UBC Theses and Dissertations

UBC Theses Logo

UBC Theses and Dissertations

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

Your browser doesn't seem to have a PDF viewer, please download the PDF to view this item.

Item Metadata

Download

Media
831-ubc_1999-0014.pdf [ 23.02MB ]
Metadata
JSON: 831-1.0088887.json
JSON-LD: 831-1.0088887-ld.json
RDF/XML (Pretty): 831-1.0088887-rdf.xml
RDF/JSON: 831-1.0088887-rdf.json
Turtle: 831-1.0088887-turtle.txt
N-Triples: 831-1.0088887-rdf-ntriples.txt
Original Record: 831-1.0088887-source.json
Full Text
831-1.0088887-fulltext.txt
Citation
831-1.0088887.ris

Full Text

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 E R I K A M A R I A T E R E S A G I O N G O D E C A M A R G O E C A S T R O B . A r c h . Mackenzie Upiversity, 1972 A T H E S I S 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 O F T H E R E Q U I R E M E N T S F O R T H E D E G R E E O F M A S T E R O F S C I E N C E ' in T H E F A C U L T Y O F G R A D U A T E S T U D I E S School of Community and Regional Planning We accept this thesis as conforming to th^^C^pAj,^^^/^^ ^ T H E U N I V E R S I T Y O F B R I T I S H C O L U M B I A December 1998 (?) ;Er ika M . T . G . C . D e Castro, 1998 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. 1 further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department of ^ 4 ^ 6 ^ G r r r ^ u ^ ^ G{A/Ji 1 2 < 2 ^ Q ^ 6 - ^ n ^ r ^ The University of British Columbia Vancouver, Canada Date DE-6 (2/88) ABSTRACT This research examines the politics that shape the urban environment in Sao Paulo Metropolitan Area. In particular, it inquires into the potential of international agencies as significant players in major infrastructure projects. It discusses a World Bank project for environment recovery of the Guarapiranga Reservoir, the second largest water supplier of the metropolitan area. This study demonstrates that social inequalities ingrained within developing societies are incorporated into urban politics, creating the physical dimension of 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 of living in the midst of pollution and in 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 low value of 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 of the physical exclusion of the urban poor. However, in spite of improvements in living conditions of some settlements around the reservoir, the World Bank Program has largely failed. The Program did not shift region's planning focus from technical i i goals to a broader and hol i s t i c approach that c o u l d address soc ia l inequalit ies as w e l l as the environment degradation associated w i t h poor neighborhoods i n sensitive areas. iii TABLE OF CONTENTS A B S T R A C T II T A B L E O F C O N T E N T S I V L I S T O F T A B L E S V I I L I S T O F F I G U R E S VIII A C R O N Y M S I X A C K N O W L E D G E M E N T S X I I 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 Brazi l : 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 of 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 Land and Housing for the Poor 128 The Watershed Protection L a w and its Effect upon Urban Expansion 138 Control of Land Use 141 The Watersheds as a Collective Consumer Good 142 The Effect of the Discourse and Mechanisms upon the Urbanized Area 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 of the M R S P Watersheds 154 The Revision of 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 of the Guarapiranga Program 177 Analyz ing 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 B I B L I O G R A P H Y 220 A P P E N D I X A - S P M A W A T E R S H E D L E G I S L A T I O N 232 The Laws 898/75 and 1172/76 232 The Decrees 234 Modif icat ion of 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 M i n i n g 259 Lymnological Diagnosis 259 Pollution Control 259 Environmental and Sanitation Education 260 Patrolling and Monitor ing 260 A P P E N D I X D - I N T E R V I E W S 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 America — 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 America — Loans between 1967-85 per Investing Sector (mil l ion US$) 39 Table 2.3 — I D B — Latin America — Annual Resources destined to Social Sector in relation to Financed Resources (in mil l ion U S $ ) 40 Table 2.4 — W B ( I B R D A I D ) — Latin America — Annual Resources destined to Social Areas in relation to total financing (in mil l ion US$) 42 Table 2.5 —• W B — I B R D , Brazi l Resources destined to Social Sector in relation to total financing (in mi l l ion U S $ ) 43 Table 2.6 — I D B , B r a z i l — Loans (in mil l ion US$) 44 Table 2.7 — W B and I D B — Brasi l — Resources in Social Area 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 Basin 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 v i i LIST OF FIGURES Figure 3.1 — Metropolitan region of Sao Paulo: administrative divisions 69 Figure 3.2 — Braz 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 of 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 of 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 v i i i ACRONYMS A B C - Santo A n d r e , Sao Bernardo e Sao Caetano