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USAID/Brazil 

Operational Plan 

FY 2006 

June 15, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: Well intentioned policies and reforms have sometimes, and 

sometimes not, yielded results in the face of Brazil’s enduring social divide. There have been highly 

positive developments: The Lula administration succeeded in stabilizing the economy -- inflation is now 

under control, investor confidence is at an all-time high, and debt management has improved. The 

Brazilian Congress passed key reforms to the public sector pension system and the tax code, made 

inroads in improving the judicial system, enacted a modern bankruptcy law, and established a publicprivate partnership law to fund infrastructure projects. Draft legislation to promote small business and 

reform political parties and campaign funding is also on track for passage in 2006. President Lula has 

also pursued an ambitious foreign policy agenda focused on collaboration with other developing nations. 

Brazil has moved to revitalize Mercosur as a trading bloc, co-chaired FTAA negotiations with the United 

States, and has taken a major UN peacekeeping role in Haiti. Since mid-2005, however, the government 

has faced a series of corruption scandals, involving the Worker’s Party, the Lower House, and a number 

of private sector companies. Still, the reaction by the media, the public and the government attests to the 

strength of Brazilian democracy and the active role played by civil society. 

On the whole, the Lula government has been less successful in combating crime, poverty and decaying 

infrastructure, despite political will to fight the structural causes of social and economic exclusion. The 

GOB spends approximately 20% of its $600 billion annual budget on social investments and programs, 

the largest being “Bolsa Família,” a program designed to provide assistance and stipends to the poorest 

seven million families in Brazil. The government also launched programs to facilitate “first jobs” for young 

adults through vocational training and employer incentives, and established micro-credit lines. 

Unfortunately, the results of these programs have been uneven and have not resulted in major changes 

to Brazil's daunting social scenario. Although Brazil's health system has achieved impressive results in 

AIDS treatment and immunization rates, it still lacks infrastructure, logistical systems and enough health 

professionals to care for under-served populations. 

 

Despite a slight decrease in the number of rural poor in 2005, over 50 million Brazilians still live on less 

than two dollars a day. Crime and violence are escalating across the country and the level of youth 

engagement in criminal activities is of great concern. The “economic growth” solution to poverty still 

sputters due to high tax burdens and labyrinthine bureaucracy. They also make it difficult for the 

government to collect revenue by encouraging tax dodging and informality, both of which depress 

economic growth and contribute to a sense of lawlessness. 

Continued deforestation and violent land conflicts in the Amazon are also cause for great concern. The 

2005 assassination of the U.S. missionary, Sister Dorothy Stang, is just one example of the violent 

disputes between loggers, ranchers and small landholders taking place in Northern Brazil. In addition, 

the Brazilian environmental agency failed to authorize licenses for certified forest management operations 

in 2005, seriously undermining efforts to improve forestry practices. 

USAID/Brazil is striving to help the GOB and civil society to meet these colossal development challenges 

by concentrating in the geographic areas of the greatest need and on interventions that strengthen local 

capacity. In 2005, many of the Mission’s showcase pilot activities and innovative methodologies were 

replicated by the GOB and other donors. USAID is also working through consortia and public-private 

alliances to leverage additional participation and resources. Key achievements for the reporting period 

include: 

Health: According to the WHO, Brazil has an estimated 100,000 new cases of tuberculosis (TB) each 

year, making this one of the most deadly communicable diseases in the country. When USAID/Brazil 

initiated its five-year tuberculosis (TB) program to expand the Directly Observed Treatment Short-Course 

Strategy (DOTS), only 7% of the Brazilian population had access to health services that provided directly 

observed TB treatment. In contrast, due in large measure to USAID assistance, now more than half of 

health services with TB programs are offering directly observed treatment. This has resulted in increased 

cure rates and less TB transmission. Political commitment to TB control has also grown, while social 

mobilization campaigns have increased public awareness of symptoms and treatment. 

In order to expand DOTS coverage in the metropolitan areas with the greatest number of cases, USAID 
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built effective partnerships with key local NGOs and state health secretariats. USAID partners also 

carried out TB control activities that complemented and enhanced the work of the Brazilian National 

Tuberculosis Program. This model is now being replicated in other urban areas with resources from the 

Global Fund for Aids, Malaria and Tuberculosis. In this manner, sustainable directly observed TB 

treatment will soon be expanded throughout Brazil. 

In HIV/AIDS, USAID is supporting Brazilian NGO prevention projects by strengthening technical and 

project management skills, promoting behavior change, and assisting condom social marketing initiatives. 

