WOCRLD BANK
DEVELOPMENT COMMITTEE
(Joint Ministerial Committee
of the
Boards of Governors of the Bank and the Fund
on the
Transfer of Real Resources to Developing Countries)
ONE HUNDRED AND SIXTH MEETING
WASHINGTON, DC - OCTOBER 14, 2022
DC/S/2022-0047
October 14, 2022
Statement by
H.E. Paulo Guedes
Minister of Finance
Brazil
On behalf of Brazil, Colombia, Dominican Republic, Ecuador, Haiti,
Panama, Philippines, Suriname, and Trinidad and Tobago


Statement by
H.E. Paulo Guedes
Minister of Finance
Brazil
on behalf of Brazil, Colombia, Dominican Republic, Ecuador, Haiti,
Panama, Philippines, Suriname, and Trinidad and Tobago
106th Meeting of the Development Committee
October 14, 2022
Washington, DC
The war in Ukraine, which sparked a terrible humanitarian disaster, exacerbated the challenges for
development across the globe. Brazil has already spoken out clearly against it: in the UN General Assembly
and in the UN Security Council. Meanwhile, cascading effects on a world managing the scars from Covid-
19 raise the challenge for the path of sustainable recovery in many countries. First, a severe global inflation,
effect of the coronavirus pandemic and the further war in Ukraine, as affected supply chain networks failed
to meet rising food and energy demand as economies recovered. Second, an acute crisis in the global food
and energy sectors, which has already manifested in the previous year and was exacerbated by the ongoing
geopolitical conflict. Third, a mammoth crisis in the education sector, with waves of school closures that
have led to huge learning losses. Finally, the impacts of climate change and its extreme weather events that
affect harvests and energy production in many parts of the world, adding to market volatility and
uncertainty.
Decisive, sound economic policy responses and structural reforms are required to deal with the dire
economic and social impacts produced by this ominous global situation. Brazil has been experiencing a
solid economic recovery, mainly due to the fiscal consolidation policies and business enabling environment
reforms that took place in the last few years.
In the early stages of the recovery from the pandemic, the Brazilian economy rebounded strongly, and in
the beginning of 2021, GDP returned to its pre-pandemic level. Government spending to boost the health
system and initiatives to preserve lives and livelihoods were converted to more targeted programs, with
fiscal accounts showing a small surplus in 2021. Brazil also started a monetary policy tightening early in
2021, ahead of most countries, and has come a long way in battling inflation. In 2022, while inflation
entered a downtrend, GDP growth is being revised consistently upward, also by the IMF and the World
Bank. Brazilian GDP growth in 2022 is expected to be around 3%. Furthennore, unemployment records
are on a downward trend, 8.9% in August 2022 vs. 14.9% in August 2020.
These results were achieved through a bold structural refonn agenda that has been advancing steadily since
2019 to enable the business environment in sectors such as infrastructure (sanitation, 5G, cabotage,
electricity, natural gas, transportation), financial markets, startups, and trade liberalization. This agenda,
coupled with the solid fiscal framework, has opened space for private sector investments as the main driver
of Brazil's economic recovery. Indeed, almost USD 200 billion in infrastructure investment commitments
are contracted for the next ten years. Besides, the trade integration agenda is increasing the competitiveness
and productivity of the Brazilian economy. In the last four years, Brazil has concluded fifteen agreements
on trade, promoted a horizontal 20% cut on import tariffs and removed a significant part of non-tariff
barriers. The openness of the Brazilian economy to international trade and its integration into the world
economy have reflected on the ratio of the country's trade surplus in goods and services to GDP: 28.9% in
2018 to 39.2% in 2021.
Development Committee Agenda: The Food and Energy Crisis


Concerning the current global food and energy crisis, it is worth noting that the conflict in Ukraine has
profoundly changed international trade, production, and consumption patterns, thus escalating food
shortages and inflation. In this context, the 2022 Global Report on Food Crises Mid-Year Update predicts
that up to 205.1 million people in 45 of the 53 countries/territories will be experiencing food crisis or worse.
Exacerbating the scenario, since the commencement of the conflict in Ukraine, the number of countries
imposing trade-related policies has drastically increased. The appropriate response to this crisis,
nevertheless, points in another direction. The international community needs to promote further an agenda
of trade liberalization that removes barriers, such as tariffs and quotas, especially in the agriculture sector.
Moreover, additional concrete steps to alleviate the food crisis and build a more sustainable and resilient
global food system for the years ahead are necessary. We need to increase production capacity appropriately
in different regions of the world, sustainably, in accordance with best environmental practices, and without
delay.
Locally, to guarantee the provision of sustainable food production in Brazil, several initiatives have been
launched. The Harvest Plan 2022/23, composed of loans for sustainable production and investments,
prioritizes small and medium size producers. Moreover, we threw a major milestone for Brazilian
agribusiness, the Investment Funds in Agro-industrial Productive Chain, comprising 31 funds that will
enable foreign and local investors to structure loans and investment operations, as an alternative pathway
to financing the food sector. At the same time, Brazil has established the National Policy of Payments for
Environmental Services (PNPSA), which aims to encourage the preservation of ecosystems, water
resources, soil, biodiversity, genetic heritage and associated traditional knowledge, valuing ecosystem
services economically, socially, and culturally.