do S u l B A - Estado d a 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 Habitacao 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 Estadual 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 - Centro 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 - Regioes M e t r o p o l i t a n a s e P o l i t i c a s U r b a n a s C O D E G R A N - C o n s e l h o Del iberat ivo da Grande Sao P a u l o C O H A B - C o m p a n h i a Estadual de Habitacao C O N G A S - C o m p a n h i a Estadual de Fornecimento de Gas 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 da Grande 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 Estadual de A g u a s e Esgotos D E R - Departamento Estadual 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 Ferroviar ios de Sao P a u l o F I N E P - F u n d o de Incentivo a Pesquisa ix G E G R A N - G r u p o E x e c u t i v o de Planejamento do Grande Sao P a u l o G N P - G r o s s N a t i o n a l Product I B R D - International B a n k for Reconstruct ion 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 A g e n c y I D B - I n t e r - A m e r c i a n D e v e l o p m e n t B a n k I M F - International M o n e t a r y F u n d M G - Estado de M i n a s Gerais 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 Paulo 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 Nordeste do B r a s i l N G O s - N o n Governamenta l Organizat ions 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 - Estado do Parana 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 da Grande Sao P a u l o S C - Estado de Santa Catar ina S E M P L A - Secretaria de Planejamento U r b a n o S E R F A U - Serv ico Federal de Habitacao 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 Habitacao 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 Metropol i tanos S O M A - Secretaria de Obras 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 of Sao Paulo W B - World Bank W W II - World 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 most o f m y years. T h i s study owes its strength to m y constant struggle i n t ry ing to understand a c o m p l e x real ity, r i d d l e d w i t h a weal th o f resources and a scarcity o f soc ia l just ice . 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 Guarapiranga P r o g r a m w h o helped m e c o m p i l e i n f o r m a t i o n and understand the dif f icult ies 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 thankful especial ly to E r m i n i a M a r i c a t o , w h o is a f r iend and a great insp ira t ion through her extraordinary w o r k for the poor i n Sao P a u l o . M a n y thanks to m y supervisory committee, especial ly to Y o u - t i e n H s i n g , w h o has been a supportive and he lpfu l fr iend throughout, and M i c h a e l L e a f for advice and 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, and A p r o d i c i o L a q u i a n for his 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 help 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 was p r o v i d e d by 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 A g e n c y ( C I D A ) . Last , but not least, I a m very thankful to m y dearest Fernando, L e o n a r d o and O l a v o , whose support and 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 of life in cities of developing countries such as Brazi l is deteriorating. Although cities play a key role in 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 of people and industries are generating ever greater amounts of liquid and solid waste, that outstrips the capacity of cities to efficiently collect and dispose of them. They exceed the capacity of regulatory authorities to control them and of 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. Also , environmental degradation is threatening the availability and quality of natural resources, particularly water resources, as a result of uncontrolled development in watershed areas. Those most affected by deterioration of the physical environment are the urban poor. Conversely, poverty is a major factor in urban environmental degradation. It is the poor who occupy the ecologically fragile lands in exclusionary land and housing markets (Bartone, 1991). The existence of pockets of First World class neighborhoods in most larger cities is only a clear symptom of the prevalent urban inequalities. Nevertheless, these inequalities are not strictly 1 'urban', but a reflection of economic and social inequalities ingrained within developing societies, and ultimately, a projection of the policies in place. The purpose of this thesis is to demonstrate how these inequalities are embedded in urban politics, creating the physical dimension of social exclusion so prevalent in developing cities, and focusing particularly on the policies of water in Sao Paulo Metropolitan Area. Thus, efforts by governments and the international financing establishment towards amelioration of the urban environment have limited success, because they do not address underlying inequalities, which are the locus of urban environmental problems. Many planning strategies are based on the assumption that urban environmental