Activities are concentrated in the south and southeastern regions of Brazil and target the most vulnerable 

groups at risk of HIV infection. USAID funded $2.4 million in FY 2003 sub-grants to 22 HIV/AIDS NGOs 

working with high risk groups. Grantees also received technical assistance in financial and program 

management, and monitoring and evaluation. The USAID program has been directly responsible for an 

estimated 395,000 vulnerable people being reached with prevention messages and the distribution of 

over 1.2 million condoms. 

The social marketing component mobilized NGOs, the government, and commercial organizations in a 

three-way partnership to ensure that the AIDS prevention needs of vulnerable groups are effectively 

being met in a sustainable manner. While FY 2003-funded activities are showing great results, new 

activities were put on hold as a result of Brazilian Government disagreement with USG grant clauses 

related to prostitution. The Mission has been working with LAC, the Global Health Bureau, and the Office 

of the Global AIDS Coordinator to address this situation, and is optimistic that it will be resolved in early 

calendar year 2006, allowing USAID to continue its successful contributions to the reduction of AIDS 

transmission in Brazil. 

Environment: The environment program has been working on the vitally important issues of frontier 

governance, environmentally sound forest development, and sustainable forest management and 

biodiversity conservation -- all key to ensuring the survival of the Brazilian rainforests. Program partners 

are addressing a wide range of issues affecting resource-use decisions, especially in forest frontier areas, 

and are breaking new ground in promoting environmentally sustainable improvements to the quality of life 

of severely underserved populations, such as forest and river dwellers and small farmers. As a result, 

USAID/Brazil has placed itself in a key position to continue to influence the course of Amazonian 

conservation and development. 

The environmental program made significant inroads in halting deforestation and environmental 

degradation of the Amazonian and Atlantic rainforests during FY 2005. USAID trained nearly 3,000 

people in sound forest management techniques, and facilitated the implementation of best practices in 

fire control and environmental planning by an additional 13,000 people, impacting over 6.3 million 

hectares of forest land. USAID partners also implemented improved management practices for 

biodiversity conservation in an area of some 12.7 million hectares of primary Amazon and Atlantic 

Forests, while 1,920 people were trained in conservation management. 

In line with the Presidential Initiative against Illegal Logging, the GOB has committed to combating 

deforestation, burning and illicit practices in the timber sector. Early 2004-2005 estimates indicate that 

Amazon deforestation has dropped 30% from last year’s near-record high of 27,200 km2 to approximately 

18,900 km2. In addition, the GOB has created a mosaic of protected areas covering a total area of 

37,000 km2 in central Amazon, and a moratorium on deforestation permits was imposed over an 80,000 

km2 area that was under imminent threat by land grabbers along the Cuiabá-Santarém highway. Within 

this region and in an adjacent area, 54,478 km2 in protected areas has been defined and awaits formal 

approval. USAID is also working directly with indigenous populations to assist them in protecting their 

cultures, native lands and natural ecosystems in and around the BR-163 highway area. Finally, through a 

unique public-private alliance between a new Brazilian conservation NGO and the world’s largest 

producer of bleached eucalyptus pulp, Brazil’s highly threatened Atlantic Forest is now gaining ground. 

With USAID support, this GDA project has created 5,300 hectares of new private forest reserves, helping 

to form an ecological corridor of 48,000 hectares of protected forests in the Central Atlantic Forest region 

north of Rio de Janeiro. 
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Despite great achievements, the past year also brought an array of threats to environmental conservation 

in the Brazilian Amazon. Most notably, the federal environment agency, IBAMA, failed to approve 

licenses for natural forest management operations, seriously undermining efforts to improve forestry 

practices while inadvertently providing illegal operations with greater incentives to evade the law. This 

situation also hurt certified companies that have made substantial investments in the long term 

sustainability of their forest holdings, securing independent certification of the social and environmental 

sustainability of their operations. 

Youth Employability and Trafficking in Persons (TIP): In 2005, USAID/Brazil made significant progress 

towards its ultimate goal of developing effective and replicable methodologies for assisting at-risk youth to 

find and succeed at viable jobs in the formal sector jobs. Of the 730 at-risk youth that completed USAID 

training programs in FY 2005, 28% now have permanent jobs, while nearly 60% are working as interns on 

a probationary basis. The 28% mark reflects the fact that the Mission established three-months of 

continuous employment as a benchmark for reporting successful employment. As such, this figure will 

rise significantly in the near future. Also noteworthy, another 450 participants are currently being trained 

to enter the job market in early 2006. 

In FY 2005, the mix of market-driven training alternatives offered to disadvantaged youth was expanded 

and extended to a third program site in northeast Brazil. Now, in addition to information technology (IT) 

and tourism industry services, the USAID-supported program is offering courses in historical site and 

artifact restoration; Afro-Brazilian cosmetology; audio-visual production; electrical services and alternative 

energy technologies; and sales and telemarketing. This diversification has proven beneficial in leveraging 

additional opportunities in the job market and in attracting new private sector partners. 

