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Social inequality and the policies of water in the Sao Paulo metropolitan area, Brazil: a study of urban… Castro, Erika Maria Teresa Giongo de Camargo 1998

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SOCIAL INEQUALITY AND THE POLICIES OF WATER IN THE SAO PAULO METROPOLITAN AREA, BRAZIL A study of urban environmental politics through a case study of the Guarapiranga Reservoir Recovery Program by  ERIKA MARIA TERESA GIONGO DE C A M A R G O E CASTRO B . A r c h . Mackenzie Upiversity, 1972  A THESIS S U B M I T T E D I N P A R T I A L F U L F I L L M E N T OF THE REQUIREMENTS FORTHE DEGREE OF M A S T E R OF SCIENCE'  in  T H E F A C U L T Y OF G R A D U A T E STUDIES School o f Community and Regional Planning  W e accept this thesis as conforming to th^^C^pAj,^^^/^^  ^  THE UNIVERSITY OFBRITISH C O L U M B I A December 1998 ( ? ) ; E r i k a M . T . G . C . D e Castro, 1998  In  presenting  this  degree at the  thesis  in  partial fulfilment  of  University of  British Columbia,  I agree  freely available for reference copying  of  department publication  this or of  and study.  this  his  or  her  requirements that the  1 further agree  thesis for scholarly purposes by  the  representatives.  thesis for financial gain shall not  an  advanced  Library shall make it  that permission for extensive  may be It  for  granted  is  by the  understood be  allowed  head  that without  of  my  copying  or  my written  permission.  Department of  ^4^6  ^  The University of British Columbia Vancouver, Canada  Date  DE-6 (2/88)  G r r r ^ u ^ ^  Ji  G{A/  1 2 < 2 ^ Q ^  6 - ^ n ^ r ^  ABSTRACT This research examines the politics that shape the urban environment in Sao Paulo Metropolitan Area. In particular, it inquires into the potential o f international agencies as significant players in major infrastructure projects. It discusses a World Bank project for environment recovery o f the Guarapiranga Reservoir, the second largest water supplier o f the metropolitan area.  This study demonstrates that social inequalities ingrained within developing societies  are  incorporated into urban politics, creating the physical dimension o f social exclusion so prevalent in developing cities.  In  Sao  Paulo, industrialization was  associated  with urban  growth  and  worsening  of  environmental conditions. However, all of the metropolitan population did not equally share these conditions. It is the poor who have the burden o f living in the midst of pollution and i n risky areas, subject to flooding and sliding. This situation is more acute around the Guarapiranga reservoir, where outdated legislation to protect water sources made the l o w value o f land attractive to low-income populations. It was there that the poor found a place for the only housing arrangements they could afford: illegal settlements and favelas, without adequate infrastructure or basic services.  The role played by the World Bank was expected to alter this long-standing situation by addressing the roots o f the physical exclusion o f the urban poor. However, i n spite o f improvements in living conditions o f some settlements around the reservoir, the W o r l d Bank Program has largely failed. The Program did not shift region's planning focus from technical  ii  goals to a broader a n d h o l i s t i c a p p r o a c h that c o u l d address s o c i a l i n e q u a l i t i e s as w e l l as the e n v i r o n m e n t degradation associated w i t h p o o r n e i g h b o r h o o d s i n sensitive areas.  iii  TABLE OF CONTENTS ABSTRACT  II  T A B L E OF CONTENTS  IV  LIST OF T A B L E S  VII  LIST OF FIGURES  VIII  ACRONYMS  IX  ACKNOWLEDGEMENTS  XII  C H A P T E R 1 -- I N T R O D U C T I O N  1  Purpose and Research Questions  1  The Case Study  4  Urban Politics  5  The Governance Question  7  Consequences o f Urban Growth  11  Water Management  13  Sao Paulo  18  Case Study Methodology  19  Organization of the Thesis  20  C H A P T E R 2 -- I N T E R N A T I O N A L I N S T I T U T I O N S A N D T H I R D W O R L D D E V E L O P M E N T  23  Introduction  23  The Concept o f International A i d  26  The W o r l d Bank and Development Concepts  31  International Policies for Sector Distribution of Resources  38  International Institutions Intervention in the Urban and Social Housing Question  49  C H A P T E R 3 -- S A O P A U L O M E T R O P O L I S  61  Introduction  61  Brazil: Urban and Economic Development  63  Sao Paulo: Growth and Globalization  65  Locality  68  The Global Connection  77  Sao Paulo: Poverty and Pollution  80  Environment and Urban Services: Transportation, Health, Education  83  Metropolitan Government in Sao Paulo  88  Sao Paulo in Transition  92  C H A P T E R 4 -- S A O P A U L O W A T E R S  98 iv  Introduction  98  The Watersheds o f Sao Paulo  101  Public Water Policies  103  The Watersheds Protection  109  The Debate about the Watershed Protection  110  Public Politics for the Protection o f the Watersheds  115  The Watershed Protection Discourse  120  The Apparatus for Watershed Protection  122  C H A P T E R 5 -- U R B A N L A N D A N D W A T E R S H E D P R O T E C T I O N  126  Introduction  126  The Question of L a n d and Housing for the Poor  128  The Watershed Protection L a w and its Effect upon Urban Expansion  138  Control of L a n d Use  141  The Watersheds as a Collective Consumer G o o d  142  The Effect of the Discourse and Mechanisms upon the Urbanized A r e a  145  Urban Expansion and its Consequences  147  C H A P T E R 6 -- M E T R O P O L I T A N S A O P A U L O W A T E R S U P P L Y T O D A Y  149  Introduction  149  Water Supply in M S P  150  The Protection o f the M R S P Watersheds  154  The Revision o f the M R S P Watershed Protection L a w  156  The Guarapiranga Hydrographic Basin  159  C H A P T E R 7 -- T H E G U A R A P I R A N G A P R O G R A M  167  Introduction  167  The Program  170  The Actual Stage o f the Guarapiranga Program  177  A n a l y z i n g the Program  181  The Findings  184  C H A P T E R 8 -- C O N C L U S I O N S  198  The new legislation  200  Urban Politics  201  Urban environmental issues  204  Information  206  Participation  207  The land and housing discourse  209  Citizenship rights, forum and c i v i l society organizations  212  The urban planning realm  214  Suggestions  214 v  BIBLIOGRAPHY  220  APPENDIX A - SPMA WATERSHED LEGISLATION  232  The L a w s 898/75 and 1172/76  232  The Decrees  234  Modification o f Watershed Protection Legislation  235  Watershed Protection Legislation Revision  235  Legislation Modifications in the Maluf Government  235  Studies During the Montoro Government  235  The Proposal from the Quercia Government  240  The State Constitution  241  Positions Defended by C i v i l Society Entities  242  A P P E N D I X B -- C A T E G O R Y A R E A S  245  First Category Areas  245  Second Category Areas  249  Second Category Areas Class A  250  Second Category Areas Classes B and C  252  A P P E N D I X C -- A C H I E V E M E N T S T O D A T E ( S E P T E M B E R , 1997)  255  Urban Recovery  255  Sewage  255  Garbage  256  Watershed Management Plan  256  Vegetation  257  Parks  257  Fishing and Pisciculture  258  Mining  259  L y m n o l o g i c a l Diagnosis  259  Pollution Control  259  Environmental and Sanitation Education  260  Patrolling and M o n i t o r i n g  260  APPENDIX D - INTERVIEWS  261  A P P E N D I X E -- P H O T O G R A P H I C R E V I E W  264  vi  LIST OF TABLES Table 2.1 — W B and I D B in Latin A m e r i c a — Percentage of Non-subsidized Resources between 1976-86 in decreasing order o f receiving countries  28  Table 2.2 — W B and I D B in Latin A m e r i c a — Loans between 1967-85 per Investing Sector (million U S $ )  39  Table 2.3 — I D B — Latin A m e r i c a — A n n u a l Resources destined to Social Sector in relation to Financed Resources (in million U S $ )  40  Table 2.4 — W B ( I B R D A I D ) — Latin A m e r i c a — Annual Resources destined to Social Areas in relation to total financing (in million US$)  42  Table 2.5 —• W B — I B R D , Brazil Resources destined to Social Sector in relation to total financing (in million U S $ )  43  Table 2.6 — I D B , B r a z i l — Loans (in million U S $ )  44  Table 2.7 — W B and I D B — Brasil — Resources in Social A r e a per sector  46  Table 6.1 — The Water Supply System for S P M A  152  Table 6.2 — Distribution of Population in the Guarapiranga Basin  159  Table 6.3 — Physical Aptitude for Human Settlement within the Guarapiranga B a s i n  161  Table 6.4 — Evolution o f land use in the Guarapiranga Basin by sub-basins: 1989-1996  164  Table B . l — Benefactions for the Preservation of Native Forests  247  vii  LIST OF FIGURES Figure 3.1 — Metropolitan region o f Sao Paulo: administrative divisions  69  Figure 3.2 — B r a z i l : Population Density  71  Figure 3.3 — U r b a n i z a t i o n Process in Sao Paulo  73  Figure 3.4 — Migration Flows 1950-1980  76  Figure 4.1 — Tiete Basin  105  Figure 5.1 — A r g u m e n t s for Legal Regularization  136  Figure 5.2 — Evolution of Urbanization within the Watersheds  139  Figure 6.1 — Distribution o f water production in Sao Paulo  151  Figure 6.2 — M a p of Guarapiranga Hydrographic Basin  160  Figure 6.3 — M a p of the Physical Aptitude for Human Settlement  163  Figure 6.4 — M a p o f Guarapiranga Sub-Basins  166  Figure 7.1 — Guarapiranga Watershed Management System  172  Figure 7.2 — Guarapiranga Watershed Management  174  Figure 7.3 — Water Resources Integrated Management System  174  viii  ACRONYMS A B C - Santo A n d r e , Sao B e r n a r d o e Sao Caetano do S u l B A - Estado da B a h i a B N D E - B a n c o N a c i o n a l de D e s e n v o l v i m e n t o B N H - B a n c o N a c i o n a l de H a b i t a c a o C E F - C a i x a E c o n o m i c a Federal C E T E S B - C o m p a n h i a E s t a d u a l de T e c n o l o g i a de Saneamento B a s i c o e P o l u i c a o C I D A - C a n a d i a n International D e v e l o p m e n t A g e n c y C I N V A - C e n t r o Interamericano de V i v i e n d a C N A E E - C o n s e l h o N a c i o n a l de A g u a e E n e r g i a E l e t r i c a C N P U - C o m i s s a o N a c i o n a l de Planejamento U r b a n o - R e g i o e s M e t r o p o l i t a n a s e P o l i t i c a s Urbanas C O D E G R A N - C o n s e l h o D e l i b e r a t i v o d a G r a n d e Sao P a u l o C O H A B - C o m p a n h i a E s t a d u a l de H a b i t a c a o C O N G A S - C o m p a n h i a E s t a d u a l de F o r n e c i m e n t o de G a s C O N S U L T I - C o n s e l h o C o n s u l t i v o d a G r a n d e Sao P a u l o C O P A S A - C o m p a n h i a de A g u a e Saneamento S / A D A E E - Departamento E s t a d u a l de A g u a s e E s g o t o s D E R - Departamento E s t a d u a l de Estradas de R o d a g e m E B T U - E m p r e s a B r a s i l e i r a de Transportes U r b a n o s E L E T R O P A U L O - E m p r e s a de E n e r g i a E l e t r i c a de Sao P a u l o S / A E M P L A S A - E m p r e s a M e t r o p o l i t a n a de Planejamento de Sao P a u l o F E P A S A - E m p r e s a de Transportes F e r r o v i a r i o s de Sao P a u l o F I N E P - F u n d o de I n c e n t i v o a P e s q u i s a ix  G E G R A N - G r u p o E x e c u t i v o de Planejamento do G r a n d e Sao P a u l o G N P - Gross National Product I B R D - International B a n k for R e c o n s t r u c t i o n and D e v e l o p m e n t I D A - International D e v e l o p m e n t  Agency  I D B - Inter-Amercian Development Bank I M F - International M o n e t a r y F u n d M G - E s t a d o de M i n a s G e r a i s M R S P - M e t r o p o l i t a n a R e g i o n o f Sao P a u l o M S P - M e t r o p o l i t a n Sao P a u l o N E - R e g i a o N o r d e s t e do B r a s i l N G O s - N o n Governamental Organizations P L A N A S A - P i a n o N a c i o n a l de Saneamento P M D I - P i a n o M e t r o p o l i t a n o de D e s e n v o l v i m e n t o  Integrado  P M S P - Prefeitura M u n i c i p a l de Sao P a u l o P R - E s t a d o do P a r a n a S A B E S P - C o m p a n h i a de Saneamento B a s i c o de Sao P a u l o S A N E G R A N - P r o g r a m a de Saneamento d a G r a n d e Sao P a u l o S C - E s t a d o de Santa C a t a r i n a S E M P L A - Secretaria de Planejamento U r b a n o S E R F A U - S e r v i c o F e d e r a l de H a b i t a c a o e D e s e n v o l v i m e n t o U r b a n o S H D U - Secretaria de H a b i t a c a o e D e s e n v o l v i m e n t o U r b a n o S N M - Secretaria dos N e g o c i o s M e t r o p o l i t a n o s S O M A - Secretaria de O b r a s e M e i o A m b i e n t e S P - Sao P a u l o  x  S P A M - Sistema de Planejamento e Administracao Metropolitanos S P M A - Sao Paulo Metropolitan Area S P M R - Sao Paulo Metropolitan Region U G P - Unidade Gerenciadora do Programa U N - United Nations U S - United States U S A I D - United States Agency for International Development U S P - University o f Sao Paulo W B - W o r l d Bank W W II - W o r l d War II  xi  ACKNOWLEDGEMENTS B e i n g B r a z i l i a n has been a source o f j o y and anger for m o s t o f m y years. T h i s study o w e s its strength to m y constant struggle i n t r y i n g to understand a c o m p l e x reality, r i d d l e d w i t h a w e a l t h o f resources a n d a scarcity o f s o c i a l j u s t i c e .  I a m indebted to a l l the people i n Sao P a u l o i n v o l v e d i n the G u a r a p i r a n g a P r o g r a m w h o h e l p e d m e c o m p i l e i n f o r m a t i o n a n d understand the difficulties i n v o l v e d i n i m p l e m e n t i n g the project. I a m t h a n k f u l e s p e c i a l l y to E r m i n i a M a r i c a t o , w h o is a f r i e n d a n d a great i n s p i r a t i o n t h r o u g h her extraordinary w o r k for the p o o r i n Sao P a u l o .  M a n y thanks to m y supervisory c o m m i t t e e , e s p e c i a l l y to Y o u - t i e n H s i n g , w h o has b e e n a supportive a n d h e l p f u l f r i e n d throughout, a n d M i c h a e l L e a f for a d v i c e a n d guidance. T h a n k s also to m y colleagues at U B C ' s Centre for H u m a n Settlements for their helpfulness, a n d A p r o d i c i o L a q u i a n for h i s support at the b e g i n n i n g o f this research. I a m also grateful to C a r o l B u l l e n for her h e l p i n c l a r i f y i n g so m a n y ideas.  F u n d i n g for the f i e l d w o r k w a s p r o v i d e d b y a grant f r o m the C a n a d i a n International D e v e l o p m e n t Agency (CIDA).  L a s t , but not least, I a m v e r y t h a n k f u l to m y dearest F e r n a n d o , L e o n a r d o a n d O l a v o , w h o s e support a n d constant encouragement were essential for the c o m p l e t i o n o f this endeavour.  xii  CHAPTER 1 INTRODUCTION . the maladies ofpolitics, of which hollow and opportunist rhetoric is the main hindrance to confronting the social question... " (Paulo Prado, in The Portrait of Brazil, 1927)  PURPOSE AND RESEARCH QUESTIONS The quality o f life i n cities o f developing countries such as Brazil is deteriorating. Although cities play a key role i n the development process and make a great contribution to national economic growth, they are becoming very unhealthy, inefficient and inequitable places to live. A n increasing number o f people and industries are generating ever greater amounts o f liquid and solid waste, that outstrips the capacity o f cities to efficiently collect and dispose o f them. They exceed the capacity o f regulatory authorities to control them and o f nature to assimilate them. Urban drainage is compromised and flooding is a constant risk as infrastructure systems are clogged by garbage. Water contamination is serious. A l s o , environmental degradation is threatening the availability and quality o f natural resources, particularly water resources, as a result o f uncontrolled development i n watershed areas.  Those most affected by deterioration o f the physical environment are the urban poor. Conversely, poverty is a major factor i n urban environmental degradation. It is the poor who occupy the ecologically fragile lands i n exclusionary land and housing markets (Bartone, 1991). The existence o f pockets o f First World class neighborhoods i n most larger cities is only a clear symptom o f the prevalent urban inequalities. Nevertheless, these inequalities are not strictly  1  'urban', but a reflection o f economic and social inequalities ingrained within developing societies, and ultimately, a projection of the policies in place.  The purpose o f this thesis is to demonstrate how these inequalities are embedded i n urban politics, creating the physical dimension o f social exclusion so prevalent in developing cities, and focusing particularly on the policies o f water in Sao Paulo Metropolitan Area. Thus, efforts by governments and the international financing establishment towards amelioration o f the urban environment have limited success, because they do not address underlying inequalities, which are the locus o f urban environmental problems. M a n y planning strategies are based on the assumption that urban environmental problems are a consequence o f urbaneness, and even more so, o f larger cities, and that they can be resolved through expensive technical solutions.  Urban policies are defined according to political interests, which are increasingly linked to processes o f economic globalization. Rules respond to the new economic order. A s urban problems grow, international financing is necessary to meet the huge costs o f face-lifts i n urban systems in order not to hinder city functions. Ultimately, urban policies are instruments i n the implementation o f an economic order defined by the concept o f development.  Sao Paulo is a place where  social and environmental  exclusion has been linked with  industrialization, urbanization, and lately with globalization. Anarchic land occupation is the physical dimension o f exclusion, resulting in a promiscuous space, predatory and without sanitation, marked by individual conflicts and community exploitation. Exclusion, though, encompasses more than the physical dimension. It has social aspects (race, skin color, gender,  2  age,  etc.);  it  has  cultural  (literacy,  customs,  etc.),  economic  (lower  wages,  rampant  u n e m p l o y m e n t , etc.), p o l i t i c a l (no c i t i z e n s h i p rights), and e n v i r o n m e n t a l (no access to u r b a n infrastructure services) aspects w h i c h together c o m p o u n d an e x c l u s i o n a r y society ( M a r i c a t o , 1997).  O n e o f the b r u t a l faces o f the e x c l u s i o n that d i r e c t l y affects the u r b a n scenario is the g e n e r a l i z e d i l l e g a l i t y i n h o u s i n g arrangements - favelas, corticos, s u b d i v i s i o n s . T h e j u d i c i a l s y s t e m actions and/or absence o f t h e m do not resolve conflicts or restrain procedures, w h i c h endanger the l i v i n g c o n d i t i o n s o f the destitute. T h e state is not s i m p l y absent, but i n t e n t i o n a l l y it is present i n a v e r y a m b i g u o u s arbritary w a y : repressor, paternalist, clientelist or opportunist.  It is h o p e d that this study w i l l i n f o r m the d i s c u s s i o n about the p o l i t i c s that shape the u r b a n e n v i r o n m e n t . Its c o n t r i b u t i o n is to explore the potential o f international agencies as s i g n i f i c a n t players i n major u r b a n infrastructure projects  associated  with environment improvement.  It  addresses this question: to what extent are urban Sao P a u l o ' s e n v i r o n m e n t a l p o l i c i e s affected b y the international f i n a n c i n g agenda?  T o answer this question, this study examines a project financed b y the W o r l d B a n k ( W B ) w i t h i n the Sao P a u l o M e t r o p o l i t a n A r e a ( S P M A ) . T h e i n q u i r y considers f i r s t l y i f the W B is n a effective change agent i n Sao P a u l o ; a n d secondly, i n h o w it exerts influence or is c o - o p t e d into e x i s t i n g u r b a n p o l i t i c s . T h e i n q u i r y ponders whether the presence o f a m a j o r international agency, the WB,  has  altered  the  decision-making  processes,  e n v i r o n m e n t a l degradation.  3  which  inform urban policies  related  to  T H E CASE STUDY The Guarapiranga Reservoir Recovery Program in Sao Paulo was initiated in 1992 and is now in its final stages. The Program has several sub-programs to deal with pollution of the reservoir, which supplies the water for nearly a quarter of the metropolitan population.  The metropolitan region of Sao Paulo has traditionally lacked natural resource policies and programs that are designed in an integrative and decentralized way. This deficiency compromises the quality of life of the city's residents. This research in part, examines the legislation governing the management of metropolitan watersheds and water supply in the region today.  The Guarapiranga Recovery Program has been acclaimed for its holistic approach to addressing water pollution and related issues. Because the Program is not completed, the present study discusses the results seen by local people. It identifies potential points for program improvement.  Others' research (Caulfield 1996; Escobar 1995) has recognized that the neoliberal agenda of the World Bank and other international agencies has been associated with programs of urban development and recovery that perpetuate a technical and localized approach to urban problems {issue-specific,  according to  World  Bank  nomenclature),  reinforcing the  exclusionary  characteristics of developing cities. This thesis examines the potential impact of WB's approaches not only on existing political praxis, but also, more specifically on the exclusionary urban patterns in Sao Paulo.  In view of this, the study addresses the following case-specific questions:  4  •  I n the context o f the factional p o l i t i c a l e n v i r o n m e n t o f Sao P a u l o , does the W B P r o g r a m p r i v i l e g e one f a c t i o n over another?  •  A r e the resources brought b y the W B e n o u g h o f an i n c e n t i v e for e s t a b l i s h i n g consensus?  •  H a s the P r o g r a m d i r e c t l y i m p a c t e d u p o n the u r b a n p o o r i n Greater Sao P a u l o ?  •  W h i c h aspects o f the P r o g r a m have h a d i m p a c t u p o n p u b l i c p o l i c i e s i n Greater Sao P a u l o ?  URBAN POLITICS T h e c o m p l e x i t i e s o f r a p i d u r b a n i z a t i o n , i n d u s t r i a l i z a t i o n , p o v e r t y and e n v i r o n m e n t a l degradation require  extremely  d i f f i c u l t p o l i t i c a l trade-offs  to  obtain  a  balanced  approach  to  urban  d e v e l o p m e n t . I d e n t i f i c a t i o n o f the m e c h a n i s m s b y w h i c h trade-offs are m a d e is n a objective o f this study.  Trade-offs are made at several levels. F o r e x a m p l e : l o c a l authorities m a y be reluctant to enforce p o l l u t i o n c o n t r o l , initiate polluter-pays p o l i c i e s , or require i n d u s t r i a l safety p r o g r a m s , for fear o f d r i v i n g i n d u s t r y a n d j o b s elsewhere.  A t the n a t i o n a l l e v e l , the g o v e r n m e n t m a y hesitate to  establish e n v i r o n m e n t a l p r o t e c t i o n regulations, w h i c h c o u l d m a k e the c o u n t r y less c o m p e t i t i v e for international investment. A l s o , i n m o s t cases, absence o f c o m m u n i t y awareness a n d sustained pressure m a k e s  i n a c t i o n the simplest p o l i t i c a l course. T h e agenda that has sponsored  the  B r a z i l i a n d e v e l o p m e n t process s t i l l exerts a great influence u p o n the e c o n o m i c g r o w t h v i s i o n associated to these postures.  W h e n d e c i d i n g p o l i c i e s for u r b a n management, p o l i t i c i a n s are w e l l aware that e n v i r o n m e n t a l d e c i s i o n s p r o d u c e w i n n e r s and losers. I n p r o p o s e d effective e n v i r o n m e n t a l p r o t e c t i o n measures,  5  the p o w e r f u l s p e c i a l interest groups, w h o have access to or were part o f the p o l i t i c a l m a c h i n e r y are destined to b e c o m e potential losers. T h e y are u s e d to a regulatory context that protects their interests at any cost. A u t h o r i t i e s and p o l i t i c i a n s are extremely v u l n e r a b l e to this pressure. S i m i l a r l y , the u r b a n p o o r , w h e n p o l i t i c a l l y o r g a n i z e d , c a n represent, i f not a p o w e r f u l , at least a l o u d pressure group w i t h i n c r e a s i n g demands for h o u s i n g (land), infrastructure a n d c o m m u n i t y services. I n general, l o c a l authorities, w h e n r e s p o n d i n g to these k i n d o f pressures often prefer q u i c k - f i x projects over the maintenance or sustainability i n v o l v e d i n l o n g t e r m approaches. These pressures haunt any project for u r b a n e n v i r o n m e n t a l i m p r o v e m e n t .  N e v e r t h e l e s s , it is not o n l y the p o l i t i c a l s k i l l s o f the l o c a l authorities that are at stake. T o be sustainable a n d equitable, an u r b a n e n v i r o n m e n t needs a regulatory context to define its spatial f o r m a t i o n . T h e s e l a w s are (or s h o u l d be) the fruit o f c o n t i n u o u s n e g o t i a t i o n b e t w e e n a l l actors and agents w h i c h c o m p o s e the c i t y . H o w e v e r , this is s e l d o m the case i n d e v e l o p i n g countries. L a w s are not negotiated, but rather are made to protect the interests o f d o m i n a n t groups. Pressure i n v o l v e d i n the d e c i s i o n - m a k i n g process has different weights.  E v e n i f an adequate  set o f p o l i c i e s a n d actions to prevent  or d i m i n i s h damages to  the  e n v i r o n m e n t were i n p l a c e , authorities w i l l l i k e l y face budget constraints. A u t h o r i t i e s often m u s t choose between i n v e s t i n g i n safe waste d i s p o s a l sites or i n needed e d u c a t i o n or health services p r o g r a m s . D e c i s i o n - m a k i n g requires a realistic assessment  o f u r g e n c y , costs a n d benefits  of  e n v i r o n m e n t a l interventions, as w e l l as damage a n d p o l i t i c a l costs o f i n a c t i o n . E f f e c t i v e s o c i a l p a r t i c i p a t i o n is the best antidote against any u n b a l a n c e d d e c i s i o n , but w h e n d e a l i n g w i t h a r e a l i t y bounded  by  a  development  concept  that  implies  6  economic growth at  any  cost, these  c o n s i d e r a t i o n s do not necessarily arise. W h e r e structural i n e q u a l i t y is i n g r a i n e d i n the h i s t o r y o f u n e q u a l relations w i t h i n society, it is v e r y d i f f i c u l t to o v e r c o m e p o l i t i c a l a n d s o c i a l inertia.  I n Sao P a u l o , p o l i c i e s g o v e r n i n g l a n d use a n d h o u s i n g p r o d u c t i o n for the l o w - i n c o m e p o p u l a t i o n have a l w a y s been u s e d as tools to assist the capital a c c u m u l a t i o n m o d e l . A l s o rent p o l i c i e s , l a c k o f i n c e n t i v e for a larger s o c i a l h o u s i n g stock, a n d e n v i r o n m e n t a l p o l i c i e s are reflections o f the same m o d e l .  R e s o u r c e s for u r b a n d e v e l o p m e n t have been used to create basic u r b a n infrastructure w i t h o u t c o n s i d e r i n g e c o n o m i c , s o c i a l and p h y s i c a l discrepancies a m o n g cities. T h e p h e n o m e n o n  of  spatial e x c l u s i o n is perpetuated, w i t h international f i n a n c i n g d i r e c t l y or i n d i r e c t l y e n d o r s i n g the p o l i t i c s i n place.  A s w i l l be o u t l i n e d specific, case o f Sao P a u l o watersheds, l a n d p o l i c i e s have  been u s e d to essentially ' p r o m o t e ' the d e v e l o p m e n t o f i n f o r m a l settlements w h i l e o f f i c i a l l y h i n d e r i n g it. T h i s a m b i g u o u s approach to watershed p r o t e c t i o n has l e d to the deterioration o f water q u a l i t y f o r the m e t r o p o l i t a n r e g i o n a n d o f the quality o f l i f e for l o w i n c o m e settlers i n sensitive areas.  T H E GOVERNANCE QUESTION D o v e t a i l i n g w i t h u r b a n p o l i t i c s , governance  is a major issue i n the m a n a g e m e n t  o f cities.  A l t h o u g h it is not a m a i n objective o f this research, it must be addressed because it is associated w i t h the e f f i c i e n c y o f u r b a n p o l i c i e s , a n d i n particular large infrastructure p r o g r a m s . International agencies have stepped i n to f u n d s u c h projects because n a t i o n a l governments l a c k the f i n a n c i a l  7  c a p a c i t y to absorb the huge costs o f s u c h programs. I n m a n y cases they support g r o w t h o f t e c h n i c a l capacity  n o t available  i n the affected  country. T h e W o r l d  B a n k has supported  e n v i r o n m e n t a l infrastructure p r o g r a m s i n d e v e l o p i n g cities since the 1970s, b u t has recently p r o m o t e d a series o f broader initiatives to m o r e c o m p r e h e n s i v e l y address u r b a n e n v i r o n m e n t a l issues.  A c c o r d i n g to B a r t o n e a n d R o d r i g u e z (1993) issue-specific u r b a n e n v i r o n m e n t a l  management  strategies s h o u l d establish the f r a m e w o r k w i t h i n w h i c h c o o r d i n a t e d short a n d m e d i u m t e r m sectoral a c t i o n p l a n s a n d investments s h o u l d take place. T h e d e v e l o p m e n t o f s u c h strategy s h o u l d be based o n several k i n d s o f analyses, i n c l u d i n g assessments o f health effects a n d e n v i r o n m e n t a l damage,  analyses  o f economic  efficiency  and financial and institutional feasibility.  Even  b e h a v i o r a l a n a l y s i s w o u l d be important to select p o l i c i e s a n d instruments needed to i m p l e m e n t the strategy. Projects oriented w i t h i n this approach focus i n s t i t u t i o n a l r e f o r m i n order to i m p r o v e the m a n a g e m e n t o f resources. T h e G u a r a p i r a n g a P r o g r a m , a l o n g w i t h s o m e other large p r i o r i t y infrastructure projects, emphasizes w a y s to protect water resources. T h i s posture i m p l i e s that h a v i n g issues l i k e q u a l i t y a n d quantity o f water taken care o f represents ' g o o d g o v e r n a n c e ' . B u t h o w have these i n s t i t u t i o n a l reforms been ' p a c k a g e d ' b y international agencies?  S i n c e the 1970s, agendas o f international f i n a n c i n g institutions have been p r o g r e s s i v e l y m o l d e d b y the free m a r k e t i d e o l o g y , w i t h excessive emphasis o n e c o n o m i c g r o w t h . F r o m this e m e r g e d demands f r o m lenders to liberate internal markets a n d e l i m i n a t e barriers to the free market. T h i s attitude generated  a strong critique against  o l d forms  o f management  based  o n import-  substitution strategies. T h e s o c i a l democratic ideals were r e p l a c e d b y b e l i e f i n the free m a r k e t ,  8  and the p o s i t i o n that e c o n o m i c  d i r e c t i o n was  to be defined t h r o u g h p o l i t i c a l n e g o t i a t i o n  processes w a s changed to a posture that the distortions p o l i t i c a l l y i n d u c e d w e r e the cause a n d response o f m o s t o f the e c o n o m i c p r o b l e m s o f d e v e l o p i n g countries.  International institutions, b e l i e v i n g i n the prerogative  o f the e c o n o m y ,  i n f l u e n c e d recipient  governments to d o w n p l a y o f s o c i a l a n d p o l i t i c a l themes. H o w e v e r , w h e n e c o n o m i c  measures  w e r e i m p l e m e n t e d , it b e c a m e clear that w i t h o u t at least some s o c i a l a n d p o l i t i c a l l e g i t i m i z a t i o n , n o t h i n g w o u l d w o r k , a n d n o e c o n o m i c p l a n w o u l d solve the i n c r e a s i n g d e c l i n e o f the e c o n o m y .  T h e concept o f ' g o o d governance' permits international institutions (and the b a n k i n g c o m m u n i t y i n general) to a b a n d o n reliance o n the e c o n o m y as the o n l y s a l v a t i o n , a n d to return to s o c i a l a n d p o l i t i c a l questions related to e c o n o m i c restructuring. T h i s change i n concept has b e e n p o s s i b l e because it addresses the need o f the international agencies to be not i n v o l v e d d i r e c t l y i n i n t e r n a l p o l i t i c a l a n d a d m i n i s t r a t i v e affairs o f the recipient countries. N e v e r t h e l e s s , it is evident that p o l i t i c a l i m p l i c a t i o n s o f e c o n o m i c restructuring affect the a p p r o v a l o f f i n a n c i n g p r o g r a m s , a n d that restructuring is used to efficiently establish the s o - c a l l e d m o d e r n markets.  U n d e r the i n o f f e n s i v e l a b e l ' g o v e r n a n c e ' , international institutions are able to deal w i t h sensitive questions b y disguise those i n t e c h n i c a l terms. A d h e r e n c e to free market i d e o l o g y does not w a v e r . T h e same demands are m a i n t a i n e d ( w e a k e n i n g o f n o r m s , l i b e r a l i z a t i o n o f markets, o p e n i n g to f o r e i g n capital and c o m p a n i e s , r e d u c t i o n o f salaries, etc.). ' G o o d g o v e r n a n c e ' i n s t i t u t i o n a l reforms are o v e r l a i d o n e x i s t i n g n e o l i b e r a l p r o g r a m s . T h e objective  9  and  is not to  integrate ' g o v e r n a n c e '  a n d i n s t i t u t i o n a l reforms into a n e w synthesis i n w h i c h an  economy  depends o n p o l i t i c a l a n d s o c i a l considerations.  B e c a u s e ' g o v e r n a n c e ' i m p l i e s creation o f different levels o f authority i n a society, w i t h i n a n d outside the State, over a n d under the State, the t e r m has b e c o m e i n d i s p e n s a b l e i n f r a m i n g creative i n s t i t u t i o n a l responses to transnational processes. W i t h r a p i d l i b e r a l i z a t i o n o f e c o n o m i e s and g l o b a l c o m m e r c e , w i t h t e c h n o l o g i c a l changes to c o m m u n i c a t i o n s , a g l o b a l society is b e i n g b o r n . B u t w h o w i l l participate i n this governance? A n d h o w w i l l it be executed a n d put i n p l a c e at the  local level?  Government  actions c a n be  limited by  markets  f u n c t i o n i n g for  great  c o r p o r a t i o n s , i n d u s t r i a l a n d private e c o n o m i c interests, w h i c h exert an e n o r m o u s p o w e r . I n order to assure that s o c i a l needs w i l l be addressed it is necessary to foster n e w c o m b i n a t i o n s o f actors f r o m different p o l i t i c a l i d e o l o g i e s , s o c i a l a n d c u l t u r a l , w h o w i l l need to w o r k together.  T h e r e is a n i n c r e a s i n g need i n Sao P a u l o for a d m i n i s t r a t i v e a n d p o l i t i c a l reforms. I n the last t w o decades,  e c o n o m i c crises have  aggravated  poverty  conditions i n many  sectors  of  society,  standards o f l i v i n g have d r o p p e d c o n s i d e r a b l y . T h u s , the request for ' g o v e r n a n c e '  implies  demands for effective p o l i t i c a l p a r t i c i p a t i o n , r e a c t i v a t i o n o f l o c a l e c o n o m i e s a n d p r o t e c t i o n o f disadvantaged sectors.  T h e i n c a p a c i t y o f m o s t major international agencies to deal w i t h the c o n t r a d i c t i o n s i n the concept o f w h a t represents  ' g o o d governance'  caused t h e m concentrate  i n the l i m i t e d objective  of  reforms i n the p u b l i c sector. B e c a u s e o f this, bureaucracies have been u n d e r g o i n g restructuring and de-structuring processes  (especially  health p r o g r a m s , e c o n o m i c  10  initiatives, and public  services).  A l t h o u g h there have been gains i n some places, restructuring has h a d  negative  consequences that have w e a k e n e d efficiency and m o r a l e .  T h e need goes far b e y o n d the i n s t i t u t i o n a l reforms that have a c c o m p a n i e d the discourse. violence,  The  economic  persistent  high  c r i s i s has brought unemployment,  d i s r u p t i v e s o c i a l tendencies:  diminishing school  assistance,  'governance'  increased etc.  urban  Therefore,  governance, to be effective, m u s t i n v o l v e change i n the d o m i n a n t a p p r o a c h to s o c i a l actions that d i r e c t l y or i n d i r e c t l y , affect the u r b a n e n v i r o n m e n t . E f f i c i e n t systems o f authority, equitable r e g u l a t i o n , as w e l l as n e w s t i m u l i to depressed sectors w h i c h are p o t e n t i a l l y j o b generators, are needed i n order to reinforce the c i v i l society p o s i t i o n i n the d e c i s i o n m a k i n g processes.  B e c a u s e they are some o f the most p o w e r f u l players i n the game, international institutions a n d banks m u s t share p o w e r to define a s o c i a l l y just, t e c h n i c a l l y s o u n d a n d e c o n o m i c a l l y feasible ' g o v e r n a n c e ' to attend u r b a n management p r i o r i t i e s . A broader v i s i o n o f the c o m p l e x i t y inherent i n effective governance is fundamental i n b r i n g i n g about change i n the u r b a n e n v i r o n m e n t . F r o m this arises one m o r e question to be answered b y this research: was this i n t e n t i o n present i n the Guarapiranga Program?  CONSEQUENCES OF URBAN GROWTH T h e d e v e l o p i n g w o r l d has been concerned w i t h w e l l - p u b l i c i z e d issues l i k e deforestation a n d p r o t e c t i o n o f b i o l o g i c a l d i v e r s i t y , relegating to the shadows the fact that the m o s t d r a m a t i c a l l y life-threatening f o r m s o f e n v i r o n m e n t degradation are o c c u r r i n g i n cities.  11  S i n c e the 1980s, the urban p o p u l a t i o n i n the d e v e l o p i n g w o r l d has e x c e e d e d the u r b a n p o p u l a t i o n o f d e v e l o p e d countries and it continues to g r o w ( U N R e p o r t s , W o r l d B a n k R e p o r t s , 1984-1996).  L i m i t a t i o n s i n real i n c o m e have caused u r b a n p o p u l a t i o n g r o w t h i n d e v e l o p i n g cities to i m p a c t s e r i o u s l y o n infrastructure and urban services p r o v i s i o n . T h e l i v e s o f the u r b a n p o o r , represent  the fastest g r o w i n g  urban p o p u l a t i o n i n the T h i r d W o r l d are the m o s t  who  affected  ( M c C a r n e y , 1992). E n v i r o n m e n t a l degradation is a s s u m i n g a p a r t i c u l a r l y d r a m a t i c d i m e n s i o n . T y p i c a l F i r s t W o r l d u r b a n and i n d u s t r i a l e n v i r o n m e n t a l p r o b l e m s emerge i n T h i r d W o r l d cities, o n a m u c h larger scale. W i t h c o l o n i a l structural and h i s t o r i c a l deep-seated c o n f l i c t s , they are associated w i t h a p p a l l i n g s o c i a l poverty.  T h e threat to the e n v i r o n m e n t is m a g n i f i e d because, o n a per  capita basis, the a m o u n t o f energy  and materials used i n cities, and therefore the amount o f waste and p o l l u t i o n generated, is several times greater than it is i n r u r a l areas.  I n the u r b a n centers o f the T h i r d W o r l d , air and water c o n t a m i n a t i o n , a n d a c c u m u l a t i o n o f t o x i c m a t e r i a l i n soils are extremely concentrated. B a s i c urban infrastructure is absent i n m o s t parts o f the cities. I n the u r b a n periphery, h o u s e h o l d and i n d u s t r i a l s o l i d waste c o l l e c t i o n and sewage systems do not w o r k . Garbage, i n c l u d i n g i n d u s t r i a l waste, is d i s c a r d e d o n i d l e l a n d , t h r o w n into streams and r i v e r s , or left a l o n g the edges o f roads i n the suburbs. T h e destruction o f green areas a n d areas designated for watershed protection around urban centers is apparently u n c o n t r o l l a b l e . I n m o s t d e v e l o p i n g countries, accelerated i n d u s t r i a l g r o w t h i n recent decades has  12  accelerated  pollution.  Increasing  foreign  debt  has  combined  with  structural  adjustment  policies  to  s y s t e m a t i c a l l y cut f i n a n c i a l resources available to deal w i t h g r o w i n g p o l l u t i o n ( M u e l l e r 1996).  R e s t r i c t i n g the rate o f u r b a n g r o w t h is not accepted as a v i a b l e s o l u t i o n b y m o s t countries. T h e international f u n d i n g agencies and governments have p e r c e i v e d u r b a n i z a t i o n as a n i n e v i t a b l e a n d g e n e r a l l y p o s i t i v e a c c o m p a n i m e n t to e c o n o m i c g r o w t h over the past decades. A t t e m p t s to c u r t a i l u r b a n i z a t i o n w o u l d l i k e l y constrain e c o n o m i c d e v e l o p m e n t and h i n d e r anti-poverty efforts. T h e r e is a relentless tendency to foster the g r o w t h o f cities and to concentrate the p r o d u c t i v e base i n t h e m . International f i n a n c i a l cooperation, i n the first 4 0 years o f their existence e m p h a s i z e d rural development,  t r y i n g to root the p o p u l a t i o n w i t h i n a g r i c u l t u r a l activities  a n d restrain the  exaggerated g r o w t h o f cities. S i n c e then this p o s i t i o n has changed. T h e c i t y is seen as the l o c u s o f s o c i a l a n d e c o n o m i c progress, where the largest part o f the w e a l t h is generated. T h e emphasis has shifted towards the analyses o f u r b a n systems, and o f h o w to use t h e m to i m p r o v e c i t y l i f e .  W A T E R MANAGEMENT W a t e r a n d sanitation services, i n m o s t cases, have the t e c h n o l o g i c a l a n d management c a p a c i t y to d e l i v e r services to what is k n o w n as the f o r m a l city. I n other w o r d s , the parts o f the c i t y that c o r r e s p o n d to u r b a n f o r m a l standards, defined b y l a w s , a n d w i t h o r i g i n s i n c l a s s i c u r b a n i s m , h a v e m o r e or less g o o d services. B u t the f o r m a l c i t y o f the T h i r d W o r l d is fragmented a n d represents, i n m a n y cases, as little as 4 0 percent or less o f the city. M u c h larger is the ' c l a n d e s t i n e ' or i n f o r m a l part o f the c i t y . T h e t e r m ' p e r i p h e r y ' is appropriate i n m o r e t h a n the geographic  sense:  residents l e a d a ' p e r i p h e r a l ' life to the f o r m a l c i t y . E a c h c i t y has its o w n p e c u l i a r i t i e s . S a o P a u l o ,  13  for e x a m p l e , has m o s t o f its i n f o r m a l c i t y i n the ' p e r i p h e r y ' , but almost 3 m i l l i o n p e o p l e l i v e i n s q u a l i d h o u s i n g throughout the city, the "cortigos." ( P M S P , 1992). C i t i e s l i k e R i o de Janeiro a n d B o g o t a have "favelas" w i t h i n their central part. H o w c a n the water a n d sanitation demands o f these cities w i t h i n cities be addressed w i t h q u a l i t y a n d i n a sustained f o r m , i n a w a y  that  guarantees changes, maintenance a n d adequate f i n a n c i n g o f these services over the l o n g t e r m ?  S i n c e the 1990s, loans f r o m the W o r l d B a n k - a p p r o x i m a t e l y 5 percent o f its total f i n a n c i n g have been spent o n cities, w i t h the greatest part u s e d to finance water a n d sanitation systems. B u t this has not brought these services to the l o w - i n c o m e p o p u l a t i o n . T h e funds are spent o n u r b a n infrastructure, u s u a l l y water p r o d u c t i o n a n d large water m a i n w o r k s (catchment a n d s u p p l y ) . M o s t surface waters are p o l l u t e d , w i t h i n a large radius a r o u n d the c i t y . S o m e t i m e s , u n d e r g r o u n d waters, too are c o m p r o m i s e d . C o n c o m i t a n t l y water d i s t r i b u t i o n n e t w o r k s l a c k m a i n t e n a n c e , a n d l e a k i n g a n d i l l e g a l t a p p i n g cause huge losses o f d r i n k a b l e water. I n E u r o p e , a n estimated 30 percent is lost between p r o d u c t i o n a n d c o n s u m p t i o n ; i n d e v e l o p i n g cities this loss c a n r e a c h a n a s t o n i s h i n g 6 0 percent o f treated water ( S A B E S P R e p o r t , 1996).  C o l l e c t e d taxes are c o n s i d e r e d a p r i m a r y source o f funds for infrastructure maintenance. B u t generally the tax structure does not correspond to the cost's reality a n d the p u b l i c corporations do not have d e c i s i o n - m a k i n g p o w e r . T h e y w o r k w i t h i n a p o l i t i c a l f r a m e w o r k not  necessarily  c o n d u c i v e to i m p r o v e d services. S o m e t i m e s , even the extent o f subsidies is not k n o w n , because the r e a l cost has not been accurately determined. U s u a l l y , water a n d sanitation c o r p o r a t i o n s are unable to raise the resources needed to e x p a n d service n e t w o r k s a n d recover costs. C o n s e q u e n t l y ,  14  these c o r p o r a t i o n s have great d i f f i c u l t y extending services to the poorer strata a n d m a i n t a i n i n g h i g h q u a l i t y standards w i t h i n a just tax structure.  In some countries, water cannot be assessed o n a cost recovery basis b y l a w . T h e rationale is s i m p l e : as a b a s i c c o m m o d i t y , water cannot be expensive. T h i s means that the water i n already established n e i g h b o r h o o d s - the f o r m a l c i t y - is h i g h l y s u b s i d i z e d , the p o o r do not get the services, a n d p u b l i c corporations r e m a i n i n deficit. G o v e r n m e n t s see these c o r p o r a t i o n s as a bottomless d r a i n o n f i n a n c i a l resources, a n d s h o w no interest i n strengthening t h e m . F o r the last decade, h o w e v e r , there has been a r e c o g n i z e d need for service corporations w i t h d y n a m i c p r o f i l e s , able to extend services to the poorer strata i n the i n f o r m a l c i t y .  U r b a n r e c o v e r y projects i n d e v e l o p i n g cities are today an essential c o m p o n e n t o f m o s t l o c a l a n d r e g i o n a l g o v e r n m e n t p r o g r a m s . H o w e v e r , the costs o f recovery o f destroyed or c o n t a m i n a t e d natural ecosystems are far h i g h e r than the cost o f p r e v e n t i o n measures. Therefore, it is essential that a l l the i n s t i t u t i o n a l levels be i n v o l v e d i n i m p l e m e n t i n g p o l i c i e s for p o l l u t i o n p r e v e n t i o n a n d enforcement o f controls, a n d i n p u b l i c and c i v i c p r o g r a m s to increase awareness o f the n e e d to care for the e n v i r o n m e n t .  Consequently,  to  strengthen  developing  cities'  urban  growth  management  capacity  and  concentrate m o r e resources o n the p r o b l e m s o f u r b a n e n v i r o n m e n t are the m o s t feasible a n d l o g i c a l approaches to s o l v e this d i f f i c u l t a n d e n d e m i c p r o b l e m .  A s the p r i n c i p a l focus o f efforts to tackle i n c r e a s i n g u r b a n e n v i r o n m e n t a l p r o b l e m s , p o l l u t i o n has been g a i n i n g m o r e and m o r e space i n discussions about u r b a n management.  15  water The  focus is o n r e c o v e r y o f already p o l l u t e d resources and/or preventative measures to preserve this basic a n d essential natural resource.  W a t e r , i n spite o f b e i n g a renewable resource is b e c o m i n g a scarcer c o m m o d i t y . P r o j e c t i o n s s h o w a l a r m i n g scenarios. L o w a v a i l a b i l i t y o f c l e a n water i n the face o f i n c r e a s i n g d e m a n d i n several places a r o u n d the w o r l d c o u l d p r o v o k e territorial conflicts i n the next century. A c c o r d i n g to experts at the H a b i t a t II C o n f e r e n c e , p o p u l a t i o n g r o w t h , waste a n d c o n t a m i n a t i o n cause water scarcity ( S M A , R e p o r t , 1997). I n g l o b a l terms, d r i n k i n g water is abundant, but it is not a l w a y s available  where  it is needed.  E n v i r o n m e n t (1992), c o n s i d e r e d scarce,  A c c o r d i n g to a W o r l d  B a n k Report on Development  there are already 22 countries w h o s e  renewable  water resources  a situation that affects not o n l y h o u s e h o l d s u p p l y , but also  and are  economic  activities.  The  water  availability  problem  becomes  more  dramatic  in  the  face  of  demographic  transformations. I n 1980, a one i n three inhabitants o f d e v e l o p i n g countries w a s l i v i n g i n a c i t y . It is estimated that b y 2 0 2 5 , at least 60 percent o f the p o p u l a t i o n w i l l be u r b a n ; f r o m this total, 80 percent w i l l be concentrated i n precarious h o u s i n g i n b i g cities. I n countries w i t h a h i g h u r b a n concentrations, s u c h as B r a z i l , disregard o f the e n v i r o n m e n t a n d o f b a s i c sanitation is d i r e c t l y affecting the q u a l i t y o f l i f e o f m i l l i o n s . D e g r a d a t i o n o f water sources is o c c u r r i n g because o f p o l l u t i o n a n d n o n - p l a n n e d a p p r o p r i a t i o n o f the available resources. ( S M A , R e p o r t 1997).  W a t e r maintenance a n d preservation depend f u n d a m e n t a l l y o n the q u a l i t y o f other natural resources a n d o n h o w people use t h e m . T o preserve water q u a l i t y a n d quantity requires actions to  16  c o n t r o l the w h o l e ecosystem. A l t h o u g h three quarters o f the p l a n e t ' s surface are c o v e r e d b y water, o n l y 3 percent o f this water are suitable for h u m a n c o n s u m p t i o n . A l s o , d i s t r i b u t i o n o f water o v e r the p l a n e t ' s surface is v e r y u n e v e n , a n d frequently the l o c a t i o n s w i t h abundant s u p p l i e s are not near larger areas o f u r b a n a n d a g r i c u l t u r a l a c t i v i t y .  This  is a c o m p l e x  situation. Preventative  and corrective measures  are  needed  to  create  d e v e l o p m e n t strategies that are b a l a n c e d s o c i a l l y , e c o n o m i c a l l y a n d e n v i r o n m e n t a l l y . A g e n d a 21 i n its d i s c u s s i o n o f u r b a n poverty r e c o m m e n d s sustainable d e m o g r a p h i c d y n a m i c s , the p r o m o t i o n o f sustainable h u m a n settlements and the elaboration o f p o l i c i e s for sustainable  economic  development.  In spite o f the c a l l s expressed i n A g e n d a 2 1 , w h i c h defines sustainable m a n a g e m e n t o f water resources as essential for e c o n o m i c a n d h u m a n d e v e l o p m e n t , w e see c o n t i n u i n g degradation o f water a n d a real r i s k o f irreversible depletion.  V a r i o u s factors contribute to this progressive degradation. T h e B r a z i l i a n Institute o f G e o g r a p h y and Statistics states that 92 percent o f the 5,400 B r a z i l i a n m u n i c i p a l i t i e s do not treat sewage before  releasing it into r i v e r s , thus c o n t a m i n a t i n g water  that w i l l  be  c o l l e c t e d later  for  c o n s u m p t i o n . U n i t e d N a t i o n s reports s h o w that o n l y 83 percent o f B r a z i l i a n s have access to potable water.  