Inter-American Foundation Panel Pres

from the XXIII International 

of the Latin American Studies As

Washin

September 
Cover photos: portraits, Rebecca Janes; detail of original painting by Bulu, Mark Caicedo.
Economic Development in 

Latin American Communitie

of African Descent

Presentations from the XXIII International Congres

of the Latin American Studies Association 

Washington, DC, September 6–8, 2001

Inter-American Foundation
This is a publication of the Inter-American Foundation (IAF). The opinions reproduced h

are not necessarily those of the IAF. Certain material in this document is copyrighted an

may only be reproduced with permission of the copyright holder.
1 Introduction

3 Economic Development versus Social Exclusion: 

The Cost of Development in Brazil

Jeanette Sutherland, World Bank 

17 Cashing In on Afro-Latin Communities: 

Strategies for Promoting Grassroots Initiatives

Judith Morrison, Inter-American Foundation

29 The Mundo Afro Project

Milam Fitts, Chicago International Development Corporation

39 Portrait of Afro-Brazilian Craftswomen

Dacia Cristina Teles Costa, Criola

45 Panelists’ Biographies

47 Inter-American Foundation

Table of Cont
Printed in 2002
Introdu

region’s poor. Little information is available on the factors that contribute to the

poverty. In fact, only in the last few years have academics and practitioners doc

mented the existence of the people who may live in areas called quilombos, pa

ques, terras dos pretos or garifuna lands according to their country of residence.

Because these communities have been invisible to outsiders, their self-help ini

tives face additional challenges. As the contributors to this publication can att

the available research often explores the cultural and political aspects of black 

munities, but tells us very little about their economic engagement. 

The XXIII International Congress of the Latin American Studies Associatio

held in Washington, DC, September 6–8, 2001, presented an opportunity for t

IAF to raise awareness of the issues surrounding development with respect to t

groups by sponsoring “Economic Development in Afro-Latin American

Communities: Opportunities and Challenges,” one of the first panels on this sub

The panelists’ papers collected in this document represent pioneering steps tow

understanding how African descendent communities can improve their econo

condition. Jeannette Sutherland’s overview of the Afro-Brazilian condition is fo

lowed by specific case studies of development projects in Brazil and Colombia

two Latin American countries with the most significant black populations and 

the best statistical information on them. Of those papers presenting case studi

the donor’s point of view is reflected in “The Mundo Afro Project,” by Milam 

of the Chicago International Development Corporation, and in my article abo

three IAF grantees, Projecto Vida de Negra, Sociedade Afrosergipana de Estudo

Cidadania and Criola. Dacia Costa’s “Portrait of Afro-Brazilian Craftswomen” i

written from her perspective as Criola’s coordinator. 

The authors believe that the lessons learned as described in our papers are

applicable to the condition of African descendants elsewhere in the region. We

hope this publication will lead to more dialogue on how African descent comm

ties can overcome historical biases, maximize their development potential and 

ticipate fully in economic and political life. 

Judith Morrison, Panel Chair

Inter-American Foundation Representative for Brazil and Colombia 
Economic Development verses Social Exclusion: The Cost of Development in B

A mong the principal reasons intractable poverty and underdevelopment 

sist and are gaining ground in Brazil, are the institutional as well as inf

exclusionary practices routinely perpetrated in all domains against non

white communities within its society. Much of the current concern with develo

ment is confined to raising the average levels of income in underdeveloped coun

Accordingly, economic development is said to occur whenever there is an increase 

per capita income and when this growth is sustained over a long period of time. Th

approach to the problem of underdevelopment generally ignores two important 

siderations. First, in most underdeveloped countries the distribution of income

among the population is very unequal and often an increase in per capita incom

only indicates these inequalities have become worse. Second, social, cultural, poli

ethnic, religious, psychological and other noneconomic variables influence the ec

nomic behavior of individuals and groups in every society to an extent that cannot 

captured in conventional economic indicators. These considerations therefore, canno

continue to be omitted from the overall factors that condition, or influence, pattern

development or underdevelopment. For example, we know social organization an

structure are important determinants of social mobility, and more recently the et

cultural realm has been recognized as another potent domain where questions of

social mobility are determined. We also know the distribution of political power

well as the nature of political organizations, can determine the extent to which d

ent individuals and groups are able to participate in decisions affecting the whole so

A long-term view of comprehensive development for Brazil must now corr

the two basic deficiencies mentioned above. In addition to a sustained increas

per capita incomes and equitable patterns of income distribution, this requires

national policies that address the ethnocultural peculiarities of the various gro

that compose society. In this regard, central planners would be called upon to

become attentive to the manner in which such peculiarities complement or co

flict with national socioeconomic development plans. 

factors of production as on calling forth and enlisting for development purposes, resources and

abilities that are hidden, scattered or badly utilized.

Albert O. Hirschman

The challenge of inclusion is the key development challenge of our time.

James Wolfensohn, World Bank
4 Economic Development in Latin American Communities of African Descent

strate that, although Brazils process of economic development may include so

integration of disparate elements, the process generates a “core,” predominant

European origin, and a “periphery,” predominantly black. Is Brazil pursuing ec

nomic development at the expense of blacks? In attempting to answer this 

tion, an assessment of Brazil’s sociopolitical structure and its process of econom

development follows. The processes dictating the exclusion of Brazil’s black po

tion are viewed along classical divisions of societies in the economic, political 

sociocultural spheres. As in Michel-Rolph Trouillot’s model presented in his 19

University of Chicago paper, “Social Exclusion in the Caribbean,” these three

dimensions are used as heuristic devices in reviewing the reality of social exclu

while attempting to identify intermediary yet cumulative processes. Trouillot’s

model of social exclusion as a process that is both cumulative and multidimen

al will be used as a conceptual framework in assessing Brazil’s trajectory as one

premised on the exclusion of the majority by the core in its society. Two key i

will be to determine to what extent development policies in Brazil engender o

exacerbate divisions and inequalities, and whether social relations based on rac

ethnicity are compatible with, and probably functional to, capitalist developme

The intent is to seek a framework that would capture the inter-relationshi

between the material and nonmaterial aspects of deprivation; provide a better

understanding of the way they interact with the processes of economic growth

and relate them to the concepts of participation and social identity. The ultim

objective is to contribute to the design of acceptable policy interventions.

The following section will provide some data on inequities among racial

groups in Brazil. The third section will present an analysis of Brazil’s economic

political and sociocultural spheres as they interact to create a process of social

exclusion in which Afro-Brazilians find themselves on the periphery of Brazil’s

sociopolitical economy. The final section concludes with some recommendati

for policy makers and members of civil society who are concerned with the defi

cies in current policies and development goals.
unequal pattern of income distribution. Data show an increasing degree of ine

in income distribution of economically active persons over 10 years of age earn

some form of income. Between 1960 and 1980, the top 5 percent and 10 perce

the population increased their share of income by a full 10 percentage points. 

is no developed or successfully developing country in which the top 10 percen

the population appropriates half the total income while the bottom half takes 

than 15 percent.2 In 1999, Brazil was second only to Sierra Leone in terms of

inequity in income distribution,3 and its concentration has increased over time

These economic inequities cannot be adequately assessed without taking into

account Brazil’s race relations. 

Income level

Income disparities are found among racial groups in each of Brazil’s five reg

Data show the North and Northeast, where Afro-Brazilians predominate, have t

highest inequality rates along with the lowest income and economic activity lev

in the country. Figures for the average family income by region indicate the reg

with a majority of Afro-Brazilians have a much higher incidence of poverty. 

Studies by Brazilian sociologist, Nelson do Valle Silva, report significant diff

ences in economic attainment between whites and non-whites even after contr

for variables relevant to the process of income attainment.4 Not only do whites 

higher returns from schooling than blacks at all levels of completed schooling, b

1 Social, economic and political indicators show impressive progress compared to the Brazil o

teryear. While its democratic process still lacks a firm degree of consolidation, many more of 

zens have come to enjoy broader freedom to participate in the public process. With a gross d

tic product (GDP) of US$860 billion (1999) and a per capita income of US$5,300, Brazil is cla

as a medium-income country, accounts for more than 50 percent of South America’s GDP an

the ninth largest economy in the world. The stability of the new real currency has encourage

sive foreign investment and domestic entrepreneurs. The industrial sector is expanding its ca

and is restructuring to ensure competitiveness in an increasingly globalized economy. With r

to the United Nation’s Human Development Index, Brazil’s human development is very close 

those of the Southeast Asian Countries and is surpassed only by the developed countries. The 

dation for such an improved index level is its achievements in terms of longer life expectanc

lower mortality rates and higher literacy rates.

2 Pedro Malan and Regis Bonelli, “The Success of Growth Policies in Brazil,” Towards a New Devel

Strategy for Latin America (Washington, D.C.: Inter-American Development Bank, 1992), 54.

3 World Bank, World Development Report, 1999–2000.

4 Nelson do Valle Silva, “A Research Note on the Cost of Not Being White in Brazil,” Studies i

Comparative International Development 35:2 (Summer 2000) 18.

Economic Development versus Social Exclusion: The Cost of Development in B
Silva’s studies show they also have much greater marginal returns from experienc

than blacks. According to Silva, these “rates of return are only equalized after 52.

years of labor market experience, that is, after the whole working life cycle would 

well past.” Again, according to Silva, 18 percent of income differences can be at

uted to labor market discrimination. This effect accounts for about one-fourth 

disadvantaged group’s income. 

Brazil’s census data also show significant differences among race or color g

within regions. In the more affluent states of the Southeast, Rio de Janeiro and 

6 Economic Development in Latin American Communities of African Descent

Table 2. Unemployment Rates by Sex and Race, 1996

Total Men Women White B

Brazil 6.9 5.7 8.8 6.6 

Urban North 7.7 6 10.2 6.8 

Northeast 6.3 5.2 7.8 5.7 

Southeast 7.7 6.2 9.8 7.4 

South 5.4 4.5 6.6 5.1 

Central-West 7.9 6.2 10.5 7.6 

Source: PNAD, 1996, compiled by Adidas do Nascimento and Elisa Larkin Nascimento. 