The level of private sector participation in USAID-funded youth activities has grown notably. In FY 2005, 

56 private sector firms in Salvador and Recife offered internships and jobs to IT-trained youth. They 

include software and hardware companies, newspapers, fast-food chains, supermarkets, retail stores, 

beauty salons, and banks, opening a wide-range of opportunities for young adults with solid computer 

skills. Under the tourism industry component, over 80 hotels, restaurants, and travel agencies provided 

first-employment opportunities to program participants. Moreover, private sector partners contributed 

mentors, newspaper subscriptions and ad space to facilitate job searches, free software licenses, CV 

preparation assistance, and the like. In 2006, USAID and its partners will work to expand this network in 

order to leverage even more private sector cash and in-kind contributions, and to encourage corporate 

policies that facilitate employment and training opportunities for at-risk youth. 

 

USAID also made remarkable progress in combating TIP and sexual exploitation in Brazil. The pilot 

service-methodology developed and tested with USAID support in six Brazilian municipalities has been 

expanded to another 24 cities with GOB and other donor funds. Moreover, the GOB plans to expand this 

service methodology to another 97 key municipalities in 2006, with continued USAID support. Also in FY 

2005, USAID/Brazil received $6 million in funds from the Presidential TIP Initiative to strengthen Brazilian 

capacity to provide emergency health and psycho-social services to victims and to adequately identify, 

prosecute and convict perpetrators. 

TIP-related legislation passed in FY 2005 improved victim services including vocational training, an 

improved prosecutorial environment, and increased public awareness. The stage is now set for USAID 

activities under the Presidential Initiative to significantly reduce TIP criminal activities in FY 2006. Results 

to date have included improved local capacity to address the special needs of TIP and sexual exploitation 

victims; 4,700 government and NGO technicians trained in case notification procedures; the creation of a 

judicial referral system; specialized training in child-victim communications and evidentiary medical 

examinations; the development of psychological support and counseling methodologies; and emergency 

health assistance to victims. 

Energy: USAID/Brazil’s Energy Program promotes: (1) the extension of social and economic opportunities 

to enable underserved populations to benefit from reliable power; (2) the reduction of greenhouse gas 

emissions and the resultant global climate change through public policy reform, renewable energy 

demonstration activities, and campaigns to raise public awareness of energy efficiency; and (3) 
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technology exchanges between the United States and Brazil. The program works in cooperation with 

United States and Brazilian-based NGOs, the private sector, UNDP and the Brazilian Ministry of Mines 

and Energy. 

An impressive 1.5 million Brazilians have gained access to power during the first two years of the 

Government’s “Light for All” program, but there are still key institutional, regulatory, technical and financial 

hurdles standing in the way. The USAID/Brazil Energy Program is helping the Brazilian Government to 

overcome these hurdles in two specific areas. First, the global price of energy is more often than not too 

expensive for poor Brazilians living in remote communities, many of whom are only now gaining access to 

the national power grid. USAID is therefore working to make energy affordable by developing viable 

income generating activities for these communities. During the past year, the Brazilian Ministry of Mines 

and Energy formally committed to the USAID-sponsored Global Village Energy Partnership (GVEP) and 

included income-generation and other GVEP premises in its “Light for All” action plan. Secondly, in cases 

where it is prohibitively expensive to expand the power grid to remote Brazilian communities, USAID is 

carrying out distributed-generation pilot projects that promote affordable renewable energy-based 

solutions, and providing applicable technical training and capacity building to the target communities. 

 

USAID has launched a variety of projects to mitigate climate change and to reduce air pollution through 

clean energy technologies and activities. USAID-developed small to large scale bio-fuel processors are 

converting cattle and goat waste into bio-gas and bio-fertilizer to increase agricultural production and to 

reduce harmful emissions. Expansion of this technology will also contribute to reduced deforestation. 

USAID has also substituted diesel-fired generators with small hydropower plants in rural areas and 

implemented a successful wood-fired stove substitution program to reduce indoor pollution. On the 

energy efficiency side, SO-09 is training high-level professionals from public and private institutions in 

efficient energy usage in public buildings and industrial facilities, and in the provision of public lighting. 

In addition to the GVEP program, the USAID/Brazil Energy Team is achieving important results in support 

of two additional U.S. Presidential Initiatives: (1) Under the International Partnership for a Hydrogen 

Economy, USAID helped develop a Brazilian Hydrogen Road Map, which considers possible pathways 

for future hydrogen production, storage, delivery, and use technologies; safety codes and standards; and 

outreach efforts; and (2) under the Methane to Markets Partnership (M2M), USAID is supporting 

emissions assessments, monitoring, and a social program in partnership with private investors and the 

city of Fortaleza to create a gas-fired power plant run on methane generated from a municipal landfill. 