I n a d d i t i o n to p r o b l e m s associated w i t h destructive o c c u p a t i o n o f areas w i t h i n h y d r o g r a p h i c basins o f s u p p l y watersheds, w h i c h causes de-forestation, s o i l m o v e m e n t s , erosions, predatory  17  o c c u p a t i o n s , etc., l a c k o f basic sanitation causes the water s u p p l y for u r b a n a g g l o m e r a t i o n s to be seriously compromised.  SAO PAULO In Sao P a u l o State, the strengthening o f u r b a n a g g l o m e r a t i o n is h a p p e n i n g i n m e d i u m - s i z e cities s u c h as  Sorocaba,  C a m p i n a s , P i r a c i c a b a , R i b e i r a o Preto, Sao  Jose  dos  Campos,  Santos,  A r a c a t u b a , Presidente Prudente a n d Sao Jose do R i o Preto, where water m a n a g e m e n t p r o b l e m s s i m i l a r to S P M A are registered. S o m e o f these cities b e l o n g to the same h y d r o g r a p h i c b a s i n as S P M A , w h i c h m a k e s issues o f p o l l u t i o n and water q u a l i t y c o n t r o l ones to be t a c k l e d o n a larger scale than c i t y - b y - c i t y .  In general, water p o l l u t i o n has four m a i n causes: d o m e s t i c sewage, the p r i n c i p a l source  of  o r g a n i c biodegradable composts i n the water system; i n d u s t r i a l effluent, v a r y i n g i n v o l u m e a n d c o m p o s i t i o n ; f a r m i n g a n d cattle r a i s i n g r u n - o f f c o n t a m i n a t i o n (fertilizers, pesticides, h e r b i c i d e s , etc.), c a r r i e d out b y r a i n into rivers and lakes; a n d u r b a n waters generated b y c i t y surface run-off.  In the m e t r o p o l i t a n r e g i o n o f Sao P a u l o , the surface waters are v e r y p o l l u t e d a n d d i f f i c u l t to p u r i f y . Subterranean water also presents h i g h degrees o f p o l l u t i o n , due to i n f i l t r a t i o n o f h e a v y metals, synthetic c h e m i c a l products a n d other t o x i c wastes, w i t h serious i m p a c t s o n p o p u l a t i o n health.  T h e g r o w i n g d e m a n d for water, w i t h the increased deterioration o f sources due to the i n e r t i a a n d l a c k o f integrated g o v e r n m e n t a l p r o g r a m s , is c a u s i n g several conflicts. T h e f r a g i l i t y a n d n o v e l t y  18  o f the e n v i r o n m e n t a l p l a n n i n g tools a n d the isolated a p p l i c a t i o n o f n o r m a t i v e instruments are p r e v e n t i n g i m p l e m e n t a t i o n o f a c o m p r e h e n s i v e management s y s t e m o f water resources. It is a matter o f great c o m p l e x i t y , w h i c h goes b e y o n d specific issues, to i n v o l v e questions o f l a n d use, sociopolitical  a n d i n s t i t u t i o n a l determinants,  interests. M a n a g e m e n t  o f water  resources  and economic  s h o u l d be  agents that have  supported b y  four b a s i c  contradictory elements:  a  territorial a d m i n i s t r a t i v e base; c o m m u n i t y o r g a n i z a t i o n ; d i s c i p l i n a r y ( o r d e r i n g , n o r m a t i v e ) t o o l s ; and t e c h n i c a l instrumentation.  M a n a g e m e n t o f water resources calls for r a d i c a l changes to enforce e c o n o m i c e f f i c i e n c y  and  e n v i r o n m e n t a l sustainability, c o n t r o l o f i n d u s t r i a l p o l l u t i o n , a n d m a s s i v e investments for sanitary drainage a n d d e c o n t a m i n a t i o n o f water sources. Projects necessary to recover a n d preserve water resources i n d e v e l o p i n g cities require not o n l y huge amounts o f f i n a n c i a l resources p h y s i c a l w o r k o f u p d a t i n g infrastructure, but also i n s t i t u t i o n a l / p o l i c y changes i n  for the resources  management to i m p l e m e n t efficient m o n i t o r i n g a n d p o l l u t i o n c o n t r o l measures. I n d e v e l o p m e n t j a r g o n , good governance is required.  C A S E STUDY M E T H O D O L O G Y S p e c i f i c data about the G u a r a p i r a n g a R e c o v e r y P r o g r a m w a s obtained t h r o u g h i n t e r v i e w s w i t h p e o p l e i n v o l v e d f r o m its c o n c e p t i o n t h r o u g h to i m p l e m e n t a t i o n , d e v e l o p m e n t a n d a d m i n i s t r a t i o n . T h i s i n c l u d e s state a n d m u n i c i p a l o f f i c i a l s , residents, N G O representatives, p l u s t e c h n i c a l staff f r o m p u b l i c corporations and c o m p a n i e s (complete list o f interviewees i n A p p e n d i x 3), d u r i n g the p e r i o d between June a n d September 1997, i n Sao P a u l o . P u b l i c a t i o n s a n d newspapers w e r e  19  e x t e n s i v e l y r e v i e w e d , as was the P r o g r a m ' s d o c u m e n t a t i o n . V i s i t s to a n d photo d o c u m e n t a t i o n o f the areas w h e r e the p r o g r a m is b e i n g i m p l e m e n t e d w e r e significant for u n d e r s t a n d i n g the issues involved.  There  were  also  opportunities  to  participate  in  several  workshops  with  scholars  and  p r o f e s s i o n a l s , p l u s t e c h n i c a l personnel i n v o l v e d i n the P r o g r a m , . These seminars w e r e o r g a n i z e d w i t h the support o f the P r o g r a m M a n a g e m e n t U n i t ( U G P ) as a venue for d i s c u s s i o n o f the G u a r a p i r a n g a P r o g r a m objectives a n d achievements to date, a n d for p l a n n i n g . M a n a g e m e n t o f the watershed areas is part o f a c o m p r e h e n s i v e a p p r o a c h that considers the w h o l e water sources s y s t e m for the State o f Sao P a u l o .  ORGANIZATION OF T H E THESIS C h a p t e r t w o e x a m i n e s the role o f International Institutions i n f i n a n c i n g the d e v e l o p m e n t process, w i t h p a r t i c u l a r emphasis o n L a t i n A m e r i c a n and B r a z i l . A s p e c i a l section w i l l deal w i t h the W o r l d B a n k i n particular, i n order to set the f r a m e w o r k for the G u a r a p i r a n g a R e c o v e r y P r o g r a m analysis. T h e objective is to c l a r i f y the role a n d importance o f these agencies i n the d e f i n i t i o n o f the u r b a n scenario, as w e l l as i d e n t i f y i n g their eventual c o n n i v a n c e t o w a r d s the c i t y status quo.  C h a p t e r T h r e e discusses B r a z i l a n d Sao P a u l o m e t r o p o l i s ( S P M ) , to set the context w h e r e u r b a n e n v i r o n m e n t a l p o l i t i c s are h a p p e n i n g and h e l p us to understand the i m p a c t o f the G u a r a p i r a n g a Program.  Social,  economic  and  other  specific  20  features  (geographic  location,  watershed  l e g i s l a t i o n , etc.) presented as part o f the contextual f r a m e w o r k affecting the p o l i t i c a l actions related to the water s u p p l y for the m e t r o p o l i t a n r e g i o n .  C h a p t e r F o u r e x a m i n e s the water s u p p l y o f the m e t r o p o l i t a n r e g i o n as w e l l as the l e g i s l a t i o n affecting water sources. T h e chapter discusses particular l a w s and regulations that contribute to p o l l u t i o n o f the reservoir and p r o b l e m s associated w i t h the i n c r e a s i n g deterioration o f the u r b a n environment.  C h a p t e r F i v e deals w i t h urban l a n d issues a n d the several aspects o f watershed p r o t e c t i o n . T h i s chapter e x a m i n e s  some o f the h i s t o r i c a l roots o f the current situation o f l a n d a n d h o u s i n g  p r o v i s i o n for the l o w e r i n c o m e p o p u l a t i o n i n Sao P a u l o . A p p r o a c h e s d e a l i n g w i t h i n f o r m a l settlements are discussed, as w e l l as the influence o f the discourse o f watershed p r o t e c t i o n u p o n the S P M u r b a n i z a t i o n process.  C h a p t e r S i x g i v e s a b r i e f a n d f o c u s e d account o f the m e t r o p o l i t a n water s u p p l y today. R a t h e r than s i e v i n g t h r o u g h t e c h n i c a l reports o f the matter, it examines  the aspects w h i c h have  i n f l u e n c e d (and s t i l l influence, i n some cases) water p o l i c i e s a n d water management  i n the  r e g i o n . P a r t i c u l a r attention is p a i d to the G u a r a p i r a n g a waterbasin to c l a r i f y the context for the effects o f u r b a n i z a t i o n a n d p o l i c i e s i d e n t i f i e d i n the research.  A c o m p r e h e n s i v e e x p o s i t i o n o f the P r o g r a m ' s h i s t o r y , design, a i m s , p r i n c i p a l players a n d their respective roles is p r o v i d e d i n Chapter Seven. T h e actual stages o f i m p l e m e n t a t i o n o f the v a r i o u s sub-programs are also considered. I n f o r m a t i o n is been added about the e v o l u t i o n o f P r o g r a m i m p l e m e n t a t i o n after the fieldwork w a s c o m p l e t e d .  21  T h e c o n c l u s i o n p o i n t s out as the m a i n p r o b l e m s o f the G u a r a p i r a n g a P r o g r a m : focus m a i n l y o n t e c h n i c a l a p p r o a c h ; c o m p l e x i t y o f issues; p o o r i n s t i t u t i o n a l c o o r d i n a t i o n a n d a d d r e s s i n g o f l o c a l goals; p o o r p u b l i c p a r t i c i p a t i o n ; l a c k o f p u b l i c k n o w l e d g e a n d awareness; l a c k o f m a i n t e n a n c e procedures; no effective e n v i r o n m e n t a l e d u c a t i o n p r o g r a m s ; a n d n o i m p a c t o n l a n d use p o l i c i e s . T h e p o s i t i v e steps o f the P r o g r a m so far are: watershed p r o t e c t i o n l e g i s l a t i o n changes; r e c o v e r y o f several degraded areas; i m p r o v e d l o c a l k n o w l e d g e i n watershed issues; r e i n f o r c e d watershed b a s i n c o u n c i l s ; a n d i n f o r m a t i o n system (data c o l l e c t i o n a n d s y s t e m a s s e m b l y ) .  A l s o , the  c o n c l u s i o n considers the effect o f u r b a n p o l i t i c s o n the u r b a n scenario a n d degradation o f the e n v i r o n m e n t , e s p e c i a l l y as these c o n c e r n watershed p r o t e c t i o n areas. P a r t i c i p a t i o n , c i t i z e n s h i p rights, l a n d issues, water resources management, and institutional p o l i c i e s are d i s c u s s e d .  T h e questions c h a n g e d d u r i n g the process o f the research, not o n l y i n response to the m a t e r i a l and i n f o r m a t i o n gathered, but also as a result o f increased k n o w l e d g e o f the c o m p l e x i t i e s that l i n k p o v e r t y a n d p o l l u t i o n i n d e v e l o p i n g countries.  22  CHAPTER 2 INTERNATIONAL INSTITUTIONS AND THIRD WORLD DEVELOPMENT "Dios nos litre de los expertos internacionales" (Ricardo Alegria, during the BID-MEC Seminar for University Planning, Brasilia, 1975)  INTRODUCTION T h i s chapter discusses the role p l a y e d b y International Institutions i n the d e v e l o p m e n t process i n T h i r d W o r l d countries since the S e c o n d W o r l d W a r ( W W II). It w a s thought that o n c e m i n i m u m c o n d i t i o n s o f w e a l t h ( w i t h i n a capitalist concept) were obtained b y a l l nations, p o l i t i c a l balance w o u l d f o l l o w , a n d the threat o f another w o r l d c o n f l i c t w o u l d be a v o i d e d .  W h e n the C o m m u n i s t threat arouse i n the 1950s a n d 1960s, p o l i t i c a l change  w i t h i n the  institutions brought about a shift o f this i n i t i a l objective. T h e m o d i f i e d a p p r o a c h  affected  international i n v o l v e m e n t i n L a t i n A m e r i c a , where p o l i t i c a l changes w e r e noticeable, a n d m a r k e d p r o f o u n d l y the interventions o f international f i n a n c i n g i n s o c i a l a n d e c o n o m i c aspects. T h e agreements became p o l i t i c a l l y s w a y e d b y the right w i n g thought prevalent i n U S A . a p p r o a c h w a s reflected infrastructure n e t w o r k changed  forever  especially  i n the b u i l t e n v i r o n m e n t , the u r b a n context,  The new a n d the  (roads, dams, etc.). A l s o , p o l i c i e s i n s p i r e d b y i n t e r n a t i o n a l m o n e y  the d e m o g r a p h i c  make-up  o f developing  23  countries.  A l t e r i n g the r u r a l  e n v i r o n m e n t a n d s t i m u l a t i n g i n d u s t r i a l i z a t i o n , they cast cities as major attraction, s t i m u l a t i n g the e x o d u s o f rural p o p u l a t i o n s towards cities i n m o s t d e v e l o p i n g countries, p a r t i c u l a r l y i n L a t i n America.  Q u e s t i o n s c a n be raised about h o w international f i n a n c i n g agencies a n d i n p a r t i c u l a r the W o r l d B a n k have p e r f o r m e d i n h e l p i n g d e v e l o p i n g countries for the last 50 years. W h a t has been the s i g n i f i c a n c e o f their eventual attitude change? D o e s the B a n k c o m m i t i t s e l f to e m p h a s i z i n g l o c a l k n o w l e d g e i n their projects, i n c o r p o r a t i n g perspectives o f l o c a l c o m m u n i t i e s about the m e a n i n g of  development! W h y have the B a n k ' s p o l i c i e s for u r b a n p o v e r t y consisted, i n m o s t cases, o f  l e n d i n g m o n e y for large infrastructure projects, w i t h v e r y little r e c o g n i z e d i m p a c t d i r e c t l y u p o n the u r b a n p o o r ? U l t i m a t e l y , has the B a n k h a d an important role i n s h a p i n g the u r b a n e n v i r o n m e n t o f d e v e l o p i n g cities i n the last decades? I f so, i n w h i c h w a y ?  S e a r c h i n g for answers, w e must first a c k n o w l e d g e the W o r l d B a n k as a major engine i n the conceptual understanding o f  development. T h e B a n k is a r e l a t i v e l y independent i n s t i t u t i o n that  w i e l d s considerable influence w i t h i n the d e v e l o p m e n t agenda. E a c h d o l l a r the B a n k lends m a y t y p i c a l l y raise t w o or three m o r e f r o m other a i d agencies, private banks a n d recipient c o u n t r y governments ( K a r d a m , 1994). T h e W o r l d B a n k also influences the p l a n n i n g o f other a i d agencies a n d b o r r o w e r countries t h r o u g h its c o u n t r y - l e n d i n g and sector-strategy  reports.  Developing  countries are r e q u i r e d to m o d i f y d o m e s t i c p o l i c i e s , p r o f o u n d l y affecting their e c o n o m i e s , to  * "God help us against the international expertise". Ricardo Alegria is a Chilean architect who worked with USAID financial aid for universities in the 1960 and 1970s (the word expertos in Spanish and Portuguese has the same sound as esperto, which means cunning) 24  q u a l i f y for structural adjustment loans. A l s o , it is important to note that the B a n k ' s generally c o n s e r v a t i v e a p p r o a c h to p o l i c i e s affecting T h i r d W o r l d countries has not c h a n g e d s i g n i f i c a n t l y . A d j u s t m e n t s have been geared to i m p r o v e P r o g r a m effectiveness i n terms o f the B a n k ' s o w n d e f i n i t i o n o f d e v e l o p m e n t , rather than towards i n c o r p o r a t i n g n e w p a r a d i g m s or i n d i g e n o u s perspectives ( E s c o b a r , 1996). A general disregard for l o c a l k n o w l e d g e , distance o f B a n k staff f r o m l o c a l c o m m u n i t i e s , a n d a m a r k e d preference for t o p - d o w n approaches, seems to s t i l l p r e v a i l i n m o s t B a n k p r o g r a m s . T h i s is not necessarily b u i l t into project d e s i g n ( i n fact, m o s t recent projects  emphasize  public  consultation/participation,  especially  in  environment-related  p r o g r a m s ) , but it is c l e a r l y s h o w n t h r o u g h p r a g m a t i c actions as d e a l i n g o n l y w i t h the t e c h n i c a l elite o f the countries, a n d not q u e s t i o n i n g their management a n d d e c i s i o n s .  T h e B a n k has been a significant source o f authoritative k n o w l e d g e about e c o n o m i c d e v e l o p m e n t . It p l a y s a k e y role i n the international intellectual debate about d e v e l o p m e n t a n d its r e l a t i o n to e c o n o m i c g r o w t h . Its research a n d p o l i c y - f o r m u l a t i o n capacity carries m o r e authority than those o f any other i n s t i t u t i o n dedicated to d e v e l o p m e n t issues. T h e B a n k also c o m m a n d s great m e d i a exposure i n t e r n a t i o n a l l y t h r o u g h reports a n d documents, w h i c h a l l o w s it to p r o m o t e its v i e w . P e r c e p t i o n o f the B a n k ' s v a l u e as e c o n o m i c leverage for d e v e l o p i n g countries represents another e q u a l l y strong reason for its r e c o g n i z e d importance w i t h i n the f i e l d .  T h e a n a l y t i c c o n c l u s i o n is that international institutions have exerted a strong a n d u n d e n i a b l e i n f l u e n c e u p o n the t r a n s f o r m a t i o n o f d e v e l o p i n g cities. T h e W o r l d B a n k , i n p a r t i c u l a r , is part o f the n e t w o r k o f agents w h o s e actions have shaped and continue to t r a n s f o r m u r b a n space i n d e v e l o p i n g cities.  25  T H E CONCEPT OF INTERNATIONAL AID International institutions, l i k e the W o r l d B a n k ( W B ) a n d the I n t e r - A m e r i c a n D e v e l o p m e n t B a n k ( I D B ) , are w e l l k n o w n i n their role o f l e n d i n g f o r d i v e r s i f i e d sectors w i t h i n d e v e l o p i n g countries' e c o n o m i e s . S i n c e the e n d o f W W I I , they have been offering s o m e t i m e s - s u b s i d i z e d loans to d e v e l o p i n g countries.'  T h e y cite the need to p r o m o t e e c o n o m i c g r o w t h , fight poverty a n d i m p r o v e the q u a l i t y o f l i f e w i t h i n these societies as their major objective  f o r c o u n t e r s i g n i n g the transactions  between  themselves a n d d e v e l o p i n g governments. Therefore, even b e i n g f i n a n c i n g agencies p r i m a r i l y , they define themselves a n d are c a l l e d f i n a n c i a l a i d agencies ( C l i c h e v s k y , 1990). B u t a n objective analysis o f the h i s t o r y o f these agencies a n d their f i n a n c i a l p o l i c i e s s h o w s that p o l i t i c a l v a r i a b l e s - as the i d e o l o g i c a l a l i g n m e n t w i t h the U n i t e d States ( U S ) a n d g e o p o l i t i c a l i m p o r t a n c e o f  The World Bank group comprises specific organizations. The International Bank for Reconstruction and Development (IBDR); the International Development Agency (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for the Settlement of Investment Disputes (ICSID). The IBDR frequently called the "World Bank" has a goal to reduce poverty and improve living standards by promoting sustainable growth and investment in people. The Bank provides loans, technical assistance and policy guidance to developing country members to achieve this objective. Under formal guidelines, very poor countries, which average annual per capita income are U$ 1,505 or less, are eligible for IDA credits. Creditworthy countries bellow this average could be given a blend of IBRD loans and IDA credits Generally, countries with annual average income per capita less thanU$5,435 are eligible for IBRD loans. When a country's average annual income per capita exceeds U$5,435 the process of'graduating' from IBRD is triggered. In its analytical and operational work, the Bank characterizes economies as low-income, middle-income and higherincome. LowOincome and middle-income economies are sometimes referred to as developing economies. Lowincome countries are those with annual average per capita income of U$785 or less; middle-income between U$785 to U$9,635 and high-income U$9,635 or more. (Q&A, 1998). IDA works with subsidized loans, with smaller interest than the commercial ones and with very long amortization periods. Its users are countries with backward economies and recognized levels of dependency and poverty. IBRD, whose actions are on loans that should return totally, helps countries with debt capacity for insuring part of the total costs of some projects, with interest and amortization period dealt case by case. IFC works with the private sector. 1  26  beneficiary  countries were major determinants f o r the d i r e c t i o n o f their a i d . T o  develop  c a p i t a l i s m w i t h i n " u n d e r d e v e l o p e d societies" w a s also a major a i m ( E s c o b a r , 1996).  T h e r e i s n o t a l w a y s a clear a n d direct r e l a t i o n between a country's need to receive aid (evaluated t h r o u g h p o v e r t y indicators l i k e per capita i n c o m e , G N P per capita, etc.) a n d targeting o f loans b y the i n t e r n a t i o n a l agencies.  T h e agencies are b a n k i n g a n d f i n a n c i a l institutions a n d as s u c h , they p r i v i l e g e partners that guarantee a return o f invested resources. N a t u r a l l y , they p r i v i l e g e p o l i c i e s where they ( d e v e l o p e d countries) are l i k e l y to b e c o m e major beneficiaries.  Clichevsky's  study about L a t i n A m e r i c a offers  evidence  o f this. A n a l y z i n g the i n f l u x o f  resources f r o m a l l international f i n a n c i n g agencies between  1977 a n d 1 9 8 6 , she f o u n d that  B r a z i l , the c o u n t r y w i t h the highest G N P per capita i n L a t i n A m e r i c a , w a s m o s t f a v o r e d i n the total resources . H a i t i , w i t h the lowest G N P per capita o f the continent, i s n o t a m o n g the 15 2  h i g h e r resource v o l u m e recipients. O n the other h a n d , G u y a n a , H o n d u r a s , N i c a r a g u a a n d E l S a l v a d o r , countries w i t h strong bilateral relationship a n d i n c l u d e d a m o n g the poorest i n L a t i n A m e r i c a , are a m o n g the 15 h i g h e r receivers ( C l i c h e v s k y , 1990).  C o n s i d e r i n g o n l y the t w o agencies, W B a n d I D B w i t h i n the same p e r i o d ( T a b l e 2.1), o n e c a n see that B r a z i l a n d M e x i c o , countries w i t h strategic g e o p o l i t i c a l i m p o r t a n c e a n d greater e c o n o m i c  The author also cites Cuba as an example of a country with higher income that has received international aid, in this case due to its special relation with the Soviet Union at the time. Calculating total resources received, the author considers all the agencies operating within Latin America, including the bilateral ones, such as American USAID, 2  27  g r o w t h p o t e n t i a l r e c e i v e d forty-three percent o f a l l loans directed towards L a t i n A m e r i c a f o r the 1977-86 p e r i o d . T h i s is a d e c i s i v e  factor  i n understanding the f o r m a t i o n o f the highest  international L a t i n A m e r i c a n debts.  Table 2.1 — W B and IDB in Latin America — Percentage of Non-subsidized Resources between 1976-86 in decreasing order of receiving countries Country  WB  IDB  Average  Brazil  33.9  17.0  25.45  Mexico  21.2  13.9  17.55  Colombia  14.5  9.7  12.10  Argentina  7.4  13.4  10.40  Chile  2.3  10.2  6.25  Peru  4.1  5.0  4.55  Ecuador  2.6  10.2  6.40  Others  14.0  25.8  19.90  100.0  100.0  TOTAL  Source: Clichevsky, 1990  P o v e r t y a n d e c o n o m i c c o n d i t i o n determine, at least f o r m a l l y , a c o u n t r y ' s p o s s i b i l i t y o f r e c e i v i n g s u b s i d i z e d resources. B u t as w a s already noted, e c o n o m i c situation is n o t the o n l y c o n s i d e r a t i o n . S e v e r a l o f the factors influence the d e c i s i o n o f w h i c h country receives a i d . I n general, these arise from  external  polices  o f loaner  governments,  strategic  considerations  and concern  d e v e l o p m e n t o f the g l o b a l market c a p i t a l i s m .  Canadian CIDA, Japanese JICA, German KFW. She has also taken into account private volunteer agencies like MISEREOR, OXFAM, CARE, etc. 28  for  O t h e r c o n d i t i o n i n g factors i n c l u d e the country's credit rating, the private f o r e i g n investment situation a n d import/export markets. Subordinate to these, other m o t i v e s p o i n t e d out b y C a u f i e l d (1996), C l i c h e v s k y (1990) a n d H a y t e r (1972) e x p l a i n w h y resources f l o w to a determinate c o u n t r y a n d not to another. A large part o f allocated resources have p r i v i l e g e d the p r o d u c t i o n sector a n d large infrastructure w o r k s necessary to its development.  Political Contexts and International Loans Historically, as cited by Hayter (1972) and Caufield (1996), major political circumstances that favored interest in resources' application by international financing agencies are: 1. When the political context is unsatisfactory, resources are withheld or loans in progress are paralyzed. (Ex: the absence of any relationship with Cuba, the paralysis of the loans for Brazil during Goulart's government and for Argentina during I Ilia's government) 2. When international institutions agree with the orientation of a specific government, resources flow to make their policies viable, with minimal alterations (Ex: the strong relationship between the World Bank and General Castelo Branco, the first general dictator of Brazil after the 64 coup-d'etat). 3. International institutions use their resources and power to re-structure government policies (as happened in Chile, during the Frei's government first years). T h e t e r m a i d i n the d e v e l o p m e n t context is related to the concept o f lever. A p p l i c a t i o n o f resources to pre-determined e c o n o m i c sectors c a n stimulate d e v e l o p m e n t a n d u n l e a s h p o s i t i v e reactions i n other sectors. T h i s assumes that i n activating an e c o n o m y a n d p o t e n t i a l l y b e c o m i n g a d e v e l o p m e n t generator p o l e , other countries i n s i m i l a r situation w i l l be s t i m u l a t e d to adopt the same measures. P r i v i l e g i n g a p p l i c a t i o n i n the p r o d u c t i v e sectors w i l l create a d r i v i n g force (propelling  spring) for e c o n o m i c  growth  and, consequently,  the  living  conditions o f  the  p o p u l a t i o n . T h i s is the ' g r o w i n g pie' theory, w h i c h c o n d i t i o n e d B r a z i l i a n e c o n o m i c g r o w t h post 1964.  29  S i n c e the 1970s, resources have been generally harnessed to projects i n (so-called)  'national  interest'. T h u s , agencies allocated resources a c c o r d i n g to strategies a n d p r i o r i t i e s d e s i g n e d b y the country's p o l i c i e s , b u t a p p l i e d their o w n c o n d i t i o n s a n d criteria f o r the loans. G e n e r a l l y , these c o n d i t i o n s w e r e established i n negotiation a n d a p p r o v a l stages o f the l o a n , m a k i n g the needs o f the c o u n t r y c o n f o r m to agencies' priorities.  T h e s e institutions have a l w a y s dressed u p i n t e c h n i c a l l o g i c their a i m s a n d p o l i c i e s . T h e y d i d studies a n d s p e c i a l i z e d analyses in loco, w h i c h w o u l d p e r m i t t h e m to suggest d e c i s i o n s , indicate w a y s a n d propose p o l i c i e s to the government  w i t h o u t the appearance  o f external p o l i t i c a l  m e d d l i n g . U n d e r the h e a d i n g o f technical expertise, agencies have p u b l i s h e d studies a n d 3  d o c u m e n t a t i o n that f o l l o w s their o f f i c i a l p o s i t i o n o n m a c r o - e c o n o m i c , sector a n d r e g i o n a l issues, s u c h as h o u s i n g , p u b l i c health a n d transportation.  N e v e r t h e l e s s , i t w o u l d be n a i v e to believe that international institutions w e r e n o t created to also h i n d e r the spread o f r e v o l u t i o n a r y ideologies a n d to foster, disseminate a n d consolidate m a r k e t c a p i t a l i s m . International institutions have been a n important t o o l i n the W e s t e r n a n d A m e r i c a n C o l d W a r strategy to detain the S o v i e t advance a n d to consolidate a strong d e v e l o p m e n t ethic based f u n d a m e n t a l l y o n e c o n o m i c g r o w t h .  In a seminar for Brazilian economists, Mr. Irving Friedman declared that... "the WB and the IMF are based on specific aims and defined objectives. To operate properly, these institutions must make correct economic judgments within the international contexts, and this judgment must be based on objective and sound economic analyses. Since their origin, these institutions were not molded as political institutions. They were created as technical institutions; and so from their inception emphasis was put on scientific work to frame their decisions (as cited in Hayter, 1972). This posture, although it has changed in recent decades, still pervades the Bank's conceptual framework. This is shown by Berger's 1998 analysis of the impact of the Bank in the East Asian trajectory. 3  30  T H E W O R L D B A N K AND D E V E L OPME N T CONCEPTS T h e W o r l d B a n k was, a n d is one o f the m o s t prestigious a n d p o w e r f u l producers o f international development  knowledge,  a n d it has  played  an important role  i n shaping  perceptions  of  d e v e l o p m e n t a l processes i n T h i r d W o r l d countries. I n d i s c u s s i n g b r i e f l y changes i n the W o r l d B a n k ' s understanding o f d e v e l o p m e n t d u r i n g the past four decades, it is p o s s i b l e to evaluate h o w c r u c i a l a n d unquestionable was its intellectual role i n shaping the d o m i n a n t l i b e r a l narrative o f progress, a n d e q u a l l y i n fostering p o s t w a r - w a r l i b e r a l i s m .  O v e r t i m e , the concept o f d e v e l o p m e n t defended b y the B a n k has changed, reflecting w i d e r trends i n the international p o l i t i c a l e c o n o m y . T h e B a n k was c o n t r i v e d as part o f the o v e r a l l B r e t t o n W o o d s s y s t e m w h i c h emerged f r o m the capitalist c r i s i s , g l o b a l w a r a n d r e c o n s t r u c t i o n effort i n the 1930s a n d 1940s. T h e B a n k a n d the I M F w e r e created b y the v i c t o r i o u s a l l i e d p o w e r s as instruments, w h i c h c o u l d be used to consolidate a n d manage the p o s t w a r international p o l i t i c a l e c o n o m y . T h e B a n k was charged w i t h p r o v i d i n g capital a n d expertise w i t h w h i c h to start the postwar reconstruction. B u t it was also a w a y to l i n k countries into a U S - d o m i n a t e d e c o n o m i c order, i n the face o f e m e r g i n g r i v a l r y between U S a n d the S o v i e t U n i o n . S i n c e its i n c e p t i o n , the w i d e r p o w e r relations o f the C o l d W a r have p l a g u e d the B a n k . T h i s p e r i o d s a w the establishment o f a l i b e r a l consensus about the appropriate m o d e l o f e c o n o m i c d e v e l o p m e n t a n d the best a p p r o a c h to the management o f international e c o n o m i c relations. K e y n e s i a n - i n s p i r e d l i b e r a l i s m shifted to the n e o l i b e r a l order o f the 70s ( R u g g i e , 1982).  B e f o r e the 1970s, the B a n k v i e w e d d e v e l o p m e n t w i t h i n the f r a m e w o r k o f K e y n e s ' doctrine a n d C o l d W a r l i b e r a l i s m (liberal d e v e l o p m e n t a l i s m or m o d e r n i z a t i o n theory). T h e o v e r a l l strategy o f  31  the U . S . for what c a m e to be k n o w n as d e v e l o p i n g countries was based o n the experience o f antic o m m u n i s m reconstruction i n E u r o p e i n the late 1940s and 1950s. E f f o r t for d e v e l o p m e n t s h o u l d be supported b y m i l i t a r y and e c o n o m i c a i d , and was r e i n f o r c e d b y the l a u n c h i n g o f the M a r s h a l l P l a n i n 1948, w h i c h a i m e d to r e b u i l d W e s t e r n E u r o p e . T h e s e e m i n g  success o f the  anti-  c o m m u n i s m reconstruction i n E u r o p e , and later i n N o r t h e r n A s i a , c o n t r i b u t e d to increased b e l i e f i n the adequacy o f l i b e r a l d e v e l o p m e n t a l i s m i n the 1960s.  W h i l e M c N a m a r a w a s president o f the B a n k (1968-81), it addressed the p o l i t i c a l v i e w  that  p o v e r t y a n d r e v o l u t i o n w e r e l i n k e d and that the c o m m u n i s t threat c o u l d be e l i m i n a t e d b y the e m u l a t i o n o f an ' e c o n o m i c m o d e r n i z a t i o n ' approach, b e l i e v e d to be responsible for A m e r i c a n and E u r o p e a n successes. B a n k programs p r o m o t e d poverty  a l l e v i a t i o n as their m a j o r g o a l .  This  b e c a m e the core o f d e v e l o p m e n t a l discourse at that t i m e ( H o r o w i t z , 1982).  This  somewhat optimistic v i e w  o f C o l d W a r l i b e r a l i s m , the  trickle-down approach,  was  r e i n f o r c e d b y a document, the M o r a w e t z R e p o r t ( M o r a w e t z , 1977), c o n c l u d e d that w h i l e o n a g l o b a l scale, e c o n o m i c g r o w t h since the 1950s had been r a p i d and dramatic, it c o n t i n u e d to be very p o o r l y distributed. Therefore, once w a y s to redistribute, or t r i c k l e - d o w n , the w e a l t h w e r e established, the d e v e l o p m e n t p r o b l e m w o u l d be s o l v e d .  A c c o r d i n g to M o u r a and M e l l o , w h e n the B a n k began f i n a n c i n g sanitation and h o u s i n g projects, the b e g i n n i n g o f the 1970s, it represented a shift t o w a r d projects w i t h a re-distributive aspect, and sought to demonstrate the f e a s i b i l i t y o f p r o m o t i n g s o c i a l change w i t h o u t d i s r u p t i n g the e x i s t i n g s o c i a l order. T o e x i s t i n g m a c r o - e c o n o m i c  l o g i c that related loans to the international f l u x o f  32  financial and production capital, it added acknowledgement that the development model adopted by the industrialized periphery was provoking serious inter-sector imbalances and was excluding a significant portion o f the population. Poverty thus became an obstruction to development.  In this sense, diagnosis o f the reality in developing countries suggested a need to identify and establish action lines to attack some of the problems reflected spatially in urban areas. Labeled as poverty inductors they include uncontrolled urbanization, unequal distribution o f services and equipment, lack o f housing for the lower income strata, non-existent public transportation, etc.  Initially, the option was to invest in the basic needs o f the urban population, privileging the "increase o f social services and commodities' offered under entrepreneurship basis" (Moura and Mello). In other words, investments were directed to the expansion o f services, mainly energy, water and sewer, but also transportation, telephone and housing. Investment i n these areas brings noticeable improvement in the quality o f urban life, extended also to lower income population. A s well as beneficial to the population i n general, it brought benefits to the production sector, since limited infrastructure in the cities "was a restrictive factor for increased productivity o f private investments" (World Bank, 1991).  The directives o f the Bank were transformed in documentation (policy papers) and other conditions were added to those with economic/technical character, in order for the loans to be approved. In the 1980s, it became important that the program to be funded would be  33  r e p r o d u c i b l e , that it w o u l d target a specific l o w e r i n c o m e p o p u l a t i o n , w h o s e access to the service w o u l d be certain, a n d that it w o u l d a v o i d e n v i r o n m e n t devastation . 4  H o w e v e r , i t s h o u l d be noted that this d i v e r s i f i c a t i o n towards the area o f s o c i a l c o n s u m e r i s m d i d not represent a strong change o f d i r e c t i o n f r o m the p r o d u c t i o n areas, n o r d i d i t represent a great shift i n the internal p o l i c y o f the B a n k . L o a n s directed towards the s o c i a l sector u s e d resources f r o m the I B R D , w i t h o u t subsidies, instead o f d r a w i n g o n the International A i d A g e n c y  (IDA)  l o n g t e r m , l o w interest a n d w i t h a n extended a m o r t i z a t i o n p e r i o d ( C l i c h e v s k y , 1990).  A f t e r the s e c o n d o i l c r i s i s (1979-80) the B a n k became c o n c e r n e d about e c o n o m i c p e r f o r m a n c e i n most  countries. E c o n o m i c stability a n d the maintenance  dependence  o f growth were showing  o n the international f i n a n c i a l system's a b i l i t y to r e c y c l e  enough  visible  funds. T h e  p e r c e p t i o n that the w o r l d e c o n o m y had changed f i n a l l y affected B a n k p o l i c i e s . T h e B a n k started to use structural adjustment loans to l o c k recipient governments into a specific p o l i t i c o - e c o n o m i c order, w h i c h m i r r o r e d the interests a n d assumptions o f its major sponsors (Berger, 1998).  F a c e d w i t h the increase o f f o r e i g n debts i n the 1980s, the W o r l d B a n k turned to structural adjustment o f debtor e c o n o m i e s . It directed its a c t i o n towards sectors that c o u l d have m a c r o e c o n o m i c d e v e l o p m e n t i m p a c t , and p o l i c i e s that, w o u l d affect the structure o f the State apparatus, for e x a m p l e , h o u s i n g f i n a n c i a l systems.  There was a preoccupation of the Bank with international repercussions of certain measures and with targetting resources to projects that would impact negatively on the environment. Caufield describes extensively the negative impacts of WB loans of large dams and irrigation projects in many developing countries that had a damaging effect on the Bank's public image.  4  34  T h e emergence o f n e o l i b e r a l i s m as the d o m i n a n t discourse o n d e v e l o p m e n t c a n be traced to changes i n the o v e r a l l character o f the international p o l i t i c a l e c o n o m y i n the 1980s. It offered simple  s o l u t i o n s to the  economic  problems  o f the  developed  world, dealing  in a  more  c o m p r e h e n s i v e w a y w i t h the a i m s a n d assumptions o f a c o m p l e x array o f transnational forces. A f t e r a l l , they w e r e the m a i n beneficiaries o f the emergent g l o b a l i z a t i o n a n d o f the neoliberal project ( L e y s , 1996).  I n 1981, the B a n k ' s n e w president, A l d e n C l a u s e n i n t r o d u c e d a t o t a l l y different a p p r o a c h to the concept o f development. D u r i n g h i s tenure (1981-86) the shift f r o m p o v e r t y a l l e v i a t i o n to structural adjustment p o l i c i e s was clearly established. A s a f o r m e r head o f the B a n k o f A m e r i c a , the largest c o m m e r c i a l b a n k i n the w o r l d , C l a u s e n was an advocate o f a greatly r e d u c e d role for the state i n the e c o n o m y a n d m u c h greater reliance o n the market as a means o f accelerating economic activity.  D e s p i t e b e i n g one a m o n g several v i e w s sponsored b y the B a n k at that t i m e , structural adjustment w a s u n d o u b t e d l y the p r e d o m i n a n t p o l i c y d i r e c t i o n . It is interesting to note, h o w e v e r that for e a c h research  report  advocating  a n e o l i b e r a l p o s i t i o n , there  w o u l d be  another  that  took  into  c o n s i d e r a t i o n s o c i a l a n d t e c h n o l o g i c a l constraint. Nevertheless, as far as 1991, the n e o l i b e r a l v i s i o n s t i l l p e r v a d e d the conceptual stance o f the B a n k ' s staff: the B a n k ' s d o c u m e n t  "The  C h a l l e n g e o f D e v e l o p m e n t " s t i l l e m p h a s i z e d m a r k e t - i n d u c e d p o l i c i e s as the i d e a l p a t h t o w a r d s g r o w t h a n d i n c o m e d i s t r i b u t i o n ( C a u f i e l d , 1996).  35  W h e n B a r b e r C o n a b l e assumed presidency i n 1986, the B a n k w a s r e o r g a n i z e d for increased efficiency  w i t h a s m a l l e r staff,  development  vision  continued  seemingly to  be  to h e l p the  influenced  by  organization's p u b l i c i m a g e . rational  choice  theory  (the  The new  i n s t i t u t i o n a l i s m a n d the n e w p o l i t i c a l e c o n o m y ) , w h i c h represented a m e c h a n i s t i c a p p r o a c h to the d y n a m i c s o f p o l i t i c a l a n d e c o n o m i c change i n d e v e l o p i n g countries ( M o s l e y , 1991).  T h e d i s i n t e g r a t i o n o f state-socialism b y the e n d o f the 1980s w a s seen as a n e v i d e n c e that the capitalist m o d e l endorsed b y m o s t W e s t e r n countries was superior, thus r e i n f o r c i n g the process of  neoliberal consolidation (Keegan,  1993).  This  situation c o n v e r g e d  w i t h the  existing  international consensus about development, since the p o s t - c o l d w a r p e r i o d s t i m u l a t e d p o l i c i e s that f a v o r e d m o r e i n c l u s i v e p l a n n i n g a n d strong governments' r o l e , as w e l l as c o n c e r n for sustainable d e v e l o p m e n t a n d the e n v i r o n m e n t . I n fact, i n his i n a u g u r a l discourse i n 1991, W o r l d B a n k president L e w i s P r e s t o n expressed the n e w consensus based o n the free-market a n d a balance b e t w e e n the private sector a n d governments, and e m p h a s i z e d sustained e c o n o m i c g r o w t h as the B a n k ' s objective.  In the  1990s, the B a n k ' s tendency to macro-scale interventions is accentuated,  and urban  a g g l o m e r a t i o n s are seen as essential pieces o f n a t i o n a l p r o d u c t i v i t y . T h e B a n k ' s v i e w o f the r e l a t i o n s h i p b e t w e e n m a c r o e c o n o m i c s and u r b a n e c o n o m i c s leaves out the n o t i o n o f the spatial d i m e n s i o n o f the e c o n o m y . M a n y actions i n macro-scale reverberate i n u r b a n l i f e a n d v i c e - v e r s a constraints to u r b a n scale l i m i t p r o d u c t i v i t y a n d eventually have m a c r o - s c a l e i m p a c t s ( W o r l d B a n k , 1991). T h e a c t i o n turns, then, towards larger projects that i n c l u d e i n s t i t u t i o n a l r e f o r m s a n d have reflected at m u n i c i p a l a n d n a t i o n a l levels.  36  In terms o f international influence, the U S A continues to be the B a n k ' s m o s t p o w e r f u l m e m b e r . It chooses the B a n k ' s head, has veto p o w e r over amendments to its A r t i c l e o f A g r e e m e n t , a n d o f f i c i a l s o f the T r e a s u r y Department p e r f o r m regular audits. H o w e v e r , U S A p o w e r emanates p r i n c i p a l l y f r o m the B a n k ' s dependence o n w o r l d f i n a n c i a l markets, where U S A has a central p o s i t i o n , a n d f r o m the B a n k ' s need to be i n consonance w i t h k e y f i n a n c i a l actors a l i g n e d w i t h U S A foreign policy.  T h e vast m a j o r i t y o f the B a n k ' s staff share a strong A n g l o - A m e r i c a n l i b e r a l o u t l o o k a n d n e o c l a s s i c a l t h i n k i n g ( M o s l e y , 1991). A c c o r d i n g to B e r g e r a n d B e n s o n (1998), the i n t e r n a l r e v i e w process supports the current prevalence o f n e o c l a s s i c a l e c o n o m y approaches w i t h i n the upper echelons o f the B a n k . P o l i c y documents f o l l o w a r e v i e w a n d e v a l u a t i o n process w i t h i n the o r g a n i z a t i o n , w h i c h is c o n c e r n e d w i t h the maintenance o f the o v e r a l l n e o c l a s s i c a l perspective. S t a f f m a k e s d e c i s i o n s q u i c k l y , u s i n g facts selectively to sustain certain f a v o r e d patterns a n d c o n v i c t i o n s . A l s o , "the c o n f o r m i s t culture i n w h i c h the B a n k ' s p r e v a i l i n g e d i t o r i a l l i n e is r i g i d l y f o l l o w e d " , i m p e d e s or restricts n o n - c o n f o r m i s t approaches (Berger a n d B e n s o n , 1998).  M o r e recent statements b y i n d i v i d u a l s , for e x a m p l e president James W o l f e n s o h n ' s rhetoric that 'people c o m e first', c r i t i c i z e the B a n k for its a l i e n a t i o n f r o m those it is s u p p o s e d to h e l p , but it is d i f f i c u l t to regard these as s i g n a l i n g a sharp change o f d i r e c t i o n i n the B a n k ' s p o l i c i e s . A s c l e a r l y n o t e d b y B e r g e r , the B a n k is an o r g a n i z a t i o n p r o f o u n d l y i m p l i c a t e d i n the technocratic a n d elitist v i s i o n o f development that stems f r o m the d o m i n a n t international v i e w o f the g l o b a l p o l i t i c a l e c o n o m y e n v i r o n m e n t and remains the d o m i n a n t international a p p r o a c h ( B e r g e r , 1998).  37  INTERNATIONAL POLICIES FOR SECTOR DISTRIBUTION OF RESOURCES T h e W o r l d B a n k and the I n t e r - A m e r i c a n D e v e l o p m e n t B a n k w o r k w i t h i n a sector-action oriented perspective.  Their  loans  are  aggregated  in  agriculture,  industry  and  mining,  export,  transportation, c o m m u n i c a t i o n , sanitation, u r b a n development, and education. I n the f o l l o w i n g table, the resources a p p l i e d i n each o f these sectors were re-classified i n t w o larger categories: sectors b e n e f i t i n g d i r e c t l y f r o m loans; and sectors where the loans m a d e s o c i a l and c o l l e c t i v e c o n s u m p t i o n feasible (see T a b l e 2.2). T h i s clarifies an a n a l y t i c a l d i v i s i o n m a k i n g v i s i b l e the s o c i a l d i s t r i b u t i o n o f the loans and the general goals o f the institutions.  R e s o u r c e s allocated d i r e c t l y to the p r o d u c t i o n sector (industry, agriculture, m i n i n g ) and to b a s i c infrastructure for p r o d u c t i o n ( m a i n l y energy, transportation and c o m m u n i c a t i o n ) f a l l into the first category. I n L a t i n A m e r i c a , they represent, o n average, eighty percent o f a l l resources allocated w i t h i n the last t w o decades.  A g r i c u l t u r e and energy r e c e i v e d the highest percentage o f these  investments, f o l l o w e d b y transportation, c o m m u n i c a t i o n and, lastly, industry and m i n i n g . T h e I D B has a s l i g h t l y h i g h percentage o f this type o f l o a n (82,4 percent), but b o t h the agencies have attached h i g h p r i o r i t y to this sector.  In B r a z i l , there has been great transformation i n these areas i n the last decades. T h e biggest b o r r o w e r w a s the p u b l i c sector, b r i n g i n g f o r e i g n m o n e y for large c o n s t r u c t i o n w o r k s , s u c h as h y d r o e l e c t r i c d a m s , t r a n s m i s s i o n lines, satellites, etc. S i n c e the 1950s, other strategic areas have been targeted  for p u b l i c investment, to create the necessary base for industry and r e g i o n a l  d e v e l o p m e n t poles.  38  Table 2.2 — W B and I D B in Latin America — Loans between 1967-85 per Investing Sector (million LISS)  Area  Production Sector  Type  Production  Sector  WB  Total  %  IDB  o/ /o  %  IDA  IBDR  Agriculture  1549.2  6914.3  8463.5  22.3  6697.4  21.3  15 160.9  21.8  Industry & Mining  178.5  5438.0  5616.5  14.8  5815.4  18.5  11 431.9  2.6  Export  32.5  1085.9  118.4  3.0  701.0  2.2  1 819.4  2.6  Subtotal  Economic infrastruc.  Gen. Total  40.1  41.9  Energy  151.3  7287.6  7438.9  19.6  8526.5  27.1  15 965.4  23.0  Transp.& Comm.  192.9  6656.6  6849.5  18.1  4208.8  13.4  11 058.3  15.9  Subtotal  37.7  40.4 79.9  Consumer Sector  Infrastruc.  Sanitation  307.2  2605.5  2912.7  7.7  2544.8  8.1  5 457.5  7.9  Urban Developm.  201.2  1314.9  1516.0  4.0  920.6  2.9  2 436.6  3.5  Education  410.2  857.3  1267.5  3.3  1477.0  4.7  2 744.5  4.0  Subtotal  15.0  15.7 15.3  Others  1634.7  1064.9  2699.6  7.1  Subtotal  614.0  7.1  1.9  4.8  3 313.6  1.9 4.8  TOTAL  4657.6  33225.0  37882.6  100.0  31505.5  100.0  69 388.1  100.0  Source : IDB - Financiamiento Externo de Los Paises de la America Latina- Depart. Desarollo Economico y Social. Washington.  T h e t r a n s p o r t a t i o n sector has r e c e i v e d p a r t i c u l a r e m p h a s i s , f i r s t w i t h the g e n e r a t i o n o f a n a t i o n a l  road  network,  and secondly  through encouragement  o f the  automotive  i n d u s t r y (the  related  p r o d u c t i o n sector) s t r o n g l y c e n t e r e d i n m u l t i n a t i o n a l r e s o u r c e s .  T h e a g r i c u l t u r a l sector, as it h a p p e n s , d i v e r s i f i e d a n d r e m a i n e d a s i g n i f i c a n t o f e x p o r t  Through  the  federal  government,  a  significant  39  part  of  the  resources  obtained  trade..  from  the  International Institutions were transformed into rural l e n d i n g and directed to large a n d m e d i u m producers ( F u n d a p 1990).  A k e y instrument i n B r a z i l i a n development and m o d e r n i z a t i o n , industry has g r o w n substantially since the 1950s. B e t w e e n 1950 and 1960, areas where f o r e i g n capital w a s a m a j o r p l a y e r , s u c h as transportation and electric materials increased the most, w i t h annual p r o d u c t i o n g r o w i n g at 2 7 percent, a rate m u c h superior to the national average o f 11.9 percent (Singer, 1982).  A s T a b l e 2.2 shows, the second category absorbed  15 percent o f i n t e r n a t i o n a l institutions'  resources destined to L a t i n A m e r i c a ( a p p r o x i m a t e l y U S $ 10.6 b i l l i o n i n a total o f U S $ 6 9 . 4 b i l l i o n ) . T h e funds w e r e a p p l i e d i n sectors such as h o u s i n g , u r b a n d e v e l o p m e n t , sanitation and 5  education. T h e use o f resources i n these areas clearly i m p l i e s a n i n t e n t i o n to foster conditions  f o r labor r e p r o d u c t i o n , b y intervening  directly i n l i v i n g  conditions.  basic  Sanitation,  u n d e r s t o o d as e x p a n s i o n o f water a n d sewage n e t w o r k s i n u r b a n areas, r e c e i v e d the largest percentage o f resources, w i t h 8 percent o f the total investments a n d 50,6 percent o f the total a p p l i e d i n s o c i a l areas.  A c h r o n o l o g i c a l analysis o f percentage o f loans to s o c i a l areas i n r e l a t i o n t o the total, (Tables 2.3 and 2.4), s h o w s a strong y e a r l y v a r i a t i o n between 11 and 25 percent o f the total investment.  Table 2.3 — IDB — Latin America — Annual Resources destined to Social Sector in relation to Financed Resources (in million US$)  Urban development is understood here as including the projects for institutional modernization, urban planning, housing and public transportation. 5  40  Year  Total Fin.Res.  