Percentage of population 10 years or older, with or without income.

* This includes pretos and pardos.

5 Official Brazilian census data use two color categories for African descendants: preto [black] f

dark-skinned and pardo [mulatto and mestizo] for others. This distinction has proved so arbit

and subjective as to be useless. It is now accepted convention to identify the black populatio

the sum of preto and pardo categories, referred to as negro [black], afro-brasileiro [Afro-Brazilia

afro-descendente [people of African descent]. 

10 to 20 m.w. 1.5 0.3 0.

20 or more m.w. 0.3 0.1 0.

Total 100% 100% 100%

Source: IBGE, PNAD, 1988, compiled by Nelson do Valley Silvia/IUPPERJ. 

The minimum wage is aproximately $150 per month.
Paulo, the incidence of miserable poverty is two to three times higher among

blacks than among whites. Thirty-three percent more blacks than whites subsi

miserable poverty in the Northeast, while in the Amazon region and in the Ce

West the difference is more than 60 percent. 

Education

Although Brazilian investment in education has increased over the last sever

years in terms of both real expenditures and the percentage of government spending 

cated to education, equity is still an issue. There are large differences in both access t

mary education and quality of primary education as measured by expenditures 

pupil. These inequities are concentrated in rural areas and municipal schools and 

across regions, with expenditures per pupil in municipal schools in the Northeast 

than one-third the expenditures elsewhere in Brazil. Inequities also exist between

school systems, with expenditures in municipal schools often much lower than 

expenditures in state primary schools. These inequities are compounded by the 

that students from lower-income homes are more likely to attend municipal

schools than are students from higher-income homes.6

In addition, federal government subsidies to tertiary education consume m

than half the federal education budget. A 1986 World Bank study on primary 

cation in Brazil found horizontal inequity, where students with similar family

incomes received different subsidies depending on whether they enrolled in p

or private tertiary institutions. The study also found vertical inequity where st

dents from low-income families received relatively few educational resources 

ing their years in school and were unlikely to gain access to public higher e

tion. In an attempt to provide primary education for all, the government ad

a redistribution plan for the federal share of education salary tax revenue. How

the only equity issue addressed by this redistribution was regional differences. 

substantial difference in educational opportunity and educational resources betw

income groups, between state and municipal schools, and between urban and rur

schools, persists and remains largely unaddressed by current public policies.7

6 World Bank, Brazil, Finance of Primary Education, 1986.

7 Ibid. 

Economic Development versus Social Exclusion: The Cost of Development in B
Illiteracy rates are highest in the Northeast. Disparities in educational attainm

throughout Brazil are more significant between blacks and whites than between m

and women. In all regions, except the Northeast, whites are above the national av

age for years of schooling, whereas blacks are consistently considerably lower. Jam

and Levers’ description of South Africa’s education system can be applied to th

Brazilian context: “the schooling system, nevertheless, struggles to enroll all el

pupils, fails to retain the majority of them to secondary level and offers them 

quality of schooling which varies from excellent for a minority to abysmal for 

majority. The expansion of tertiary educational involvement by [blacks] has m

their enrollment in the less technical directions since most schools for black p

fail to qualify them in mathematics and science. The technical and commercia

elite remain predominantly white as a result.”8

8 Economic Development in Latin American Communities of African Descent

8 Wilmont James and Jeffery Lever, “The Second Republic: Race, Inequality and Democracy in 

Africa,” Beyond Racism (Atlanta: The Southern Education Foundation, 2000), 50.

Table 5. Adult Years of Schooling by Gender and Color, 1996

Years of Schooling Men Women 

White Preto Pardo White Preta P

No school/<1yr 16.2 24.0 23.4 11.2 25.5 

1 to 3 years 17.0 23.8 25.8 15.7 21.4 

4 to 7 years 36.6 33.9 32.0 35.5 32.3 

8 to 10 years 15.6 11.2 10.5 15.3 11.5 

11 to 14 years 14.4 6.1 7.1 16.4 8.2 

15 or more years 6.2 0.9 1.2 5.9 1.1 

Total 100% 100% 100% 100% 100% 

Source: PNAD,1996, compiled by Nelson do Valle Silva/IUPERJ. Percentage of persons 

20 years or older.
9 The World Bank, Brazil, The New Challenge of Adult Health (1990), 61.

ter facilities, the availability of the services is uneven, and there are insufficien

basic services in those areas where there is greatest need. 

Economic Development versus Social Exclusion: The Cost of Development in Br

Table 6. Life Expectancy at Birth by Race

1940/50 1970/80 

Whites 47.5 66.1 

Non-Whites 40.0 59.4 

Source: PNAD, 1990, compiled by Singer, 1995; Bento, 1998.

Table 7. Life Expectancy at Birth Race, Income and Education,1996

Income Education 

Lowest Levels Highest Levels 1-4 Years 4 Years/M

Whites 59.5 70.4 66.2 72.3 

Non-Whites 55.8 63.7 62.2 66.6 

Source: PNAD, 1990, compiled by Singer, 1995; Bento, 1998.

Table 8. Mortality Rate by Color, 1996 

Infant Mortality Child Mortalit

White Black White Blac

Brazil 37.3 62.3 45.7 76.

Northeast 68 96.3 82.8 10.

Southeast 25.1 43.1 3 0.9 52.

South 28.3 38.9 34.8 47.

Central-West 27.8 42.0 31.1 51.

Source: PNAD, 1996, compiled by Abdias do Nascimento and Elisa Larkin Nascimento.

Mortality for children under five is estimated from 1993; all rates are per 1,000 births.
10 Economic Development in Latin American Communities of African Descent

impact of social exclusion in Brazil: (1) the conceptualization of social exclusio

a multidimensional and cumulative process; and (2) the historical specificities 

Brazil as a foundation for understanding current processes within the country. 

Social exclusion as a multidimensional and cumulative process

In addition to the general definition of social exclusion as “the process thr

which individuals or groups are wholly or partially excluded from full particip

in the society in which they live,” 11 this paper emphasizes the cumulative and 

tifaceted nature of the social exclusion process. In this sense, social exclusion c

best be described as dynamic forces produced by many different sources.

Accordingly, this paper focuses on the multidimensional and cumulative natur

social exclusion as a process, and tries to identify intermediate dimensions of a

mulation within the generalized process. 

This section of the paper will look at the processes that arose out of Brazil’

transition from a slave-based agrarian economy to a highly industrialized econ

and the resulting impact on the country’s institutions. These processes will be 

uated in terms of three dimensions, representing three overlapping modes of t

transition and corresponding to socioeconomic, sociocultural and sociopolitica

exclusion. The concept of circular causation generally refers to situations chara

ized by the reciprocal influence of factors. Here, cause-effect relationships take 

multiple directions, wherein results from one area influence another. Consequ

circular causation is important in this paper’s approach to social exclusion app

ble to the interactions among and within the three dimensions mentioned abo

Brazil’s historical specificities

Whether one stresses a lack of solidarity, excessive specialization, monopo

access or a combination of these three paradigms in evaluating exclusion (ILO

1996; de Haan and Maxwell 1998), the inevitable conclusion is that modern B

is shaped by the exclusion of the majority of its population. A thorough under

standing of Brazil’s history also leads to the conclusion that this exclusion has 

roots in Brazil’s agrarian economy during, and immediately following, the day

slavery, and later in the corporatist structures of social control established in th

wake of the 1930 Revolution. 

10 Ibid, 87.

11 European Foundation (1995), 4.
marginalization of populations of African descent, especially those living in ru

areas. Upon the abolition of slavery in 1888, the Brazilian government took no

measures to integrate the “freed” slaves into the national economy. Many of th

ex-slaves remained on plantations, or they moved to urban hills and other per

eral areas and formed favelas where their descendants live today. In Brazil, the 

excluded members of the population live in favelas, including those in rural ar

and these communities suffer extreme poverty. Data presented in the previous 

tion showed the vast disparities between blacks and whites. Afro-Brazilian life 

marked by differential access to assets (including capital and property), to mar

(including labor and credit), and to services (including health and education).

Socioeconomic exclusion is also evident in the differential depletion of resourc

(including land and human capital). 

A study conducted by Nelson do Valle Silva on the socioeconomic disparit

between whites and non-whites shows the salience of the cumulative nature of t

intergenerational inequities. He distinguished two phases in individuals’ socioe

nomic life cycles: social mobility and income acquisition. He found that for the 

stratum of social origin, pretos and pardos confront greater difficulties in their p

of upward mobility and are exposed to higher levels of immobility, resulting in 

more modest profile of occupational achievement for these groups that to a lim

extent can be attributed to differences in social origin. For the same occupatio

result, non-whites also experience greater difficulties in transforming their occup

tional achievement into income. He pointed out that almost half the difference

between whites and pretos and pardos is attributable to lower levels of moneta

return for the occupational achievements of non-whites.12 Nelson’s aggregated 

ference may be a bit more modest when other relevant individual characteristics 

the differences in composition component) are considered. However, access to e

tion is another component of an individual’s life cycle that is subject to the sam

type of discrimination impeding the social progress of blacks and condemning t

to markedly inferior living conditions in comparison to those of whites in Brazi

This does not mean, however, that blacks contribute little to the Brazilian 

omy in terms of labor and consumption. The favelas, or poor communities, re

sent a constant supply of cheap labor, especially domestic and other unskilled

forms. Although many black Brazilian males work as unskilled factory labor or 

construction, most are employed in the service sector as street vendors, garbag

12 Nelson do Valle Silva, “Extent and Nature of Racial Inequalities in Brazil,” Beyond Racism, 3

Economic Development versus Social Exclusion: The Cost of Development in Bra
12 Economic Development in Latin American Communities of African Descent

13 Janice E. Perlman, The Myth of Marginality, Urban Poverty and Politics in Rio de Janeiro (Univer

California Press, 1976), 154.