problems are a consequence of urbaneness, and even more so, of 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 of economic globalization. Rules respond to the new economic order. A s urban problems grow, international financing is necessary to meet the huge costs of face-lifts in urban systems in order not to hinder city functions. Ultimately, urban policies are instruments in the implementation of an economic order defined by the concept of 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 of 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 (l iteracy, customs, etc.), e c o n o m i c ( 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 izenship rights), and environmental (no access to urban infrastructure services) aspects w h i c h together c o m p o u n d an exc lus ionary society ( M a r i c a t o , 1997). O n e o f the brutal faces o f the e x c l u s i o n that direct ly affects the urban scenario is the general ized i l l e g a l i t y i n hous ing arrangements - favelas, corticos, subdiv is ions . T h e j u d i c i a l system actions and/or absence o f t h e m do not resolve confl icts or restrain procedures, w h i c h endanger the l i v i n g condit ions o f the destitute. T h e state is not s i m p l y absent, but intent ional ly it is present i n a very ambiguous arbritary way: repressor, paternalist, c l ientel ist or opportunist. It is hoped that this study w i l l i n f o r m the d iscuss ion about the p o l i t i c s that shape the urban environment. Its contr ibut ion is to explore the potential o f international agencies as s ignif icant players i n major urban infrastructure projects associated w i t h environment improvement . It addresses this question: to what extent are urban Sao P a u l o ' s environmental p o l i c i e s affected b y the international f inanc ing agenda? T o answer this question, this study examines a project f inanced by 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 irst ly i f the W B is n a effective change agent i n Sao P a u l o ; and secondly, i n h o w it exerts influence or is co-opted into ex is t ing urban 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 major international agency, the W B , has altered the d e c i s i o n - m a k i n g processes, w h i c h i n f o r m urban p o l i c i e s related to environmenta l degradation. 3 T H E C A S E S T U D Y 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 • In the context o f the factional p o l i t i c a l environment o f Sao P a u l o , does the W B P r o g r a m pr iv i lege one fact ion over another? • A r e the resources brought by the W B enough o f an incentive for establ ishing consensus? • H a s the P r o g r a m direct ly impacted u p o n the urban poor 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 had impact u p o n p u b l i c po l ic ies i n Greater Sao P a u l o ? URBAN POLITICS T h e complex i t ies o f r a p i d urbanizat ion, industr ia l izat ion, poverty and environmenta l degradation require extremely di f f icul t p o l i t i c a l trade-offs to obtain a balanced approach to urban development. Identi f icat ion o f the mechanisms by w h i c h trade-offs are made is n a objective o f this study. Trade-offs are made at several levels. F o r example: loca l authorities m a y be reluctant to enforce p o l l u t i o n contro l , initiate polluter-pays pol ic ies , or require industr ia l safety programs, for fear o f d r i v i n g industry and j o b s elsewhere. A t the nat ional leve l , the government m a y hesitate to establish environmenta l protect ion regulations, w h i c h c o u l d make the country less compet i t ive for international investment. A l s o , i n most cases, absence o f c o m m u n i t y awareness and sustained pressure makes inact ion 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 development 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 urban management, pol i t ic ians are w e l l aware that environmenta l decis ions produce winners and losers. In proposed effective environmental protect ion measures, 5 the p o w e r f u l special 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 become potential losers. T h e y are used to a regulatory context that protects their interests at any cost. Author i t ies and pol i t ic ians are extremely vulnerable to this pressure. S i m i l a r l y , the urban poor, w h e n p o l i t i c a l l y organized, can 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 increasing demands for hous ing (land), infrastructure and c o m m u n i t y services. In general, l o c a l authorities, w h e n responding to these k i n d o f pressures often prefer q u i c k - f i x projects over the maintenance or sustainabil ity i n v o l v e d i n l o n g term approaches. These pressures haunt any project for urban environmental improvement . Nevertheless , it is not o n l y the p o l i t i c a l sk i l l s o f the loca l authorities that are at stake. T o be sustainable and equitable, an urban environment needs a regulatory context to define its spatial format ion. These laws are (or should be) the fruit o f continuous negotiat ion between a l l actors and agents w h i c h compose the ci ty . 