The World Bank has released a new report outlining strategies to promote economic and social development in Brazil's Northeast region. The report, titled "Routes to the Northeast: Productivity, Jobs, and Inclusion," highlights that many of the challenges faced by the Northeast are not unique to the region but are also present across Brazil.
According to the report, increasing skills and mobility among workers is key for regional growth. It suggests expanding education and vocational training programs, especially targeting low-income individuals and those working in informal sectors. The report also recommends improving labor market intermediation services and encouraging partnerships between public and private sectors. These measures aim to help workers find jobs both within their local communities and beyond, potentially leading to greater upward mobility.
The report further addresses infrastructure financing in the Northeast. It notes that while there is potential for reforms to allow more investment, limited fiscal capacity means that increased public spending alone will not be enough to address infrastructure needs. Instead, it calls for efforts to reduce inefficiencies in capital spending by prioritizing investments that improve connectivity, adopting modern systems for managing public investments, and attracting private investment through well-governed public-private partnerships.
"The answers to the Northeast’s challenges are not solely within the control of its own policymakers. Indeed, many of the issues identified for the region are Brazil-wide."