14 Ibid.

ing their dwellings. Between 5 percent to 10 percent build small shops, stores 

bars, on which they are required to pay taxes to the city government. Further, 

improvements in infrastructure—water pipes, sewage lines (when they exist), el

tricity lines, walkways—are the result of investments by residents of the favelas

This brief sketch of the socioeconomic exclusion of Afro-Brazilians, and th

data from the previous section, show how localized mechanisms feed into one

another and create differences in opportunities for marginalized groups. At equ

levels of social origins, Afro-Brazilians have lower levels of social mobility and

occupational achievement than white Brazilians; at equal levels of occupation

obtain different levels of income; at different levels of assets, they face increase

risks; at equal levels of need, they face decreased services from local and nation

governments. Fragmented markets, insecure assets, increased risk, degrading en

ronment and absence of services combine to further increase the momentum 

social exclusion. However, Afro-Brazilians are not marginal to the national eco

my; rather, they are integrated into it on terms detrimental to them. The proc

socioeconomic exclusion works such that on one hand, it requires their partic

tion in the system, and on the other, it guarantees they are unable to participa

fully in that system. 

Sociopolitical (institutional)

This dimension of exclusion focuses on processes that contribute not only 

political exclusion, but also to exclusion from national affairs as shaped by the 

ence, absence or workings of formal institutions. The key element of this dimen

is the degree to which the reach, strength and independence of institutions hav

facilitated or prevented the participation of significant segments of the populat

in national affairs. In the political sphere, the absence of a democratic civil soci

(because of the monarchy, the Vargas dictatorship and the military dictatorship

meant that official channels of discourse were often out of reach for Afro-Brazil

citizens, as well as others. A number of factors, including ignorance of civil righ

lack of education, misinformation regarding the law, and general disenfranchis

ment inherited from the patriarchal and racist colonial tradition, render politi

and activities in the public domain off limits to most Brazilians, but particular
As noted in the previous section, regional disparities in the availability of 

pitals and outpatient facilities are great, with per capita levels two to four time

higher in the more affluent South and Southeast than in the North and North

Even in the well-supplied regions, the availability of services is uneven, with a 

of basic facilities in areas where the quality of health is poorest and health car

needs are the greatest. Even though the Constitution of 1988 establishes unive

access to publicly financed health services as a constitutional right, this access 

yet to be fully implemented.

Education provides a good example of an institutional system that claims 

national but in fact serves only the minority and contributes to the exclusion 

large segments of the population from many forms of participation. 

Sociocultural

The legacy of slavery in Brazil has had serious consequences for the relat

ship between phenotype and position in Brazilian society. After independenc

the promulgated symbol of Brazil was the monarchy, even though the major

the population was Afro-Brazilian, many of them slaves. Upon the abolition 

slavery, blacks comprised the majority of the population, and the ruling elite

designed public policies to “purify the nation’s racial stock.” 16 Between 1890 

1914, more than 1.5 million Europeans arrived in São Paulo, 64 percent with

their travel paid by the state government.17 At the same time, blacks were sti

tized as unqualified and were considered dangerous, the men in particular.18

Until the 1930s, Brazil promoted a white image of the country, which was su

quently replaced by a white celebration of racial mixing and “racial democra

The military dictatorship from 1964 to the early 1980s paid minimal attentio

social problems or race relations for almost 20 years. In addition, the myth o

“racial democracy” (the idea that through mixing all races had become equa

continued to gain ground and was promoted by most Brazilians confronted 

15 Darien J. Davis, Afro-Brazilians: Time for Recognition (Minority Rights Group International, 19

16 Such thinking goes back to colonial times and was supported by Latin American abolitionis

Alonso de Sandoval defended whitening as the solution to the “black stain” in his 1627 work 

mundo de la esclavitud negra en américa (Bogotá: Empresa Nacional, 1956). 

17 George Reid Andrews. Blacks and Whites in São Paulo, Brazil, 1888–1988 (Madison: The Univ

of Wisconsin Press, 1991). 

18 Maria da Cunha Olívia, “1933: um ano em que fizemos contatos,” Revista USP 28, São Paulo

(December/February 1995):142–163.

Economic Development versus Social Exclusion: The Cost of Development in Bra
14 Economic Development in Latin American Communities of African Descent

Today, despite the continued myth of racial harmony, individuals with dark sk

marked African phenotypical characteristics have lower sociocultural value in 

than whites. An Afro-Brazilian summed up what continues to be a reality for t

majority of Brazilian blacks in her reflections, saying, “The life of the blacks is 

only different from that of the whites, they are even kept in a low position by th

whites. The negro is accepted in many fields but in an inferior position. Only ex

tionally can they achieve a position of distinction.” 19

Unfortunately, many Afro-Brazilians buy into this ideology of inferiority 

gating the black race to a lower status, and concerted efforts are often made to

marry an individual with a lighter skin. Some Afro-Brazilians who become s

cessful feel the need to reject their racial origins and often refuse to recognize 

discuss the problem of race or color. This sense of inferiority afflicting AfroBrazilian begins during their school years and continues throughout adulthoo

Degler reports in Neither Black nor White, that the most vicious consequence of

color prejudice in Brazil is that it narrows Afro-Brazilians’ horizons. In the face 

discrimination and feelings of inferiority, many Afro-Brazilians become discou

and simply refuse to compete with whites. Further, Degler notes Afro-Brazilian 

ents, internalizing the sense of inferiority, restrict their children’s ambitions in

order to save them from disillusion or failure. By not extending themselves, ou

fear of rejection or failure, however, Afro-Brazilians reinforce whites’ stereotype 

the unambitious or incompetent black.20

Conclusion

In his 1995 speech at the World Summit for Social Development, Chilea

Ambassador Juan Somavia stated that the quality of a society is “measured by 

its capacity to integrate the excluded,” an ultimate test of values. He also as

ed that social development will depend on the “energy and dynamism of pe

to ask fundamental questions and propose unusual solutions.” The data presen

would seem to indicate there is indeed a racial order in Brazil and that various segm

comprising Brazil’s society are organized around different rules, processes and inst

19 Florestan Fernandes, The Negro in Brazilian Society, trans. Jacqueline D. Skiles et al. (Columbi

University Press: New York, 1969). Original title, A integração do negro na sociedade de classes (S

Paulo, 1965), 166. 

20 Carl N. Degler, Neither Black Nor White: Slavery and Race Relations in Brazil and the United Stat

(Madison: University of Wisconsin Press, 1971), 164–165.
of the social ladder. Governments economic policies thus far lack a fit essentia

social and cultural soundness that would enable the vicious cycle of exclusion 

poverty to be broken. The causes of Brazil’s “miserable poverty” can be linked 

the systemic exclusionary processes entrenched in its institutions and attitude

its citizens. Unfortunately, beneath the “racial democracy” Brazilians tend to pro

lies a black-white dichotomy in which both parts are interdependent yet unequa

Social, economic and political indicators indicate impressive progress com

to the Brazil of yesteryear. Within the last two decades, Brazil has advanced to

democracy at an unprecedented rate. While its democratic process is still lacki

firm degree of consolidation, many more of its citizens have come to enjoy br

freedom to participate in public process, oppose governments and otherwise

express and inform themselves. 

Legacies of the past, challenges of the future

In the 1960s, when Brazil’s military stressed industrialization as a key com

nent of its modernization scheme, Florestan Fernandes argued that for AfroBrazilians to participate in the modernization process, their social conditions w

have to improve drastically. He asserted that blacks were handicapped by the

debasement of slavery, pauperism and isolation through history, and needed m

rial and psychological skills as well as technology, which they lacked.21 Four de

later, has the hierarchical social class system been altered to the benefits of Afr

Brazilians? Is the Brazilian elite pursuing economic development goals and glo

inclusion at the expense of the country’s black citizens? 

The challenge ahead is not only to ask these questions, but also to prop

solutions to the obvious responses. One key question that must be addresse

to what extent growth and equity are complementary and to what extent th

is a trade-off as defined by Hirschman. The definition of equity that is adop

will determine the policies adopted to address inequities in Brazilian society

Because equity issues and social values are interconnected, it will be challen

to arrive at solutions favored by the majority. Nevertheless, greater emphasi

must be placed on policies in Brazil that promote equity. These equity-relate

policies can in turn directly and indirectly help in reducing situations of extre

poverty found in the country. For example, with a reduced gap in income dist

tion fewer individuals will fall below the poverty line. Also, equity-enhancing 

21 Fernandes, A integração do negro na sociedade de classes, 132–134.

Economic Development versus Social Exclusion: The Cost of Development in Bra
• develop a strategy to engage civil society and NGOs in effective dialogue; 

cially with regard to social exclusion of historically marginalized groups,an

strengthen non-governmental organizations and other civil society organi

tions (particularly Afro-Brazilian organizations) to make them strategic an

capable of monitoring and evaluating government’s policies and influence

• invest in educational programs, which would help eradicate social stigmas 

have for too long dictated the outcome of Afro-Brazilians lives. Too often, 

Brazilians are forced to contend with negative and harmful stereotyping in

both school texts and national media. Urgent and concerted attention mu

given to these two key areas, education and the media, in an attempt to re

the impairment of Brazilian social values.

On a final note, Brazil—and the entire Latin American region—must decis

seek to eliminate the vast disparities that exist among its citizens. The practice 

social exclusion, clearly linked to poverty and to poverty-stricken groups withi

Brazil, will soon cease to be an asset to the elite. Thanks to globalization, one 

region’s main assets, its huge pool of cheap, unskilled labor, is fast becoming a 

bility. A skill-biased technology change worldwide may conspire against hopes 

continuing with business as usual. Brazilian policy makers must find a way to

improve the situation of the poor, educate them and train them for a more co

petitive global workplace. If they fail, Brazil, elite included, risks falling further

behind in the global race.