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 dominant 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 pol ic ies and actions to prevent or d i m i n i s h damages to the environment were i n place, 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 must choose between invest ing i n safe waste disposal sites or i n needed education or health services programs. D e c i s i o n - m a k i n g requires a realistic assessment o f urgency, costs and benefits o f environmenta l interventions, as w e l l as damage and p o l i t i c a l costs o f inact ion. Ef fect ive soc ia l part ic ipat ion is the best antidote against any unbalanced dec is ion, but w h e n deal ing w i t h a real i ty bounded by a development concept that i m p l i e s economic growth at any cost, these 6 considerations do not necessari ly arise. Where structural inequal i ty is ingrained i n the history o f unequal relations w i t h i n society, it is very di f f icult to overcome p o l i t i c a l and soc ia l inertia. I n Sao P a u l o , p o l i c i e s governing land use and housing 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 lways been used as tools to assist the capital accumulat ion m o d e l . A l s o rent p o l i c i e s , lack o f incent ive for a larger social housing stock, and environmental p o l i c i e s are reflections o f the same m o d e l . Resources for urban development have been used to create basic urban infrastructure wi thout cons ider ing e c o n o m i c , soc ia 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 o f spatial e x c l u s i o n is perpetuated, w i t h international f inancing direct ly or indirect ly endors ing the p o l i t i c s i n place. A s w i l l be out l ined 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 used to essential ly 'promote ' the development 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 ambiguous approach to watershed protect ion has led to the deterioration o f water qual i ty for the metropol i tan region and o f the quality o f l i fe 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 urban pol i t i cs , governance is a major issue i n the management o f cit ies. 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 ef f ic iency o f urban pol ic ies , and i n particular large infrastructure programs. International agencies have stepped i n to fund such projects because national governments lack the f inanc ia l 7 capacity to absorb the huge costs o f such programs. I n m a n y cases they support g r o w t h o f technica l capacity not avai lable i n the affected country. T h e W o r l d B a n k has supported environmenta l infrastructure programs i n deve loping cities since the 1970s, but has recently p r o m o t e d a series o f broader init iatives to more comprehensive ly address urban environmenta l issues. A c c o r d i n g to Bartone and R o d r i g u e z (1993) issue-specific urban environmental management strategies s h o u l d establish the framework w i t h i n w h i c h coordinated short and m e d i u m t e r m sectoral act ion plans and investments should take place. T h e development o f such 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 and environmenta l damage, analyses o f e c o n o m i c eff iciency and f inancia l and inst i tut ional feasibi l i ty . E v e n behaviora l analysis w o u l d be important to select po l ic ies and 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 inst i tut ional re form i n order to i m p r o v e the management o f resources. T h e Guarapiranga P r o g r a m , a long w i t h some other large pr ior i ty infrastructure projects, emphasizes ways 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 qual i ty and quantity o f water taken care o f represents ' g o o d governance' . B u t h o w have these inst i tut ional reforms been 'packaged ' by international agencies? S ince the 1970s, agendas o f international f inancing institutions have been progress ive ly m o l d e d b y the free market ideology , w i t h excessive emphasis o n e c o n o m i c growth. F r o m this emerged demands f r o m lenders to liberate internal markets and el iminate barriers to the free market. T h i s attitude generated a strong crit ique against o l d forms o f management based o n import-substitution strategies. T h e social democratic ideals were replaced by b e l i e f i n the free market , 8 and the p o s i t i o n that e c o n o m i c direct ion was to be defined through p o l i t i c a l negotiat ion processes was 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 were the cause and response o f most o f the e c o n o m i c problems o f deve loping countries. International institutions, be l iev ing i n the prerogative o f the e c o n o m y , inf luenced recipient governments to d o w n p l a y o f socia l and 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 were implemented , it became clear that without at least some soc ia l and p o l i t i c a l l e g i t i m i z a t i o n , nothing w o u l d w o r k , and no e c o n o m i c p l a n w o u l d solve the increasing decl ine o f the economy. 