Considering the energy crisis, diversifying the mix to incorporate a variety of low-carbon resources, both
renewable and non-renewable, is crucial, as it promotes political independence, economic growth, and
environmental protection. In this regard, Brazil can also serve as an example for having one of the world's
most decarbonized and diversified energy sectors. In 2019, Brazil generated 82.3% of its electricity from
renewable sources and 46.2% of its total energy supply from renewable sources, including biomass and
hydropower. Furthennore, the green hydrogen segment in Brazil has started to grow this year with the
installation of the country's first industrial-scale green hydrogen production plant. Brazil operates onshore
wind projects with some of the highest capacity factors in the world. Partly as a result, Brazil has the lowest
potential levelized cost for zero-carbon hydrogen.
Development Committee Agenda: Climate and Development Goals
We emphasize the importance and urgency to address climate challenges, as imminent hinders for our
sustainable development goals. Integrated actions for a low-carb transition will require massive investment
to accelerate the adoption of clean technologies on all economic sectors.
Despite Brazil's leadership in the clean energy matrix, we continue to engage in developing innovative
programs that integrate environmental, social and governance improvements. The National Solid Waste
Plan and the Recycling Credit Certificate, which will improve the regulation on solid waste management
and incentivize recycling and reverse logistics, demonstrate the importance of developing environmental
actions related to the development agenda.
Protecting biodiversity and the responsible use of natural resources is an essential investment in our future.
One third of the Brazilian terrestrial area is protected by law. These areas integrate the National System of
Nature Conservation Units or belong to one of the seven hundred Indigenous Territories, and in a whole,
are larger than Eastern Europe territory. Additionally, one fourth of Brazilian waters are protected, far
exceeding the targets committed to the United Nations Convention on Biological Diversity (Aichi Target
11).
Mainstreaming sustainability ensure that both development premises and environment safeguarding are
mutually supportive. In this regard, Brazil created the National Green Growth Program to combine the
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reduction of carbon emissions, the conservation of forests and the rational use of natural resources with the
generation of green jobs and economic growth, thus improving the living conditions of the Brazilian
population. In parallel, we are embedding the second phase of the Plan for Adaptation to Climate Change
and Low Carbon Emissions in Agriculture 2020-30, which aims to promote resilience to extreme climate
conditions and control greenhouse gas emissions in Brazilian agriculture. Furthermore, ahead of COP26
Brazil has pledged to reduce greenhouse gas emissions by 50% by 2030, compared to 2005 levels. Also,
the goal of achieving carbon neutrality was anticipated from 2060 to 2050.
To support a low-carbon future and achieve sustainable development and global climate goals, we consider
market-based mechanisms as the most effective instruments for enabling a just transition. The mobilization
of the private sector is essential in pursuing innovative ways to shift energy matrixes and to adopt clean
technologies.
Considering these elements and the context of overlapping crises, World Bank should pursue ways to
increase the funding available to tackle current and future global challenges. Additional resources to deal
with climate change and pandemics should be provided, while keeping the emphasis on achieving the
WBG's Twin Goals of ending extreme poverty and boosting shared prosperity.
Development Committee Agenda: Learning Losses
Covid-19 has led to a dramatic increase in learning poverty. Although the globe was already experiencing
an increase in the quality of education, the pandemic has profoundly worsened this crisis. According to the
World Bank Group, students today run the risk of losing 10% of their anticipated future average yearly
salaries in the absence of an immediate policy adjustment. Learning losses result in lower wages as well as
decreased productivity, increased inequality, and a larger chance of social unrest. Thus, the global
community must act swiftly and decisively.
In this context, we fully concur with the outcomes of the World Bank compendium of lessons taken from
the pandemic: (i) keep schools open and lengthen class periods; (ii) evaluate students' learning and provide
teachers with the tools they need to adapt instruction to each student's level; (iii) simplify the curriculum
and concentrate on the fundamentals; (iv) establish a national political commitment for learning recovery
that is driven by reliable learning measurement.
Besides, our Constituency commends the World Bank initiatives in leading the implementation of best
practices for learning recovery, consolidating adequate policies and complementary financing. We would
like to highlight the partnership between Brazil's Ministry of Education and the World Bank in the project
"Recovering Learning Losses from Covid-19 Pandemic in Brazil". The goals of this project are to support
states and municipalities in the most vulnerable North and Northeast regions to recover from dropouts and
strengthen education management in primary and lower secondary schools.
Undoubtedly, the challenges that the globe is now bounding demand compelling and coordinated actions.
We invite the World Bank to continue assisting developing countries through its extensive and leading
approaches, ramping-up expertise diffusion and financing mobilization.
Finally, we would like to call your attention to the case of Haiti, the only FCS and IDA country in our
constituency. In addition to the pandemic, on the last two years, the country had to respond to a devastating
earthquake, a destructive tropical stonn and increased food insecurity. As learning losses, environmental
damage and development losses are at their maximum, we call on the global community, including World
Bank Group, to lead a package of humanitarian, financial and technical assistance for Haiti.
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