anuario Estatistico do Brazil, various vears. ANNEX .4 NORTHEAST BRAZIL PRn1ARY SCIDOL 7EACHl:-'iS, 196L.-70 Total NU!'lber - Year of Teachers l of Total. "Normalistas ll "Normalistas" 1964 5,219 5,080 1,246 24.5 1966 7,03~ 6.768 1,815 26.8 1968 9,136 8,706 2,271 26.1 1970 9,76'.. 9,522 n.a. n.a. L!,2;6 4,052 1.04) 25.7 4. 4,0;)1 1.472 36.3 1;::68 5,70:; 5.411 1,645 30.4 1570 ,,650 5,35) n.a. n.a. lS64 12,7t6 12,406 ).802 )0.6 IS':,'" 12 . .1 CO:: 11.3:4 3:1170 30.5 IS;G6 1':, (,(:) 16,E6 5,,27 34.2 ! 15·7J 17. 16,911 n.a. n.a. ] ~,,: ~ 5.::73 5,5J5 9:::;1 18.0 1:'_ ~: 7.:/ :: (;. ~::. 1,377 20.6 1 c:': :' 7.12) 1. 71~ 24.1 1'170 7, 7.557 n.a. n.a. 1.2:"~ 6, 7 1. 322 19.6 9.?~~ ,"' e. . 3 1.902 21.4 '.~ , . l'J.l~-J '"- ~ 9.771 : ,4 2.2;:2 n.d.. 26.3 n.a. 1 ~ .. '., -,. '~ ..... .' b"C'.l 7.72:; 52.0 1'/G l7.:':::-S b.SS~ f.19::' L9.4 1::' <. P.7( 1 (). 0:; '3 1.t.171 58.6 15-(:1 2;).57:; 1;;. TJ7 n.a. n.a. 4,19;) 4.016 1,7!..13 43.4 1;:(6 . 4 . ~20 4,169 1.006 43.3 1966 5,;97 5,1:"4 2.4B9 40.4 1970 5,997 ;, ,576 n.a. n.a. 1764 2,!.J14 2.197 673 .30.6 1966 2.829 2;714 785 28.9 15GB 3,045 2,627 76) 29.0 1970 3,714. ),527 n.a. n.a. 196L. 19,e35 19,835 9,789 49.4 1S-66 21,683 20,1..:09 10,aOO 52.9 196.3 23.,2!.). 22,91q 12,Oll 52.4 1970 25,702 24.902 n.a. n.a. Northeast 1964 76,992 74,709 28,334 37.9 1966 86,263 I 81,641 31,618 38.7 1968 100,056 95,615 39.822 41.6 1970 107,104 I 102,936 n.a .. n.a. 1964 1966 336,9;)3 ! 2j:i,Cee 163,153 54.4 )9) .001 f 346.628 200,334 57.8 1968 423,145 382,360 233,882 61.2 1970 457,406 411,755 n.a. n.a. Source: Annuario Es~atistico de Brasil. various years. NORTHEAST BRAZIL: SENAI AND SENAC i:NROLLMENTS z 1270 A. S3:NAI ENROLLMSNTS B. SENAC ENROLLMENTS Ski ned Management S~"'te Total ApErentices Ttlorkers Technicians SUEervision Teachers Minors Adults Professionals Marflnh:lo 916 237 440 224 5 195 895 144 Pe:"'n:rnbuco 2,602 716 1,11.12 115 575 54 336 1,590 71 S3~':" 2,524 372 1,166 103 741 110 310 1,865 85 .41<'1 5 :);13 757 314 373 70 279 528 62 3ergLoe 1,064 244 507 6 297 10 136 221 86 Pal"'aiba 1,429 639 657 114 19 361 443 151 :ear.:? 1..,797 272 2, '-121 23 1,999 82 479 1,296 199 Pia,-li 3LA 119 163 51 15 143 262 62 Rio Grande do Norte 659 lb7 456 142 14 99 692 17 TO':'AL 15,096 3,())O 7,325 21.17 4,213 309 2,344 7,792 937 Brazil 146,052 40,704 72,366 4,436 26,728 1,818 16,220 80,923 14,409 Northeast as % of Brazil 10.3 7.5 10.1 5.6 15.8 16.9 14.0 9.6 6.5 Source: S!:NAI: Relatorio 1970, Senai Departamento Nacional. SENAG: Relatorio 1970, Senac D3partamento Nacional. NORTHEAST LITERACY: SUMMARY OF MOBRAL RESULTS 1970-71~f Existing Participating Beginning Final Successfully Number of Municipalities Municipali ties Enrollment. Enrollment Alphabetized Teachers 1970 1971 1970 1971 1970 1971 1970 1971 1970 1971 Pernambuco 164 18 122 12,000 99,531 9,800 84,012 5,400 51,077 814 4,068 Ceara 141 21 132 12,584 112,936 9,126 85,183 4,956 49,471 746 4,604 Rio Grande do Norte 150 17 66 5,087 31,200 2,233 25,647 1,472 11 ,350 202 . 1,280 Paraiba 171 24 167 8,519 75,439 6,000 65,892 3,541 33,549 463 3,011 A1agoas 94 14 79 11 ,333 62,380 7,811 45,339 6,255 42,166 576 2,899 Sergipe 74 7 66 5,274 21,688 3,006 15,000 1,815 10,000 491 766 Piani 114 24 107 11,150 89,248 9,243 75,918 5,000 44,911 650 3,431 Bahia 336 22 203 14,812 101,169 n. a. n.a. n.a. n.a. 742 4,047 Maranhao 129 41 -109 - 12,805 99,040 8,553 98,040 5,617 90,000 1 ,560 3,922 NORTHEAST 1,373 188 1,051 93,563 692,631 55,772 495,031 34,056 332,524 6,235 28,028 TOTAL BRAZIL 3,951 611 2,963 509,014 1,632,842 n.a. n.a. n. a. n.a. 25,619 65,311 % N.E. of TOTAL 35% 31% 36% 18% 42% 24% 43% 1/ MOBRAL began function in the last six months of 1970; 1971 data covers first six months of year. Source: MOBRAL .. TOTAL POPULATION AND ECONOMICALLY ACTIVE BY EDUCATIONAL ATTAINMENTS ANNEX (BRAZIL AND NORTHEAST (NE)--1970) Total (NE) 19,031,013 100 11,317,400 100 1,746,535 100 1,599,599 100 1,217,270 100 1,748,852 100 904,702 100 416,579 100 140,076 wo Northeas t ('7.) 100 59.2 9.2 8.4 6.4 9.2 4.7 2.2 .7 Brazil (%) 100 100 36.5 100 8.2 100 10.6 100 11.1 100 20.0 . 100 8.5 100 3.7 100 2.4 100 &con. Active (NE) 8,361,676 43.9 5,242,391 46.3 734,515 42.1 623,172 39.0 451,215 37.1 687,984 39.3 297.,153 32.8 222,305 53.4 102,941 73.5 Northeast ('7.) 100 62.8 8.8 7.5 5.4 8,2 3.4 2.7 1.2 Brazil (7.) 100 44.8 35.8 44.0 1.9 43.1 10.0 41.9 10.5 42.4 21.3 47.8 7.4' 39.0 4.8 57.0 2.3 75.3 Agriculture (HE) 5,157,798 27.1 4,080,297 36.0 472,353 27.0 327,645 20.5 158,653 13.0 98,669 5.6 14,733 1.6 3,060 .7 2,388 1.7 Northeast (%) 100 79.1 9.2 6.4 3.1 1.9 .3 .05 .04 Brazil (7.) 100 19.9 57.6 31.3 10.3 25.0 11.6 21.5 9.8 17.4 9.6 9.5 .8 1.9 .2 .9 .1 1.2 Industry (NE) 903,752 4.7 425,353 3.7 82,267 4.7 96,931 6.1 84,748 7.0 129,525 7.4 45,288 5.0 25,585 6.1 14,055 10.0 Northeast ('%,) 100 47.1 9.1 10.7 9.4 14.3 5.0 1.8 1.6 Brazil (%) 100 8.1 21.8 4.B 7.0 6.8 10.2 7.7 13.0 9.3 32.1 12.8 9.6 B.9 4.2 8.9 2.1 12.6 COIl:IIlerce (NE) 555,220 2.9 165,480 1.5 49,B04 2.9 56,614 3.5 56,908 4 •.6 123,23~ 7.0 67,501 7.5 31,469 7.7 4,205 3.0 Northeast (%) 100 19.7 3.0 10.2 10.2 22.2 12.2 5.7 .8 Brazil (%) 100 4.1 13.8 1.5 5.6 2.7 8.2 3.1 10.8 3.9 35.0 7.0 17 .5 8.2 7.6 8.1 1.5 4.4 Services (HE) 713,244 3.7 334,572 3.0 74,994 4.3 76,585 4.8 73,651 6.1 118,273 6.8 28,151 3.1 5,577 1.3 1,441 1.0 Northeast (7.) 100 46.9 10.6 10.7 10.3 16.6 3.9 .8 .2 Brazil (%) 100 4.9 28.3 3.8 7.9 4.8 11.0 5.1 13.2 5.9. 30.7 7.6 7.0 4.1 1.5 1.9 .4 1.3 Transport, Storage & Communications (HE) 227,457 1.2 69,171 .6 19,B76 1.1 23,547 1.5 25,447 2.1 56,677 3.2 22,598 2.5 8,295 2.0 1,846 1.3 Northeast (HE) 100 30.4 8.7 10.5 11.2 24.9 9.9 3.6 .8 Brazil (%) 100 1.9 15.0 .8 6.3 1.5 10.2 1.8 14.0 2.4 37.0 3.5 12.1 2.7 4.3 2.2 1.1 1.5 Social Activities (NE) 295,614 1.6 27,713 .2 8,312 .5 11,712 .7 17 ,832 1.5 67,749 3.9 40,7 9 5 4.5 84,503 20.3 39,998 28.5 Nor tbea. t (HE) 100 8.4 2.8 4.0 6.0 22.9 13.8 28.6 13.5 Brazil ('%,) 100 2.1 5.3 .3 2.1 .5 3.3 .7 5.1 1.0 21.6 2.3 14.3 3.6 31.8 IB.2 16.5 26.1 Public Adminis. (NE) 238,195 1.3 32,365 .3 11,747 .7 14,856 .9 17,010 1.4 59,427 3.4 48,212 5.3 33,10B 7.9 2l~470 15.3 NOrtheast (HE) 100 13.7 4.9 6.3 7.1 24.9 20.2 13.9 9.0 Bra>:il (%) 100 1.7 7.4 .4 3.4 .7 5.1 .8 7.5 1.2 29.0 2.5 24.1 4.9 13.8 6.5 9.7 12.5 Other Activities (HE) 270,376 1.4 109,268 1.0 15,344 .9 15,282 1.0 16,966 1.4 35,425 2.0 29,875 3.3 30,678 7.4 17 ,538 12.5 Northeast (HE) 100 40.4 5.7 5.7 6.3 13.1 11.0 11.3 6.5 Brazil ('%,) 100 2.1 18.0 1.1 3.9 1.1 4.9 1.0 6.5 1.3 22.5 2.6 17 .8 4.7 17.0 lO.3 9.4 15.7 Non Economically 10,279,357 6,075,009 53.7 1,012 ,020 57.9 976,427 61.0 766,055 62.9 1,060,868 60.7 697,549 67.2 194,274 46.6 37,135 26.5 Active (NE) Northeast (HE) 100 56.5 9.3 9.4 7.1 9.8 5.7 1.9 .3 37.0 56.0 8.4 56.9 11.2 58.1 11.6 57.6 18.9 52.2 9.4 61.0 2.9 43.0 .6 24.7 Brazil (7.) 100 55.2 Source: Tabulacoes Avancadas do Censo Demografico, VollUlle 8, Receanseamento Gera1, 1970. Results have be~n aggregated for incorporation in this table for Region II (Maranhao and Plaui); Region III (Ceara, Rio Grande do Norte, Paraiba, Pernambuco, A1agoas and Territorio de Fernando de Noronha); Region 5 (Sergipe and Bahia); and Brazil at large. EARNINGS AMD EDUCATIOIIAL BACKGROUND, 1969* COIIIIDCE ~ SERVICES Earnings 1111 teratea Incomplete Complete IneClllrj)lete Complete Incomplete Incomplete .crplete Not Primary Primary Ginasio Ginasio Collegio Universi ty -j,ivers1ty Declaring Total Lese than CR$1l9 7.0 30.3 31.6 11.4 ~ .6 i .2 4.3 ""<,'--" 76,899 1.5 49 1 " 95,726 CR$120-CR$299 1.3 ~.2 0.3 0.7 4 59,842 Hore than ClI.$299 17.5 2.3 15.1 211 2 2S 2' 5.1 2.9 232,46t Total 8,288 6,792 100 Complete Incomplete Complete Incomplete COIplete Not Ginas10 Collegia Collegio University University i Declaring Total I .8 i I .5 .3 .02 .02 i 1 '15.7 6.7 3.2 1.3 57.7 .05 . lQ~.589 " .5 9,255 4,757 9,958 287,279 • Numbers are prOportions of total:. The proportions in the upper part of the hoses correspond to the totsl at the end of the horizontal se in the lower part of t e axes correspond to the totals on the vertical eolUllllls 4euotiog educational attainments. Source: Kinlsterio do Trabalho e Prevideneia Social - Boletim Tecnico dB set. - Apuracao Lei de 2/3 - No. 20, Setembro 1970. ANNEX 9 Page 1 of 3 FEDERAL TRANSFER PROGRAMS FOR EDUCATION I. National Education Plan (Plano Nacional de Educacao - PNE) 1. Since its inception in 1964, the PNE has been defined as a redis- tributive mechanism designed to maximize educational opportunities and improve the quality of education. The PNE was financed by the National Education Fund, which according to the Law of Policies and Principles was to receive 12 percent of total federal tax revenues. From the monies collected, one-tenth was held for administrative and overhead costs, and the remaining nine-tenths was to be divided into three equal portions for allocation to the Elementary Education National Fund, the Secondary Educa- tion National Fund, and the Higher Education National Fund. In practice, however, the Higher Education Fund received over one-half of the monies collected. The earmarking and allocating formula established by the Law of Policies and Principles was revoked by the Constitution of 1967, leaving the allocation of federal budgetary funds to education at the discretion of the Ministries of Finance and Education. 2. Funds received from the PNE represented 65 percent of the Elementary Education National Fund and were transferred through the Ministry of Education to both state and municipal governments through specific agreements entered into annually. The transfers were made under special equalization criteria using the following formula: 85 percent of the funds were to be disbursed in proportion to the enrollment deficit for children in the 7-14 age group in the state; 5 percent in proportion to the number of certified teachers practicing in the state; and 10 percent in proportion to the number of students enrolled in the third grade and above in rural sc~ools and in the fourth grade and above in urban schools. 3. Funds received from the PNE for secondary education represented 95 percent of the Secondary Education National Fund and were transferred only to state governments. TlE formula used for allocation among the states was the following: 20 percent in proportion to the population of the states l municipalities with no secondary school; 35 percent in proportion to the number of primary school graduates and inversely to the per capita income in the state; 20 percent in proportion to the population in the 11-18 age group and inversely to the number of public secondary education openings in the state; 20 percent for aid in supporting and enlarging the system of normal schools at the ginasio level, distributed in proportion to the number of untrained teachers in primary schools; and 5 percent for technical assistance, mainly for the execution of an emergency program to train teachers in secondary education. 4. Beginning in 1965, 40 percent of PNE funds was to be used for re- current expenditures and 60 percent for capi tal expenditures. This ratio was to be gradually inverted until 1970 when 60 percent of PNE funds would be earmarked for recurrent expenses and 40 percent for capital expenses. These restrictions were removed in 1970. By 1971 the PNE was virtually phased out, with transfers being made only for obligations incurred but not disbursed prior to 1971. ANNEX 9 Page 2 of 3 II. Education Salary Tax (Salario Educacao) S. The Education Salary Tax was legislated (Law No. 1·.440 in October 196h) for the purpose of tapping the private business sector as a means of supplementing public efforts in the financing of primary education. The tax is e(1ui valent to loll percent of the legal minimum wage multiplied by the total numb~;r of employees on the payroll of all public and private concerns Hhieh contribute to the social security progrrun. One study has estimated that about 500 thousand enterprises contribute to this program, 'ltrith some So thous"'1ld 2ccounting for approximately 90 percent of the education salary tax collections.lI Firms with more than 100 employees which maintain their o"m primary schools or pay scholarships for their employees and their children of element9.ry school age are exempted from the tax. 6. The Education Salary Tax is collected by the National Institute of Social Security (INPS), which holds 0.5 percent to defray collection costs. Of the remaining 99.5 percent, one-half (the state's "quota") is deposited in the account of the Primary Education State Fund in the state ",here the collections are made. The other half (the federal "quota") is credi ted to the Primary Educational National J~und in the Federal Ministry of Education. Funds deposited in the states are spent exclusively for primary education in accordance with plans formulated by the State Boards of Education. Funds deposited with the Ministry of Education are also earmarked exclusively for primary education and are redistributed among the ste.tes mainly on the basis of an index of illiteracy rates and population. The formulo for redistribution has been read,iusted frequently, and the Ministry of Education intends to develop a multi-variable formula similar to that used for PNE funds. Beginning in 1970, restrictions regarding the use of Education Salary funds for recurrent and capit.al expenditures (similar to the PNE) T,rel'e removed. 7. Jleg5:'.n:Lng in 1971, the Education Salary Tax 'i"f?pre:::.:ents the only transfer from the Ministry of Education to the st.ates. Its scope has been boadned to include the new cycle of basic educ:ation (grades 1-8). The Ministry of Education has proposed an increase in the tax from 1.4 percent to 2.2 percent wIth the objective of raising enough funds to finance at least 20 percent of the expenditures mpde by the states at the basic educa- tion cycles. III. Participation Fund (Fundo de Participaca.o) R. Under the Tr!x Reform Law (Law No. 5172) of 1966 state and municipal governm.ents 1-vare no longer allowed to collect as many taxes as before. The PRrticipation Fund was then established as an element of the Reform especially designed to offset the revenue losses that resulted from the reduction in tax por.rer at the sta.te and municip8.1 levels. 9. The Participation Fund is composed of 10 percent of the total collection of the Federal Income Tax and the Industrialized Products Tax. The monies credited to the Fund account are distributed equally to two sub- funds: The Participation Fund designated for the 22 states and the Federal I J ANNEX 9 Page 3 of 3 District and the Participation Fund designated for Brazil1s some 4,000 municipalities. 10. The Participation Fund of the states and Federal District is distributed proportionally to the land area (5 percent of the Fund) and to the "Individual Coefficients of Participation" (95 percent of the Fund). The "Individual Coefficients of Participation II are computed based on the population and the inverse of the per capita income. The Participation Fund of the municipalities is distributed for the state capital municipalities (10 percent of the Fund) using the criteria of the IIInm vidual Coefficients of Participation" considering the municipality population and the state per capita income. The distribution coefficients for the non-capital munic- ipalities (90 percent of the Fund) are simply based on the population factor. 11. By force of legal provision, beginning the year of 1970, 20 percent of the PB,rticipation Fund transferred to states, the Federal District and nnmicipalities is to be used in education_. ANNEX 10 TOTAL NORTHEAST PUBLIC EXPENmTURES AT EACH LEVEL ACCORDING TO SOURCE, 1964-70 (Millions Current Cr$) ME C Direct and YiO,ar Level tot a 1 Transfers S t a te!/ MuniciPalJl ot b e r Cr$ % Cr$ % Cr$ % Cr$ % Cr$ % !:26l! Primary 30.1 100 5.3 18 16.6 55 5.0 17 3.2 11 Secondary 13.4 100 5.5 4l 5.8 43 0.6 4 1.5 11 Higher 11.9 100 11.5 97 0.4 3 0 0 1965 Primary 72.3 100 23.5 33 34.5 48 10.3 14 4.0 b Secondary 29.1 100 15.7 54 11.7 40 1.2 4 0.5 2 Higher 19.1 100 18.2 0.9 0 0 L966 Primary 78.5 100 20.5 26 36.1 46 17.8 23 4.1 5 Secondary 32.4 100 11.4 35 17.9 55 2.0 6 1.1 3 Higher 49.9 100 47.3 95 2.6 5 0 0 1967 Primary 127.3 100 24.9 20 72.6 57 27.3 21 2.5 2 Secondary 47.6 100 15.2 32 28.9 61 3.0 6 0.5 1 Higher 81.4 100 77 .0 95 4.4 5 0 L968 Primary 212.6 100 35.5 17 109.3 51 65.2 31 2.6 1 Secondary 78.2 100 21.7 28 48.9 63 7.3 9 0.3 nil Higher 125.6 100 112.8 90 12.8 10 0 L969 Primary 242.2 100 41.8 17 155.7 64 41.4 18 3.3 1 Secondary 112.5 100 24.1 21 83.6 74 4.6 4 0.2 nil Higher 182.4 100 159.3 87 23.1 13 0 0 0 -970 Primary 300.8 100 40.8 13 205.3 67 54.7 IB 1 Secondary 147.0 100 33.9 23 106.9 73 6.1 4 nil Higher 250.3 100 219.4 88 30.9 12 0 0 0 ./ State and Municipal include £UndO de Participaqao / Assumes 10% Municipio total expenditura:3 are for secondary education OTE: Table not equal to total public education expenditure because excludes Central Administration and Training and Culture ANNEX 11 CURRENT AND CAPITAL PUBLIC EOOCA.TIW EXPENDt't'll'RES Dr SOURCE AND LEVEL OF EWCA.TION, 1964-70 (mil11ons current. Cr$) MEC Trans. Feder~/ MEC Trans. to Munid- Hunici- State!! Direct Expen. 'to States palitieal! palitie~!Other 1964 Current 16.4 2.1 1.6 4.5 0.9 PRIMARY Capital 0.2 ).2 0.2 0.5 2.) Current 5.6 1.) 1.6 0.5 . 