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 abandon rel iance o n the economy as the only salvat ion, and to return to soc ia l and 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 been poss ible because it addresses the need o f the international agencies to be not i n v o l v e d direct ly i n internal p o l i t i c a l and administrat ive affairs o f the recipient countries. Nevertheless , 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 approval o f f inanc ing programs, and that restructuring is used to eff iciently establish the so-cal led m o d e r n markets. U n d e r the inoffensive label 'governance ' , international institutions are able to deal w i t h sensitive questions b y disguise those i n technical terms. Adherence to free market i d e o l o g y does not waver. T h e same demands are maintained (weakening o f norms, l i b e r a l i z a t i o n o f markets, opening to foreign capital and companies, reduct ion o f salaries, etc.). ' G o o d governance ' and inst i tut ional reforms are over la id o n exist ing neol iberal programs. T h e objective is not to 9 integrate 'governance ' and inst i tutional reforms into a n e w synthesis i n w h i c h an e c o n o m y depends o n p o l i t i c a l and socia l considerations. Because 'governance ' 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 and outside the State, over and under the State, the term has become indispensable i n f r a m i n g creative inst i tut ional responses to transnational processes. W i t h rapid l i b e r a l i z a t i o n o f economies and g loba l c o m m e r c e , w i t h technologica l changes to c o m m u n i c a t i o n s , a g loba l society is be ing born . 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 and put i n place at the l o c a l level? Government actions can be l i m i t e d b y markets funct ioning for great corporations, industr ia l and private e c o n o m i c interests, w h i c h exert an enormous power. I n order to assure that soc ia l needs w i l l be addressed it is necessary to foster n e w combinat ions o f actors f r o m different p o l i t i c a l ideologies , socia l and cultural , w h o w i l l need to w o r k together. There is an increasing need i n Sao P a u l o for administrative and p o l i t i c a l reforms. In the last two decades, e c o n o m i c crises have aggravated poverty condit ions i n m a n y sectors o f society, standards o f l i v i n g have dropped considerably. Thus , the request for 'governance ' i m p l i e s demands for effective p o l i t i c a l part ic ipat ion, reactivation o f l o c a l economies and protect ion o f disadvantaged sectors. T h e incapaci ty o f most major international agencies to deal w i t h the contradict ions i n the concept o f what represents ' g o o d governance' caused them concentrate i n the l i m i t e d objective o f reforms i n the p u b l i c sector. Because o f this, bureaucracies have been undergoing restructuring and de-structuring processes (especially health programs, e c o n o m i c ini t iat ives , and p u b l i c 10 services). A l t h o u g h there have been gains i n some places, restructuring has had negative consequences that have weakened eff iciency and morale . T h e need goes far b e y o n d the inst i tutional reforms that have a c c o m p a n i e d the 'governance ' discourse. T h e e c o n o m i c cris is has brought disruptive soc ia l tendencies: increased urban v io lence , persistent h i g h unemployment , d i m i n i s h i n g school assistance, etc. Therefore, governance, to be effective, must i n v o l v e change i n the dominant approach to soc ia l actions that direct ly or indirect ly , affect the urban environment. Ef f ic ient systems o f authority, equitable regulat ion, 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 potent ia l ly 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 dec is ion m a k i n g processes. Because they are some o f the most p o w e r f u l players i n the game, international institutions and banks must share power to define a soc ia l ly just, technical ly sound and e c o n o m i c a l l y feasible 'governance ' to attend urban management priorit ies . 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 urban environment. F r o m this arises one more question to be answered by this research: was this intent ion present i n the Guarapiranga P r o g r a m ? 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 and protect ion o f b i o l o g i c a l diversi ty , relegating to the shadows the fact that the most dramat ica l ly l i fe-threatening forms o f environment degradation are occurr ing i n cities. 