Social Area  (1)  Urban Development (2)  Sanitation/ Education (3)  Total Soc.A. (4)  % (4/1)  (2/4)  1967  469,5  13,8  80,9  94,7  19,1  14,6  1968  430,9  26,0  36,2  62,2  14,4  41,8  1969  631,5  11,3  63,5  74,8  11,8  15,1  1970  644,8  47,4  39,3  86,7  13,4  54,7  1971  651,8  7,5  119,5  127,0  19,5  5,9  1972  806,7  44,0  89,9  133,9  16,6  32,9  1973  884,0  14,3  138,2  152,5  17,3  9,4  1974  110,7  -  129,3  129,3  11,6  0,0  1975  1375,0  38,2  179,1  217,3  15,8  1976  1527,8  41,5  203,8  245,3  16,1  16,9  1977  1808,9  43,1  306,0  349,1  19,3  12,3  1978  1870,2  -  241,1  241,1  12,9  0,0  1979  2015,0  1,5  248,0  249,5  12,2  0,6  1980  2308,9  40,0  310,3  350,3  15,2  11,4  1981  2493,0  11,0  273,0  284,0  11,4  3,9  1982  2744,3  190,3  505,8  696,1  25,4  27,3  1983  3045,0  39,2  460,1  499,3  16,4  7,9  1984  3566,6  297,3  290,0  587,3  16,5  50,6  1985  3061,2  54,2  307,8  362,0  11,8  15,0  TOTAL  31508,8  920,6  4021,8  4942,4  15,7  18,6  Source: Ibid.  41  0/  ,  17,6  Table 2.4 — WB (IBRD AID) — Latin America — Annual Resources destined to Social Areas in relation to total financing (in million US$) Year  Total  Social Area  (1)  Urban Development (2)  Sanitation/ Education (3),  Total (4)  (4/1)  % (2/4)  1967  616.4  3.5  28.7  32.2  5.2  10.9  1968  1016.1  3.0  158.1  161.1  15.9  1.9  1969  515.6  -  32.9  32.9  6.4  0.0  1970  888.2  -  140.4  140.4  15.8  0.0  1971  982.2  39.1  164.8  203.9  20.8  19.9  1972  1184.2  78.0  48.1  126.1  10.6  61.9  1973  1071.7  15.0  216.0  231.0  21.6  6.5  1974  917.8  56.5  124.6  181.1  19.7  31.2  1975  1541.7  10.0  139.2  149.2  9.7  6.7  1976  1940.9  56.1  165.8  221.9  11.4  25.3  1977  1348.9  23.7  129.8  153.5  11.4  15.4  1978  2442.2  70.5  189.7  260.2  10.7  27.1  1979  2634.2  207.5  211.9  419.4  15.9  49.5  1980  3321.0  35.0  563.0  589.0  18.0  5.9  1981  3472.7  164.0  334.7  498.7  14.4  32.9  1982  3170.9  216.0  224.0  440.0  13.9  49.1  1983  4049.1  117.9  483.1  601.0  14.8  19.6  1984  2566.3  162.5  212.6  375.1  14.6  43.3  1985  4202.3  281.4  612.8  894.2  21.3  31.5  TOTAL  37882.4  1539.7  4180.2  5719.9  15.1  26.9  Source: Ibid.  42  /o  Table 2.5 — WB — IBRD, Brazil Resources destined to Social Sector in relation to total financing (in million US$) Total  </o >/  Year  (1)  Social Area (2)  1971  160,4  45,4  1972  437,0  -  0,0  1973  187,7  -  0,0  1974  242,0  36,0  14,9 •  BNH -Water MG 36,0  1975  426,5  23,5  5,5  Education 23,5  1976  498,0  19,0  3,8  Nutrition 19,0  1977  425,0  72,0  16,9  1978  705,0  198,0  28,1  1979  674,0  263,0  39,0  1980  695,0  301,0  43,3  1981  844,0  270,0  32,0  Education (profess.train.) 32,0; water/sewage COPASA MG 40,0 Urban trans. EBTU 88,0; BNH/SABESP Sewage collection and treatment 110,0 Urban development medium cities 70,0; BNH urbanized plots/low cost housing 93,0; BNH Water/Sewage NE 100,0 Basic Education NE 32,0; BNH Water/Sewage 130,0; BNH MG 139,0 EBTU 90,0; BNH Sanitation 180,0  1982  722,1  136,9  19,0  Urban Development Recife 123,9; nutrition 13,0  1983  1457,5  311,2  21,4  1984  1604,3  169,7  10,6  1985  1506,7  88,3  5,9  Metropolitan development Fortaleza/Salvador 8,9; BNH Water/ Sewage 302,3 Urban development PR 52,7; Health/nutrition 57,9; Education/technical training 20,0; Basic education 40,0 Education 72,0; water supply rural areas 16,3  1986  1620,0  239,0  14,8  1987  1261,5  274,5  21,8  1988  1359,5  255,0  18,8  1989  707,0  474,0  67,0  TOTAL  15533,2  3176,5  21,4  (2/1) 28,3  Area/Agency Distribution (in US$ million) Education 8,4; water 22,0; sanitation SP 15,0  Flooding NE 100,0; Metropolitan development Salvador 55,0; Development small cities SC 24,5; nutrition 59,5 Urban transportation 200,0; education 74,5 Flooding RJ 175,0; Water/Sewage small cities and low income areas CEF 80,0 CONGAS 94,0; Municipal Development PR 100,0; SABESP Water 280,0  Source: WB Annual Reports  43  Table 2.6 — IDB, Brazil — Loans (in million US$) Total  Social Area  1971  (1) 148,9  (2) 30,0  1972  2133,2  1973  /o (2/1)  Area/Agency distribution (in million US$)  20,1  Water/Sewage B N H 30,0  10,0  4,7  Clean Water RJ 10,0  274,1  48,0  17,5  F I N E P Science & Technology 32,0; Technical education 16,0  1974  187,0  -  0,0  1975  269,5  50,0  18,6  1976  239,1  -  0,0  1977  361,5  -  0,0  1978  283,2  -  0,0  1979  365,5  -  0,0  1980  424,4  -  0,0  1981  383,1  -  0,0  1982  372,2  155,0  35,1  Federal Universities Development 95,0; Urban Development M G 60,0  1983  441,0  149,0  34,7  Clean Water Salvador B A 149,0  1984  393,7  -  0,0  1985  395,3  -  0,0  1986  428,8  240,6  56,1  Flooding S P - P M S P 77,6; Sewage network S P S A B E S P 163,0  1987  369,9  163,2  44,1  Water/Sewage Brasilia 100,0; U S P Development 63,2  1988  7,1  1989  525,1  -  0,0  TOTAL  6082,6  845,8  13,9  Year  Federal Universities Development 50,0  0,0  Source: IDB Annual Reports  44  In the B r a z i l i a n case i n particular, it is p o s s i b l e to v e r i f y that this v a r i a t i o n is m o r e significant. It oscillates b e t w e e n no investment i n the s o c i a l sector, as happened i n v a r i o u s years w i t h the I D B , to 67 percent o f the total o f applications i n the country, a r e c o r d reached b y the W o r l d B a n k i n 1989, due to a h i g h l o a n for the sanitation services for S P State (Tables 2.5 a n d 2.6). T h i s apparent l a c k o f clear l o g i c i n the annual a l l o c a t i o n o f resources c a n be seen as  reinforcement  towards i n v e s t i n g i n p r i o r i t i z e d sectors associated w i t h p r o d u c t i o n , instead o f a clear agenda where s o c i a l areas are p e r c e i v e d as the backbone o f development.  In r e l a t i o n to the resources d i s t r i b u t i o n between the s o c i a l sectors, table 2.7 s h o w s that I D B resources are destined to 4 areas: sanitation (53,4 percent); education (30,3 percent);  flooding  r e l i e f (9,2 percent) and u r b a n development (7,1 percent). T h e W o r l d B a n k has a s l i g h t l y m o r e v a r i e d range o f projects i n its l e n d i n g p o r t f o l i o : sanitation (45,7 percent); u r b a n  development  (16,6 percent), u r b a n transportation (11,9 percent) education (9,5 percent) f l o o d i n g r e l i e f and gas n e t w o r k (11,9 percent). T h e s o c i a l sector p r i o r i t y for sanitation is c l e a r l y l i n k e d to international institutions concept o f a h i g h rate o f return o n investment, i n terms o f p o p u l a t i o n benefited. F r o m this perspective, sanitation is a m o r e p r o d u c t i v e investment than, for e x a m p l e , s o c i a l h o u s i n g , a n e q u a l l y important factor i n shaping the urban fabric.  It is i m p o r t a n t to emphasize that the great 'informant''  o f international institutions has been the  state, i n its central, r e g i o n a l and l o c a l instances or t h r o u g h its p u b l i c corporations, because they are a priori,  those that assume r e s p o n s i b i l i t y for the loans engaged. T h e state has p l a y e d a k e y  role i n h e a v y infrastructure investments, i n order to secure f o r e i g n private c a p i t a l for ports, t e l e c o m m u n i c a t i o n , energy, transportation, etc. as w e l l as i n the establishment o f base industry  45  and i n the direct incentive towards c o m m o d i t i e s p r o d u c t i o n i n countries w i t h late c a p i t a l i s m . W i t h this strategy, the state aims to create c o n d i t i o n s to encourage the p r o d u c t i o n o f c a p i t a l , foster c o l l e c t i v e c o n s u m p t i o n and guarantee the c i r c u l a t i o n o f i n f o r m a t i o n and c o m m o d i t i e s . Investment i n these sectors m o l d e d m o r e or less directly the r e l a t i o n s h i p b e t w e e n c a p i t a l and labor.  Table 2.7 — WB and IDB — Brasil — Resources in Social Area per sector  Sector  WB - BIRD  % of Total  IDB  % of Total  Sanitation  1450,6  45,7  452,0  53,4  Education  302,4  9,5  256,2  30,3  Nutrition  148,5  4,7  -  0,0  Urban Transportation  378,0  11,9  -  0,0  Urban Development  528,0  16,6  60,0  7,1  Others*  369,0  11,6  77,6  9,2  TOTAL  3176,5  100,0  845,8  100,0  *Others: Flooding, Gas supply Source: WB and IDB Annual Reports (from 6 and 7 tables)  Investments i n sanitation, transportation, education and health as w e l l s o c i a l h o u s i n g , d i r e c t l y affect the l i v i n g c o n d i t i o n s o f the p o p u l a t i o n and are m o r e v i s i b l e and because they are a p p l i e d w i t h i n the u r b a n area.  D u e to the size o f these tasks a n d often-favorable  f o r e i g n l e n d i n g c o n d i t i o n s , international  f u n d i n g b e c a m e a means b y w h i c h governments w e r e able to execute a n a m b i t i o u s p u b l i c w o r k s agenda. I n other w o r d s , resources have f l o w e d w h e n n a t i o n a l priorities c o i n c i d e d w i t h the agenda of  the institutions.  Obviously,  national  priorities were  46  sometimes  adjusted  to meet the  International Institutions' p o l i c i e s , w i t h the sole objective o f o b t a i n i n g resources, a l w a y s v e r y scarce i n d e v e l o p i n g countries.  A c c o r d i n g to M o u r a and M e l o (no date) i n their study o f the d e c i s i o n - m a k i n g process b e t w e e n the W o r l d B a n k and B r a z i l , the B a n k ' s staff originated the p i o n e e r i n g projects i n each  sector.  International institutions establish, then, a series o f rules and goals i n terms o f concept operation m o d e for o b t a i n i n g resources. I n spite o f e x i s t i n g specific reports for each  and  country,  i n t e r v e n t i o n proposals b e c o m e v e r y s i m i l a r , due to the B a n k ' s r i g i d i t y and insistence o n a d o p t i o n o f certain p o l i c i e s (Hayter, 1972; C a u f i e l d , 1996), based o n a c o m m o n diagnosis o f e c o n o m i c and l i v i n g c o n d i t i o n s i n T h i r d W o r l d countries. E s c o b a r (1995) also emphasizes the l a c k o f a l o c a l perspective i n international institutions' approach.  Therefore, l o a n a p p l i c a t i o n s are presented a c c o r d i n g to the B a n k ' s p r i o r i t i e s , perfectly fitted for its loans p r o g r a m s . I n this w a y , international institutions exercise a h o m o g e n i z i n g role i n the p u b l i c p o l i c i e s o f L a t i n A m e r i c a n countries, e v e n i f their e c o n o m i c ,  c u l t u r a l and p o l i t i c a l  d i v e r s i t y w o u l d presuppose answers w i t h a larger degree o f variance.  In s o m e instances, pre-conditions i m p o s e d b y the agencies can be i n c o m p a t i b l e w i t h a c o u n t r y ' s internal conjuncture  o f interests. T h i s w o u l d e x p l a i n , partly, the i n c o n s i s t e n c y  o f resources  a p p l i c a t i o n over the years. It is noticeable h o w e v e r that sector a l l o c a t i o n o f loans i n B r a z i l diverges f r o m sector a l l o c a t i o n elsewhere, suggesting that B r a z i l ' s internal p r i o r i t i e s , for e x a m p l e i n the n a t i o n a l plans for development, w e r e m a i n t a i n e d ( A b r e u a n d F r i s t c h i n M o u r a a n d M e l o , 1990).  47  A n a l y s i s o f the annual reports o f these institutions demonstrates that demands are  differently  attended, e v e n w i t h i n the same pre-defined line o f f i n a n c i n g . S m a l l e r projects, s u c h as s o c i a l h o u s i n g , appear w i t h h i g h frequency i n countries w i t h less advanced c a p i t a l i s m . I n other w o r d s , the l e v e l o f i n s t i t u t i o n a l and e c o n o m i c development o f a country interferes w i t h the d e m a n d for resources, because the existence o f a certain degree o f internal w e a l t h is sufficient for f u n d i n g projects o f s m a l l e r span and o f s o c i a l v o c a t i o n . T h i s p r i n c i p l e c a n be seen i n the case o f the G u a r a p i r a n g a R e c o v e r y Project, because the s o c i a l h o u s i n g f u n d i n g was a r e s p o n s i b i l i t y o f the B r a z i l i a n side o f the agreement, l e a v i n g to the B a n k the less c o m p l i c a t e d and less p o l i t i c a l l y charged side o f the P r o g r a m .  T h e W o r l d B a n k , as w e l l as the I D B , have a l w a y s g i v e n central i m p o r t a n c e to l e n d i n g for infrastructure, a n d w i t h i n this c l a s s i f i c a t i o n , for w o r k s to i m p r o v e sanitation (see T a b l e 2.2). It is not s u r p r i s i n g , therefore, that the B N H - B a n c o N a c i o n a l de H a b i t a c a o ( N a t i o n a l H o u s i n g B a n k ) , has e m p h a s i z e d sanitation i n its investments w i t h internal c a p i t a l , d i v e r t i n g a p p r o x i m a t e l y  30  percent o f its total resources a w a y f r o m its m a i n mandate o f b u i l d i n g s o c i a l h o u s i n g ( M a r i c a t o , 1987).  A c c o r d i n g to its 1980 A c t i v i t i e s Report, between 1966 and 1980 the B N H o b t a i n e d U S $ 890 m i l l i o n i n the international market to supplement internal savings. T h i s amount w a s equivalent to 15.3 percent o f the total investment for water s u p p l y and drainage systems. M o u r a a n d M e l o (1990) p o i n t out a d e f i n i t i v e influence b y international institutions i n p o l i c y d e c i s i o n s b y s o m e sector agencies w h i c h they h e l p e d to organize, for e x a m p l e the S a n i t a t i o n D i v i s i o n o f B N H . F r o m this p o i n t o f v i e w , the influence o f international institutions i n d e c i d i n g the use o f internal  48  resources, and u l t i m a t e l y shaping the b u i l t e n v i r o n m e n t , was m o r e important t h a n the  loans  received from them.  T h e investments preferred b y international institutions are i n the p r o d u c t i o n sectors,  especially  those w i t h m o r e guaranteed return. I n a d d i t i o n , it is necessary to e x p a n d the m a t e r i a l base o f d e v e l o p i n g countries t h r o u g h m o d e r n i z a t i o n (for internal a c c u m u l a t i o n o f capital) or t h r o u g h p a r t i c i p a t i n g i n a larger e x p a n s i o n p r o g r a m o f g l o b a l c a p i t a l i s m . T h e s o c i a l sector has been a l o w p r i o r i t y i n the investment agenda o f international institutions, apart f r o m the sanitation sector. B e c a u s e o f the p r i o r i t y g i v e n to sanitation w o r k s w i t h i n the u r b a n e n v i r o n m e n t , international loans have h a d some p o s i t i v e i m p a c t o n q u a l i t y o f life o f the l o w - i n c o m e p o p u l a t i o n .  In v i e w o f these facts, project f i n a n c i n g b y international institutions has m a d e t h e m i m p o r t a n t agents o f i n t e r v e n t i o n i n the u r b a n scenario o f d e v e l o p i n g countries. A l o n g w i t h resources, they c o n t r i b u t e d rules and c o n d i t i o n s that influenced and interfered i n projects.  INTERNATIONAL INSTITUTIONS INTERVENTION IN T H E URBAN AND SOCIAL HOUSING QUESTION T h e p e r f o r m a n c e o f international f u n d i n g agencies has specific characteristics i n terms o f their a l l o c a t i o n p r i o r i t i e s . T h e diagnosis, r e c o m m e n d a t i o n s , p o l i c y actions and the state's r o l e have been m o d i f i e d over the years. T h e s e m o d i f i c a t i o n s o f the past 30 years indicate that there w e r e s o m e changes o f directions i n the f o r m o f intervention o n d e v e l o p m e n t reality i n d e v e l o p i n g countries.  49  issues a n d o n s o c i a l  I D B , U S A I D , U N a n d the W B are the m a i n international institutions, w h i c h have been i m p o r t a n t in  Latin  America.  They  benefited  from  the a c c u m u l a t e d  experience  o f the E x i m b a n k  ( I m p o r t a t i o n a n d E x p o r t a t i o n B a n k o f W a s h i n g t o n ) a n d the I B R D that has been g r a n t i n g loans i n L a t i n A m e r i c a since the b e g i n n i n g o f the 50s. W i t h i n L a t i n A m e r i c a , there w a s a d e m a n d f o r external resources supported b y the b e l i e f o f p o s s i b l e n a t i o n a l l y based d e v e l o p m e n t industrialization,  which would  create the internal c o n d i t i o n s  for economic  through  growth . T h e 6  p a r t i c i p a t i o n o f international capital w a s i n c l u d e d , i n the f o r m o f loans o r i n the f o r m o f investment f r o m f o r e i g n companies. It w a s seen as necessary  to appeal t o 'external  savings'  t h r o u g h private investments, but "...(for the n a t i o n a l officials) w a s v e r y clear that l e n d i n g w a s i n d i s p e n s a b l e f o r e l i m i n a t i n g strangling points i n basic sectors,  s u c h as transportation a n d  energy, w i t h o u t w h i c h opportunities f o r private interventions w o u l d suffer grave c o n s t r i c t i o n " (Report f r o m the C o m m i s s i o n B r a z i l - U S i n M a n t e g a , 1984).  T h e C I N V A (Centro Interamericano de V i v i e n d a - I n t e r - A m e r i c a n C e n t e r f o r H o u s i n g ) a n d the U N brought to d i s c u s s i o n L a t i n A m e r i c a n governments' agendas to address p r o b l e m s e m e r g i n g f r o m accelerated process o f transformation i n urban agglomerations.  T h e 1956 U N m i s s i o n n o t i c e d that L a t i n A m e r i c a w a s g o i n g t h r o u g h a p e r i o d o f r a p i d change and t r a n s f o r m a t i o n w i t h n o e q u i l i b r i u m between the potential o f rural a n d u r b a n d e v e l o p m e n t .  During the decade between 1940 and 1950, the analyses of the underdevelopment problem championed by CEPAL became widely accepted among Latin American countries. According to these, it was necessary to reorient the basic axis of the economy, till then turned towards 'outside', to a development model turn 'inside,' that is, based on industrialization for the internal market (Mantega, 1984). 6  50  G r o w i n g m i g r a t i o n s kept i n check the absence o f p o l i c i e s c o n c e r n i n g the s u p p l y o f u r b a n services a n d h o u s i n g for l o w e r i n c o m e groups ( A c e v e d o ,  1956)  W h e n s o c i a l p o l i c i e s w e r e present, they f u n c t i o n e d under patronage c r i t e r i a ('regalos y favores," Acevedo,  1956). A l s o they c o u l d be attending to needy sectors as w e l l as be associated w i t h  p e n s i o n institutes, b a n k s , etc. resources,  25  percent  T h e m i s s i o n v e r i f i e d that a s i g n i f i c a n t v o l u m e  o n average, was  being  directed to  o f national  construction works  (sometimes  m o n u m e n t a l p u b l i c b u i l d i n g s ) w i t h no c o n s i d e r a t i o n o f the e m e r g i n g p r o b l e m s o f the cities.  T h e C a r t a de P u n t a D e l Este (1959), signed b y a l l L a t i n A m e r i c a n countries except C u b a , presented a c o m p l e t e a n d articulated s h o p p i n g - l i s t o f L a t i n A m e r i c a n p r o b l e m s a n d objectives, and  recommended  ways  to  transform  the  existing  underdevelopment  situation  through  m o d e r n i z a t i o n strategy. T h e d o c u m e n t listed e c o n o m i c a i m s : h o w to reduce dependence  on  i m p o r t a t i o n o f c o m m o d i t i e s , h o w to a v o i d i n f l a t i o n a n d deflation, h o w to r e a c h a substantial g r o w t h i n a n n u a l i n c o m e for inhabitants. It defined also the type a n d q u a l i t y o f  development  desired, e m p h a s i z i n g d e m o c r a t i c societies, w e l l b e i n g , a n d opportunities for e v e r y b o d y . F i n a l l y , it d e f i n e d objectives a n d a i m s for development i n terms o f e d u c a t i o n , h o u s i n g , health, n u t r i t i o n and e n v i r o n m e n t a l sanitation (Sabato, 1981).  Sabato emphasizes the central role o f the U S A i n the f o r m a t i o n a n d a c t i o n o f these agencies, he suggests there was problem,  but  had  already a c o m p r e h e n s i o n that d e v e l o p m e n t another  political  connotation,  associated  was with  not o n l y an the  economic  management  of  d i s s a t i s f a c t i o n generated b y poverty. N a t i o n a l a n d continental security questions w e r e e x t r e m e l y  51  important, i n v i e w o f the advance towards the c o m m u n i s m represented b y the C u b a n r e v o l u t i o n . A c t i o n i n this d i r e c t i o n was, e v i d e n t l y , p r e l i m i n a r y to actions o n s o c i a l a n d e c o n o m i c areas (Sabato, 1981). B u t , as disparities were m o r e significant w i t h i n the s o c i a l sphere w h e r e t e n s i o n c o u l d lead to p o l i t i c a l q u e s t i o n i n g , it was there that these institutions started to concentrate their intervention.  M e l o (1987), d i s c u s s i n g the p o l i t i c a l arena and actions shaping the u r b a n e n v i r o n m e n t , p o i n t s out that, as early as the b e g i n n i n g o f the 1960s, R i o de Janeiro G o v e r n o r C a r l o s L a c e r d a , (1960-64) h a d adopted a p o l i t i c a l strategy  o f m o b i l i z i n g p u b l i c investments  towards u r b a n  consumer  c o m m o d i t i e s , i n p a r t i c u l a r h o u s i n g . T o i m p l e m e n t h i s p o l i t i c a l goals he asked for  support  ( e c o n o m i c a n d conceptual) f r o m international institutions ( U S A I D a n d I D B ) . V e r y attuned w i t h the m i l i t a r y , L a c e r d a was  the  leader  o f the c i v i l  o p p o s i t i o n to the  Goulart  left-oriented  government. H i s a c t i o n i n R i o de Janeiro, supported b y f o r e i g n resources, w a s the first large p r o g r a m to p r o m o t e desfavelamento,  the transfer o f s l u m s to s o c i a l h o u s i n g i n the p e r i p h e r y o f  the c i t y , w i t h the objective o f n e u t r a l i z i n g a potential source o f s o c i a l tension.  It is i m p o r t a n t to c a l l attention to the d u a l action o f f i n a n c i n g agencies. P r i o r i t y is g i v e n to investment i n the p r o d u c t i o n sector, p r i n c i p a l l y agriculture a n d energy ( i n accordance w i t h the 'interests' o f d e v e l o p m e n t o f L a t i n A m e r i c a n countries). S i n c e the b e g i n n i n g , there has also been clear p o l i t i c a l p r e o c c u p a t i o n w i t h projects w i t h w i d e s o c i a l repercussion. T h e state establishes certain sectors as sole 'delegates' for the loans conceded, u s i n g the external resources for large  52  c i v i l w o r k s , o r t r a n s f o r m i n g t h e m into credit f o r the p r o d u c t i o n sector. T h i s practice persists to 7  this day, w i t h the p o l i t i c a l g a i n a l w a y s w r a p p e d i n s o c i a l a i m s .  L a t e r , h o w e v e r , because projects i n the s o c i a l sector, m a i n l y h o u s i n g a n d u r b a n d e v e l o p m e n t , d i d not represent e v e n a partial s o l u t i o n f o r the s o c i a l i n e q u a l i t y that w a s b e i n g c o n s o l i d a t e d i n the r a p i d g r o w t h L a t i n A m e r i c a n cities, they became strategically less interesting to finance. S i n c e the e n d o f the 1960s, resources have d w i n d l e d i n c r e m e n t a l l y , u n t i l b y 1978 there w e r e no l o a n resources whatsoever  f o r s o c i a l h o u s i n g o r related projects ( D o n e l s o n , 1 9 7 9 ; H a r d o y , 1 9 8 1 ;  B u r g e s s , 1982).  F u n d i n g w a s a v a i l a b l e f o r urban infrastructure (water a n d sanitation) a n d transportation. T h e s o c i a l i m p a c t o f these w a s broader, benefited m o r e people w i t h i n cities, a n d h a d a q u i c k e r f i n a n c i a l return because there w a s just one b o r r o w e r , the p u b l i c p o w e r . There w a s e v e n direct f u n d i n g f o r i n s t i t u t i o n a l re-structuring o f p u b l i c entities, i n order to direct their investments to u r b a n areas, thus l i n k i n g s o c i a l and p r o d u c t i o n investments.  8  Mantega describes the present internal re-structuring led by the Brazilian State..."after a long period of improvisation and casually oriented politics, it begins to reunite the efforts of the State apparatus towards the facilitation, in all senses, of the industrial expansion. In this sense, the BNDE appears as the principal financial agency for investment in the country, destined to make projects aiming to industrial development viable through credits, guaranty for external funding and other privileges ". An example of this orientation is the funding of water and sewer systems for Brasilia (1987) with large civil works and urban networks. An extensive system for water catchment and expansion of the pumping station, improved and expanded the existing water network, linking five cities. As complementary works, water pipes were planned for the suburbs of Ceilandia, Taguatinga, Aguas Claras and Samabaia, and the connection of 43,000 households. 7  8  53  It b e c a m e clear that the agenda o f international agencies d u r i n g the 1960s a n d 1970s  was  m o t i v a t e d m u c h m o r e b y strategic p o l i t i c a l interests than b y any structured p r o g r a m to benefit u r b a n areas or the s o c i a l sector.  I n spite o f w a r n i n g signs presented b y i n c r e a s i n g s o c i a l p r o b l e m s that threatened p o l i t i c a l stability, a n d the need to create strategies to o v e r c o m e these p r o b l e m s , the actions d i d not e x p a n d f r o m a c t i n g o n isolated p r o b l e m s . U n d e r d e v e l o p m e n t c o n d i t i o n s were expected to be o v e r c o m e b y g o v e r n m e n t efforts, p l a n n e d a c t i o n a n d f o r e i g n a i d .  F r o m the 70s, w i t h the i n c l u s i o n o f f i n a n c i n g for s o c i a l projects, the W o r l d B a n k , w i t h o u t a b a n d o n i n g its p r e v i o u s p o s i t i o n , began also to support c o n f i n e d interventions, p u t t i n g resources into e x p e r i m e n t a l projects coherent w i t h its objectives. I n general, these w e r e l o w investment projects, a i m e d to h o u s i n g , sanitation, water d i s t r i b u t i o n and u r b a n transportation. There w e r e intended to generate a "demonstration effect," an e x a m p l e to be f o l l o w e d b y l o c a l p u b l i c p o l i c i e s i n s i m i l a r countries, i n order to reduce costs a n d p u b l i c sector deficit ( W o r l d B a n k , 1991).  Subsequently, it w a s v e r i f i e d that these experiences (even i n larger scale i n t e r v e n t i o n a n d costrecovery  intervention) neither generate transformations w i t h i n the i n s t i t u t i o n a l apparatus  c h a n g e d the l o g i c o f the p u b l i c s o c i a l p o l i c i e s ( C a u l f i e l d , 1996).  nor  T h e e v a l u a t i o n o f these  experiments s h o w e d that they were too c i r c u m s c r i b e d , a n d d i d not m o b i l i z e the private sector. A t the same t i m e , w i t h the r i g i d and regulatory character o f the state, they w e r e not able to incorporate any c o m m u n i t y initiatives.  54  S o , f r o m the f i n a l years o f the 1970s, the B a n k directed its p o l i c y towards projects w i t h larger scope a n d s u p r a - l o c a l i m p a c t , w h i c h c o u l d l i n k the u r b a n m i l i e u to the n a t i o n a l setting (such as i n s t i t u t i o n a l reforms and creation o f credit systems).  T h e B a n k ' s v i s i o n o f the state's role was also c h a n g i n g . S i n c e its i n c e p t i o n the B a n k h a d b e e n p r e o c c u p i e d w i t h d i r e c t i n g the p u b l i c sector v i a the state, t h r o u g h p u b l i c p o l i c y .  I n the first p e r i o d , the State was responsible for creating the basis for i n d u s t r i a l i z a t i o n ; this role l e d it to assume investments and c o n t r o l o f sectors o f the larger infrastructure systems as w e l l as p r o d u c t i o n sectors. E x t e r n a l resources for those d i d not abate.  I n the 70s, emphasis was p l a c e d o n the state's r e s p o n s i b i l i t y for w o r s e n i n g c o n d i t i o n s faced b y the u r b a n p o p u l a t i o n due to the development m o d e l adopted. It b e c a m e important that the state acquire the capacity to intervene t h r o u g h p u b l i c p o l i c i e s . T h e " p h i l o s o p h y " u n d e r l y i n g p o l i c y b e c a m e important, and the p r i n c i p a l relationship between the B a n k and the state tended towards d e l i n e a t i n g a p o l i c y ' s "design". A t n o t i m e d i d the role left to the state reflect tendencies statism. O n the contrary, its p r i n c i p a l role i n the battle mechanisms  for  private  production  implementation o f collective  to  reach  services needed  the  against  lower  poverty  income  was  to  population,  towards generate assuming  to m a i n t a i n a certain m i n i m u m standard  for  s u r v i v a l needs. I n the 1980s, w i t h the e c o n o m i c crisis aggravated, the concept o f r a t i o n a l i z a t i o n o f g o v e r n m e n t performance became essential. T h e state was i n v i t e d to r e v i e w its attitude to the e c o n o m y a n d p u b l i c p o l i c y , l e a v i n g m o r e space for private i n i t i a t i v e .  55  F r o m analysis o f the performance o f international institutions, i n p a r t i c u l a r the W o r l d B a n k , over the years, it is p o s s i b l e to detect t w o m a i n tendencies. O n the one h a n d , investment sought to start e c o n o m i c d e v e l o p m e n t , b y d i r e c t i n g most o f the resources towards the p r o d u c t i o n sectors i n i n d u s t r y a n d agriculture. T h e c h o i c e relapsed a l w a y s i n sectors able to i n f l u e n c e development,  economic  " i n c r e a s i n g the national p r o d u c t i v i t y , m a k i n g the l a b o u r m o r e p r o d u c t i v e a n d  c a t a l y z i n g the under-used f i n a n c i a l a n d material resources"  ( N i e n t i e d , 1985). Investments  in  larger c i v i l w o r k s f a l l into this category, as w e l l as energy projects (hydroelectric p o w e r stations) and r o a d transportation w o r k s . These are a i m e d at d e v e l o p m e n t that w i l l stimulate several m a r k e t forces. T h e state has a n important role i n f i n a n c i n g , m e d i a t i n g a n d m a k i n g feasible, but not, at any t i m e , substituting the private i n i t i a t i v e and free market c o m p e t i t i o n . I n this sense, there has been a b r o a d p r e o c c u p a t i o n w i t h i n c o r p o r a t i n g sectors o f the s o - c a l l e d i n f o r m a l m a r k e t as a means to e x p a n s i o n a n d d i v e r s i f i c a t i o n . I n the case o f h o u s i n g p o l i c i e s , this aspect halts, w i t h some o f the proposals g o i n g for the i n c o r p o r a t i n g , i n the f o r m a l market, p r o d u c t i o n practices not t o t a l l y capitalist, s u c h as auto-construction (self-built).  T h e other a x i s o f investment is towards r a t i o n a l i z i n g p u b l i c sector actions. T h e p u b l i c sector has been a l w a y s seen internationally as an inflated a n d inefficient m a c h i n e , s w i n g i n g t o w a r d s statism or g i v i n g too m u c h to private interests and l e a v i n g out strategic sectors. T h i s p r e o c c u p a t i o n , present i n the 1970s, b e c o m e s the central p o i n t b y the 1980s. O n one h a n d , r a t i o n a l i z a t i o n i n some sectors is a n objective; m a n y o f the loans related to u r b a n d e v e l o p m e n t  are directed  t o w a r d s restructuring the institutional apparatus. O n the other h a n d , p u b l i c s p e n d i n g restraint is enforced  through  mechanisms  of  macro-adjustment  56  according  to  IMF  directions,  in  the  e l a b o r a t i o n o f p u b l i c p o l i c i e s to restrict the state's a c t i o n c o n c e r n i n g access a n d p r o d u c t i o n o f c o m m o d i t i e s a n d services.  T o achieve this, international institutions, consistent w i t h the n e o - l i b e r a l agenda o f the  1980s,  p r o p o s e that the state's a c t i o n be r e v i e w e d , that some o f its activities be transferred to private i n i t i a t i v e . T h e state is g i v e n the role o f facilitator o f private a c t i o n rather than p r o d u c e r o f c o m m o d i t i e s a n d services. I n relation to u r b a n p o l i c i e s , the state a p p r o a c h to h o u s i n g p o l i c y , for e x a m p l e , proposes that funds s h o u l d be g i v e n to h o u s i n g p r o d u c t i o n , c o l l e c t i n g resources f r o m private i n i t i a t i v e t h r o u g h savings and creating f i n a n c i n g systems for c o m m e r c i a l p r o d u c t i o n o f homes.  W h e n it is not p o s s i b l e to e x c l u d e the state, p u b l i c p o l i c y it is thought, s h o u l d re-direct the state's attention towards  m i n i m u m levels  o f s o c i a l services  ("poor p o l i c i e s " ) , l o w e r i n g costs a n d  standards. I n c l u d e d i n " p o o r p o l i c i e s " for h o u s i n g are the u r b a n i z e d allotments a n d alternative projects o f c o m m o n sewage n e t w o r k s , and lately, u p g r a d i n g o f e x i s t i n g s l u m s a n d  squatter  settlements. S i n c e the end o f the 80s, the W o r l d B a n k has re-directed its i n t e r v e n t i o n towards m o r e general d e v e l o p m e n t strategies for urban areas, w h i c h has generated a strong i m p a c t u p o n d e v e l o p i n g cities.  T r a n s f o r m a t i o n o f the u r b a n fabric t h r o u g h investment b y international institutions is v i s i b l e :  •  R e - s t r u c t u r i n g o f e x i s t i n g space, t h r o u g h sewage, water, r o a d , a n d transportation n e t w o r k s ; the c a n a l i z a t i o n o f streams, a n d the c o n s t r u c t i o n o f n e w p u b l i c a n d private b u i l d i n g s .  57  •  Integration into the " l e g a l " city o f spaces p r e v i o u s l y isolated f r o m c o n t r o l l i n g l a n d use a n d z o n i n g l e g i s l a t i o n , t h r o u g h u r b a n i z a t i o n o f favelas a n d de-regulation a n d r e v i s i o n o f u r b a n codes a n d l a w s .  •  I n c o r p o r a t i o n o f n e w areas into the u r b a n fabric t h r o u g h e x p a n s i o n projects, as u r b a n i z e d allotments a n d services networks extend into p e r i p h e r y areas.  •  Increased offers o f h o u s i n g a n d l o w - c o s t service units, t h r o u g h i m p l e m e n t a t i o n o f f i n a n c i n g systems, c o n s t r u c t i o n o f h o u s i n g units and c o l l e c t i v e equipment.  O b j e c t i v e l y , project f i n a n c i n g has made international institutions m a j o r agents i n the u r b a n scenario o f d e v e l o p i n g cities. T h e y have p r o v i d e d not o n l y the f i n a n c i a l basis o f the p h y s i c a l t r a n s f o r m a t i o n o f the cities, but they have also been a huge influence o n the rules that d e f i n e d these transformations.  W i t h the d e v e l o p m e n t o f larger cities into megacities, the size o f u r b a n r e c o v e r y p r o g r a m s has increased e n o r m o u s l y , m a k i n g the institutions a partner w i t h w h o m d e v e l o p i n g cities w i l l be d e a l i n g w e l l into the next century.  W h e t h e r this w i l l be efficient and satisfactory remains to be seen. It s h o u l d be r e m e m b e r e d that the W o r l d B a n k was created w i t h a b u i l t - i n contempt for l o c a l k n o w l e d g e , a n d this has been a l i n g e r i n g t r a d i t i o n . E u g e n e B l a c k , one o f the m o s t i n f l u e n t i a l B a n k directors ( 1 9 4 9 - 1 9 6 2 ) w a r n e d that m o s t p e o p l e i n d e v e l o p i n g countries w o u l d not want to  '... abandon old habits and attitudes, and work in favor of new ones .. The apostles of a new life... are the minority, typically those whose close contact with Western education, political  58  thought and living  standards has led them to want greater opportunities to practice their knowledge, greater outlets for their ambition, and a better material lot for their countrymen" (Black 1963,).  J . M . K e y n e s , the B a n k founder, said about the c o m m o n m a n : "It is m o s t dangerous that the p e o p l e s h o u l d , under n o r m a l c o n d i t i o n s , be i n a p o s i t i o n to p u t into effect their transient w i l l a n d their u n c e r t a i n j u d g m e n t o n every question o f p o l i c y that occurs"...( as cited i n A d a m s , P . , 1 9 9 1 , W h i l e this approach m i g h t have been generally c i r c u m v e n t e d i n m o s t o f h i s  Odious  Debt).  works,  it b e c a m e extremely  dangerous  w h e n the " c o m m o n m e n " w e r e c o m i n g  f r o m the  d e v e l o p i n g w o r l d . T h e B a n k ' s agenda a n d rhetoric is clearly d i s d a i n f u l o f inputs o r i g i n a t i n g f r o m recipient countries.  T h e B a n k ' s m i s s i o n since its creation w a s to promote i n b o r r o w e r nations d e v e l o p m e n t d e f i n e d as an increase i n G N P ( M a s o n , 1973). T h i s is not to deny, t h o u g h , that i m p r o v e m e n t s i n l o w i n c o m e n e i g h b o r h o o d s w e r e a c h i e v e d due to sanitation w o r k s p r o m o t e d w i t h B a n k ' s loans. B u t it is n o t also s u r p r i s i n g C a u f i e l d c o m m e n t s :  "The past half-century of development has not profited the poorest people, nor the poorest  countries.  Rather they have paid dearly - and their descendants will continue to pay dearly - for the disproportionately foreign-dominated  small benefits they have received. Development in the monopolistic, arrogant and failedform  formulaic,  that we have known is largely a matter ofpoor people in  rich countries giving money to rich people in poor countries" (Caufield, 1996)  T h e e v o l u t i o n o f the B a n k ' s l e n d i n g p o l i c y a n d approach to projects suggests that its preference has been, f o r m u c h o f the last decades, to f u n d large infrastructure projects, w i t h i n the c o n t i n u o u s pursuit o f d e v e l o p m e n t anchored i n i n d u s t r i a l i z a t i o n . T h e B a n k has b e l i e v e d , f o r a l o n g t i m e , that  59  m o d e r n infrastructure represents  the most reliable and s o l i d f o u n d a t i o n for a l l  economic  development.  T h e r e are, h o w e v e r , a n u m b e r o f i n d i c a t i o n s o f i n n o v a t i o n w i t h i n the B a n k . T h e r e are n e w p o l i c y g u i d e l i n e s , a n d m o r e s o c i a l l y oriented staff have been i n c o r p o r a t e d ( K a r d a m , 1994).  Cernea  (1990) a n d other B a n k s o c i a l scientists have stated that even t h o u g h the s o c i a l d i f f i c u l t i e s e n c o u n t e r e d i n m a n y B a n k ' s projects have not t o t a l l y disappeared, strategies h a v e i m p r o v e d a n d m o r e resources are b e i n g channeled towards solutions o f c r i t i c a l a n d c o m p l e x s o c i a l issues, i n broader B a n k p o l i c i e s a n d P r o g r a m s .  C e r t a i n l y , the B a n k ' s p o l i c y has changed t h r o u g h the years. T h e question to be p o s e d is whether these changes  signify  a new  understanding o f d e v e l o p m e n t  processes  countries' perspectives, or are s i m p l y adaptations to the n e w g l o b a l order.  60  within  developing  CHAPTER 3 SAO PAULO METROPOLIS "One can never confound a city with the discourse  that describes it. "  (Marco Polo, talking about cities to Ching Emperor in Italo Calvino Invisible Cities)  INTRODUCTION T h i s chapter addresses relevant h i s t o r i c aspects o f the f o r m a t i o n o f Sao P a u l o . P o l i t i c a l a n d s o c i a l h i s t o r i c a l roots are considered as context to the f o r m a t i o n a n d g r o w t h o f Greater  Sao  P a u l o . Sao P a u l o is p o s i t i o n e d i n the context o f changes i n the international a n d n a t i o n a l e c o n o m i c scenario, i n its role as the p r i n c i p a l B r a z i l i a n m e t r o p o l i s a n d m a i n i n d u s t r i a l p o l e . Sao P a u l o ' s e v o l u t i o n has been t i e d into B r a z i l i a n development,  a n d constitutes  the  necessary  b a c k g r o u n d to answer the question o f h o w B r a z i l ' s place i n the g l o b a l i z e d e c o n o m y , w i t h Sao P a u l o as its i n d u s t r i a l engine, affected this c i t y ' s m e t r o p o l i t a n i z a t i o n process.  B a c k g r o u n d i n f o r m a t i o n is to s h o w the significant p r i c e extracted f r o m residents' q u a l i t y o f l i f e i n order to sustain Sao P a u l o ' s p o s i t i o n i n the w o r l d e c o n o m y . T h e e c o n o m i c g r o w t h m o d e l adopted  has  accentuated  social  inequity  and  unleashed  implications  beyond  the  built  environment.  T h e increased s k e w e d w e a l t h d i s t r i b u t i o n a n d the reinforcement o f the g r o w i n g s o c i a l i n e q u a l i t y i n terms o f race and gender are also results o f the S P M A t r a n s f o r m a t i o n a n d contribute to e n v i r o n m e n t degradation. T h e p r i c e p a i d b y society as a w h o l e has been s i g n i f i c a n t , e s p e c i a l l y i n terms o f s o c i a l safety a n d i n c r e a s i n g degradation o f the u r b a n e n v i r o n m e n t . H o w e v e r ,  61  the  negative i m p a c t o f i n d u s t r i a l i z a t i o n o f the S P M A and the e c o n o m i c d e v e l o p m e n t  mentality  s p o n s o r e d f o r the B r a z i l i a n m i l i t a r y (and d o m i n a n t elite) has been borne m o s t l y b y the u r b a n p o o r . T h e y are the ones squatting, l i v i n g surrounded b y p o l l u t i o n a n d h a v i n g d i s m a l l a b o u r prospects.  T h e W B has been a k e y p l a y e r i n the S P M A . T h e B a n k gives its b l e s s i n g a n d f u l l support to a group  of  policy-makers  entrusted  with  translating p o l i c i e s  into  strategies  tuned  to  the  o r g a n i z a t i o n ' s rhetoric. These strategies l a r g e l y o v e r l o o k the r e l a t i o n b e t w e e n o p p o r t u n i t y a n d need, a n d s e l d o m c o n s i d e r c o m m u n i t i e s ' voices. M a n y o f the p o l i c i e s advocated b y the W B a n d the I M F ( p a r t i c u l a r l y since the early eighties) have been directed towards attaining  greater  i n t e r n a t i o n a l i z a t i o n o f the e c o n o m y . I n B r a z i l , the e c o n o m i c a n d i n s t i t u t i o n a l reforms have f o c u s e d m o s t l y o n deregulating specific sectors, i n order to increase cross-border transactions and direct f o r e i g n investment i n m a n u f a c t u r i n g or f i n a n c i a l operations.  T h e S P M A , as the m a i n B r a z i l i a n e c o n o m i c center, has reacted i n t w o w a y s to broader i n c l u s i o n i n i n t e r n a t i o n a l trade a n d business patterns. It has d e v e l o p e d a d v a n c e d services a n d f i n a n c i a l activities  (the  largest  Stock  M a r k e t and Commodities Exchange  in Latin  America)  and  sophisticated s h o p p i n g a n d leisure places (Schiffer, 1998). U n f o r t u n a t e l y , a c o n c u r r e n t set o f negative side effects has arisen: u r b a n v i o l e n c e , m a r g i n a l i t y , a n d i n c r e a s i n g n u m b e r o f h o m e l e s s , a l o n g w i t h a l a r m i n g l e v e l o f e n v i r o n m e n t a l degradation.  T h e major u r b a n i m p a c t o f the S P M A transformation has been greater g e n t r i f i c a t i o n , w i t h areas d e v o t e d to international-capital-associated activities r e c e i v i n g m o r e investment, either p r i v a t e (as  62  i n up-scale condos a n d b u i l d i n g s i n l i n e w i t h international standards) or p u b l i c (as i n a d v a n c e d services p r o v i s i o n a n d infrastructure n e t w o r k s , e s p e c i a l l y tunnels a n d n e w roads). T h e s e changes p r i v i l e g e a s m a l l sector o f the p o p u l a t i o n , a n d have m a n y times depended o n international financing.  The  investments  have  largely  ignored  areas where  most  o f the  population  is  concentrated, either i n the periphery or i n l o w - i n c o m e and d e c a y i n g n e i g h b o r h o o d s .  T h e m a i n challenge to the S P M A is to sustain its centrality to the B r a z i l i a n e c o n o m y  while  attaining a m o r e equitable q u a l i t y o f l i f e between the elite a n d the poor. Instead o f concentrating investment  o n l y i n global-market-oriented  activities that benefit  a s m a l l p r o p o r t i o n o f the  p o p u l a t i o n (the f o r m a l c i t y ) , p r i o r i t y s h o u l d be g i v e n to the w h o l e  q u a l i t y o f the  urban  e n v i r o n m e n t , a n d to m e e t i n g the needs o f l o w - i n c o m e p o p u l a t i o n ( i n f o r m a l c i t y ) . T h u s , m a j o r reorientations o f u r b a n d e v e l o p m e n t projects is necessary, i n order to address a v e r y v i s i b l e , but s t i l l m o s t l y i g n o r e d , u r b a n s o c i a l inequality.  BRAZIL: URBAN AND ECONOMIC D E V E L OPME N T In spite o f h a v i n g a c i t y n e t w o r k i n c o m p a r a b l y m o r e c o m p l e x than the ones to be f o u n d i n other L a t i n A m e r i c a n countries, B r a z i l ' s p o p u l a t i o n is concentrated i n the Southeast r e g i o n . Sao P a u l o , e s p e c i a l l y , has g r o w n d r a m a t i c a l l y i n the 2 0 power  relationships a n d defined  th  century. Processes that shaped B r a z i l i a n p o l i t i c a l  its e c o n o m i c  configuration.  63  path also  d e t e r m i n e d this p a r t i c u l a r  urban  B r a z i l ' s e c o n o m i c d i r e c t i o n after the W W II became totally p o l a r i z e d . T h e n a t i o n b e g a n to o p e n its e c o n o m y to f o r e i g n investment as its o l d i n w a r d - o r i e n t e d g r o w t h m o d e l b e c a m e  exhausted.  Imports c o n t i n u e d to rise, but the export sector w a s not able to d e v e l o p s u f f i c i e n t l y to p a y for t h e m . T h e i d e a o f independent national development  through l o c a l l y o w n e d i n d u s t r i a l i z a t i o n  g r a d u a l l y faded f r o m the r u l i n g elite's aspiration ( D a M o t t a , 1992).  D e v e l o p m e n t a l i s m replaced N a t i o n a l i s m and agreements were m a d e w i t h f o r e i g n c a p i t a l to d e v e l o p the car industry, c h e m i c a l plants, heavy and light engineering and other sectors). growth  The  at any cost p h i l o s o p h y pushed the e c o n o m y to unprecedented levels. H o w e v e r , a n e w  ' a r m y ' w a s b e i n g f o r m e d : an increasing mass o f u n - and u n d e r - e m p l o y e d p e o p l e w e r e not at a l l , or o n l y p a r t i a l l y integrated as p r o d u c t i v e labour into the ' m o d e r n ' sector ( G e l b e r ,  1992)  T h e f l o w o f people into the c i t y , seeking w o r k and i n c o m e was also a result o f the m o d e r n i z a t i o n o f agriculture. T h e declared g o a l o f increasing f o o d p r o d u c t i o n b y m o d e r n i z a t i o n and  the  destruction o f s m a l l subsistence f a r m i n g , w i p e d out the t r a d i t i o n a l modest basis o f s u r v i v a l for large sections o f the r u r a l p o p u l a t i o n , p r o v o k i n g a huge m i g r a t i o n o f the landless to already o v e r c r o w d e d p o o r u r b a n areas (Sorj, 1980; G r a z i a n o d a S i l v a , 1978).  A f t e r the W W II, the B r a z i l i a n e c o n o m y g r e w m o r e than 6 percent a n n u a l l y , t w i c e as fast as the population. The  growth  process that has taken place  o c c u p a t i o n a l and e c o n o m i c  has  completely  changed  the  structure o f the country. It was i n this scenario that Sao  b e c a m e the i n d u s t r i a l f u l c r u m o f the d e v e l o p m e n t a l e c o n o m i c m o d e l .  64  urban, Paulo  B r a z i l ' s G r o s s N a t i o n a l P r o d u c t ( G N P ) , estimated at U S $ 651 b i l l i o n i n 1997 ( S c h i f f e r , 1998), is the largest i n L a t i n A m e r i c a . H o w e v e r , due to the c o u n t r y ' s p o l i t i c a l , s o c i a l a n d e c o n o m i c patterns, this w e a l t h is distributed u n e v e n l y a m o n g e c o n o m i c sectors, r e g i o n s , u r b a n a n d rural areas a n d , quite c l e a r l y , a m o n g households. I n 1983, the w e a l t h i e r 2 0 percent o f h o u s e h o l d s retained 62.6 percent o f the G N P , w h i l e the poorest 2 0 percent shared 2.4 percent ( W o r l d B a n k , 1991).  In recent decades, the m o d e l o f d e v e l o p m e n t international  recession,  external  and  g r o w t h adopted b y the federal  internal i n f l a t i o n , strong  dependence  government,  on petrol  and  e s p e c i a l l y the g r o w i n g f o r e i g n debt have increased the gap between r i c h a n d p o o r , h i t t i n g the u r b a n d w e l l e r most severely.  SAO PAULO: GROWTH AND GLOBALIZATION Sao P a u l o is the m a i n B r a z i l i a n e c o n o m i c center. Its t r a n s f o r m a t i o n into a w o r l d c i t y has s i g n i f i e d a broader i n c l u s i o n i n the international trade a n d business patterns, w i t h h i g h l y a d v a n c e d f i n a n c i a l a n d services activities. H o w e v e r , changes i n the w o r l d e c o n o m i c order h a v e been affecting  i n c r e a s i n g l y the s o c i a l , e c o n o m i c , a n d i n d u s t r i a l e n v i r o n m e n t o f the r e g i o n ,  altering labor relations a n d sustainable e c o n o m i c g r o w t h perspectives.  I n recent years an ever-increasing share o f W e s t e r n investment has been f l o w i n g a w a y f r o m B r a z i l , a n d into other T h i r d W o r l d countries. T h e a c c o m p a n y i n g i n d u s t r i a l r e l o c a t i o n has caused a r e d u c t i o n i n real w a g e s a n d l i m i t e d i m p r o v e m e n t o f l i v i n g standards, e s p e c i a l l y for the l o w -  65  i n c o m e strata. C o m b i n e d w i t h accelerated u r b a n i z a t i o n due to i n - m i g r a t i o n , r e d u c e d i n d u s t r i a l j o b creation has been responsible for l i m i t i n g expectations o f w i d e s p r e a d i n c o m e i m p r o v e m e n t a n d i n c r e a s i n g e n v i r o n m e n t degradation.  L a r g e cities i n d e v e l o p i n g countries are b e i n g reshaped as potential w o r l d cities, as n a t i o n a l economies  o p e n up to v i r t u a l l y unmediated g l o b a l market forces, a n d external interactions  b e c o m e m u c h m o r e important. A c c o r d i n g to F r i e d m a n n (1986), the w o r l d c i t y concept expresses spatial o r g a n i z a t i o n o f the n e w international d i v i s i o n o f labour. A s  s u c h , it concerns  the  c o n t r a d i c t o r y relations between p r o d u c t i o n i n the era o f g l o b a l management, a n d the p o l i t i c a l d e t e r m i n a t i o n o f territorial interests. T h e f o r m o f large cities is no longer seen as a f i x e d l o c a t i o n for the p r o d u c t i o n o f g o o d s a n d services, as it w a s i n the past, but rather as a set o f j u n c t i o n s i n f l o w s , an i n t e r - m o d a l transfer and c o n t r o l p o i n t i n the m o v e m e n t o f p e o p l e , goods, finance a n d information.  T h e sources a n d destinations o f the f l o w s are frequently b e y o n d the authority a n d e v e n the k n o w l e d g e o f governments. T h e y are also subject to unpredictable fluctuations, so that c i t y management  needs to be b o t h c o m p l e t e l y  reliable and f l e x i b l e ( H a r r i s ,  m a n u f a c t u r e d goods, the p o s t i n d u s t r i a l m e t r o p o l i s / w o r l d c i t y m a k e s  1994).  