0.3 SECONDARY Capi tal 0.2 0.6 2.0 0.1 1.2 Current 0.3 9.6 HIGHER Capital 0.1 1.9 1965 Current 33.9 6.0 5.0 9.3 1.0 PRIMABI Capital 0.6 11.3 1.2 1.0 ).0 Current 11.4 2.6 5.3 1.1 0.1 SECIJIDARY Capital 0.3 0.2 7.6 0.1 0.4 Current 0.8 14S HIOHER Capital 0.1 3.7 1966 Current J4S 7.1 1.6 16.0 1.6 PRIMA.RI Capital 1.6 11.1 oS 1.8 2-S Current 11·7 4S 2.9 1.8 0.1 SECOODARY Capi tal 0.2 OS ).5 .0.2 1.0 Current. 2.1& 40.1 HIGHER Capital 0.2 7.2 1967 Current 71.0 9.6 2.0 22.4 1.4 PRIMARY Capital 1.6 1).1 0.2 4:8 1.1 Current 26.4 7.) ),.9 2.5 0.) SECOO lJA.RY Capital 0.$ 0.8 ).2 oS 0.2 Current 4.) 64.1 HIGHER Capital 0.1 12.3 1968 Current 9505 11.0 10.4 53.8 0.8 PRIMABI Capital. 13.6 12.9 1.2 11.1& 1.B Current 41.0 11.4 5.2 6.0 0.1 SECQlDARY. Capital 1.9 1.3 ).6 1.3 0.2 Current 9.0 94.8 HIGHER Capital 3.8 IB.O 1969 Current 129.6 14.6 12 •.6 34.1 1.4 PRIMARY Capital 26.1 13.2 1.4 7.3 1.9 CUITent 66.7 12.1 4.1 3.B 0.1 SECOODARY Capi tal 16.9 IS 6.1& 0.8 0.1 Current 13.8 131.6 HIGl:!ER Capital 9.) 27.7 19ro2i Current 169.2 16.B 45.2 n.a. PRIMARY Capital )4.1 20.0 9.5 n.a. CUrrent 85.7 20.5 5.J 5.0 n.a. SECOOllARY Capi tal 21.0 2.) S.B 1.1 n.a. Current 22.7 18).8 n.a. HIGHER Capital 8.2 )5.6 !I Includes state quota of Education Salary Tax (see Appendix ) and actual Participation Fund expenditures on education. Totals of state capital and current expenditures do not equal total state expenditures due to the inclusion in the latt.er of expenditures cate- gorized as adrrJniatratlon, training, and culture. £! Ministry of Education expenditures for federally-supported universities and secondary technical school.s. Capital and Recurrent expenditures for 1964-67 are based on the breakdown fo r 1968-69. 11 Capital expenditures estimated at 10 percent. of total. W Includes Participation Fund receipts for education beginning in 1967. It is estimated that 20 percent of these receipts and 10 percent of the municipalities' own education resources are used for capital expenditures. Secondary "ducation iH estimated tv ac""unt for 10 percent of current and capital expenditures 2/ Cenital and recurrent breakd0wo baRed on 19~R-n9 avera~eB. NORTHEAST EXPENDITURES, 1968-71 (Thousands current Cr$) 12bS 19b2 1270 1271 State Nat'l State Nat'l State Nat'l State . Nat'l State Quota Assist. Quota Assist. Quota Assist. Quota . Assist. Alagoas 182.6 1$7.6 211.4 191.7 33402 24$.4 44$.3 397.4" Bahia 193$.0 $10.7 1760.2 6$7.2 1844.0 887.2 3186.2 llOO.6 Ceara $$9.4 211.1 674.9 241.7 924.1 383.4 1109.0 $80.6 Maranhao 121.9 160.6 116.2 181.0 179.4 223.2 178.2 32$.2 Paraiba 199.6 165.6 468.2 191.6 410.0 2$1.7 376.2 $08.6 Perntlmbuco 1186.9 531.0 20$4.0 $44.1 2290.4 613.2 3423.9 1244.2 '- Piaui 99.$ 128.5 93.4 1$1.4 138.2 21$.0 108.4 344.3 Rio Grande do Norte 126.7 1$1.4 22).$ 187.6 222.9 22$.0 22$.9 386.7 Sergipe 198.8 144.0 271.6 180.) 274.6 2$1.4 227.2 409.2 Total Northeast 4610.4 2160·5 5873.4 2532.6 6617.8 3295.5 9280.3 5226 •8 TOTAL (1+2) 6770.9 8406.0 9913.3 14$77.1 Total Collected in Northeast fState Quotas ~ .85 5424.0 6202. 8 778$.6 lQ918.0 Net Transfer 1346.9 1496.2 2127.7 3659.1 %of Total Expenditures 20% 18% 21% 2$% 1. State Quota is equal to 85 percent of the payroll tax of industrial enterprises, as collected by INPS in each state (the remaining 1$ percent is transferred to the National Administration of SENAI) 2. National Assistance is that amount which each state receives through the redistribution by SENAl's National Administration of part of the 15 percent allotment which it receives from INPS in each state. NATIONAL SERVICE OF COMMERCIAL APPRENTICESHIP (SENAe) NORTHEAST EXPENDITURES, 1968-71 (Thousands current Cr$) 1966 1967 1968 1969 1970 1971 State State 2!!0ta Nat'l Assist. State 2!!0ta Nat'l Assist. State 2!!0ta Nat'l Assist. State 2!!0ta Nat'l Assist, State 2!!0ta Nat'l Assist. State guata Nat'l Assist . A1agoas 28.9 29.0 68.0 52.8 96.6 51.3 147.1 74,7 2l9.5 95.6 292 0 147,0 Bahia 264.3 363.6 868.7 863.6 1568.1 1836.6 Ceara 132.7 7.,7 209.4 384.5 598.8 641. 3 805.2 Maranhao 34.8 22.2 66.1 35.3 115.5 35.7 154.9 74.5 183. 7 87.0 193.8 150.0 Paraiba 39.3 21. 5 53.1 36.8 135.8 37.5 240.6 87.9 267.5 84.0 294,0 90 0 Pernambuco 297.2 594.6 692.8 1086 7 15890 1839 5 Piaui 23.7 31. 9 27.8 51. 9 104.2 54.0 166.0 86.4 129.5 120.0 126 3 1320 Rio Grande do Norte 30.5 29.5 44.7 47.9 86.0 48.6 145 9 1026 144.5 123 0 209.7 150 0 Sergipe ·16.0 19.3 34.8 31.3 84.8 43.2 157,6 '79.2 152.3 135.0 163.7 138 0 All Northeast ~7.3 • 161.1 1462.1 256.1 2567.9 270.3 3561. 2 505.3 4895.4 644.6 5760.9 807.0 TOTAL (1+2) 1028.4 1718.2 2838.2 4066.5 5540.1 6567.9 TOTAL COLLECTED IN NoaTIlEAST 1084.1 1827.6 3209.8 4451. 5 6119.3 7201 1 (State 2!!0tas) ( .80 ) Net Transfer (55.7) (109.4) (371.6) (385.0) (579.2) (633 2) % of Total Collected 5% 6% 12% 9% 9'I 91- COMPARISON WIlli ALL BRAZIL All Brazil 10.090.0 236.4 20.296.0 3M,..~ 29.981.1 384.6 36 483 6 703.1 47 493.8 908.2 64 965 8 1 203,0 % Northeast 9% 68% 7% 69% 9'7. 70% 10% 72% 10% 711- 9'7. 67% Total Brad1 Expenditures (1+2) 10 326.4 20.664.9 22,365.7 37 186.7 48,402.0 66 168.8 % Northeast 9% 8% 12'%. 10'%. 11'%. 9% 1. State Quota is equal to 80 percent of the payroll tax of Commercial enterprises, as collected by INPS in each state (the remaining 20 oercent is transferred to the National Administration of SENAC). 2. National Ass1s!:ance is that amount which each state receives through the redistribution by SENAC's National Administration of the 20 percent allotment which it receives from lNPS in each state. ANNEX 14 OUTLINE OF MINISTRY OF EDUCATION SECTOR PLAN 1972-74 Estimated MEC Budget§U'Y Fund s .to Project No. Title Be Allocated 1272-74 Project 1 "Operation School" ... Implementation of C~ 537 million Reform of Basic Education Project 2 Construction, Renovation and Equipping of Cr$. 63 million Multi-Purpose Schools (Ginasios (USAID, others: Polivalentes) C1$ 186 milli on) Project 3 Upgrading and Improvement of Teachers for C1:$ 102 million Fundamental and Normal Schools Project 4 Training and Upgrading of Technical Secondary School Teachers Project 5 National Literacy and Supplemental Education Cr'. 44 million Program Project 6 Integrated Program to Assist Students (a) School Lunch Program Cr$ 31 million (b) Scholarship Aid Cr. 72 million (c) Support to Community Organizations Gr. 6 million (d) Aid to Community Schools crt 16 million Project 7 Elaboration of New Mechanisms for Financing Education Project 8 Equipping Advanced Centers and Other Federal (Undisbursed portion Establishments of Higher Education of loans from Ger- many and Hungary: US$1209 million) Project 9 First Phase of Construction of University er$ 170 million Integrated Campuses Project 10 Operation Productivity of Higher Education Cr$ 9 million Project 11 Introduction of Post-Graduate Regional Cr$ 378 million Centers and Courses (also USAID antici- pated loan: approx. Cr$ 96 million) Project 12 Study on Career and Compensation Improvement Cr$ 0.3 million Plan for Fundamental School Teachers A.NNU 14 Page 2 Estimated MEG Budgetcp7 Funds to Ict No. ~ Be Allocated 1972-74 Ict 13 Study on Career and Compensation Improvement ci-$ 0.6 million . for Secondary School Teachers Ict 14 Progressive Implementation Plan of Full-Time Cr$ 699 million Teaching Schedules in the Higher Education System Ict 15 Intensive Labor Training Program (PIPMO) Cr$ 0.06 million Ict 16 Integration of School and Business (Adjustment of Course Content and Teaching Methods to Labor Market) Higher Education Cr$ 9 million Secondary Etiucation Cr$ 3.5 million Ict 17 Construction, Renovation and Equipping of Cr$ 110.5 million Federal Technical Secondary Schools (Also IBRU: Cr$ 37.6 million; !DB: Cr$ 72.4 million) Ict 18 Program to Integrate Universities into Com- Cr$ 6.5 million munities (Community Work Experiences for Students) !ct 19 Encouragement to Short-Term Training Careers Crt 6 million (Sub-Professional Training) Ict 20 Establishment of an Advanced System of Cr$ 10 million Educatiorial Technology (SATE) Ict 21 Improvement of the Information System on n.a. Education and Culture 'ct 22 Physical Fiiucati<)U and Sport Program Cr$ 89 million (Fed. Sporting Lottery proceeds) ct 23 Studies Oriented Toward Modernization of Cr$ 1.8 milli on Fundamental School Curricula ct 24 Preservation of the Nation's Heritage Cr$ 33.5 million (Conservation and Restoration of Monuments) ct 25 Program of Encouragement to Cultural C1'$ 17 mill! on Dissemination and Creativity ct 26 Training, Improvement and Qualification of Cr$ 1.9 million Ministry of Education Personnel ANNEX 14 Page 3 Estimated MEC Budgetary Funds to Project No. Title Be Allocated 1972-74 Project 27 Program of Technical Assistance to States Cr$ 1 2.2 million Project 28 Administrative Reform Within Ministry of Cr$ 1 .5 million Education Project 29 School Mapping of Fundamental and Secondary Etlucation Facilities Fundamental Etlucation Cr$ 0.3 million Secondary Education C1'$ 3.6 million Project 30 Implementation of an Open University Credit Cr$ 45 million System for Graduation and Continued Higher Education Project 31 Research on the Establishment of Geo- Cr$ 2.3 million Educational System (Concerning Distribution of Higher Education Schools in Relation to Labor Markets) Project 32 Educational Plans and Research (INEP) Cr$ 44.5 million Project 33 National Book Program Cr$ 33.2 million LIST OF TABLES Table 1: Northeast Brazil: Total Population, Migration, Economically Active Population and Demographic Indicators, 1950-70 Table 2: Outmigrants from the Northeast by Region of Current Domicile, 1950-70 Table 3: Outmigrants from the Northeast According to States of Origin, 1950-70 Table 4: Estimate of Rural-Urban Migration in the Northeast by Age and Sex, 1950-70 Table 5: Estimate of Migration to Major Urban Areas of the Northeast, 1950-70 Table 6: Movements in Sectoral Distribution of the Labor Force in Northeast BraZil, 1950-70 Table 7: Sectoral Shares of Employment: A Comparison Between the North- east, Brazil, and Guanabara/Sao Paulo, 1950-70 Table 8: Structure of Labor Force by Occupation Status in the Major Economic Sectors in Northeast Brazil and Guanabara/Sao Paulo, 1970 Table 9: Part-Time and Full-Time Working in Urban and Rural Activities in Northeast Brazil and in Guanabara/Sao Paulo, 1970 Table 10: Full-Time and Part-Time Working by Age Groups in the Labor Force in Northeast Brazil and Guanabara/Sao Paulo in 1970 Table 11: Part-Time Workers Expressing Preference for Full-Time Work by Major Economic Sector and Actual Hours Worked, 1970 Table 12: Part-Time Workers in Different Age Groups Expressing a Preference for Full-Time 'to.Tork in 1970 Table 13: Weekly Hours of Work Completed in the Major Economic Sectors in the N()rthea~~_ ~rl(Lirl ~?~A:I,~:I,2}()_ ___ _ .. _ _ _.... . Table 14: Number of Hours Worked :per vhek by Different Age Gro~s in . Northeas-t Brazil anciGUanabara/Sao Pfiuio, :I..n 1916--, Table 15: Number of Months worked a Year by Agricultural Labor in Brazil, the Northeast and Guanabara/ Sao PaUlo, 1970 Table 16; Unemployment and Underemployment in Brazil and the Northeast in 1970 Table 17: Movement in Unemployment and Underemployment in Northeast Brazil, 1968-70 Table 18 : Age and Sex Distribution of the Unemployed in Northeast Brazil and Guanabara/Sao Paulo in the First Quarter of 1970 Table 19: Structure of the Population 14 and Over According to Position in the Labor Force by Sex and Age Groups in Northeast Brazil and Guanabara/Sao Paulo, 1970 Table 20: Structure of the Population 14 years and Over Showing Position in the Labor Force and Familial Status, Northeast Brazil and Guanabara/ Sao Paulo Table 21: The Sector of Activity of those Seeking Work in Different Age Groups in 1970 Table 22: Duration of Unemployment by Age Groups in Northeast Brazil and Guanabara/Sao Paulo in 1970 - 2 - T.pble 23: Duration of Unemployment and Means of Work Proourement in the Major Economic Sectors in 1970 Table 24: Those Seeking Work in Different Age Groups, According to Type of Work Found and Method of Procurement in 1970 Table 2,: Size Distribution of Income of the Economically Active Population of Northeast Brazil in 1960 by Sector Table 26: Size Distribution of Income of the Economically Active Popula- tion of Northeast Brazil in 1970, by Sector Table 27: Distribution of Labor Force According to Income Levels by Major Economic Sectors in Northeast Brazil, in 1960 and 1970 Table 28 : Movement in Sector EArnings and Income Differentials and Sector Shares of Labor Force in Northeast Brazil, 1960 to 1970 Table 29: Changes in the Structure of Inter-Branch Earnings Differentials and Employment Shares in Branches of the Services Sector, 196, to 1969 Table 30: Evolution of Legal Minimum Wages, Average Non-Agricultural Earnings and Wage Bill in the Northeast and Brazil, 1960-70 Table 31: Evolution of Legal Minimum Wages in Nominal and Real Terms in Northeast Brazil and Rio/Sao Paulo, 1960-71 Table 32 : Distribution of Non-Agricultural Employers and Self-Employed Workers According to Salary Groups by Branch of Activity in Northeast Brazil Table 33: Evolution of Differentials in the Legal Minimum Wage Between the States of the Northeast, 1960-71 Table 1: NORTlIEAST BRAZIL: TOTAL POPULATION, MIGRATION, ECONOMICALLY ACTIVE POPULATION AND DEMOGRAPHIC INDICATORS, 1950-80 Projections to 1980 1950 1960 1970 Growth Rates Absolute Growth ----- (Thousands)----- 1920=60 1960-70 1950-70" Numbers RRtes (1000) (i p.a.) 1. Total Natural Population 11 18,870 24,309 32,188 3.6 2.9 2.7 41,619 2.6 2. Northeasterners Outside the Northeast 1,025 2,066 3,795 7.3 6.3 5,610 3. Immigrants to the Northeast 128 184 281 3.7 4.4 350 4. Total Population in the Northeast 17,973 22,427 28,674 2.2 2.5 2.4 36,359 2.4 5. %Urban 26.1 34.4 41.8 6. Intercansal Out-Migration 315 1,041 1,729 1,815 7. Intercensal In-.Higratlon 30 56 97 69 8. Outllugration Rate ?l (i) 1.8 4.6 •. 1 6.0 5.0 9. Population of Working Age 1I 11,918 14,9421:1118,490 2.3 2.2 2.2 22,983 2.2 10. As %of Total Population 66.3 66'~1.1 64.5 \ 11. Economically Acti va Population 5,803 7,17J1M. 8,.362 2.2 1.6 1.9 10,359 2.2 12. Inactive Population 6,115 7,769 10,128 2.4 2.7 2.6 12,641 2.2 13. Activity Rates r;} 32.3 32.0 29.2 -0.1 -1 ..0 28.4 14. Participation Rates 21 48.7 48.0 4.5.2 -0.2 -0.6 45.0 15. Ageing Index 11 9.8 W 10.31.1' 10.$ 0.5 0.2 16. Dependency Ratio §! (Total) 85.2 86.41:11 88.1 Urban Areas 78.9 80.6 Rural Areas 90.SW 93.8 Crude Birth Ra tell, 000 21 47.1 46.rl.l 41.9 -0.1 -1.1 27.0 Crude Death Rate/l,OOO '!Q/ 21.0 20.u:tt 13.0 -0.5 -4.4 11.0 11 I.e., born in the Northeast. y Intercensal ontmigration as %total population in terminal census year. y 10-69 years. lit Estimated SI (11)'" (4). §.I (11). (9). 11 Population over 50 as %of total population in the Northeast. §! (Population <:. 15) + (Popllla tion '7 69). . 2.1 Data from BNB/ETENE. lQ/ Data !'rom CBED, Rio. Source: Demographic Censuses, IBGE 1940, 1950, 1960, 1970. Table 2: OUTMIGRANTS FRCM THE NORTHEAST BY REGION 0' CURRENT DOMICILE,19,0-70 l~~O 1~7~ Increment Total i Total i 1960-197C (000) Males (000) Males (000) e Numbers: 116.8 62.02 170.L '7.L, ,3.6 Gerais e Espirito Santo 87.7 ,6.86 206.0 ,6.06 118.3 e Janeiro e Guanabara 2,2., ".08 8,6.6 L9.,L 6OL.1 'au10 387.6 60.31 !L80.5 ,3.,7 1092.9 a 3,., 6,.21 390.0 ,7.50 3,L., mo SuI L.6 7,.72 7.1 6,.87 2., o-Oeste 139.6 '7.92 68L.3 ,6.,3 'LL.7 ..· 102L.6 ,8.83 379,.1 ,3.93 2770.6 a~e Distribution: Gerais e Espirito Santo n.L 8.6 I.., 1.9 1..3 '.L e Janeiro e Guanabara 21..6 22.6 21.8 au10 37.8 39.0 39., a 3., 10.• 3 12.8 mo SuI 0., 0.2 . o-Oeste 13.6 18.0 19.7 · · 100.0 100.0 100.0 Demographic Census, !BOE. Tabulations supplied by NBN/ETENE. Table 3: OUTMIGRANTS FROM THE NORTHEAST ACCORDING TO STATES OF ORIGIN, 1950-1970 Gross Micf-"ation Total % Total % Rate 195 -7C/l (000) Males (000) Males % oss Migration: Maranhao 78.8 53.93 266.2 51.L1 6.1 Piaui 28.2 60.99 12L.1 55.L3 5.5 Ceara 126.8 66.09 1.3).8 57.69 6.8 R.G. ,10 Norte 1.2.6 58.21 181.1. 55.62 8.6 Paraioa 52.1. 66.03 31.1..2 55.05 11.9 Pernambuco 141.5 58.72 690.0 53.78 10.1. A1agoas 100.9 56.68 327.1 52.12 14 .1 Sergipe 56.2 58.71 202.3 52.1.9 16.0 Bahia 397.3 58.91. 1266.1 53.17 11.5 Northeast Total: 1021..6 58.83 3795.1 53.93 9.7 72 Absolute Net Out Migration Net Migration Rate/1 It Migration: (%l - Flow 1950-70 (000) Region I: Maranhao, Piaui 51.7 1.1 Region III: Ceara, Pernambuco, A1agoa. 1132.7 10.0 Region IV: Bahia, Sergipe 920.8 10.8 Northeast Total: 2105.2 7.3 ~ (Migration Increment 1950-7C) : (Total Population in 1970) in each State. I Rough estimates. .. I 1 i I Table L: ESTIMATE OF RURAL-URBAN MIGRATION IN THE NORTHEAST BY AGE A.t'lD SEX, 1950-70 (Total Gains (+) and Losses (-) in Po u1ation During the Period 1950-70) ,Urtsr: Areas Rural Areas Northeast Hales "7~male5 Total Hales Females Total Hales Females Totals o- 9 441.6 440.1 881.8 -938.6 -931.4 -1869.9 -496.9 -491.2 -988.1 10 - 19 278.8 4L4.3 723.1 -567.0 -640.4 -1207.4 -288.2 -196.0 -484.3 20 - 29 300.4 509.7 810.2 -699.6 -590.2 -1289.8 -399.2 - 80.5 -479.7 30 - 39 159.9 219.9 379.8 -:522.6 -511.5 -1034.1 -362.8 -291.6 -654.4 40 - 49 9.7 241.1 250.8 -191.1 -331.3 - 522.4 -181.4 - 90.2 -271.6 50 - 59 116.4 86.2 202.6 - 63.1 -161.3 - 224.4 + 53.4 - 75.2 - 21.8 60 118.8 111.5 230.3 + 11.2 - 79.6 - 68.4 +130.0 ... 32.0 +162.0 Total: 1425.7 20$2.8 3478.5 -2910.8 -3245.6 -6216.4 -154$.2 -1192.8 -2737.9 Percentage Males 41.0 47.8 56.4 Percentage < 30 69.4 70.2 71.3 Percentage > 50 12.4 4.7 ,_-.. ....... '_"'" .