The project titled “Major Development Projects in the Amazon: lessons learned and guidelines” was developed jointly by the Center for Sustainability Studies (GVces) of FGV’s São Paulo School of Business Administration (EAESP) and the World Bank’s International Finance Corporation (IFC) . The project establishes guidelines to improve public policies and corporate practices in Amazon areas that receive major development projects, and is available for public consultation until February 12.

The Amazon region is historically described as a land of endless natural riches, and has lately been targeted by substantial investments in mining, major power plant projects and strategic logistics corridors. However, the development framework is still quite vulnerable, with 98% of the region’s municipalities below the country’s average Social Progress Index (IPS). In addition, the ten Brazilian cities with the worst Human Development Indexes (IDH) are also concentrated in the Northern region of the country. Per capita income is also 26% lower than the national average and only 36% of households have basic sanitation. The rural Amazon region is the main stage of violent land conflicts in Brazil.

Within this scenario, the Major Development Projects in the Amazon initiative is based on two baseline assumptions. The first is that major infrastructure and mining projects are invariably planned, implemented and assessed based on expectations created within the industry and according to nationwide macroeconomic targets, with little or no relation to actual social demands generated locally and regionally. The second assumption is the lack of mechanisms to consolidate lessons learned in the past and avoid repeated mistakes. Deprived of best practice standards that provide minimum predictability and proper risk management, entrepreneurs and investors are also exposed to adverse reputation, operational, financial and legal adversities.

Please visit the project’s website, which is in Portuguese, to learn more about the initiative and contribute to studies on this subject.