SME Growth, Trade and Poverty Alleviation: FY 2005 marked the first year of implementation under SO11. Initial program results have been very promising. The small business trade development component 

is successfully demonstrating the enormous opportunities trade-led small business growth and 

employment. In FY 2005, USAID selected four small producer clusters (swimwear, cashew nuts, honey, 

and palm berry fruit), which are now engaged in trade as a result of USAID technical assistance that has 

enhanced product quality, marketing, and access to finance, while identifying distributors and 

representatives. Trade activities have already resulted in over $650 thousand in export contracts and 

approximately 750 new jobs. In the swimwear sector, USAID assistance resulted in a 50% increase in 

exports to the United States by women-owned micro-producers in the poor northeastern city of Salvador. 

 

SO-11 was also able to secure institutional buy-in and cost-sharing from local partners including the 

Brazilian Export Promotion Agency and the Brazilian Small Business Agency. The experience gained 

working with clusters will now be directed towards the development of a “road map” that will help 

thousands of Brazilian small enterprises interested in entering the global economy. USAID’s local 

partners will play a fundamental role in refining and distributing this “road map.” 

 

In the policy arena, USAID-funded research facilitated the preparation of draft legislation to encourage the 

development of small business trade consortia, reversing earlier laws that increased small business costs 

and reduced their export competitiveness. This legislation was incorporated in the omnibus Small 

Business Development Act currently under discussion in the Brazilian Congress. After the road map is 

completed, USAID and its partners will be well positioned to make further contributions to improving the 

small business trade environment. 
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USAID poverty reduction efforts under SO-11 also achieved impressive results, including the 

establishment of 80 seed banks, the training of over 2,500 farmers in sustainable small agriculture 

techniques, and 25,000 hectares dedicated to organic farming. In FY 2005, USAID also helped launch 

the Garden Brazil Program, a Global Development Alliance that is improving basic health and nutrition 

conditions for poor school children. The program, which includes the establishment of school gardens, 

nutritional training to cafeteria workers, and treatment for parasitic infections, directly benefited over 

83,000 children in 350 schools from 13 municipalities. As noteworthy, it generated substantial outside 

interest. In the state of Espirito Santo, federal funding has been allocated to replicate the program at a 

number of particularly needy rural elementary schools. Furthermore, private partners such as General 

Electric and Johnson & Johnson have doubled their funding commitments while new partners have 

entered the program. This success highlights a key aspect of USAID’s role in Brazil - that of developing 

and testing innovative methodologies, and thereafter, facilitating their replication by others. 
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FY 2006 Program 

SO: 512-007 Transmission of Selected Communicable Diseases Reduced in Target Areas 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases Of Major Importance ($2,178,000 CSH). USAID continues to 

promote the successful WHO-recommended TB control strategy in Brazil, by working with municipal and 

state governments in target areas that are responsible for more than 40% of Brazil’s TB burden (nearly 

40,000 cases per year). The program also enhances the corresponding management and quality control 

system to ensure a continuous supply of high quality anti-TB drugs. The Mission aims to complete the 

National TB-Drug Resistance and TB/HIV-AIDS Co-Morbidity Study. Activities include providing TB 

training to healthcare providers at the state and local levels as well as training in data collection and 

information management. Also, activities include operational research, social mobilization, and programs 

for DOTS. Principal implementers: Municipal and State Health Secretariats, the Pan-American Health 

Organization, Management Sciences for Health, Centers for Disease Control, and the Brazilian Family 

Welfare Society. 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission & Impact Of HIV/AIDS (5,345,000 FY 2005 CSH Carryover). Although there have 

been delays in the implementation of the HIV/AIDS activities, USAID anticipates implementing activities 

that provides assistance to support: strengthening vulnerable groups and outreach programs in targeted 

municipal government health departments; HIV surveillance for selected populations; strengthening the 

capacity of new nontraditional partners to implement ABC (Abstinence, Be faithful, and use Condoms) 

activities with AIDS in the workplace programs; and assistance to AIDS orphans and appropriate AIDS 

prevention guidance to vulnerable young adults. Principal implementers: Private Agencies Collaborating 

Together (PACT), state and municipal health secretariats, and non-traditional partners. 