•_,~ ."","'''_' ___ ",.'_c,_..." , '-.'~ - ~ ,"' ,."'" Source: rooF/BNE/ EI' ~E Table 2: ESTIMATE OF MIGRATION TO MAJOR URBAN AREAS OF THE NORTHEAST, 1950-70 Net Migration 1950 1970 1950-70 Migration As %of Total ----------- (Thousands)~------------- Population Growth Recife, PE 654.8 1,641.6 1,148.2 48105 49 , Salvador, BA 389.4 1,024.6 707.0 334.6 53 , Forta1eza, CE 237.8 842.1 540.0 420.8 70 , ,joae Pessoa, PB 109.9 28505 157.7 90.9 52 · Natal, RGN 102.5 283.2 192.8 101.7 56 · Maceio, AL 99.1 248.7 173.9 73.1 49 , Sao Luis, MA 88.4 209.6 149.0 52.9 44 , Teresina, PI 51.4 190.3 120.8 99.2 71 · Aracaju, SE 67.5 182.4 125.0 62.7 55 · Campina Grande, PB 72.5 164.9 118.7 36.5 40 • Ilheus/Itabuna, BA 47.9 150.4 99.2 65.5 64 · Feirs de Santana, BA 26.6 129.5 78.0 62.4 80 · Crato/Juazeiro, CE 58.8 106.4 82.6 2.3 5 · Caruaru, PE 4305 102.5 73.0 25.4 43 , Other Towns and Villages 2,694.2 6,417.9 4,556.0 1,549.0 42 · To.1& 4,744.3 11,979.6 8.361.9 3,478.5 !&. tree = IBGE/BNB/ETENE. 'far)J.e 0: MUVl!iJI'J.li.NTi:) J..N "l!ilil'UttAJ" J)u)Tl't.LlSU·l· .LV.N VI' ln~ .I.tIU:lVl\ rVl\\.t.&ll .Ll1 NORTHEAST BRAZIL,1950-70 lverage Innu&! 1950 1960 1970 Absolute Increase -Growth Rates Labor Foree (oeo) 5803 100.0 % (000) 7173 100.0 % (000)' 8362 100.0 • 1950-60 1~370 1.189 1960-70 1950-60 2.2 1960-70 1.6 Agriculture L16L 71. 7 L983 69.5 5159 61.7 819 176 1.8 O.L Industryt 587 10.1 590 8.2 90L 10.8 3 3IL 0.1 L.L ot whicht Mining 2L· O.L 22 0.3 L8 0.6 -2 26 -0.8 8.1 Manutacturing L36 7.5 h08 5.7 558 6.7 -28 150 -0.7 3.1 Utilities 5 0.1 10 0.1 23 0.3 5 13 10.0 8.7 Construction 122 2.1 150 2.1 275 3.3 28 125 2.3 6.2 tertiary: 1052 18.1 1600 22.3 2299 27.5 5h8 699 h.3 3.7 ot which. Commerce 263 h.5 356 L.9 597 7.1 93 2h1 3.1 5.3 Services 613 10.6 991 13.8 1358 16.2 378 367 h.9 3.2 Transport 135 2.3 209 3.0 218 2.6 7L 9 L.5 O.L Others h1 0.7 4L 0.6 126 1.5 3 82 0.7 11.1 Source. IBGE/SUDENE. Table 7: Sl:CTORAL SHARES OF EMPLOYMENT: A COMPARISON BETWEEN THE NORTHEAST, BRAZIL, AND GUANABARA/SAO PAULO, 1950-70 Comparisons with Brazil (Each Sector in Brazil ~ 100) 1950 1960 1910 1950 1960 1910 Brazil Agriculture 59.9 51.6 44.2 Industry 13.7 14.9 17.8 Servioes 26.4 33.$ 38.0 Total 100.0 100.0 100.0 Northeast Brazil Agricul.ture 71.7 69.5 61.1 119.1 134.1 139.6 Industry 10.2 8.2 10.8 74 .. 5 55.0 60.1 Services 18.1 22.3 27.$ 68.6 66.6 72.4 Total 100.0 100.0 100.0 GuanabaraLSao Paulo Agricul ture n.a. 17.1 n.a. )8.1 Industry n.a. 29.5 n.a. 165.7 Services n.a. 53.4 n.a. 140.5 Source: Demographic Census lEGE 1950, 1960, 1970. Table li: S1RtrGT1JRE 0l1' LABOR FORCE BY OCCUPATION STATUS IN THE r-'.AJOR EtxmOMIC SD:,-rOR..'i nl' NORTHEAST BRAZIL AND GUANABARA/SAO PA U'I.D, 1970 ~----------.----~--~----.-----------------------.......,;Sl"'"ec""":t~o--r- Percentage Distribution Without Shares in EmElozees Se1t-Emp1oyed E!p1ozers Remuneration Total 1970 ~ortheast Brazil: 100.0 Agriculture 23.5 60.0 1.0 15.5 100.0 61.7 Industry 72.3 25.7 0.9 1.1 100.0 10.B Commerce L1.3 55.L 2.5 0.8 100.0 6.6 Other Services 75.1 18.8 0.2 5.9 100.0 20.8 or which: Personal Services 68.0 31.3 o.L 0.3 100.0 8.5 Transport 77.8 21.3 O.L 10.5 100.0 2.7 Public Administration, Other 80.1 6.9 0.1 12.8 100.0 9.6 Guanabara/Sao Paolo: 100.0 Agriculture 50.7 35.5 2.5 1l.L 100.0 17.1 Industry 89.2 8.6 '1.9 0.3 100.0 29.5 Commerce 62.9 30.6 5.6 0.9 100.0 12.3 Other Services BL.8 l1.L 0.5 3.2 100.0 L1.2 Of' which: Personal Services 82.3 16.7 0.7 0.2 100.0 15.0 Transport 82.1 17.2 0.5 0.3 100.0 6.h Public Administration, Other 88.3 5.11 0.3 6.0 100.0 19.8 Source I DemogrGphic Canau s, IBGE 1970. Table 9= PART-TIME AND FULL-TIME WORKING IN URBAN AND RURAL ACTIVITIES IN NORTHEAST BRAZIL AND IN GUANABARA/SAO PAULO, 1970 Men Women (Percentage of ~he Labor Force) Urban Rural Urban Rural Areas Areas Areas Areas Northeast Brazil Full-Time Working 87.2 92.2 57.2 49.0 Part-Time Working 7.4 5.0 33.7 43.1 Temporarily Absent from l~rk $.4 2.9 9.2 7.9 Total 100.0 100.0 100.0 100.0 Guanabara/Sao Pau~ Full-Time WorKing 92.0 94.4 76.4 67.5 Part-Time Wordng 3.7 2.6 15.0 27.1 Temporarily Absent from Work 4.3 3.0 8.6 $.3 Total 100.0 100.0 100.0 100.0 Source: PNAD J IBGE, 1970. Table 10: FULL-TIME AND PART-TIME WORKING BY AGE GROUPS IN THE LABOR FORCE IN NORTHEAST BRAZIL AND GUANABARA/SAO PAULO IN 1910 ' ----------------Men:----------------- ----------------Women:------------------ Full Part Temporaril~r Full Part Temporarily Northeast Brazil: Time Time Absent Total -- Time Time Absent Total 14-24 87.3 10.0 2.7 100.0 61.1 30.9 7.4 100.0 25-34 92.2 3.8 4.0 100.0 46.7 39.2 14.0 100.0 35-44 88.1 4.6 1.3 100.0 41.4 41.9 10.8 100.0 >45 84.3 1.8 7.8 100.0 47 .1 42.6 10.3 100.0 All Ages 88.0 6.7 5.2 100.0 52.1 31.6 10.3 100.0 Guanabara/Sao pan1o: 14-24 95.0 3.7 2.3 100.0 85.9 7.9 6.2 100.0 25-34 93.4 3.1 3.5 lQO.O 71.5 16.1 12.4 100.0 35-44 91.(, j.J. 5.3 100.0 63.u 21.9 9.1 100.0 ~45 86.9 4.8 8.3 100.0 61.7 23.2 9.2 100.0 All Ages 91.1 3.7 4.6 100.0 75.2 16.1 8.1 100.0 Source: PNAD, IBGE 1970. Table 11: PART-TIME WORKERS EXPRESSING PREFERENCE FOR F1JLL-TIME WORK BY MAJOR ECONOMIC SECTOR AND ACTUAL HOURS ~VORKED, 1970 Hours Worked Per Week ---------------------~~ --------------Men: ------.. -------- -----cw------Women:------------- .c. 24 Hours .~ 25-39 Hours Total _.--.-- L.2k Hours 25-39 Hours Total Sao Paulo: Agriculture 22.2 77 .8 100.0 17.8 82.2 100.0 Industry 33.3 66.7 100.0 28.6 71.4 100.0 Services 28.6 71.4 100.0 52.3 47.7 100.0 Total: 27.8 72.2 100.0 34.4 65.6 100.0 Northeast Brazil: Agriculture 52.0 48.0 100.0 48.5 51.5 100.0 Industry 35.0 65.0 100.0 46.5 53.5 100.0 Services 49.0 51.0 100.0 51.8 48.2 100.0 Total: 50.9 51.1 100.0 47.3 52.9 100.0 Northeast (Sao Paulo = 100) 183.1 70.8 137.5 80.6 Source: PNAD, IBGE, 1970. 'Kable 19: PART TIME rlORKms IN DIFF ERE!IT AGE GROUPS EXPRESSING A PR..:.FERElIl'CE FOR FULL TJNE t-lORK IN 1910 Men. Women: % L % Preferring Preferring Full Time Full Time Total (Total Part Total ('Ibtal Part Part-Time Time = 100.0) Part-Time l. Time '" 100.0) .heast Brazil ~-24 31.5 16.4 28.1 14.4 23.3 12.8 25.4 14.3 21.0 9.7 22.6 9.9 ~ 45 24.3 11.1 23.4 11.3 .1 Ages 100.0 50.0 100.0 49.9 .1 Age s (Full Time = 100) 1.1 3.9 72.0 35.9 labara/~o Pa'alo, ~-24 21.6 9.1 20.3 3.5 -34 22.6 5.0 23.8 7.0 14 ,-4 20.1 13.6 35.4 10.4 ,45 29.7 7.0 20.6 3.8 .1 Age3 100.0 34..1 100.0 2h.1 1 Ages (Full Time = 100) 4.0 1.4 21.5 5.3 -- -- Table 1~ : WEEKLY HOURS OF WORK COMPLETED IN THE MAJOR ECONOMIC SECTORS IN THE NOR'fHEAST AND IN BRAZIL, 1970 Total Labor Percentage Distribution L15 Hours 15-39 Hours 40-49 Hou!.& >50 Hours -- Undeclared Force Northeast Brazil: Agriculture 3.2 10.6 59.9 19.5 6.7 100.0 Industry 2.8 11.2 61.6 24.1 0.3 100.0 Services 3.2 19.9 50.3 25.9 0.7 100.0 '!'YEe of labor: Employees 2.7 16.2 55.4 25.1 0.6 100.0 Self-Employed 4.2 19.6 50.4 25.1 0.7 100.0 Employers 1.1 10.2 49.8 37.7 1.2 100.0 Without Remuneration 3.2 13.5 53.2 16.0 14.1 100.0 Brazil: Agriculture 4.1 10.8 55.7 26.5 2.9 100.0 Industry 1.1 4.9 69.7 24.3 100.0 Services 1.2 15.9 55.2 26.6 1.1 100.0 me of Labor: Employees 1.4 12.0 62.2 24.2 0.2 100.0 Self Elnp10yed 3.0 14.0 51.6 31.1 0.3 100.0 Elnp10yers 1.1 5.6 50.8 42.2 0.3 100.0 Without Remuneration 2.3 10.9 45.2 25.5 16.1 100.0 Source: Demographic Census, IBGE 1970. IN NORTHEAST BRAZIL A1TD GUANABARA/SAO PAULO, 1910 Men Women Percentage Distribution < 22 Hours ~0-49 Hours ~20 Hours Total < J2 Hours k9-49 Hours "> 20 Hours Total Ngrtheast Brazil 14 - 24 years 15.1 72.1 12.8 100.0 44.3 46.3 9.3 100.0 24 - 34 years 9.4 69.9 20.1 100.0 54.2 38.2 1.6 100.0 35 - 44 years 8.0 10.2 21.8 100.0 52.1 40.5 6 .. 8 100.0 45 years 13.2 68.4 18.4 100.0 6.9 100.0 " All Ages 12.1 10.3 11.6 100.0 53.4 50.1 39.1 42.0 1.9 100.0 Guanabara/Sao Paulo 14 - 24 years 7.1 70.3 22.6 100.0 13.5 62.4 24.0 100.0 25 - 34 years 6.3 63.3 30.4 100.0 24.9 60.0 15.1 100.0 35 - 44 years 6.9 61.7 31.4 100.0 33.5 50.9 15.6 100.0 > 45 years 9.2 59.0 31.1 100.0 31.9 52.2 15.9 100.0 All Ages 7.4 64.0 28.7 100.0 22.7 58.2 19.2 100.0 Northeast All Ages Guanabara/Sao Paulo = 100 163.5 109.8 61.3 220.7 72.2 41.5 Source: PNAD, 1970. ., Table 12: NUMBER OF MONTHS WORKED A YEARlI BY AGRICULTURAL LABOR IN BRAZIL , THE NORTHEAST AND GUANABARA/SAO PAULO 1970 . ' MEN: WOMEN: Percentage <3 3-6 6-9 9-12 <3 3-6 6-9 9-12 Distribution months months months months Total months months months months Total Brazil: '!UTAL 1.1 5.0 18.2 75.8 100.0 1.,3 9.4 2,3.8 65.5 100.0 Employees 2.0 5.5 15.3 77 .2 100.0 3.6 8.1 19.0 69.3 100.0 Self Employed 0.8 4.8 19.4 75.0 100.0 0.6 9.4 28.3 61.7 100.0 Employers 1.2 1.7 8.9 88.2 100.0 0.0 2·3 14.2 83.5 100.0 Without Remuneration 1.0 5.1 19.3 74.6 100.0 1.0 9~9 22·3 66.8 100.0 Northeast Brazil: TOTAL 1.1 8.0 26.1 64.8 100.0 1.2 13.1 32.4 53.3 100.0 Employees 1.6 7.9 22.0 68.5 100.0 2.1 8.3 25.7 63.9 100.0 Self Employed 0.8 7.8 26.8 64.6 100.0 0.6 10.8 33.2 55.4 100.0 Employers 0.7 3·9 20.9 74.5 100.0 0.0 3.1 25.3 71.6 100.0 ~thout Remuneration 1.4 9.2 30.5 58.9 100.0 1.8 20.1 35.3 42.8 100.0 Ouanabar~Sao Paolo: TOTAL 2.0 3.0 9.4 85.6, 100.0 4.4 6.7 10.8 78.1 100.0 Employees 3.2 3·9 8.1 84.8 100.0 6.7 9.0 10.3 74.0 Self Employed 1.1 1.6 10.9 86.4 100.0 1.7 6.7 9.0 83.6 100.0 Employers 1.0 0.7 4.5 93.8 100.0 0.0 0.0 0.0 100.0 100.0 Without Remuneration 0.7 1.8 1l.7 85.8 100.0 1.3 2.3 12.9 83.5 100.0 Source: Demographic Census, IBGE 1970. !I In the year preceding the Census. TablA 16: UN:i·l.t'LOY}·~;:;;:\l'r AND UNDERElviPlOYMENT IN BRAZIL AND THE NORTHEAST IN 1970 """""'"<. ...-_-.,._~"~ ---...---- .._ _ _ "-_,.."""..,. _ _ _., .....-.--...._... _~;OO----.~~ ...,._""_ 1 - Northeast 2 - BraziI7! Otner Regions!2-1 Absolute Absolute Absolute Numbers Numbers Numbers ,",.~---.-"",,-~--" (000) % (000) % (000) % .., ..... L'3.bor Force in Agric,:lture 5,223 100.0 12,549 100.0 7,326 100.0 1.1 Unemployed 19 0.4 53 0.4 34 0.5 1.2 Underemployed/2 973 18.7 1,748 14.0 775 10.6 2. ~on-Agricultural Labor Force 4,144 100.0 17,553 100.0 13,409 100.0 2.1 Unemployed 113 2.7 479 2.7 366 2.7 2.2 Visible Underemployment/) 463 11.1 1,111 6.3 648 4.8 2.3 Disguised Underemployment/4 555 13.4 1,469 8.4 914 6.8 2.4 Total Underemployment 1,018 24.5 2,580 14.7 1,562 11.6 3. Total Labor Force 9,424 100.0 30,295 100.0 20,871 100.0 3.1 lng W See k· ork ior ~ F· ... nu lrsv !~me J r 57 0.6 193 0.6 136 0.7 3.2 Total Unemployment (l.l + i:T + 3.1) 189 2.0 725 2.4 536 2.6 3.3 Total Underemployment (1.2 +2.2+2.3) 1,991 21.1 4,328 14.3 2,337 11.2 Source: PNAD-IBGE (Tabulation by SUDENE) - 1st Quarter, 1970. 2! Eicludes the Federal District, Rondonia, Acre, Amazonas, Roraima, Para, Amapa, Mato Grosso and Goia. /2 Persons working less than 35 hours a week. Ll Persons working part-time but preferring ~~ll time work, and persons normally working full time who, for economic reasons, are currently \-10rking only part time. ~ Employers and self-employed who earn less than NCr$50.00 a month. ti Who are also cons1dllred as unemployed, accordine to I.L.O. convention • •i} , . Table 17: MOVEMENT IN UNEMPLOYMENT AND UNDEREMPIDYmiT IN NORTHEAST BRAZIL 1968-10 19?>B 1909 1970 Absolute Absoluto Absolute Numbers }lumbers Numbers (000) % (009) % (000) % 1. :r.ahor Force ':'11 Ag:-icul'tu. . .e L:661 100.0 L,966 :!.OOQO 5~223 JOO.O 1.1 Unemt,)loved lL 0.3 16 0.3 19 o.L 1.2 Underemployed!l 898 19.2 920 18.5 913 lB.1 2. Non-Agricultural Labor Force L,LL6 100.0 L,158 100.0 L,lLL 100.0 2.1 Unemployed 196 L.L lLO 3.L 113 2.1 2.2 Visible Underemployment/2 5Lo 12.1 513 12.3 L63 11.1 2 .. 3 Disguised Underemployment/) 655 lL .8 6lL lL.8 555 l3 .. L 2.L Total Underemployment -- 1,195 26.9 1,121 21.1 1,01B 2L.5 3. Total Labor Force 9,113 100.0 9,176 100.0 9,L2L 100.0 3.1 Seeking Work for First Time/h 52 0.6 51 0.6 3.2 Total Unemployment (1.1 + 271 + 3.1) 210 2.3 208 2.3 lB9 2.0 3 •.3 Total Underemployment (1.2 + 2.2 + 2 •.3) 2,093 23.0 2,oL7 22.3 1,991 21.1 /1 Persons working less than 35 hours a week. 72 Persons working part-time but preferring full time work, and persons normally working full-time who, for economic reasons, are currently working only part-time. /3 Employers and self-employed who earn less than NCr$50.00 a month. it Who are also considered as unemployed, according to I.L.O. convention Source: PNAD-IBGE (Tabulation by SUDENE) - 1970, using PNAD labor force estimates. Note that the PNAD data on the size of the labor force do not coincide with those from the Census (see e.g. Table 1 above). The difference has not been explained hut is felt to result from an inflated estimate of total population in the Northeast used to build the PNAD universe from the sample survey. Table 18: AGE AND SEX DISTRIBUTION OF THE UNEMP.LOYED IN NORTHEAST BRAZIL AND GUANABARA/SAO PAULO IN THE FIRST QUARTER OF 1970 Men WQmen Ratio of Abs. % Abs. % Women (000) Distribution (000) Distribution to Men 'rtheast Brazil 14 - 24 85 64.4 38 66.7 41..7 25 - 34 23 17.4 11 19.3 47.8 35 - 44 12 9.1 5 8.8 Ll.7 45 12 9.1 3 5.3 25.0 A11 Ages 132 100.0 57 100.0 43.2 anabar a/Sao Paulo 14 - 24 120 66.7 65 74.7 54.2 25 - 34 27 15.0 13 14.9 48.2 35 - 44 14 7.8 4 4.6 28.6 45 19 10.6 5 5.8 26.3 All Ages 180 100.0 87 100.0 48.3 uree: PNAD, IBGE 1?70. Table 19: STRUCTURE OF THg POPULATION 14 AND OVER ACCORDING TO POSITION IN THE LABOR FORCE BY SEX A.1IJD AGE GROUPS IN NORTHEAST BRAZIL AND GUANABARA/SAO PAUlO, 1970 Hen: Women: Ili-~4 25-34 35-44 >45 14-24 2;-34 j;-44 >45 Northeast Brazil: Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 OUtside the Labor Force 15.8 2.4 1.9 12.5 59.5 58.8 57.0 68.4 Labor Force 84.2 97.6 98.1 87.5 40.5 41.2 43.0 31.6 Flnployed 96.0 98.2 99.0 99.3 96.7 98.4 99.2 99.6 Unemployed 4.0 1.8 1.0 0.7 3.3 1.6 0.8 0.4 Total Labor Force 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Guanabara/Sao Paulo: Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Outside the Labor Force 26.4 2.6 1.9 27.5 60.3 69.0 70.3 85.4 Labor Force 73.6 97.4 98.1 72.5 39.7 31.0 29.7 14.6 Qnployed 94.2 98.4 99.1 98.9 94.1 97.8 99.2 98.6 Unemployed 5.8 1.6 0.9 1.1 5.9 2.2 0.8 1.4 Total Labor Force 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: PNAD 1970. ~:..',r ~i '.) ;. .; .~_ ~ ; !I"l~ 'l',-:,L l U.PULil.TION 14 YE.A..l1S AND OVER SHmfING POSITION IN THE LABOR J F~Oi.:tC~~ {\.r.-ID F'iL..""ITLIAL STATUS, NORTHEAST BRAZIL AND GUANABARA/SAO PAULO "'<""'- ._.........._-.-=-r.'" """"'--- ........ ..,,-"'--~~-.. ~."'-- ....... "- - Total Heads of Other Without Absolute Total % ?ercen~e DistributiJ2!L.. ... , K_ _ >_._v.•._._ Household Wives Children Parents Parents (Million ) Distribution Northeast Brazil Total Population 14 and 100.0 100.0 100.0 100.0 100.0 15,042 100.0 Otl!:.side the Labor Force 12.4 70.0 34.6 53.5 27.8 5,618 37.3 Labor Force 87.6 30.0 65.4 46.5 72.2 9,424 62.7 Employed 99.0 99.2 96.4 95.2 98.8 9,235 98.0 Unemployed 1.0 0.8 3.6 4.8 1.2 0,189 2.0 Total Labor Force 100.0 100.0 100.0 100.0 100.0 100,000 100.0 GuanabaraLSao Pa~o Total Population 14 and Over 100.0 100.0 100.0 100.0 100.0 17,164 100.0 Outside the Labor Force 17.2 83.8 37.6 59.7 21.6 7,677 44.7 Labor Force 82.8 16.2 62.4 40.3 78.4 9,497 55.3 Employed 99.0 98.4 94.7 94.8 -98.8 9,230 97.2 Unemployed 1.0 1.6 5.3 5.2 1.2 ,267 2.8 Total Labor Force 100.0 100.0 100.0 100.0 100.0 100,000 100.0 Source: PNAD, 1970. Table 21: THE SECTOR OF ACTIVITyll OF THOSE SEEKING WORK IN DIFFERENT AGE GROUPS IN 1970 W)MI!N. All All All All Ages Ages Ages Ages (000) ~ 14-24 25-34 35-44 745 (000) % :i4-24 25-34 35-~ /45 Northeast Brazil Agriculture 16 100.0 62.5 6 •.1 6.3 24.9 .3 100.0 66.7 .3.3.3 Non-Agriculture 90 100.0 54.4 24.4 12.2 8.9 2.3 100.0 52.2 21.7 17.4 8.7 No Previous Work 26 100.0 100.0 .31 100.0 77.4 19.4 .3.2 TOTAL 132 100.0 64.4 17.4 9.1 9.1 57 100.0 66.7 19 •.3 8.8 5 •.3 Ouanabara/Sao Paulo Agri cul ture 13 100.0 76.9 2.3.1 4 100.0 25.0 75.0 Non-Agriculture 13.3 100.0 57.9 19.6 10.5 12.0 66 100.0 75.8 15·2 6.1 .3.0 No Previous Work .34 100.0 97·1 2.9 17 100.0 82.4 17.6 TOTAL 180 100.0 66.7 15·0 7.8 10.6 87 100.0 74.7 14.9 4.6 5.8 01 _ _ _ 1l1li.,--- 11 The Sector in ~ch the last job was held. A.