Bibliography will be furnished upon request.

16 Economic Development in Latin American Communities of African Descent
Cashing In on Afro-Latin Communities: Strategies for Promoting Grassroots Initiati

Evolution in Afro-Latin Development Research

Afro-Latin organizations have a strong interest in reducing poverty. The

urgent needs of black communities drive engaged grassroots leaders and v

unteers. In the early 1990s, I became interested in community developm

strategies for African descents living in Latin America. This interest was fostere

a number of supportive colleagues and individuals who encouraged me to app

new contexts my experiences working with economically and culturally margi

ized communities in the United States. I found this a journey filled with clear 

allels and surprising disconnects shaped largely by history and social condition

In 1995, I was able to test several hypotheses in rural Maranhão. This field

introduced me to many of the contradictions inherent in development work w

racially marginalized communities. The following overview contextualizes som

the remarkable shifts in development policy for communities of African descen

over the past five years.

There are African descendent communities?

In 1996, the state government of Maranhão launched a pilot project throu

ITERMA (Institute de Colonizacão e Terras do Maranhão) to grant land title to 

the 400 black communities identified through the Projeto Vida de Negra, a sub

project of a program that had received funding from the Inter-American

Foundation from 1989 to 1995. Local planning exercises conducted with the p

ipation of the communities, civil society organizations and the state demonstr

that, at the time, land title was one of the single most important issues in rura

Brazil (PVN 2000). Title enabled communities to harvest natural resources or a

state agricultural programs and credit services. Maranhão was the first state in B

to grant land title to traditional Afro-Brazilian communities, and in 1996 there 

still a mixed response to both the policy of granting title to the “black lands” a

the idea of loans targeting black people.

Despite the progressive nature of the state government in 1996, many peo

in the region were not aware of the land titling statute and, if they were, they 

not necessarily support it. Much of this lack of support came from an informa

and sensitization gap. Many of the non-supporters were unaware of socioecon
toric exclusion by the state, will give them priority status for agricultural loans 

technical assistance services. I was surprised to hear this policy had been widel

accepted by diverse farmers.

Several anthropologists have dedicated significant research to understandi

and explaining the cultural differences in communities of African descent (Wa

1988; O’Dwyer 1995; Salustiano 1992; Cruz 1991). Civil society organizations,

working with state and national government, have been important actors in th

dissemination of information on these communities. This consciousness-raisin

work is clearly influencing society to keep pace with the innovative policies ad

ed five years earlier. More non-black farmers are more accepting of the definiti

African descendent communities because they are aware of the specific contex

definition set forth by these anthropologists and NGOs. Greater understanding 

what constitutes an African descendent community leaves rural neighbors mo

confident that African descendent community identification will be assigned b

on solid criteria, therefore minimizing concerns that policies will be applied ar

trarily and unfairly.

Rising interest 

Dissemination of policies and a greater understanding of the nature of bla

communities have moved the debate from the definition of a black communit

how conditions can improve. African descendants comprise 29 percent of the 

population of Latin America, but make up more than half of the region’s poor

(Zoninsein 2001). Rising concerns about poverty among African descendants a

stimulating local and national development policies. 

The level of international interest in African descendants in Latin American

communities has risen sharply in the last two years. As African descendent comm

ties have negotiated spaces for direct exchange with donor agencies and multilat

institutions, they have begun to shape the new research agenda, which further co

firms the importance of bettering the conditions of African descendants in the

Americas. Social exclusion has a tremendous macro-economic cost in Latin

America. An analysis of Bolivia, Brazil, Guatemala and Peru suggests that some

economies could expand by as much as 36.7 percent if social exclusion in Afri

descendent and indigenous communities were eradicated (Zoninsein 2001). This 

compelling research provides advocates with powerful statistics to argue for devel

ment assistance to black communities.

18 Economic Development in Latin American Communities of African Descent
racial mixtures and combinations. African descendants often believe it advantag

to down-play their African heritage and have identified their racial classification a

ingly (Nobles 2000).

During her first election as a favela community leader, Benedita da Silva, l

the first Afro-Brazilian woman state lieutenant governor, and then governor, su

marized the dilemma of black activists in her campaign speeches. She said cult

identity and consciousness come from first fulfilling basic survival needs. Her

straightforward analysis poses the question: What good is it to identify as blac

you remain extremely poor and unable to think beyond your daily survival? M

individuals in black organizations want to reduce poverty in African descenden

communities but are challenged by institutional limitations. Brazil has more th

2,000 active African descendent organizations and Colombia has more than 60

fewer than a handful of these have active economic development programs or

strategies. Why?

Dichotomy between cultural and economic development projects 

Understanding the origins of the black movement in Latin America is imp

tant to understanding how to promote economic development in African desc

dent communities today. Because of flexible definitions of race, many black organ

tions have focused on raising individual consciousness. Their activities often invo

cultural preservation (resgate, rescate) or advocacy as ways of making African ident

more visible either within black communities or in the larger society. Both struct

often posit the African descendent organization to protect and defend the blac

community against present or past threats, but fail to build programs and poli

that specifically promote economic development. 

Cultural activities often have a historic context and arise out of traditiona

forms of expression. They are very valuable in establishing community identit

(Kleymeyer 1994), but may not necessarily spur economic development opportu

As for advocacy work, every country in Latin America has an African descendent

organization dedicated to protecting or promoting the human rights of black peo

Rights work has been instrumental in promoting legislative changes. But without

organizations that have specific strategies for socializing these policies and inco

rating community development in their work, most African descendants will fin

their legal victories are hollow. 

Cashing In on Afro-Latin Communities: Strategies for Promoting Grassroots Initiati
20 Economic Development in Latin American Communities of African Descent

ies, to undertake full responsibility for implementing core elements of a progra

without adequate financial support. Donor agencies considering grassroots dev

ment approaches led by African descendent organizations should allow for app

priate financial resources to support contracting current volunteers or hiring a

tional staff. Partnering with local institutions that have specific development

expertise has also proven to be a key element of success as illustrated in the pr

examples below. 

Finally, there is the contradiction of forming a bridge between African de

dants and the very economic structure that excludes them from the marketp

How does a culture or human rights organization engage in activities that m

be in direct opposition to their defense of black identity? As Zoninsein (2001)

observes, employment discrimination plays a major role in labor market segm

tation, explaining why African descendants and indigenous peoples have few

economic development opportunities. It is often tempting for black organizat

to disassociate from traditional economic development solutions that seem in

gruent with cultural affirmation. These organizations struggle with the appropri

ness of placing African descendent communities in positions of vulnerability to 

demands of a market where the low-income black community is subordinate t

rule of the wealthy. African descendent organizations must put out the fires ca

by discrimination while exploring creative economic models that affirm Africa

identity. The struggle between culture and economics makes expanding econo

opportunities the last development frontier for black communities.

Cashing In on Opportunities: Project Illustrations 

Despite these difficulties, several civil society organizations have taken a g

uine interest in promoting economic development in communities of African

descendants. The cases below illustrate how economic development begins with

grassroots processes that include the voices of beneficiaries committed to impro

their quality of life. The cases are surprising because they represent diverse Afri

descendent organizations in Brazil, yet share themes and principles applicable

throughout the region. All three are based in the respective state’s capital but hav

broad geographic reach that includes rural communities. 

The first two cases, from Maranhão and Sergipe in Brazil’s Northeast, one 

most impoverished regions of Latin America (Van Zyl et al. 1995), support the 
Cashing In on Afro-Latin Communities: Strategies for Promoting Grassroots Initiati

Centro Cultura Negra (CCN) and Sociedade Maranhense de Defesa dos Dire

Humanos (SMDDH) were both established in 1979 in Maranhão, located in the 

sition zone between the arid Northeast and the Amazon rain forest. Projecto Vi

Negra (PVN), the black life project, is a collaborative effort that represents the u

of CCN, the black cultural center, and SMDDH, the society for human rights. 

Originally, PVN received funding in 1989 from the Ford Foundation and la

Oxfam International to record geographic, anthropological, historical and cultu

aspects of Maranhão’s black communities. Although the project officially began 

the late 1980s, the PVN staff started work in Frechal as early as 1986 through t

older institutional structure, CCN. In 1986, the project’s sole charge was to pro

documentation for black areas in the state of Maranhão. A multi-cultural organ

tion with a mainly black staff, PVN is connected to the ideals and ideology of

Brazil’s black political movement. Its values, to preserve the culture and the cu

autonomy of black communities, attract trained lawyers, agricultural engineers

anthropologists, historians, photographers, educators and organizers whose ph

phies are congruent with notions of participation. The size of the PVN staff var

considerably depending on funding. Many staff members work on contract or 

unteer their services to the organization. Most black researchers in PVN come

directly from leadership and organizing positions. Non-black members tend to 

academics or volunteers from activist associations with significant experience i

community organizing. The project organizers’ participatory development expe

ence has kept PVN focused on grassroots leadership. PVN has worked with the 

government agricultural extension services to provide additional opportunities 

economic development. It has also managed to incorporate agricultural and ec

nomic development expertise from other units within SMDDH. Channeling th

expertise of diverse volunteers has strengthened PVN programs. 