a n d deals  Instead  of  i n financial  products for a g l o b a l marketplace. T h e greatest cities o f the m o d e r n w o r l d c a n be seen f r o m outside as nodes i n the g l o b a l marketplace, a n d f r o m w i t h i n as u r b a n c o m m u n i t i e s a n d l a b o r markets (Sassen, 1991).  66  T h e emergence o f a f u l l y integrated w o r l d m a n u f a c t u r i n g s y s t e m i m p l i e s that an i n c r e a s i n g p r o p o r t i o n o f the w o r l d ' s output w i l l be c o n s u m e d far f r o m where it w a s p r o d u c e d . T h i s w i l l c o n t i n u e p o s s i b l y to accelerate the post-1950 trend for international trade to e x p a n d faster than p r o d u c t i o n . T h e f i n a l output increasingly b e c o m e s no m o r e than the a s s e m b l y o f inputs m a d e i n m a n y countries. S l o w e r w o r l d g r o w t h rates and recessions have not r e d u c e d this trend, n o r the i n c r e a s i n g dependence o f d e v e l o p e d countries u p o n supplies for m a n u f a c t u r e d g o o d s f r o m the d e v e l o p i n g countries ( F r i e d m a n n , 1986).  In her d i s c u s s i o n o f s o c i a l and e c o n o m i c impacts o f g l o b a l i z a t i o n , Sassen states that the n e w l y emergent f i n a n c i a l services c o m p l e x e s are d e s t a b i l i z i n g their host cities d o m e s t i c a l l y oriented sectors, p u s h i n g f i r m s i n l o w profit sectors into the n e t h e r w o r l d o f the i n f o r m a l sector, a n d accentuating s o c i a l p o l a r i z a t i o n o f r i c h and p o o r (Sassen, 1994). A restructuring o f u r b a n l a b o r m a r k e t is t a k i n g place. There is a general shift towards casual a n d l o w w a g e w o r k or no w o r k at a l l . She stresses that w o r l d c i t y status is l e a d i n g to the b i p o l a r i z a t i o n o f the labor m a r k e t that ensues f r o m an e c o n o m y based o n advanced services. T h e b u r g e o n i n g i n f o r m a l e c o n o m y  in  g l o b a l cities arises not o n l y the consequence o f an i n f l u x o f m i g r a n t s , but also f r o m the character o f p r o d u c t i o n a n d d e m a n d w i t h i n the service-based  urban e c o n o m y ,  o u t l i n i n g the p o t e n t i a l  sources o f i n s t a b i l i t y i n present arrangements. P o l i t i c a l economists s t i l l tend to stress e c o n o m i c health, a n d l o c a t i o n choices o f m a n u f a c t u r i n g as the u n d e r l y i n g causes o f l o c a l p r o s p e r i t y , a b e l i e f that cannot be sustained.  67  Locality T h e Sao P a u l o M e t r o p o l i t a n A r e a ( S P M A ) is one o f the w o r l d ' s largest u r b a n a g g l o m e r a t i o n s , and it is the m o s t u r b a n i z e d , i n d u s t r i a l i z e d a n d affluent m u n i c i p a l i t i e s (see F i g u r e 3.1),  c i t y i n B r a z i l . It consists o f  w i t h Sao P a u l o C i t y ( S P C ) b e i n g the largest.  The  registered an average annual g r o w t h rate nearly 5 per cent f r o m the 1960s u n t i l the  39  region 1980s  ( M a r t i n e , 1992). I n the last t w o decades, g r o w t h has s l o w e d to 1.5 percent i n the c i t y o f Sao P a u l o a n d to 3.5 percent i n the p e r i p h e r y ( L e i t m a n n , 1992). T h i s is the result o f a c o n v e r g e n c e o f factors s u c h as the e c o n o m i c c r i s i s p r o v o k e d b y the O P E C o i l rises, the n a t i o n ' s f o r e i g n debt, the d e v e l o p m e n t o f other n a t i o n a l e c o n o m i c poles, a n d increased l a n d prices i n the m a i n i n d u s t r i a l centres.  68  5  Limit of sub-region Municipal Limit  kilometres  20  1. 2. 3. 4. 5. G. 7. 3. 9.  10 Itapevi 11 Jandira 12 Taboao da Serra 13 Itapecirica da Serra 14. Ernbu 15. Ernbu-Guacu 1G Juqurtiba 17 Sao Lourenco da Serra 13 Santo Andre 19 S. B. do Gampo 20 S. G. do Sul 21 Maua 22 Diadema 23 Ribeirao Pires 24 Rio Grande da Serra  Sao Paulo Osasco Garapicuiba Barueri Cajamar Santana de Pamaiba Pirapora do Born Jesus Cotia Vargern Grande Paulista  25 2G 27 28 29 30 31 32 33 34 35 3G 37 3S 39  Mogi das Cruzes Susano Poa ttaquaquecetuba Ferraz de Vasconcelos Guararerna Salesopolis Biritiba Mirim Guarulhos Aruja Santa Isabel Franco da Rjocha Mairipora Caieiras Francisco Morato  Figure 3.1 — Metropolitan region of Sao Paulo: administrative divisions Source: EMPLASA, 1997  T h e S P M A p o p u l a t i o n is projected to reach 24 m i l l i o n b y the year 2 0 0 0 . T h i s w i l l m a k e i t the s e c o n d largest c i t y i n the w o r l d ( L e i t m a n n , 1992). I n 1982 the S P M A ' s p e r c a p i t a i n c o m e w a s a p p r o x i m a t e l y U S $ 4 , 0 0 0 , one o f the highest a m o n g T h i r d W o r l d m e t r o p o l i t a n areas. H o w e v e r , at the same t i m e , nearly 3 0 percent o f its labour force w a s earning salaries o f less than U S $ 2 , 0 0 0 a year, l i v i n g i n e x t r e m e l y p o o r c o n d i t i o n s , a n d l a c k i n g the m o s t basic u r b a n infrastructure ( E d e l , 1989). T h i s picture has not i m p r o v e d v e r y m u c h i n the last decade, a n d the eventual d i m i n i s h i n g  69  influx  o f m i g r a n t s has not been a c c o m p a n i e d b y i m p r o v e m e n t o f u r b a n c o n d i t i o n s , as  a  s i g n i f i c a n t n u m b e r o f the residents s t i l l l i v e b e l o w the p o v e r t y l i n e .  T h e S P M A is the center o f the B r a z i l i a n e c o n o m y , the largest i n d u s t r i a l p o l e i n L a t i n A m e r i c a . W i t h 12 percent o f B r a z i l ' s p o p u l a t i o n , the S P M A accounts for about 18 percent o f the gross d o m e s t i c p r o d u c t , 31 percent o f the i n d u s t r i a l domestic product, a n d 25 percent o f the i n d u s t r i a l l a b o u r force ( L e i t m a n n , 1992/Sao  P a u l o State G o v e r n m e n t , 1990). I n d u s t r i a l i z a t i o n a n d the  process that has t r a n s f o r m e d Sao P a u l o into a huge m e t r o p o l i s reflect the effects o f g l o b a l i z a t i o n i n d e v e l o p i n g countries m a i n cities.  T h e S P M A has been the m a i n e c o n o m i c center o f the B r a z i l i a n e c o n o m y since coffee p r o d u c t i o n w a s i n t r o d u c e d i n the state, i n the last quarter o f the 1 9  t h  century. T h e w o r l d coffee glut i n the  first decades o f this century channeled coffee p r o d u c t i o n profits to the m a n u f a c t u r i n g industry., Foreign  c a p i t a l injections  i n the  automobile  industry between  1955-60  gave  Sao  Paulo  i n d u s t r i a l i z a t i o n further m o m e n t u m , p u s h i n g m a n u f a c t u r i n g to 4 2 percent o f n a t i o n a l output i n 1970 (Schiffer, 1998)  Sao P a u l o lies i n the southeast o f B r a z i l , s i x t y k i l o m e t e r s f r o m the A t l a n t i c coast. T h e c i t y is the central p o i n t i n the n a r r o w belt o f r e g i o n a l u r b a n i z a t i o n a n d concentrated p o p u l a t i o n that stretches n e a r l y t w o thousand k i l o m e t e r s N o r t h a n d S o u t h a l o n g the coast (see F i g u r e 3.2). S o i l q u a l i t y , c l i m a t e , topography,  r a i n f a l l a n d access to coastal p o i n t s have  favored  economic  d e v e l o p m e n t a n d u r b a n g r o w t h w i t h i n this zone, p a r t i c u l a r l y i n the r e g i o n s u r r o u n d i n g Sao Paulo.  70  Inhabitants / km' '•'•<] less than iOOto j.00  |  j J.ttl to 2J.00 ™  lrTT  2J.01 to 100.00 more than  100.00  F i g u r e 3.2 — B r a z i l : P o p u l a t i o n Density Source: IBGE/IPT 1995  T h e B i l l i n g s a n d G u a r a p i r a n g a R e s e r v o i r s are extensive a r t i f i c i a l lakes that w e r e created for water s u p p l y . T h e y t o o k advantage o f the sharp drop i n e l e v a t i o n to p r o d u c e the p o w e r necessary for i n i t i a l i n d u s t r i a l i z a t i o n i n the 1920s. T h e remains o f the o r i g i n a l r a i n forest k n o w n as M a t a A t l a n t i c a s t i l l covers the m o s t inaccessible parts o f the coastal escarpments. Its p r e s e r v a t i o n  71  constitutes  one o f the major challenges  f a c i n g any attempt to m i n i m i z e the  environmental  consequences u n c o n t r o l l e d urban g r o w t h ( A g e n d a 21 L o c a l , 1996).  T h e Tiete, P i n h e i r o s a n d T a m a n d u a t e i R i v e r s are the m a i n w a t e r w a y s c r o s s i n g the S P M A . T h e c i t y g r e w o c c u p y i n g the r e l a t i v e l y o p e n a n d flat v a l l e y s , l o w m o u n t a i n crests a n d s u r r o u n d i n g h i l l s , t h r o u g h the i n c o r p o r a t i o n o f hundreds o f s m a l l s u b d i v i s i o n s , w i t h o u t c o o r d i n a t i o n between t h e m except for the m a i n routes f o l l o w i n g the ridge lines.  Sao P a u l o w a s f o u n d e d i n 1554. B y 1874 its p o p u l a t i o n w a s o n l y 2 4 , 0 0 0 inhabitants; t w e n t y - s i x years later, at the t u r n o f the century, the c i t y h a d g r o w n t e n f o l d . I n 1940 Sao P a u l o h a d 1,500,000 inhabitants (see  F i g u r e 3.3)  and since then its d o m i n a n t role i n the  country's  u r b a n i z a t i o n has been clearly established.  F r o m a n i n i t i a l u r b a n core a r o u n d a Jesuit c o m p o u n d , Sao P a u l o e x p a n d e d to  incorporate  s u r r o u n d i n g s m a l l v i l l a g e s l i n k e d b y m a i n w a t e r w a y s a n d other transportation c o r r i d o r s . U n l i k e m a n y m e t r o p o l i t a n areas that have g r o w n f r o m pressures o n and w i t h i n the central core, Sao P a u l o g r e w f r o m the gradual integration o f settlements at the p e r i p h e r y , f o r m i n g a c o n u r b a t i o n . A n u n o r g a n i z e d pattern o f streets and discontinuous d e v e l o p m e n t generated b y u n c o n t r o l l e d s u b d i v i s i o n o f f a r m l a n d were the m a i n characteristics o f the i n i t i a l u r b a n d e v e l o p m e n t o f the c i t y ( V i o l i c h , 1987).  L a t e r settlement f o l l o w e d a m o r e consistent pattern o f streets w i t h i n a standard g r i d system, p a r a l l e l a n d p e r p e n d i c u l a r to the slopes to facilitate drainage, but w i t h no i n t e r c o n n e c t i o n . T h e m a j o r transportation routes f o l l o w e d ridgelines and v a l l e y bottoms.  72  F i g u r e 3.3 — U r b a n i z a t i o n Process i n Sao P a u l o Source: Violich, 1987  T h e w e l l - d e f i n e d inner core is o c c u p i e d w i t h high-density residences s h o p p i n g f a c i l i t i e s , p u b l i c b u i l d i n g s , a n d the p r i n c i p a l business  (skyscrapers),  offices.  primary  T h e i n d u s t r i a l belt  i n i t i a l l y stood close to the inner core, but later was extended a l o n g the v a l l e y s o f the T i e t e , Tamanduatei  a n d P i n h e i r o s R i v e r s , served  by  r a i l lines. L a t e r , large-scale  industries  and  manufacturers tended to locate themselves farther f r o m the central area, t o w a r d s m a j o r routes l e a d i n g to the port o f Santos (Sao B e r n a r d o do C a m p o , Santo A n d r e , Sao C a e t a n o ,  etc.),  n o r t h w a r d a l o n g the P a r a i b a V a l l e y , ( G u a r u l h o s , P o a , etc.) a n d recently to the west t o w a r d s the  73  h i n t e r l a n d o f the state ( J u n d i a i , C a m p i n a s , etc.). L i g h t industry, h o w e v e r , c a n be f o u n d spread between  l o w e r - i n c o m e residential a n d c o m m e r c i a l areas throughout the S P M A .  Clusters  of  affluent n e i g h b o r h o o d s , c o m m u n i t y facilities, large c o m m e r c i a l developments a n d sophisticated office c o m p l e x e s  as w e l l as major retailers a n d s h o p p i n g centers are scattered t h r o u g h this  intricate u r b a n fabric ( V i o l i c h , 1987).  T h r e e groups o f interrelated factors have contributed to the t r a n s f o r m a t i o n o f this i n l a n d , elevated u r b a n site, into a gigantic m e t r o p o l i s . First, it was the temperate c l i m a t e , favorable site a n d transportation l i n k a g e s that h e l p e d the city. T h e second factor to affect Sao P a u l o g r o w t h w a s the coffee b o o m that created capital for industry a n d attracted f o r e i g n i m m i g r a n t s . T h i r d l y , it w a s the c o m b i n a t i o n between i n d u s t r i a l i z a t i o n (facilitated b y i m m i g r a n t w o r k e r s a n d entrepreneurs), the a v a i l a b i l i t y o f r a w m a t e r i a l a n d h y d r o e l e c t r i c p o w e r , and a r e g i o n a l market for manufactures that t r a n s f o r m e d the c i t y into a m e t r o p o l i s ( R a b i n o v i t z , 1971).  W i t h i n the n a t i o n a l arena, the c i t y is the urban result o f a process  o f three m a i n n a t i o n a l  d e v e l o p m e n t c y c l e s o v e r the last h u n d r e d years. T h e coffee export sector i n Sao P a u l o state e x p a n d e d d u r i n g the last decades o f the 19  th  century a n d first decades o f the 2 0  o f an i n d u s t r i a l area to support the e x p a n d i n g coffee e c o n o m y  th  century. G r o w t h  c o m b i n e d w i t h the  city's  advantageous l o c a t i o n m a k e it an important i m p o r t - e x p o r t c o m m e r c i a l center. A l s o , g r o w i n g w a v e s o f E u r o p e a n i m m i g r a n t s gave Sao P a u l o a d i v e r s i f i e d p o o l o f s k i l l e d l a b o u r for its g r o w i n g industries.  74  T h e s e c o n d c y c l e , d e f i n e d b y c o n s u m e r - g o o d s i m p o r t - s u b s t i t u t i o n i n d u s t r i a l i z a t i o n , started i n the 1920s. T h e p r o x i m i t y o f a g r o w i n g internal market created b y the coffee e c o n o m y g a v e i m p u l s e to the c i t y . A v a i l a b i l i t y o f h y d r o e l e c t r i c energy and g o o d transportation c o n n e c t i o n s w i t h the interior o f the state were a d d i t i o n a l benefits.  A t h i r d phase t o o k place after W W II, a n d e s p e c i a l l y after the 1950s. E c o n o m i c g r o w t h w a s l e d b y e x p a n s i o n o f c a p i t a l a n d durable c o n s u m e r goods i n d u s t r i a l sectors. T h e S P M A b e c a m e the spatial  focus  developmentalist  of  changes  i n the  structural o u t l o o k  o f the  country  within  the  Brazilian  agenda. T o d a y , 75 percent o f B r a z i l i a n s l i v e i n cities. T h e m i g r a n t f l o w s have  been d e c i s i v e i n the area's g r o w t h , as s h o w n i n F i g u r e 3.4. T h e r o l e o f these f l o w s has b e e n f u n d a m e n t a l i n the d e m o g r a p h i c g r o w t h process o f the m e t r o p o l i t a n area, p a r t i c u l a r l y i n Sao P a u l o , r e i n f o r c i n g the h i g h l y concentrated d e v e l o p m e n t i n the S P M A r e g i o n .  T h i s g r o w t h c a m e to a halt i n the late 1970s. C o m p a r e d w i t h early post-war g r o w t h , the 1980s have c o m e to be k n o w n as "the lost decade". T h e B r a z i l i a n e c o n o m y suffered serious d e c l i n e after decades o f r e l a t i v e l y h i g h e c o n o m i c g r o w t h .  E x t e n s i v e b o r r o w i n g f r o m private banks i n the mid-seventies to m a i n t a i n the l e v e l s o f o i l i m p o r t a t i o n at a v e r y e x p e n s i v e p r i c e conversed w i t h a sudden rise i n international interest rates to u n e x p e c t e d l y increase i n B r a z i l ' s debt. A t the same t i m e , B r a z i l ' s a b i l i t y to p a y o f f the debt d e c l i n e d because o f the g l o b a l recession and the associated deterioration i n terms o f trade for B r a z i l i a n exports ( W o o d , 1988).  75  F i g u r e 3.4 — M i g r a t i o n F l o w s 1950-1980 Source: IBGE/IPT, 1995  C o n s e q u e n t l y , B r a z i l experienced an e c o n o m i c crisis o f unprecedented p r o p o r t i o n s . T h e p o o r , e s p e c i a l l y i n the S P M A , were hit hardest. F r e e z i n g o f per capita i n c o m e , i n f l a t i o n , r e c e s s i o n a n d r i s i n g u n e m p l o y m e n t brought about an i m p o v e r i s h m e n t o f the c i t y . S l u m areas (favelas) tenement houses (cortigos)  and  m u l t i p l i e d , spreading pockets o f s o c i a l a n d u r b a n p o v e r t y a n d r a p i d l y  o c c u p y i n g s u b u r b a n areas.  76  I n 1973, about one percent o f the p o p u l a t i o n was l i v i n g i n s l u m areas, but b y 1991 m o r e than 8 percent o f the p o p u l a t i o n w a s i n s t a l l e d i n m o r e than 7 0 0 favelas  (Secretaria d a H a b i t a c a o e  D e s e n v o l v i m e n t o U r b a n o P M S P , 1991). R e c e n t i n f l a t i o n c o n t r o l has brought little i m p r o v e m e n t for the m i l l i o n s offavela a n d squatter d w e l l e r s , because the f r a m e w o r k o f e n d e m i c u r b a n p o v e r t y has not changed. Jobs, schools, a n d hospitals are insufficient a n d basic infrastructure services (water, sewage, transportation, etc.) are neglected, deteriorated or non-existent.  The Global Connection S i n c e the end o f W W II, g r o w i n g decentralization o f the i n d u s t r i a l p r o d u c t i v e apparatus has m a r k e d international e c o n o m i c relations between the central capitalist countries a n d the w o r l d p e r i p h e r y . T h e o l d pattern that concentrated o n m a n u f a c t u r i n g has been c h a n g e d b y the 'new' international d i v i s i o n o f labour, i n w h i c h n e w l y i n d u s t r i a l i z e d countries l i k e B r a z i l are i m p o r t a n t as centers for the a c c u m u l a t i o n o f transnational c a p i t a l . A l t h o u g h the largest part o f direct investment  by  developed  nations  is absorbed  i n t e r n a l l y between  the  advanced  capitalist  e c o n o m i e s , b y the m i d - 1 9 7 0 s , access to cheap labour a n d r e l a t i v e l y large i n t e r n a l markets i n p e r i p h e r a l e c o n o m i e s w a s an important factor i n capitalist c o m p e t i t i o n i n a w o r l d scale.  'Joint ventures'  a n d direct investment i n n e w l y  i n d u s t r i a l i z e d countries b e c a m e  attractive,  p r o v o k i n g great changes to the s o c i a l a n d e c o n o m i c structures o f these nations. T h u s , their dependent i n d u s t r i a l i z a t i o n made t h e m v u l n e r a b l e to fluctuations i n the central e c o n o m i e s o f the w o r l d s y s t e m ( D o r r a j , 1995).  77  'Periphery' is not a h o m o g e n e o u s  sphere regulated b y a r i g o r o u s l a w o f ' d e v e l o p m e n t  of  underdevelopment', a n d the transnationalization o f p r o d u c t i v e c a p i t a l was a l w a y s m a r k e d b y an i n c r e a s i n g heterogeneity w i t h i n the system's periphery. B r a z i l stands out as a s i n g u l a r case i n the n e w international d i v i s i o n o f labour.  I n a d d i t i o n to d e v e l o p i n g a n u m b e r o f i n d u s t r i a l sectors  w i t h the h e a v y i n v o l v e m e n t o f f o r e i g n c a p i t a l , it has created a n a d v a n c e d n a t i o n a l intermediate g o o d s sector w i t h the assistance  o f the state, as w e l l as a r e l a t i v e l y large i n t e r n a l m a r k e t  ( K o w a r i c k , 1986).  G r o w t h i n p r o d u c t i o n capacity between W W II and the 1980s m a d e B r a z i l ' s balance o f p a y m e n t s w o r s e . D u r i n g periods o f l o w d e m a n d for export products a n d o f h i g h interest rates i n the international f i n a n c i a l system, i m p o r t a t i o n o f m a c h i n e r y a n d e q u i p m e n t to c o m p l e m e n t  the  n a t i o n a l p r o d u c t i o n aggravated the i m b a l a n c e o f payments.  F o r the m o s t part, direct investment b y m u l t i n a t i o n a l s was geared to support d o m e s t i c capital t h r o u g h direct f i n a n c i n g . C o n c o m i t a n t l y , infrastructure, tax incentives a n d other measures h i g h l y attractive to f o r e i g n c a p i t a l were i m p l e m e n t e d . T h e state was f o r c e d to invest h e a v i l y i n energy, transportation a n d p r i m a r y industries (steel,  cement  etc.)  to  create  general  infrastructure  c o n d i t i o n s to m a k e f u l l use o f i n d u s t r i a l capital i n the t r a n s n a t i o n a l i z e d sectors. T h u s p u b l i c expenditure a n d consequently inflationary pressures a n d the degree o f international indebtedness were increased. M o s t o f the state's effort was made i n the Sao P a u l o r e g i o n , w h i c h e x p a n d e d its n a t i o n a l i m p o r t a n c e ( C a n o , 1990).  78  Skewed  structure o f i n c o m e d i s t r i b u t i o n p a r t i a l l y inherited f r o m the p r e v i o u s p e r i o d a n d  aggravated b y the m i l i t a r y c o u p o f 1964 was also responsible for the n e w structure o f p r o d u c t i o n d o m i n a t e d b y durable c o n s u m e r goods for the d o m e s t i c market. T h e t r a n s n a t i o n a l i z e d sectors, i n spite o f increased p r o d u c t i v i t y that created i n d u s t r i a l e x p a n s i o n i n f l u e n c e d w a g e deterioration, extended w o r k i n g hours a n d precarious w o r k i n g c o n d i t i o n s . T h e c a p i t a l i s m b e i n g f o r g e d u n d o u b t e d l y t e c h n o l o g i c a l l y advanced, but r e q u i r e d a repressive r e g i m e  i n order to  was more  e f f i c i e n t l y extract surplus v a l u e ( K o w a r i c k , 1986).  H o w e v e r , not o n l y capital-labour relations were e x p l o i t e d b y a c c u m u l a t i o n . T r a n s p o r t a t i o n , health, security, e d u c a t i o n a n d h o u s i n g , as c o l l e c t i v e c o n s u m p t i o n g o o d s to be p r o v i d e d t h r o u g h state m e d i a t i o n w e r e also sacrificed. T h e government, guaranteeing u r b a n infrastructure a n d services to corporations to facilitate the r a p i d c i r c u l a t i o n o f capital a n d its v a l o r i z a t i o n neglected totally the p r o v i s i o n o f a l l other needs o f the u r b a n l a b o u r force.  U r b a n i z e d areas o f the S P M A e x p a n d e d b y a factor o f n i n e between m i d - 1 9 5 0 a n d m i d - 1 9 8 0 . D u r i n g the 1970s alone, 4 8 0 square k i l o m e t e r s o f p e r i p h e r a l areas w e r e w i t h o u t basic u r b a n services ( K o v a r i c k , 1986). S p e c u l a t i v e l a n d h o l d i n g associated w i t h p e r i p h e r y g r o w t h meant d r a m a t i c spatial segregation for the w o r k i n g class. T h e h i g h rental v a l u e o f u r b a n real estate b e c a m e a n obstacle to the settlement o f l o w - i n c o m e groups i n better-located a n d w e l l - s e r v i c e d areas. T h e y w e r e t h r o w n into distant areas, squatter settlements, cortigos  or  favelas.  T h i s u r b a n pattern has b e c o m e standard i n recent decades. A l t h o u g h v a r i a t i o n s exist a m o n g types o f h o u s i n g f o r w o r k e r s , o v e r a l l c o n d i t i o n s are e x t r e m e l y poor. A t the same t i m e , they e f f i c i e n t l y  79  reduce the average s o c i a l cost o f the r e p r o d u c t i o n o f labour, a n d p o s i t i o n Sao P a u l o as a m e t r o p o l i s o f international importance.  SAO PAULO: POVERTY AND POLLUTION T h e p r i n c i p a l source o f the p o p u l a t i o n g r o w t h o f Sao P a u l o m e t r o p o l i t a n area has been m i g r a t i o n f r o m other regions, b o t h w i t h i n the state o f Sao P a u l o and f r o m other parts o f the c o u n t r y (especially  f r o m the Northeast, the poorest r e g i o n o f B r a z i l  since the t h i r d phase  o f the  d e v e l o p m e n t process. D u r i n g decades o f intense g r o w t h , migrants have c o n t r i b u t e d a n estimated 70 or 80 percent o f p o p u l a t i o n increase. T h e y constituted an a r m y o f cheap labour, w h i c h m a d e p o s s i b l e the p r o d u c t i o n o f a large surplus w i t h o u t c o n c e r n for c o n d i t i o n s o f e m p l o y m e n t , h o u s i n g or b a s i c welfare.  E a r l y i n the i n d u s t r i a l i z a t i o n phase, it was acceptable for major industries to house e m p l o y e e s i n 'workers' estates' b u i l t near the factories o n v e r y cheap land. H o w e v e r , i n t e n s i f i e d i n d u s t r i a l g r o w t h a n d r e d u c e d need to tie w o r k e r s to a s p e c i f i c c o m p a n y (there was a i m m e n s e reserve o f labour force) made this p o l i c y unattractive to e m p l o y e r s .  B y then, c o m p a n i e s h a d ceased to incorporate costs o f h o u s i n g a n d transport i n wages. C o s t s o f h o u s i n g (purchase, rent, maintenance) a n d o f transport were transferred to the w o r k e r s , a n d costs o f b a s i c u r b a n services, where existent, to the government ( K o w a r i c k , 1994).  L a n d s p e c u l a t i o n is responsible for one o f the m o s t p e c u l i a r characteristics o f the S P M A u r b a n s p r a w l . P r o p e r t y speculators establishing n e w sites for h o u s i n g estates far f r o m the e x i s t i n g u r b a n  80  o c c u p a t i o n left areas o f e m p t y l a n d between the n e w nucleus a n d the s e r v i c e d parts o f the c i t y . A s infrastructure w a s extended to the n e w site, the v a l u e o f the e m p t y l a n d w o u l d often increase before  it w a s  o c c u p i e d . I n a d d i t i o n to e n r i c h i n g speculators, this p r o v o k e d a n  extremely  u n o r g a n i z e d pattern o f l a n d use a n d l e d to the g r o w t h o f districts e v e n further f r o m the centre ( K o w a r i c k , 1977)  A n o t h e r c o m p o n e n t o f the d i s o r d e r l y process o f u r b a n d e v e l o p m e n t was g r o w t h o f i n d u s t r y first a l o n g the r a i l w a y lines s u r r o u n d i n g the c i t y , a n d later, a r o u n d the m a i n h i g h w a y s l e a d i n g to the d i s t r i b u t i o n centre. A s n e w industrial centres d e v e l o p e d , each o f t h e m created its o w n p e r i p h e r y .  P e o p l e w h o l i v e d far f r o m work-centres were f o r c e d to travel l o n g distances every day. T h i s group o f c o m m u t e r s increased r a p i d l y , fostering the g r o w t h o f d o r m i t o r y t o w n s , little m o r e t h a n camp-sites w i t h n o basic amenities w h i c h , i n t i m e , c r y s t a l l i z e d the k i n d o f u r b a n o c c u p a t i o n f o u n d i n m o s t o f the m e t r o p o l i t a n area ( V i o l i c h , 1987).  These aspects are i n t r i n s i c a l l y l i n k e d to the surge o f shantytowns. T h e i r l o c a t i o n f o l l o w e d the course o f i n d u s t r i a l i z a t i o n , w i t h shacks erected i n areas close to the m a r k e t for u n s k i l l e d labour. T h e favelas  u s u a l l y o c c u p y e m p t y l a n d , private or p u b l i c , unsuitable for l e g a l c o n s t r u c t i o n  because they are i n areas w i t h h i g h d e c l i v i t y , near streams ( w h i c h are p r o n e to f l o o d i n g ) , or are reserved for future p u b l i c use (green areas, p l a y g r o u n d s , etc.). O n c e the v a l u e o f p r i v a t e l a n d goes u p , s h a n t y t o w n d w e l l e r s are p u s h e d out. I n 1987, 65 percent o f the s l u m s w e r e situated o n p u b l i c l a n d , 18 percent o n private l a n d a n d 9 percent o n l a n d w i t h m i x e d o w n e r s h i p ( M a r i c a t o , 1994). T h o s e established o n p u b l i c l a n d have h a d m o r e tenure security, but at t i m e s , e s p e c i a l l y  81  d u r i n g the 1960s, o f f i c i a l effort to do a w a y w i t h the shantytowns i n t e n s i f i e d , i n p a r t i c u l a r w i t h the ones near m i d d l e class neighborhoods. N o w a d a y s , the m a j o r i t y o f s l u m s are l o c a t e d i n the interstices o f the u r b a n fabric, near h i g h w a y s a n d viaducts. T h e y are b o t h the cause a n d the v i c t i m s o f the u r b a n e n v i r o n m e n t deterioration.  O f f i c i a l efforts to resolve the h o u s i n g deficit i n Sao P a u l o have thus far been ineffectual. D u r i n g v a r i o u s p e r i o d s p u b l i c estates or s o c i a l h o u s i n g have been b u i l t , o n cheap a n d distant l a n d , w i t h m i n i m a l a n d faulty basic infrastructure, m o s t l y w i t h o u t any c o m m u n i t y services or r e l i a b l e transportation. I n 1991,  an estimated one m i l l i o n people were l i v i n g i n s h a n t y t o w n s ;  three  m i l l i o n i n deteriorated m u l t i p l e - f a m i l y h o u s i n g , and another 3 m i l l i o n l i v e d i n l a n d d e v e l o p m e n t s {loteamentos)  without  the  m i n i m u m legal  requirements  or  urban  infrastructure  facilities  (Secretaria d a H a b i t a c a o e D e s e n v o l v i m e n t o U r b a n o P M S P , 1991).  T h e s e settlements, l o c a t e d i n the periphery far f r o m c o m m u n i t y services a n d transportation, o c c u p y m o r e than 3 0 0 m i l l i o n square meters o f l a n d . H e r e , the w o r k i n g class p o p u l a t i o n has b u i l t their o w n houses. T h e y do not have title to the l a n d , a l t h o u g h they m a y have b o u g h t a n d p a i d for it at m a r k e t prices f r o m speculators ( M a r i c a t o , 1994).  T h e r a p i d , u n o r g a n i z e d , i l l e g a l and h i g h l y segregated process o f u r b a n e x p a n s i o n represented a severe b u r d e n u p o n basic u r b a n infrastructure, f r o m sewage c o l l e c t i o n a n d treatment to u r b a n transportation. A l t h o u g h 65 percent o f the S P M A is connected to the sewer s y s t e m , o n l y 4 0 percent o f sewage receives any treatment, waste water treatment plants process less than 2 6 percent o f the region's f l o w . A n i m p r e s s i v e 92 percent o f the residents are served w i t h p i p e d  82  water; h o w e v e r ,  because o f g r o w i n g d e m a n d a n d p o l l u t i o n p r o b l e m s , s u p p l y is subject  to  shortages or p r o g r a m m e d d a i l y cuts (rationing) that affects 3,5 m i l l i o n p e o p l e ( L e i t m a n n , 1992).  ENVIRONMENT AND URBAN SERVICES: TRANSPORTATION, H E A L T H , EDUCATION T w o m a i n factors are u n d u l y related to the p r o b l e m s o f u r b a n transportation. F i r s t , activities a n d h o u s i n g are s p a t i a l l y segregated b y i n c o m e groups, w i t h the m a j o r i t y o f the w o r k i n g class l i v i n g i n the p e r i p h e r y a n d s p e n d i n g three to four hours i n d a i l y transport j o u r n e y s .  S e c o n d , the d e v e l o p m e n t  m o d e l o f the last 30 years has been strategically  l i n k e d to the  a u t o m o b i l e i n d u s t r y , fostering the use o f private transportation to the detriment o f p u b l i c transportation. W h e r e p u b l i c transportation is i n place buses have been g i v e n preference  over  r a i l w a y a n d s u b w a y systems. I n 1992, buses were responsible for 60 percent o f the passenger trips t a k e n i n the c i t y , transporting 6.5 m i l l i o n passengers per day, i n 9,700 v e h i c l e s . A t the same t i m e , the  subway  a n d r a i l w a y systems  c o m p r i s e d o n l y 41  kilometers, when  other  urban  a g g l o m e r a t i o n s o f s i m i l a r size t y p i c a l l y have 2 0 0 to 4 0 0 k m ( G r e g o r i , 1992). T h e n u m b e r o f private a u t o m o b i l e s has been o n the rise since the 1960s, p r o v o k i n g chaotic a n d congested traffic c o n d i t i o n s for the S P M A p o p u l a t i o n . 9  H e a l t h a n d e d u c a t i o n service d e l i v e r y i n the S P M A is better, b o t h i n aggregate terms a n d w h e n c o m p a r e d w i t h d e l i v e r y o f these services for the country as a w h o l e . I n a d d i t i o n to the search for  83  e m p l o y m e n t , health a n d education opportunities have been strong m o t i v a t i o n s to  migrants  c o m i n g f r o m p o o r e r parts o f the country, even t h o u g h these services are stretched to the l i m i t , and b y international standards are far f r o m i d e a l .  P o o r transport p l a n n i n g contributes to a h i g h rate o f v e h i c u l a r deaths. It is estimated that Sao P a u l o traffic k i l l s about 6,000 people a n n u a l l y a n d w o u n d s 7 7 , 0 0 0 , l e a v i n g 60 percent w i t h permanent d i s a b i l i t y . T r a f f i c accidents cost the country m o r e than U S $ 5 b i l l i o n a n n u a l l y , b e t w e e n 2 0 a n d 25 percent o f this is i n Sao P a u l o ( O E s t a d o de Sao P a u l o , O c t o b e r , 1995).  M a n y diseases are associated w i t h e n v i r o n m e n t a l p r o b l e m s . P o o r water q u a l i t y , o v e r c r o w d i n g , and substandard h o u s i n g c a n be l i n k e d to diarrhea, tuberculosis, c e r e b r o s p i n a l m e n i n g i t i s , s c h i s t o s o m i a s i s a n d s k i n infections ( C a c c i a B a v a , 1994). L i f e expectancy at b i r t h i n the S P M A is 64.4 years, m o r e than one year b e l o w the n a t i o n a l average o f 65.6. Infant m o r t a l i t y averages 37/1000 l i v e births, w e l l b e l o w the n a t i o n a l average o f 60/1000 ( L e i t m a n n , 1992).  I n the area o f basic education, w h i c h is c o m p u l s o r y a n d free between the ages o f 5 to 14, i n 1988 about 9 0 percent o f the c h i l d r e n were e n r o l l e d at s c h o o l , but less than 25 percent were expected to f i n i s h e d the 8  th  year ( E d e l , 1989). T h e m a i n p r o b l e m s are w i d e s p r e a d p o v e r t y a n d deficient  u r b a n services: schools are u n e v e n l y distributed, f o r c i n g students to travel l o n g distances to s c h o o l . T h i s , together w i t h h o u s e h o l d poverty, results i n h i g h transience a n d absenteeism, as w e l l as a h i g h n u m b e r o f dropouts.  9  The last estimate in 1997, by CETESB, was around 5 million cars. 84  D a i l y f u n c t i o n o f health a n d educational systems i n the S P M A is beset w i t h p r o b l e m s . M o s t s c h o o l s a n d health centres are i l l e q u i p p e d and personnel receive l o w w a g e s , r e s u l t i n g i n a l o w q u a l i t y o f service ( F a r i a , 1991).  Sao P a u l o ' s air contains excessive levels o f c a r b o n m o n o x i d e , o z o n e a n d particulate. I n  1989,  h e a l t h w a r n i n g s for the 3 p r i n c i p a l p o l l u t i o n agents were g i v e n i n 2 5 0 days. A b o u t h a l f o f this p o l l u t i o n c o m e s f r o m industries. It was estimated i n 1980 that a p p r o x i m a t e l y 6,200 industries w e r e sources o f p o l l u t i o n , a n d that 15 percent o f these had a h i g h l y t o x i c p o t e n t i a l ( L e i t m a n n , 1992). N e i t h e r g o v e r n m e n t nor industry shows c o n c e r n for e n v i r o n m e n t a l consequences o f r a p i d i n d u s t r i a l i z a t i o n . I n fact, the government v i e w e d this negligence  as a n essential part o f the  p r a g m a t i c B r a z i l i a n m o d e l o f development.  Urban  sewage  and  i n d u s t r i a l wastewater  seriously  affect  the  three  rivers  crossing  the  m e t r o p o l i t a n area, as w e l l as l o c a l reservoirs. T h e rivers are almost t o t a l l y d e v o i d o f o x y g e n . H i g h l e v e l s o f lead a n d m e r c u r y have been detected. I n a d d i t i o n , g r o u n d water a n d coastal waters are s h o w i n g degradation l i n k e d to i n d u s t r i a l e m i s s i o n s f r o m the S P M A ( J a c o b i , 1994).  There is a d a i l y p r o d u c t i o n o f a p p r o x i m a t e l y 2 2 - t o n o f s o l i d waste, one t h i r d generated b y the industries. T h r o u g h o u t the m e t r o p o l i t a n area, 80 percent o f wastes are h a n d l e d b y the o f f i c i a l system; o f this, 75 percent are c o n s i d e r e d adequately or p r o p e r l y d i s p o s e d ( a c c o r d i n g to the P a n A m e r i c a n H e a l t h O r g a n i z a t i o n ) . N o specific estimates o f p o l l u t i o n f r o m these sources  exist.  H o w e v e r , w i t h 2 0 percent, at least, o f waste g o i n g unprocessed each day, health a n d sanitation  85  p r o b l e m s are i n e v i t a b l e , s p e c i a l l y i n the l o w - i n c o m e n e i g h b o r h o o d s a n d areas outside the f o r m a l c i t y ( L e i t m a n n , 1992).  Disasters r e s u l t i n g f r o m inappropriate l a n d use have increased i n b o t h frequency and intensity. Steep h i l l s i d e s a n d areas prone to f l o o d i n g have been o c c u p i e d b y l o w - i n c o m e settlements. I n 1989 there were 783 s l u m s located i n water basins, 385 i n erosion-prone areas a n d 30 o n or near garbage d u m p s . F l o o d i n g is v e r y c o m m o n d u r i n g the s u m m e r , w h e n h e a v y rains o c c u r s , 4 6 8 areas have been i d e n t i f i e d as at r i s k f r o m p e r i o d i c f l o o d i n g affecting a p p r o x i m a t e l y 7 5 , 0 0 0 p e o p l e , m o s t o f t h e m s l u m d w e l l e r s . Systematic destruction o f green areas a n d a deficient u r b a n drainage s y s t e m are m a j o r causes o f these human-exacerbated natural hazards ( M a r i c a t o , 1994).  A n a d d i t i o n a l p r o b l e m concerns lands that protect the water s u p p l y catchment areas o f the S P M A . U n t i l the 1980s, these areas were reasonably m a n a g e d , but w i t h the e c o n o m i c c r i s i s o f the last decade, squatting has resulted i n a n estimated 8 0 0 , 0 0 0 people o c c u p y i n g the watersheds. T h i s has accelerated degradation o f the G u a r a p i r a n g a reservoir, the source o f d r i n k i n g water f o r n e a r l y 5 m i l l i o n people (Bartone, 1996).  I n the m i d - 1 9 8 0 s , 1.5  m i l l i o n people  i n the S P M A  were u n e m p l o y e d , 2 0 percent o f the  e c o n o m i c a l l y active p o p u l a t i o n . T h e l e v e l o f i n d u s t r i a l e m p l o y m e n t has been stagnant since the m i d - 1 9 7 0 s , i n spite o f a 38 percent p o p u l a t i o n g r o w t h o v e r the same p e r i o d . A l t h o u g h B r a z i l ranks h i g h i n the capitalist w o r l d i n terms o f i n d u s t r i a l p r o d u c t i o n , w a g e levels are v e r y l o w . C o m p a r a t i v e studies o n l i v i n g standards s h o w that a l t h o u g h B r a z i l is one o f the countries i n the  86  capitalist p e r i p h e r y w h i c h i n d u s t r i a l i z e d the most after W W II, it is also a n i n d i s p u t a b l e leader o f s o c i a l a n d e c o n o m i c inequalities ( K o w a r i c k , 1986, M a r i c a t o , 1998).  A l t h o u g h i n f l a t i o n has been somewhat c o n t r o l l e d i n the last t w o years, l o c a l i z e d e c o n o m i c g r o w t h i n d i c a t o r s s h o w that recession s t i l l p r e v a i l s . T h e i m p o r t a n c e o f the s o - c a l l e d ' i n f o r m a l e c o n o m y ' as the o n l y v i a b l e o p t i o n for m a n y strata o f the Paulistano  p o p u l a t i o n is e x p a n d i n g .  P e o p l e i n i n f o r m a l j o b s have increased f r o m 12.2 percent o f the w o r k i n g age p o p u l a t i o n i n 1989 to 14.7 percent i n 1996. A n o v e r a l l deterioration i n labour market c o n d i t i o n s w a s also detected i n the same p e r i o d : 59 percent o f n e w j o b offers are associated w i t h the i n f o r m a l sector, 13 percent are f r o m o u t s o u r c i n g , a n d 14 percent f r o m non-registered-employee j o b s (Schiffer, 1998)  T h e m e t r o p o l i s is the headquarters o f b i g capital and the site where a vast contingent o f w o r k e r s is concentrated, a n d s o c i a l contradictions here are m o r e acute. Struggles a n d c o n f l i c t s are m o r e n u m e r o u s here t h a n elsewhere i n B r a z i l ( K o w a r i c k , 1986). T h i s contributes to the increased v i o l e n c e a n d unsafe e n v i r o n m e n t that is frequently portrayed i n the m e d i a ( V e j a , June 1996).  S o m e o f the c o n f l i c t is e n d e m i c to B r a z i l i a n society: class, gender a n d e s p e c i a l l y race issues have been present since c o l o n i a l times. M o r e recent e c o n o m i c d e v e l o p m e n t has exacerbated these d i m e n s i o n s , a n d has m a d e the disparity o f w e a l t h d i s t r i b u t i o n and s o c i a l benefits m o r e acute. A s A r m s t r o n g a n d M c G e e (1985) p o i n t out the g r o w t h o f cities i n capital a c c u m u l a t i o n a n d generation o f dependence, structural i n e q u a l i t y a n d p o v e r t y is i n g r a i n e d i n the larger h i s t o r y o f u n e q u a l relations already e x i s t i n g w i t h i n societies.  87  A s o f 1990, it was estimated that the rate o f i n - m i g r a t i o n to Greater Sao P a u l o w a s a p p r o x i m a t e l y 1000 p e o p l e per day ( S h i d l o , 1990). T h e p u s h o f rural d i s p l a c e m e n t c o m b i n e d w i t h the lure o f better opportunities i n the b i g c i t y contributes s i g n i f i c a n t l y to the e x p l o s i o n o f the  SPMA.  H o w e v e r , a 1995 L i n c o l n Institute o f L a n d P o l i c y case study indicates that w h i l e the a n n u a l g r o w t h rate i n the S P M A is s t i l l t w o percent, the current m i g r a t i o n rate is smaller. T h e o p e n i n g o f the A m a z o n i a n frontier for m i n i n g , agriculture, forestry, a n d m a j o r infrastructure p r o g r a m s s u c h as roads, a n d h y d r o e l e c t r i c projects is one e x p l a n a t i o n for the s l o w i n g or e v e n reversal o f m i g r a t i o n . T h i s e c o n o m i c a c t i v i t y has d r a w n a large n u m b e r o f m i g r a n t s , p a r t i c u l a r l y m e n i n search o f h i g h e r p a y i n g j o b s . U n f o r t u n a t e l y , these j o b s are part o f a quest for short-term profits, a n d therefore generally o f a n unsustainable nature. T h i s c o u l d m e a n that m i g r a t i o n to the m a j o r B r a z i l i a n u r b a n centres m i g h t s i m p l y be deferred for a n u m b e r o f years.  METROPOLITAN GOVERNMENT IN SAO PAULO B r a z i l i a n a d m i n i s t r a t i v e institutions are o r g a n i z e d w i t h strong p o w e r s concentrated at the federal l e v e l . T h i s has l e d to v e r y efficient d e l i v e r y m e c h a n i s m s for u r b a n p o l i c i e s consistent w i t h the f a v o u r e d d e v e l o p m e n t m o d e l . T h e constitution establishes the p o w e r s and rights o f federal a n d m u n i c i p a l l e v e l s , l e a v i n g to state governments the r e m a i n i n g r e s p o n s i b i l i t i e s , i n c l u d i n g those for m e t r o p o l i t a n areas. M e t r o p o l i t a n l e g i s l a t i o n deals w i t h m u n i c i p a l interests as expressed b y the m a y o r s o f the m u n i c i p a l i t i e s that m a k e up the m e t r o p o l i t a n regions.  M u n i c i p a l i t i e s are the o n l y units o f l o c a l government. T h e e x i s t i n g d i s p a r i t y a m o n g t h e m , i n terms  of  territorial e x t e n s i o n ,  p o p u l a t i o n , and a l l o c a t i o n o f  88  financial and  administrative  resources,  has  been  a  source  of  administrative  difficulties,  particularly  within  the  39  m u n i c i p a l i t i e s that c o m p r i s e S P M A .  S o m e m e t r o p o l i t a n p o l i c i e s have been i m p l e m e n t e d to address these d i f f i c u l t i e s , e s p e c i a l l y those related to the e n v i r o n m e n t . I n spite o f an e x p l i c i t guarantee o f m u n i c i p a l a u t o n o m y i n the federal c o n s t i t u t i o n - a rather u n c o m m o n feature w i t h i n federal systems and d e v e l o p i n g countries - the f i n a n c i a l resources o f m u n i c i p a l i t i e s are not a l w a y s adequate for their m e t r o p o l i t a n  shared  r e s p o n s i b i l i t i e s . M u n i c i p a l responsibilities i n c l u d e : a d o p t i o n o f their o w n charter; e l e c t i o n o f a municipal government  ( c o u n c i l and m a y o r ) ; instituting four taxes reserved  for t h e m b y  the  federal c o n s t i t u t i o n , i n c l u d i n g tax assessment, l e v y i n g and c o l l e c t i o n ; the r a i s i n g o f revenue f r o m other  sources (fees, services charges, special  assessment or i m p r o v e m e n t  charges,  loans);  p a r t i c i p a t i o n i n federal and state taxes; free u t i l i z a t i o n o f tax revenue, except for the o b l i g a t i o n to a p p l y 25 percent o f the revenues f r o m m u n i c i p a l and shared taxes to education; o r g a n i z a t i o n a n d a d m i n i s t r a t i o n o f m u n i c i p a l services; and m u n i c i p a l urban land-use p l a n n i n g .  In p r a c t i c a l terms c o o r d i n a t i o n o f m u n i c i p a l services a m o n g the three levels o f  government  presents m a j o r p r o b l e m s , e s p e c i a l l y i n d e v e l o p i n g strategies for resource m o b i l i z a t i o n . Services s u c h as e d u c a t i o n at a l l levels, health care, recreation, culture, c h i l d and o l d age care, and s o c i a l assistance,  may  be  provided  by  a l l three  government  levels,  leading  to  duplication  or  i n s u f f i c i e n c y o f resources t h r o u g h l a c k o f integration..  T h e p r o v i s i o n o f u r b a n and feeder roads, as w e l l as u r b a n transportation, are d i s t r i b u t e d b e t w e e n federal, state and m u n i c i p a l a d m i n i s t r a t i o n , causing p r o b l e m s w i t h d e f i n i n g r e s p o n s i b i l i t i e s for  89  their c o n s t r u c t i o n a n d maintenance. Garbage c o l l e c t i o n a n d d i s p o s a l , p u b l i c m a r k e t s , open-air fairs, slaughterhouses a n d street l i g h t i n g are r u n b y the m u n i c i p a l i t i e s ; telephone a n d e l e c t r i c i t y services are m o s t l y a federal r e s p o n s i b i l i t y ; water a n d sewers are r u n b y state c o m p a n i e s that w e r e f u n d e d b y federal loans to i m p r o v e service d e l i v e r y t h r o u g h the N a t i o n a l S a n i t a t i o n System.  H o u s i n g is m a i n l y p r o v i d e d b y the private sector, i n spite o f the existence o f the H o u s i n g F i n a n c i a l S y s t e m ( H F S ) , created to attend s o c i a l h o u s i n g p r o g r a m s , but w h o s e m a i n r o l e has been to c h a n n e l private-sector m o n e y into the b u i l d i n g market. A s p u b l i c h o u s i n g funds are e x t r e m e l y s m a l l , H F S restricts its a c t i v i t y to p o l i c y - m a k i n g a n d r e g u l a t i o n . S o m e states a n d a f e w m u n i c i p a l i t i e s are i n v o l v e d i n p o p u l a r h o u s i n g projects (cooperatives, self-help, etc.) but m o r e recently m u n i c i p a l i t i e s have concentrated their efforts o n i m p r o v i n g the c o n d i t i o n s o f s l u m areas, a n d o n p r o v i d i n g infrastructure for h o u s i n g projects undertaken b y either the p r i v a t e sector or the state government.  Nevertheless,  municipal autonomy  means  that, m u c h o f infrastructure a n d s o c i a l  housing  p r o v i s i o n depends o n the p o l i t i c a l party i n p o w e r a n d the c o m m i t m e n t o f m u n i c i p a l authorities t o w a r d s the betterment o f the poor. I n practice, attitudes towards d e v e l o p m e n t i n any B r a z i l i a n m u n i c i p a l i t y , or even the e m b e l l i s h m e n t o f a c i t y w i l l depend o n the m u n i c i p a l p o l i t i c i a n s i d e o l o g i c a l a p p r o a c h ( C h e e m a , 1993).  U n d e r pressure o f d e a l i n g w i t h c o m p l e x u r b a n issues i n c r i t i c a l stages due to i n d u s t r i a l i z a t i o n and its consequences,  m i l i t a r y rulers created  90  several federal institutions to m a n a g e  urban  development. T h e F e d e r a l S e r v i c e for H o u s i n g and U r b a n D e v e l o p m e n t ( S E R F A U ) , created i n 1965, h a d authority to enforce the national requirement for c o m p r e h e n s i v e l o c a l p l a n n i n g b y the m u n i c i p a l i t i e s . T h i s is a t o p - d o w n approach, i n w h i c h planners define a M a s t e r P l a n to c o n t a i n and c o n t r o l u r b a n g r o w t h .  I n 1973, S E R F A U was d i s s o l v e d , and its functions w e r e d i v i d e d b e t w e e n the N a t i o n a l H o u s i n g Bank  ( B N H ) a n d the N a t i o n a l C o m m i s s i o n o n M e t r o p o l i t a n R e g i o n s  (CNPU).  CNPU  intermediary  assumed  responsibility  b e t w e e n l o c a l and federal  for  defining  government  national urban w i t h regard  and U r b a n policy,  to the  Policies  and  acts  as  administration  of  m e t r o p o l i t a n regions ( V i o l i c h , 1 9 8 7 ) .  In  1967,  the  Executive  Group  for  Greater  Sao  Paulo  ( G E G R A N ) was  created,  the  m e t r o p o l i t a n p l a n n i n g agency i n B r a z i l . M u n i c i p a l i t i e s o f the m e t r o p o l i t a n area, the  first  federal  government, p r o f e s s i o n a l associations and state government w e r e represented. Its task w a s to oversee  and  coordinate  the  allocation  of  state  investments  w i t h i n the  SPMA,  through  c o m p r e h e n s i v e plans and specific sector studies (industrial development, transportation, etc.).  In 1971 the M e t r o p o l i t a n P l a n for C o m p r e h e n s i v e D e v e l o p m e n t ( P M D I ) w a s c o m p l e t e d . A s w e l l as e s t a b l i s h i n g  directives  for the entire m e t r o p o l i t a n area, it c o n c e i v e d  and  recommended  c r e a t i o n o f a n intergovernmental agency to direct g r o w t h i n the m e t r o p o l i t a n r e g i o n ( R o l n i k , 1990). I n 1973, a federal l a w established the o f f i c i a l Sao P a u l o M e t r o p o l i t a n R e g i o n ( S P M A ) .  In 1975, a Secretariat for M e t r o p o l i t a n A f f a i r s w a s created as c o o r d i n a t o r a n d e x e c u t i v e o f the m e t r o p o l i t a n systems, t h r o u g h the M e t r o p o l i t a n C o r p o r a t i o n for P l a n n i n g o f Greater Sao P a u l o  91  ( E M P L A S A ) . Its task is to c o n t r o l l a n d use a n d o c c u p a n c y i n the m e t r o p o l i t a n r e g i o n , w i t h particular e m p h a s i s o n the protection o f water resources ( C h e e m a , 1993).  