~o..J""'''''' __ • .....,v ...'O".Ao..L"-'" .. ..., ... v ............. _ _ .... "" ....... " ... AND GUANABAR.A/SAO PAULO IN 1970 'Ren: Women: Average No. Aver ag'e No. of Weeks of Weeks ~4 5-12 13-26 .):..27 for L4 5-12 13-26 ;)..27 for Weeks Weeks Weeks Weeks Total Each Age Weeks Weeks Weeks Weeks Total Each Ag~ Northeast Brazil: 14-24 38.8 38.8 11.8 10.6 100.0 7.6 31.6 44.7 7.9 15.8 100.0 12.5 25-34 39.1 21.7 30.4 8.7 100.0 11.3 36.4 27.3 36.4 100.0 13.2 35-44 5B.3 33.3 B.3 100.0 6.2 40.0 20.0 20.0 20.0 100.0 12.2 >45 33.3 50.0 16.7 100.0 9.8 66.7 33.3 100.0 8.5 All Ages 40.2 36.4 13.6 9.9 100.0 9.6 35.1 36.8 8.8 19.3 100.0 11.1 Guanabara/Sao Paulo: 14-24 48.3 26.7 15.8 9.2 100.0 9.3 33.9 24.6 18.5 23.1 100.0 15.3 25-34 33.3 33.3 25.9 7.4 100.0 9.7 53.9 38.5 7.7 100.0 7.3 35-44 50.0 28.6 7.1 14.3 100.0 9.2 25.0 25.0 50.0 100.0 19.1 >45 42.1 31.6 15.8 10.5 100.0 9.9 80.0 20.0 12.2 All Ages 45.6 28.3 16.7 9.4 100.0 9.6 34.5 28.7 17.2 19.5 100.0 12.1 L! Average Number of Weeks Spent in Seeking Work. Source: ~,IBGE 1970. .Table 23: DURATION OF UNEMPLOYMENT AND MEANS OF WORK PROCUR&IENT IN THE S.mTORSfl. IN 1970 MA,~ 'q '&;ONOMIC Heans of Procurement Averar,e Duration Percentage 'inpioy- Personal Duration of un~~lolillent Average For'Xhose Distribution ment Inter- L. 4 5-12 13- b > 27 Duration Using Employment Agency _n:.ed~ary other Total Weeks Weeks Weeks Weeks Total (Weeks) Agency Northeast Brazil- Agriculture 57.9 21.1 21.0 100.0 36.8 52.6 5.3 5.3 100.0 8.4 Non-Agriculture 55.8 42.5 1.8 100.0 40.7 31.9 14.2 13.3 100.0 10.7 No Previous Work 35.1 54.4 10.5 100.0 35.1 40.4 10.5 lb.O 100.0 8.8 Total: 49.7 43.9 6.4 100.0 38.6 36.5 12.2 12.7 100.0 10.4 10.7 Guanabara/Sao Paulo Agriculture 82.4 17.6 100.0 64.7 17.7 11.8 5.9 100.0 7.8 Non-Agriculture 66.8 29.7 3.5 100.0 40.2 30.2 17 .1 12.6 100.0 10.9 No Previous Work 72.6 17.7 9.7 100.0 41.2 25.5 17.7 15.7 100.0 11.5 Total 68.9 27.3 3.8 100.0 42.0 28.5 16.9 12.7 100.0 10.8 11.2 Ll i.e. Sector of last employment. Source: PNAD, IBGE 1970. ah1e 2~: THOSE SEEKING WORK m DIFFERENT AGE GROUPS, ACCORDING TO TYPE OF W1RK FOUND AND METHOD OF PROCUREMENT, IN 1970 -1'l.Pe of Wo rk Found Method of Procurement 1/ Einployment .ReJ.atives, Full-Time Part .. Time Total- Agency Friends etc • TotalY .st Brazil: MEN: .4-24 88.2 11.8 100.0 54.1 37.7 100.0 :5-34 91.0 9.0 100.0 65.2 30.4 100.0 i5-44 'n.7 ' 8.3 100.0 41.7 50.0 100.0 >45 83.3 16.7 100.0 33·3 58.3 100.0 III Ages 88.6 1l.4 100.0 53.0 39.4 100.0 lra/Sao Paulo: .4-24 95.0 5.0 100.0 70.0 29.2 100.0 ~5-34 .WO.O 100.0 70.4 25.9 100.0 ~5-44 100.0 100.0 78.6 21.4 100.0 '::"45 89.5 10.5 100.0 52.6 26.3 100.0 Ul Ages 95.8 4.2 100.0 70.0 27.8 100.0 V«>MEN: 3.st Brazil: l4-24 '.'9.0 21.0 100.0 44.7 52.6 100.0 25-34 0).6 36.4 100.0 4,5.5 45.5 100.0 35-44 80.0 20.0 100.0 40.0 60.0 100.0 ~45 33.3 66.7 100.0 60.0 100.0 ill Ages 73.7 26.3 100.0 42.1 54.4 100.0 l,!a/Sao Paulo: ~4-24 89.2 10.8 100.0 75.4 20.0 100.0 !,,-Jh 84.6 15.4 100.0 53.9 23.1 100.0 ~., .I~- 44 ?5.0 25.0 100.0 25.0 75.0 100.0 -" \.11 ,Ages 100.0 1)8·5 II., 100.0 100.0 66.7 100.0 26.4 100.0 100.0 : ,PX.W, lEGE 1970. Table 2$: SIZE DISTRIBUTION OF INCOME OF THE ECONOMICALLY ACTIVE POPULATION/1 OF NORTHEAST BRAZIL IN 1960 BY SECTOR Total Distribution dustry ces ure %Population %Income % Pop. %Income %Income Income Income Class ~NCr $) Up to 2100 ~c.5 19.7 LO.1 1L.L 37.6 9.6 $7.L 3\).3 2101 - 3300 22.8 19.2 20.B 15.7 16.0 B.B 26.0 29.7 3301 - L500 12.3 lL.7 21.5 23.3 lL.o 10.3 10.3 17.0 L501 - 6000 6.6 10.B 9.3 lL.6 12.7 13.5 3.7 B.1 6001 - 10000 L.3 10.8 5.0 11.2 10.L 16.9 1.6 5.6 10001 - 20000 2.0 9.L 1.7 7.1 5.L 16.6 0.6 3.B Above 20000 1.5 15.3 1.7 lL .9 L.o 2L.2 o.L 5.L Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Mean Income (NCr $) 311B 3600 L911 2367 Gini Ratio .50 .L7 .61 .33 Ratio of Mean Income to the Overall Mean 100.0 115.5 157.5 75.9 /1 Those reporting income only. Source, 1960 Demographic Census, IBGE. Table 26: SIZE DISTRIBUTION OF INCOME OF THE ECONOMICALLY ACTIVE POPULATION/l OF NORTHEAST BRAZIL IN 1910 BY SECTOR Total Distribution Industry Services A~iculture %POEulation ~ Income % P~. !i Income % Pop. % Income % P£E. %Income Income Class (NCr $) Up to 100 61.5 26.8 33.9 11.0 L1.1 11.3 11.3 53.L 101 - 150 16.9 1L .2 30.6 19.1 11.1 9.3 13.6 18.1 151 - 200 8.1 9.5 13.3 11.6 11.2 8.2 5.5 10.2 201 - 250 2.1 3.8 5.1 L.5 5.3 5.0 0.1 2.1 251 - 500 6.9 13.6 ILL 15.6 15.1 11.5 1.9 1.8 501 - 1000 2.L 12.0 3.3 12.5 6.0 18.9 o.L 3.2 1001 - 2000 1.1 10.2 1.5 10.1 2.6 16.3 0.2 2.3 Above 2000 0.5 9.8 1.0 15.1 1.0 13.6 0.1 2.8 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 MflJUl Inc ome (NCr $) 128 19L 211 11 Gini Ratio .53 .58 .62 .28 Ratio of Mean Income to the Overall Mean 100.0 151.6 169.5 60.2 Ll Those reporting incomes only. Source I 1910 Demographic Census, IBGE. /1 Table 27: DISTRIBUTION OF LABOR PORCE-ACCORDING TO INCOME LEVELS BY MAJOR ECONOMIC SECTORS IN NORTHEAST BRAZIL 1960 AND 1970 Less than Min. Wage Middle Range Incomes Upper Range Incomes Gin! (-NCr$L.L9 in 1960; (NCr$L500-10000 in '60) (>NCr$10 ,000 in t 60) Ratios NCr$165.95 in 1970/2) (NCr$166.32-369.55 in 170) (~NCr$369.55 in 170) Total 1960s Agriculture % 93.7 5.; 1.0 100.0 .31 Aba. 23L1.0 131.1 25.9 2L98.0 Industry % 82.2 lL.2 3.5 100.0 .L7 Aba. 295.1 51.1 12.7 358.9 Servicea % 67.6 23.0 9.L 100.0 .61 Aba. 715.1 2L3.8 99.6 1058.5 Total % 85.6 10.9 3.5 100.0 .50 Abs. 3351.2 L26.2 138.2 3915.6 1970& Agriculture % 92.8 5.6 1.6 100.0 .28 Aba. 3923.7 239.0 66.5 L229.2 Induatry % 68.7 20.1 ' 11.2 100.0 .58 Aba. 601.0 175.8 97.7 87L.5 Services % 62.5 20.8 16.7 100.0 .62 Abe. 1313.0 L37.L 351.7 2102.1 Total % 81.0 11.8 7.2 1CO.O .53 Abs. 5837.7 852.2 515.9 7205.8 a. Only members of the Labor Force reporting incomes. /1 Maintained at level equivalent to minimum wage in 1960. Source: Demographic Cen8~S 1960 and 1970. Cost of Living IntIator from Conjuntura Economica (C.O.L. Guanabara). Table 26: MOV'i1000.00 declared 'Total ment 1 i t Transformation Industry ·61.6 19.2 6.1 5.7 1.6 0.8 4.9 100.0 20.1 t I Construction 25.0 25.0 50.0 100.0 0.3 ~l Cc:nmarce 12.9 35.7 25.7 14.3 6.0 4.9 0.6 100.0 29.1 r Services 42.7 34.1 14.4 3.6 1.0 0.4 3.8 100.0 41.2 t ~ Tr a.."13}: .)rt and Communications 11.3 17 .0 26.4 17.0 20.8 5.7 1.9 100.0 4.4 t !' Liberal Professions 4.3 4.3 13.0 30.4 8.9 34.8 4.3 100.0 1.8 Social Ssrvices 44.4 44.4 5.6 - 5.6 100.0 1.4 ~ f Other 52.6 :36.8 10.5 100.0 1.6 Source: PNAD 1st Quarter 1969. • Table 3)tEVOLUTION OF DIFFERENTIALS IN THE LroAL MINIMUM WAG.!!: BETWEEN THE STATES OF THE NORTHEAST 1960-71 1960 1965 1971 Northeast 100.0 100.0 100.0 Pernambuco, Bahia llL.3 11L.L 107.3 Ceara 9L.o 87.8 93.9 Rio Grande Do Norte, Paraiba, Sergipe, A1agoas 91.L 87.8 93.9 Maranhao 86.L 87.8 93.9 Piaui 63.5 79.9 93.9 Northeast (1,60 • 100) 100.0 9.118 33.312 Source: IBGE/DNS 1971. Table 34: LANGONI'S ESTIMATES OF THE DISTRIBUTION OF INDIVIDUAL INCOMES IN THE NORTHEAST IN 1970 BY DECILES : Averag~ Monthly Percentage of Income Income (197C NCr $) Ridhest 10 l.t5.3 737.08 10 13.6 21L.16 10 9.5 1L7.7L 10 7.6 118.58 10 6.L 95.76 10 5.2 77.75 10 l.t.3 66.01 10 3.6 53.39 10 2.9 L1.55 Poorest 10 1.7 23.75 - PClorest 75 36.5 55.08 Richest 25 63.5 292.7l.t Gini Ratio: 1970 .56 1960 .l.t9 %Change 11...3 1960 1970 % Chanee Average Monthly Incomes (U.S.$) Primary Sector 18.36 20.L6 11.0 Urban Sector 3L.L9 53.92 56.3 Total 25.L9 3L.20 3L.2 Source: Langoni (op. cit) Tables 5.3 and 5.5. CASE STUDY I: PERNAMBUCO PERNAMBUCO TABLE OF CONTENTS I. THE EDUCATION AND TRAINING SYSTEM A. Administration and Structure B. Formal Education 1. Enrollments: Growth and Distribution 2. Educational Opportunities 3. Teaching Staffs C. Non-Formal Education: Vocational Training II. EFFICIENCY OF THE EDUCATION SYSTEM A. Formal Education 1. Internal Efficiency 2. External Efficiency B. Non-Formal Education III. EDUCATIONAL ATTAINMENTS AND ~~INGS IV. EDUCATION FINANCE A. Formal Education 1. Growth and Trends 2. Public Expenditures by Level of Education 3. Type of Expenditures: Recurring and Capital B. Private Expenditures C. Recurrent Unit Costs 1. Formal Education 2. Vocational Training Unit Costs V. EDUCATION DEVEIDPMENT STRATmy: EVALUATION, PROJECTS AND THEIR FINANCING ANNEXES I. ,THE EDUCATION AND TRAINING SYSTEM A. Administration and Structure 1. The administrative structure of Pernambuco's education and training system conforms to that stipulated in the Federal Law of Policies and Principles (December 1961). The State Council of Education is responsible for defining programs corresponding to national objectives. The State Council's executive branch is the Department of Educatie,n, headed by the State Secretary of Education. The Department of Education contains some eleven major divisions, including its own research and planning units (see Chart II in Northeast Report). 2. The state has the main responsibility for primary and secondary educa- tion. Although state a.uthori ties attempt to supervise and coordinate primar'Y education w'i th the municipalities, the latter are largely autonomous, particu- larly in the rural areas. Private education exists at all levels. The Federal University of Pernambuco and the Federal Rural University are autonomous. Large regional centers for non-formal vocational training are maintained in the state capital of Recife by SENAI (National Service of Industrial Apprenticeship) and SE.i.1AC (National Service of Commercial Apprenticeship). J. The structure of the education system is that explained in para. 12 of the Northeast Report. State education authorities anticipate a very slow conversion to the n~v structure of basic education. PERNAMBUCO B. Formal Education Enrollments: Growth and Distribution 4. Eilrollments amounted to 851,000 students in Pern.lmb'JcQ in 1970. Their distribution and growth among the various levels of eduGation is given in Table 1 below and in Annex 1. Compared with the enrollment distribution of the Northeast region it is evident that Pernambuco's educational system is more developed and its growth more balanced than most other Northeast states. - 2 - Table 1 Annual 1964 1970 Growth Rate Primary 498,566 662,124 4.8 Secondary 81,089 169,387 13.0 1st Cycle 62,416 125,334 12.3 2nd Cycle 18,673 44,053 15.3 Higher 7,161 19,780 1'305 Source: Annuario Estatistico 1967 and 1971. rimary enrollments grew at about the same rate as those of the region as a :lole in 1964-70. There has been a net annual increase in the primary en- =>llment ratio as the growth rate of the corresponding age grOup was about percent per annum. The public commitment to the prov~s~on of expanded education ~portunities is shown in the larger annual increases in state and municipal 1rollments at the various levels of education and the consequent relative scline of the significance of tile private enrollments in the state. At he primary level, state and municipal enrollments grew at about 5 percent er annum in 1964-70 and the share of private enrollments deolined from 23 ercent to 12 percent in the same period. At thl~ secondary .ley~..l ~9.t!l.s.ta,t.e :ld municipal enrollments grew at 22 percent per annum. The private s~otor still ~counts for the largest enrollment shown at this level at 49 percent, but it :; dmm significantly from 67 percent in 1964. Of the total 168,000 secondary enrollments in 1970, 126,000 were in inasio and 42,000 in colegio. The growth patterns by administrative levels 1d the distribution of these enrollments are different in each cycle. The 170 distribution of secondary enrollments by administrative dependency was: Federal State Municipal Private Ginasio 1% 39% 12% 48% Colegio 6% 33% 10% 51% ~ivate enrollments dominate particularly in commercial education (92 percent G the ginasio level in commerce, and BB percent of those at colegio level); ley were about half of the enrollments in general education and teacher ~aining, insignificant in industrial education and non-existent in agricul- lral education. - 3 - 7. There have been minor changes in the distribution of enrollments 3ince 1964 reflecting the greater growth of commercial enrollments at ginasio Level and of teacher training at colegio level (Annex 2). The academic streams accounted for the overWhelming majority of the enrollments at the ginasio level ihile at the colegio level, both enrollments in teacher training and the aca- iemic stream are significant. The reasons given earlier (para. 27 in Northeast Report) as with regard to student choice for teacher training streams are appli- oable for the state of Pernambuco as well. B. The higher education enrollments grew at the highest rate of expansion of any level of education and this growth is consistent with regional and national patterns. Enrollments in engineering, medicine and agriculture have declined, however, as a proportion of the total from 36 percent in 1964 to 25 percent in 1970. The Federal University of Pernambuco accounts for 8,800 of the enrollments at the higher level. Educational Opportunities 9. There has been some correction in the uneveness of educational oppor- tunities available in the state. At the primary level, enrollment growth has been higher in areas other than the capital (5.5 percent per annum versus 3.4 percent per annum growth in the capital). This expansion, reflected more in the state enrollments, has slightly ameliorated the age enrollment ratios of the age group 7-14 in the interior but, still, substantial differences in these ratios prevail as illustrated in the following table. Table 2: ENROLLMENT RATIOS BY AGE, 1970 7 8 9 10 11 12 13 14 Total (% in schools) 53.4 63.6 68.7 59.3 68.3 53.4 50.9 44.5 Interior 48.7 57.0 62.6 53.8 62.1' 49.9 47.6 40.6 Capital 79.0 102.£/ 103.S!! 92.1 88~B 72.0 69.4 62.5 Y Exceeds one hundred because of underestimates of respective population age groups. No data are available from the 1970 census to refine the population estimates by age groups, which are based here on the age· distribution of earlier censuses. Source: Secretaria de Educacao e Cultura, Plano Estadual de Educacao de Pernambuco, Diaglo stico, Volume 1, Recife 1972. 10. There are no separate data for the scholarization ratios in the rural areas of the state, but it could be presumed that the ratios will be much lower than those of the interior at large since the latter includes all urban areas other than the capital of Recife. Information supporting this can be found in the distribution of overall enrollments among rural and urban areas which is - 4- quite different from the state's population division. Only about one-third of the primary enrollments were in rural areas while the rural population of age 7-14 was roughly about half of the total in that age group. Inequities in edUcational opportunities in the rural and urban areas are accentuated by differences in teachers' quality, availability of teaching materials, and suitability of school facilities. 11. Much of the administrative responsibility for the primary enroll- rnentsis borne by the municipal governments which are financially the most constrained to provide quantitative and qualitative improvement of educa- tional opportunities. The record also indicates that these governments have clearly opted for quantitative over qualitative improvements in the system. 12. Until the recent reform, only a fraction of the primary four and five grade graduates could enter secondary education. In 1969, the graduates 'Jf these two grades were 65,000. The first year enrollment in ginasios was roughly 45,000 excluding repeaters. Since a substantial proportion of the students enrolled after an interruption of their primary studies, it would be reasonable to assume that only about half of the primary graduates may lave had a chance to continue their studies. This attendance has been lopsided in favor of urban areas. The schools at this level are heavily ~oncentrated in densely populated areas, which can support economic size lnits, thus making attendance by rural youth expensive and often prohibiting. ~bout 49 percent of the total ginasio enrollments, and 46 percent of the first-year enrollments were in the Recife area alone. These patterns of )pportunity of entry to secondary education and urban concentration of sec- :mdary education are not unique to Pernambuco, but, more or less, representa- tive of most Northeast states. L3. A similar situation exists in the provision of colegio level 3ducation. Entrants in the first year of colegio were about 17,000, only a fraction of the graduates of the last year of ginasio. Again, the locality )f the schools favors the urban areas, even more heavily so than at the ~nasio level. This is clearly shown in the distribution of enrollments: ~he capital accounts for almost two-thirds of the total colegio enrollments Ln the state and the corresponding ratio for the first grade is about the ~ame. ~4. While the state government is conscious of these inequities, its ~egulations pertaining to the opening of new schools encourage them for financial reasons. For example, no school is built unless there are one lUndred students available, and currently the state is not building any 3chools with less than eight classrooms. The area served by schools has uso been widened so that as many of the existing one-room schools as )ossible can be closed down. reaching Staffs .5. There were 20,500 primary school teachers employed in 1970, .1,800 secondary and 1,450 professors in the principal institutions of ligher learning. Staff increases have lagged behind enrollment growth .n primary and higher education but slightly outpaced secondary enrollment ~rowth. The quantitative magnitude of the teaching force is not very - 5 - important in deriving and interpreting such indicators as student/teacher ratios since many teachers, particularly at the lower levels of education, are employed in administrative tasks and a very large number are part-time teachers, working in other jobs including teaohing in other sohools. 16. The quality of teaching is poor. This is due to the method of teaching employed and to the poor qualifications of the staff itself. At the primary level, about 40 percent of the staff is not qualified (that i13, the teachers are not graduates of teacher training colegios). Most of the unqualified teachers are teaching in municipal schools. For example, on 1969, only 13 percent of the municipal primary teachers were qualified, while the corresponding proportions were 61 percent in state schools and 43 percent in private schools. About two-thirds of the municipal primary teachers had only some or a complete primary education. 