The desire to integrate community perspectives in leadership, planning and

assessments of projects is central to the mission of PVN. In fact, the CCN, one o

PVN’s original founding organizations, was born of progressive grassroots action

organization’s first successful effort was lobbying the mayor of São Luis to dona

site for a black cultural center and memorial to the victims of slavery. The site 

a fort that had held the slaves widely considered to be ancestors of Maranhão’

black population.
22 Economic Development in Latin American Communities of African Descent

connection is so close that elders in black communities view PVN staff as an

extended network of family members. Ana Amelia of the PVN staff, is viewed 

“daughter” by many Frechal elders because she “respects the community leade

and dedicates herself” to their concerns. Staff members are self-selected and, co

quently, tend to admire the people who live in the communities and their life

Individuals with no affinity for rural black communities would not work with 

for little or no compensation and in harsh conditions. A close network of inte

ed volunteers also ensures that disrespectful individuals are quickly weeded ou

According to several elder leaders, PVN’s intervention strengthened rapidl

declining levels of cooperation within the community. In the late 1980s Frech

was in the process of losing its strong community organization as young peop

fled to the city, became urbanized and began to “forget the ways of the ances

PVN’s introduction of history and cultural training revived their community-

tered values. One of the most important examples of cooperation, which has 

to the creation of community institutions, is the sharing between one area of

Frechal with access to electricity and another area without it. Neighbors acro

the river invite the other part of the community into their homes to watch 

vision and refrigerate perishables. Felipa and Frechal residents take responsib

for projects to a higher level, managing conflict and altering projects to meet c

munity needs. For example, in Felipa residents exhibit an entrepreneurial spiri

boldly troubleshoot production problems. In Frechal, community members are 

pared to fight for their interests, holding their ground and ensuring developm

plans maximize their community’s interest.

Residents in staff roles

As the pressures for more staff have escalated, PVN has drawn from a pool of 

time consultants and volunteers from SMDDH and other progressive organization

meet the additional burdens. These volunteers have strong technical expertise bu

quently know little about Frechal and rely on PVN’s strong ties to the community

As Frechal looks toward resolving present and future concerns, the commun

requires more assistance with grants and economic development. Staff with less 

mation must rely more heavily on community knowledge and gain understandi

through valuable exchanges with residents. I observed meetings in Frechal wh

the discussion revolved around the allocation of UNICEF funds. Agronomists f
Cashing In on Afro-Latin Communities: Strategies for Promoting Grassroots Initiati

Felipa used their black identity to symbolize cultural pride and to launch econ

development programs. 

Felipa

Felipa is a small, simple community with low literacy levels. Fewer than h

the adults can read or write, and many considered literate can read and write l

more than their names. Additionally, the community had no experience with 

ect implementation. Despite these limitations, the community is exemplary w

a “model” agrarian reform settlement because of the residents’ keen awareness 

they had not benefited from previous funding because they were black, and th

fore less likely to receive support in the future if they did not perform well. Be

of Felipa’s isolation, residents are genuinely appreciative of visits by outsiders.

Being isolated, remote and black also means some outsiders think of the comm

ty as backward. When Felipa was given a mechanism to prove its worth to out

through the PVN project, it created internal institutions to take maximum adv

tage of economic development opportunities. 

According to area leaders, the awareness of higher levels of scrutiny was re

nized and identified as early as the first Banco do Brasil PROCERA loan progra

rice, corn and manioc in 1986. The community banded together and decided, u

the direction of Benedito, the first association president, to take the new stateadministered project seriously so this first chance to work with an outside agen

would not be the last. No Felipa resident has ever defaulted or made late paymen

record achieved through peer pressure, and an internal zero-tolerance policy. Fa

of one person to make a timely payment is viewed as a failure for the entire co

nity. According to the first president of Felipa, members know they have to meet

financial responsibilities; there is no alternative. These behavioral norms, an outgrowth of community development programs implemented by PVN, have resulte

benefits for the collective as a whole. 

These positive internal institutions are being noticed by government agen

and neighbors. Proposals are quickly approved because of Felipa’s reputation fo

working so well. Agricultural agents told of an old house that had collapsed no

fied the state housing agency which acted quickly with a home-building proje

Felipa. Felipa’s neighbors have begun to collaborate on activities that may lead 

more collective production.
24 Economic Development in Latin American Communities of African Descent

tory of the community; current activities include seminars and research on 

community. The information has sustained residents through land conflicts 

a municipal battle for state funding. In a land struggle, the mayor of Itape

Mirim supported Frechal against a wealthy landowner, and the mayor’s office 

helpful in granting the community additional economic development opportu

and land title. PVN’s fortification, cultural pride and internal institutions are im

tant to understanding the mayor’s decision, which was political, according to r

dents of the municipality’s capital. The mayor thought that by joining the lan

struggle he would be able to gain non-black support because Frechal represente

model landless community that took the initiative and followed through on d

opment projects. 

Additionally, by January 1997, the local power company had joined with t

producers’ association to install electricity in all homes. Frechal currently has s

cessful agricultural production and new opportunities for home-based industri

is turning the former landowner’s house into a conference center and tourism 

for individuals and organizations interested in Afro-Brazilian culture. For Frech

residents and outsiders, being black is a source of pride.

SACI in Sergipe

Sergipe, where Sociedade Afrosergipana de Estudos e Cidadania (SACI) is lo

is one of most destitute states in Brazil’s poverty-stricken Northeast. Aracajú, its 

tal, is one of the most marginalized cities in the region, despite several oil and

cement plants. Less than a decade ago, Aracajú used tax incentives to lure indu

to the region, but now industrialists are threatening to leave because of the uns

work force. Nonetheless, Aracajú has a civil society community for which SACI 

reference point. As an NGO leader SACI has strong relationships with producer 

ciations, environmental associations and social service groups with diverse mem

ship and programs. They consult SACI on project design and implementation,

fundraising and network building. SACI’s position has enabled it to make inroa

with business leaders. In 2000, SACI sponsored the first meeting on social inves

ment in Aracajú; it has worked with the Vale do Rio Doce Corporation on comm

ty projects. SACI also has a long, successful track record working with municipa

ernments in municipalities with very different political orientations. 
Cashing In on Afro-Latin Communities: Strategies for Promoting Grassroots Initiati

three income-generating projects that would benefit 540 individuals and their 

ilies through ecological brick production, artisan crafts production and an eco

cal broom factory. 

Massuca will develop an ecological factory which will produce bricks for a 

internal market. Most bricks available on the market are produced using nonsu

tainable processes. By refining the traditional brick-making process, low-incom

residents will produce a superior value-added product. Located on a narrow po

of land donated to community residents (originally squatters), Lazareto will ha

an artisan craft production facility and a community center. A local company’

employee association will work with the organization. Parque dos Faróis will a

a “kit,” including materials and machinery, and build a small structure where 

youth, using shredded plastic bottles, will produce durable and ecologically-co

scious brooms. This will be the first broom factory in the Northeast and in an 

Brazilian community. 

A planning activity will integrate the three projects and make specific reco

mendations. Thirty-two trained monitors and evaluators will report, evaluate a

improve project design. Association leaders and managers learn best business 

practices for the activities to become successful. Participation in sessions will b

open to all association members available to attend the full training course. A 

portion of the project resources will be dedicated to marketing and advertising 

to increase profitability. 

SACI has successfully linked with the private sector and the municipal gov

ment but, given the extreme poverty of the region, it will need further gran

support to assure success. The organization appears ready to take the leap to 

more complex economic development, and the communities appear prepared 

increase production. Massuca has a successful manioc flour operation, whic

enables low-income residents to transfer these skills to ecological brick produc

Parque dos Farois will work with several recycling projects enabling low-incom

residents to run their own business. By mobilizing private sector resources, SAC

can lower the costs of the three projects and negotiate creative mechanisms fo

reaching the market. 
26 Economic Development in Latin American Communities of African Descent

brought on board to work with the artisans to develop more specific support s

es. For the past six months, Criola has provided training for 50 artisan benefic

working in traditional Afro-Brazilian crafts and religious objects. The project’s 

artisans have expressed interest in making products more marketable and avai

Criola will work with a consultant in craft production, financial management 

marketing to pass on these important skills.

Through Criola, the artisans have been able to access important resources fr

SEBRAE-RJ, a business training institution. Criola will also link with local credit 

tutions to improve production. With minor adjustments to techniques and prod

lines, Criola anticipates artisans will be able to earn a living wage. To reach new 

consumers, additional support will be provided for product transport. Currently

artisans find their sales are highly sporadic, and they have insufficient informa

to anticipate specific growth sectors in their markets. A product-by-product an

will enable individual artisans to tailor their products to current and future cu

tomer preferences.

The artisan beneficiaries sell their products at local fairs that often attract 

large number of customers but also have high registration fees. To decrease the 

ticipation cost and increase the impact of activities, artisans will strengthen th

association and develop formal links for greater collaboration. Criola will prov

resources for legal services, enabling the association to obtain legal status. The 

ciation will also receive support in organizational development. By making the

association more sustainable, artisans will have a greater guarantee that their qu

of life will improve. 

Market studies indicate a demand for Afro-Brazilian products, but low-inco

women have been unable to reach consumers due to discrimination by interm

aries. Many artisans have relayed stories of severe discrimination that often led 

exclusion from the region’s crafts fairs.

Afro-Brazilian arts and crafts have proved highly desirable in local and int

tional tourist markets. In Rio, several crafts fairs attract a substantial number o

international visitors. Despite the vibrant artisan tradition of Rio, currently th

are few places to purchase Afro-Brazilian crafts. Many cities in Brazil have revit

ized tourism by capitalizing on these crafts, most notably Salvador, Bahia. In a

tion to overcoming the stigma associated with Afro-Brazilian artisans, Criola w

provide greater opportunities for artisans to sell their products at a fair price. C
Cashing In on Afro-Latin Communities: Strategies for Promoting Grassroots Initiati

result of cultural development advocacy. Staff listened to community needs a

worked with community members to create economic development programs.

In the case of PVN, the advocacy work was primarily research-driven in th

tial stages and then expanded to include community development that led to 

nomic development. SACI and Criola, both organizations advocating for speci

causes (SACI for racial tolerance and Criola for health promotion), began to ex

their visions of development through interaction with their beneficiaries. Key 

success in all of these models were effective NGO staffs and strong beneficiary 

ticipation in project design, planning and implementation. Beneficiaries were 

to jolt the NGOs beyond their comfort zone—of advocacy and cultural develop

ment—to explore economic development. This was a grassroots approach beca

the planning and direction for the projects came from the community. It mad

NGO leaders evaluate their reason for being in the black movement in the first

place: improving the quality of life of African descendants. 