S i n c e its i n c e p t i o n , E M P L A S A ' s major challenge has been to establish an acceptable i n t e g r a t i o n b e t w e e n g o v e r n m e n t agencies at the m u n i c i p a l l e v e l (traffic engineering c o m p a n y , secretariat o f h o u s i n g , p l a n n i n g , health and hygiene, (corporations  for  environmental  culture, p u b l i c w o r k s a n d p u b l i c roads), state l e v e l  protection,  water  and  sewage,  p l a n n i n g , electric  energy  department), a n d n a t i o n a l l e v e l (national association o f m u n i c i p a l i t i e s a n d e n v i r o n m e n t ) . T h e s e agencies together w i t h labor u n i o n s , professional associations, N G O s , c o m m u n i t y groups, a n d the l e g a l a n d legislative system, are stakeholders i n the process o f d e f i n i n g a n d i m p l e m e n t i n g u r b a n m e t r o p o l i t a n p o l i c i e s . T h i s has been a great challenge for E M P L A S A a n d for m u n i c i p a l and state secretariats w h i c h have been under pressure to d i s p l a y a tougher attitude t o w a r d e n v i r o n m e n t p r o t e c t i o n i n the S P M A ( M a r i c a t o , 1994). U n f o r t u n a t e l y , due to p o l i t i c a l p r o b l e m s i n the state g o v e r n m e n t E M P L A S A ' s mandate has been steadily s h r i n k i n g . T h i s has left a v o i d i n the m e d i a t i o n space between state, m u n i c i p a l and p u b l i c interests, the private sector a n d c i v i l society.  SAO PAULO IN TRANSITION T h e t r a n s f o r m a t i o n o f S P reflects the confluence o f r a p i d u r b a n i z a t i o n , i n d u s t r i a l i z a t i o n , a n d the growing  importance  o f services  i n the  economy.  Changes  i n the  occupational  structure,  restructuring o f labor markets and emergent s o c i a l i n e q u a l i t y since the m i d - 1 9 4 0 s are reflections  92  o f the pace o f i n d u s t r i a l i z a t i o n a n d the i n s e r t i o n o f the national e c o n o m y into the international economy.  W i t h i n this transformation, some aspects are p a r t i c u l a r l y significant. F i r s t , a l t h o u g h changes i n o c c u p a t i o n a l structure s i g n i f y m o d e r n i z a t i o n , they also generate greater d i v e r s i t y a n d have l e d to increased  s o c i a l i n e q u a l i t y . S e c o n d , one c a n no longer u s e f u l l y  identifies a  homogeneous  w o r k i n g class based a r o u n d industry. There has been a dramatic d e c l i n e i n the salaried w o r k f o r c e and g r o w t h i n alternative labour m o d e s ( i n f o r m a l , s e l f - e m p l o y e d a n d n o n - r e m u n e r a t e d labour). T h i r d , this informalization  is not s i m p l y a f o r m o f s u r v i v a l strategy; rather, it is part o f a pattern  o f s i g n i f i c a n t changes i n labour force u t i l i z a t i o n . F o u r t h , the w o r k i n g class per  se is l o s i n g its  i m p o r t a n c e as the axis a r o u n d w h i c h s o c i a l and p o l i t i c a l identity is created. A l s o , n o w that m i g r a t i o n n o longer offers opportunities for intergenerational m o b i l i t y , s o c i o e c o n o m i c m o b i l i t y is d e c l i n i n g .  H i s t o r i c a l l y , the a v a i l a b i l i t y o f a n i m m e n s e s u p p l y o f cheap l a b o u r has been a m a j o r factor for r a p i d u r b a n g r o w t h a n d the persistence o f h i g h levels o f poverty, w h i c h w a s c o n c o m i t a n t w i t h the e x p a n s i o n o f w e a l t h w i t h i n the S P M A . T h i s has fostered v i s i b l e , intense s o c i a l contrasts a n d m a d e the u r b a n infrastructure precarious. A l s o , i n face o f serious damage already c a u s e d a n d o n g o i n g deterioration, the e n v i r o n m e n t a l i m p l i c a t i o n s o f Sao P a u l o ' s t r a n s f o r m a t i o n cannot be emphasized enough.  I n m o r e recent years, h o w e v e r , this pattern o f intense g r o w t h has s l o w e d . I n c r e a s i n g i n d u s t r i a l deconcentration has spread industries towards b o t h the interior o f the state a n d the  93  adjacent  states, e s p e c i a l l y to the S o u t h . D i s e c o n o m i e s o f a g g l o m e r a t i o n have emerged i n the m e t r o p o l i t a n area o f Sao P a u l o , v i s i b l e i n the p r i c e o f lots and rents, i n e n v i r o n m e n t a l and c o n g e s t i o n controls, and i n w a g e s increases ( D i n i z , 1994).  Decentralization  was  an  objective  of  government  intervention:  public  investment,  fiscal  incentives, c o n s t r u c t i o n o f infrastructure, as w e l l as the search for n e w natural resources i n d u c e d development  o f n e w regions. U n i f i c a t i o n o f the national market t h r o u g h transportation and  c o m m u n i c a t i o n infrastructure, w h i c h has contributed e n o r m o u s l y to the o n g o i n g restructuring o f the g e o g r a p h y o f p r o d u c t i o n .  T h i s late tendency m a y represent a breathing space i n the S P M A ' s o n g o i n g p o p u l a t i o n g r o w t h , but it i n n o w a y eases the already heavy b u r d e n o f urban p r o b l e m s o n the c i t y ' s p o p u l a t i o n and the e n v i r o n m e n t .  T h e c h r o n i c crisis o f the B r a z i l i a n e c o n o m y affects the q u a l i t y o f l i f e i n the S P M A i n several a n d c u m u l a t i v e w a y s . U n e m p l o y m e n t is still rampant - u n o f f i c i a l estimate is a r o u n d 2 0 percent o f the l a b o r force. There is no abatement i n the constant repression o f n o r m a l i z a t i o n o f l a b o u r relations. There is a d i s t u r b i n g g r o w t h o f i n f o r m a l e c o n o m i c activities w i t h i n m a r g i n a l sectors o f the u r b a n economy.  T h e n u m b e r o f people w o r k i n g w i t h o u t legal registration is steadily r i s i n g , e v e n  amongst s k i l l e d w o r k e r s .  T h e o c c u p a t i o n a l p r o f i l e o f the labour force has changed: d u r i n g 1994-95, three out o f four j o b s a v a i l a b l e i n Sao P a u l o w e r e i n the service sector ( O E S P O c t o b e r 1995). T h e n u m b e r o f j o b s offered b y industry is decreasing, not o n l y because o f the e c o n o m i c c r i s i s , but also because o f  94  industrial modernization. The  g r o w i n g use  o f high technology,  management  optimization  techniques a n d r o b o t i z a t i o n w i l l l i k e l y m a r g i n a l i z e a larger p o r t i o n o f the actual l a b o u r force. B a s i c a l l y , w o r k e r s l a c k the means that c o u l d update their j o b s k i l l s , as e d u c a t i o n a n d f i n a n c i a l support f o r r e t r a i n i n g are not available.  U r b a n v i o l e n c e a n d c r i m e rates are o n the rise, registering n u m b e r s larger t h a n N e w Y o r k a n d L o s A n g e l e s a n d b e c o m i n g the most tragic i n d i c a t o r o f the depth o f s o c i a l c r i s i s . P a r t i c u l a r l y , the increased  incidence  of  offenses  against  property  appears  to  be  correlated  with  rising  u n e m p l o y m e n t a n d cost o f l i v i n g , factors that increase w i d e s p r e a d p o v e r t y a n d the g r o w i n g desperation o f the m o s t destitute p o r t i o n o f the p o p u l a t i o n .  Sao P a u l o ' s prospects w i l l no doubt be affected b y the d e c l i n e o f e c o n o m i c a c t i v i t i e s that have reached the f i s c a l base o f state a n d m u n i c i p a l governments.  T h i s has already affected  the  p e r f o r m a n c e o f p u b l i c services that rely o n e m p l o y m e n t e x p a n s i o n for their f u n d i n g . A g e n c i e s r e s p o n s i b l e f o r h o u s i n g , s o c i a l security, health and educational p r o v i s i o n have n e a r l y c o l l a p s e d . I n f o r m a l i z a t i o n o f the e c o n o m y needs to be faced creatively, i n order to foster the search for n e w w a y s o f f u n d i n g p u b l i c services.  Sao P a u l o ' s i m p r e s s i v e performance as an e c o n o m i c centre contrasts w i t h the levels o f i n e q u a l i t y and p o v e r t y that s t i l l p r e v a i l . T h e m o d e r n i t y and c o m p l e x i t y o f its i n d u s t r i a l base, as w e l l as its financial  institutions are  impressive,  so  is  its  differentiated  commercial  network,  some  sophisticated services sub-sectors a n d the richness o f its c u l t u r a l l i f e . H o w e v e r , the size o f its p r o b l e m s a n d its i n c r e a s i n g u n g o v e r n a b i l i t y , together w i t h the e n o r m o u s a m o u n t o f resources  95  needed, are areas o f m u c h concern. A t a press conference, the M a y o r o f the c i t y o f Sao P a u l o said:  "If, by some miracle, the prefecture would receive today 13 trillion cruzeiros necessary to eliminate, in a year, the city's deficit in infrastructure, housing and urban equipment, Sao Paulo would gain over 6,000 kilometers ofpaved and lighted roads, 1,000 kilometers of sewers, 4,000 childcare centres and almost a million dwellings, along with hundreds of health centres, dozens of hospitals, plazas and playgrounds. " (Luiza Erundina, Workers Party Administration, 1989, cited by Faria (1991) T h i s means that the c i t y o f Sao P a u l o alone w o u l d c o n s u m e about U S $ 3 0 b i l l i o n - 12 t i m e s its budget at the t i m e a n d one t h i r d o f the B r a z i l i a n f o r e i g n debt - just to o v e r c o m e its m o s t urgent problems.  T h u s , the g l o b a l i z a t i o n o f the w o r l d e c o n o m y has not been an u n e q u i v o c a l b l e s s i n g to S P M A . It c e r t a i n l y does not p r o v i d e for the needy o f d e v e l o p i n g societies. Therefore, it r e m a i n s to be seen whether the current trend o f l o w e r i n f l a t i o n a n d relative stability, strongly supported b y the r e i n s t a l l e d d e m o c r a c y , w i l l last l o n g e n o u g h for the necessary s o c i a l a n d e c o n o m i c r e f o r m s . T h e s e reforms need to b e c o m p r e h e n s i v e e n o u g h to reduce at least p a r t i a l l y , the i m p a c t o f i n t e r n a t i o n a l movements  o f the w o r l d e c o n o m y o n l o w - i n c o m e groups. A s a m e t r o p o l i s i n the capitalist  p e r i p h e r y , S P M A represents the failure o f a particular pattern o f e c o n o m i c g r o w t h to protect s o c i a l j u s t i c e a n d e n v i r o n m e n t a l quality.  W i t h o u t p o l i t i c a l pressure a n d a greater i n f l u x o f international resources e n v i r o n m e n t r e c o v e r y w i l l r e m a i n a l o w p r i o r i t y . Sao P a u l o c o u l d m a k e use o f the ' i n t e r n a t i o n a l r e s p o n s i b i l i t y ' c l a i m e d b y F i r s t W o r l d countries to o b t a i n necessary f i n a n c i a l resources for r e c o v e r y a n d a m e l i o r a t i o n o f its u r b a n c o n d i t i o n s . E x i s t i n g loans f r o m the international c o m m u n i t y are n o t e n o u g h f o r the  96  c o m p l e t i o n o f basic projects necessary to update the infrastructure systems. I n a d d i t i o n , loans are often t i e d to solutions inappropriate to national t e c h n i c a l c a p a b i l i t y . M a r i c a t o ' s analysis  of  changes o f investment p r i o r i t i e s i n Sao P a u l o after the W o r k e r s P a r t y a d m i n i s t r a t i o n illustrates this. C o m b i n e d w i t h the character  o f l o c a l and m e t r o p o l i t a n a d m i n i s t r a t i v e structure,  this  reinforces the need to i m p r o v e the d e c i s i o n - m a k i n g process, and incorporate c i v i l society as a r e a l agent o f change.  S o m e d e c i s i o n s m u s t transcend p o l i t i c a l concerns i f reliable recovery o f u r b a n systems is to be sustained. M o r e than a n y t h i n g else, e n v i r o n m e n t a l management m u s t be p r i o r i t i z e d i n order to stop degradation a n d reverse p o l l u t i o n processes, a n d e s p e c i a l l y to protect w a t e r b a s i n a n d the remnants o f the i n d i g e n o u s r a i n forest M a t a A t l a n t i c a . These are some o f the objectives o f the Guarapiranga Recovery represents  P r o g r a m that i n face o f the c o n d i t i o n s discussed  i n this  chapter,  a paradox: too s m a l l for m a k i n g real difference, but b i g e n o u g h to p o i n t i n the  d i r e c t i o n t o w a r d s a m o r e integrated w a y to tackle S P M A u r b a n e n v i r o n m e n t a l p r o b l e m s .  97  CHAPTER 4 SAO PAULO WATERS ".. the waters of march, closing the summer, are life promises  to my heart..." (Tom  Jobim)  INTRODUCTION T h i s chapter discusses the water resources o f the m e t r o p o l i t a n r e g i o n o f Sao P a u l o . It not o n l y outlines p h y s i c a l aspects o f water sources, but also examines l e g i s l a t i o n r e s p o n s i b l e for issues o f u t i l i z a t i o n a n d preservation. A l t h o u g h a n e w l e g i s l a t i o n is i n p l a c e , it w i l l take t i m e for reality to c a t c h up w i t h n e w j u r i d i c a l g u i d e l i n e s , a n d for p o s s i b l e i n c o m p a t i b i l i t i e s to emerge  between  actual l a n d uses a n d the n e w l e g i s l a t i o n . It is important to analyze h o w the e v o l u t i o n o f watershed preservation l a w s has created the actual situation, w h i c h w i l l s i g n i f i c a n t l y affect the o u t c o m e o f the G u a r a p i r a n g a R e c o v e r y P r o g r a m .  T h e d i s c u s s i o n o f water resources p r o t e c t i o n m u s t r e c o g n i z e that there has been c o n f l i c t a m o n g different interest groups, i n r e l a t i o n to l a n d o c c u p a t i o n i n the catchment areas o f the m a i n water s u p p l y reservoirs o f S P M A . C o n f l i c t has been p a r t i c u l a r l y strenuous i n the S o u t h e r n r e g i o n o f S P M A , where the B i l l i n g s a n d G u a r a p i r a n g a R e s e r v o i r are l o c a l i z e d near the S o u t h e r n axis o f h e a v y m e t r o p o l i t a n i n d u s t r i a l development.  U n c o n t r o l l e d residential e x p a n s i o n settlements,  low-income  communal  - m a i n l y t h r o u g h i l l e g a l settlements, households  98  a n d other  forms  s u c h as  of unofficial  real  squatter estate  d e v e l o p m e n t - has been t a k i n g place i n the area, despite e x i s t i n g l e g a l constrains c o n t r o l l i n g the l o c a l e n v i r o n m e n t . T h e u n o f f i c i a l settlement process w a s f u e l l e d b y a n e x p a n d e d l a b o r d e m a n d f r o m a nearby i n d u s t r i a l park, and also f r o m higher i n c o m e n e i g h b o r h o o d s a n d c o m m e r c i a l services. N o n - i m p l e m e n t a t i o n o f l o w - i n c o m e / s o c i a l h o u s i n g p r o g r a m s i n other areas o f the c i t y a n d the l a c k o f d e v e l o p m e n t o f other j o b areas have aggravated the p r o b l e m .  I n 1975, a specific " W a t e r R e s o u r c e E n v i r o n m e n t a l A c t " was added to e x i s t i n g z o n i n g l a w s a n d regulations. These measures, based o n a t o p - d o w n p l a n n i n g approach a n d far f r o m the l o c a l reality, l a c k e d i n s t i t u t i o n a l forcefulness a n d were insufficient to c o n t r o l u r b a n e x p a n s i o n . T h e g r o w i n g d e m a n d for residential l a n d has also contributed to pressure to e x c l u d e the reservoirs areas f r o m l e g a l constraints.  Existing  social conflicts  have generated  discussion among  different  interest  p o p u l a t i o n , the t e c h n i c a l p u b l i c sectors, c i t y p l a n n i n g professionals, l a n d o w n e r s ,  groups  -  the  entrepreneurs  and others - i n support of, or against, i n c r e a s i n g e n v i r o n m e n t a l a n d l a n d use controls.  The  d y n a m i c process o f u r b a n e x p a n s i o n and the real estate market t o o k over, p u s h i n g the l e g a l constraint objectives  further f r o m the reality. H e n c e , the actual p r o b l e m s a n d e n v i r o n m e n t a l  i m p l i c a t i o n s presented b y settlement o f protected areas v a n i s h e d i n the face o f c o n f l i c t r e i n f o r c e d b y a n e x c l u s i o n a r y s o c i a l and e c o n o m i c reality.  I n a d d i t i o n to the p h y s i c a l characteristics o f the m e t r o p o l i t a n r e g i o n , this chapter describes the m u l t i p l e functions o f the reservoirs (water s u p p l y , sewage d i s p o s a l , a n d energy generation), the  99  role o f m a n y p u b l i c agencies i n v o l v e d i n the area, a n d the sanitation a p p r o a c h f a v o u r e d  by  professionals a n d p u b l i c bodies.  D i f f e r e n t approaches to the reservoir issue b y different p l a n n i n g a n d p o l i c y groups are r e v i e w e d , i n l i g h t o f the c o n f l i c t between v i e w s o f the c i t y as a c l o s e d space - b y s t o p p i n g its e x p a n s i o n process - a n d as a d y n a m i c place o f s o c i a l conflicts w i t h p o l i t i c a l m e d i a t i o n s .  T h e p u b l i c sector has h a d a m o n o p o l y o n decisions, p a r t i c u l a r l y at the state l e v e l . T h e m i n i m u m role p l a y e d b y l o c a l m u n i c i p a l i t i e s i n the d e c i s i o n - m a k i n g process illustrates the need to enlarge their  responsibilities  towards  local  population  needs  and  social  conflicts  between  e n v i r o n m e n t a l i s t s , p r o f e s s i o n a l a n d s o c i a l groups. T h e o f f i c i a l d i s c u s s i o n has e m p h a s i z e d o n l y t e c h n i c a l aspects o f the reservoirs e n v i r o n m e n t a l p r o b l e m s , h i g h l i g h t i n g the non-existence  of  p o p u l a r i n p u t into e n v i r o n m e n t a l questions. I n a d d i t i o n , p o p u l a r sectors l i k e l y c h a n n e l their efforts towards other everyday s u r v i v a l questions.  L e g i s l a t i o n has been characterized by: emphasis o n l e g a l constraints rather t h a n i n t r o d u c t i o n o f n e w variables or the search o f n e w alternatives; maintenance o f e x i s t i n g l a w s , against changes i n their contents; adaptation o f e x i s t i n g l e g i s l a t i o n to what happens (the l a n d o c c u p a t i o n reality) t h r o u g h a p o l i c y o f sanctions or f i s c a l incentives.  T h e aspects presented a n d discussed suggest three m a i n determinants to be p o i n t e d as m a j o r factors i n d e a l i n g w i t h the S P M A  •  watersheds:  T h e i m p o r t a n c e o f c i t y concepts and a b r o a d v i s i o n o f the reservoir question;  100  •  T h e i m p o r t a n c e o f o p e n i n g up a broad participatory process to encompass the m a n y s o c i a l sectors a n d their s p e c i f i c interests;  •  T h e d i v e r s i t y o f p o s i t i o n s s u r r o u n d i n g the l e g a l aspects o f the issue.  M o r e detailed i n f o r m a t i o n c o n c e r n i n g l e g i s l a t i o n (laws a n d decrees) a n d changes w i t h i n the p o l i t i c a l context o f the t i m e w h e n the l e g i s l a t i o n was i m p l e m e n t e d a n d c h a n g e d is p r o v i d e d i n the A p p e n d i x A .  T H E WATERSHEDS OF SAO PAULO The  city  of  Sao  Paulo  has  overflowed  its boundaries  and become  Greater  Sao  Paulo,  i n s t i t u t i o n a l i z e d b y F e d e r a l L a w as Sao P a u l o M e t r o p o l i t a n R e g i o n , i n the m i d s t o f a general l a c k o f u r b a n infrastructure a n d services.  In 1969, 45 percent o f Sao P a u l o m u n i c i p a l i t y residents d i d not have p i p e d water a n d 63 percent h a d n o sewer system, 66 percent o f streets were not p a v e d a n d f r o m those, 76 percent d i d not have streetlights. I n 1975, infrastructure was still deficient, w i t h 30 percent residents w i t h o u t water a n d 60 percent w i t h o u t sewer system, and 60 percent o f streets were u n p a v e d ( C a m a r g o , 1975).  M e t r o p o l i t a n i z a t i o n , accelerated  population  growth,  and  general  lack  of  urban  infrastructure were a c c o m p a n i e d b y scarcity o f natural resources, e s p e c i a l l y water resources.  I n 1975, the p r o g n o s i s b y state authorities regarding p u b l i c water c o n s u m p t i o n was already v e r y disturbing:  101  "Presently, the demandfor water for domestic consumption is around 28 m^/s, and the industrial park is practically self-sufficient. However, the estimated consumption for 1985, considering the public demand and adding significantly more for the industries, will be equal to the sum of the available flow in the basin (39 m^/s) and the existing reversions (10m?fs). In 1990, the demand will reach 71m?Is. Therefore, it is necessary, to start to consider water importation from neighboring basins for the next decade. " (Sao Paulo, Assembleia Legislativa, 1975) [my translation] T h e Tiete, P a r a i b a d o S u l a n d J u q u i a rivers originate w i t h i n the S a o P a u l o M e t r o p o l i t a n R e g i o n . T h e p r i n c i p a l between these rivers watersheds i s the H i g h Tiete B a s i n , w h i c h consists o f the T i e t e R i v e r a n d its tributaries, f r o m their source to the P i r a p o r a D a m . U n t i l m i d - 1 9 8 2 , water resources w i t h i n this b a s i n w e r e almost t o t a l l y d i v e r t e d f o r energy p r o d u c t i o n . A t that t i m e , 87 m /s 3  w e r e b e i n g directed to the state energy  c o r p o r a t i o n ( E L E T R O P A U L O ) generators i n  C u b a t a o , l e a v i n g 3 m^/s to f l o w d o w n s t r e a m (Sao P a u l o , A s s e m b l e i a L e g i s l a t i v a , 1975). O n l y 2 0 percent o f water resources w a s b e i n g used for p u b l i c c o n s u m p t i o n , but the p r o g n o s i s c i t e d a b o v e alerted the p u b l i c authorities o f the need to m o b i l i z e a l l available water resources w i t h i n the T i e t e b a s i n a n d n e i g h b o r i n g watersheds to p r o v i d e water for Greater Sao P a u l o .  H o w e v e r , not a l l o f the water resources i n the Tiete b a s i n w e r e usable for p u b l i c c o n s u m p t i o n : 51 percent "...are pollution  unsuitable  for consumption  and leisure  use due to the extremely  high  level of  " (Sao P a u l o , A s s e m b l e i a L e g i s l a t i v a , 1975).  O n the other h a n d , a substantial part o f the water resources usable for p u b l i c s u p p l y , the B i l l i n g s R e s e r v o i r , w a s c o m p r o m i s e d b y the d i v e r s i o n o f the p o l l u t e d P i n h e i r o s R i v e r , to service the d e m a n d o f the C u b a t a o energy plant. C o m p l e m e n t i n g the picture, the u r b a n e x p a n s i o n o f Greater  102  Sao P a u l o w a s already i n v o l v i n g the borders o f the reservoir a n d threatening its u t i l i z a t i o n for water s u p p l y . T h e m a i n reservoirs a n d rivers are s h o w n i n F i g u r e 4.1 b e l o w .  (LELEO C O L O C A R O M A P A AQUI)  PUBLIC W A T E R POLICIES In 1975  p r o t e c t i o n p o l i c i e s for the water resources  o f the r e g i o n w e r e i m p l e m e n t e d .  The  W a t e r s h e d P r o t e c t i o n L e g i s l a t i o n was d e v i s e d to c o n t r o l the use a n d o c c u p a t i o n o f l a n d o n the tributaries' slopes o f the m e t r o p o l i t a n watersheds. A separation b e t w e e n the t w o arms o f the B i l l i n g s R e s e r v o i r was b u i l t to protect part o f the reservoir f r o m p o l l u t i o n , a n d m o r e recently the State C o n s t i t u t i o n established a date for the end o f the d i v e r s i o n o f R i v e r P i n h e i r o s into the B i l l i n g s R e s e r v o i r . These w e r e the i m m e d i a t e measures  to a v o i d the loss (and  eventually  recover) the B i l l i n g s R e s e r v o i r as a water resource for the S P M A .  A l s o i n 1975, w o r k began o n the c o n t r o v e r s i a l S A N E G R A N , the sewage treatment s y s t e m for Greater Sao P a u l o , f i n a n c e d b y the H o u s i n g N a t i o n a l B a n k ( B N H ) . It w a s d e s i g n e d to discharge effluent into a watershed protected b y l a w - the B i l l i n g s R e s e r v o i r - i n clear v i o l a t i o n o f the legislation just approved.  In 1982, m a n a g e m e n t p o l i c i e s were i m p l e m e n t e d for the water resources o f the H i g h T i e t e B a s i n , e s p e c i a l l y for the c o n t r o l o f f l o o d i n g and p o l l u t i o n . I n i t i a l l y , a l l the f l o w o f the T i e t e a n d P i n h e i r o s R i v e r s , a n d consequently, a l l their p o l l u t i o n l o a d , was d i s c h a r g e d into M e d i u m T i e t e (operation sanitation) to reduce the p o l l u t i o n o f the B i l l i n g s R e s e r v o i r . S u b s e q u e n t l y , the n o r m a l  103  f l o w o f these rivers a n d correspondent p o l l u t i o n l o a d were d i v i d e d i n equal parts b e t w e e n the B i l l i n g s a n d P i r a p o r a R e s e r v o i r s (balanced operation). D u r i n g the r a i n y season, the f u l l p u m p i n g capacity towards B i l l i n g s was set i n m o t i o n , and a l l the f l o w capacity liberated t o w a r d s M e d i u m T i e t e ( f l o o d i n g operation). D u r i n g the d r y season, the total f l o w o f the Tiete R i v e r a b o v e the j u n c t i o n w i t h the P i n h e i r o s was diverted to the B i l l i n g s R e s e r v o i r , to facilitate the w o r k deepening the T i e t e c h a n n e l .  104  of  F i g u r e 4.1 — Tiete B a s i n Source: Violich, 1987  Water supply policy was intended to protect all the usable water resources in metropolitan Sao Paulo. Its tool was, mainly, watershed protection legislation, that made viable the multiple and alternate uses of the water resources of the High Tiete Basin. If these resources become polluted,  105  they w i l l n o l o n g e r be suitable for c o n s u m p t i o n . C l e a r l y , the t w o sets o f p u b l i c p o l i c i e s w e r e not compatible.  E n e r g y p o l i c y preserved the i n v e r s i o n s o f the R i v e r s Tiete and P i n h e i r o s , a n d the p u m p i n g o f the p o l l u t e d P i n h e i r o s waters into the B i l l i n g s R e s e r v o i r , w i t h the objective o f generating electricity i n the C u b a t a o plant. Its t o o l w a s the 'balanced operation' supported b y the d e c i s i o n o f the Federal Accordance  C o m m i t t e e between  the M i n i s t r y o f E n e r g y w i t h the Sao P a u l o  State  g o v e r n m e n t (the h i g h e r management i n s t i t u t i o n o f water resources w i t h i n the H i g h T i e t e B a s i n ) . T h i s p o l i c y j e o p a r d i z e d one o f the watersheds protected b y l a w , b y p u m p i n g P i n h e i r o s R i v e r into the B i l l i n g s R e s e r v o i r .  F o r sewage treatment, p u b l i c p o l i c y a l l o w e d the discharge o f effluent f r o m the A B C  1 0  region  treatment station into the same protected reservoir.  U n t i l 1982, a l m o s t a l l the available water f r o m the H i g h Tiete B a s i n , except for 3 m - V s , w a s p u m p e d into B i l l i n g s R e s e r v o i r w i t h the objective o f generating electricity i n C u b a t a o . T h e state g o v e r n m e n t t h e n d e c i d e d to stop the i n v e r s i o n except d u r i n g f l o o d i n g times i n order to r e c o v e r the B i l l i n g s . T h e result was a sensible r e d u c t i o n o f the anaerobic p o r t i o n o f the B i l l i n g s r e s e r v o i r and the increased p o l l u t i o n o f the P i r a p o r a reservoir.  I n response to protest f r o m the p o p u l a t i o n l i v i n g i n the m a r g i n s o f the m e d i u m T i e t e , e s p e c i a l l y i n P i r a p o r a t o w n , the f l o w o f the H i g h Tiete B a s i n a n d its p o l l u t i o n l o a d w a s d i v i d e d into equal  106  parts between B i l l i n g s a n d P i r a p o r a R e s e r v o i r s . T h i s left b o t h reservoirs p o l l u t e d a n d a m p l i f i e d the a v a i l a b i l i t y o f water for electricity generation i n Cubatao.  S o , w h i l e p u m p i n g persisted, the p r o t e c t i o n o f the reservoir, at least i n its central water b o d y , w o u l d o n l y be p o s s i b l e i f p o l l u t i o n w e r e reduced i n the t w o r i v e r s : P i n h e i r o s a n d Tiete. T h i s w o u l d be v e r y d i f f i c u l t to achieve, because the 7.2 rn^/s p o s s i b l e f l o w to be treated w a s b e y o n d the c a p a c i t y o f the e x i s t i n g sewage treatment station. T h e v o l u m e o f d i s t r i b u t e d water, a n d c o n s e q u e n t l y the v o l u m e o f sewage to be treated, w a s bigger than the 31.5 m - V s o f m a x i m u m c a p a c i t y o f the central collector.  E l e c t r i c i t y p r o d u c e d i n C u b a t a o electricity m a y be i n s i g n i f i c a n t w i t h i n the energy s y s t e m o f the Southeast r e g i o n o f the country. H o w e v e r , the electricity s u p p l y s y s t e m o f the S P M A , w i t h its c a p a c i t y p r a c t i c a l l y saturated, has depended o n electricity f r o m C u b a t a o , a n d therefore, o n p o l l u t e d waters b e i n g p u m p e d into the B i l l i n g s R e s e r v o i r .  W h o s e interests d i d these p o l i c i e s serve? T h e y d i d not protect the water s u p p l y ; that needed a l l the water resources available w i t h i n the m e t r o p o l i t a n r e g i o n not c o m p r o m i s e d b y p o l l u t i o n . T h e y d i d n o t h e l p the p o p u l a t i o n l i v i n g i n the m a r g i n s o f the reservoirs, a n x i o u s f o r d e c o n t a m i n a t i o n o f the waters. B u t they d i d benefit the energy p r o d u c t i o n system, w h i c h depended o n the a v a i l a b i l i t y o f water f o r generating electricity i n C u b a t a o .  A B C : Santo Andre, Sao Bernardo and Sao Caetano are municipalities at the Southeastern part of the metropolitan area. 10  107  I n the context o f scarcity o f water to s u p p l y the m e t r o p o l i t a n p o p u l a t i o n , and increased u r b a n g r o w t h t o w a r d watershed areas, the conflict between water s u p p l y and e l e c t r i c i t y  generation  presented a g l o o m y scenario o f p u b l i c p o l i c i e s serving v e r y n a r r o w interests.  T h e focus o f the p u b l i c p o w e r d o m i n a t e d this question. T h e procedure w a s to a v o i d c o n f r o n t a t i o n b e t w e e n the parties i n c o n f l i c t or c o n t r a d i c t i o n , b y treating each side's p r o b l e m i n i s o l a t i o n , as t h o u g h it w e r e separate f r o m the other ones, thus m a i n t a i n i n g c o n t r o l b y p u b l i c p o w e r .  Illustrative o f this w a s the sector d i v i s i o n o f watersheds p r o b l e m :  •  T h e management o f the H i g h Tiete B a s i n water resources, i n v o l v i n g the f l o w c o n t r o l o f T i e t e R i v e r , c a r r i e d out b y the C o m m i t t e e o f the A g r e e m e n t between the F e d e r a l M i n i s t r y o f E n e r g y a n d the State o f Sao P a u l o government.  •  T h e treatment o f sewage f r o m Greater Sao P a u l o , w h i c h used water bodies i n the H i g h T i e t e B a s i n to dilute sewer discharged ' i n natura' and to dilute effluent  f r o m sewer  treatment  stations, m a n a g e d b y the state sanitation p u b l i c c o r p o r a t i o n ( S A B E S P ) . •  T h e water s u p p l y o f the S P M A , w h i c h designates a v a i l a b l e water resources to s u p p l y the m e t r o p o l i t a n area, m a n a g e d b y S A B E S P .  •  T h e p r o t e c t i o n o f the S P M A water resources, i n c l u d i n g c o n t r o l over o c c u p a t i o n o f tributaries slopes o f the m e t r o p o l i t a n watersheds, c o n t r o l l e d b y the H o u s i n g a n d U r b a n D e v e l o p m e n t a n d E n v i r o n m e n t Secretariats, and by the state e n v i r o n m e n t a l t e c h n i c a l c o n t r o l p u b l i c c o r p o r a t i o n (CETESB).  108  T H E WATERSHEDS PROTECTION The S P M A  a n d its p o p u l a t i o n c o m p o s e  an e n v i r o n m e n t system i n w h i c h a l l elements  are  interrelated a n d m u t u a l l y dependent i n processes o f interchange o f energy a n d matter: humans' presence is d e c i s i v e . I n this ecosystem, the h y d r o l o g i c a l c y c l e has been altered. T h e d e s t r u c t i o n o f the natural vegetal c o v e r - the A t l a n t i c Forest - has reduced e v a p o r a t i o n - t r a n s p i r a t i o n a n d c o n s e q u e n t l y the h u m i d i t y present i n the air. S o i l i m p e r m e a b i l i t y has r e d u c e d i n f i l t r a t i o n a n d c o n s e q u e n t l y the v o l u m e o f water stored i n the s u b - s o i l . Surface i m p e r m e a b i l i t y a n d rivers c h a n n e l i n g have increased the speed o f water drainage a n d r e m o v a l o f water f r o m the ecosystem. W a t e r bodies have  been altered. T h e quantity o f f o r e i g n matter entering water bodies  is  n o t i c e a b l y larger t h a n their capacity to assimilate. I n particular, d e c o m p o s i t i o n o f d o m e s t i c sewage, r i c h i n o r g a n i c matter, has reduced the l e v e l o f o x y g e n d i s s o l v e d i n the water, a l t e r i n g p r o f o u n d l y the structural character o f aquatic fauna a n d f l o r a  T o guarantee the actual a n d future water s u p p l y o f the r e g i o n , it is necessary to protect the watersheds against the effects o f h u m a n o c c u p a t i o n a r o u n d their borders. A l s o , r i v e r s , streams and u n d e r g r o u n d water, w h i c h together w i t h the reservoirs c o m p r i s e the r e g i o n a l water resources, n e e d to be protected. T h u s , p r o t e c t i o n o f watersheds also i n v o l v e s p r o t e c t i o n o f their drainage basins, a m o r e extensive area than just the water bodies per  109  se.  L e g i s l a t i o n f o r the p r o t e c t i o n o f watersheds w a s a p p r o v e d between 1975 a n d 1 9 7 7 " . A l s o the State C o n s t i t u t i o n o f 1989 i n c l u d e d d i s p o s i t i o n s f o r the p r o t e c t i o n o f watersheds, i n c l u d i n g the B i l l i n g s R e s e r v o i r (see A p p e n d i x A f o r s u m m a r y o f L a w s , decrees a n d l e g i s l a t i o n changes). T h e l e g i s l a t i o n a n d its amendments b a s i c a l l y referred to:  •  P r o t e c t i o n o f water resources,  b y means  o f sanitary codes,  water  codes,  norms  against  p o l l u t i o n , l a n d use a n d o c c u p a t i o n controls. •  U s e a n d management o f water resources, f o r e x a m p l e : h y d r o p o w e r , s u p p l y water, d a m m i n g r i v e r s , height o f dams, m i n i m u m outflows.  •  C r e a t i o n , o r g a n i z a t i o n a n d m o d i f i c a t i o n o f p u b l i c agencies l i n k e d to the use a n d p r o t e c t i o n o f water resources, p l a n n i n g a n d c o n t r o l m e c h a n i s m s .  T H E D E B A T E ABOUT T H E WATERSHED PROTECTION E x t e n s i v e debate a c c o m p a n i e d the l e g i s l a t i o n f o r m e t r o p o l i t a n watershed p r o t e c t i o n . F o r a l m o s t a decade, it i n v o l v e d not o n l y the p u b l i c sector, but also citizens groups a n d u n i v e r s i t i e s . S e v e r a l g o v e r n m e n t institutions s u c h as the Secretariat f o r M e t r o p o l i t a n Issues, the D e l i b e r a t i o n C o u n c i l o f Greater S a o P a u l o ( C O D E G R A N ) ,  a n d the C o n s u l t a t i v e C o u n c i l o f Greater S a o P a u l o  ( C O N S U L T I ) w e r e i n v o l v e d , w i t h m e m b e r s o f the state p a r l i a m e n t i n c o n t i n u o u s about the details a n d scope o f the several l a w s , and decrees a n d their respective  discussions  amendments.  ' It was not the first state or federal legislation aimed at protecting watersheds and the environment, but was the first legislation that established control of land use and occupation for the protection of water resources. State Laws 889/75 and 1172/76, the decrees 9717/77 and 12219/78 hold the specific dispositions, also Laws 2177/79, 3286/82, and 3746/83 and the decree 15037/80. 1  110  C i t i z e n s ' o r g a n i z a t i o n s , that u n i t e d the residents o f the areas under d i s c u s s i o n , w e r e v o c a l about their interests, not a l w a y s h a r m o n i o u s l y because they represented different p o p u l a t i o n strata a n d different g e o g r a p h i c a l locations.  It is p o s s i b l e , as G r o n s t e i n points out that this p r e d o m i n a n c e o f ' o f f i c i a l v i e w s ' w a s due to l a c k o f f o r m a l channels o f c o m m u n i c a t i o n a n d expression, since a l l this happened t o w a r d s the end o f the authoritarian r e g i m e i n B r a z i l . S o m e o f the c i v i l society manifestos w e r e not e v e n d i r e c t l y l i n k e d to the e n v i r o n m e n t :  "(_), but they are around basic questions of survival, originatedfrom the way the settlements of these populations have happened within the watershed protection area - the illegal settlements, the slums, the invasions - or from the ownfightfor a better housing, in broader terms, or from thefightfor land within the watershed area in narrower terms. "(Gronstein et al, 1985) T h u s , the l e g i s l a t i o n w a s extensively discussed, c r i t i c i z e d a n d amended. E v e n s o , i t d i d n o t a c c o m p l i s h its a i m : to protect the water resources o f the m e t r o p o l i t a n r e g i o n i n a sustainable manner. Its i m p o s i t i o n s , far too d i f f i c u l t to i m p l e m e n t a n d m o n i t o r , w e r e u n l i k e l y to b e respected. T h e state apparatus w a s totally unprepared to f o l l o w its o w n l a w .  In response to the pressure o f r a p i d u r b a n i z a t i o n , i n S a o P a u l o i n particular, since the 1970s the state has started to m o d e r n i z e its apparatus for the management o f u r b a n centers. It has instituted the first m e t r o p o l i t a n regions a n d i n i t i a t e d a n e t w o r k o f agencies w i t h c o m p l e m e n t a r y mandates: to address the i n s u f f i c i e n c y o f p u b l i c services already e x i s t i n g , as w e l l as to prepare f o r future demands; a n d to cope w i t h the e n v i r o n m e n t a l i m p a c t o f u r b a n g r o w t h . T h e e n v i r o n m e n t a n d basic sanitation w e r e r e c o g n i z e d as p r i m o r d i a l issues to the f u n c t i o n i n g o f u r b a n centers. U r b a n  111  g r o w t h a n d p o l l u t i o n were a c k n o w l e d g e d  as p a r a l l e l p h e n o m e n a  i n the w h o l e  process  of  u r b a n i z a t i o n . T o the energy demands f r o m past decades for i n d u s t r i a l i z a t i o n w e r e added d r i n k i n g water demands, a n d the need to treat sewage. I n the cities, the non-existence o f sewer systems w a s t r a n s f o r m i n g water bodies into a natural absorber o f the sewage, i n a v i c i o u s c i r c l e o f problems.  Organizations involved in the Watershed Issues in Metropolitan Sao Paulo Federal Level - Ministry o f Interior - M i n i s t r y o f M i n i n g and Energy  State Level Metropolitan System o f Planning and Management — S P A M - Secretariat for Metropolitan Issues — S N M - Deliberation Council o f Greater Sao Paulo — C O D E G R A N - Consultative C o u n c i l o f Greater Sao Paulo — C O N S U L T I - Metropolitan Planning Corporation for Greater Sao Paulo — E M P L A S A Secretariat for Works and the Environment — S O M A - Department o f Water and Sewage — D A E E - Public Corporation for Supply/Management/Distribution o f Electric Energy - E L E T R O P A U L O - P u b l i c Corporation for Technological Control o f Pollution - C E T E S B - P u b l i c Corporation for Supply/management/ Distribution o f Water and Sanitation - S A B E S P - Public Corporation for State Generation o f Energy - C E S P - Highways and Roads State Department - D E R Secretariat o f Issues Related to Transportation - P u b l i c Corporation for the State Railways - F E P A S A Governors o f Sao Paulo State since 1975  Municipal Level - Secretariat for Urban Planning - S E M P L A - Secretariat for Housing - S E H A B - Public Corporation for Social Housing - C O H A B M a y o r s o f Metropolitan Municipalities  Community Organizations: -  Comissao de Defesa D a B i l l i n g s ( Group for B i l l i n g s Reservoir Protection) Sociedade A m i g o s da R i v i e r a Paulista Friends o f the R i v i e r a Paulista Neighborhood) Comissao de Defesa da Guarapiranga (Group for Guarapiranga Reservoir Protection) Comissao da Defesa da B a c i a da Guarapiranga (Group for Guarapiranga Basin Protection) Associacao de Defesa do Tiete (Group for the Tiete R i v e r Protection)  112  A w a r e n e s s o f the i m p e n d i n g collapse o f large urban centers made the state p a y m o r e attention to its c o m p e t e n c y i n r e l a t i o n to basic sanitation. E m p h a s i s was directed to f i n a n c i a l v i a b i l i t y o f projects a n d p r o g r a m s . T h e F i n a n c i a l S y s t e m for S a n i t a t i o n ( S F S ) a n d the N a t i o n a l P l a n for S a n i t a t i o n ( P L A N A S A ) w e r e created, a l o n g w i t h measures a n d n o r m s for p o l l u t i o n c o n t r o l . I n 1975, the federal M i n i s t r y o f M i n i n g and E n e r g y i n i t i a t e d p o l i c i e s e m p h a s i z i n g e n v i r o n m e n t preservation. T h i s w a s the i n i t i a l step towards p u b l i c r e s p o n s i b i l i t y for p r o t e c t i o n o f S P M watersheds.  T h e p u b l i c p o s i t i o n o n watershed protection i n Sao P a u l o has v a r i e d w i t h each g o v e r n m e n t i n office, s o m e t i m e s p a y i n g attention to the expectations o f the preservationist m o v e m e n t , a n d at other t i m e s l i s t e n i n g to the interests o f w e l l d e f i n e d groups, s u c h as constructions c o m p a n i e s a n d real estate speculators.  A c c o r d i n g to G r o n s t e i n (1985), even the government that a c t u a l l y p r o p o s e d the p r o t e c t i o n l e g i s l a t i o n , i n c o r p o r a t e d contradictions, because at the same t i m e that it w a s p r o p o s i n g p r o t e c t i o n o f the watersheds it was p r o p o s i n g a project, the i l l - f a t e d S A N E G R A N , that w o u l d endanger the B i l l i n g s Reservoir.  State g o v e r n m e n t institutions either p r o p o s e d l i m i t i n g the protected area or s t i m u l a t e d the p u b l i c c a m p a i g n for d e - p o l l u t i o n o f the reservoirs, p o s i t i o n s that represented the o v e r a l l p o l i t i c a l orientation o f the P a r t y i n p o w e r at the t i m e .  U n t i l its e x t i n c t i o n , the Secretariat for M e t r o p o l i t a n Issues either a f f i r m e d the need to a p p l y the p r o t e c t i o n l e g i s l a t i o n as it was, or defended its r e f o r m u l a t i o n , therefore r e f l e c t i n g the p o s i t i o n o f  113  different governors. A f t e r e x a m i n i n g newspaper i n t e r v i e w s and articles, G r o n s t e i n s h o w s several perspectives towards the matter that w e r e adopted b y the Secretariat. E v e n details o f m o n i t o r i n g and p o l i c i n g the protected area were p e r i o d i c a l l y put f o r w a r d a n d d i s c u s s e d a c c o r d i n g to the s p e c i f i c v i e w o f the subject prevalent i n that a d m i n i s t r a t i o n . Therefore, it has b e e n d i f f i c u l t to f o r m u l a t e a coherent a n d effective p o l i c y .  T h e Greater Sao P a u l o D e l i b e r a t i v e C o u n c i l ( C O D E G R A N ) was a state b o d y that integrated the a d m i n i s t r a t i v e s y s t e m o f the m e t r o p o l i t a n areas. It was  c o m p o s e d o f the  state  governor,  secretariats, Sao P a u l o ' s m a y o r a n d one representative f r o m the other m u n i c i p a l i t i e s i n the M e t r o p o l i t a n R e g i o n , i n accordance w i t h the E x e c u t i v e p o s i t i o n . Its g o a l w a s to protect the C o a s t a l slopes, water reservoirs a n d the coast zone o f m o u n t a i n s f r o m u r b a n i z a t i o n , a v o i d i n g deterioration o f their natural e c o l o g i c a l c o n d i t i o n .  T h e M e t r o p o l i t a n C o n s u l t a t i v e C o u n c i l o f Greater Sao P a u l o ( C O N S U L T I ) was a state b o d y that integrated the m e t r o p o l i t a n a d m i n i s t r a t i o n , b r i n g i n g together the m a y o r s o f m u n i c i p a l i t i e s . It m o b i l i z e s t w i c e a r o u n d watershed issues. N e a r the b e g i n n i n g o f its a c t i v i t i e s , i n 1975, supported the p r o t e c t i o n l e g i s l a t i o n . S e v e r a l years later, i n 1983,  it served  as a  it  special  c o m m i s s i o n to study a n d propose measures to i m p r o v e watershed p r o t e c t i o n l e g i s l a t i o n , a n d its a p p l i c a t i o n . Its report is s u m m a r i z e d i n the section that e x a m i n e s the l e g i s l a t i o n .  S o m e c o m m u n i t y organizations h a d s p o k e n out frequently, i n response to a n n o u n c e m e n t s o f p r o g r a m s a n d projects for the areas. T h e i r manifestos reflected the p o l a r i z a t i o n o f o p i n i o n s about the theme. T h e " C o m i s s a o de D e f e s a d a B i l l i n g s " , "Sociedade A m i g o s d a R i v i e r a P a u l i s t a a n d  114  "Comissao  de D e f e s a  d a G u a r a p i r a n g a " were i n favor  o f the watersheds  protection. T h e  " C o m i s s a o de D e f e s a d a B a c i a d a G u a r a p i r a n g a " defended the interests o f residents w i t h i n this b a s i n . T h e " A s s o c i a c a o de D e f e s a d o T i e t e " w a s against p r o t e c t i o n o f the watersheds  (for a  s u m m a r y o f their p o s i t i o n s , see A p p e n d i x A ) .  There w a s a m u l t i t u d e o f v i s i o n s o f h o w to protect m e t r o p o l i t a n water resources. T h e d i v e r s i t y w a s at t i m e s , a n obstacle to establishing a c o m m o n v i s i o n l i k e l y to be i m p o s e d o n the p u b l i c p o w e r . H o w e v e r , the constant outcry w a s s o m e h o w efficient. It kept the p u b l i c aware o f the c o m p l e x p r o b l e m o f water resources protection, and u n d o u b t e d l y exerted c o n s i d e r a b l e influence u p o n the eventual effort to i m p r o v e the l e g i s l a t i o n .  PUBLIC POLITICS FOR T H E PROTECTION OF T H E WATERSHEDS T h e m o s t c o m m o n n o t i o n o f p o l i t i c s defines it as a c o m p e t i t i o n f o r a mandate to exercise p o w e r , or party p r o s e l y t i s m , o r the a b i l i t y to manage h u m a n relations, o r sagaciousness, deceitfulness,  o r mendaciousness  ( B u a r q u e de H o l l a n d a F e r r e i r a , s/d).  shrewdness,  A c c o r d i n g to these  d e f i n i t i o n s , p o l i t i c s is construed as e m a n a t i o n o f p o w e r , w i t h a subject p l a i n l y d e f i n e d - the p u b l i c agent - a n d w i t h the objective also clearly determined - the g a i n o f this agent. B u t it i s n o t i n this sense that p o l i t i c s are understood here.  P o l i t i c s c a n be understood as the c o l l e c t i o n o f acts a n d attitudes that guard relations w i t h the government through power action  (politic), o r as a h u m a n a c t i o n that i n v o l v e s a p r o g r a m , a concerted  (policy), o r as a group o f techniques o r procedures to o b t a i n success ( B r i t o , 1986), o r as  115  "the f r a m e w o r k i n w h i c h society deals w i t h its contradictions a n d unevenness  between  its  different instances" ( C a s t e l l s 1983).  H o w e v e r , these conceptions o f p o l i t i c s are i n c o m p l e t e . I n the first d e f i n i t i o n , p o l i t i c s has a d e f i n e d subject - the state - but there is n o d e f i n i t i o n o f the objective. I n the s e c o n d a n d t h i r d assertions, p o l i t i c s has a defined objective - the concerted a c t i o n or the group o f techniques - but the subject is not defined. I n the last, the objective  is c l e a r l y d e f i n e d - d e a l i n g w i t h the  c o n t r a d i c t i o n that c o m p o s e s society - but the subject is vague - society.  P o l i t i c s c a n also be understood as the "group o f actions a n d o m i s s i o n s that m a n i f e s t a s p e c i f i c m o d a l i t y o f state i n t e r v e n t i o n i n r e l a t i o n to a q u e s t i o n that c a l l attention, interest or m o b i l i z e other sectors" ( O s z l a k & O ' D o n n e l , 1976). F r o m this perspective, p o l i t i c s has a c l e a r l y d e f i n e d objective - i n t e r v e n t i o n i n a specific issue - a n d has a subject also c l e a r l y established - the state. In this m o d e l , the state functions as a n independent actor, r e m o v e d f r o m the parts i n v o l v e d , or f r o m the objective o f its intervention. H o w e v e r , the state c a n be u n d e r s t o o d as the c o n d e n s a t i o n o f a s o c i a l f o r m a t i o n , that excludes its absence i n r e l a t i o n to the objectives where its exerts its p o w e r ( P o u l a n t z a s , 1986). U n d e r these c o n d i t i o n s , state interventions are not m o t i v a t e d o n l y b y questions w h i c h c a l l its attention, but also b y the parts i n c o n f l i c t or c o n t r a d i c t i o n , w h i c h are l o c a t e d w i t h i n itself, the state.  P o l i t i c s c a n also be understood as the "residue f r o m the interaction b e t w e e n c o n f l i c t i n g g r o u p s " (Lowi,  1976). I n this m o d e l , the subjects  are c l e a r l y defined as the parts i n c o n f l i c t or  116  c o n t r a d i c t i o n ; the objective is clearly defined as the r e g u l a t i o n o f c o n f l i c t or c o n t r a d i c t i o n ; a n d the state is o n l y a spectator, c a r r y i n g out the r e s o l u t i o n reached b y the i n v o l v e d parts.  H o w e v e r , as L o j k i n e points out, p o l i t i c s is not o n l y "regulation-neutralization o f c o n t r a d i c t i o n s o f a s o c i a l f o r m a t i o n " , because the state is present w i t h its i m m e n s e j u d i c i a l and f i n a n c i a l apparatuses, w h i c h g i v e s to it the capacity to "determine the i m m e d i a t e objects o f c o n f l i c t " , or the capacity to participate a c t i v e l y i n the f o r m u l a t i o n o f p u b l i c p o l i c y ( L a m o u n i e r , 1986).  S o , p o l i t i c s is not o n l y a group o f actions and o m i s s i o n s that manifests i t s e l f a c c o r d i n g to a certain m o d a l i t y o f i n t e r v e n t i o n f r o m the state i n relation to a q u e s t i o n n o r is it s i m p l y the residue f r o m i n t e r a c t i o n b e t w e e n c o n f l i c t i n g groups. P u b l i c p o l i t i c s is the result o f i n t e r a c t i o n b e t w e e n state a n d parts i n v o l v e d i n c o n f l i c t or c o n t r a d i c t i o n . I n this m o d e l , p o l i t i c s has a clear subject, the state and the c o n f l i c t i n g parts, and has an objective also clearly defined, as the r e g u l a t i o n o f the c o n f l i c t or c o n t r a d i c t i o n .  I n the case o f watershed protection, p u b l i c p o l i t i c s has, as subjects, the users o f the  watersheds,  the l a n d owners and users o f protected watershed basins, and the state, that defines the l a n d use w i t h i n the protected watersheds basins as its (conflicting) objective.  P u b l i c p o l i t i c s can be c l a s s i f i e d as distributive, regulatory  and re-distributive ( L o w i ,  1986).  