17. At the secondary level, only about 40 percent of the teachers are qualified. Teachers of practical subjects are scarce and when available mostly lack pedagogic training. Under the Alliance for Progress Program, four centers for teacher upgradihg have been built but their annual use varies depending on fund availability. Each center has a capacity of 76 places. The training program for unqualified teachers, is well designed. It is extended over a period of three years, with two months of training each year and one school year of supervised work. Although improvements in the educational background and teaching techniques of the teachers are very important in improving the education system's efficiency and improving educational quality, lack of funds have limited the availability of such training programs. In 1971, only 532 teachers attended the training pro- grams. At this pace it would take fifteen years to train all unqualified teachers. 18. The supervision and the teaching in the teacher upgrading insti- tutes are undertaken by a group of supervisors, whose background consist of a university education, five years of practical experience and a three- month special course. There are 14 teams of these supervisors, with a total of 186 personsG The teams are also responsible for regular teacher supervision and for coordinating educational activities at the local level, such as evaluating requirements for opening and staffing new local schools. The salary of a supervisor is about Cr$l,200, which is competitive with salaries paid to people with similar education background in other occupa- tions. As a result, qualified people are retained by the service. 19. The state of Pernambuco compensates its teachers on a scale which is slightly above the minimum salary. The municipalities, however, are unable to pay such salaries and their teacher renumeration varies from 20 percent to 50 percent of the state minimum. With such low salaries the municipalities cannot attract qualified teachers. Worse, because of lack of funds and personnel no teacher upgrading programs are organized at the municipal level, to improve the qualifications of the staff. - 6 - C. Non-Formal Education: Vocational Training O. The organization and implementation or vocational training rograms discussed earlier on a regional basis are identical with those .t the state level. In Pernambuco, one or the more industrial states of he Northeast, SENAI is a ver,y illustrious organization working ver,y closely nd in a producti7e relationship with PIPMO and local employers. A limited 971 state labor market study has identified training needs by industrial roups and SENAI's effort is now being directed at meeting these needs • . total of about 5,000 industrial workers in thirteen industrial Bub~sectors ill be trained in the next few years in existing or new programs. The raining covers a large spectrum of skills. 1. SENAI operates four training centers to meet the state's needs nd one regional center, catering to the training demands for textile orkers by the Northeast textile industries. (The latter was equipped by he Japanese government at a cost of Cr$l.l million.) Training courses n the four centers range from 40 to 300 hours and from two to three hours er day. There are basically two programs of training: for minors and or adults. In 1970, 716 minors enrolled in 11 training programs, some xtending over a two~ear period. Only 7 percent of these dropped out by ear's end. About 1,,970 adult trainees participated in programs for killed workers, supervisors, technicians, supervisory and management ersonnel. This number represented a substantial increase over the previous ear. Of the trainees 1,007 were trained in SENAI in pre-service courses, hile the remainder were personnel of local industry receiving skill up- rading. Through "convenios" (contracts) with PIPMO, an additional 815 orkers were trained inSENAI facilities. 2. The teaching staff of SENAI is composed primarily of part-time eachers who are contracted for the duration of a course. The qualifica- ions of the permanent staff are technical secondar,y education and two ears of work experience. This is a limited background, and there are, ccasionally, problems in rinding suitable teachers for ver,y specialized ourses. Also, as there doesn't exist ~ly organized training for instruc- ors to meet staff attrition at the centers in Pernambuco and the region t large, there are some difficulties in filling the organization's few ermanent posts where they are vacated. 3. SENAI 's facilities, particularly the one in Recife which trains bout 1,000 people per year, are being utilized to capacity. They are eing maintained well and operated efficiently, but because of lack of pace and stafr there are increasing difficulties in meeting requests by rivatc firms for organizing training courses. Because of these constraints, riority in allotting space and other resources is given to courses in ccupational areas which have been identified as crucial for state develop- ent or where acute managerial shortages prevail. In the present labor arket conditions, the occupational skills for which a ver,y strong demand xists include electricians, welders and mechanics. - 7- 24. SENAC operates three training centers including a newly built center in Recife. Courses are offered in eight areas including adminis- tration, vending, hotel management and tourism. About 2,000 were trained in 1970 of whom 12 percent were minors. The capacity of the training centers is sufficient to double the number of the trainees but there are no sufficient funds to offer additional courses. A study was commissioned in 1971 to survey and identify the states' training requirements in the sector. The demand for qualified assistant accountants and administration workers was found to be strong and largely unfilled. Hotel office per- sonnel was another area where future absorption was found to be promisingo Training programs for the above personnel would range from six months to a year which SENAC cannot afford because of existing resour.ce limitations. In fact, the state administration ofSENAC has been reallocating resources to finance short-term training programs which are less costly and which have a greater stUdent turnover. Part of the financial problems facing SENAC arise out of its over-investment in physical capacity. Loan repay- ment and amortization of facilities account roughly fora high 30 percent of the state organization's annual budget. II. EFFICIENCY OF THE EDUCATION SYSTEM A. Formal Education Internal Efficiency 25. The enrollment distribution in Pernambuco is more rational than that of the northeast region at large, but 'still very uneven. Half of the primary enrollments are in the first grade. Only 17 percent of the enrollments are in the 4th and 5th grades. There have been some improve- ments in the enrollment distribution since 1964, where the first grade enrollment accounted for about 61 percent of the total and the fourth and fifth grades for only 12 percent. 26. Pernambuco's educational system is becoming increasingly more productive but wastage is still at a high level. Corrective action is required to make the system more efficient and reduce the unit cost per successful graduate. Of 100 students entering primary grade one, only 31 successfully continue to grade two; of those, only 23 continue to grade three, and finally, only 17 are in grade four. This progression is almost identical to the one identified for the Northeast region (para. 43). The greatest bottleneck in the stUdent progression is in the very first grade where the highest dropout rate is experienced. The other indicator of wastage, class repeating, also shows that re- peaters are overwhelmingly concentrated in the first grade too. - 8 - 7. A relatively large proportion of enrollments (10 percent) are alow seven years of age or over 14 years. Only 20 percent of the enroll- ents in the first grade are seven years old. A rationalization of the ge distribution of enrollments would be useful but there is reluctance n the part of the authorities to pursue vigorously such a policy, other han attempting to provide separately for the needs of the overaged tudents. B. Similar problems with regard to the system's internal efficiency, ut of a lesser magnitude, prevail at.the ginasio level. Repeaters accOlUlt or about 10 percent of the enrollment's with high concentration in the irst year (50 percent). Only 33 percent of the enrollments were within he age group 11-14, and as many as 26 percent were 18 or older. Drop- uts at this level amounted to only three percent, but industrial enroll- ants have exhibited a very high dropout rate, up to 24 percent. 9. At colegio level, the overall dropout rate is estimated at percent. It is half of the rate estimated for the region. While the eighted average is affected by the very low dropout rate in the academic treams, dropout rates in industrial and commercial streams are high. n 1969, they amounted to 27 percent and 19 percent of the respective nrollments. ~ternal Efficiency D. The earlier discussion on the education system's external fficiency for the Northeast at large is applicable to the state of ernambuco as well. There are no adequate data to assess accurately his efficiency of Pernambuco's educational system. The Secretariat f Planning is greatly interested in the undertaking of in-depth labor arket study one of the by-products of which would be the evaluation f the relevance of the education system to the state's training re- uirements. Such a study will be preceded, however, by a more limited ne studying the marginal urban groups in Northeast urban areas (para. S in the Northeast Report) which would include the area o£ Reci£e. [Jlong the various data that will be collected, information gn~qll~~':-______ _ ion and- training of these grouI)s-wul be gathered and its relevance ill be related to identified requireniEmts for obtaining a job. 1. One of the areas where improvements should be made, is to ncrease the relevance of the education of overage students who most ften are now following regular curriculum. The comments developed arlier on this problem for the Northeast region at large are certainly pplicable here. Some efforts have been undertaken in Pernambuco for he implementation of such a program but they are limited because of ack of funds. 2. One of the weaknesses of the work currently undertaken by the Lanning group of the state secretariat of education in Pernambuco is hat it is related overwhelmingly only with the supply side of the labor arket. There are no effective liaisons with other public agencies that auld lead to planning of the expansion of the system and of qualitative nprovements as the,y relate to whatever indicators may be available with egard to labor market requirements. - 9 - Non-Formal Education 33. The patterns established for the Northeast at large are identical in the case of SENAC in Pernambuco. In the various training schemes this organization has implemented a higher dropout rate among its adult trainees (19 percent) than among minors (10 percent) has developed. The reasons for this have been explained earlier" The SENAI operations are more efficient. Those concluding successfully their courses amounted to 94 percent of skilled workers, 99 percent of the technicians and 90 percent of t~e supervisory personnel. The external efficiency of thesie training schemes is high be- cause the operations of these agencies are effectively and directly linked wi th the specific industrial and commercial training requirements of the state. III. EDUCATIONAL ATTAINMENTS AND EARNINGS 34. Disaggregated census data on labor force educational attainments in Pernambuco, are not available. The only data available are from the reports from employers in industrial, commercial and service establishments for 1969. As these data cover the larger establishments there is an upward bias in the derived educational attainments of the workers the,y employ. 35. The distribution of the attainments of 89,000 reported employees in industry and 64,000 in commerce and industry, are given below: Industry Commerce and Services Illiterates 13.1 3.0 Incomplete Primary 40.7 20.9 Comple te Primary 24.3 24.4 Incomplete Ginasio 6.0 12.4 Complete Ginasio 3.3 9.4 Incomplete Colegio' 2.3 6.2 Complete Colegio 2.4 12.4 Incomplete University .6 3.2 Complete University .8 4.4 Not Declaring 6.5 3.7 36. As expected, the educational attainments of those in commerce and services are significantly higher than those in industry. Some 50 percent of those employed in industry were illiterate or had less than complete primar,y education, compared to some 20 percent of those employed in commerce and services. These patterns of educational attainments are also consistent with those observed for the Northeast region at large. The distribution in the industrial sectors, sugge4Jte an under-education of the employees in the sector with regard to formal .education. But no information is available indicating how formal education has been com- plimented by pre-service, vocational training and on-the-job and in-service training. - 10 - 17. Earning patterns folltv closely the educational attainments ~ industr,y discussed in para. 62 of the Nor~east Report. (A detailed lreakdown of earnings by years of schooling is given for industr,y and :ommerce and services in Annex 7.) Earnings in commerce and services Ire considerably higher than those in indust:roy, even for the same levels )f education. In a grouping of earnings similar to those presented in ~he discussion of Northeast about 62 percent of the illiterates employed ~ industrial activities received less than Cr$l19, while this proportion ras 40 percent in commerce and services. Overall, 38 percent of industrial rorkers earned up to Cr$l19 as compared with 19 percent of commerce and lervice workers. The range of earnings for the majority of the service Illd commerce workers, who have different educational background!, is higher Illd more extended than that for industrial employees. The attainment of lome primar,y education is more crucial in earnings above the minimum wage .n the industrial sector, while in commerce and services such earnings ~tend over educational attainments ranging from incomplete prima~ through :olegio. IV • EDUCATION FINANCE A. Formal Education .rowth and Trends ~8. The formal education financing system in Pernambuco is composed )f both private and public sources and expenditures. Private education !xpendi tures in 1970 accounted for approximately 20 percent of total tducation expenditures, a share which appears to have declined somewhat iue to the rapid increase in public enrollments and expenditures between ~964 and 1970. During this period public education expenditures increased It an impressive annual rate of 15" 7 percent in real. terms, growing from ~r$83.3 million in 1964 to Cr$l98.1 million in 1970. ~9. Direct expenditures on public education by the federal, state md municipal governmen ts, as well as the source of fundS spent, are Ihown for the 1964-70 period in Tables 3 and 4 on the following pages. these data show that the patterns end trends of public education finance ~ Pernambuco are similar in most re9pect q to those for the Northeast at .arge. ~O. state education e~enditures have accounted on average for 55 )ercent of total public education expenditures. Most of the state's Iducation expenditures (about four-fif~'ls) have been met by the state's >WD budgetar,y resources. This proportic':l 5.s higher than that for the lor theas t as a whole and refiocta 'both ~'le state's relatively high commit- lent to education and its lesser relicl.-'1c6 on .f6deral transfers. Pemabuco's !ducation expenditures from ita own bud3btar,y resources grew at an average lllIlual rate of 12.5 percent in r6al tems between 1964 and 1970 and increased LS a percentage of total sta.te b'.:ld{;etary e:lCpendi tures from 14 percent in 1964 jO 17.5 percent in 1970. -11- Table 3: PERNAMBUCO PUBLIC EDUCATION EXPENDITURES BY LEVEL OF AllMINISTRATIOfl, 1964-70 (Thousands Cr$, 1971 prices) 126k 1~6$ 1~66 12f;7 1268 1~;;2 1,.,., Classification Cr$ ~ Cr~ % Crm % Crlil ! Cra % Cr$ % Cr i ~ ::> TATE EXPE1IDI'l'tTRES 9wn Budgetary Resources 44222 -84 52654 . 100 58990 41183 !.QQ. 70 46393 33614 ~. 72 67lt42 100 52131 - 77 80769 !QQ 65935 82 99273 lQQ 77778 78 102672 !QQ. 89578 82 Participation Fund -- 1610 2 3217 4 9947 9 7054 6 Education Salary (State Quota) Education Salary (Fed. Quota) -- 20)8 4 2661 4598 6 10 2452 3837 4 6 2265 4634 3 6 3973 5173 4 5 5511 5538 5 5 MEe: Primary Ed. Fund 5229 10 7888 13 2534 5 4142 6 2324 3 ;:;;econdary Ed. Fund 3203 6 7880 13 2500 5 3270 5 2394 3 2408 2 1991 2 SUDam 486 1 MFI: DIRl:!;CT EXPENDlTURF.S MUNrC!PAL EXPElIDI'l'URl!S 24641 5987 - 100 M!2 32947 9240 - 100 100 42087 6906 !.QQ. 21503 100 14605 1QQ. - 61104 !QQ. 20047 100 Ml2§. !QQ. 14805 1QQ 7612] !QQ. 12233 1QQ. Own Resources1i 3882 65 5601 61 6020 87 6840 47 8565 43 5332 36 4154 34 Participation ~ &C: Primary Ed. Fund 2105 - 35 3639 39 886 13 692$ 840 47 6 8292 3190 41 16 7229 2244 49 15 8079 66 TOTAL EXPENDI'l'UR..I!S 8~282 !QQ 101177 1QQ. - . 