Brazil

Brazil is the world's eighth largest economy and growing. There is much to suggest that Brazil will be the fifth largest economy in the world by 2015, and the country is still one of the most attractive countries for international investments, in addition to China.

Saving the rainforests

The forestry initiative sends Brazil to the top of the list of Norwegian bilateral aid recipients. Through the Amazon Fund, Norway funds activities supporting the Brazilian government's efforts to combat deforestation in the world's largest rainforest area. Norway has pledged to support the Amazon Fund with around USD 1 billion until 2015, if Brazil succeeds in reducing deforestation.

The agreement to support the Amazon Fund was signed in 2009 and is in effect until 2015. Norway decides how much funding is to be allocated each year based on the results achieved. The allocations for 2009 and 2010 were NOK 700 and 850 million, respectively. In December 2010 Norway adopted a promissory note scheme, transferring most of these funds to a Norwegian account pending their use in Brazil. As of January 2011, a total of NOK 293 million has so far been paid out.

Establishing new projects has been slower than anticipated, but currently a total of 13 projects have been approved, with a total value of around NOK 700 million. Deforestation results in 2009 were 7 464 km2, the lowest since records began. Preliminary figures indicate that 2011 will be a record year. Germany has also joined the donor fund so Norway is no longer its only supporter.

The two projects financed by Norway through UNDP have resulted in plans for sustainable use of forests in the states of Acre, Pará and Mato Grosso. These plans constitute an important platform for Brazil's future work, including the formulation of measures under the Amazon Fund. The implementation has been far slower than expected, which is probably due to bureaucratic inertia.

Special cooperation strategy

In early 2011 the Norwegian government launched a special Brazil strategy. The country is the most important development partner for Norway in Latin America.

The strategy will: Strengthen, expand and further develop contacts in sectors including business, climate and environment, indigenous peoples and human rights, culture and knowledge collaboration.

"Norway and Brazil are working closely on environment and climate. Brazil is one of the countries in the world doing the most to counter climate change. I look forward to taking rainforest cooperation a step further", said Norwegian Minister of the Environment and International Development, Erik Solheim.

Indigenous peoples

There has been an adjustment in the portfolio of the indigenous peoples programme: The objective is to involve fewer, more powerful partners.

Important trading partner

More than 100 Norwegian companies are represented in Brazil, primarily in shipping, oil and gas – and in the energy sector, as well as in paper, aluminium and fertilizer industries. The prospects for oil and gas provide great opportunities for both Norwegian investments and Norwegian-Brazilian cooperation. There is also a mutual interest between Brazil and Norway for increased cooperation in the fisheries sector, both in terms of management and aquaculture.

Dialogue

There is little tradition of cooperation between workers' and employers' organisations in Brazil. In October 2009 a major conference was held in Brasilia with the purpose of discussing how experiences from the Norwegian model of cooperation in the workplace can be used in Brazil. A Brazilian delegation visited Norway in May 2010.

Through UNDP, Norway has also supported a tripartite project with Brazil assisting Angola and Guinea Bissau with training in public administration.