FY 2007 Program 

SO: 512-007 Transmission of Selected Communicable Diseases Reduced in Target Areas 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases of Major Importance ($2,200,000 CSH). USAID will continue to 

support DOTS in Brazil at the municipal and state levels in high-prevalence areas. The program will 

support a management and quality control system to ensure continuous supply of high quality anti-TB 

drugs. Operation's research funding will be used to test and evaluate which methodologies are best for 

implementing the National TB Program and a national TB/HIV-AIDS treatment protocol. Activities at all 

state and municipal sites will include the continuation of TB training for healthcare professionals, data 

collection and information management training, operational research and social mobilization. While the 

principal program beneficiaries will continue to be the São Paulo and Rio de Janeiro Municipal and State 

Health Secretariats, the activities will be expanded to include other Health Secretariats in critical TB 

locations. Principal implementers: Pan-American Health Organization (PAHO), Management Sciences 

for Health, Centers for Disease Control (CDC), and the Brazilian Family Welfare Society. 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact of HIV/AIDS ($3,785,000 CSH). USAID funds will be used to continue 

the support of FY 2005 funded activities. These activities may include: 1) assistance to targeted 

municipal government health departments to strengthening vulnerable group outreach programs; 2) HIV 

surveillance for selected populations; 3) strengthening the capacity of new non-traditional partners to 

implement ABC activities with AIDS in the workplace programs; 4) assistance to AIDS orphans and 

appropriate AIDS prevention guidance to vulnerable young adults. Principal implementers: Private 

Agencies Collaborating Together (PACT), state and municipal health secretariats, and non-traditional 
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partners. 

FY 2006 Program 

SO: 512-008 Natural Ecosystems Sustained 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management of Natural Resources & Biodiversity ($6,027,000 DA). USAID provides 

technical assistance and training to improve the efficiency and increase the adoption of sustainable forest 

management and harvesting practices at the community and industrial levels by applying management 

models appropriate for different locations and conditions. In FY 2006, the area under sound forest 

management in the Amazon is reaching some 1.4 million hectares (Ha), of which 30,000 Ha will be under 

certified community forest management involving a total of six communities. To expand sustainable 

forest management, USAID trains nearly 3,000 forest management professionals, and also some 13,000 

people who are directly involved in the design and implementation of improved management systems. An 

additional 1,425 professionals are receiving training in biodiversity conservation and management. 

The development of markets for environmental goods and services provide tangible economic benefits to 

poor communities. USAID's support of these markets will increase the volume and equitability of 

transactions in sustainably produced timber and non-timber forest products (from $314,000 in 2004 to 

$1.3 million in 2006). Programs will also improve trade relations between rural producers and urban 

consumers and strengthen community based ecotourism networks. 

USAID strengthens the independent monitoring of deforestation by supporting the improvement of tools 

for monitoring landscape change. Critical areas for planned expansion of the timber industry are being 

identified, mapped, and presented to state and federal authorities to facilitate proper forest planning and 

management. Preparation for landscape management includes workshops in participatory environmental 

planning and regional development along major highway corridors in the Amazon. 

Finally, USAID continues to work directly with representative indigenous groups to develop self-managed 

territorial monitoring and protection systems, aimed at securing indigenous territorial integrity in 

compliance with environmental legislation, with a special focus on the Xingú - Kayapó complex of 

indigenous lands (13.6 million hectares of officially protected areas). 

Principal implementers: World Wide Fund for Nature- WWF/Brazil, International Institute of Education of 

Brazil-IEB, the Institute of Environmental Research of Amazonia-IPAM), Conservation International-CI, 

and the Amazon Conservation Team-ACT. 

FY 2007 Program 

SO: 512-008 Natural Ecosystems Sustained 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management Of Natural Resources & Biodiversity ($5,330,000 DA). USAID will 

continue to provide technical assistance and training to increase the adoption of, and widely disseminate 

knowledge and information about, sustainable forest management practices. This will include evaluating 

the potential for multiple use forest management. USAID support to increase the adoption of sustainable 

forest management and harvesting practices at the community and industrial levels in the Amazon will 

cover a total area of nearly two million hectares, of which 41,000 Ha will be under certified community 

forest management. In conjunction with these activities, USAID will fund instruction of 4,000 forest 

management professionals, and also train 2,550 people who will have direct involvement in the design 

and implementation of improved management systems. An additional 1,128 professionals will receive 

training in biodiversity conservation and management. 

USAID will promote activities for land-use planning in forested landscapes which will encourage 

sustainable settlements with secure land tenure, certified production chain processes, and participatory 
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monitoring of landscape change. By the end of FY 2007, USAID partners will have implemented 

participatory regional planning for conservation and sustainable use of natural resources in an area of 

over 372,000 square kilometers in the Amazon, resulting in integrated landscape mosaics that sustain 

environmental and socioeconomic benefits for rural populations. 

Poor communities in the Amazon will gain tangible economic benefits from USAID’s support to the 

development of markets for environmental goods and services, through an increase in the volume and 

equitability of transactions in sustainably produced timber and non-timber forest products (from $1.3 

million in 2006 to $1.4 million in 2007), improved trade relations between rural producers and urban 

consumers, as well as strengthened community based ecotourism networks. 