95385 !QQ. 13J520 1QQ. 161920 .!Q.Q. 179Wfl 1QQ 198058 1QQ STATE EX. as %of TOTAL 6) 58 49 20 50 55 55 MEC EX •. as ! ot TOTAL .30 33 44 39 38 36 38 KJNI~IPAL EK. as % ot TOT¥ 1 9 7 11 12 9 7 •'\ 11 Estimated at one-thirdot ~CiPality education expenditures from Participation Fund receipts~ y Twenty percent of municipa1i~ Participation Fund receipts (minimum legally required to be commi tted to education). . Table It: CONSOLIDATED SOURCES OF FINANCE FOR PUBLIC EDUCATION IN PERNAMBUCO, 196h-70 (Thousands Or$, 1971 pricas) 11 Includes Primary and Secondary Education National Fund transfers. Y Includes State and Federal Quotas, although the latter is channelled through MEX}. - 13 - 41. Direct expenditures by the federal Ministry of Education have accounted for an average of 37 percent of total public education expen- ditures. The Ministry's direct expenditures have grown impressively, but Table 4 shows that this contribution from the federal education budget has been partially offset by a marked decline in the Ministry's transfer programs. Consequently, the share of education financing shouldered by the federal Ministry of EdUcation has declined since 1965 while the state's share has increased. As in the case of the Northeast as a whole, the overall decline in the Ministry's transfers has occured despite increases in the federal contribution from the Education Salary tax. 42. Municipal education expenditures between 1964 and 1970 provided an average of 9 percent of public education expenditures. Pernambuco presents the only case in which the mission was able to obtain complete data showing the municipalities' education expenditures from their own resources. According to the data, municipalities have beer~ spending on average 14 percent of their budgetary tax revenues on education, well below the 20 percent legally required minimum. Since 1967, an increasing share of municipal education expenditures have been met by Participation Fund receipts. The termination in 1970 of the Ministrys of Education's transfers directly to municipalities is expected by ~ederal authorities to be offset largely by increased Participation Fund receipts, transfers from the state, and by an increase in the share of municipal revenues devoted to education. No estimates have been made by the authorities, however, concerning the feasibUi ty of significant new nows from these sources. Public Expenditures bl Level of Education 43. The distribution of public education expenditures among the different levels of education in Pernambuco significantly favors higher education. Of total public eduqation expenditures classified according to level of education in 1970,!/ 47 percent was devoted to higher edu- cation, 37 percent to primary education, and 16 percent to secondary education. Higher education has received an increased share of public education expenditures since 1964, when it received 31 percent of the expenditures, while the share of expenditures at the primary level has declined from 56 percent in 1964 and at the secondary level increased slightly from 13 percent. The increased share of expenditures at the higher education level can be attributed primarily to the establishment of a state university in the capital of Recife in 1966. 44. The relatively low priority which the distribution of public expenditures indicates for secondary education emphasizes the importance of priVate education at this level. Allocation of an estimated one-half to two-thirds of private education expenditures to the secondary level 1/ Equivalent to cr$l80.5 million (in 1971 prices), which is less than total public education expenditures due to the exclusion of expen- ditures falling under "Administration", "Training and Culture" and "Other" categories in the state's balance sheet. - 14 - would increase this level's share of total education expenditures to 25-30 percent. Nevertheless, the relatively small share of public expenditures devoted to this level introduces a bias against students who seek middle-level training but cannot afford private education. Increased public expenditures at the secondary level would be justified not only to broaden education opportunities but also to meet Pernambuco's relatively high middle-level manpower requirements. . 45. The total of public expenditures at each level of education in 1970 is presented below according to the percentage distribution among governmental levels: Table 5: PUBLIC EXPENDITURES AS PERCENTAGE OF TOTAL AT LEVEL OF EDUCATION MEC 1/ Direct & Transfers- State Municipalities Primary 100 8 75 16 Secondary 100 19 77 4 Higher 100 86 14 0 !I Includes earmarked transfers (Primary and Secondary Education Funds and Federal Quota of Education Salary Tax). Source: State Balance Sheets, Federal Ministry of Education, State Secretariat of Education. Similar to the pattern prevailing throughout the Northeast, state expendi- tUres account for the great majority of primary and secondary education expenditures, while Ministry of Education expenditures predominate at the higher level. Comparative data for 1964 reveal that the share of state expenditures at the secondary and higher levels has increased substantially, as has the share of municipal expenditures at the primary level. The Ministry of Education's share at all these levels has declined. 46. The state devotes most of its education expenditures to the primary level. Expenditures by level of education in 1970 show that 60 percent of the state's education expenditures were committed to primary education, with only 27 percent going to secondary education. Thus, although the state accounts for 77 percent of total public education expenditures at the secondary level (fable 5), these expenditures play a relatively small role in the state's overall education expenditures (Table 6). - 15 - Table 6: EXPENDITURES BY LEVEL OF EDUCATION Primary Secondary Higher State Expenditures 100 60 27 13 Ministry of Education 100 7 7 86 Direct Expenditures 100 5 95 Transfersb! 100 74 26 MUnicipal Expendituresg( 100 90 10 !! Primary and Secondary National Education Funds and Federal Quota of the Education Salary Tax. Y Estimated. 47. The breakdown of the federal Ministry of EdUcation's expendi- tures and 'transfers shows a lopsided distribution in favor of higher education, with 86 percent of the total going to this level. The Ministry's direct expenditures for technical secondary schools account for only 5 percent of total direct expenditures, partly as a result of the large amount of funds allocated to the Federal University of Pernambuco, one of the largest in Brazil. The Ministry's transfers to the state also show a relative neglect of secondary education in favor of the primary level. type of Expenditures: Recurring and Capital 48. Between 1964 and 1970 capital outlays accounted for an average of only 5 percent of Pernambuco's education expenditures from its own resources (see Annex 8). The largest item in recurrent expenditures is personnel salaries (mainly teachers). During the 1964-70 period salary expenditures alone accounted for an average of 75 percent of the state's education expen- ditures from its own resources. The continuing expansion of enrollments and the present need to improve the quality of education by attracting qualified teachers through higher pay both suggest that the state will continue to be forced to devote the bulk of its education funds to recurrent expenditures. 49. Federal transfers from the Ministry of Education (particularly the Education Salary Tax transfers) have provided the main source of capital investments, although an estimated 50 percent of these transfers have been used by the state to meet recurring expenditures, primarily personnel salaries. A very small amount of assistance for capital outlays has been provided by SUDENE. MuniCipality education expenditures are estimated to have been at least 90 percent recurrent during the 1964-70 period. 50. The great bulk of direct expenditures by the Ministry of Education have also gone to meet recurring costs. Data available for 1968 and 1969 show that recurring costs absorb 90 percent of federal direct expenditures at the secondary education level and 86 percent at the higher level. As a resul t of the large amount of funds allocated by the Ministry to the higher level, capital investments at this level have been greater than all capital outlays at the primary and secondary levels combined. - 16 - B. Private Expenditures 51. Private education expenditures consist of fees paid to private schools and of expenditures, by all students, on items associated with schooling such as uniforms and books. The range of private fees for different levels of education were obtained for 1971; they were about 18 percent higher than the 1970 rates. The fees are approved annually by the State Council of Education. The range for primarY education fees was Cr$50 (minimum for the interior) to Cr$983 (maximum for the capital areas); for ginasio, it was Cr$lOO (minimum for the interior) to Cr$l,131 (maximum for the capital); for colegio, Cr$42.3 to Cr$1,251. 52. Private expenditures in 1970 were in the order of Cr$55 million. This is derived from prorate estimates of expenditures at primar,y, ginasio and colegio levels, employing estimates of average fees. 53. The cost of books varies from Cr$6-10 at primary level and Cr$lO-30 at secondar,y. The books are privately printed and their availability is not subsidized by the overnment. The state Secret,ar,y, however, does choose the titles for the various courses among alternatives presented to him by pub- lishers. Prorate estimates on total book expenditures are not possible because of inadequate data on book use. C. Recurrent Unit Costs Formal Education 54. In 1970, recurrent unit costs for the state operations were about Cr$l80 for primar,y education and Cr$360 for secondar,y (in 1971 prices). While these costs per student represent significant increase (in real terms) over the last five years, they have varied intermittently because of the uneven flow of realized education expenditures. For ex- ~le, in 1969, both unit costs were higher. In primar,y, they were slightly so at Cr$160 and in secondar,y substantially so at Cr$380 (in ::urrent prices). The unit costs in Pernambuco are gener8l1y low, parti- ::ularly at the secondary level, reflecting the low teacher salaries and Clle limi ted expendi tures fo r teaching materials. The costs are, however, ligher than the respective ones for the region, indicative of the better ~conomic conditions prevailing in Pernambuco and the higher teacher 3alaries the state pays compared with other Northeast states. ,5. Economies have been realized with the expansion of enrollments. Endirect costs, consisting of administrative and related expenditures, ieclined to acceptable levels of about 7 percent of the unit costs in )rimary and 4 percent in secondary in 1970. They were as high as 14 per- ~ent and 18 percent respectively in the 1964-70 period. Of the direct lOsts, personnel expenditures accounted for about 95 percent in primar,y md 73 percent to 95 percent in secondary. Combining direct and indirect ~osts, personnel expenditures accounted for 93 percent in primar,y and 92 )ercent in secondar,y education, with variations ranging from 88 percent ~ 94 percent in primar,y and 66 percent to 93 percent in secondar,y. - 17 - 56. Municipal recurrent unit costs are extremely low because of the low teacher salaries and the virtual absence from schools of teaching materials. Estimates of expenditures per student for 37 of the 143 muni- cipalities, accounting for about one-third of the municipal enrollments and for which data were available for 1970, ranged from Cr$24 to Cr$217, in 1971 prices. The average unit cost was about Cr$96. Unit costs for all municipal enrollments based on actual expenditures on education as reported in the 1970 balance sheets have been estimated to be much lower, however, at about Cr$42. This estimate is very much in line wi. th the corresponding average for the Northeast. But, contrary to the relative worsening of these costs for the region as a whole, there has been some minor relative improvement in Pernambuco. In 1964, these costs represented about 20 percent of the state unit costs while in 1970 they amounteq _to about 23 percent. Increases- in unit costs have come about basically from the salary adjustments decreed by law. Adjustments of municipal teacher salaries to state minimum salary levels would increase unit costs of municipal stUdents to the level of state unit costs, but this is not feasible in view of municipal financial constraints. 57. Higher education is very expensive. Data avatlable only for 1968 suggest that the unit cost for the federal university of Pernambuco were an exhorbi tant Cr$lO,900 (in 1968 prices). The cost of higher educa- tion is so high because of (a) the very Imf student/teacher ratio, which is five for the federal university and four for the rural one; and (b) the costs include allocations to research and extension which are an integral part of the university functions. But, even allowing for these activities, the expenditures per student in the federal rural university are high. Vocational Training Unit Costs 58. In industrial vocational training, unit costs are estimated on a stUdent/hour basis. The cost amounted to Cr$2 per student/hour for courses for minors and Cr$2.5 for the adult programs. The highest costs were in the textile training (Cr$6 per student/hour). These costs compare favorably with similar costs in SENAI centers in other states. V. EDUCATION DEVELOPMENT STRATEGY: EVALUATION.! PROJECTS, AND THEIR FINANCING --.. 59. The states l education development strategy attaches high priority to the implementation of the new program of basic education according to the general guidelines of the Ministry of Education. The State Secretariat of Education in Pernambuco also attaches much importance to the expansion of educational opportunities at the basic level over actions aimed specifically at reducing the system1s inefficiency and expanding enrollments at the colegio level. Consequently, the Secretariat1s planning manpower has been primarily devoted in the preparation of adequate documentation of the requirements of the implementation of the new program. The sector plan has been drafted and is under internal review. - Jh .. 60. The State Secreta~iat of Education has decided to implement the new education program in two stages. The first stage, which will last about five years, will gradually allow the expansion of enrollments to the sixth grade of basic education. In the socond stage, it will pro- vide the facilities required to implement the new practical program. The capital expenditures for implementation of the first stage will be mini- mized by the ongoing primary school mapping which is expected to be com- pleted early next year. It will lead to class reshuffling in different facilities and to enlarge classes to minimize the costs of enrollment expansion. These costs are tentatively estimated in the order of Cr$5 million for the state and about cr$2 million for the municipios in 1975. They are based exclusively on required classroom construction to facili- tate enrollment growth and their magnitude would be affected by the results of the mapping. (It has been assumed that (a) there are 34 stUdents per class; and (b) the classroom will be used in a double shift). The projected increases in enrollments in ~rades five and six will cost by 1975 a total of Cr$8 million, of which Cr$7 million will be state expenditures. (The costs have been estimated by applying unit cost esti- ~ates and an amended enrollment distribution b~ administrative level to reflect the tendency of enrollment concentration in state schools.) 61. The implementation of the second stage will be costly. There is a sore lack of practical facilities. The specific requirements are yet to be determined since one of the main expected products of the school mapping is to collect information that will assist in determining the most efficient way of implementing this second stage of the strategy. If a very economical idea of providing practical facilities in a school serving a number of satellite schools is followed through, the Go!ernment "ould have to engage in a program of constructing and/or equipping. these central schools containing rooms for teaching practical courses in industrial arts, agriculture, commerce and homa economics; guidance facilities and administrative space. The cost of such a school with two of each type of practical rooms would be roughly US$120,000 with a foreign exchange component of about 50 percent. Each such center could be of a :::apacity of 200 places to be used in three shifts. Fifty of these centers would provide facilities for about one-third of the projected enrollment in the seventh and eighth grades and would cost about uS$6.0 million. The implementation of such proposal would of course require the identification )f clusters of primary schools to be servad in this economic way by the ~entra1 school. 52. The elimination of the examination at the e..,d of primary school rill increase student flO'lis after grade five. Assuming also that the )verall enrollment expansion will continua at about the same rate as in ~he 1964-70 period, there will be a significant improvement in the state's 9nrollment ratio among those in the 7-~~ yeara age group by 1980. This Ls illustrated i.."l the t.c':l.ble belo\!~ - 19 - Table 7 Gross Unadjusted Enrollments Adjusted Population Enrollments Enrollment of 7-14 Enrollment Year Age 7-14 (Grades 1-8) Ra.tio Years Ag~ Ratio 1975 1,170,000 1,06),000 91% . 850,000 73% 1980 1,286,000 1,370,000 106% 1,100,000 85% Y Assumed at 80 percent of gross enrollments. 