D i s t r i b u t i v e p o l i t i c s is characterized b y resource de-aggregation, and b y its a l l o c a t i o n to i s o l a t e d units w i t h o u t c o n f o r m i t y to any general criteria. F a v o u r e d and n o n - f a v o u r e d do not c o n f l i c t . O p p o s i t i o n is n e u t r a l i z e d b y benefits. Its agent is the p u b l i c distributor o f the benefits. E a c h actor  117  l o o k s s o l e l y for its o w n benefit w i t h o u t o p p o s i n g benefit to others. T h i s m o d e l c a n also be c a l l e d "clientelism".  Regulatory  politics involves  benefits  less  de-aggregated,  and problematized  or  disputed.  F a v o u r e d a n d n o n - f a v o u r e d c o n f l i c t , a n d there is a direct c h o i c e between t h e m . Its arena is the representative institutions o f society w i t h i n the state apparatus.  R e - d i s t r i b u t i v e p o l i t i c s i n v o l v e s relationships between b r o a d s o c i a l categories. It is characterized b y n e g o t i a t i o n between  f a v o u r e d a n d n o n - f a v o u r e d . Its agent is the state that gathers  and  d e v e l o p s the c o r r e l a t i o n o f forces w i t h i n society.  I n reality, these three categories o f p u b l i c p o l i t i c s , or these three p o l i t i c a l agents as d e f i n e d b y L a m o u n i e r , c a n be c o n s i d e r e d as one: regulatory p o l i t i c s , w h i c h varies  a c c o r d i n g to  the  p r o b l e m a t i z a t i o n o f the benefit. W h e n the issue i n v o l v e s interests shared a m o n g s o c i a l classes, class fractions or d o m i n a n t categories f r o m different p r o d u c t i o n m o d e s , its r e s o l u t i o n is a c h i e v e d b y c o n f r o n t a t i o n between actors a n d c r y s t a l l i z e d b y p u b l i c p o l i t i c i e s . W h e n the issue i n v o l v e s fragmented beneficiaries, the arbitration o f the state substitute the c o n f r o n t a t i o n o f the parts, a n d expresses, at least i n discourse, the r e s o l u t i o n o f conflicts.  I n the case o f watershed p r o t e c t i o n i n Sao P a u l o , p u b l i c p o l i t i c s h a d the appearance o f regulatory p o l i t i c s because it was a p p r o v e d b y a legislative b o d y a n d b y the State C o n s t i t u t i o n . H o w e v e r , it w a s , i n fact, d i s t r i b u t i v e p o l i t i c s . O n e o f the interest groups, the o w n e r s a n d users o f the l a n d w i t h i n the protected area was fragmented a n d d i s o r g a n i z e d , a n d the other part w a s the state i t s e l f  118  f u n c t i o n i n g as the operative agent o f the infrastructure systems and energy o f Greater Sao P a u l o , and u l t i m a t e l y the c o n f l i c t was defined and regulated b y the state itself.  T h i s e x p l a i n s the arbitrary and case-by-case treatment o f conflicts w i t h the o w n e r s and users o f the l a n d w i t h i n the b a s i n . T h i s pattern characterizes  distributive p o l i t i c s , a n d o c c u r s i n the  concession o f metropolitan licensing.  I n its a p p l i c a t i o n i n the u r b a n space, p u b l i c p o l i t i c s has three d i m e n s i o n s :  •  A planning dimension.  •  A n operational d i m e n s i o n , that is the group o f real practices that a l l o w s the central state a n d l o c a l state apparatus to intervene f i n a n c i a l l y and j u r i d i c a l l y i n the o r g a n i z a t i o n o f u r b a n space.  •  A n u r b a n d i m e n s i o n that condenses i m p l e m e n t s and measures the s o c i a l effects i n the space o f u r b a n planning/urban operations c o m b i n a t i o n .  The  planning  dimension  as  defined  by  Castells  corresponds  to  "  ideological  texts  that  characterize the p o l i t i c a l i n t e r v e n t i o n as directed not towards the u r b a n system, but towards the general i d e o l o g i c a l instance". I n the case o f the protection o f the Sao P a u l o watersheds,  it  encompasses the discourse about this protection (Castells, 1983).  T h e operational d i m e n s i o n , i n a d d i t i o n to the j u d i c i a l d i m e n s i o n o f r e g u l a t i o n , i n v o l v e s the group o f j u d i c i a l tools and f i n a n c i a l m e c h a n i s m s  o f the state apparatus. I n the case o f  watershed  p r o t e c t i o n , it i n v o l v e s o n l y l e g i s l a t i o n for watershed protection, a d m i n i s t r a t i v e p o l i c i e s for l a n d use w i t h i n the watershed area, and the constitutional instrument related to p r o h i b i t i o n o f p u m p i n g p o l l u t e d waters into the reservoir.  119  T h e u r b a n d i m e n s i o n is the c o m b i n e d effect o f the discourse a n d instruments a p p l i e d to the u r b a n i z e d territory o f the b a s i n . It encompasses the i m p a c t o f the discourse a n d l e g i s l a t i o n o f watershed p r o t e c t i o n u p o n u r b a n expansion. It also includes the i m p a c t , i n the adjacent areas o f the reservoir, f r o m this discourse a n d f r o m p r o h i b i t i o n o f p u m p i n g p o l l u t e d water into the reservoir.  T H E W A T E R S H E D PROTECTION DISCOURSE T h e watershed p r o t e c t i o n discourse a f f i r m e d that the water resources o f the m e t r o p o l i t a n r e g i o n w e r e i n s u f f i c i e n t f o r the future d e m a n d o f Greater S a o P a u l o , a n d that these resources are threatened b y the u r b a n e x p a n s i o n o f the m e t r o p o l i s .  T h e h y d r o balance presented i n the legislative debate about the p r o p o s e d l a w 241/85, w h i c h o r i g i n a t e d the L a w 898/85, f o r c e f u l l y demonstrated the scarcity o f water resources  f o r the  region's s u p p l y :  "Nowadays the water demands for domestic use is around 28 m?/s, and the industries are almost selfsufficient. Around 1985, it is estimated that the public system's demand including a more significant part of the industries' demand will be equal to the sum of the available water in the basin (39m^/s) and the existing reversions (10m?Is). In 1990, the demand will reach around 71n?/s. It is necessary, then, to start in a medium time span, to import water from neighborhood basins. " (Sao Paulo, Legislative Assembly, 1975) [my translation] The prognosis  o f c o m p r o m i s e d water resources  p o t e n t i a l l y useful  f o r d r i n k i n g water w a s  distressing i n v i e w o f i n c r e a s i n g u r b a n e x p a n s i o n w i t h i n watersheds i n the m e t r o p o l i t a n r e g i o n :  120  The continuous disorganized growth will lead to lose the remaining availability, as happened with 51 of the 90m3 of the Alto Tiete Basin, and will compromise the reversion schemes planned (69m?), once it is proposed the use - that the growth would impede - of the reservoirs from the Alto Tiete (Juqueri, Biritiba, Jundiai, Guarapiranga and Ponte Nova) as receptors of these reversions (Sao Paulo, Legislative Assembly, 1975)[my translation] I n order to protect these water resources, the discourse for watershed p r o t e c t i o n affirms that l a n d use c o n t r o l w a s indispensable:  "The implementation of the proposed measures in the law will permit the preservation, guaranteeing adequate land use, and expropriating land only exceptionally, for the availability of the 67,5m^/s additional: 32,5mA'/s from the Alto Tiete and 35m?'fs imported." (Sao Paulo, Legislative Assembly, 1975)[my translation] T h u s , the watersheds p r o t e c t i o n discourse e m p h a s i z e d the relative scarcity o f water resources to serve the m e t r o p o l i t a n r e g i o n ; it w a r n e d o f the r i s k o f u r b a n e x p a n s i o n t o w a r d the watersheds; and it preached the appropriate l a n d use for the p r o t e c t i o n o f a l l p o t e n t i a l l y usable watersheds f o r the m e t r o p o l i t a n s u p p l y .  A t that p o i n t , the c o n t r o v e r s y about the use o f water resources w a s p e r v a d i n g d i s c u s s i o n s about the situation. Therefore, a l l that w a s said about watershed p r o t e c t i o n d i d not r e s o l v e the dispute o v e r water resources f r o m the A l t o Tiete B a s i n , because it d i d not decide h o w they w o u l d be used. It w a s p o s s i b l e that the protected water resources w o u l d be u s e d either to meet d e m a n d , or to generate electricity, i n spite o f their scarcity i n the m e t r o p o l i t a n r e g i o n .  121  water  T h e l a c k o f d e f i n i t i o n for the use o f protected resources made t h e m v u l n e r a b l e to be used, at any t i m e , for other ends. T h u s , the absence,of p u b l i c p o l i c i e s d e f i n i n g the use o f the A l t o T i e t e B a s i n waters w a s not f u l f i l l i n g their m a i n objective, the water s u p p l y o f Greater Sao P a u l o .  T H E APPARATUS FOR WATERSHED PROTECTION W i t h i n the B r a z i l i a n federation, states do n o t have a mandate to allocate water  resources.  Therefore, the S a o P a u l o State government had to restrict its watershed p r o t e c t i o n a c t i o n . T h e j u r i s d i c t i o n f o r d e c i d i n g the use o f water resources w a s a l w a y s federal, as c l e a r l y stated b y the J u d i c i a l A c t o f the F e d e r a l Supreme Justice C o u r t ( O E S P , 1984). It r e m a i n s a federal j u r i s d i c t i o n under the R e p u b l i c C o n s t i t u t i o n o f 1988:  Article 21 — It is the Union's mandate: XIX - to institute a national system of water resources management and to define criteria for the concession of real rights of use;  B u t the states have j u r i s d i c t i o n over health, i n c l u d i n g p r o t e c t i o n o f water resources.  This  mandate is d e f i n e d i n the same R e p u b l i c C o n s t i t u t i o n , a n d this c o n s t i t u t i o n a l r i g h t has g i v e n the state the c a p a c i t y to legislate i n matters c o n c e r n i n g e n v i r o n m e n t a l p r o t e c t i o n :  Article 23 - It is a common mandate of the Union, the States, Federal District and Municipalities: II - take care of the health and public assistance, of the protection and guarantee ofpeople with deficiency; VI - protect the environment and combat pollution in any form; Article 24 - It is a mandate of the Union, the States and the Federal District to concurrently legislate about:  122  VI-forests, hunting,fishing,fauna, flora, nature preservation, soil quality and natural resources preservation, environment protection and pollution control. L a w 898/75 c o n c r e t i z e d the protection o f the S P M A watershed. It legislated c o n t r o l o f " o p e n i n g o f r o a d access, s u b - d i v i s i o n s , b u i l d i n g s , as w e l l as the practice o f a g r i c u l t u r a l , c o m m e r c i a l , i n d u s t r i a l a n d leisure activities" ( A r t i c l e 30) i n the drainage basins o f the protected  watersheds,  t h r o u g h restrictions established by law.  T h u s , the operational d i m e n s i o n o f watershed protection p u b l i c p o l i c y w a s : d e f i n i t i o n o f the area to be protected; i m p o s i t i o n o f n o r m s related to l a n d use a n d o c c u p a t i o n , to s u b - d i v i s i o n s a n d o p e n i n g o f roads, to the i m p e r m e a b i l i z a t i o n o f surfaces, deforestation, a n d the c o l l e c t i o n a n d f i n a l destiny o f waste a n d sewage; d e f i n i t i o n o f the state agents f o r effective m a n a g e m e n t  of  these n o r m s .  Other p o s s i b i l i t i e s f o r the p r o t e c t i o n o f the watersheds were not taken into c o n s i d e r a t i o n . P u b l i c p o l i t i c s concentrated o n c o n t r o l o f h u m a n activities inside the drainage basins. O n l y three years after the p r o m u l g a t i o n o f the State C o n s t i t u t i o n  12  d i d p u b l i c p o l i c y f o r the watershed p r o t e c t i o n  take into c o n s i d e r a t i o n other instruments, e n d i n g the p u m p i n g o f p o l l u t e d waters, the discharges o f p o l l u t i n g substances into the reservoirs. S i m i l a r l y , other p o s s i b i l i t i e s f o r the c o n t r o l o f h u m a n activities w e r e n o t considered. E v e n the traditional strategy o f " e m p t y i n g " the b a s i n areas w a s  Still, in 1998, this disposition is controversial, as attested by a news report about a recent claim from the ELETROPAULO of the need to increase the water supply of the H. Borden Energy Station (O Estado de Sao Paulo, May 6, 1998). 12  123  a b a n d o n e d " o v e r c o m e b y the actual f i n a n c i a l i m p o s s i b i l i t y " ( O E S P , 1994) a n d " a p p l i c a b l e o n l y i n e x c e p t i o n a l character" (Sao P a u l o L e g i s l a t i v e A s s e m b l y , 1975).  I n fact, the protected area i n c l u d e s 55 percent o f the m e t r o p o l i t a n r e g i o n , a n d to e m p t y it is i m p o s s i b l e . T h i s does not m e a n , h o w e v e r , that e x p r o p r i a t i o n ( w h e n the state requires the use o f the land) is outdated, or that it s h o u l d be a p p l i e d o n l y i n e x c e p t i o n a l cases. L a w 1172/76 says that 0,5 percent o f the protected area m u s t be used for m e t r o p o l i t a n parks. T h e Sao P a u l o C i t y P l a n n i n g Secretariat h a d already considered creating a park between G u a r a p i r a n g a a n d B i l l i n g s , as a n effective instrument for the c o n t r o l o f u r b a n e x p a n s i o n i n the d i r e c t i o n o f the w a t e r s h e d s ' . 3  P u b l i c parks a n d e c o l o g i c a l reserves are legitimate reasons for e x p r o p r i a t i o n .  S o , the p u b l i c p o l i t i c s o f watershed p r o t e c t i o n restricts o n l y the o c c u p a t i o n o f drainage basins. Its object is to c o n t r o l the c o n f l i c t between users o f the watersheds (for water s u p p l y ) , a n d l a n d users. Its subjects are: the state p u b l i c a d m i n i s t r a t i o n ; the water services p r o v i d e r , S A B E S P (that integrates the a d m i n i s t r a t i v e apparatus o f the state government); o w n e r s a n d users o f the drainage basins.  L e g i s l a t i v e instruments d i d not consider the p o s s i b i l i t y that these water resources m i g h t be u s e d for other purposes that d i d not need watershed protection. T o a l l o w for this, it w o u l d not be sufficient to define the object a n d a l l subjects that needed p u b l i c p o l i t i c s as an instrument for watershed p r o t e c t i o n . A d m i n i s t r a t i v e p o l i c y regulating h u m a n a c t i v i t y i n areas s u r r o u n d i n g  124  protected watershed w a s necessary to the p r o t e c t i o n o f water resources, b u t n o t sufficient to guarantee the l i n k a g e o f these resources to the objective that j u s t i f i e d its p r o t e c t i o n . T h i s is a n aspect s e l d o m considered, and it has not been incorporated i n changes to l e g i s l a t i o n . It w a s also not clear the m u n i c i p a l i t i e s i n v o l v e d i n the p r o t e c t i o n were aware o f its s i g n i f i c a n c e .  P o s i t i o n s i n r e l a t i o n to watershed p r o t e c t i o n l a w s ranged f r o m i d e n t i f y i n g the issue to protective l e g i s l a t i o n . O n e extreme p o s i t i o n r e d u c e d watershed issues to a p r o b l e m o f l e g i s l a t i o n , w h i c h w o u l d use a u n i q u e instrument f o r preservation, a c k n o w l e d g i n g e x i s t i n g a n d r e c o g n i z e d aspects o f the situation: to preserve the water for s u p p l y b y the scanty o c c u p a t i o n a n d c o n t r o l o f the areas t h r o u g h l a w s . T h e other extreme p o s i t i o n , d e n o u n c i n g the l e g i s l a t i o n as i m p r a c t i c a l , i m p l i e d e x p a n s i o n o f the question. It p o i n t e d towards a total r e v i s i o n o f the l e g i s l a t i o n , a n d c o u l d indicate n e w w a y s o f seeing the question. W h a t w a s needed w a s a n e w v i s i o n that c o u l d p r o v o k e creative w a y s to recover a n d preserve the water resources o f the S P M A .  This issue is again in discussion, according to article in O Estado de Sao Paulo, June, 1998, defended by some agencies as a reasonable solution, and attacked by other as unrealistic and impossible to implement, especially in face of the construction of the Highway Orbital of SPMA, which crosses both Billings and Guarairnaga waterhseds. 13  125  CHAPTER 5 URBAN LAND AND WATERSHED PROTECTION INTRODUCTION T o have a secure h o m e i s one o f the most e n d u r i n g a n d c u l t u r a l l y w i d e - s p r e a d needs o f people. A sense o f d e p r i v a t i o n , insecurity a n d i s o l a t i o n seems to be c o m m o n i n m o s t societies w h e n need for h o u s i n g i s not met. T h i s ' e x p e c t a t i o n ' has e v o l v e d f r o m having a h o m e to actually owning a h o m e . T h e reasons, rationale and controversy s u r r o u n d i n g this expectation are b e y o n d the scope o f this w o r k , s t i l l i t m u s t be a c k n o w l e d g e d as s o m e t h i n g that goes b e y o n d the i n d i v i d u a l desire for ownership, a n d is a major source o f s o c i a l c o n f l i c t a n d e c o n o m i c h a r d s h i p for the p o o r i n the d e v e l o p i n g context. T h i s chapter examines b r i e f l y h o w l a n d issues a n d o w n e r s h i p have been e v o l v i n g i n the S P M A a n d h o w the W a t e r s h e d P r o t e c t i o n L a w has shaped the p r o v i s i o n o f h o u s i n g for the poor. B y freezing m o r e than h a l f o f the m e t r o p o l i t a n territory, the l e g i s l a t i o n has h a d a p r o f o u n d i m p a c t o n the settlement options o f the l o w e r i n c o m e p o p u l a t i o n , f r o m the w a y l a n d has been s u b d i v i d e d to h o w the p r o b l e m o f h o u s i n g p r o d u c t i o n has been r e s o l v e d .  B e c a u s e the l e g a l h o u s i n g market i n S P M A i n the nineties does not serve p o o r a n d l o w - i n c o m e  1 4  f a m i l i e s , this p o r t i o n o f the m e t r o p o l i t a n p o p u l a t i o n m u s t resort to irregular/illegal solutions i n the p e r i p h e r y , w i t h o u t infrastructure services and c o m m o n l y i n e n v i r o n m e n t a l l y r i s k y areas.  Less than US$1,000 per month.  126  B o t h g o v e r n m e n t a n d the private sector have s h o w n p r a g m a t i c disregard f o r the p r o b l e m d u r i n g decades.  H i s t o r i c a l l y b o t h have r e l i e d o n i l l e g a l p r o v i s i o n as a safety  v a l v e to r e l i e v e the  i n c r e a s i n g pressure created b y h o u s i n g needs. T h r o u g h o u t the last decades, the cheap h o u s i n g s o l u t i o n offered b y favelas, cortigos, i l l e g a l s u b d i v i s i o n s , and i l l e g a l b u i l d i n g standards h a d costs endured o n l y b y the w o r k i n g class. A d e q u a t e r e s o l u t i o n o f the h o u s i n g issue needed h i g h e r salaries a n d m o r e efficient p u b l i c p o l i t i c s , as e x t e n s i v e l y d i s c u s s e d i n w o r k s b y M a r i c a t o , O l i v e i r a a n d B o n d u k i . E v e n i f these aspects are not the p r i m a r y c o n c e r n o f this w o r k , they m u s t be taken into account because the shape o f m e t r o p o l i t a n S a o P a u l o ' s u r b a n e n v i r o n m e n t i s v i s c e r a l l y l i n k e d to t h e m .  T h e l o g i c o f i l l e g a l s u b d i v i s i o n s i n protected areas has been connected to freeing ' n o b l e r ' u r b a n space f r o m favelas a n d cortigos that o c c u p i e d l a n d that eventually became m o r e marketable. T h e real estate m a r k e t (speculation) has also h i n d e r e d c o n s o l i d a t i o n o f m a n y fringe n e i g h b o r h o o d s , i n the w a i t i n g process o f prospective v a l o r i z a t i o n . C o m m u n i t i e s that e v e n t u a l l y succeed i n their pursuit o f services a n d infrastructure have also been dragged into this l a n d - v a l o r i z a t i o n game, o r the p r i c e o f plots increases m a n y - f o l d s , once services are i n place r e i n f o r c i n g the c y c l e o f d i s p l a c e m e n t o f the l o w e r i n c o m e strata.  Therefore, unless the i n s t i t u t i o n a l posture t o w a r d l a n d issues changes, this pattern o f s o c i a l a n d u r b a n e x c l u s i o n w i l l be reinforced. T h e p u b l i c p o w e r needs to r e v i e w the r e g u l a t i o n o f the f o r m a l market, as w e l l as the finance m e c h a n i s m s a n d to define n e w rules f o r l a n d use a n d o c c u p a t i o n w h i c h take into account the l o w e r i n c o m e layers o f the m e t r o p o l i t a n p o p u l a t i o n .  127  A l t h o u g h they have n o mandate to resolve structural p r o b l e m s s u c h as l a n d issues, i n t e r n a t i o n a l financing  agencies  represent  a respected  a n d authoritative  forum  for fostering  and/or  spearheading changes to l o n g t e r m postures and m o d i f y i n g l e g i s l a t i o n c o n c e r n i n g l a n d issues. A l s o , w h e n they f u n d extensive urban-oriented p r o g r a m s , w h i c h have a direct i m p a c t u p o n the b u i l t e n v i r o n m e n t , h o u s i n g a n d l a n d use are affected b y these agencies'  p o l i c i e s . I n spite o f  M c N a m a r a ' s a f f i r m a t i o n , i n the 1970s, that the W B s h o u l d not intervene i n l a n d issues because i t w o u l d "affect the p o w e r base o f the t r a d i t i o n a l elite i n the d e v e l o p i n g s o c i e t i e s " ( i n Assault on Urban Poverty 1975, as c i t e d b y C a u f i e l d , 1996), the n e w d e v e l o p m e n t discourse reflected i n the actual B a n k ' s agenda is not so blunt i n its support o f the l a n d status quo. S o m e h o w , the n i n e t i e s ' agenda advocates m o r e equitable access to and d i s t r i b u t i o n o f l a n d . T h u s , the objective o f this b r i e f e x a m o f l a n d issues has been to p o i n t out the p o l i t i c a l d i m e n s i o n s o f u r b a n e n v i r o n m e n t s h a p i n g . T h e u r b a n f o r m , u l t i m a t e l y , reflects the p o l i t i c s that is i n g r a i n e d i n the w a y l a n d is d i v i d e d , d i s t r i b u t e d , a n d eventually c o n t r o l l e d a c c o r d i n g to l a w s , w i t h i n the p a r t i c u l a r s o c i a l a n d e c o n o m i c reality.  T H E QUESTION OF L A N D AND HOUSING FOR T H E POOR Throughout  B r a z i l ' s h i s t o r y , i l l e g a l l a n d tenure  has been  the p r i n c i p a l agent  o f spatial  segregation, i n b o t h r u r a l a n d u r b a n areas ( M a r i c a t o , 1997). A c c o r d i n g to B a l d e z (1986) u n t i l the end o f last century l a n d o c c u p a t i o n was a legal w a y to o b t a i n tenure. O n l y w i t h the emergence o f  128  free w o r k e r s , l a n d o w n e r s h i p l e g i s l a t i o n w a s passed, i n order to guarantee the c o n t i n u i t y o f the 15  l a n d o w n e r s ' (latifundiarios)  c o n t r o l over p r o d u c t i o n . Therefore, the automatic e x c l u s i o n o f the  peasantry/low i n c o m e p o p u l a t i o n f r o m any p o s s i b i l i t y o f legal o w n e r s h i p has been part o f the process o f h u m a n settlement i n B r a z i l . I n response to this several strategies o f l a n d o c c u p a t i o n , h a v e e v o l v e d f r o m the process once seen as t r a d i t i o n a l (the o c c u p a t i o n o f free land) to a n i l l e g a l a n d threatening event to the contemporary l a n d o w n e r elite.  A c c o r d i n g to Fernandes  (1997) three processes  have  m a d e the settlement  and growth o f  p o p u l a t i o n i n u r b a n areas p o s s i b l e i n B r a z i l : the authorized d i v i s i o n o f l a n d , the p r o l i f e r a t i o n o f irregular p e r i p h e r a l l a n d d i v i s i o n s , a n d the w i d e s p r e a d i n v a s i o n (and i l l e g a l s u b d i v i s i o n ) o f u r b a n l a n d . S u c h processes have shaped some o f the s o c i a l practices associated w i t h the settlement process o f large parts o f the city. I n particular, they were the o n l y o p t i o n a v a i l a b l e to the l o w i n c o m e p o p u l a t i o n a n d the m a j o r i t y o f migrants to m e t r o p o l i t a n S a o P a u l o . T h e state has not been u n a w a r e o f these processes, a n d has o s c i l l a t e d f r o m c o n n i v a n c e to r e p r e s s i o n , a c c o r d i n g to the w h i m s o f p o l i t i c a l interest. These elements have shaped a n u r b a n l e g a l order that is d i f f i c u l t to enforce a n d not necessarily i n the best interest o f l o w e r i n c o m e people.  U r b a n l a n d b e c a m e the object o f m o r e extensive l e g i s l a t i o n w h e n the real estate m a r k e t started to d e v e l o p . T h e eventual stratification o f the u r b a n e n v i r o n m e n t , t h o u g h , c a m e h a n d - i n - h a n d w i t h e x p u l s i o n o f the l o w - i n c o m e p o p u l a t i o n f r o m p o t e n t i a l l y m o r e v a l u a b l e areas, subordinated to u n s c r u p u l o u s real estate capital ( M a r i c a t o , 1997).  Brazil was the last country to abolish slavery. The law freeing all slaves was signed in 1888. 129  H i s t o r i c a l l y , u r b a n h o u s i n g p r o d u c t i o n i n Sao P a u l o has been regulated establishes  b y l e g i s l a t i o n that  where a n d h o w u r b a n l a n d c a n be d i v i d e d , w h i c h k i n d o f infrastructure c a n be  i m p l e m e n t e d , and h o w m a n y square meters can be b u i l t o n a l a n d p a r c e l . B a s i c a l l y , the objective o f the l e g i s l a t i o n is to assure the q u a l i t y and adequacy o f c o n s t r u c t i o n and to balance the u r b a n b u i l t e n v i r o n m e n t i n terms o f infrastructure and s o c i a l equipment ( f r o m the p o i n t o f v i e w o f the u r b a n p l a n n i n g v i s i o n o f the t i m e w h e n the l e g i s l a t i o n w a s initiated). I n a d d i t i o n to l e g i s l a t i o n about d e s i g n and c o n s t r u c t i o n rules, a l l l a n d s u b - d i v i s i o n s and h o u s i n g sales are subject to p u b l i c registry,  a n d f i n a n c i n g depends o n d o c u m e n t a t i o n  p r o v i n g the l e g a l i t y  o f the a c t i v i t y o r  transaction.  H o w e v e r , m o s t h o u s i n g w a s and is p r o v i d e d outside the e x i s t i n g l e g a l f r a m e w o r k a n d outside the f o r m a l h o u s i n g market, w h i c h can o n l y recognize and administer l e g a l l y , registered pieces o f real estate. S o , the c i t y has g r o w n outside plans and u r b a n l a w s , almost totally based o n m o r e o r less irregular s u b d i v i s i o n s .  In a n extensive demonstrated  study o f the h o u s i n g market i n S a o P a u l o , S i l v a a n d C a s t r o  (1997) have  that the irregular f o r m s o f h o u s i n g p r o v i s i o n cannot be e x a c t l y  described or  quantified. T h e y are favelas,  cortigos, i l l e g a l s u b - d i v i s i o n s , and precarious h o u s i n g that shelter  the l o w - i n c o m e m e t r o p o l i t a n p o p u l a t i o n . A c c o r d i n g to their study, " a m i n i m u m o f 4 4 percent and p r o b a b l y m o r e than 6 0 percent - o f the h o u s i n g p r o d u c e d i n S a o P a u l o b e t w e e n 1880 a n d 1991"  d o n o t c o n f o r m t o the legal f r a m e w o r k ,  i n one or m o r e aspects. E v e n w i t h a l l the  a d m i n i s t r a t i v e m e c h a n i s m s , s u c h as taxes f o r p u b l i c street c l e a n i n g , water a n d o w n e r s h i p , i t is  130  not p o s s i b l e to k n o w e x a c t l y h o w m a n y o f the Paulistano  16  population live i n illegal housing  arrangement.  H o w e v e r , o w n e r s h i p is a r e c u r r i n g a n d persistent aspect o f these arrangements i n S P M A , u n l i k e i n m a n y other d e v e l o p i n g cities ( S i l v a a n d Castro, 1998). I n c o n s o l i d a t e d favelas,  l o c a t i o n has  i n c r e a s i n g l y affected the i n f o r m a l market. I n 1993, 13.8 percent o f h o u s e h o l d heads s a i d they h a d p a i d f o r their p l o t , against 4,3 percent i n 1987. I n m o r e than 9 0 percent o f the favelas  researched  b y T a s h n e r b u y - a n d - s e l l advertisements were seen, w i t h 45.5 percent c o s t i n g b e t w e e n 10 a n d 2 0 m i n i m u m m o n t h l y w a g e , a n d 32.3 percent c o s t i n g between 2 0 a n d 5 0 m i n i m u m m o n t h l y w a g e (Tashner, 1995).  The  rental market  i n Brazil  has been  strongly  i n f l u e n c e d b y r e g u l a t i o n a n d scarcity o f  a c c o m m o d a t i o n . T h i s , i n turn, w a s l i n k e d to the disinterest o f b o t h private investors a n d the p u b l i c p o w e r i n p r o d u c i n g rental units or renting e x i s t i n g real estate. P r o d u c t i o n f o r rent decreased since the 1940s, i n response to leasing l e g i s l a t i o n , a n d w a s c o m p l e t e l y m a r g i n a l i z e d i n the f i n a n c i n g p r o g r a m s o f the N a t i o n a l F i n a n c i n g H o u s i n g S y s t e m ( S F H ) . T h e s e p r o g r a m s have f o c u s e d entirely o n o w n e r s h i p since the second h a l f o f the 1960s. I n a d d i t i o n to n o t f i n a n c i n g p r i v a t e a n d p u b l i c p r o d u c t i o n o f rental h o u s i n g , the N a t i o n a l B a n k f o r H o u s i n g ( B N H ) , the m a i n d e l i v e r e r o f the S F H , d e t e r m i n e d the s e l l i n g o f a l l rental stock o w n e d b y p u b l i c entities o r s i m i l a r institutions s u c h as retirement funds, etc. T h u s , there i s currently n o s p e c i f i c p r o d u c t i o n f o r rental a c c o m m o d a t i o n s i n the f o r m a l sector, but o n l y a c o n t r o l l e d market b y l o c a t i o n c o m p a n i e s , a n d  16  "Paulistano" is a person born and/or living in Sao Paulo City 131  some private transaction between i n d i v i d u a l s . R e n t values reached a n extraordinary h i g h d u r i n g the P i a n o R e a l (1994) a n d started to c o m e d o w n o n l y towards the e n d o f 1995. T h e h i s t o r i c average f o r S P rent w a s a r o u n d 0.5 percent o f the s e l l i n g value o f the house, a n d 1 percent o f the v a l u e f o r l o w - s t a n d a r d h o u s i n g . A t the b e g i n n i n g o f 1996, the rent represented a r o u n d 1 percent o f the s e l l i n g v a l u e , i n some cases r e a c h i n g 2 percent ( S i l v a a n d C a s t r o , 1997).  It i s a k n o w n fact that the w a g e o f the B r a z i l i a n w o r k e r does not c o v e r h o u s i n g costs. B e c a u s e o f this, they need to o w n their house at the lowest cost possible. Irregular solutions f o r accessing l a n d a l l o w t h e m to o b t a i n a house. These solutions are r e l a t i v e l y cheaper than entering the f o r m a l market. E v e n so, b o t h rent a n d self-built solutions are h i g h cost, i n a d d i t i o n to the precariousness o f u r b a n a n d b u i l d i n g standards.  Therefore, to o w n a p l o t o f l a n d to b u i l d o n e ' s house i s a m o s t cherished a m b i t i o n o f the p o o r p o p u l a t i o n (and for the m i d d l e class also). A major part o f the c i t y has been p r o d u c e d i r r e g u l a r l y , and a great n u m b e r o f w o r k e r s have h a d to use irregular f o r m s f o r secure h o u s i n g . T h e fact that the p l o t o r c o n s t r u c t i o n is irregular has i m p e d e d access to private o r p u b l i c h o u s i n g f i n a n c i n g . T h e o w n e r o f a house i n a n irregular situation does not have the necessary d o c u m e n t a t i o n to u s e the cartas  de credito,  the o f f i c i a l d o c u m e n t that w o r k s o n the h o u s i n g market. T h e C a i x a  E c o n o m i c a F e d e r a l , the agency f o r h o u s i n g f i n a n c i n g has h a d d i f f i c u l t y i n d i s s e m i n a t i n g this because o f the gigantic d i m e n s i o n s o f tenure and real estate i l l e g a l i t y . P u b l i c f i n a n c i n g helps the better-off strata o f the p o p u l a t i o n that c a n b u y w i t h i n the l e g a l market. A s S i l v a a n d Castro noted, " l a w for the m i n o r i t y ; market for the m i n o r i t y ; f i n a n c i n g for the m i n o r i t y " .  132  Many  w a y s have  been  d e v i s e d to address  the situation, b u t none  has been  effective i n  d i m i n i s h i n g the large n u m b e r o f i l l e g a l d w e l l e r s . A l s o , different approaches have not yet created a s i g n i f i c a n t b o d y o f l e g a l a n d s o c i a l expertise w i t h e n o u g h s o c i a l , p o l i t i c a l a n d theoretical strength t o o v e r c o m e the t r a d i t i o n a l and expected resistance o f the l a n d h o l d e r elite, r e a l estate speculators a n d conservative government p o l i c i e s .  R e g u l a r i z a t i o n o f l o w - i n c o m e settlements has been the object o f m u c h c o n t r o v e r s y i n recent decades. I n a n International F o r u m sponsored b y the L i n c o l n Institute ( C o l o m b i a , M a r c h 1998) three m a i n approaches d o m i n a t e d the d i s c u s s i o n . T h e u p g r a d i n g a p p r o a c h i n v o l v e s the p h y s i c a l r e g u l a r i z a t i o n a n d i m p l e m e n t a t i o n o f basic infrastructure i n s l u m s a n d irregular settlements. A n o t h e r v e r y c o m m o n a p p r o a c h i s the transformation o f a de facto s i t u a t i o n into de jure property o w n e r s h i p , t h r o u g h the l e g a l r e g u l a r i z a t i o n o f settlements. A n e w v i e w o f the issue takes a h o l i s t i c a p p r o a c h u s i n g a w i d e variety o f measures a i m e d at s o c i a l a n d c i v i c i n t e g r a t i o n o f i n f o r m a l settlements into the m a i n u r b a n fabric.  M a n y p r o g r a m s have been d e v e l o p e d i n recent years to upgrade i n f o r m a l settlements, w i t h creative a n d i n n o v a t i v e approaches specific to each situation. I n spite o f p o s i t i v e aspects s u c h as i n v o l v e m e n t o f the l o c a l c o m m u n i t y , most o f the larger p r o g r a m s d e p e n d o n an extensive budget, p a r t i c u l a r l y w h e n major services s u c h as m a i n sewage collectors a n d r o a d access to c r i t i c a l areas are i n v o l v e d . T h e necessary r e l o c a t i o n o f p o t e n t i a l l y dangerous, houses, those subject t o f l o o d i n g or s l i d i n g , is another expensive aspect. R e p l i c a b i l i t y o f successful p r o g r a m s , a v e r y desirable characteristic i n this k i n d o f project, sometimes c a n n o t happen, due to crescent d i f f i c u l t y i n o b t a i n i n g large amounts o f f i n a n c i a l resources, c o m m o n l y t h r o u g h international f u n d i n g . T h i s i s  133  the case w i t h the G u a r a p i r a n g a P r o g r a m and a l l significant m e t r o p o l i t a n p r o g r a m s d u r i n g recent decades, w h i c h have their c o n t i n u i t y j e o p a r d i z e d b y eventual l a c k o f l o c a l resources to m a t c h l o a n agreements.  T h e r e are costs to residents i m p l i e d b y the i m p r o v e m e n t o f the settlement. T h e y are subject to services a n d other taxes w h i c h , o n top o f i n s t a l l a t i o n costs c o u l d p u s h f a m i l i e s into s u b - l o c a t i o n , s u b - d i v i s i o n or eventually s e l l i n g the lots. T h e rate o f h o u s i n g i m p r o v e m e n t c a n d i m i n i s h once the f i n a n c i n g a v a i l a b l e to the h o u s e h o l d b e c o m e s smaller.  Physical improvement  o f settlements  has also  significant i m p a c t i n w h i c h w a y  g o v e r n m e n t are i n v o l v e d i n u r b a n a d m i n i s t r a t i o n . It stimulates d e c e n t r a l i z a t i o n ,  levels  of  strengthening  m u n i c i p a l g o v e r n m e n t a n d a d d i n g a n e w d i m e n s i o n to the i m p o r t a n c e o f i n s t i t u t i o n a l b u i l d i n g . From  i m p r o v i n g f i s c a l capacity  to d e v e l o p i n g  reliable p r o g r a m  c o o r d i n a t i o n routines,  an  apprenticeship is essential to b u i l d c a p a b i l i t y i n the m u n i c i p a l i t y . T h i s c a n i n c l u d e s k i l l s needed to participate i n n e g o t i a t i o n between stakeholders a n d to d i s c e r n the best solutions m o s t l i k e l y to be r e p l i c a b l e .  T h e l e g a l f r a m e w o r k for p h y s i c a l u p g r a d i n g has not been an i n s u r m o u n t a b l e barrier, but it faces the same l i m i t s as tenure l e g a l i z a t i o n , as w e l l b e i n g deeply affected b y the p o l i t i c a l v i s i o n o f m u n i c i p a l authorities. T h e d e s i g n o f m e c h a n i s m s s u c h as i m p r o v e m e n t s to p r i v a t e l y o w n e d l a n d or i n s e r t i o n o f s l u m s into otherwise  formal urban fabric to c i r c u m v e n t r e g u l a t i o n obstacles, c a n  134  assume the f o r m o f special zones ( Z E I S a n d P r e - Z E ^ - ) w h i c h g i v e greater f l e x i b i l i t y to the 7  projects w i t h o u t too m u c h controversy.  Perhaps a greater benefit o f this approach is the enhancement o f the concept o f c i t i z e n s h i p rights and its d i s s e m i n a t i o n t h r o u g h the affected c o m m u n i t i e s . R i g h t s to infrastructure a n d u r b a n i z a t i o n benefits, a n d u l t i m a t e l y h o u s i n g rights are m o r e easily understood after the i m p l e m e n t a t i o n o f recovery  programs.  A  fringe benefit  o f this process  i s the c i t i z e n s '  heightened  sense o f  r e s p o n s i b i l i t y as the natural f o l l o w - u p ( v i s i b l e i n p a y m e n t o f c o n s u m p t i o n taxes a n d c o m m u n i t y r e s p o n s i b i l i t y towards c o n s e r v a t i o n and maintenance).  I n spite o f the arguments i n their favour (see F i g u r e 5.1), most l a n d title l e g a l i z a t i o n p r o g r a m s i n p l a c e have been lengthy a n d expensive, a n d l a c k clear i n d i c a t i o n o f s i g n i f i c a n t l y i m p r o v e d q u a l i t y o f l i f e i n settlements. M o s t h o m e i m p r o v e m e n t a n d c o n s o l i d a t i o n appear to be dependent o n direct resources. S e r v i c e p r o v i d e r s have their o w n rules that d o n o t n o r m a l l y d e p e n d u p o n property tenure. H o w e v e r , the recent w o r k done b y M o s e r i n four d e v e l o p i n g countries suggests that tenure has c l e a r l y affected the w a y L a t i n A m e r i c a n f a m i l i e s have r e s p o n d e d to settlement p r o g r a m s ( M o s e r , 1996)  T h e r e i s also certain wariness a m o n g l o w - i n c o m e p o p u l a t i o n s about f o r m a l credit systems, debt is s o m e t h i n g best a v o i d e d i n a n e n v i r o n m e n t o f j o b insecurity. T e n u r e r e g u l a r i z a t i o n has been a n objective o f h o u s i n g p o l i c e s a n d institutions i n several L a t i n A m e r i c a n countries. It c a n be a strong p o l i t i c a l t o o l a n d has o c c a s i o n a l l y h e l p e d to organize the f l o w o f infrastructure p r o v i s i o n .  17  ZEIS = Special Zone with Social Interest (Zona Especial de Interesse Social) 135  Arguments For Legal Regularization •  Provide security against eviction  •  Provide incentives to stimulate investments in home improvements and consolidation  •  Facilitate and provide for the introduction o f services such as electricity and water  •  Generate access to credit using the home as collateral  •  Incorporate residents into the property-owning citizenry and the democratic process  •  Integrate settlements and property into the tax and regulatory base o f the city F i g u r e 5.1 — A r g u m e n t s for L e g a l R e g u l a r i z a t i o n Source: Ward, P. 1998  M o r e recently, international f u n d i n g institutions are m a k i n g l a n d t i t l i n g i n i n f o r m a l settlements as a b a s i c element o f their agenda, i n order to further u r b a n l a n d management. T h e i n t e g r a t i o n o f a large percentage o f the u r b a n p o p u l a t i o n into the universe o f taxes, r e c o v e r y o f cost o f services and  infrastructure,  planning  controls,  construction  permits  and consumption  charges  is  c o n s i d e r e d a n essential requirement o f any u r b a n resident set o f o b l i g a t i o n s , regardless o f her/his i n c o m e bracket. Sustainable u r b a n programs emphasize this c o m p o n e n t . R e g u l a r i z a t i o n o f l a n d o w n e r s h i p i s d e f i n e d as one o f the m a i n tools for u r b a n management, a n d a guarantee o f u r b a n sustainability. A c c o r d i n g to W a r d , this is the m a i n reason w h y i t is a n essential part o f u r b a n p o l i c y i n m a n y places. It is interesting, t h o u g h , to r e c o g n i z e that p o l i c i e s o f this nature are i m p l e m e n t e d less enthusiastically f o r private l a n d than they are f o r p u b l i c l a n d . S o m e j u d i c i a l m e c h a n i s m s have been d e v e l o p e d i n order to transfer o w n e r s h i p based o n o c c u p a n c y rights. I n the B r a z i l i a n l e g a l system, the uso capido system a l l o w s those w h o c a n c l a i m c o n t i n u o u s o c c u p a n c y f o r the p r e v i o u s f i v e years to c l a i m p r o p r i e t o r s h i p o f the p l o t , e v e n i f it i s s m a l l e r t h a n 2 5 0 m . T h i s i s a n e w extension o f a n e x i s t i n g rural-oriented s y s t e m i n order to a c c o m m o d a t e 2  u r b a n reality.  136  I n spite o f support f r o m m a n y institutions, r e g u l a r i z a t i o n o f l a n d tenure is s t i l l a v e r y  slow  process i n B r a z i l . T h i s is i n part due to the j u r i d i c a l c o m p l e x i t y o f the system, but m o r e often to the l o w degree o f p r i o r i t y that r e g u l a r i z a t i o n receives f r o m the government. T h i s d e l a y is also l i n k e d to faulty l a n d registry/cadastre  system a n d a c c o m p a n y i n g  entanglement  o f property  d o c u m e n t s . F o r e x a m p l e , some plots have n o t h i n g m o r e than a contract o f purchase, w h i l e others have registered property title. T h i s leaves considerable space f o r challenges to title requests, a n d leaves l o w - i n c o m e p o p u l a t i o n easy prey to u n s c r u p u l o u s lawyers a n d real estate agents.  T h e " r e g u l a r i z a t i o n as a means o f s o c i a l i n t e g r a t i o n " approach ( W a r d , 1998) attempts to integrate l o w - i n c o m e p o p u l a t i o n s into a set o f s o c i a l opportunities s u c h as health a n d e d u c a t i o n , thereby i n c o r p o r a t i n g t h e m into f u l l u r b a n c i t i z e n r y a n d l e a d i n g to r e g u l a r i z a t i o n o f o c c u p i e d l a n d . B e c a u s e the d e f i n i t i o n o f " a g o o d c i t i z e n " is a class-bonded construct, r e g u l a r i z a t i o n c o u l d e v e n t u a l l y be u s e d to create a n a r t i f i c i a l s o c i a l convergence a n d c o n f o r m i t y . T h i s has caused m u c h controversy. S o m e o f the m a i n defenders o f this a p p r o a c h are c o n c e r n e d w i t h increased violence  i n i n f o r m a l settlements.  Favelas  are sometimes  c o n t r o l l e d b y d r u g dealers a n d  d e l i n q u e n t gangs. T h e y m a y be totally inaccessible to o f f i c i a l p o l i c i n g p o w e r s , subject o n l y to the justiceiros  x%  methods o f v i o l e n c e c o n t r o l . S o c i a l integration o f the settlements w o u l d offer a n  o p p o r t u n i t y to enhance s o c i a l r e s p o n s i b i l i t y a n d stimulate the m o d e l i n g o f g o o d e x a m p l e s f o r citizenship.  "Justiceiros" are "hit men" who usually work for local businessmen or rival gangs. Usually they are retired or unemployed policemen, or even active policemen in their free time. 18  137  H o w e v e r , this ' h o l i s t i c a p p r o a c h ' is a n e w concept, w h i c h needs to be m o r e p r o f o u n d l y e x p l o r e d i n terms o f real i m p a c t , sustainable i n the face o f strong s o c i a l forces. R a m p a n t u n e m p l o y m e n t , increased e c o n o m i c i n f l a t i o n a n d national deterioration o f s o c i a l benefits a n d expenditures are outside the boundaries a n d the c o n t r o l o f l o c a l c o m m u n i t i e s .  T h e G u a r a p i r a n g a P r o g r a m has tried to f o l l o w , at least i n p r i n c i p l e a n d a c c o r d i n g to  some  interviewees, the t h i r d , h o l i s t i c approach t o w a r d the p o p u l a t i o n settled i n the m a r g i n s o f the reservoir. T h i s v i e w is j u s t i f i e d b y the a p p a l l i n g i n d e x o f u r b a n v i o l e n c e i n some n e i g h b o r h o o d s i n this r e g i o n , c o n s i d e r e d the m o s t v i o l e n t i n the m e t r o p o l i t a n area. E n d e m i c u n e m p l o y m e n t a n d the d e p r i v e d p h y s i c a l e n v i r o n m e n t o f the area have fostered a n d m a i n t a i n e d this t r a d i t i o n o f urban violence.  T H E W A T E R S H E D PROTECTION L A W AND ITS E F F E C T UPON URBAN EXPANSION W h e n watershed p r o t e c t i o n l e g i s l a t i o n was p r o p o s e d , the o f f i c i a l report " D i a g n o s i s 1 9 7 5 " already w a r n i n g about u r b a n e x p a n s i o n towards the watersheds area (Cesar, 1975).  was  Subsequent  u r b a n e x p a n s i o n has been e x t e n s i v e l y d o c u m e n t e d t h r o u g h o c c u p a t i o n m a p s b y E M P L A S A .  A f t e r the p r o m u l g a t i o n o f the l a w , urban e x p a n s i o n deviated f r o m p r e s c r i p t i o n s . T w o facts are related to this e x p a n s i o n . F i r s t , the p r o p o r t i o n o f the protected area o c c u p i e d b y u r b a n i z a t i o n w a s not s i g n i f i c a n t l y large i n r e l a t i o n to the extension o f the total protected areas, nearly 55 percent o f the total area o f the m e t r o p o l i t a n r e g i o n . S e c o n d l y ,  SPMA  urban expansion was  localized  p r i n c i p a l l y i n close p r o x i m i t y to already u r b a n i z e d areas. H o w e v e r , e x p a n s i o n reached  138  the  m a r g i n s o f the G u a r a p i r a n g a reservoir a n d the v a l l e y o f the J u q u e r i R i v e r , w i t h i n the protected area.  Figure 5.2 — Evolution of Urbanization within the Watersheds Source: EMPLASA, 1990  Therefore, one c o u l d say that the objective o f the l e g i s l a t i o n was p a r t i a l l y attained, except close to the already u r b a n i z e d area. T h e relative containment o f u r b a n e x p a n s i o n c a n be attributed to some extent to watershed p r o t e c t i o n m e c h a n i s m s , but m o r e d i r e c t l y to the 1980s s l o w e r rate o f m e t r o p o l i t a n g r o w t h , a n d consequent reduced impetus to u r b a n e x p a n s i o n .  U r b a n o c c u p a t i o n o f the protected area happened i n spite o f the m e c h a n i s m s f o r its p r o t e c t i o n partly because a p o r t i o n o f this area was already prepared for u r b a n use. T h e o c c u p a t i o n w a s an e x t e n s i o n o f the s u r r o u n d i n g u r b a n fabric. I n these areas, the p o o r strata o f the p e r i p h e r y  139  p o p u l a t i o n , already used to clandestine h o u s i n g arrangements, f o u n d i t s e l f a p l a c e to b u i l d . L a c k o f investments i n p u b l i c services a n d water s u p p l y , sewage i n s t a l l a t i o n , proper r o a d systems, a n d transportation set p o o r standards for l a n d o c c u p a t i o n . C o m b i n e d w i t h fragile b u i l d i n g techniques, they m a d e the o c c u p a t i o n v e r y h a r m f u l . C o n d i t i o n s o f o c c u p a t i o n w e r e also predatory, illustrated b y the s m a l l size o f the lots that l o w - i n c o m e settlers c o u l d afford. P o s t - o c c u p a t i o n a n d postc o n s t r u c t i o n i m p r o v e m e n t s were rare, because it was i m p o s s i b l e for residents to self-finance any i m p r o v e m e n t w h i c h w o u l d take into c o n s i d e r a t i o n adequate e n v i r o n m e n t a l preservation.  T h e o c c u p a t i o n o c c u r r e d i n response to intense pressure for areas affordable b y p o p u l a t i o n s e n d e m i c a l l y d e p r i v e d o f f i n a n c i a l means and f o r m a l m e c h a n i s m s to o b t a i n any o f f i c i a l h e l p for h o u s i n g ( e x i s t i n g f i n a n c i n g programs, loans, etc). T h u s , w i t h a g r o w i n g contingent o f m i g r a n t and d i s p l a c e d people searching for m o r e u r b a n i z e d areas i n the S P M A , d e m a n d for l a n d b e c a m e intense. It is not s u r p r i s i n g that the p u b l i c p o l i c i e s for the watersheds  p r o t e c t i o n have been  insufficient to c o n t a i n u r b a n e x p a n s i o n .  T h e discourse s u r r o u n d i n g watershed protection, a l o n g w i t h m e c h a n i s m s for d i s c i p l i n i n g h u m a n activities w i t h i n the protected drainage basins has h a d some effect i n a v o i d i n g a larger u r b a n o c c u p a t i o n o f the areas. A t the same t i m e , authorities have been unable to e f f i c i e n t l y c o n t a i n the u r b a n e x p a n s i o n , i n the face o f extreme pressure towards u r b a n i z a t i o n . T h e pattern o f o c c u p a t i o n cannot  be  attributed s o l e l y  to watershed  p r o t e c t i o n prescriptions per  characteristic o f l a n d use patterns a n d occupations throughout the r e g i o n .  140  se.  It i s , rather,  a  C O N T R O L OF L A N D U S E F r o m its onset, the discourse a r o u n d watershed p r o t e c t i o n established a c o n n e c t i o n  between  watershed q u a l i t y a n d c o n t r o l o f h u m a n a c t i v i t y i n the drainage b a s i n :  The law design is based on the general principle that the waters from a watershed are a natural product from the drainage of an area, which is its hydrographic basin. From the activities to be developed within that basin, it will depend, naturally, on the qualitative and quantitative regimens of the drained water, and consequently, the quantity and quality of the watershed water (Sao Paulo Legislative Assembly, 1976). [My translation] T h e c o n t r o l o f h u m a n activities w i t h i n the drainage b a s i n h a d as its p r i m a r y objective:  Assuring the possibility of drinkability of the Greater Sao Paulo watersheds waters, accepting the diversified expansion of the land use within the respective basins until the limit that, once overcome, will impede the rational utilization of the water resources as supply watersheds in the metropolitan region; Stimulating the development of other uses of the water and adjacent land compatible with the drinkability (leisure, recreation, flooding control, preservation of the water fauna) in order to accelerate the economic feasibility of these watersheds into a supply system for the Greater Sao Paulo Region (Sao Paulo, Legislative Assembly, 1976). L a w 1172/76 endorsed these a i m s b y s p e c i f y i n g where a n d h o w l a n d o c c u p a t i o n w o u l d p r o c e e d . It d e f i n e d the area to be protected, established first category  areas, where r e s t r i c t i o n were  prevalent a n d b r o a d , a n d second category / class A , B a n d C areas where fewer restrictions were applicable.  