Principal implementers: World Wide Fund for Nature- WWF/Brazil, International Institute of Education of 

Brazil-IEB, and the Institute of Environmental Research of Amazonia-IPAM. 

FY 2006 Program 

SO: 512-009 Global Climate Change Mitigated Through Renewable Energy and Energy 

Conservation 

Expand & Improve Access To Economic & Social Infrastructure 

Expand & Improve Access To Economic & Social Infrastructure ($580,000 DA; $30,000 FY 2005 

Carryover DA). USAID is helping the Government of Brazil (GOB) to provide an estimated 12 million 

Brazilians, who currently lack access to the national power grid, reliable power sources which provides 

quality-of-life improvements and economic opportunities. The FY 2006 energy program activities include 

the development of distributed generation demonstration projects (mini-grid systems) which extend 

affordable energy to remote communities. Also included are community-based energy management 

models that facilitate the construction and maintenance of mini-power grids. USAID is training 

approximately 50 technicians in system's operation, maintenance and management of mini-power grids. 

These grids hold the potential for extending the benefits of electricity to an estimated 400,000 people, the 

majority of which are living in relative poverty. 

Reduce, Prevent & Mitigate Pollution 

Reduce, Prevent & Mitigate Pollution ($410,000 DA). USAID is helping address the needs of local 

residents in the communities where the energy program is operating by designing and implementing 

income-generating activities that draw upon alternative and renewable energy technologies. Working in 

partnership with the Ministry of Mines and Energy (MME) and the United Nations Development Program 

(UNDP), USAID's energy activities will be implemented in rural and peri-urban areas where five 

community-based income generation projects are being implemented. This activity will directly impact an 

estimated 4,000 people by increasing family income and quality-of-life standards. These activities are 

being carried out in accordance with the USAID Global Village Partnership Action Plan (GVP) for Brazil. 

USAID is expanding an existing program that provides renewable energy vocational training to 

disadvantaged youth in Brazil's poor northeastern region. Youth from families with income levels of less 

than $100 per month are being trained as electricians, with a specialty in alternative energy technologies. 

It is anticipated that after training, 50% of these trainees will secure jobs in the private sector. Principal 

implementers: Social Development and Renewable Energy Institute - IDER, UNDP, and local and U.Sbased NGO sub-recipients. 

FY 2007 Program 

SO: 512-009 Global Climate Change Mitigated Through Renewable Energy and Energy 

Conservation 

Expand & Improve Access To Economic & Social Infrastructure 

Expand & Improve Access to Economic & Social Infrastructure ($500,000 DA). USAID plans to continue 
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developing and implementing pilot distributed generation models and income-generating activities based 

on alternative energy technologies, thereby consolidating GVP principles within the 

Brazilian national program, Light for All. The MME is committed to replicating these rural electrification 

solutions and passing regulatory reforms to make them official national policy. 

USAID plans to design and install mini-distribution grids and alternative generation systems in partnership 

with local utilities. As the MME adopts these models under the Light for All program, the benefits are 

expected to reach an additional two million people. In order to maintain a pool of capable local 

technicians, an additional 50 people will be trained in mini-power grid operation, maintenance and 

management. USAID expects that income-generating activities, based on alternative energy, will directly 

benefit more than 50,000 people in 2007, and hundreds of thousand more in conjunction with the Light for 

All program. The renewable energy-based vocational training initiative will train disadvantaged youth and 

assist them in securing viable employment in three Brazilian states. Principal implementers: IDER and 

local and U.S-based NGO sub-recipients. 

Reduce, Prevent & Mitigate Pollution 

Reduce, Prevent & Mitigate Pollution ($400,000 DA). USAID will continue to provide technical assistance 

and training to improve renewable energy policies and the corresponding regulatory environment. 

Partnerships formed with Eletrobras, Petrobras, national programs and electrical utility companies are 

expected to lead to broader replication and use of energy efficiency concepts and methods, helping the 

GOB to achieve its goal of saving 130 (Tera Watt hour) by 2015, which is equivalent to the output of a 

new power plant. USAID will continue to support the Brazilian Renewable Energy NGO Network 

(RENOVE) and the Ministry of Mines and Energy in its efforts to modify regulations so that the necessary 

changes and improvements in policy in the areas of fossil fuels substitution, energy efficiency standards 

and advanced use of alternative sources of energy (wind, solar, biofuels and small hydro) are put in 

place. USAID will also continue to host roundtables and workshops that promote cooperation between 

U.S. and Brazilian firms working in the areas of renewable and alternative energy, and energy efficiency. 

Principal implementers: IDER, ICF Consulting, and local and United States-based NGO sub-recipients. 