63. The attainment of these enrollment ratios, which .for 1975 fall short of the Ministry of Education target of 80 percent net enrollment ratio among those of 7-14 years of age, would require in 1975 recurrent expendi- . tures of Cr$118 million by the state and about cr$18 million by the municipios. The respective estimates for 1980 are Cr$l65 million and Cr$20 million. All estimates are based on 1970 unit costs in 1971 prices. The cost estimates do not allow for real increases in expenditure per student. The share of the private sector has been assumed to continue its decline and account by 1980 for 8 percent of the enrollments of the first four grades (versus 11.9 percent in 1970) and 19 percent of the enrollments of the upper four grades of primary school (versus 49 percent in 1970). Capital expenditures in 1980 have been estimated at Cr$B million for the state enrollments and Cr$2.5 million for the municipalities (in 1971 prices).!! 64. Assuming that the state will continue to devote 17.5 percent of its budgetary resources to education and 60 percent of its education resources to primary education, the requirements for funds compare unfavorably with pro- jected state resources and government transfers through the education salary tax estimated at Cr$70 million in 1975 and Cr$88 million in 1980. The implementation of the reform program and the expansion of enrollments cannot be sustained unless additional assistance is extended from the ederal Govern- ment or provided by external agencies. The situation is even worse with the municipalities whose revenue basis is much more limited. 65. This is an area where the Bank could assist the Government in financing a portion of the capital expenditures to implement the reform, thus releasing state resources to meet enrollment targets and improve educational quality. Priority ranking for this assistance can be deter- mined only after the results of the school mapping are analyzed and the resulting requirements for additional capital financing are determined. Y The cost ofa classroom has been put at Cr$22,500. - 20 - s. Such assistance would be much more needed by the municipios whose esources are more limited and could not support the financing of the new Jucation program. If one were to assume the same timetable of implementa- ion of the new education program as in the states, projection of recurrent ld capital expenditures in 1975 ruld 1980, and of resources to be devoted ) education indicate a gap of Cr$8 million in 1975 and Cr$7 million in ~80, without allowing for any real increases in expenditures per student ~ich are currently very low. 7. The new education program doesnrt address itself to qualitative nprovements of the primary leyel education with regard to teacher fficiency, wastage from repeaters and dropouts, etc. A more balanced pproach to quantitative expansion in the provision of educational oppor- ~nities and qualitative improvements would seem to be a reasonable trategy given the great inefficiency of the sector. The reduction of epeaters could lead to an internal generation of savings that would tnance part of the enrollment expansion. 3. There are two priority areas where the Bank could assist the )vernment in improving the quality of the system: teacher upgrading ld programs for overage children. The upgrading of 80 percent of lqualified teachers over a six""Year per,iod would cost a minimum of Cr$20 illion, a sum which the states and municipalit.ies clearly cannot. define ) spend. The Bank could assist in financing a portion or.all of these lCpendi tures. All cos ts of teacher training can be considered as capital lvestment since there will be returns from such investment over the life- tme of the teachers. 1. For overage students plans exist to expand special supplemental )urses in order to free school places for regular enrollment growth, but ~e implementation of such plans will be slow unless a specific plan of ~tion is drawn and the additional financial resources required are jentified and allocated from local resources or external aid. A school apping is being undertaken to assist in the reationalization of the istribution of enrollments and through facility conversions to achieve aximum space use. The Bank could assist the state government in this ~ea, once preparatory work according to suggestions developed in the )lume on the Northeast has been completed. The more specific require- ~nts for such a program consist of curriculum planning for these students ld some limited special teacher training. This is also an area on which )ecial attention could be focused by the proposed survey of the eduoa~ Lon system to be financed under the first Bank education project. ). The preoccupation of the state government has been with the nplementation of the new education program. Planning for colegio level iucation is in a secondary, non-priority, status. It is true that lcreased student enrollments won't create much pressure for increased )legio level education until near the end of the decade, but, this 3vel of education also plays a pivotal role in meeting the requirements ~ the economy for qualified manpower. It should not, therefore, be ~glected. The proposed education sector survey should include as much lformation and analysis as possible for this level of education, with ~gard to its efficiency, both internal and external, and the require- ~ts for its growth. - 21 - 71. The state's educational planning unit, composed of eight ntechicosl! and supporting staff of 11, is capable of addressing itself to the various problems of the state education system. It enjoys a high regard within the Secretariat. But, it needs strengthening both in additional, diversified manpower, as well as in improving its educational planning skills. The Government recognizes this and would welcome any opportunity leading to the strengthening of its education planning staff such as participation in the educational planning course recommended by the mission earlier in the Northeast region 1 s educatiorJ system. 72. In the area of vocational training no comprehensive strategy exists and training program planning is usually limited to two years only. Excess capacity available at SENAC's centers could be used, as long as it exists, to supplement the meager practical facilities of secondary schools thus avoiding cons truction and equipping of additional facilities. A plan of use of these facilities, including the requirements and costs for staff should be developed by the Secretariat of Education and the State Admini- stration of SENAC. SENAI's operations need to be expanded to meet the increasing requirements for training of the growing state economy. The centers cannot cope with all requests for training, and the situation is becoming worse by the year. With the effective linkage SENAI has with industry:1 it is best suited for meeting the immediate and longer-run indus- trial vocational training requirements. 73. This is an area of high priority and the Bank could assist in the construction and equipping of a new vocational training center in Recife under the administration of SENAI. While additional information of the requirements for vocational training should be developed in the sector survey, the capacity of the center could be about 300 places and minimum annual turnover of trainees about 600. The center could serve in a twofold function: (a) supplement SENAI's other vocational training activities; and, (b) serve as a regional instructor training center for SENAI's opera- tions in the Northeast. Pending further identification of the needs, the center could also serve as a regional center for teaching specific skills required for the industrial development of the Northeast, skills for which training facilities do not exist in the region or are inadequate. The cost of this center would be about US$600,000 with a foreign exchange component of roughly 60 percent. 74. Small farmer training is sorely inadequate. The rural extension service activities are strongly interwoven with the credit extension system. Small farm holders not obtaining agricultural credit are not likely to benefit from extension service guidance in crop cultivation or use of new methods of production. The manpower compostion of the extension service is aominated by agronomists who often are not trained in the practical requirements of their field jobs and whose training, in any event, would represent an overinvestment in the education if they were to cater to small farm production. In the absence of any administrative structure to promote small farmer training, PIPMO offers the best medium-term alternative for the organization of farmer training and it should expand its involvement in this area. In order to respond, however, to the long- term requirements of increased small farm productivity, that will determine the livelihood of many farmers, a study ought to be undertaken in order to - 22 - identify (a) the educational and other background and the training require- nents to develop an agricultural technician capable of responding to small farmer demand for guidance, and (b) the most efficient and productive arrange- nents for farmer training (i.e., on farm training, short residential courses, or a combination), as may be required to implement the Government's agri- cultural programs and meet production targets. Clearly, this stuqy would be applicable beyond the state of Pernambuco and should be ex.tensive enough to respond to the extension service dtlmands by farmers in colonized areas in other Northeast states. ANX.ti.X 1 PRIMARY EDUCATION STATISTICS, 1970 Schools Ol9.ssrooms Teachers Enrollments Total General Female Total Rural Total Rural Total Rural Total Rural Tota.l Rural ( Federal 37 21 96 41 142 66 122 65 4,620 1,927 ( State 1,590 704 3,015 743 5,417 816 5,284 721 138,858 19,551 CEJtRA ( Municipal 8,022 6,582 8,430 6,603 9,209 6,632 8,959 6,507 227,115 157,060 ( Private 873 243 2,389 291 3,262 27ft 3,130 266~ 72 ,487 1,207 ( ( Total 10,521 7,550 13,930 7,654 18,030 7,792 17,495 7,559 443,080 185,745 ( Federal 8 22 47 -- 47 1,599 ( State 105 3 532 4 1,473 5 1,471 3 39,206 252 FORTA- ( Municipal 189 16 352 25 756 hI 751 41 22,211 1,135 LEZA ( Private 310 ~ 1,132 li 1.685 21l. 1.609 li 38,546 ~ ( ( Total 612 47 2,038 60 3,961 . 80 3,878 75 101,562 2,093 Source: State Secretariat of Education. SECONDARY EDUCATION LO\VER LEVEL- expenditures at the different levels of education has remained relatively constant since 1964. 37. As in the case of Pernambuco, the relatively low priority which the distribution of public expenditures indicates for secondary education emphasizes the importance of private education at this level. The rela- tively small share of public expenditures at this level reflects the bottleneck existing for qualified students who desire middle-level training but cannot afford private education. The introduction of the new program of basic edUcation will increase the student flow into this level and re- quire greater secondary school expenditures by the public system. 38. The total of public expenditures at each level of education in 1970 is presented in Table 10 below according to its percentage distribu- tion among governmental levels. Table 10: PUBLIC EXPENDITURES AS PERCENTAGE OF TOTAL AT LEVEL OF EDUCATION MEC 1/ Total Direct & Transfers- State Municipal Primary 100 27 52 21 Secondary 100 26 70 5 Higher 100 91 9 0 1/ Includes earmarked transfers (Primary and Secondary Education Funds and Federal Quota of Education Salary Tax). Source: State Balance Sheets and Federal Ministry of EdUcation. State expenditures account for about one-half of the public expenditures at the primary level and almost three-fourths of those at the secondary Level. Compared to the Northeast average,Ceara's expenditures at these - 13 - levels constitute a smaller share of the totals, while the Ministry of Education's expenditures account for a greater share of total. expenditures at each level. There has bE~en no significant change in the distribution seen in Table 10 since 1964. . 39. Table 11 below presents a breakdown of the expenditures from each level of government according to the level of education at which the expenditures are made. Over half of the staters expenditures are devoted to primary education. Secondary education receives 35 percent of state education expenditures, a share which is slightly greater than the North- east average. Table 11: EXPENDITURES BY LEVEL OF EDUCATION Total Primary Secondary Higher Ministry of Education 100 18 9 73 Direct Exrjnditures 100 4 96 Transfers_ 100 77 23 State Expenditures 100 54 35 11 Municipal ExpendituresS! 100 90 10 !I Includes Primary and Secondary National Education Funds and Federal Quota of the Education Salary Tax. 2/Estimated. Direct expenditures by the Ministry of Education, however, show a relative neglect of secondary education, which accounted for only 4 percent of these expenditures in 1970 compared to 96 percent directed to higher educa- tion. The Ministry's transfers to states and municipalities, on the other hand, significantly favor primary education, which received 77 percent of the total transfers in 1970. Type of Expenditures: Recurring and capital 40. Almost all of Ceara's education expenditures from its own resources are used to meet recurrent costs. During the 1964 to 1970 period personnel salaries alone absorbed an annual average of 91 percent of the state's budge- tary resources committed to education. During the same period, capital expenditures accounted for an average of only 5 percent of the states own budgetary expenditures on education (see Annex 7). These capital expendi- tures, in turn, have been approximately equally divided between the primary and higher levels of education. According to the state balance sheets, no capi tal expenditures have been made in the area of secondary edUcation since 1965. 41. Federal transfers from the Ministry of Education have provided the main source of capital investments for the state, ciJ.. though between 50 and 70 percent of. these transfers have been used by the state each year - Ih - to meet recurring expenditures. The great bulk of direct expenditures by the Ministry of Education have also gone to meet recurring costs. Data available for 1968 and 1969 show that recurring costs absorbed 90 percent of federal direct expenditures at the secondary level and 85 percent at the higher level. Like the case of Pernambuco ,as a result of the large amount of funds allocated by the Ministry to the higher level, capital investments at this level have substantially exceeded the total capital outlays of the state and municipal governments at the primary and secondary levels combined. v. EDUCATION DEVELOPMENT STRATEQY: EVALUATION, PROJECTS AND THEIR FINANCING b2. Consistent with the national priorities in the sector, the state's educational development strategy attaches high priority to the implementa- tion of the new program of basic education according to the general guide- lines of the Ministry of Education. But the State Secretariat of Education has more limited planning resources and its preparation of the diagnostic and the documentation of the requirements of the implementation of the new program are lagging. h3. A specific strategy in implementing the education reform is being developed for the state and municipal schools only. Until now, the munici- pal schools have been independent but planning for their use and for expan- sion will be gradually undertaken by the Planning Office of the State Secretariat. The staters intention in implementing the reform is to concen- trate its financial resources on education in the urban areas and leave the rural areas under the financial responsibility of the municipal governments. This implies that the provision of educational~services to the more backward areas which are the areas with the greatest needs would be delegated to the most financially constrained government organs. hL. The cost implications of such a division of responsibility would have to be derived and assessed by the state government. Already the state finances the bulk of the urban public enrollments. B,y concentrating further on these enrollments, the state may be able to attain higher overall enroll- ment ratios. But, the responsibility for the financing of education services in the poorer and more dispersely populated areas, where the least economic· (or uneconomic) size schools exist and where the quality of education is lower, is left to the least financially capable governments. L5. The implications of such a policy are significant in terms of the provls1on of educational opportunities to the rural and urban areas. It has already been shown that the inequities in such provisions have been aggravated in the 1960's. The enrollment growth in urban areas has been about double that of rural areas (para. lh) and great differences in age enrollment ratios of the 7-1L age group have prevailed among rural and urban areas (parao13). If the Government is to pursue a policy of more equitable education at that level, it should adopt a policy which would also drastically increase the enrollment growth in the rural areas. - 1.5 - 46. The financial constraints under which the expansion ~f the education system can take place are illustrated below for the primary level, which absorbs most of the state and local funds for education. The financial requirements of enrollment expansion of 4.8 percent and 7.0 percent p.a. in the decade have been estimated. The first growth rate is equal to the one realized in primary education in 1964-70. The second, is the rate of enroll- ment expanSion that would lead to primary gross enrollment ratio of about 70 percent in 1980. ., -. 