For  each  o f these  impermeabilization;  areas, road  the l a w established design;  deforestation;  different  norms  and collection,  o f l a n d use; o c c u p a t i o n ; transportation  and  final  destination o f waste a n d sewage. F e w elements o f u r b a n o c c u p a t i o n were m i s s i n g ( A p p e n d i x B  141  e x a m i n e s i n m o r e detail h o w areas w e r e categorized, to c l a r i f y the l a w ' s scope). S u c h a r i g o r o u s i n s t i t u t i o n a l stand has rarely been seen i n s u c h matters, but f o l l o w s the t o p - d o w n p l a n n i n g approach  peculiar  to the times.  It is easy  to understand  the d i f f i c u l t i e s  in  effectively  implementing such draconian legislation.  T H E WATERSHEDS AS A C O L L E C T I V E CONSUMER G O O D P a r a l l e l to l a n d o c c u p a t i o n issues created b y the p r o t e c t i o n l a w s , the fate o f the S a o P a u l o m e t r o p o l i t a n watersheds is enmeshed i n the dispute between the water s u p p l y s y s t e m f o r S P M A a n d the electricity generating s y s t e m . T h i s dispute has taken place i n a n u r b a n e c o s y s t e m w i t h 19  scarce water resources, w h i c h is under pressure o f u r b a n e x p a n s i o n towards the watersheds.  F r o m a strictly t e c h n i c a l p o i n t o f v i e w , the p r o b l e m s o f water scarcity, u r b a n i z a t i o n effects w i t h i n the drainage basins, and c o m p e t i t i o n for A l t o Tiete b a s i n water resources c o u l d have been r e s o l v e d . It w o u l d be necessary o n l y to m o b i l i z e s o c i a l and the p u b l i c p o w e r resources for:  •  D e - p o l l u t i o n o f water resources i n the A l t o Tiete B a s i n ,  •  I m p l e m e n t a t i o n o f u r b a n infrastructure, p a r t i c u l a r l y sanitation, i n the areas already  occupied  by urban expansion, •  19  S u b s t i t u t i o n o f energy sources w h i c h s u p p l y S P M A .  The Southeast energy supply system for the country involves all the water resources of the Alto Tiete Basin.  142  H o w e v e r , the q u e s t i o n was not m e r e l y t e c h n i c a l . Systems for water s u p p l y , sewage r e m o v a l a n d e l e c t r i c i t y generation are c o l l e c t i v e c o n s u m e r goods, i.e., are " m a t e r i a l support o f activities destined to the a m p l i f i e d r e p r o d u c t i o n o f a s o c i a l w o r k f o r c e " ( L o j k i n e , 1972). I n fact, their v a l u e for use is c o l l e c t i v e , because they meet needs that c a n o n l y be addressed c o l l e c t i v e l y . T h e i r use is permanent, because it does not destroy the i n s t a l l a t i o n that collects the water, de-pollutes the water b o d i e s or generates energy. T h e i r use v a l u e is d i f f i c u l t to separate or be m a t e r i a l i z e into products disassociated f r o m the c o n d i t i o n s that p r o d u c e them.  C o n t a i n m e n t o f u r b a n e x p a n s i o n i n the d i r e c t i o n o f the protected watersheds has been due, m a i n l y , to s l o w e d g r o w t h i n S P M A , a n d o n l y secondly to the watershed l e g i s l a t i o n . These l a w s were not effective  i n the surroundings o f already-urbanized areas where there w a s  greater  pressure t o w a r d s u r b a n i z a t i o n . Therefore, it appears that watershed p r o t e c t i o n l e g i s l a t i o n w a s insufficient i n c o n t a i n i n g e x p a n s i o n o f u r b a n i z a t i o n w i t h i n the protected area; this indicates that n e w l e g i s l a t i o n , per se, w i l l not save the water resources o f S P M A .  Part o f the protected area w a s already prepared for u r b a n i z a t i o n w h e n the l a w w a s p r o m u l g a t e d . T h i s w a s an area w i t h l o w u r b a n q u a l i f i c a t i o n , due to precarious p u b l i c systems for water s u p p l y , sewage, roads and transportation. It represented the first o p t i o n for o c c u p a t i o n b y the poorest strata o f the p o p u l a t i o n i n search for l a n d .  T h e p r o d u c t i o n o f differentiated areas b y u r b a n q u a l i f i c a t i o n is, a c c o r d i n g to C a s t e l l s , the " u r b a n stratification c o r r e s p o n d i n g to the s o c i a l stratification" (1983). It is also, a c c o r d i n g to L o j k i n e the " e x p r e s s i o n o f the m a t e r i a l a n d intellectual labor d i v i s i o n , w h i c h resumes the c o n t r a d i c t i o n  143  b e t w e e n l a b o r d e v e l o p m e n t requirements a n d capitalist a c c u m u l a t i o n , a n d that tends to restrict to the m a x i m u m the labor d e v e l o p m e n t " (1981).  A c c o r d i n g to L o j k i n e , this u r b a n segregation  is m o t i v a t e d b y u r b a n f i n a n c i a l g a i n , w h i c h  engenders the u n e q u a l d i s t r i b u t i o n o f h o u s i n g , the u n d e r - s e r v i c e d w o r k e r s ' n e i g h b o r h o o d s , a n d the c r i s i s o f p u b l i c transportation. It also foreordains areas w i t h the l o w e s t d i f f e r e n t i a l g a i n to b e c o m e u r b a n ghettos ( H a r v e y , 1980) a n d , at least i n Sao P a u l o , to o c c u p a t i o n b y the w o r k i n g class ( B o n d u k i a n d R o l n i k , 1979).  T h u s , the protected  areas near already-urbanized areas presented  for urban expansion  readiness for u r b a n i z a t i o n a n d its l o w q u a l i f i c a t i o n , i n a n u r b a n l o c u s that destines  its  lower  q u a l i f i e d areas to the poorest. It was inevitable that the l o w e s t i n c o m e strata o f the p o p u l a t i o n w o u l d o c c u p y it, because it w o u l d chase a w a y any other s o c i a l strata.  O c c u p a t i o n o f these areas b y the p o o r p o p u l a t i o n is almost a l w a y s predatory for the watersheds, due to g e n e r a l i z e d l a c k o f p u b l i c u r b a n services and equipment: it is the territory o f l o w u r b a n q u a l i f i c a t i o n , w i t h v e r y s m a l l lots. T h i s is l a n d accessible o n l y to p o o r p e o p l e , w h o are u n a b l e to self-finance i m p r o v e m e n t s that w o u l d assist i n e n v i r o n m e n t preservation.  In this context, it is not s i m p l y h u m a n activities that determine the " q u a l i t a t i v e a n d quantitative r e g i m e o f the d r a i n e d water o f the watersheds" but rather the f o r m o f these h u m a n activities. A l s o , it is not u r b a n i z a t i o n that w i l l lead to uselessness  o f r e m a i n i n g l a n d a n d that  will  c o m p r o m i s e p o s s i b l e uses, but m a i n l y the f o r m o f this u r b a n i z a t i o n (as referred i n text f r o m Sao P a u l o L e g i s l a t i v e A s s e m b l y , 1976).  144  S o , it is not h u m a n a c t i v i t y w h i c h squanders the e n v i r o n m e n t , neither is u r b a n i z a t i o n the o r i g i n o f e n v i r o n m e n t p r o b l e m s . It is necessary to l i n k e n v i r o n m e n t a l d a m a g e to its proper o r i g i n s , to "articulate it to the different processes o f the s o c i a l structure" w h i c h p r o d u c e it ( C a s t e l l s , 1983). It is necessary to r e c o g n i z e that different f o r m s o f u r b a n i z a t i o n have different i m p a c t s u p o n the e n v i r o n m e n t , a n d that those forms are determined b y the u r b a n q u a l i f i c a t i o n o f these areas.  I n other w o r d s , i f society and the p u b l i c p o w e r p r o v i d e better-qualified areas i n that the p o o r p o p u l a t i o n m a y settle, and p r o v i d e better q u a l i f i c a t i o n o f protected u r b a n areas, it is l i k e l y that e n v i r o n m e n t a l damage a n d watershed c o n t a m i n a t i o n c a n be averted.  A n attempt at watershed protection w h i c h l i m i t s i t s e l f to the d i s c i p l i n e o f h u m a n activities w i t h i n the areas adjacent to the protected watershed, a n d w h o s e instruments c o m p r e h e n d o n l y the deq u a l i f i c a t i o n o f these areas for urban purposes, was not e n o u g h to c o n t a i n u r b a n e x p a n s i o n i n the borders o f the already u r b a n i z e d area. It d i d not consider the c o n d i t i o n s o f the area, i.e., its preparation for u r b a n i z a t i o n , its l o w urban q u a l i f i c a t i o n a n d its destination to the l o w - i n c o m e p o p u l a t i o n . Therefore, it was a failure not o n l y b y conceptual c o n t r a d i c t i o n , but also b y o m i s s i o n and misinformation.  T H E E F F E C T OF T H E DISCOURSE AND MECHANISMS UPON T H E URBANIZED A R E A T h e effect o f the watershed protection discourse a n d the instruments it u s e d w a s to transfer a c c o u n t a b i l i t y for p r o t e c t i o n to the owners and users o f the area. I n fact, r e g u l a t i o n o f l a n d use, w h i c h p r e d o m i n a n t l y restricted u r b a n i z a t i o n and b u i l d i n g s , reduced the u t i l i z a t i o n p o s s i b i l i t i e s o f  145  u r b a n i z e d a n d ' u r b a n i z a b l e ' l a n d - h o l d i n g s , i m p e d i n g v a l o r i z a t i o n a n d frustrating the e x p e c t a t i o n o f real estate g a i n .  T h e l e v e l o f c o n f l i c t between people interested i n watershed p r o t e c t i o n a n d the proprietors a n d users o f the protected area was determined b y the intensity o f real estate d e - v a l u a t i o n , w h i c h was caused b y the severity o f restrictions i m p o s e d o n the l a n d use a n d o c c u p a t i o n . Therefore, c o n f l i c t about watershed p r o t e c t i o n occurred i n response not o n l y to the p r o t e c t i o n itself, but also to the methods adopted to achieve protection.  In first category areas, s u c h as m a r g i n a l bands o f protected water b o d i e s , forest a n d i n d i g e n o u s vegetation, a n d grades higher than 60 percent, p u b l i c p o l i c i e s pretended to i m p e d e u r b a n uses and o b l i g e o w n e r s to preserve vegetation even i f it w a s o f n o u t i l i t y to t h e m . T h i s leads to idleness o f the areas, a n d exposed t h e m to i n v a s i o n a n d forest destruction. F r o m this attitude, it was expected r e c l a s s i f i c a t i o n o f the area, w h i c h w o u l d ease l a n d use a n d forest  protection  restrictions.  In s e c o n d category class A areas, already-urbanized, the l e g i s l a t i o n established u r b a n restrictions c o m p a t i b l e for the m o s t part w i t h standards o f the periphery. It l e d to o c c u p a t i o n o f these areas a c c o r d i n g to current m e t r o p o l i t a n patterns consistent w i t h the l e g i s l a t i o n .  In s e c o n d class B a n d C areas, w h i c h accounted for the r e m a i n i n g a n d larger part o f protected areas, p u b l i c p o l i c i e s established urban rules too restrictive i n c o m p a r i s o n to the u r b a n i z e d area. T h e effect w a s u n c o n t r o l l e d urban e x p a n s i o n , w i t h o u t m i n i m u m u r b a n standards, a r o u n d already u r b a n i z e d areas a n d i n p r e - e x i s t i n g allotments.  146  URBAN EXPANSION AND ITS CONSEQUENCES T h e u r b a n e x p a n s i o n o f Sao P a u l o has h a d m a r k e d characteristics. D u r i n g this century, the p u b l i c p o w e r t r i e d t o e q u i p i t s e l f t h r o u g h c o n s o l i d a t i o n o f n o r m a t i v e m e c h a n i s m s to face this g r o w t h . B u t , as c l e a r l y s h o w n b y the study o f the protected watershed areas, p u b l i c p o w e r has abdicated its r e s p o n s i b i l i t y to manage the c i t y ' s e x p l o s i v e e x p a n s i o n .  T h e private sector has assumed the almost absolute de facto c o n t r o l o f u r b a n l a n d . T h i s process c o n d e m n e d the residents o f the periphery to irregular h o u s i n g arrangements, i n i l l e g a l a n d precarious s u b d i v i s i o n s , i n face o f the e x i s t i n g l e g i s l a t i o n . I n a d d i t i o n , the p u b l i c p o w e r has been p a y i n g the p r i c e o f a v e r y expensive a n d b a d l y s e r v i c e d c i t y . P a r t i c u l a r l y i n the S o u t h e r n d i r e c t i o n o f Sao P a u l o c i t y , i n an area where e n v i r o n m e n t a l constraints w e r e i m p o r t a n t to protect the water resources o f the r e g i o n , b y this u r b a n process assumed a predatory f o r m . O c c u p a t i o n o f this r e g i o n t o o k place i n defiance o f legal i m p e d i m e n t s , o f m u n i c i p a l regulations g o v e r n i n g the s u b d i v i s i o n o f lots, a n d o f state l a w s w h i c h p r e s c r i b e d the modus operandi f o r watersheds protection.  The Watershed Protection Legislation complemented existing laws governing d i v i s i o n o f urban l a n d lots suitable for l a n d occupations, and defined preventative actions to c o n t r o l p o l l u t i o n a n d enhance p r e s e r v a t i o n o f the water sources  o f the m e t r o p o l i t a n r e g i o n . H o w e v e r , the l e g a l  m e c h a n i s m s i m p l e m e n t e d h a d a partial focus, a n d i g n o r e d the real p o s s i b i l i t y that measures o f this nature c o u l d not p r e v a i l i n the u r b a n c o n f i g u r a t i o n o f Sao P a u l o .  147  T h e n o r m a t i v e m e c h a n i s m s i m p l e m e n t e d were restricted to c o n t r o l l i n g a n d e s t a b l i s h i n g rules f o r land  s u b d i v i s i o n , w i t h o u t interfering i n the w a y  the  urban growth  was  happening.  The  m e c h a n i s m s w e r e insufficient to e l i m i n a t e the distortions p r o d u c e d b y the w a y l a n d h a d been s u b d i v i d e d , c o m m e r c i a l i z e d or a c c u m u l a t e d and t r a d i t i o n a l l y , i n patterns w h i c h retained e m p t y spaces for future s p e c u l a t i o n a n d directed u r b a n e x p a n s i o n towards the p e r i p h e r y . A d m i n i s t r a t i v e a n d l e g a l m e c h a n i s m s that w o u l d have a l l o w e d the state to curb the real estate s p e c u l a t i o n w e r e not i m p l e m e n t e d .  T h e p r o b l e m s that emerged w i t h the o c c u p a t i o n o f protected areas a r o u n d the G u a r a p i r a n g a R e s e r v o i r demonstrated that the l a w was not capable o f c o m p l e t e l y c o n t a i n i n g the o c c u p a t i o n o f the protected areas. T h e fact that the state neglected to a p p l y the l a w , a n d g r a d u a l l y r e n o u n c e d its r e s p o n s i b i l i t y as enforcer o f the l e g a l prescriptions, c o m b i n e d w i t h structural p r o b l e m s related to u r b a n e x p a n s i o n to create the present u r b a n situation a r o u n d the reservoir. T h e y are different characterisitcs o f the same posture.  148  CHAPTER 6 METROPOLITAN SAO PAULO WATER SUPPLY TODAY INTRODUCTION I n spite o f efforts, the nineties brought serious p r o b l e m s o f infrastructure a n d b a s i c water services to the Greater Sao P a u l o r e g i o n . C o n d i t i o n s reached the serious p o i n t where the efficient s u p p l y o f d r i n k i n g water to the m e t r o p o l i t a n p o p u l a t i o n was threatened.  T h e water resources o f the S P M A ,  once abundant a n d adequate, have been  progressively  deteriorating, due to u n c o n t r o l l e d u r b a n i z a t i o n i n the watersheds a n d the f a i l u r e to put i n place an efficient a n d clear p o l i c y for water preservation a n d c o n t r o l o f p o l l u t i o n .  T h e p r o b l e m transcends the l o c a l sphere, b e c o m i n g r e g i o n a l a n d s o m e t i m e s e v e n inter-state d e t e r m i n e d b y geographic features a r o u n d water bodies rather t h a n p o l i t i c a l b o u n d a r i e s . T h u s , the r o l e o f preventative measures is m o r e urgent a n d m o r e c o m p l e x . E f f e c t i v e p o l i c i e s m u s t be established to c o n t r o l p o l l u t i o n and to curb other endangering activities i n order to protect the watersheds. These measures must not be restricted to a single i n s t i t u t i o n a l l e v e l , because the p r o b l e m i n v o l v e s m a n y layers o f government, as w e l l as a m u l t i t u d e o f c i v i l i a n stakeholders w i t h interests d e p e n d i n g u p o n the q u a l i t y a n d quantity o f water.  T h e water resources o f the S P M A have been " p r o t e c t e d " b y a group o f l a w s i n place since 1975, but this p r o t e c t i o n has  been  inadequate  to  address  149  the  complex  issues  i n v o l v e d i n the  preservation o f m e t r o p o l i t a n watersheds.  Thus, new legislation was proposed and  extensively  d i s c u s s e d , a n d w a s f i n a l l y enacted i n late 1997. O p e n a c k n o w l e d g m e n t o f the m i s t a k e s i n c u r r e d b y the o l d l a w raised great expectations. C r u c i a l to efficient r e v i s i o n o f the W a t e r s h e d P r o t e c t i o n L e g i s l a t i o n w a s the need to address the institutional c o m p l e x i t y o f the S P M A , a n d to adequately define p o l i c i e s for m a i n t a i n i n g q u a l i t y and a v a i l a b i l i t y o f water resources, and for i m p l e m e n t i n g a d m i n i s t r a t i v e and legal m e c h a n i s m s for the w a t e r ' s use and protection.  R e c e n t r e v i s i o n o f the W a t e r s h e d P r o t e c t i o n L a w is briefly discussed i n this chapter, as it has been a k e y factor i n the G u a r a p i r a n g a R e c o v e r y P r o g r a m . T h e changes p r o p o s e d w i l l take effect at a l m o s t the same t i m e as the P r o g r a m finishes. Therefore, the n e w l a w c o u l d be either a source o f c o n t e n t i o n or a means o f support for the achievements  o f the P r o g r a m , or e v e n b o t h ,  d e p e n d i n g o n the issues i n v o l v e d .  A s part o f the d i s c u s s i o n o f the S P M water resources, and to learn m o r e about the G u a r a p i r a n g a area w h e r e the P r o g r a m is located, a b r i e f e x p o s i t i o n examines the characteristics o f its b a s i n f r o m p h y s i c a l features to the settlement process, w h i c h has been o c c u r r i n g w i t h i n the protected area s u r r o u n d i n g the reservoir.  W A T E R SUPPLY IN M S P W a t e r s u p p l y p r o b l e m s i n the m e t r o p o l i t a n r e g i o n o f Sao P a u l o affect not o n l y Sao P a u l o C i t y ' s p o p u l a t i o n , but also the p o p u l a t i o n o f the several m u n i c i p a l i t i e s w i t h i n the r e g i o n , as w e l l as  150  other cities and towns in a radius of at least 100 km. The environs of the watersheds have been supplying (and have been affected by) a population of more than 15 million people.  The SPMR has 2.8 million sewage connections, provided by SABESP (the public corporation responsible for sewage treatment and supplying of water within the region). This number means that 92 percent of households are served by the water company, while the remainder have another source of water supply: clandestine taps, collective taps, clandestine wells, artesian wells or water-trucks. The graph below shows the water production by source for the metropolitan region.  Total: 61.2 m3/s  • Rio Grande (Billings) 4,0 m3/s • Rio Claro 3,8 m3/s • Other systems 2,7 m3/s • Alto Tiete 5,9 m3/s H Guarapiranga 11,6 m3/s • Cantareira 33,2 m3/s  F i g u r e 6.1 — D i s t r i b u t i o n of w a t e r p r o d u c t i o n in Sao P a u l o Source: OESP, April 1998  There are seven water sources in the region (see Table 6.1 below). SABESP grades quality of water for domestic supply on a scale of 1 to 4. Class 1 watersheds have had their water approved for human consumption, either without treatment or with simple disinfecting. In class 2 are water bodies that receive conventional treatment and can be used to irrigate vegetables and fruits, and for leisure activities. Class 3 is unsuitable for irrigation and requires special treatment for human  151  c o n s u m p t i o n . C l a s s 4 is unsuitable for h u m a n c o n s u m p t i o n a n d does n o t support fishes o r a n y f o r m o f f a u n a o r flora.  T a b l e 6.1 — T h e W a t e r S u p p l y System f o r S P M A  Water Source  Served population  Production Location of water source  Class  m3/s  % Total  Cantareira  8.7 million  Atibaia Braganca Paulista and South o f M i n a s State  1  33,0  57  Guarapirang a  3.4 million  Sao Paulo Itapecerica da Serra E m b u Guacu  2  12,0  21  R i o Claro  1.1 million  Biritiba M i r i m  1  4,0  7  Billings  1.1 million  Sao Paulo and A B C Region  3-4  4,0  7  A l t o Tiete  0.8  M o g i das Cruzes and Suzano  1  3,5  6  A l t o Cotia B a i x o Cotia  0.2 0.1  Cotia  1  1,5  2  Source: SABESP/SOS Mananciais (1996)  T h e C a n t a r e i r a S y s t e m i s responsible f o r fifty seven percent o f the water d e l i v e r e d b y S A B E S P . B e c a u s e it i s l o c a t e d outside i n d u s t r i a l i z e d regions a n d does not present s i g n i f i c a n t i n d i c e s o f p o l l u t i o n , this watershed is c l a s s i f i e d as 1. I n other w o r d s , the water receives s i m p l e d i s i n f e c t i n g treatment p r i o r to b e i n g sanctioned f o r c o n s u m p t i o n . I n the same c o n d i t i o n are the R i o C l a r o S y s t e m ( M o g i das C r u z e s region), responsible f o r seven percent o f the s u p p l y ; the A l t o C o t i a S y s t e m (situated b e t w e e n the t o w n s o f C o t i a a n d V a r g e m G r a n d e ) , that contributes t w o percent; and the A l t o T i e t e S y s t e m ( S u z a n o a n d M o g i das C r u z e s ) , w i t h s i x percent o f the water s u p p l y .  152  T h e systems w i t h m o r e p r o b l e m a t i c water q u a l i t y are the B i l l i n g s a n d G u a r a p i r a n g a R e s e r v o i r s , situated w i t h i n the m e t r o p o l i t a n r e g i o n , a n d responsible for twenty eight percent o f water s u p p l y .  I n the B i l l i n g s S y s t e m , b a d water q u a l i t y is associated not o n l y w i t h i n d u s t r i a l p o l l u t i o n , but also w i t h the great n u m b e r o f residents - a r o u n d 3 5 0 , 0 0 0 people - l i v i n g i r r e g u l a r l y a l o n g the m a r g i n s o f the reservoir. T h r o u g h clandestine connections, a l o a d o f about 1000 tons per day o f sewage is p o u r e d i n natura into the reservoir. A n o t h e r source o f h a r m to the reservoir is water d i s c h a r g e d f r o m the e x t r e m e l y p o l l u t e d R i o P i n h e i r o s into the reservoir d u r i n g the r a i n y p e r i o d s . I n a d d i t i o n , d u r i n g drought years, the government has often a u t h o r i z e d the f o r c e d s i p h o n i n g o f the R i o P i n h e i r o s into the reservoir to guarantee electricity generation for industries i n C u b a t a o .  I n the G u a r a p i r a n g a S y s t e m , p r o b l e m s are caused b y dense o c c u p a t i o n o f its m a r g i n s b y m o r e than 6 0 0 , 0 0 0 people; clandestine sewage connections; i l l e g a l p r o l i f e r a t i o n o f garbage d u m p s , a n d also b y the h i g h l y d a m a g i n g a c t i v i t y o f m i n i n g sand for b u i l d i n g c o m p a n i e s .  T h e G u a r a p i r a n g a is a c t u a l l y c l a s s i f i e d as class 2, therefore n e e d i n g m o r e careful treatment t h a n class 1 water bodies. T h e B i l l i n g s S y s t e m , t h o u g h , is worse: its water is rated as class 3, a n d i n certain p e r i o d s , w h e n the reservoir receives water f r o m the P i n h e i r o s R i v e r , it is c l a s s i f i e d as 4  S A B E S P cannot meet the c o n s u m p t i o n d e m a n d o f a p p r o x i m a t e l y 3.2 m i l l i o n p e o p l e ,  who  frequently do not have water i n their h o u s e h o l d taps. T o m a k e this scenario w o r s e , a p p r o x i m a t e l y forty percent o f the distributed potable water is wasted due to clandestine t a p p i n g a n d l e a k i n g . R e p o r t s p u b l i s h e d b y S A B E S P ascribe this loss to the neglect, for years, o f i n v e s t m e n t i n efficient c o n t r o l l i n g a n d maintenance actions.  153  D u r i n g frequent,  extensive  periods, especially  d u r i n g the d r y season, part o f the  p o p u l a t i o n is under frequent shortage o f potable water. S A B E S P applies e m e r g e n c y  region's measures,  s u c h as d i s t r i b u t i o n shifts, i n order to a v o i d a s u p p l y i m b a l a n c e . P o t a b l e water is also w a s t e d w i t h i n the h o u s e h o l d . E d u c a t i o n a l c a m p a i g n s are needed to increase awareness a n d create habits o f o p t i m i z i n g water usage a n d a v o i d i n g wastefulness.  T H E PROTECTION OF T H E M R S P WATERSHEDS D u r i n g recent decades, the m e t r o p o l i t a n watersheds have been objects o f m u c h p o l e m i c o n h o w , not if, to preserve t h e m . H o w e v e r , measures a n d concepts d i s c u s s e d t o o k a n i m p o r t a n t t u r n t o w a r d s the late 1980s, w h e n p o p u l a t i o n and o f f i c i a l s o f different g o v e r n m e n t strata r e a l i z e d the degree to w h i c h water resources were b e i n g c o m p r o m i s e d .  It w a s no longer a d i s c u s s i o n o f p o l i t i c a l w h i m s or different e n v i r o n m e n t a l approaches. A s a v i t a l resource for h u m a n s u r v i v a l , the water sources were v i e w e d as a natural asset to be protected b y the different i n s t i t u t i o n a l levels o f government, as w e l l as b y the p o p u l a t i o n . T h e i r p r e s e r v a t i o n and r e c o v e r y f r o m early damages assumed p r i o r i t y .  The S P M A  lies i n a r e g i o n w i t h m a n y rivers, streams  a n d headsprings.  Its c o n t i n u o u s l y  u r b a n i z e d area covers 31 o f its 39 m u n i c i p a l i t i e s . T h e urgent n e e d to protect a n d preserve watershed areas cannot be disputed.  154  D i a g n o s i s o f the situation s h o u l d lead to i m p l e m e n t a t i o n o f effective p u b l i c p o l i c i e s c o n d u c i v e to the p r o g r e s s i v e  recovery,  i n quantity and q u a l i t y , o f water  resources.  Public  action  must  coordinate, articulate a n d i m p l e m e n t p o l i c i e s to r e a l l y protect the watershed areas.  H o w e v e r , these p o l i c i e s cannot restrict themselves s o l e l y to the a p p l i c a t i o n a n d o b s e r v a t i o n o f e x i s t i n g W a t e r s h e d P r o t e c t i o n L a w s . These l a w s are a usable t o o l but s h o u l d not be the o n l y one. T h e i r effectiveness w a s as l i m i t e d b y their i n t e r n a l i z e d contradictions a n d d i f f i c u l t i e s presented b y i n s p e c t i o n a n d actions to effectively protect the water sources. L a w s , per se, do not t r a n s f o r m reality. T r a n s f o r m a t i o n a l w a y s requires continuous h u m a n a c t i o n , p e r s e v e r i n g a n d r e s p o n s i b l e i n e n v i s i o n i n g the a c c o m p l i s h m e n t , i n this case, o f the desired protection.  It is i m p o r t a n t to c o n s i d e r the a c t i o n o f the state since the i n c e p t i o n o f watershed p r o t e c t i o n l a w s . A f t e r that p o i n t , this p o w e r considered i t s e l f to be satisfactory i n these areas, as i f p r o t e c t i o n c o u l d be obtained t h r o u g h the s i m p l e existence o f those l a w s .  P u b l i c p o w e r w a s not v i g i l a n t i n the protected areas. T h e y d i d not have e n o u g h p a t r o l p e o p l e i n place a n d it d i d not p u n i s h v i o l a t o r s ; d i d not p r o m o t e concrete actions encourage  enterprises  consistent w i t h the l a w ; d i d not p r o m o t e basic sanitation p r o g r a m s i n u r b a n i z e d areas; d i d not s e r i o u s l y attempt to d i m i n i s h water p o l l u t i o n . A c t i o n , w h e n i n i t i a t e d , was intermittent, a n d d i d not use adequate means a n d tools.  T h e state p u b l i c p o w e r is m a i n l y responsible for watershed p r o t e c t i o n because, c o n s t i t u t i o n a l l y , it has non-transferable r e s p o n s i b i l i t y for the equation a n d s o l u t i o n o f i n t e r - m u n i c i p a l matters. H o w e v e r , for the last t w o decades, it has been absent f r o m any effective measure to assure this  155  p r o t e c t i o n . Therefore, it does not possess the authority to d e m a n d that private agents c o m p l y w i t h existing laws.  T h e reality o f the protected watershed basins clearly d e m a n d e d i m p r o v e m e n t o f the e x i s t i n g l e g i s l a t i o n . T h e elapsed t i m e , the u n o r g a n i z e d l a n d o c c u p a t i o n , the absolute o m i s s i o n o f the p u b l i c p o w e r i n r e l a t i o n to the o c c u p a t i o n o f the areas and also b y c i v i l society: e v e r y t h i n g has c o n t r i b u t e d to the urgent need to i m p r o v e e x i s t i n g l a w s .  M o r e urgent than i m p r o v e m e n t o f the l e g i s l a t i o n t h o u g h , is i m p l e m e n t a t i o n o f effective p o l i c i e s expressed i n concrete a c t i o n for water protection. These p o l i c i e s m u s t be m o r e consistent w i t h the p u b l i c interest objectives that i n s p i r e d the l a w s than w i t h the exact a p p l i c a t i o n o f some o f their articles (dispositions).  A l s o , it is the duty o f state p u b l i c p o w e r to lead this process.  T h e state m u s t  articulate,  coordinate, p r o m o t e i n i t i a t i v e s , p r o v i d e incentive a n d lead p u b l i c a n d private stakeholders  to  m a k e the p u b l i c interest p r e v a i l over the private. F o r this to happen, it is i n d i s p e n s a b l e that, o n one side, the state g o v e r n m e n t w i l l effectively a c k n o w l e d g e its r e s p o n s i b i l i t y , a n d o n the other side, c i v i l society, c o n s c i o u s o f its role, w i l l be able to d e m a n d f r o m the g o v e r n m e n t  the  necessary a c t i o n .  T H E REVISION OF T H E M R S P WATERSHED PROTECTION L A W D i s c u s s i o n o f the p r o t e c t i o n o f watersheds  i n the S P M A  was, a n d s t i l l is, v e r y  complex,  t r a n s c e n d i n g the l i m i t s o f n a r r o w l e g i s l a t i o n , to t o u c h o n s o c i a l , p o l i t i c a l and u r b a n issues.  156  T h e l e g i s l a t i o n to be changed is 2 0 years o l d . D u r i n g the past t w o decades the s o c i o e c o n o m i c p r o f i l e o f the r e g i o n ' s 39 m u n i c i p a l i t i e s , as w e l l as that o f the w h o l e c o u n t r y , has r a d i c a l l y c h a n g e d . Therefore, distance has g r o w n between the m o t i v e s o f those w h o h a d f o r m u l a t e d the l a w a n d the e x i s t i n g reality w i t h i n watershed p r o t e c t i o n areas. T h i s causes great d i f f i c u l t y i n d e f i n i n g objectives, as w e l l as territorial i n c l u s i o n a n d management systems.  T h e r e has been consensus,  m a i n l y due to p r o f o u n d conceptual changes that f o l l o w e d  the  e v o l u t i o n o f the c i v i l society i n B r a z i l , a r o u n d the need for r e v i s i o n . I n a d d i t i o n , it is clear that the l e g i s l a t i o n d i d not meet its objective o f i m p e d i n g predatory o c c u p a t i o n o f the preserved area a r o u n d the reservoirs, rivers a n d streams, and that water q u a l i t y has c o n s e q u e n t l y deteriorated.  C o n c e r n for the e n v i r o n m e n t , i n c o r p o r a t i n g l i f e q u a l i t y a n d species p r e s e r v a t i o n as objectives, has caused g o v e r n m e n t to p r i o r i t i z e basic sanitation a n d sustainable d e v e l o p m e n t p r o g r a m s for r e c o v e r y a n d preservation. H o w e v e r , it has also fostered consciousness o f the need to replace b a s i c a l l y restrictive l e g i s l a t i o n w i t h l a w s that w o u l d i n d u c e c o m p a t i b l e uses o f the  water  resources, t a k i n g into c o n s i d e r a t i o n the e x t o l l e d p r i n c i p l e s o f the L o c a l A g e n d a 2 1 .  I n brief, n e w approaches towards protecting the m e t r o p o l i t a n watersheds w o u l d i d e a l l y be g u i d e d by:  •  integrated management o f water resources, w i t h water as an integral part o f the e c o s y s t e m , a n d a natural s o c i a l a n d e c o n o m i c c o m m o d i t y , w h o s e q u a l i t y a n d quantity determine its use;  •  c o n s i d e r a t i o n o f aspects related to l a n d use a n d water to be done for the w h o l e b a s i n or subbasins;  157  •  i n t e g r a t i o n o f the measures to protect a n d conserve water sources, w i t h clear p l a n n i n g for use o f l a n d a n d forests, a n d preservation/protection o f water bodies m a r g i n s a n d slopes;  •  c o n s i d e r a t i o n o f water as an i n d i v i s i b l e resource, that demands a h o l i s t i c  management  a p p r o a c h based o n a b a l a n c e d e x a m i n a t i o n o f p o p u l a t i o n a n d e n v i r o n m e n t needs. In  a d d i t i o n to  these  aspects,  it  s h o u l d take  into  account  new  constitutional  precepts  a c k n o w l e d g i n g the need for l e g i s l a t i o n to be c o m p a t i b l e w i t h water resource systems, sanitation a n d e n v i r o n m e n t , at federal a n d state levels.  O n e c a n also not forget that i n the S P M A water resource p r o b l e m s extend g e o g r a p h i c a l l y . T h e i r a n a l y s i s m u s t take into account a n area e x t e n d i n g f r o m the south o f M i n a s State to the south L i t t o r a l r e g i o n , i n c l u d i n g the C a m p i n a s r e g i o n , a n d the B a i x a d a Santista r e g i o n . T h i s area has seventy percent o f the Sao P a u l o State p o p u l a t i o n . T h i s w i l l require s p e c i a l levels o f p a r t i c i p a t i o n and c o o r d i n a t i o n , n e w to the B r a z i l i a n government institutional f r a m e w o r k .  T h e a i m s h o u l d be to articulate e x i s t i n g s u p p l y systems a n d those i n process o f i m p l e m e n t a t i o n . T h e g o a l s h o u l d be a c o m p r e h e n s i v e management o f the s o c i o e c o n o m i c a n d p h y s i c a l - t e r r i t o r i a l basis o f a l l water basins, i n the interest o f adequately  s u p p l y i n g the  SPMA,  a n d other  m e t r o p o l i t a n regions to be created i n the state.  H o w m u c h o f the above observations are effectively integrated into the n e w l e g i s l a t i o n for the watershed protections r e m a i n s to be seen. A g a i n , it is i m p o r t a n t to r e m e m b e r that l a w s are j u s t one part o f the process. M u c h w i l l depend o n constant m o n i t o r i n g a n d adjustment o f p o l i c i e s  158  established b y these l a w s , as w e l l as o n a v o i d i n g eventual m a n i p u l a t i o n a n d changes dictated b y gains i n the e c o n o m i c o r p o l i t i c a l sphere.  T H E GUARAPIRANGA HYDROGRAPHIC BASIN T h e total area o f the G u a r a p i r a n g a b a s i n , i.e., the r e g i o n drained b y the r i v e r s a n d streams i n the b a s i n , i s 63,698.21 h a . It i s the catchment area o f the second largest water s u p p l y source f o r the S P M A . T h e G u a r a p i r a n g a B a s i n is spread t h r o u g h the m u n i c i p a l i t i e s o f S a o P a u l o , E m b u , E m b u G u a c u , a n d Itapecerica d a Serra, a n d includes s m a l l portions o f C o t i a , J u q u i t i b a , S a o L o u r e n c o , Sao V i c e n t e a n d Itanhaem. T h e p r i n c i p a l rivers are the E m b u - M i r i m a n d E m b u - G u a c u .  According  to reports  f r o m the U n i t  f o r the M a n a g e m e n t  o f the S a n i t a t i o n P r o g r a m o f  G u a r a p i r a n g a ( U G P ) , the b a s i n h a d , i n 1995, a p o p u l a t i o n o f 6 2 2 , 5 0 0 , d i s t r i b u t e d as s h o w n i n T a b l e 6.2. P r e d o m i n a n t l y , this p o p u l a t i o n has l o w e r a n d extreme l o w e r i n c o m e s : average i n c o m e b e l o w U S $ 300/month. M o r e than 50 percent o f the " u r b a n " areas w i t h i n the b a s i n i s o c c u p i e d w i t h i l l e g a l s u b d i v i s i o n s a n d favelas, a n d has n o infrastructure. A p p r o x i m a t e l y 7 0 percent o f the total p o p u l a t i o n are w i t h i n S a o P a u l o M u n i c i p a l i t y ( S P M ) , l i v i n g w i t h i n the r e s e r v o i r borders and m a r g i n s o f rivers.  T a b l e 6.2 — D i s t r i b u t i o n o f P o p u l a t i o n i n the G u a r a p i r a n g a B a s i n  Municipality  Population  % of total  51,653  8.30  Sao Paulo  419,263  67.36  Itapecerica da Serra  102,986  16.55  Embu-Guacu  45,171  7.25  Embu  159  Cotia  1,855  0.30  535  0.08  Juquitiba  1,044  0.16  TOTAL  622,507  100.0  Sao Lourenco  Source: R I M A , UGP, Sao Paulo, 1996  A g r i c u l t u r a l a c t i v i t y i s largely  l o o s i n g its i m p o r t a n c e , a n d u r b a n p r o d u c t i o n activities are  characterized b y i n f o r m a l i t y . There i s n o structured e c o n o m i c a c t i v i t y p r e d o m i n a n t w i t h i n the basin.  F i g u r e 6.2 — M a p o f G u a r a p i r a n g a H y d r o g r a p h i c B a s i n Source: ISA SP, 1998  160  T h e Institute f o r T e c h n o l o g i c a l R e s e a r c h o f Sao P a u l o ( I P T ) has d e v e l o p e d a n a n a l y s i s o f the natural f r a g i l i t y o f the b a s i n a n d the dangers  o f occupation (Physical Aptitude for H u m a n  Settlements). F r o m i n f o r m a t i o n s u c h as landscape v a r i a t i o n , s o i l characteristics, a n d natural vegetation, this report attempts to define guidelines f o r u r b a n e x p a n s i o n a n d t e c h n i c a l c r i t e r i a f o r s u b d i v i s i o n projects. T h e g o a l is to m i n i m i z e geo-technical p r o b l e m s , i n p a r t i c u l a r e r o s i o n , s o i l sliding, silting and flooding.  T h e I P T study s u b d i v i d e s the G u a r a p i r a n g a B a s i n into four classes a c c o r d i n g t o capacity to support u r b a n i z a t i o n : favorable  areas;  areas w i t h l o c a l i z e d restrictions; areas f o r eventual  o c c u p a t i o n w i t h serious restrictions; a n d areas w i t h severe restrictions. T a b l e 6.3 s h o w s the results o f this analysis.  Table 6.3 — Physical Aptitude for Human Settlement within the Guarapiranga Basin Aptitude Class  A r e a in H a  % of T o t a l  Areas favorable  3,249.72  5.09  Areas with localized restrictions  16,385.31  25.73  Areas with serious restrictions  22,678.21  35.60  Areas with severe restrictions  15,375.79  24.11  Areas urbanized (built)  2,435.00  3.82  Water Bodies  2,706.37  4.25  782.18  1.23  63,698.21  100.00  Areas o f parks and reserves TOTAL  Source: ISA SP, 1998  M o r e than h a l f (59.71 percent) o f the total G u a r a p i r a n g a H y d r o g r a p h i c B a s i n area does not have p h y s i c a l characteristics adequate for h u m a n settlements. T h i s means that u r b a n g r o w t h o r u r b a n  161  o c c u p a t i o n i n these areas generates negative i m p a c t s o n the e n v i r o n m e n t . O n l y f i v e percent o f the areas are adequate for u r b a n i z a t i o n .  F i g u r e 6.3 — M a p of the P h y s i c a l A p t i t u d e f o r H u m a n Settlement Source: ISA SP,  1998  A n analysis o f the e v o l u t i o n o f l a n d o c c u p a t i o n d e v e l o p e d b y the Instituto S o c i o A m b i e n t a l ( I S A ) c o m p l e m e n t s the analysis o f the e n v i r o n m e n t a l c o n s e r v a t i o n o f the b a s i n . T h i s w o r k determines h o w m u c h o f the r e g i o n has already suffered alteration, the i m p a c t o f this alteration o n the o r i g i n a l e n v i r o n m e n t , a n d the l i k e l y i m p a c t o f these alterations, i n cases w h e r e n o measures are taken to curb t h e m . T a b l e 6.4 shows the e v o l u t i o n o f o c c u p a n c y between  1989 a n d  1996,  a c c o r d i n g to sub-basins o f the G u a r a p i r a n g a area.  A n a l y s i s o f l a n d use was a c h i e v e d b y c o m p a r i n g satellite images, d e v e l o p e d b y the N a t i o n a l S p a t i a l R e s e a r c h Institute ( I N P E ) between  1989 and 1996. L a n d uses c h o s e n were:  e x p a n s i o n (urban areas i n f o r m a t i o n or g r o w i n g ) ; b u i l t areas (areas already  urban  consolidated);  atrophic fields (non-urban areas altered b y h u m a n activities, s u c h as agriculture a n d pasture); e x p o s e d s o i l (areas w i t h o u t vegetation, native or introduced); native forest c o v e r e d areas ( M a t a Atlantica  i n several  stages o f regeneration);  and non-native  forest  cover  (silviculture  of  eucalyptus a n d p i n u s ) .  T h r o u g h this analysis it was p o s s i b l e to establish w h i c h l a n d uses have e v o l v e d p o s i t i v e l y (i.e. a larger area i n the 1996 satellite images than i n the 1989 images), a n d w h i c h h a d  negative  e v o l u t i o n (larger areas i n the 1989 images). These data revealed that the p o s i t i v e factors i n terms o f the p r o t e c t i o n o f the B a s i n (native forest c o v e r a n d s i l v i c u l t u r e ) d i m i n i s h e d d u r i n g the a n a l y s i s p e r i o d , a n d the negative  factors (urbanization, e x p o s e d  163  s o i l a n d atrophic fields)  increased  s i g n i f i c a n t l y . T h i s evidence makes it m o r e urgent to i m p l e m e n t measures to protect the b a s i n a n d c o n t r o l negative aspects o f l a n d o c c u p a t i o n .  Table 6.4 — Evolution of land use in the Guarapiranga Basin by sub-basins: 1989-1996 Year:  1989  1996  Variation  Ha  %  Ha  %  Ha  %  B u i l t areas  2,387.79  3.75  4,031.31  6.33  1,643.52  68.83  Urban expansion  4,213.08  6.61  6,043.20  9.49  1,830.12  43.44  Subtotal 1  6,600.87  10.36  10,074.51  15.82  3,473.64  52.62  Exposed soil  1,293.63  2.03  1,962.90  3.08  669.27  51.75  Atrophic fields  7,607.88  11.94  9,895.50  15.53  2,287.62  30.07  Subtotal 2  8,901.51  13.97  11,858.40  18.62  2,956.89  33.22  M a t a Atlantica initial: i n regeneration  6,937.65  10.89  5,237.00  8.22  -1,700.65  -24.51  24,370.20  38.26  19,989.30  31.38  -4,380.90  -17.98  5,046.39  7.92  5,697.90  8.95  651.51  12.91  Subtotal 3  36,354.24  57.07  30,924.20  48.55  -5,430.04  -14.94  Silviculture  5,003.07  7.85  4,074.02  6.40  -929.05  -18.57  Others (water bodies and satellite shadows)  6,838.52  10.74  6,767.08  10.62  63,698.21  100.0  63,698.21  100.0  M a t a Atlantica medium/advanced: in regeneration M a t a Atlantica dense: in regeneration  TOTAL  Source: ISA SP, 1998  Sub-basins near the reservoir are under significant stress. I n the m a p o f the sub-basins b e l o w , sub-basins 4 , 5 b , 6 a n d 7 are t y p i c a l l y u r b a n i z e d , w i t h u r b a n i z a t i o n coefficients above 75 percent. Sub-basins 2 0 , 2 4 , 19, 21 a n d 2 2 , o n the other h a n d , have coefficients b e l o w 4 percent. T h e s u b -  164  basins h a v i n g m o r e forest cover, a n d therefore m o r e p r o t e c t i o n , are m o r e distant f r o m the reservoir. I n contrast, the u r b a n sub-basins, i n v o l v i n g p r a c t i c a l l y the w h o l e  Guarapiranga  reservoir, have less forest c o v e r a n d less protection. T h e I S A study s h o w e d w h i c h sub-basins h a v e suffered greater impact. A s u r p r i s i n g result was that the sub-basins that suffered m o r e h y d r o d e g r a d a t i o n d u r i n g the p e r i o d studied were not the ones nearest the water, w i t h greater u r b a n c o n c e n t r a t i o n a n d scarce native vegetation. Rather, the sub-basins that suffered m o r e i m p r e s s i v e h y d r o degradation were 5 d , 10, 14, 16, 2 1 , 2 2 , 13, 14 a n d 26. Greatest i m p a c t w a s seen i n those w i t h the highest density o f native forest cover, p a r t i c u l a r l y sub-basins 2 0 , 2 2 , 24 a n d 2 6 . T h e results demonstrate  that the d i r e c t i o n o f efforts  towards  the r e c o v e r y  o f the  sub-basins  s u r r o u n d i n g the r e s e r v o i r is not entirely correct. I f i m m e d i a t e measures are not t a k e n to preserve the sub-basins that currently have the best e n v i r o n m e n t a l c o n d i t i o n s , resources spent i n the n e i g h b o r h o o d s a n d c o m m u n i t i e s s u r r o u n d i n g the reservoir w i l l not be sufficient to guarantee the q u a l i t y a n d quantity o f the water f r o m the G u a r a p i r a n g a . These sub-basins are the i n i t i a l source o f water, a n d they w i l l be c o m p r o m i s e d .  165  J  Figure 6.4 — Map of Guarapiranga Sub-Basins Source: ISA SP, 1998  CHAPTER 7 THE GUARAPIRANGA PROGRAM INTRODUCTION This  chapter  describes  and  analyses  the  Program  for  Environmental  Sanitation  of  the  G u a r a p i r a n g a W a t e r s h e d (also referred as G u a r a p i r a n g a R e c o v e r y P r o g r a m ) . It e x a m i n e s h o w the P r o g r a m w a s c o n c e i v e d a n d i m p l e m e n t e d , the m a i n agents a n d stages o f i m p l e m e n t a t i o n . T h e achievements obtained u n t i l September 1997 are described i n A n n e x C .  T h e W o r l d B a n k , the G o v e r n m e n t o f Sao P a u l o State and the Sao P a u l o C i t y G o v e r n m e n t f u n d e d the P r o g r a m . It was designed to undertake preventative a n d corrective a c t i o n , as w e l l as to i m p r o v e m a n a g e m e n t o f the watershed b y establishing a n e w range o f activities w i t h i n the area, d e s c r i b e d i n C h a p t e r 6.  L o c a t e d i n the Southwest o f S P M , the G u a r a p i r a n g a R e s e r v o i r w a s b u i l t between 1906 a n d 1908, w i t h the objective o f generating electricity for the P a r n a i b a Station i n the T i e t e R i v e r . I n 1927, the reservoir w a s integrated into the water s u p p l y system for S P M . I n i t i a l l y , the c o n t r i b u t e d w i t h 1 m /s. 3  reservoir  Its c o n t r i b u t i o n gradually increased 1 0 . 7 m 7 s , w h i c h corresponds to 2 0  percent o f the S P M A water supply. T o d a y , a p p r o x i m a t e l y 3.4 m i l l i o n people d e p e n d o n the G u a r a p i r a n g a reservoir, a n d it is the r e g i o n ' s secondary system ( I S A R e p o r t , 1998).  In the 1970s, special l e g i s l a t i o n was p r o m u l g a t e d to c o n t r o l the use a n d o c c u p a t i o n o f a l l watershed areas s u p p l y i n g the m e t r o p o l i t a n area. These l a w s , as discussed p r e v i o u s l y , h a d as  167  their m a i n objectives the maintenance a n d i m p r o v e m e n t o f the water sources, to guarantee their c a p a c i t y to f u l f i l l the water d e m a n d o f the m e t r o p o l i t a n p o p u l a t i o n .  I n spite o f these l e g a l instruments, w i t h i n the last t w o decades there has been an inordinate a n d chaotic o c c u p a t i o n o f the watershed areas, p a r t i c u l a r l y a r o u n d the G u a r a p i r a n g a reservoir. T h e increased d e m a n d for l a n d created b y accelerated u r b a n i z a t i o n o f the r e g i o n , as w e l l as the p r o x i m i t y o f the reservoirs to the important i n d u s t r i a l p o l e o f S o u t h Sao P a u l o , is a m o n g the m o s t i m p o r t a n t factors b e h i n d this o c c u p a t i o n . A p p r o x i m a t e l y 18 percent o f watershed  area  residents are s l u m d w e l l e r s . T h e r e m a i n i n g 82 percent are d i v i d e d between occupants o f i l l e g a l s u b d i v i s i o n allotments ( i n fact they are the larger part, o c c u p y i n g 33 k m  2  o f l a n d w i t h o u t any  sanitary infrastructure), a n d residents o f the area p r i o r to the l e g i s l a t i o n ( S R H S , R e p o r t 1993).  T h e f o r m a n d rate o f o c c u p a t i o n are a l a r m i n g , and represent a n i n c r e a s i n g threat to the water q u a l i t y o f the G u a r a p i r a n g a R e s e r v o i r . T h e most serious p r o b l e m is the v o l u m e o f o r g a n i c m a t e r i a l , e s p e c i a l l y f r o m domestic sources, that is d i s c h a r g e d w i t h no treatment into water b o d i e s c o n n e c t e d to the reservoir.  T h i s p o l l u t i o n causes e u t r o p h i c a t i o n o f the water bodies, b y p r o v o k i n g the u n c o n t r o l l e d g r o w t h o f algae a n d other m i c r o o r g a n i s m s . T o d a y , phosphorus and n i t r o g e n concentrations i n the water are r i s i n g constantly, p u t t i n g the water at risk.  T h e first m a j o r c r i s i s i n the G u a r a p i r a n g a R e s e r v o i r happened i n 1990, w h e n algae spread throughout the reservoir, affecting the q u a l i t y o f water. These algae liberate t o x i n s a n d g i v e water a n unpleasant taste a n d nasty odor. T h e i r g r o w t h was n o u r i s h e d b y o r g a n i c discharges i n the  168  reservoir - the d o m e s t i c sewage. I n some instances, algae b l o c k e d S A B E S P filters, s u c h w a s their quantity.  I n 1 9 9 1 , faced w i t h the r i s k o f l o s i n g the reservoir as a water  source  d u e to i n c r e a s i n g  c o n t a m i n a t i o n , the State o f Sao P a u l o G o v e r n m e n t created a task force to d e s i g n a sanitation a n d environmental  program  f o r the G u a r a p i r a n g a  Watershed,  under  the c o o r d i n a t i o n  o f the  Secretariat f o r the W a t e r Resources a n d Sanitation ( S R H S ) . I n 1992, the State o f S a o P a u l o , the Sao P a u l o C i t y G o v e r n m e n t a n d the W o r l d B a n k s i g n e d a l o a n contract f o r the r e c o v e r y o f the G u a r a p i r a n g a W a t e r s h e d area, a l l o c a t i n g U S $ 2 6 2 m i l l i o n f o r the Project for Sanitation of the Guarapiranga  Environmental  Watershed ( W B P r o g r a m R e p o r t , 1992)  A s stated i n the o f f i c i a l d o c u m e n t a t i o n , the m a i n objectives o f the Project are:  •  to ensure the q u a l i t y o f the water s u p p l y o f the S a o P a u l o M e t r o p o l i t a n R e g i o n  •  to d e v e l o p l o c a l t e c h n i c a l , f i n a n c i a l a n d institutional capacity f o r the m a n a g e m e n t  o f the  b a s i n , w i t h i n sustainable d e v e l o p m e n t p r i n c i p l e s ; •  to ameliorate the l i f e q u a l i t y o f the 5 4 8 , 0 0 0 residents  o f the watershed  area,  through  o p t i m i z a t i o n a n d e x p a n s i o n o f the sanitation n e t w o r k (sewage, garbage c o l l e c t i o n a n d f i n a l disposal) •  to create parks a n d green areas, a n d restore native forest.  