Additionally, in 2007 the Mission will be studying the possibility of merging energy-related Global Climate 

Change (GCC) activities and efforts to develop environmentally-sustainable economic opportunities for 

poor rural and forest dwellers into the Environment program. This would result in closer alignment of 

resources and maximization of impact. 

FY 2006 Program 

SO: 512-010 Economic Alternatives and TIP Services Extended to Vulnerable Groups 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce Through Vocational/Technical Education ($891,000 CSH). USAID will 

expand the number of at-risk youth trained from 2,026 to 4,356 with emphasis on information technology 

(IT) and the tourism industry. The geographic target area for tourism-based training is expanding from two 

sites to ten in northeastern, central and southwestern Brazil. Training modules include food, travel and 

tourism services as well as hotel management. Private sector partners are providing youth with mentors, 

training, internships and viable employment opportunities. Training is continuing in the areas of audiovisual production, electrical services with an emphasis on renewable energy technologies, masonry, 

construction, historical artifacts, and site restoration. USAID also supports the GOB in the development of 

policies and programs designed to offer licit income-generating alternatives to highly vulnerable groups, 

including victims of TIP and sexual exploitation, youth convicted of minor crimes, and persons with 

disabilities. Principal Implementers: American Institutes for Research and Counterpart International. 

Reduce Trafficking In Persons 
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Reduce Trafficking In Persons: USAID assists the GOB in the development and deployment of TIP victim 

assistance programs and methodologies. This program is carried out in all 27 Brazilian states, with 

priority given to capital cities and 70 target municipalities that have a highest concentration of TIP cases. 

USAID and its partners are training 27 state-level core teams that are responsible for providing shelter, 

health care, psychological, and social services to TIP victims. Additionally, USAID is working with the 

GOB to integrate a TIP case-notification system at the federal, state, and municipal level that will allow 

the government to collect reliable data on cases of trafficking, sexual exploitation, and violence against 

minors. Lessons learned over the past three years under the USAID anti-trafficking program is being 

documented and used as a basis for implementation of activities under the Presidential TIP Initiative 

during the 2006-2008 period. Principal implementers: Partners of the Americas and the International 

Labor Organization. 

FY 2007 Program 

SO: 512-010 Economic Alternatives and TIP Services Extended to Vulnerable Groups 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce Through Vocational/Technical Education: In order to allow for closer 

alignment of resources and strategic focus, in 2007 USAID plans to transfer workforce training activities 

to the Small and Micro Enterprise Trade-led Growth program. 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons: USAID would complement ongoing activities under the FY2005 

Presidential TIP Initiative by adding a component to offer licit income-generating alternatives for victims of 

TIP and sexual exploitation. USAID would identify high demand jobs and design related training and 

internship programs that meet the special needs of TIP victims and have the potential to generate 

appropriate levels of licit income. Additionally, USAID plans to provide technical assistance to the GOB in 

order to expand health, social and psychological support methodologies beyond the 97 municipalities 

targeted in FY 2006. The GOB plans to disseminate this methodology to 930 municipalities by the end of 

calendar year 2008. Principal Implementers: This will be determined through a competitive process. 

FY 2006 Program 

SO: 512-011 Increased Economic Opportunities for Trade Led Small and Medium Enterprise 

Growth and Poverty Reduction 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($190,000 DA). USAID is working with the 

Brazilian Confederation of Industries, the Brazilian Small Business Agency (SEBRAE), and the Brazilian 

Export Promotion Agency to prioritize and address the most critical constraints to increased small 

business participation and competitiveness in international trade. USAID supports policy reform allowing 

small industries to develop trade-focused consortia, thereby lowering their administrative costs and 

increasing competitiveness. USAID works with the GOB and the World Bank to survey further barriers to 

small business development, complementing findings from USAID’s efforts to assist selected small 

enterprises. To create momentum for trade reform, USAID is disseminating survey results at workshops 

in several northeastern states targeting influential decision-makers. Survey results are expected to be 

considered by the Brazilian Congress as it finalizes and approves the draft Small Business Development 

Act which includes a number of trade components. Principal Implementers: Development Alternatives, 

Inc. and the Foreign Investment Advisory Service. 

Increase Trade and Investment 
13

Increase Trade and Investment ($800,000 DA). USAID continues to emphasize the importance of 

increased small enterprise participation in two-way trade as a means to foster more equitable economic 

growth. In FY 2006, USAID provides technical assistance to selected small producer clusters (swimwear, 

cashew nuts, honey, and palm berry fruit) to identify competitive advantages and niche markets, improve 

product quality, and enhance packaging and wholesale representation. USAID is improving access to 

trade finance by small enterprises in partnership with the Bank of Brazil and the Brazilian Bank for Social 

and Economic Development by implementing a pilot small producer trade credit mechanism. The 

experience gained by working with these clusters is resulting in a “road map” that will help thousands of 

Brazilian small enterprises to address the challenges inherent in entering export markets. The road map 

is being disseminated by national small business and export promotion institutions, while efforts to further 

identify and address constraints to more extensive and equitable access to trade opportunities will 

continue. Finally, in preparation for the start-up of a new at-risk workforce training activity for young 

adults in 2007, USAID is conducting a feasibility study and assess the actual potential for employment 

generation in trade-related areas, including accounting, logistics, shipping, finance, trade information 

technology, sales and marketing. Principal Implementer: Development Alternatives, Inc. 