The three organizations described here have all been able to develop strong 

nership with the state or municipal government, and, in the case of SACI and Criola

private sector. Interestingly, the lack of private sector partnerships in the case of PV

probably has more to do with the timing of the project than any other factor. PV

the oldest economic development project highlighted in this paper, was conceiv

during a time when partnerships were often viewed with skepticism because out

thought that an NGO would be corrupted by a private sector partner. Now more 

common, such partnerships offer additional sources of financial and human resou

This is apparent in the case of SACI, where the private sector is providing direct 

services to the lowest-income community, and in the case of Criola, where the NG

has been able to harness high quality market research to support the project. Mun

and state government provided similar support to PVN through agricultural ex

sion services to rural communities and crucial land titling legislation and assis

One of the main factors in the success of these projects is critical financial cou

part support enabling experts to intervene at the appropriate time. African des

dent organizations have proven highly effective at promoting values, but they o

need resources from outside institutions or individuals to make the projects succes

Over the past five years, the literature on economic development in Africa

descendent communities has grown considerably. We have moved beyond the 

tion of whether there are African descendent communities in the Americas to
28 Economic Development in Latin American Communities of African Descent
The Mundo Afo Pr

One of the best kept secrets of the last few centuries is that very large Af

populations, exist throughout Latin America as well as the Caribbean.

According to industry data, these total approximately 150 million peo

roughly one-third of the total population of the region. Brazil has the second 

Afro population worldwide, approximately 70 million people, exceeded only b

Nigeria with a population of 115 million. Colombia has the second largest Afr

ulation in Latin America, with approximately 10 million people.2 Significant A

populations reside in Venezuela, Ecuador, Peru, Guyana, Panama, Costa Rica,

Nicaragua, Honduras, Mexico, the Dominican Republic and Cuba. Smaller com

ties of Afro populations live in Argentina, Uruguay and Paraguay. 

For a variety of reasons, including a complex system of color designation, in

tional government neglect and denial, and a lack of accountability as to how t

communities are treated, most Latin American countries have undercounted th

Afro populations. Large numbers of blacks are thereby rendered invisible and s

and economically underserved. One characteristic common to almost all Afro-

communities is that they suffer extreme poverty. In most cases, blacks are amo

lowest income groups in their countries, and they consistently suffer from inst

tionalized social, political and economic discrimination. Although national and 

national development organizations have made considerable efforts to foster len

as a strategy to alleviate poverty and unemployment in the region, there are ver

organized efforts to improve conditions in Afro communities. 

The Mundo Afro Project (MAP) was created in 1998 by the Chicago

International Development Corporation (CIDC) to provide economic developm

assistance specifically targeting Afro communities in Central and South Ameri

CIDC is a private international economic development consulting group. Befo

creation of MAP, few efforts by international development agencies addressed 

economic development of Afro communities in Latin America, although devel

ment agencies have been actively involved in the region for decades. In fact, so

the most successful development projects worldwide are found in Latin America, 

ularly in the field of micro-enterprise. 

1 “The Denial of Black Rights in Latin America,” Colombia Human Rights Committee newslet

(Summer 1995).

2 Charles Whitaker, “Blacks in Brazil: The Myth and the Reality,” Ebony, February 1991. The a

cites figures from Brazilian Institute of Geography and Statistics.
30 Economic Development in Latin American Communities of African Descent

3 Comunidades Negras y derechos Humanos en Colombia, Proceso de Comunidades Negras, mime

Buenaventura, 1996.

4

“The Denial of Black Rights in Colombia.”

Large concentrations of Afro-Colombians live along the Pacific coast of

Colombia in an area extending from the Panama border to the north and Ecua

to the south. Significant Afro populations also live along the Atlantic coast in

Cartegena, Barranquilla and Santa Marta in an area that extends from Panama 

the west and Venezuela to the east. Approximately 90 percent of the inhabitan

the Pacific coast, 60 percent of the inhabitants of the Atlantic coast, 60 percen

the southern department of Valle and the northern department of Cauca, and 

percent of Uraba live in Afro communities.3 Afro populations also exist in mos

major cities throughout the country. The following are demographics of the Af

population of Colombia:4

• The Afro population in Colombia numbers approximately 10 million.

• Afro-Colombians register the highest incidence of unsatisfied basic needs r

tive to all public services and social conditions created by the state for the 

efit of its citizens.

• In Afro-Colombian municipalities, 86 percent of basic needs go unsatisfied

white municipalities, 45 percent of needs go unmet. 

• Ninety-eight percent of black communities lack basic public services (inclu

drinking water, sewers, electricity), while in white communities 94 percent 

basic public services are provided.

• The health care system covers 40 percent of the nation’s white population

only 10 percent of the black municipalities. Some 3 percent of the black w

ers receive social security benefits compared to 28 percent of workers in w

communities.

• Afro-Colombian communities face nonexistent or weak coverage in nation

programs such as occupational training, educational improvement, entrep

neurial development and work opportunities.

• Illiteracy in black communities is 45 percent compared to 14 percent in w

communities.
The Mundo Afro Proj

Colombia’s Afro population was considered an ideal size to implement the MA

concept on a demonstration basis. Colombia’s Afro population is experiencing 

growing awareness of its racial identity and a need for change in the majority 

ty. The Afro community is also developing a network of progressive NGOs. If M

were successful in Colombia, the goal was to expand the project to other coun

in Latin America.

MAP Objectives in Colombia 

MAP is an effort to focus economic development assistance directly towar

communities in Latin America where large concentrations of Afro populations 

Access to credit and technical assistance are essential resources that enable com

nities to develop economically. MAP’s goal is to provide credit and technical a

tance to support micro-enterprise and small business activities in Afro commu

as a strategy to alleviate poverty and unemployment and to build community

assets. MAP utilizes a range of credit methodologies to promote economic dev

ment: loans to individual entrepreneurs, loans to women, group lending or co

nations of these methodologies that enable communities to build financial ass

The premise is that as communities expand their financial base, they will be a

use it as collateral to finance further development. 

MAP is based on the underlying principle that Afro communities can be e

nomically viable communities if they have access to credit and investment op

tunities, and that these resources should be provided on a nonsubsidized, mar

rate basis. MAP assumes that long-term economic development will not be

achieved solely through philanthropy from international donors. Long-term d

opment will require the participation of the commercial financial sector and a 

mitment of private resources within the country together with international su

port. MAP intends to demonstrate to the commercial financial institutions wit

Latin communities that businesses in Afro communities owned and managed 

Afro-Latinos are viable according to standard business criteria; that economic a

and initiatives exist in Afro communities; and that Afro communities present 

market opportunities for the formal sector. MAP aims to demonstrate that an e

tive way for the formal financial sector to tap into these opportunities is to wo
MAP-Colombia was undertaken on a demonstration basis through an allia

between a U.S. development bank and a private foundation based in Cali, whi

development institutions, share a common mission and management principl

Drawing on their background in applying private sector principles to social de

ment work and from their experience as catalysts in the implementation of inn

tive programs that generate economic and social opportunities for marginalize

communities, MAP incorporates the following elements: loan funds to support 

existing credit programs of the participating NGOs and operating grants for th

NGOs to implement the project.

Each participating NGO has existing credit programs. Historically, resource

used to fund NGO credit programs have been provided by international organ

tions and government programs in the form of grants. MAP, however, attempt

introduce market principles and discipline as its core development strategy, be

MAP believes the formal financial sector will only be interested in developmen

opportunities in the Afro community and partnerships with NGOs that operat

standard market principles.Therefore, resources provided as capital for credit pro

grams must be repaid and are structured so that interest and principal are amort

over the term of the loan. MAP, however, provides grants to support operating a

administrative overhead during the demonstration phase as NGOs move towar

operational sustainability. The goal is that through technical assistance and cro

training the NGOs will develop operating efficiencies enabling them to achiev

operational sustainability. 

Technical assistance toward institutional strengthening 

Technical assistance is a critical element of MAP and is provided through a

series of technical workshops and quarterly on-site visits by the project mana

ment directed at improving the efficiency of the NGO staff. Examples of areas 

ered in the training include strategic planning, governance, portfolio managem

financial management, information systems, product development and fund

ing strategy. 

Cross-training among NGO staff and board members

Cross-training is a process whereby NGOs teach and learn from each other

experience. During its assessment of micro-credit programs in Colombia, the p

32 Economic Development in Latin American Communities of African Descent
The Mundo Afro Proj

serving Afro communities. The purpose of the forum is to facilitate a dialogue

between the formal financial sector and Afro community in order to achieve t

following goals:

• to provide the formal sector exposure to business opportunities in Afro co

munities and to the viability of Afro-owned businesses;

• to promote an understanding of the culture of Afro communities and to b

understand the issues facing Afro entrepreneurs;

• to build confidence within the formal sector that Afro entrepreneurs can o

and manage economically viable businesses under market principles; 

• to provide community-based NGOs technical assistance in operating syste

and credit procedures practiced by the formal sector; 

• to encourage the formal sector to expand its financial resources to Afro co

munities by demonstrating the success of MAP. 

Participating NGOs

The project management identified four NGOs that were currently operati

micro-credit programs. The four are located on Colombia’s Pacific and Atlantic

coasts where the largest concentrations of Afro-Colombians live. Each NGO ag

to accept MAP’s goals and objectives and to achieve a set of specific, jointly de

oped annual objectives. The four NGOs are Fundación Para el Desarrollo

Económico del Litoral Pacifico (FUNDELPA), Asociación General para Asesorar

Pequeñas Empresas (AGAPE), Cooperativa Multiactiva Ser Mujeres de Tumaco

(CSMT) and Grupo de Integración Rural (GIR).