T h e P r o g r a m has encountered p r o b l e m s d u r i n g i m p l e m e n t a t i o n due to the s l o w disbursement o f funds, p a r t i c u l a r l y f o r s o c i a l h o u s i n g projects f r o m the S a o P a u l o State. M u c h has b e e n a c h i e v e d , but questions r e m a i n regarding maintenance o f these achievements. T h e c o n t i n u o u s i n f l u x o f  169  n e w residents to the e x i s t i n g a n d upgraded favelas a r o u n d the reservoir, w h i c h are n o w m o r e attractive w i t h better l i v i n g c o n d i t i o n s , is p a r t i c u l a r l y w o r r i s o m e .  A l s o , d i f f i c u l t i e s a r i s i n g f r o m u n e v e n access to t e c h n i c a l expertise a n d resources e x p e r i e n c e d b y municipalities  w i t h i n the  basin,  illustrates  the  complication  of  maintaining  information,  m o n i t o r i n g , a n d investment to sustain the P r o g r a m ' s gains. A b s e n c e o f real c o o p e r a t i o n between i n v o l v e d institutions a n d agencies has made the project d i f f i c u l t to i m p l e m e n t . T h e e d u c a t i o n a l c o m p o n e n t , v e r y i m p o r t a n t to sustaining gains o f the p r o g r a m t h r o u g h p o p u l a r awareness o f preservation, has been extremely w e a k , and has not, so far, h a d a s i g n i f i c a n t i m p a c t . M o r e t h a n a n y t h i n g else, c o m p l a i n t s about the l e v e l o f c o m m u n i t y a n d N G O s p a r t i c i p a t i o n i n a l l steps o f the p r o g r a m have been noted. T h e recent report f r o m I S A (discussed i n chapter 6) is also a source o f c o n c e r n , because it shows  evidence  that the real challenge  o f m e d i u m and long  term  preservation w i t h i n the b a s i n has not been taken into account: n o s i g n i f i c a n t effort is b e i n g m a d e to protect the water sources i n the areas where water emerges. These areas have s h o w n the highest degree o f degradation i n the last seven years, a n d u r g e n t l y need protective measures.  T H E PROGRAM T h e P r o g r a m w a s initiated i n January 1993, f o l l o w i n g the l o a n agreement. It w a s d e s i g n e d as b o t h a corrective a n d preventative strategy to m a i n t a i n the reservoir as a healthy a n d r e l i a b l e source o f water for the S P M A . T o achieve its goals, the P r o g r a m p r o p o s e d these strategic points:  170  •  emergency  corrective measures: e x p a n s i o n o f sewer system; i m p r o v e m e n t s i n s o l i d waste  c o l l e c t i o n a n d d i s p o s a l services; the r e h a b i l i t a t i o n o f the u r b a n areas affected b y s o l i d waste d i s p o s a l ; m o d e r n i z a t i o n a n d r e h a b i l i t a t i o n o f urban drainage systems; the c o n s t r u c t i o n o f basic  sanitation a n d other  infrastructure  facilities  in low-income  communities;  the  re-  u r b a n i z a t i o n o f s l u m s ; the resettlement o f residents o f r i s k areas; the reforestation o f r i v e r s banks a n d p u b l i c areas; and the creation o f parks a n d leisure areas. •  m e d i u m a n d l o n g - t e r m preventative measures: a b a s i n management strategy that c o m b i n e s c o r r e c t i v e m e c h a n i s m s w i t h a l o n g - t e r m p r e v e n t i o n strategy a c c o r d i n g to a n E n v i r o n m e n t a l P r o t e c t i o n a n d D e v e l o p m e n t M a s t e r P l a n ( P D P A ) ; creation o f a watershed o p e r a t i o n a l unit; a d o p t i o n o f i m p r o v e d m a n a g e r i a l instruments; m o r e effective f i s c a l a n d m o n i t o r i n g a c t i v i t i e s ; p r o m o t i o n o f e n v i r o n m e n t a l education and e n v i r o n m e n t a l l y safe activities; and sector studies a n d projects i n h o u s i n g , s o l i d waste, sewerage a n d drainage, m i n i n g a n d water q u a l i t y c o n t r o l to assess h o w the private sector c a n be attracted to this area.  I n order to m a k e these measures m o r e efficient, the P r o g r a m p l a n n e d three sets o f o p e r a t i o n a l tools:  •  i n f o r m a t i o n base a n d assessment tools: a geographic m o d e l that relates  i n f o r m a t i o n s y s t e m ; a water q u a l i t y  l a n d use a n d water q u a l i t y i n the reservoir; e c o n o m i c  and financial  m e c h a n i s m s for sustaining watershed assessment; a n d t e c h n i c a l directives for l a n d use a n d infrastructure systems operation;  171  •  program monitoring: ongoing technical verification o f water quality; and monitoring and enforcement o f the operational and financial responsibilities o f institutions and agencies involved;  •  reorganization o f the institutional framework: the heart o f the program is a new management paradigm consisting o f an integrated  network o f several institutions, including local  authorities, community leaders, universities, research  institutes,  and  non-governmental  organizations.  Housing Solid Waste Drainage Sewerage Mining Water Quality Control  Management Strategy  OBJECTIVE  Sector Inputs  Water resource conservation (quality and quantity)  ^1  Watershed Master Plan  Incentives tor economically and environmentally sustainable activities  Management Instruments I  GIS  Correlational model land use and water quality  Economic and financial costs  Institutional Framework  Technical Directives  F i g u r e 7.1 — G u a r a p i r a n g a W a t e r s h e d M a n a g e m e n t System Source: WB, 1995  To ensure better water quality, the program has established water quality indicators to measure effectiveness at controlling pollution. The target is to reduce phosphorus load by 45 percent i n the next five years from 192 kg/day to 87 kg/day.  A t the time o f the fieldwork, the following specific projects were being implemented:  172  e x p a n s i o n o f the sewer c o l l e c t i o n n e t w o r k ; u p g r a d i n g o f s l u m s a n d squatter settlements; i m p r o v e m e n t to e x i s t i n g inoperative sewer n e t w o r k ; i m p l e m e n t a t i o n o f plans for garbage c o l l e c t i o n a n d d i s p o s a l ; a c q u i s i t i o n o f street c l e a n i n g equipment; restoration o f b o r d e r l a n d vegetation i n railroads, roads a n d water b o d i e s ; i m p l e m e n t a t i o n o f 28 green areas and 6 parks; assessment o f f i s h species a n d e v a l u a t i o n o f a p r o p o s e d p i s c i c u l t u r e (fish f a r m i n g ) project; m i n i n g c o n t r o l a n d c o r r e c t i o n o f m i n i n g techniques; l y m n o l o g i c a l d i a g n o s i s a n d c o n t r o l p l a n f o r algae b l o s s o m ; assessment a n d c o n t r o l o f diffuse p o l l u t i o n sources; re-registering o f i n d u s t r i a l p o l l u t i o n sources; p r o g r a m s f o r sanitary a n d e n v i r o n m e n t a l education; leadership t r a i n i n g ; r e i n f o r c e m e n t o f l a n d o c c u p a t i o n controls; f e a s i b i l i t y studies f o r e c o n o m i c ventures i n the watershed area; a management plan.  Institutional Arrangement  173  Figure 7.2 — Guarapiranga Watershed Management Source: WB, 1995  A n administrative unit (Unidade de Gerenciamento - UGP), based in the SRHS, coordinates the Program, with a threefold consultant council. Representatives from the state, the municipalities and civil society, compose the 42-member council.  Water Resources State Council Water Resources State Fund (FEHIDRO)  Technical Groups  State Secretariat Municipalities Society University Public Minislry  State Society Municipalities  Waterbasm Committee  Figure 7.3 — Water Resources Integrated Management System Source: WB, 1995  The executive institutions for the Program are: State Secretariat for Water Resources and Sanitation (SRHS); State Secretariat for the Environment (SMA); Sao Paulo City Government and the public corporations: SABESP (water and sewage systems), Eletropaulo (energy) and Companhia de Desenvolvimento Habitacional e Urbano - C D H U (public housing).  From 1993 to 1997 Sao Paulo City administration implemented slum upgrading projects, including stabilization of landslide areas, drainage works, water supply networks, isolation of sewer systems, and amelioration of road access for garbage collection.  Since 1995, the Sao Paulo Government has started the following projects:  174  U n d e r the Secretariat for W a t e r Resources:  •  e x t e n s i o n o f the sewage n e t w o r k a n d i s o l a t i o n o f sewer systems, to serve a p p r o x i m a t e l y 80 percent o f the p o p u l a t i o n ;  •  operational i m p r o v e m e n t s i n the e x i s t i n g sewage n e t w o r k (serving 2 7 0 , 0 0 0 p e o p l e ) ;  •  i m p r o v e m e n t o f the water treatment process, u s i n g n e w techniques to c o n t r o l algae b l o s s o m and euthrophication;  •  d i v e r s i o n o f p o l l u t i o n sources  affecting  the G u a v i r u t u b a a n d Itupu r i v e r s ,  Guarapiranga  reservoir tributaries; •  i m p r o v e m e n t (correction a n d extension) and e n v i r o n m e n t a l c o n t r o l o f the c o l l e c t i o n , treatment and f i n a l d i s p o s a l o f garbage w i t h i n the m u n i c i p a l i t i e s o f E m b u , E m b u G u a c u a n d Itapecerica d a Serra;  •  a c q u i s i t i o n o f e q u i p m e n t for street c l e a n i n g and garbage c o l l e c t i o n ;  •  c r e a t i o n o f a c o m p u t e r i z e d m a n a g e r i a l i n f o r m a t i o n system a n d a management p l a n ;  •  e n v i r o n m e n t a l a n d sanitation education p r o g r a m s ;  •  t e c h n i c a l capacity b u i l d i n g programs for the management o f watershed areas.  U n d e r the State a n d M u n i c i p a l Secretariats for H o u s i n g :  •  r e l o c a t i o n o f residents out o f c r i t i c a l areas, where it is not p o s s i b l e to extend the sewage s y s t e m a n d garbage c o l l e c t i o n , a n d f r o m areas subject to f l o o d i n g a n d l a n d s l i d e ;  •  construction o f public housing.  U n d e r the State Secretariat for the E n v i r o n m e n t :  175  •  d i a g n o s i s o f native vegetation and creation o f m o d e l s to restore native vegetation;  •  restoration o f vegetation  s u r r o u n d i n g water bodies, and i n r o a d and r a i l r o a d b o r d e r l a n d s ,  w i t h i n the watershed areas ( " M a t a C i l i a r " ) ; •  u r b a n reforestation;  •  d e s i g n and b u i l d i n g o f parks: E c o l o g i c o do G u a r a p i r a n g a ; I l h a dos E u c a l i p t o s ; V a r z e a do E m b u G u a c u ; L a g o Francisco R i z z o ; Ecologico da Represinha; A q u a r i o ;  •  r e v i t a l i z a t i o n o f the h i s t o r i c tourist center o f E m b u - P r a c a dos Jesuitas;  •  i m p l e m e n t a t i o n o f f i s h i n g and p i s c i c u l t u r e projects;  •  adjustment and c o n t r o l o f m i n i n g sites;  •  l y m n o l o g i c a l a n d e c o l o g i c a l diagnosis o f reservoirs;  •  p o l l u t i o n : re-registering o f i n d u s t r i a l p o l l u t i o n sources and registering o f special sources o f p o l l u t i o n / e v a l u a t i o n o f diffuse sources o f p o l l u t i o n ;  •  sanitation a n d e n v i r o n m e n t a l education;  •  analysis o f the e c o n o m i c f e a s i b i l i t y o f enterprises e n v i r o n m e n t a l l y c o m p a t i b l e w i t h b a s i n protection;  •  i n t r o d u c t i o n o f equipment for p a t r o l l i n g and m o n i t o r i n g w i t h i n the watershed protected area.  I n A n n e x C , there is a b r i e f d e s c r i p t i o n o f achievements f i e l d w o r k , w i t h a r e l a t i o n o f the p r i n c i p a l projects.  176  o f the P r o g r a m at the t i m e o f the  T H E A C T U A L STAGE OF T H E GUARAPIRANGA PROGRAM T h e G u a r a p i r a n g a P r o g r a m has e v o l v e d over three reasonably distinct phases. T h e first phase o f f i c i a l l y f i n i s h e d w i t h the s i g n i n g o f the l o a n agreement between the B r a z i l ' s  governments  (federal, state a n d m u n i c i p a l ) and the W o r l d B a n k , i n D e c e m b e r 1992. A t that t i m e , a w i d e range o f activities (corrective and preventative  p h y s i c a l interventions, t e c h n i c a l projects,  scientific  studies) w a s prepared, w h i c h constituted the P r o g r a m base, a n d these w e r e d i s t r i b u t e d a m o n g an e q u a l l y w i d e g r o u p o f p u b l i c institutions, responsible for the P r o g r a m d e v e l o p m e n t . T h i s w a s a c l e a r l y successful  stage. T h e t i m e allotted for the preparation, a l t h o u g h short, p e r m i t t e d the  a s s e m b l y o f a n i n n o v a t i v e t e c h n i c a l a n d institutional p r o g r a m , w h o s e c h o s e n route has sought to break the i n e r t i a o f the several compartments o f the p u b l i c a d m i n i s t r a t i o n .  T h e s e c o n d phase w a s the i m p l e m e n t a t i o n o f the contract w i t h the W o r l d B a n k , early i n 1995. Q u i c k i m p l e m e n t a t i o n o f the P r o g r a m was frustrated b y u n d e f i n e d a d m i n i s t r a t i v e a c t i o n a n d consequent d i f f i c u l t i e s for the f i n a n c i a l counterpart resources f r o m the state, w h i c h needed to be a v a i l a b l e at the same t i m e as the W B resources.  D u r i n g this p e r i o d , v e r y little was a c c o m p l i s h e d . S P M started u r b a n i z a t i o n w o r k s i n seven s l u m s that sheltered 2 , 0 0 0 f a m i l i e s . S A B E S P f i n i s h e d the w o r k necessary  for r e v e r s i o n , d u r i n g d r y  seasons, o f the G u a v i r u t u b a a n d Itupu rivers, the t w o m o r e p o l l u t e d tributaries i n the left m a r g i n o f the reservoir. I n a d d i t i o n , it initiated operational i m p r o v e m e n t o f the n e t w o r k s a n d m a i n collectors o f e x i s t i n g sewers, and re-designed complete extension plans for the sanitary d r a i n i n g s y s t e m ( w i t h o u t c o m p l e t i n g tender procedures for i n i t i a t i o n o f the w o r k ) . T h e U G P i n i t i a t e d studies for a c o m p r e h e n s i v e p l a n for d e v e l o p m e n t a n d e n v i r o n m e n t a l p r o t e c t i o n o f the water  177  b a s i n . W a t e r c o n d i t i o n s i n the reservoir w e r e s t a b i l i z e d , m a i n l y due to water q u a l i t y m o n i t o r i n g b y S A B E S P (though w i t h still d i s q u i e t i n g levels o f p o l l u t i o n ) .  T h e t h i r d phase was a n d is b e i n g m a r k e d b y the clear d e f i n i t i o n o f the P r o g r a m ' s p r i o r i t y illustrated b y r e s o l u t i o n o f the lateness o f payments to constructions c o m p a n i e s a n d consultant f i r m s contracted.  S e v e r a l a c t i v i t y fronts were o p e n and, i n general, i m p l e m e n t a t i o n o f the  P r o g r a m w a s accelerated, to the p o i n t that, i n spite o f some schedule delays, e v a l u a t i o n b y the W B i n D e c e m b e r 1995 was p o s i t i v e .  T h e p r a c t i c a l a n d m o r e significant outcomes have been:  •  S A B E S P proceeded w i t h the necessary interventions for operational i m p r o v e m e n t o f e x i s t i n g sanitary  systems.  It c o n c l u d e d tender processes for c o n s t r u c t i o n o f the n e t w o r k  sewer  e x p a n s i o n , m a i n collectors and sewer e l e v a t i o n stations. These contracts totaled U S $ 58 million. •  S P M f i n i s h e d u r b a n i z a t i o n w o r k s i n four o f the seven s l u m s i n i t i a l l y targeted. T h e others are b e i n g c o n c l u d e d . E i g h t y f a m i l i e s w e r e r e m o v e d f r o m these s l u m s a n d p l a c e d i n C D H U p u b l i c h o u s i n g units. T e c h n i c a l w o r k s for another thirty s l u m s are c o m p l e t e , a n d contracts  for  c o n s t r u c t i o n w o r k are expected to f o l l o w . •  C D H U w i l l c o m p l e t e c o n s t r u c t i o n o f 9 0 0 h o u s i n g units for the f a m i l i e s to be r e m o v e d f r o m the thirty s l u m s b e i n g upgraded b y S P C . It has also initiated plans to upgrade s l u m areas i n E m b u , Itapecerica d a Serra, a n d E m b u - G u a c u , m u n i c i p a l i t i e s w i t h i n its j u r i s d i c t i o n .  178  •  T h e S M A m a d e several contracts, especially those c o n c e r n i n g c o n s t r u c t i o n o f the P a r q u e E c o l o g i c o do G u a r a p i r a n g a , the largest park o f the P r o g r a m , a n d updated registration o f p o l l u t i o n sources i n the area.  •  U G P is c o n c l u d i n g a geographical i n f o r m a t i o n system o f the watershed area, S I G - S i s t e m a de Informacoes  Geograficas  d a B a c i a . T h e system consists o f a data bank o f d i g i t i z e d  geo-  referred i n f o r m a t i o n . S I G w i l l be operated i n an integrative f o r m ; the e q u i p m e n t necessary to its o p e r a t i o n is b e i n g tendered. T h i s project is part o f the d e v e l o p m e n t a n d e n v i r o n m e n t a l p r o t e c t i o n p l a n for the watershed area. •  The  Conselho  Consultivo  do  Programa  Guarapiranga  (Consultative  Council  for  the  G u a r a p i r a n g a P r o g r a m ) is a tripartite o r g a n i s m that brings together representatives o f the state g o v e r n m e n t , o f watershed area m u n i c i p a l i t i e s a n d c i v i l society. It constitutes a f o r u m for f o l l o w - u p a n d d i s c u s s i o n o f activities d u r i n g p l a n n i n g a n d i m p l e m e n t a t i o n . W h i l e not t o t a l l y a u s p i c i o u s , outcomes  o f this phase  have p o s i t i v e aspects. I n p a r t i c u l a r ,  c o l l e c t e d sewage v o l u m e was increased t h r o u g h extension o f the c o l l e c t i o n n e t w o r k , r e d u c i n g the a m o u n t o f sewage c a r r i e d b y streams to the reservoir.  A l s o , u r b a n i z a t i o n o f seven s l u m s permitted i m p l e m e n t a t i o n o f sanitation systems, as w e l l as general i m p r o v e m e n t o f h o u s i n g c o n d i t i o n s o f these settlements. T h e p h y s i c a l interventions i n process, a n d the ones to be initiated a l l o w us to foresee n e w p o s s i b i l i t i e s for i m p r o v e m e n t o f l i v i n g c o n d i t i o n s a r o u n d the G u a r a p i r a n g a , w i t h associated q u a l i t y (equal to its q u a l i t y o f three years ago).  179  maintenance  o f reservoir  water  T h e d e v e l o p m e n t o f t e c h n i c a l tools, s u c h as S I G , w i l l l i k e l y o p e n the w a y to a n e w approach  for the  Guarapiranga  reservoir.  However,  it is  important to  management  consider  that  the  effectiveness o f these tools depends o n a l o n g overdue i n n o v a t i v e i n s t i t u t i o n a l a p p r o a c h , i n which  i n f o r m a t i o n is constantly  and reliably collected  a n d shared  among  municipalities,  institutions, a n d p u b l i c corporations. I n spite o f demonstrated advances, the future is uncertain. A f u n d a m e n t a l c o n c e r n is to f i n d w a y s o f strengthening a n d d i s s e m i n a t i n g gains f r o m the P r o g r a m .  A n o t h e r source o f uncertainty is the need for institutional o r g a n i z a t i o n a n d strategy to deal w i t h the several aspects o f management o f the water b a s i n territory. I n other w o r d s , the search for w a y s to c o n t a i n u r b a n o c c u p a t i o n o f the watershed area still presents a great challenge to the future o f the watershed.  T h e issue o f territorial c o n t r o l opens a w i d e range o f questions. It opens u p d i s c u s s i o n about the f u n c t i o n a n d l i m i t s o f the state i n its institutional capacity: what is i n reality the range o f u r b a n planning?  These questions extend also to the r e v i s i o n o f e x i s t i n g l e g i s l a t i o n o f S P M A watershed p r o t e c t i o n . T h e y raise the p o s s i b i l i t y o f integrating several p u b l i c activities - sector p l a n n i n g , e x p a n s i o n a n d operation  of  sanitation  physical  infrastructure  systems,  transportation,  roads,  drainage,  e q u i p m e n t , etc., currently operating w i t h a very l o w degree o f integration.  I n m a n y aspects, the responses to these questions are l i n k e d to acceleration o f the P r o g r a m a n d i m p l e m e n t a t i o n o f its goals. C o n c l u s i o n was i n i t i a l l y set for 1998, but has been g i v e n a one-year extension. T h e P r o g r a m ' s success w i l l have a p o s i t i v e i m p a c t u p o n projects  180  a n d plans  for  r e c o v e r y o f the B i l l i n g s R e s e r v o i r , the C a p i v a r i / P i r a c i c a b a , a n d P a r a i b a do S u l watersheds, p r o g r a m s i n i n c u b a t i o n , w h i c h address the c o m p l e x relationships b e t w e e n u r b a n e c o n o m i c d e v e l o p m e n t a n d e n v i r o n m e n t a l protection. T h i s is a theme r e l a t i v e l y n e w to the B r a z i l i a n p u b l i c agenda, a n d needs to be o p e n l y and w i d e l y discussed between stakeholders.  ANALYZING T H E PROGRAM A c c o r d i n g to the team responsible for its i m p l e m e n t a t i o n , the G u a r a p i r a n g a R e c o v e r y P r o g r a m does not c l a i m to solve the w h o l e p r o b l e m o f reservoir p o l l u t i o n a n d degradation. It focuses o n p r i o r i t y actions to address the m o s t c r i t i c a l factors i n water q u a l i t y deterioration. T h e s e actions c o m p r i s e several sub-programs a i m e d at p r e v e n t i n g the loss o f this water source, w h i c h d i r e c t l y or i n d i r e c t l y affects the l i v e s o f people i n the S P M A . T h e P r o g r a m also tries to e x p l o r e n e w p o s s i b i l i t i e s for e n v i r o n m e n t a l interventions i n the context o f megacities.  Nonetheless,  some  o f the  goals  have  not been  a c c o m p l i s h e d , either because  of  specific  c i r c u m s t a n c e s d u r i n g i m p l e m e n t a t i o n , s u c h as a change o f m u n i c i p a l or state g o v e r n m e n t , or because gaps i n the c o n c e p t u a l f r a m e w o r k affected its design. T h i s research c o m m e n t s o n the s u i t a b i l i t y o f v a r i o u s P r o g r a m actions a n d i m p l e m e n t a t i o n procedures. A l s o , to m o r e c o m p l e t e l y understand the issue o f tenure security w i t h i n the watershed p r o t e c t i o n area, it  discusses  reflections o f c o m m u n i t y leaders i n t e r v i e w e d .  T h e i n t e r v i e w s i n particular, a l o n g w i t h newspapers' articles c o l l e c t e d , i n i t i a l l y suggested m a i n approaches to e v a l u a t i n g the P r o g r a m ' s performance:  181  two  •  p r o b l e m s o f project d e s i g n  •  barriers to project i m p l e m e n t a t i o n .  Y e t , l i n k s between these t w o approaches became m o r e o b v i o u s as analysis o f the i m p l e m e n t a t i o n o f the P r o g r a m progressed.  F u r t h e r m o r e , detailed analysis o f o f f i c i a l data, d o c u m e n t s  and  s u p p o r t i n g b i b l i o g r a p h i c m a t e r i a l brought c l a r i f i c a t i o n to the issue o f a c c o u n t a b i l i t y , so this was e x p l o r e d i n r e l a t i o n to the analysis o f some aspects o f the P r o g r a m .  T h e P r o g r a m has h a d m a n y p o s i t i v e impacts that s h o u l d be a c k n o w l e d g e d , because they c o u l d h a r d l y have been o b t a i n e d w i t h o u t the P r o g r a m . T h e y emerged f r o m activities a n d experiences o f the d e s i g n a n d i m p l e m e n t a t i o n phases, and e x e m p l i f y advances i n the fight against e n v i r o n m e n t degradation i n Sao P a u l o . A m o n g these are:  •  the P r o g r a m has been instrumental i n m o t i v a t i n g and r e i n f o r c i n g changes to the W a t e r s h e d Protection L a w ;  •  the P r o g r a m has h a d a p o s i t i v e i m p a c t i n the recovery o f degraded areas;  •  the P r o g r a m has s o l v e d some i m m e d i a t e p r o b l e m s a r i s i n g f r o m o c c u p a t i o n o f  dangerous  areas; •  a base o f l o c a l k n o w l e d g e has been d e v e l o p e d that c a n be a p p l i e d to s i m i l a r projects w i t h i n the m e t r o p o l i t a n area;  •  there have been gains i n l o c a l p e o p l e ' s capacity;  •  the P r o g r a m has e x p o s e d the role o f government i n e n c o u r a g i n g o c c u p a t i o n o f watershed reservation areas;  •  W a t e r s h e d B a s i n C o m m i t t e e s have been strongly r e i n f o r c e d ;  182  N e g a t i v e i m p a c t s illustrate the P r o g r a m ' s conceptual frailties. A s p e c t s that s h o u l d have  been  addressed at the d e s i g n stage, m a n y o f t h e m associated w i t h the s p e c i f i c c o n d i t i o n s faced b y Sao P a u l o i n the 1990s, have l i m i t e d the p o s s i b i l i t y o f attaining the expected results w i t h i n a d e f i n e d t i m e frame.  T h e f o l l o w i n g list outlines where the P r o g r a m appears to be h a v i n g negative i m p a c t s , or to c o m p l e t e l y l a c k f o r c e f u l effect:  •  the P r o g r a m ' s i n s t i t u t i o n a l c o m p l e x i t y is an e n d u r i n g obstacle to i m p l e m e n t a t i o n o f l o n g - t e r m policies;  •  c o o r d i n a t i o n within a n d between p u b l i c agencies is v e r y d i f f i c u l t ;  •  i n s t i t u t i o n a l support a n d capacity at the m u n i c i p a l l e v e l is u n e v e n ;  •  attainable l o c a l goals are d i f f i c u l t to address;  •  there has been l i m i t e d i n v o l v e m e n t o f l o c a l p o p u l a t i o n ;  •  there is no a c k n o w l e d g m e n t o f c l a i m s to tenure security b y the resident p o p u l a t i o n ;  •  the P r o g r a m has h a d no i m p a c t o n n a t i o n a l h o u s i n g p o l i c i e s ;  •  the p r e - e x i s t i n g W a t e r s h e d P r o t e c t i o n L a w has presented a strong i n s t i t u t i o n a l barrier;  •  d e v e l o p m e n t o f a n d response to e n v i r o n m e n t a l e d u c a t i o n p r o g r a m s has been l i m i t e d ;  •  there appears to be little p u b l i c k n o w l e d g e o f the P r o g r a m a n d p o o r p u b l i c awareness follow-up;  •  no clear security procedures have been put i n place to guarantee f o l l o w - u p a n d m a i n t e n a n c e .  183  of  T H E FINDINGS T h e first significant p o s i t i v e i m p a c t o f the P r o g r a m has u n d o u b t e d l y been the r e v i s i o n o f W a t e r s h e d P r o t e c t i o n L e g i s l a t i o n . I n spite o f b e i n g i n operation f o r a l o n g t i m e , the P r o g r a m 20  created sufficient p o l i t i c a l m o m e n t u m to p u s h for the m o d i f i c a t i o n o f l a w s . T h e n e w p r o p o s a l f o r watershed p r o t e c t i o n presented b y the E n v i r o n m e n t Secretariat is s u r p r i s i n g l y g o o d . It i s not o n l y a r e v i s i o n o f o l d l e g i s l a t i o n , but offers a p r o m i s i n g n e w approach for the p r o t e c t i o n a n d r e c o v e r y o f Sao P a u l o State watersheds.  S o m e o f p o s i t i v e aspects o f the p r o p o s a l f o r the l e g i s l a t i o n are decentralized m a n a g e m e n t b y basins o r sub-basins, r e c o g n i t i o n o f the d i v e r s i t y a n d the need f o r special actions i n the areas to be protected o r recovered, a n d c o m m u n i t y p a r t i c i p a t i o n i n management a n d p r e s e r v a t i o n o f water resources.  T h e n e w tools i n t r o d u c e d i n the p r o p o s a l e x p a n d the p o s s i b i l i t i e s o f a c t i o n b y p u b l i c p o w e r s a n d society.  T h e y p e r m i t a departure f r o m p a r a l y z i n g d i s c u s s i o n , i n w h i c h arguments  built o n  restrictive, n o r m a t i v e a n d generic concepts have p r e d o m i n a t e d , o n l y a d v o c a t i n g o c c u p a t i o n taxes a n d i n d i c e s , densities, a n d l a n d use coefficients. T h e discourse has u s u a l l y addressed generalities a r o u n d i d e a l i z e d a n d l i m i t e d m o d e l s that treat structurally diverse situations i n a h o m o g e n e o u s w a y . T h e L a w ' s 20-year existence has demonstrated that neither w e r e watersheds protected n o r  The long and extensive discussion of this legislation and its consequences is presented in Chapters 4 and 5, Annex A. 2 0  184  d i d u r b a n o c c u p a t i o n h a p p e n w i t h i n the prescriptions o f the l e g i s l a t i o n i f a c o n f l i c t o f interests existed.  In fact, the n e w l a w changed the object to be protected. T h e focus is n o l o n g e r to establish l e g i s l a t i o n to protect a u n i q u e space, but has shifted to management o f s p e c i f i c fragments o f this space, the water basins or sub-basins, throughout the state. T h e i d e a o f d i v e r s i t y as a structural c o m p o n e n t o f p u b l i c i n t e r v e n t i o n i n the p r o t e c t i o n o f water resources is e x t r e m e l y p o s i t i v e . It w i l l be addressed b y f o r m u l a t i n g e n v i r o n m e n t a l p r o t e c t i o n strategies s p e c i f i c to e a c h watershed area, e s t a b l i s h i n g a n d d e f i n i n g watershed sub-basins w i t h r e g i o n a l interest.  T h e areas under u r b a n o c c u p a t i o n pressure i n the southern part o f S P M cannot be treated i n the same w a y as others, where the attraction poles a n d s o c i a l determinants o f h o u s i n g d e m a n d do not exist. W i t h o u t a d m i t t i n g the d i v e r s i t y o f e x i s t i n g situations i n the 4,356 k m e x i s t i n g l e g i s l a t i o n ( f r o m the 8,051 k m t o w a r d p r e s e r v i n g the watersheds.  2  2  protected b y the  o f the S P M A ) it w i l l be i m p o s s i b l e m a k e  A n d , without institutional acknowledgement  of  progress effective  o c c u p a t i o n i n some areas - m o r e than 6 0 0 , 0 0 0 people o n l y w i t h i n the G u a r a p i r a n g a alone- it w i l l be i m p o s s i b l e to formulate p o l i c i e s a n d effective practices to recover areas already degraded or i n the process o f degradation.  H o w e v e r , it is necessary to consider that cities do not d e v e l o p or l i m i t themselves to o c c u p y i n g one or other waterbasin. C i t i e s are c u l t u r a l and s o c i a l spaces that are independent o f these l i m i t s . Therefore, i n t e r - m u n i c i p a l questions are fundamental a n d relevant, e s p e c i a l l y c o n c e r n i n g p u b l i c m a n a g e m e n t o f the spaces outside the l i m i t o f the basins. I n m e t r o p o l i t a n regions the c o n t i n u i t y  185  o f the b u i l t e n v i r o n m e n t cannot exist w i t h o u t a p o l i t i c a l entity that articulates a n d h a r m o n i z e s the different m u n i c i p a l interests.  I n S P M A , it is clear that the m e t r o p o l i t a n d i m e n s i o n m u s t be i n c o r p o r a t e d into w a t e r b a s i n management.  T h e p r o p o s i t i o n o f r e g i o n a l c o u n c i l s s h o u l d be the first step t o w a r d s a m o r e  concrete d i s c u s s i o n o f m e t r o p o l i t a n levels o f governance necessary for a c o m p l e t e a p p r o a c h to S P M A sustainability.  T h e root causes o f water q u a l i t y degradation m u s t be e x a m i n e d . Predatory u r b a n o c c u p a t i o n is, w i t h o u t q u e s t i o n , a factor, but it is a s u r v i v a l response b y p o o r people to the p u b l i c neglect a n d an absence o f h o u s i n g alternatives. O t h e r causes o f e n v i r o n m e n t a l degradation, s u c h as i n d u s t r i a l a c t i v i t y , m u s t be addressed w i t h p u b l i c p o l i c i e s , to c o n t r o l the release o f l i q u i d waste. T h e fact that rules exist does not m e a n they w i l l be i m p l e m e n t e d . E n f o r c e m e n t efforts are necessary, but not easy to put into practice due to the e x i s t i n g legal a n d j u r i d i c a l " m a z e ' , a n d to the t r a d i t i o n o f c o r r u p t i o n i n the p o l i c i n g structure.  I n e v a l u a t i n g the performance o f government projects, the concept o f governance is a k e y part o f the a n a l y t i c a l f r a m e w o r k . It is a h i d d e n influence o n a project's concept and i m p l e m e n t a t i o n , as w e l l as its i n n e r capacity to adapt to unforeseen circumstances. T h e governance  concept is,  t h o u g h , v e r y e l u s i v e . G o v e r n a n c e c a n be defined as "the m a n n e r i n w h i c h p o w e r is e x e r c i s e d i n the m a n a g e m e n t o f a c o u n t r y ' s e c o n o m i c a n d s o c i a l resources for d e v e l o p m e n t " ( W B Therefore,  it is i n t r i n s i c a l l y  connected  to the  i m p l e m e n t e d or m a n a g e d .  186  way  any  specific  development  1992).  project  is  In the B r a z i l i a n context, the governance concept has not c o m m o n l y b e e n used. H i s t o r i c a l l y restricted b y an absence o f d e m o c r a t i c relationship between c i v i l society a n d g o v e r n m e n t , B r a z i l i a n structures have not yet i n t e r n a l i z e d a concept o f governance, w h e r e the state is i m p o r t a n t as m e d i a t o r between the needs o f several sectors o f society. A c c o r d i n g to F e d o z z i , the d e f i n i t i o n o f governance that m o s t accurately applies to the B r a z i l i a n context is a " g o v e r n i n g process that e m b o d i e s p o p u l a r p a r t i c i p a t i o n i n the p u b l i c sphere based o n c i t i z e n s h i p r i g h t s " (Fedozzi,  1994).  It s h o u l d also represent a m o d e r n a n d d e m o c r a t i c r e l a t i o n s h i p b e t w e e n  g o v e r n m e n t a n d c i v i l society, and have bureaucratic-administrative e f f i c i e n c y able to p o s i t i v e l y l i n k the p o l i t i c a l to the t e c h n i c a l aspects o f the issues to be dealt w i t h . Therefore, questions about the advance o f d e m o c r a c y , decentralization, the c o r r o b o r a t i o n o f better g o v e r n a b i l i t y a n d the p r o m o t i o n o f d e v e l o p m e n t have been c o n v e r g i n g towards the l o c a l space or l o c a l p o w e r , r e a f f i r m i n g the p o l i t i c a l i m p o r t a n c e o f m u n i c i p a l units i n the e c o n o m i c a n d s o c i a l spheres. M a n y changes since the 1980s have affected the i m p o r t a n c e o f the B r a z i l i a n m u n i c i p a l i t y : i n s t i t u t i o n a l changes, re-articulations w i t h i n c i v i l society, d e c e n t r a l i z a t i o n tendencies a n d the e c o n o m i c crisis. These changes have brought into focus themes such as federation, d e m o c r a c y , d e c e n t r a l i z a t i o n a n d the r o l e o f the state. There have been m a n y challenges to m u n i c i p a l m a n a g e m e n t , as w e l l as several interesting p o s s i b i l i t i e s . A l l o f these p o s s i b i l i t i e s , t h o u g h , p o i n t to the m u n i c i p a l unit as the l o c u s o f a r t i c u l a t i o n o f c i v i l society a n d i n t e r m e d i a t i o n w i t h other levels o f g o v e r n m e n t . T h e discussions  about  these  issues  are  intertwined with  m a n a g e m e n t o f other natural resources are conducted.  187  the  way  watershed  protection and  H o w e v e r , these observations do not seem to have been addressed w i t h i n the P r o g r a m ' s design, a p p r o a c h or i m p l e m e n t a t i o n . It is clear that the magnitude a n d scope o f s u c h project w o u l d create a need for t o o l s to reach b e y o n d the m u n i c i p a l frontiers. T h e P r o g r a m has, s o m e t i m e s , been a source o f c o n f l i c t between m u n i c i p a l i t i e s and executive agencies, m a k i n g i m p l e m e n t a t i o n s l o w e r and m o r e d i f f i c u l t . P a r t i c u l a r l y , the issue o f maintenance o f c o m p l e t e d w o r k s (parks, u p g r a d i n g s , etc.) is t i g h t l y b o u n d to l o c a l structures, w h i c h i n present circumstances are f i n a n c i a l l y and t e c h n i c a l l y unprepared for s u c h tasks. S o m e c o m m o n g r o u n d has been reached i n addressing several p r o b l e m s that have arisen f r o m the t o p - d o w n a p p r o a c h assumed b y the  Program's  i m p l e m e n t a t i o n . B u t the resentments and m i s s e d opportunities for a m e a n i n g f u l interaction between  metropolitan municipalities w i l l  be a constant  remainder o f the  separateness  of  m e t r o p o l i t a n spaces a n d o f their unique characteristics.  T h e P r o g r a m ' s experience i n v o l v i n g several levels o f state a n d m u n i c i p a l g o v e r n m e n t has s h o w n m a n y d i f f i c u l t i e s i n c o l l a b o r a t i o n , even w h e n resources are available. H o w e v e r , it is generally accepted that o n l y b y c o n t i n u o u s l y w o r k i n g together w i l l it be p o s s i b l e to d e v e l o p m o r e r a t i o n a l and effective watershed management i n the l o n g r u n . B u t the P r o g r a m m i s s e d an o p p o r t u n i t y to foster a better i n s t i t u t i o n a l integration; this, at least i n terms o f d e s i g n , was one o f its goals (see F i g u r e s 7.1 a n d 7.2).  P u b l i c bureaucracy delays have been a constant constraint i n P r o g r a m d e v e l o p m e n t . International funds, a p p r o v e d at the federal a n d state levels, are subject to the same restrictive regulations as is p u b l i c expenditure i n general, because they are disbursed t h r o u g h the P u b l i c Treasury. Therefore,  188  the a d m i n i s t r a t i v e p l a n n i n g a n d a g i l i t y needed i n this k i n d o f p r o g r a m are absent, a n d efficient i m p l e m e n t a t i o n o f the v a r i o u s projects is thereby i m p a i r e d .  A l m o s t a l l i n s t i t u t i o n a l levels l a c k effective m e c h a n i s m s to f o l l o w - u p projects o v e r the m e d i u m and l o n g t e r m . T h i s presents a serious obstacle to a c h i e v i n g l a s t i n g results. E v e n i f the future W a t e r s h e d M a n a g e m e n t P l a n w e r e to have d i s p o s i t i o n s for m e c h a n i s m s for f o l l o w - u p it w o u l d be too late to save w o r k d e v e l o p e d a n d i m p l e m e n t e d i n some s p e c i f i c areas affected b y the P r o g r a m . T h e r e has been a noticeable increase i n o c c u p a t i o n w i t h i n projects already f i n i s h e d , w i t h n e w residents e x t e n d i n g e x i s t i n g houses or u s i n g s m a l l pieces o f i d l e l a n d near the settlements. N o updated i n f o r m a t i o n or f o l l o w - u p o f these events is i n place.  I n a d d i t i o n to the issue o f c o n t r o l , there is an u n r e s o l v e d p r o b l e m o f tenure security. O n e o f the m a i n l i m i t s to the potential benefits o f the P r o g r a m is the failure to resolve uncertainties o f tenure for the resident c o m m u n i t y . T h i s l a c k o f c o n c e r n towards tenure security w a s c o m m o n i n t r a d i t i o n a l W B projects. H o w e v e r , it is s u r p r i s i n g that a project representative o f the W B ' s n e w era a n d f o l l o w i n g a m o r e c o m p r e h e n s i v e v i e w o f sustainable d e v e l o p m e n t does not c o n s i d e r tenure security for the residents as a p r i o r i t y action.  T h e P r o g r a m w i l l not s o l v e the l a n d property p r o b l e m i n B r a z i l ; this is an e n d u r i n g c h a l l e n g e for the w h o l e p o l i t i c a l system. H o w e v e r , clear a c k n o w l e d g m e n t o f this issue w i t h i n the P r o g r a m context w o u l d be a major achievement for m i l l i o n s o f u r b a n d w e l l e r s w h o are at present defenseless against a c r u e l a n d outdated tenure l a w . C o n s i d e r i n g also that the p o o r are the e x c l u d e d i n T h i r d W o r l d cities, any a c t i o n that c o u l d contribute to a change i n their status w o u l d  189  be one o f the m o s t sustainable measures o f any d e v e l o p m e n t p r o g r a m . B u t b y relegating the s o l u t i o n to a nonexistent p o l i t i c a l j u r i s d i c t i o n that has been so far t o t a l l y i n s e n s i b l e to the p l i g h t o f the squatter a n d s l u m d w e l l e r s , the G u a r a p i r a n g a P r o g r a m has o n l y r e i n f o r c e d the o f f i c i a l g o v e r n m e n t pattern o f i g n o r i n g the p r o b l e m .  21  E v e n i f granting tenure rights w o u l d not b y i t s e l f resolve the precariousness  o f the i l l e g a l  settlements, the p e r c e p t i o n is that i f the residents feel secure i n h a v i n g a t a n g i b l e fact  (the  o w n e r s h i p ) to l o o k for, they w o u l d be m o r e ready to participate i n c o m m u n i t y o r g a n i z a t i o n for the maintenance o f l o n g - t e r m achievements o f the P r o g r a m .  A l s o , it is c r i t i c a l to p o i n t out that changes to l e g i s l a t i o n g o v e r n i n g h o u s i n g market, as w e l l as i n r e g u l a t i o n o f h o u s i n g standards, need to be i m p l e m e n t e d i n order to establish g u i d e l i n e s for efficient a n d adequate urban o c c u p a t i o n . It is t i m e to a c k n o w l e d g e what has been h a p p e n i n g i n the p e r i p h e r y o f the S P M A , not o n l y i n the watershed areas. R e g u l a t o r y changes c o u l d e v e n t u a l l y create a m i t i g a t i o n for h o u s i n g pressure w i t h i n the protected areas, o p e n i n g u r b a n spaces t h r o u g h b o n u s density a n d other p l a n n i n g devices.  W a t e r resources  management  converges directly to p r o t e c t i o n o f watersheds,  a n d also  to  thousands o f clandestine households w i t h i n these areas. T h e P r o g r a m has brought to the surface and h i g h l i g h t e d the debate about what to do w i t h this huge n u m b e r o f h o m e s  and illegal  a l l o t m e n t s , a n d the preeminent need to preserve the water sources. E x i s t i n g l e g i s l a t i o n w a s  21  This subject, its national roots and implications was discussed in previous chapters. 190  d e s i g n e d to meet this water p r o t e c t i o n need, but has i n d i r e c t l y p r o v o k e d an e x p l o s i o n o f i l l e g a l l a n d o c c u p a t i o n b y sharply l o w e r i n g l a n d values.  H o w e v e r , l o c a l grassroots leaders have been i n s i s t i n g that it is p o s s i b l e to r e c o n c i l e p r e s e r v a t i o n w i t h o c c u p a t i o n . A c c o r d i n g to one coordinator o f s o c i a l m o v e m e n t s , a n average o f 100 houses per day is b u i l t w i t h i n the watershed p r o t e c t i o n area. H e does not believe estimates o f 6 0 0 , 0 0 0 residents. H e says the real n u m b e r surpasses  o f f i c i a l census  1 m i l l i o n , as the e c o n o m i c  crisis a n d u n e m p l o y m e n t persist a n d m a k e people poorer. H i s e x p l a n a t i o n : as the v a l u e o f the l a n d is v e r y l o w , l e g a l owners hope to be " i n v a d e d " because they c a n then d i v i d e the l a n d into v e r y s m a l l lots a n d s e l l t h e m . B e c a u s e lots are i l l e g a l l y s u b d i v i d e d , prices are l o w , a n d they w i l l be s o l d to f a m i l i e s that c a n not afford a n y t h i n g else, a n d the houses they w i l l b u i l d w i l l be precarious, a n d the settlement w i l l have n o infrastructure. It is a situation that w i l l persist because he cannot foresee any e c o n o m i c a l l y a n d s o c i a l l y p o s i t i v e changes.  Interestingly, about the p o l e m i c question o f preservation and o c c u p a t i o n , this leader is v e r y e m p h a t i c i n d e f e n d i n g the p o s s i b i l i t y o f c o n c o r d between o c c u p a n c y o f the watershed areas a n d water sources preservation. B u t a c c o r d i n g to h i m , it is necessary to change the e x i s t i n g l a w a n d enforce a r e a l i s t i c z o n i n g code, a n d e n v i r o n m e n t a l education o f the p o p u l a t i o n starting i n the elementary schools. A l a n d o c c u p a t i o n p l a n is also needed to f u l f i l l p r e s e r v a t i o n requirements, and p e r m i t h o u s i n g d e n s i f i c a t i o n (through v e r t i c a l solutions) to meet e x i s t i n g d e m a n d . emphasizes the need for a c o m p r o m i s e between c i v i l society and p u b l i c p o w e r .  191  He  T h i s c o o r d i n a t o r notes that the industries that have been p o l l u t i n g the reservoir are s t i l l there. A l s o , w h e n the sewage e l e v a t i o n station is i n trouble, S A B E S P discharges  sewage into the  reservoir. A S A B E S P director t o l d h i m that it is better to release sewage into G u a r a p i r a n g a t h a n to have it b a c k u p into the houses. S u r e l y , the coordinator argues, a n alternative s o l u t i o n c a n be f o u n d . F i n a l l y , he argues that residents were forced b y the g o v e r n m e n t p o l i c i e s to reside i n the watershed p r o t e c t i o n area, a n d they have little c h o i c e but to use natural resources  intensively,  w h i c h i n t u r n causes p o l l u t i o n .  A n o t h e r c o m m u n i t y leader ascribes some r e s p o n s i b i l i t y f o r the s i t u a t i o n to B r a z i l ' s l a c k o f r u r a l l a n d r e f o r m . T h e p o o r are e x p e l l e d f r o m rural areas a n d see the c i t y as their o n l y alternative. These f a m i l i e s c o m e l o o k i n g for the cheapest bargain, the poorest l o t i n the poorest r e g i o n o f Sao P a u l o , because they c a n not afford a n y t h i n g else. W h o e v e r o w n s the latifundio , 22  whoever  dominates the real estate capital i n the c i t y , has c o n t r o l o f l a n d i n society. W o r k e r s are left out and b e c o m e a n easy target f o r unscrupulous real estate developers, w h o offer lots at l o w prices. P e o p l e b u y because they need a piece o f l a n d to b u i l d a house a n d r i d themselves f r o m rent expenses. T h e y cannot afford to care about papers o r i l l e g a l transactions. It is o n l y t o o easy to b l a m e the settlers for the actual situation, he says, w i t h o u t l o o k i n g into the roots o f the p r o b l e m .  A f t e r so m a n y years o f i g n o r i n g what w a s h a p p e n i n g i n the watershed areas, as w e l l as the G u a r a p i r a n g a P r o g r a m , since the first semester  o f 1998, the m e d i a has been p u b l i c i z i n g  i n f o r m a t i o n about the P r o g r a m a n d v i e w s o f officials l i n k e d to it. It i s perhaps d u e to the  192  i m m i n e n t elections at the state l e v e l . S o m e o f the i n f o r m a t i o n shows the p o s i t i v e a c h i e v e m e n t s , but others c l e a r l y p o i n t to some failures. A l s o , it is interesting to l i s t e n to o f f i c i a l s w h o have been t r y i n g to e x p l a i n the situation i n the reservoir areas a n d their efforts  to deal w i t h i l l e g a l  settlements.  Just one o f the p l a n n e d eight sewage collectors is ready. W a s t e f r o m a p p r o x i m a t e l y 6 2 0 , 0 0 0 p e o p l e that are " i l l e g a l l y " l i v i n g i n the b a s i n , are s t i l l b e i n g released into the reservoir, w i t h o u t any treatment. T h i s has been f o r c i n g S A B E S P to use four times the quantity o f c h e m i c a l s to treat the water, as is u s e d i n the C a n t a r e i r a S y s t e m i n the N o r t h o f the c i t y .  In the s u r r o u n d i n g s o f the G u a r a p i r a n g a R e s e r v o i r , the P r o g r a m has u p g r a d e d s o m e  slums,  c h a n n e l e d streams a n d b u i l t a sewage n e t w o r k i n order to i m p r o v e the water q u a l i t y . I n A p r i l 1998, about forty percent o f the area is served b y sewers. T h e P r o g r a m ' s goal is to r e a c h eighty percent b y its e n d , but at one year f r o m the end-date, it is not e v e n close. U n t i l the m a i n n e t w o r k c o l l e c t o r is ready - i n the b e g i n n i n g o f 1999 - the system w i l l not b r i n g i n g any benefits for the m a j o r i t y o f d w e l l e r s ( F o l h a de Sao P a u l o , A p r i l 1998).  R e p o r t s f r o m Instituto S o c i o A m b i e n t a l , d e v e l o p e d w i t h the N u c l e o P r o - G u a r a p i r a n g a , have been released i n 1997. O n e o f these reports shows that between 1989 a n d 1996, the southern part o f the b a s i n suffered the greatest e n v i r o n m e n t a l i m p a c t (see C h a p t e r 6). Satellite photos  show  several n e w n u c l e i o f deforestation a n d i n v a s i o n s that w i l l not benefit f r o m the G u a r a p i r a n g a  "Latifundios" are the large estates (farms and plantation) owned by few people throughout Brazil. They rely on transient labor (migrants). 22  193  infrastructure p r o g r a m . D e f i c i e n t p o l i c i n g has resulted i n a n increased n u m b e r o f i n v a s i o n s w i t h i n the G u a r a p i r a n g a area. I n the southern part o f the b a s i n where there are dozens o f springs and streams that feed the reservoir, deforestation a n d waste d i s c a r d e d into t h e m b y the invaders i s affecting the water q u a l i t y . D a t a f r o m the government c o n f i r m that p o p u l a t i o n g r o w t h i n these areas w a s four t i m e s the p o p u l a t i o n g r o w t h i n S P C between 1980 a n d 1991, a n d eight times the g r o w t h b e t w e e n 1991 a n d 1996. T h e secretary o f I S A , Joao P a u l o C a p o b i a n c o says:  "The government was naive and unable to see the complexity of the Guarapiranga area. It is necessary to re-direct resources towards the areas that area being presently degraded. There is still time to act beforehand" (Folha de Sao Paulo, April 1998). T h e State says that, at the end o f the R e c o v e r y P r o g r a m , the water q u a l i t y w i l l b e the same as that registered i n the b e g i n n i n g o f the 1980s. T h e Secretary f o r W a t e r R e s o u r c e s a n d S a n i t a t i o n , H u g o R o s a , the highest state o f f i c i a l responsible for the P r o g r a m , says:  " We are gaining an added-life of 20 years for the reservoir. But the future of Guarapiranga will depend upon the future management". (Folha de Sao Paulo, April1998) T h e same secretary has contested I S A ' s report d e f i n i n g p r i o r i t y areas for the w o r k s , a n d says that the major p o p u l a t i o n pressure i s s t i l l i n the Santo A m a r o r e g i o n , at the m a r g i n s o f the reservoir:  "We have prioritized the works in the areas most in need. But we are going to implement projects and propose legislation to induce the occupation compatible with the watershed protection area" (Folha de Sao Paulo, April 1998). A g a i n , discrepancies i n understanding o f p r i o r i t i e s are clear a n d s h o w the P r o g r a m ' s f a i l u r e to acknowledge  needs a n d to have a v i