47. The recurrent_ expenditures that would be _required to sustain primary enrollments under the two growth assumptions have been estimated as follows: Enrollments 1980 , Recurrent Expenditures 4.8% p.a. 7% p.a. (a) (b) (a) (b) Total 708,000 871,000 Cr$48.9 m Cr$60.3 m (MUnicipalities - .51%) 361,000 444,000 Cr$l2.2 m Cr$l.5.1 m (State Government - 36%) 2.5.5,000 314,000 Cr$36.7 m Cr$4.5.2 m These required expenditure estimates are based on 1970 municipal and state unit costs and assume no real increase in per stUdent expenditures at either administrative level or significant imprOVements in the internal efficiency of the system. They assume a constant share of municipal enrollments but a decrease of the private sector's share to 10 percent of the total by 1980. The state enrollments have been relatively increased from their present share to rene ct the diminishing importance of the private sector. Because of the much higher state unit costs, i f enrollments were to be further re- allocated in favor of the state schools, a one percent increase in the 1980 state enrollments at the expense of the municipal ones would raise the re- quired state primary education recurrent expenditures requirements by Cr$300,000. 48. The above expenditure estimates are only based on the present system of five grades primary school. If it were assumed that by 1980 all state and municipal enrollments would extend through the newly established basic education cycle of eight years, additional recurrent expenditures in the order of Cr$2 •.5 million and Cr$3.1 million would be required for the states under each of the two enrollment growth assumptions, and Cr$0.8 million and Cr$l.O million, respectively, for the municipality. (These estimates are based on the assumption that (a) the enrollment distribution by grade in the first five grades would not differ substantially from that in 1969 and (b) that enrollment in grades 6 to 8 would be at each grade 70 percent of those of the previous grade. This assumption on the progression rate compares with the average rates of 71 percent for grade 3 and 66 percent for grade 4 in the 1960-68 period. Distribution of grades 6 to 8 enrollnents among municipal and state schools has been assumed to be similar to that of pri- mary enrollments at large.) - 16 - 49. Al though it is reasonable to assume that the school mapping will lead to a more efficient use of existing physical facilities, most of the above additional enrollments would have to be accommodated in new facili- ties. This would imply a total annual expenditure of the order of Cr$8.3 million and Cr$l4 • .5 million for· each enrollment projection, estimated on the basis of Cr$22,.500 for a classroom of j4 places accommodating 68 students . in two shifts. On a disaggregated basis, the annual funa requirements would be cr$4.4 million and Cr$7.2 million for each enrollment growth assumption for the municipalities and Cr$3.8 million and Cr$7.2 million for the state • .An undesirable increase in the USE: of the new classrooms by three shifts would reduce annual capital fund r:equirements by about one-third. 50. Assuming continuous trends in the expenditures for colegio level education, it is estimated that qy 1980 a total of some Cr$23.2 million would be required to sustain enrollments in state and municipal schools, of which approximately Cr$20.8 million would be for recurrent expenditures. 51. The projected municipal and state expenditures on education based on state and municipal revenue prospects and federal fund transfers are .estimated at Cr$56.2 million and Cr$14.2 million, respectively, for 1980. Of these, on the basis of present relative allocations for each level of education (see Table 11) about cr$44.0 million would be spent on basic education and Cr$l9.4 million on secondary. These funds are not sufficient to s'lstain the continued growth of enrollments in either basic or secondary education at a rate equal to that of 1964~?O. _ Although the projected re- source gap may lead the governments to reduce investment expenditures by introducing a third shift in school facilities, additional measures would still have to be taken to ensure fund availability that would allow the expansion of the education system to meet enrollment ratio objectives. These measures could consist of further reallocation of funds within the state in favor of a quantitative only expansion of the education system, additional federal transfers or a combination of both. While it is quite feasible that enrollment expansion will take place at slightly diminished rates of growth, when the financial constraints set in a few years, the need to improve the quality of the education offered would become even greater. This is an area where the Bank could assist the state government in implementing well designed programs that would improve the content of classroom activity, teacher quality and make education more relevant for the overaged students. 52. The Bank could support the much needed qualitative improvement of basic education on a priority basis with projects similar to those outlined in the case of Pernambuco: (a) training centers to allow an exploration of the students' practical abilities or interests (b) teacher upgrading programs, particularly for the municipio teachers who are in their overwhelming majority unqualified (para. 18) and (c) special programs for overaged children now attending regular primary school programs. - 11 - 53. The teaching centers could be established in localities in such a manner that they would promote more equitable distribution of educational opportuni ties. Because of th'3 lack of a plan of action and of data the cost of a project assisting the government in the provision of training centers is difficult to estimate. Conversion of existing facilities to such centers is also possible. A project in this area would have to await the results of the school mapping prior to project preparation. Assuming a . project of the same magnitude as in Pernambuco (para. 68 of the case study), its cost will be in the order of uS$6.0 million. The cost of the teacher upgrading would depend on the selected program required. If, for example, a program similar to that of Pernambuco's was selected, the cost for up- grading 5,000 or 50 percent of the unqualified primary teachers would amount to Cr$15 million at an assumed expenditure of Cr$3,000 per teacher. Such an undertaking cannot be readily assumed by the state and more so by the municipalities of whos~ staff only 9 percent are qualified (Table 5). The Bank could assist the Government in this priority area in developing and financing a teacher upgrading program, particularly for the municipal govern- ments. Finally the requirements for the special program for overaged children would be limited, concentrating on some special teacher training and curri- culum planning. 54. The comments on planning of colegio level education in Pernambuco are also applicable here. The proposed education sector survey should include as much information and analysis as possible for this level of education, with regard to its efficiency, both internal and external and the requirements for its growth as related to the number of entrants at higher level institutions Rnd of the manpower requirements of the economy. The Bank could assist the Government in the construction and equipping of schools at this level pending the identification of specific needs by the sector survey. 55. The state's educational planning unit needs strengthening. It now consists of limited personnel: three "technicos" and eight supporting staff. While it is involved in basic education planning exercises and enjoys technical assistance in its work from the Ministry of Education, it requires additional and diversified manpower and improvement in the skills of the present personnel. The State Secretary of Education, who has high regard for his planning team and its work, recognizes these needs and would welcome any opportunity leading to the strengthening of the planning team, such as participation in the educational planning courses recommended by the mission earlier in the discussion on the Northwest region's education system. 56. In the area of vocational training no comprehensive strategy exists, as in Pernambuco. The Inter-American Development Bank will assist the Government in the construction of another vocational training center to be operated by SENAI. The center would be located in an area of growing industrial importance to the state and would add greatly to the state1s ability to meet the requirements for training in specific skills. With the construction of this center, it is likely that some excess training capacity in SENAI's centers may develop for a few years.. Combined with available - 18 - space and equipment from the unde'r-outilizedSENAC center, the state would meet its more urgent needs for classroom space and equipment for practical course~ i~ industrial arts, commerce and home economics by dra~g a plan of use for the.ae excie-ss capacities, wi th ana.I.ogous compensatory finance for the facilities arid- staff- of SENAI and SENAC. 51. Requirements for specifil~ vocational training which would be uneconomic to undertake in Ceara could be combined with other states' requirements and be accommodated in the proposed regional training center in Pernambuco, under SENAI (para. 12 of Pernambuco Case Study). 58. Finally nth regard to farmer training whatever is written in the Pernambuco case study is more applicable in the case of Ceara, because -of the state's more rural nature. PIPMO's initial. undertakings of former training should be encouraged and supported along the lines suggested in the previous case study. ENROlLMENTS AND POPULATION OF 7-14 AGE GROUP, 1910 Enrollment AGE 7 8 9 10 11 12 13 14 Primary Level la. 332,064 74,461 70,700 56,409 46,256 32,117 24,068 16,171 11;282 2a. 118,882 4,047 16,568 22,385 23,018 19,097 15,556 11,129 7,082 313 • ' 73,677 2,915 8,987 14,250 14,493 13,683 11,090 8,259 La. 50,007 58 2,445 6,811 10,309 11,2")6 10,828 8,325 Lower Secondary Level la. 26,911 5,597 6,204 7,457 7,853 213. 10,779 344 2,215 3,564 4,656 3a. 4,328 201 1,250 2,877 La. 1.098 13 1,085 SUb-Total Primary 574,630 78,508 90,241 90,226 90,335 76,611 64,543 49,218 3u,948 TOTAL Ginasio ~21116 .21241 8. !:l£0 12.284 16.~11 TOTAL Primary and Ginasio 617,746 78,508 90,241 90,226 90,335 82,552 72,963 61,502 51,419 Population 1,066,271 147,072 141,820 131,315 152,325 120,810 1.'36,567 120,810 115,557 Deficit 448,525 68,564 51,579 41,089 61,990 38,253 63,604 59,308 64,138 Index of Primary Enrollments 54.0 53.L 63.6 68.7 59.3 63.4 47.2 40.7 30.2 Index of Ginasio Enrollments 4.0 4.9 6.2 10.2 14.3 Source: Pernambuco, Plano Estadual de Educacao de Pernambuco, Diagnostico, Volu:me 1, Recife 1972. :> ~ x I-' Administrative Level Aotuall~ Teaghins Federal State Munioi:eality Private Qualifiei Anos Total Noo ~ No. ~ No. % No. % Total No. 1964 STATE ~ ~ ~ ~ i;ti~ IS' .427 ?J. 0.1 2lo L..1li Sl.& C:;.pital Interior 3,577 11,920 23 0.2 2,167 4,229 35.5 5,722 48.0 1,946 t 39. ' 16.3 lh.8*§ 3,2 11,593 2,997 4,728 91.7 40.8 ~ STATE 1~.436 0.2 ~ ~ ~ .2£. 9..J1.l U& 17.0 1~1128 ~ 54.0 Capital 3,028 13 0.4 1,805 9.6 207 6.9 1,003 33.1 2,877 2,723 94.6 Interior 12,408 19 0.1 4,328 34.9 6,435 51.9 1,626 13.1 11,851 5,235 44.2 1966 STATE Capital Interior 17.4~8 3,9 1 62 37 0.3 0.9 0.2 L2ill! 2,793 lli. 70.9 7,074 225 40.6 T.7 2'~g~ ~ 22. ~ 3, 8'U 2, 9 l ~ 1),it97 25 4,791 35.5 6,849 50.7 1,832 13.6 12,908 5,742 44.5 1.267 STAT~ 17 ,586 22- £hi §..&l2. ~ ~ 7.070 40.2 13.8 17. 18 2 10.072 58.6 Capi tal Interior 3,97h 13,612 36 19 0.9 0.1 2,818 5,221 70.9 3B.h 227 6,843 5.7 50.3 89 1,528 22.5 11.2 ·.. 1968 STAT~ 19.763 Q.J±. ~ 46.6 ~ ~ 72 ~ 13.1 12.16J 11.681 ~ --oapita1 4,388 7 0.1 3,150 71.8 3 7 8.4 864 19.7 4,388 4,138 94.3 Interior 15,375 65 0.4 6,064 39.5 7,524 48.9 1,722 11.2 15,375 7,543 49.1 . l2§2. - STATE Capital 20,177 4,477 96 4 0.5 0.0 9,293 3,214 46.1 71.8 8,086 376 40.1 8.4 2,691 882 13.3 19.7 19,702 ·.. .. · ·.. .. Interior 15,689 92 0.6 6,079 38.7 7,710 49.1 1,809 11.5 · ·.. J..21Q. STATE 20,717 48248 2.3 9,319 45.0 8,140 39.3 2,776 13.4 20,717 Capital 4,323 80 1.9 2,859 66.1 337 7.8 1,047 24.2 4,323 ·.. Interior 16,394 402 2.5 6,460 39.4 7,803 47.6 1,729 10.5 16,394 ·.. Source: Perr.amhuco, Plano 5stadua1 de Educacao de Pernambuco, Diagnostico, Volume 1, Rec fe, 1972. , • , . .... PERNAMBUCO ANNEX 3 PRIMARY EDUCATION NUMBER OF SCHOOLS BY RURAL - URBAN AREAS 1964/70 . UGEND tOOOIUNITS , _ URBAN -- RURAL , , ~----- , , , • , ,, ,, II ,, ,, ,, ,, 5 ~ .... ... ...... ..... ... ~ . . . . . ~t-----· .. I~ ~ I I t96S In6 'il7 1968 itU \970 Source: Pernambuco, Plano Estadual de Educaoao de Pernambuco, Diagnost1co, Volume 1, Recife 1972 .--- ------- pmNAMBUCO PRIMARY EDUCATION DISTRIi3UTION OF SCHOOLS, BY ADMINISTRATIVE LEVEL 1964/70 _NDtItAl __ STATE _ •• MUNICIPAL ••• PRIVA'l'E I . ,.,.. . ................ "- ...... "- . .". ,.,.." -.. .............. ... ...-. "- ~. "",,0" _0 ",," • , ----- •. 1------ ... --_ .. - --- --. ----.-- .- .,... -- ••. . , • .. • • •• • . • • • • .. " " ••• •. . " . • . • .. • • • • • ... . • • . • • ~ ... tl65 ttU 'H' .ta till .111 Source: Pernambuco, Plano J!:stadual de Educacao de Jternambuco, Diagnostico, Volume IJRec::i:t:~ 19I2 ANNEX 5 SECONDARY EDUCATION ENROLLMENTS AT BEGINNING OF YEAR BY ADMINISTRATIVE LEVEL, 1964-70 Administrative Level Federal Sta.te Munici12a1itI Private Year Tota.1 Number % Number % Number % Number % 1964 81,089 2,616 3.2 18,814 23.2 5,614 6.9 54,045 66.7 1965 90,958 2,454 2.7 24,974 27.5 6,727 7.4 56,803 62.4 1966 101,762 2,969 2.9 31,728 31.2 7,691 7.6 59,374 58.3 1967 114,911 3,192 2.8 40,785 35.5 9,534 8.3 61,400 53.4 1968 132,502 3,426 2.6 48,328 36.5 12,085 9.1 68,663 51.8 1969 145,686 3,309 2.3 49,905 34.3 16,367 11.2 76,105 52.2 1970 168,088 3,963 2.4 62,463 37.2 18,876 11.2 82,786 49.2 Source: Pernambuco, Plano Estadua1 de Educacao de Pernambuco, Diagnostico, Volume 1, Recife, 1972. PERN.AMJ3UO 0 ANNEX 6 GROWTH OF ENROLLMENTS IN HIGHDi EDUOATION BY COURSES, 1966-1970 mEND _ooaS TUDEN'lS __ PHILOSOPHY - SCIENCES AND LETTl!RS ••• ADMINISTRATION AND OOONCMIOS • _LAW . ••• ENGINEERING _ • _ MEDIOINE I I I I I I I" , ,, , , , , • , , ,, , , , , , , , / ,, / • , ,, / , ,, ...... • t9G6 1961 I,,, t969 .97. Source: Pernambuco, Plano Fa tadual De Educacao De Pernambuco, Diagnost1co, Volume 1, Recife 1972 ------- .-- --- EARNINGS AND EDUCATIONAL BACKGROUND, 1969" I ! ".:: ..xq: le' (O'{ll~' I ~tt; f"""'. _'0. ':t-.' it::."!. F~.i.. :w:~ s p~~~\'-1~ .- >r i ;-,,,!,'v r --" !t("::;f:. th.-Ul C.Sl19 ""-.J I ',j . . ler? I20-Cr$29') l!~rc I: :. I --' ---; than Cr$299 i. 'l~"-[;c:f I _-.i. ___ _ ~). 0 1 '---- ..)- ,j f * otal J,___ _________ _ ' 11,'·iAr'·,. ~ 36,2[9-----_,_ --'-1,________ ---, Numbers are proportions ~,f tr-; .-lls. The proportions in ri~e upp'~'- pa~ t o( tho: boxr'!'; '-::_JI '} .~~~--~~ ~}rre'_-fi'oTId td :-~, rOi dl :~t the ::O(f TL rh..' ~0t::,;>.!· .c.:i .~'.,; correspond to the total!:' on tile vertical coluIlJ::ils denotin.g educatlolla.l at lainmQntf: ~ Source: Hinisterio do Trabalho e Prev1dencia Social - Bol~t:t~ Tecnico de Set,~brl~ - Apuracao Lei de '1/3 - N<,:.. 20,. S~tembrn 1~7n. CUKftE;'IT AND CAPITAL PUtlLIC WUCATIOH Upr;;NiIITURES BY SOURCE AND LEV:':I. OF iWlICATION, 196/;-70 (Thousg.nds current Cr$) y MEC '!'rans. toll • Federal }~C Trans. State ll Direct Ex~nl to State Municigalities ~icigalit!es~ Sudan!!' 1 Gurrent t:; ,1'i6 4Lh :n5 523 Petrl-tARY CapH'll 11:"1 1126 35 513 Currer:t ES!; 18, Df 59 SRCONDA!{Y Capital IS 19 176 7 ~u.rre~t. I:; 3,367 HIGHER Capital "!} 548 ~ Current 7,i)Hl 1,321 (;55 1,184 PRIMARY Capital 139 1,270 95 132 Curr!!'llt, ,SO/:: 31,11 1,296 131 SECONDARY C"pita1 !)1 39 679 15 Current 2h 7,063 HIGHER Capital 1,150 1- Current 8,h24 1,Gb ?A7 1,755 PRD'J\RY Capital 645 1,521 32 195 115 Current 1)04 614 635 195 SECONDARY Cg.pita1 175 6R 264 22 60 Current 1.039 12,4113 HIGlrlR Capital 3~ 2,026 L 2,1)6 %9 5,065 Current 16,f19~ PRIY_;RY CApital il21 1,551 39 660 Current 1,(11[, 964 1,208 660 SECONDARY C,qpita1 207 107 303 56 Current 2,t.36 19,547 Fr:JHER Capital 70 3,182 Currer.t 21 ,202 2,280 1,647 8,328 PP.TI'J.RY C1'lpitlll 1,7)7 1,713 183 1,279 Current l,}ilE, 1,458 890 963 S?:C'0~I!)ARY C"pital 32L 160 il8h 104 Current .3,26'( 28,610 :-:I'lHE:R Capital 600 4,848 CUI'J"pnt 30,925 2,466 1,400 6,701 l'i'.I!>'v'.RY Cani tal 1,8n 1,118 156 1,135 Current lL,20E 1,710 618 763 Sr~CQ~mA~Y CApital 1,599 lR9 1,051 107 Current 6 ,?O~; 37,hol, HIGHER Capital 500 5,990 'J Currel"t 38,L07 3,017 7,826 :'RTI'.ARY Caoital 3,395 1,,82 1,318 Current 17,850 2,561 758 877 SECONDARY C"nita1 9CO 285 896 138 Current 8,930 51 91 ,7 H!%'E!t Capi'\.lIl 750 8,l,S7 , rnc::'urles state quota of Eduaation S'!lary TAX and actual Partioipation Fund expenditures on eduoation. r~t~1s or state capital and current expenditures do not equal tote1 state expenditures due to the L!'.clusion in the l"