FY 2007 Program 

SO: 512-011 Increased Economic Opportunities for Trade Led Small and Medium Enterprise 

Growth and Poverty Reduction 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment: (100,000 DA). USAID plans to improve the 

enabling environment and strengthen local support capacity so that small enterprises benefit from free 

trade agreements including the FTAA and those derived from the Doha round negotiations. USAID will 

work alongside federal and state governments and the private sector to identify and remove trade barriers 

for small enterprises. As an example, USAID may work to simplify regulations and reduce other 

bureaucratic barriers for small business. 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce through Vocational/Technical Education: ($900,000 DA). Workforce training 

activities previously developed under USAID's Disadvantaged Youth Program will be adapted to this 

strategic objective in 2007, with the objective of ensuring workforce preparedness, primarily for micro and 

small businesses. In order to increase access to formal employment, primarily in the micro and SME 

sectors. USAID, through a competitive selection process, will choose one or more Brazilian NGO partners 

capable of providing high-level, medium to long-term training to vulnerable groups, including youth 

involved in gangs, juvenile offenders convicted of minor crimes, victims of TIP in persons and sexual 

exploitation, and with disabilities. Training will focus on entrepreneurship, information and communication 

technologies, the tourism industry, trade and trade-related services such as accounting, stock 

management, logistics, financing, sales, and marketing. A small-grant component will also be established 

to provide direct support to local organizations doing innovative work in youth training and employment. 

Primary implementing partners will be identified through a competitive process. 

Increase Trade and Investment 

Increase Trade and Investment: ($770,000 DA). USAID will build the capacity of local partners to improve 

and expand trade-related services to small enterprises. USAID plans to develop a program to strengthen 

the Brazilian Network of International Business Centers in partnership with the Brazilian Confederation of 

Industries; provide technical assistance to the Brazilian Export Promotion Agency to review and improve 

the effectiveness of their programs; and partner with the Brazilian Small Business Agency to design and 

initiate a trade capacity building program for local brokers and traders specializing in small producer 

transactions. USAID will work with traditional and non-traditional financial institutions to build their 

capacity to extend trade finance to small business and small business consortia. Principal grantees will 
14

be determined competitively. 
15

Results Framework 

512-007 Transmission of Selected Communicable Diseases Reduced in Target Areas 

Program Title: Communicable Diseases Program 

 IR 7.1: Increased use of HIV/STI prevention and care practices among high-prevalence groups 

 IR 7.2: Increased use of DOTS services 

512-008 Natural Ecosystems Sustained 

Program Title: Environment Program 

 IR 8.1: Sound Forest Management Practices Improved 

 IR 8.2: Markets for Environmental Goods and Services Developed to Provide Tangible Economic 

Benefits for Poor Communities 

 IR 8.3: Integrated landscape mosaics that sustain environmental and socioeconomic benefits 

incorporated into government planning and policies 

512-009 Global Climate Change Mitigated Through Renewable Energy and Energy Conservation 

Program Title: Energy Program 

 IR 9.1: Improved policy and regulatory framework promoting renewable energy and energy efficiency 

 IR 9.2: Increased technology cooperation and transfer between U.S. and Brazilian firms to support clean 

and efficient energy production and use 

 IR 9.3: Market development for renewable energy and energy efficiency 

512-010 Economic Alternatives and TIP Services Extended to Vulnerable Groups 

Program Title: At-Risk Youth and Trafficking in Persons Program 

 IR 10.1: Increased marketable skills training for at-risk youth 

 IR 10.2: Increased access of at-risk youth to formal market employment opportunities 

 IR 10.3: Improved policies and programs to curb trafficking in persons 

512-011 Increased Economic Opportunities for Trade Led Small and Medium Enterprise Growth 

and Poverty Reduction 

Program Title: MSE Growth, Trade, and Poverty Reduction 

 IR 11.1: Micro and small-sized enterprise growth and employment 

 IR 11.2: Promotion of the Free Trade Area of the Americas 

 IR 11.3: Social safety net support 

Discussion: The original title of IR 11.1 "Small and medium-sized enterprise growth and employment" 

was changed to more accurately reflect the beneficiaries being targeted by the SO.