The NGOs’ existing credit programs, though limited, represented a cross sect

the credit products available to Afro communities. In order to expand the project

beyond the initial communities, each NGO agreed to assist the project managem

identifying other NGOs with the potential to achieve MAP’s goals. The four origi

NGOs would form the nucleus of a national NGO network capable of providin

credit and technical assistance resources to Afro-Colombian communities. The f

lowing selection criteria were adopted:
34 Economic Development in Latin American Communities of African Descent

• an interest in networking with the formal financial sector. 

FUNDELPA 

FUNDELPA is a nonprofit, nongovernmental organization dedicated to the 

nomic and social development of small family enterprises in Buenaventura, th

largest port on Colombia’s Pacific coast. It offers access to credit, training, grou

purchasing and technical assistance to its clients, owners of small-scale busines

who work in production, commerce and other services. FUNDELPA provides cr

through the solidarity group methodology (involving three to 10 entrepreneurs 

collectively guarantee repayment) and also direct loans to individual entrepreneu

AGAPE 

Based on the Atlantic coast in Barranquilla, AGAPE is a private nonprofit o

ization whose mission is to promote micro-enterprise by providing access to cr

and basic business training. AGAPE works with the lowest income sector in

Barranquilla, utilizing a credit methodology of both group and individual loan

requiring its clients to establish savings accounts in commercial banks. Typical 

eficiaries of AGAPE’s credit program are women market vendors who sell veget

or fish from tiny stalls, street vendors, carpenters, seamstresses and tailors, who 

row working capital on a weekly basis.

CSMT 

CSMT is a women’s cooperative founded in Tumaco, the second largest po

Colombia’s Pacific coast and a predominantly Afro-Colombian community. CS

mission is to provide its members and their families with savings and credit se

for health, housing, education and business support in order to improve the q

of their lives. 

GIR 

GIR is an NGO serving grassroots farmers in the community of La Balsa in 

region of North Cauca and South Valle. It was established for the purpose of re

ing migration and the disintegration of black families by educating communit

the value of their land as a productive asset and to preserve their cultural tradi
The Mundo Afro Proj

strategic planning for organizational growth and sustainability;

• an expanded array of loan products that can accommodate “graduates”

whose need for in loan size and loan terms may be different from typical

microentrepreneurs;

• relations with the formal financial sector as an alternative source of fundin

and also as a source of staff training for both NGOs and formal sector;

• permanent facilities to house organizational activities.

MAP Accomplishments

During the 18 months of its operation, MAP Colombia disbursed US$1.5

million in loan capital to four NGOs that financed a total of 930 individual an

group loans. MAP also provided US$165,000 in the form of grants to four NGO

for operating expenses. The NGOs provided technical assistance to more than

1,200 micro-enterprises. MAP-Colombia was able to strengthen the institution

capacity of the NGOs. The NGOs instituted credit policies consistent with MAP

objectives and improved staff technical skills in accounting, financial management and information systems.

Key to the success of MAP was the consensus among the NGOs on the goa

objectives and design of the project. Initially, the groups were reluctant to acce

the MAP’s market rate credit terms, because they were not accustomed to repay

ing capital and interest on loan funds supporting their credit programs.

Consensus involved reaching an agreement with each of the four NGO boards

and their management that MAP’s goals were consistent with their objectives

and the national goals for the country, and that MAP satisfied the particular

interests of their respective communities. Each NGO was required to develop

and submit a strategic plan of operation. Separate legal agreements were drafte

and signed by the participating NGOs before the MAP was officially launched

and funds were disbursed.

An integral element of MAP was the development of Afro-Latino professio

als to work in the daily management of MAP and also as subcontractors provid

ing necessary support to the NGOs in accounting and basic business skills.

Identifying qualified Afro-Latino professionals was challenging because the pool i
36 Economic Development in Latin American Communities of African Descent

commit new equity capital. As a consequence, the Colombian government natio

ized the local partner and froze its assets, including funds designated for MAP. T

occurred during MAP’s second year. The U.S. foundation that funded MAP was

unwilling to commit additional funds to the project after the MAP fund was fr

Under the circumstances, MAP discontinued its credit operation in 2000.

The Colombian political situation became increasingly unstable througho

the project period and continues to be unstable today. Afro communities are p

ularly vulnerable because they have little power to defend themselves against 

bilizing forces. They also have little presence in elected government. Also Afro

Colombians hold few positions in the government bureaucracy and no signific

leadership positions in the military or the local police. They also possess land 

ued by private interest groups that do not hesitate to intimidate the Afro own

In this environment, it is extremely difficult to implement economic developm

initiatives because legitimate economic activity requires stability. Although pro

managers did not encounter problems themselves, staff felt increasingly vulne

Project managers from the U.S. foundation were reluctant to visit program site

Colombia due to security concerns. It became apparent that Colombia was too 

lent and unsafe a place to conduct business as long as the civil strife continued

Lessons learned 

MAP-Colombia served as an important laboratory from which to draw em

cal data and lessons that allowed us to re-evaluate the original project concept 

and methodology. We learned major lessons and plan to incorporate them in 

future projects:

• MAP learned it had to modify its market rate policies and make temporary

adjustments in its interest rates on loan funds. During the first year of the 

project, interest rates in Colombia reached record highs. The country’s ben

mark interest, known as the DTF rate (the financial system’s average rate o

interest on a 90-day certificate of deposit), fluctuated between 23 percent 

40 percent per annum. For loan capital, MAP charged NGOs a floating rat

based on the DTF. During the same period the financial system was experi

ing extraordinary high interest rates, the Colombian government devalued 

peso several times. The combination of these events created a hardship on
The Mundo Afro Proj

strengthen, their underlying institutional weaknesses

• Designing a technical assistance program for an institution must be based 

thorough assessment of the institution and be customized to address its sp

needs, such as skills of the program staff, characteristics of the clients and

strengths of the existing program. 

• Participating NGOs should share common goals and experiences with grou

that are members of a network addressing the economic development nee

Afro communities.

• The search for future MAP participants must be on going. The NGO candi

should be evaluated in the context of its capacity to contribute toward ach

ing MAP’s objectives and of the potential impact of MAP resources on its t

population. The geographic area in which an NGO operates must be conn

via existing infrastructure to other parts of the country. The MAP, whose li

ed resources have to be allocated strategically, cannot tackle the problems 

isolated communities requiring investment in infrastructure to improve ba

conditions. 

• MAP’s ultimate objective is to develop linkages between micro-credit organ

tions and the financial sector by demonstrating results and experiences thr

cross-training and the forum. To achieve this goal, MAP needs to target com

nities where financial intermediaries (i.e., commercial banks, cooperatives, 

ings institutions, and federal and regional development projects) have a pre

ence, although they may not currently serve MAP target populations. MAP 

not achieve its goals in communities where financial institutions do not ex

because these communities require greater resources than MAP has availabl

MAP’s future 

CIDC has been engaged by the Center for African and African American Stu

at the University of Texas at Austin (UT) to develop economic development init

tives within Latin America. CIDC and UT are collaborating on designing and im

menting economic development programs in Nicaragua and Panama, working w

NGOs based on the MAP concept.
38 Economic Development in Latin American Communities of African Descent
Portrait of Afro–Brazilian Craftswom

nonetheless took the initiative to become involved in the fight against racism an

obtain and guarantee wider social rights. Through our activities during the nine 

we have been in operation, we have had a direct impact on more than 3,000 wo

adolescents and girls, as well as on institutions serving this population. Criola’s m

sion is to equip them to combat racism, sexism and homophobia and to improv

standard of living of the black population. We work to incorporate black women 

agents for change in the development of a society based on justice, equity and s

darity, wherein their presence and contribution are welcomed as a benefit to hu

ty. Over the years, the organization has received financial and political support f

our projects from various groups and institutions, including the black communi

The goals of Criola’s Art and Media Program are to create opportunities fo

black women and adolescents to enter the labor market as producers; to prom

labor organization; to provide vocational training through courses; and to exp

access to credit. The agency seeks to provide infrastructure to operate and facil

dissemination of goods and services produced by black women in metropolitan 

de Janeiro. Opportunities for vocational training and certification in, for exampl

information technology, industrial cutting and sewing, and Afro-Brazilian printm

ing are available to black women and youth. A proposal is being developed to tr

women and adolescents to work in cultural tourism focused on the role of AfroBrazilians in our country’s heritage.

The Criola craftswomen project, begun in 1992, helps craftswomen develo

joint production practices, procure raw materials at lower prices, and gain entr

markets. From its register of craftswomen in Rio Grande (which includes Rio de

Janeiro, Niterói, São Gonçalo and Baixada Fluminense), Criola organizes meeti

where women can receive training, exchange views and build solidarity. A dire

mail system facilitates rapid exchange of information on points of sale and oth

matters of interest to craftswomen. The objective is to offer technical and fina

support for program participants, so they improve the quality of their product

increase their sales, and, through involvement in the crafts market, are in a be

position to address issues of poverty.
40 Economic Development in Latin American Communities of African Descent

the terms Afro-Brazilian population, Afro-descendent population and blac

population” refer to the group of individuals classified as black and brown.

Human development indices by race and gender

United Nations Development Programme’s Human Development Index (H

of 1999 compares the quality of life based on statistics on access to education, 

expectancy, and employment and income status. It ranks Brazil in 74th place. If 

the white population is taken into account, Brazil rises to 43rd place in the HDI, 

if only the black population is considered, it falls to 108th. 

