THE CASE OF PARAN BRAZIL ZAKI AKEL SOBRINHO
THE CASE OF PARANÁ (BRAZIL) ZAKI AKEL SOBRINHO, RECTOR, UFPR WORKING GROUP LOCAL RESPONSES TO THE GLOBAL CRISIS HIGHER EDUCATION AT A TIME OF CRISIS Challenges and Oportunities CBS/OECD-IMHE Copenhagen, 29 June 2009
MAIN IMPACT OF THE CRISIS ON PARANA
PARANA IN THE WORLD SOURCE: www. ipardes. gov. br
GENERAL DATA ON PARANÁ Capital City CURITIBA (about 2 million inhabitants in Area (2/3) Italy Population Density (2007) (Inh. /km 2) 51. 45 Number of Municipalities 399 Paraná’s Population (2007) 10, 284, 503 (5. 6% of Brazil´s total) Brazil’s Population (2007) 183, 989, 711 Urban Population (2006) (%) 84. 5 Human Development Index (2000) 0. 787 GDP per capita US$ 7, 378, 1 GDP US$ (million) 77, 387. 42 Metropolitan area) SOURCES: SEMA-PR, IPARDES, IBGE, Human Development Atlas, Banco Central (BR= US$ 7, 108. 0)
GDP Brazil x Parana Paraná´s share in Brazilian GDPs Growth (annual) 7. 00 6. 6 6. 00 6. 4 5. 00 6. 2 4. 00 Brazil 3. 00 6 PR/BR Parana 2. 00 5. 8 1. 00 5. 6 0. 00 -1. 00 5. 4 2002 2003 2004 2005 2006 2007 2008 SOURCE: www. ipardes. gov. br 2002 2003 2004 2005 2006 2007 2008
BRAZIL REAL GDP INDEX SOURCE: IBGE- CONTAS NACIONAIS
CRISIS TRAJECTORY Brazil and other emerging economies OECD Leading indicators 110. 00 100. 00 Brazil 90. 00 China India Indonesia 80. 00 Russia South Africa 70. 00 60. 00 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
PARANA GDP COMPOSITION -2006 Around 6% Brazilian GDP Metropolitan Curitiba (35% Parana´s GDP) (53% Parana´s Manufacturing GDP) Manufacturing food and beverages; oil refinery; manufacturing and assembly of vehicles, 54% Farming poultry, pigs sugar cane, corn, soybean, wheat SOURCE: www. ipardes. gov. br
PARANA FOREIGN TRADE SOURCE: www. ipardes. gov. br
MUNICIPALITY POVERTY -2000 (% Population < ½ Minimum Wage)
UNEMPLOYMENT METROPOLITAN AREA CURITIBA X BRAZIL January 2008 -April 2009 10 9 8 7 6 5 4 3 2 Metropolitan Curitiba Brazil 1 0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 SOURCE: IBGE-PME
PARANA 2007 HIGHER EDUCATION INSTITUTIONS Total Curitiba Rest of Paraná 183 54 129 22 4 18 Federal 2 2 State 17 2 City 3 Public Private - 15 3 161 50 111 Particular 131 34 97 Community or Philanthropic 30 16 14
ATTENDING UNDERGRADUATE ENROLMENT 2007 Public (34%) Federal State City Private (66%) Particular Community or Philanthropic Total Curitiba Rest of Paraná 316, 496 108, 281 33, 209 71, 871 3, 201 208, 215 164, 644 109, 543 (35%) 28, 002 26, 282 1, 720 81, 541 56, 495 206, 953 (65%) 80, 279 6, 927 70, 151 3, 201 126, 674 108, 149 43, 571 25, 046 18, 525
IMPACT FOR THE HEIs Private system Decrease in new enrolments; Increase in drop-outs Merging of organisations Public system State system Cut spending due to decrease in the state budget Federal system (UFPR, UTFPR, UNILA) Reduction/cancellation of projects shared with private sector Expansion due to extra-budget resources (REUNI)
MAIN CHALLENGES AND OPPORTUNITIES LINKED TO THE CRISIS Challenges Decrease poverty Economic growth Employment Human development (provision of health and education) Opportunities Improving social networks Capacity building for cooperation among organisations Draft a development project for Paraná
HOW PARANÁ AND ITS HEIs ARE RESPONDING TO THE CRISIS (1) Paraná’s Government Increasing Paraná’s minimum wage Reducing value added tax from 18% to 12% for 95 items Brazilian Government Monetary Policy Reducing interest rate Expanding credit (Public Banks) Fiscal Policy New Public Investments (PAC) Automobiles, Housing, Minimum Wage
HOW PARANÁ AND ITS HEIs ARE RESPONDING TO THE CRISIS (2) Millennium Development Goals as a challenge has been taken on by private organisations HEIs have a modest contribution Partnership with Federal and City Governments Capacity building for first level education staff Increasing life-long learning
CONCRETE RESPONSES TO ADDRESS THESE OPPORTUNITIES AND CHALLENGES Time of change: State election next year Federal government has been more effective managing the crisis. UFPR Increasing relationships with stakeholders Business community; city government; representatives; community in general Internal restructuring in order to be more effective in building human capital
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