Public Services and Fiscal Management Reform to Benefit 10 Million People in Paraná State

Dec 06, 2012

About 10 million inhabitants in the state of Paraná will benefit from a US$350 million project approved by the World Bank Board of Directors today. The SWAp for Paraná Multi-sector Development Project, will support a multi-sector reform to improve the state’s fiscal management and will promote the modernization its public services.

“The current fiscal balance situation, resulting from our ongoing fiscal adjustment, enabled the State to employ this form of credit from the World Bank, " said Roberto Richa, Governor of the Paraná state."Our partnership with the World Bank will accelerate the modernization of public services, with more investment in health and education, offering higher quality services and, making the state even more competitive in attracting new businesses."

Located in the south of Brazil, Paraná is the fifth largest economy in the country, representing 5.9 percent of Brazil’s Gross Domestic Product. Its social indicators show a higher level of development than the national average, but major disparities exist amongst regions of the state. In its Central Region, employment and income lag far behind the rest of the state. The Metropolitan area of the capital, Curitiba, is also marked by high pockets of poverty and low access to services.

“This partnership will allow a more comprehensive reform in a number of areas, through a multi-sector approach, leading to more equal and environmentally sustainable opportunities for the Paraná citizens,” says Deborah L. Wetzel, World Bank Director for Brazil. “The main goal is to support the administration in implementing a results-based management for the State.”

The program will achieve its goal through the following actions:

  • Analyzing the tax revenue process.
  • Introducing results-driven public management.
  • Modernizing the Environmental Licensing System.
  • Strengthening of Disaster Risk Management systems, building capacity to prevent and answer to both natural and man-made events.
  • Developing policies to increase education enrollment and retention.
  • Expanding Emergency Care Service.
  • Upgrading the child and maternal healthcare network.

This loan from the International Bank for Reconstruction and Development (IBRD) to the State Paraná is guaranteed by the Federative Republic of Brazil and has a total term of 15 years, including a five year grace period.

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