IFC Launches Framework for Private Sector Participation in Alleviating Hunger and Poverty in Brazil - A bridge between private companies and the 1,000 poorest municipalities
In Washington:
Adriana Gomez
Phone: (202) 458 5204
Email: agomez@ifc.org
Washington, D.C./Sao Paulo, Brazil, December 18, 2003.- The International
Finance Corporation, the private sector arm of the World Bank Group, launched a
framework that will allow private sector companies in Brazil to assist the
country€™s 1,000 poorest municipalities. Financed by IFC and launched jointly
with Brazil€™s Ethos Institute and the nongovernmental organization Polis,
this effort supports President Lula da Silva€™s Fome Zero (Zero Hunger)
program.
The framework includes a database and a web site (www.fomezero.org.br) with
information about the social and economic needs in 1,000 municipalities in
Brazil, including local initiatives already in operation. The database also
lists social organizations that are potential partners of private companies
interested in supporting and financing specific local initiatives.
This framework has the potential to benefit more than 4 million families, or 19
million people. The Fome Zero Program is aimed at assisting 9.9 million
Brazilian families, or 46.5 million people, who lived on less than $1 per day
in 2001.
As part of this program, a general guide, Securing Food and Nutritional Needs:
Contribution of Private Companies to the Implementation of Local Initiatives,
has been published in Brazil. It provides practical steps to companies on how
to participate in this project.
Peter Woicke, head of IFC and managing director of the World Bank Group,
announced the initiative during a visit to Brazil in February 2002, observing
that the plan provides a mechanism to strengthen the practice of corporate
social responsibility in the country.
Bernard Pasquier, the Brazil-based director of IFC€™s Latin America and
Caribbean department, noted, €œPrivate companies need to be aware that
sustainability is a pragmatic and strategic course of action, and not an
ideological exercise.€ He described this new framework as €œa virtual
matchmaker€ between the poorest municipalities in Brazil and the private
companies willing to help. Pasquier acknowledged that Brazilian companies are
leaders in Latin America in terms of social responsibility and added, €œI am
optimistic about the response and engagement not only of private companies, but
also of NGOs, in this effort.€
Paulo Itacarambi, executive director of the Ethos Institute, noted, €œThis
initiative will encourage private sector participation by offering useful tools
and organized data on the municipalities, their needs, and the opportunities
for action.€
Brazil is IFC€™s largest partner, not only in the region but worldwide. In
fiscal year 2003, Brazil was the largest recipient of IFC funds for a second
consecutive year, with funding amounting to $888.4 million.
Wolfgang Bertelsmeier, IFC€™s country manager for Brazil, said, €œThis
initiative shows the potential of public-private partnerships, and is
consistent with IFC€™s strategy in Brazil to support the country€™s long-term
actions for socially sustainable growth and poverty reduction.€
IFC granted $300,000 to the Ethos and Polis institutes, to identify the
greatest needs in poor municipalities as well as develop the database and call
center, where companies can clarify any questions or submit proposals. The call
center number in Sao Paulo is (11) 3214 1013.
The mission of IFC is to promote sustainable private sector investment in
developing countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes capital
in the international financial markets, helps clients improve social and
environmental sustainability, and provides technical assistance and advice to
governments and businesses. From its founding in 1956 through FY03, IFC has
committed more than $37 billion of its own funds and arranged $22 billion in
syndications for 2,990 companies in 140 developing countries. IFC's worldwide
committed portfolio as of FY02 was $16.7 billion for its own account and $6.6
billion held for participants in loan syndications.
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