IBGE statistics, published in 1996, indicate African descendent Brazilians a

age 4.2 years of schooling and white Brazilians 6.2 years. The IBGE figures sho

higher proportion of whites enrolled in school at all levels. The disparity is mo

marked among children under seven; 31.9 percent of whites attend school ver

23.5 percent of black Brazilians. Of Brazilian adolescents between 15 and 17 ye

old, 80.1 percent of whites attend school versus 69.4 percent of blacks, accordi

IBGE’s statistics for 1996–1997. Illiteracy rates are 9 percent for whites and 22 p

cent for African descendants. Ministry of Education figures for 2000 reflect tha

only 2.2 percent of university students are black, while 80 percent are white. If 

number of blacks attending Brazilian universities were proportionate to the pe

age of blacks in the population, the percentage of black university students wo

be 160 percent higher. Similarly, the black and brown population combined re

sents 45.2 percent of the Brazilian population, but the number of black and br

university students combined totals only 15.7 percent. If the number of univer

students were representative of the ethnic composition of Brazil, the number o

blacks with a higher education would be three times higher than it is.

According to preliminary census data for 2000, the Brazilian population is

50.79 percent female. Black women represent 23 percent of the Brazilian popu

tion; 44 percent of the female population; 27 percent of the rural population; 

22 percent of the urban population. Comparative data for white and black wom

show white women are 90 percent literate whereas 83 percent of blacks are. Ea

IBGE data from 1996–1997 show 78 percent of white women have attended sc

as opposed to 76 percent of black women. Despite the differences in education

between the black and white population as a whole, from 1960 to 1980, the n

ber of black women enrolled in a university grew three times faster than the n

ber of white women, increasing by 7.33 percent and 2.53 percent, respectively.
Portrait of Afro-Brazilian Craftswom

family of four, monthly per capita income ranges from R$68.00 to R$230.75. T

factors usually explain low income: level of schooling and types of jobs held.

Although women’s school attendance appears to be improving each year in Br

sometimes even surpassing men’s in terms of secondary education, this has no

an impact on income. In general, blacks and women work in poorly paid jobs

unprotected by labor law. They are underrepresented in the most highly-skille

occupations. Often victims of the “glass ceiling,” they might be present, but th

are rarely visible, and job promotion is difficult. Black women suffering dual d

crimination on the basis of color and gender earn, according to some sources,

between 28 percent and 47 percent of the income of non-black men. Black me

earn even less; their income equals from 47 percent (in Salvador) to 76 percen

Belo Horizonte) of what non-black men earn. In absolute terms, the disparities 

even greater, according to Serguei Soares’ Discriminação de gênero e raça no merc

de trabalho, published in 2000.

Social inequality in Brazil

In Brazil, social and economic inequality takes on a new dimension wh

considered in light of race and gender. Black women might seem invisible b

they constitute the sector most keenly affected by inequities. The corollary t

socioeconomic inequality is skewed income distribution, manifested in great n

bers of poor people throughout Brazil, and poverty statistics correlate closely w

African descent. Inequitable income distribution has its origins in the slave tra

and has been internalized and accepted by Brazilians as the natural order of th

Many, for example, do not question the fact that unequal access to education 

tems leads to unequal levels of school attendance. Acceptance of discriminatio

natural phenomenon leads to obfuscation of the race issue as a factor in all area

social relations as well as the work place. To change this picture, more effectiv

state action is required, primarily through public policy. The parameters of a jus

democratic society must be redefined to include issues relating to racial inequa
face problems marketing their wares. For the most part, they labor in unheal

exploitative conditions. Because of their erratic incomes, many hold other jo

meaning they work a 14-hour day that pays the equivalent of one and one-h

times the legal monthly minimum (R$230.00, or approximately US$93.88). T

is not enough to meet their basic needs. Often the household has no other so

of support. 

The crafts—clothing and accessories (jewelry, belts, bags and headdresses), 

well as ornaments, statues, sculptures, cloth, religious artifacts, toys, domestic

utensils and perfumes—reflect Afro-Brazilian culture. The women produce an

store these items in makeshift workshops in their homes. Products are sold a

improvised locations that lack infrastructure and are often unsafe. In general, 

occur without official permission, as there is no recognition that these women 

craft work. Some craftswomen sell in fairs authorized by the mayor of Rio de

Janeiro. When the Copacabana Craft Fair was officially launched, one craftswo

succeeded in registering and obtaining a permit after a long political and phys

struggle, which resulted in the other exhibitors’ refusal to regard the Afro-Braz

T-shirts that she made as crafts.

While the objects generate income, sales are insufficient to ensure sustaina

ty. Profits are generally 30 percent above estimated costs; in some cases it may b

sible to raise this margin to 50 percent. These craftswomen do not have resource

ensure regular, skilled production, which reduces access to credit. At one of the

group’s meetings, a participant remarked that a craftswoman’s life is “to have t

dinner to ensure lunch.” Her statement illustrated the daily hardship in meeti

minimum needs. Nonetheless, the women who choose to work as craftswome

accept the challenges.

Many craftswomen market through an intermediary who lays hold to pro

sells them at places and for prices unimaginable to the craftswomen, and, afte

while, passes on a minimal percentage of the price charged. The craftswomen 

cast aside in the negotiating process and responsible only for supplying stock. 

process demotes the women from producers to employees of the intermediary

42 Economic Development in Latin American Communities of African Descent
Portrait of Afro-Brazilian Craftswom

1999, this proposal won the first Ashoka/McKinsey Business Plan Prize. McKinsey

continues to advise Criola. The project is currently in the fundraising stage.

Final considerations

Craftswomen must overcome the following challenges:

• Afro-Brazilian craft production does not yet have a market niche. Investm

funds are limited to financing production.

• Limited financial investment, due to lack of access to revolving capital, re

in products that are not competitive.

• Craftswomen sell crafts individually, resulting in an increase in production c

• Both civil society and the state should promote craft activities as a driving 

in social, cultural and economic development rather than merely folklore. 

Crafts must be appreciated for their employment and income-generating

potential. Craftswomen must be offered training in managing their enterprises

This means calculating costs, preparing proper budgets, controlling product qu

ty, acquiring an awareness of marketing and pricing effectively. 

Our intention is for craftswomen to become micro-entrepreneurs. We also

want to promote a true exercise of citizenship through cooperation, solidarity,

leadership, formation of associations, participation in community life, and ind

ual and group self-esteem. The great challenge for these women is to try out n

roles and behavior and appreciate their talents.

Bibliography will be furnished upon request.
Panelists’ Biograp

development policies to benefit Afro-Latin Americans. Her interest is poverty i

and international trade, with special reference to the impact on marginalized

groups and on adopting an interdisciplinary approach to the development pro

Ms. Sutherland has degrees in international relations and regional economic d

opment from universities in the West Indies and the United States.

Judith A. Morrison 

jmorrison@iaf.gov

Judith Morrison joined the Inter-American Foundation in 1998. She is IAF

representative for Brazil and Colombia and works on issues of grassroots econo

development, corporate social investment, and race and poverty. Author of sev

articles on politics and the history of Afro-Latin American communities for

Africana: The Encyclopedia of the African and African American Experience, she has

taught at Universidad de Los Andes and Universidad Nacional de Colombia. A

director of a nonprofit management and training organization, she worked ext

sively with third sector institutions in the United States and Latin America. Sh

also evaluated World Bank projects in Brazil. Ms. Morrison has an M.S. in inco

distribution and poverty alleviation from the Massachusetts Institute of Techn

and a B.A. in political science from Macalester College. Her awards include the

Woodrow Wilson Fellowship in Public Policy and International Affairs and MIT

Carroll Wilson Award for International Research. Her previous presentations in

panels at multilateral institutions, business associations and universities in the

United States, South Africa, Guatemala, Colombia and Brazil.
46 Economic Development in Latin American Communities of African Descent

Chicago Economic Development Corporation; its venture capital subsidiary,

CEDCO Capital Corporation; Salomon Brothers; and Lake Park Rentals Inc., hi

own Chicago-based truck and equipment leasing company. Mr. Fitts has a B.S. 

mathematics from Howard University and an M.B.A. with majors in finance an

marketing from the University of Chicago. 

Dácia Cristina Teles Costa

Criola@alternex.com.br

Dácia Costa coordinates activities at Criola, a Rio-based organization that

assists Afro-Brazilian craftswomen. She graduated as a social worker from the

Universidade Federal do Rio de Janeiro and has worked at the Hospital

Universitário Pedro Ernesto da Universidade Estadual do Rio de Janeiro. Before 

ing Criola, she was a technical assistance agent for social movements focused o

health, human rights and youth. 
Inter-American Foundat

and local governments, directed at improving the quality of life for poor people 

strengthening democratic practices. To contribute to a better understanding of 

development process, the IAF shares its experiences and the lessons it has learn

The Inter-American Foundation is governed by a nine-person board of dir

appointed by the president of the United States and confirmed by the U.S. Senat

members are drawn from the private sector and three from the federal governme

The board is assisted by an advisory council. A president, appointed by the board

serves as the Inter-American Foundation’s chief executive officer, managing a staf

42 employees based in Arlington, Virginia.

Congress appropriates funds annually for the Inter-American Foundation. Th

IAF also has access to the Social Progress Trust Fund administered by the InterAmerican Development Bank and consisting of payments on U.S. government lo

extended under the Alliance for Progress to various Latin American and Caribbe

governments. Since 1972, the IAF has made 4,348 grants for more than $528 m

lion. Together, the IAF and its grantees have created cost-effective models of so

and economic development which have often been replicated by government 

larger donor agencies to better the conditions of hundreds of thousands of poo

families in communities throughout the hemisphere. 

Panel Chair and Publication Coordinator: Judith Mo

Publication Editor: Paula D

Translation Supervisor: Leyda 

Editorial Interns: Vanessa Clemens and Kamala 

Designer: Lauren Grantham, United States Government Printing 
Inter-American Foundation

901 North Stuart Street, 10th floor, Arlington, VA 22203

Tel: (703) 306-4301 Fax: (703) 306-4365 Web site: www.iaf.gov
Inter-American Foundation