11 Since the 1980s, the urban populat ion i n the deve loping w o r l d has exceeded the urban p o p u l a t i o n o f developed countries and it continues to g r o w ( U N Reports , W o r l d B a n k Reports , 1984-1996). L i m i t a t i o n s i n real i n c o m e have caused urban populat ion growth i n d e v e l o p i n g cit ies to impact ser iously o n infrastructure and urban services p r o v i s i o n . T h e l ives o f the urban poor , w h o represent the fastest g r o w i n g urban populat ion i n the T h i r d W o r l d are the most 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 assuming a part icular ly dramatic d i m e n s i o n . T y p i c a l F i rs t W o r l d urban and industr ia l environmental problems 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 his tor ica l deep-seated conf l icts , they are associated w i t h appal l ing soc ia l poverty. T h e threat to the environment is m a g n i f i e d because, o n a per capita basis, the amount o f energy and materials used i n cit ies, and therefore the amount o f waste and p o l l u t i o n generated, is several t imes greater than it is i n rural areas. I n the urban centers o f the T h i r d W o r l d , air and water contaminat ion, and a c c u m u l a t i o n o f t o x i c material i n soi ls are extremely concentrated. B a s i c urban infrastructure is absent i n most parts o f the cities. I n the urban periphery, household and industr ia 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 industr ia l waste, is discarded o n id le l a n d , t h r o w n into streams and r ivers , or left a long the edges o f roads i n the suburbs. T h e destruction o f green areas and areas designated for watershed protect ion around urban centers is apparently uncontrol lable . I n most d e v e l o p i n g countries, accelerated industr ial growth i n recent decades has accelerated 12 p o l l u t i o n . Increasing foreign debt has c o m b i n e d w i t h structural adjustment p o l i c i e s to systematical ly cut f inancia l resources avai lable 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 urban growth is not accepted as a v iable so lut ion by most countries. T h e international funding agencies and governments have perceived urbanizat ion as an inevi table and general ly pos i t ive accompaniment to e c o n o m i c growth over the past decades. At tempts to curta i l urbanizat ion w o u l d l i k e l y constrain e c o n o m i c development and hinder anti-poverty efforts. There is a relentless tendency to foster the growth o f cities and to concentrate the product ive base i n them. International f inancia l cooperation, i n the first 40 years o f their existence emphasized rural development, t r y i n g to root the populat ion w i t h i n agricultural activit ies and restrain the exaggerated g r o w t h o f cities. S ince then this pos i t ion has changed. T h e c i ty is seen as the locus o f soc ia l and e c o n o m i c progress, where the largest part o f the weal th is generated. T h e emphasis has shifted towards the analyses o f urban systems, and o f h o w to use t h e m to i m p r o v e c i ty l i fe . W A T E R MANAGEMENT Water and sanitation services, i n most cases, have the technological and management capacity to del iver services to what is k n o w n as the formal city. I n other words , the parts o f the c i ty that correspond to urban f o r m a l standards, defined by laws, and w i t h or ig ins i n c lassic urbanism, have more or less g o o d services. B u t the formal c i ty o f the T h i r d W o r l d is fragmented and represents, i n m a n y cases, as l itt le as 40 percent or less o f the city. M u c h larger is the 'c landest ine ' or i n f o r m a l part o f the ci ty . T h e term 'per iphery ' is appropriate i n more than the geographic sense: residents lead a 'per iphera l ' l i fe to the f o r m a l c i ty . E a c h c i ty has its o w n pecul iar i t ies . Sao P a u l o , 13 for example , has most o f its i n f o r m a l c i ty i n the 'per iphery ' , but almost 3 m i l l i o n people l i v e i n squal id hous ing 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 and B o g o t a have "favelas" w i t h i n their central part. H o w can the water and sanitation demands o f these cit ies w i t h i n cities be addressed w i t h qual i ty and i n a sustained f o r m , i n a w a y that guarantees changes, maintenance and adequate f inancing o f these services over the l o n g term? S ince the 1990s, loans f r o m the W o r l d B a n k - approximately 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 used to finance water and sanitation systems. B u t this has not brought these services to the l o w - i n c o m e populat ion. T h e funds are spent o n urban infrastructure, usual ly water product ion and large water m a i n w o r k s (catchment and supply) . M o s t surface waters are pol luted, w i t h i n a large radius around the city . Somet imes , underground 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 is tr ibut ion networks lack maintenance, and l e a k i n g and i l l e g a l tapping cause huge losses o f dr inkable water. I n E u r o p e , an estimated 30 percent is lost between product ion and consumption; i n deve loping cities this loss can reach an astonishing 60 percent o f treated water ( S A B E S P Report , 1996). C o l l e c t e d taxes are considered a p r i m a r y source o f funds for infrastructure maintenance. B u t general ly the tax structure does not correspond to the cost's reality and 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 power. 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 ramework not necessari ly c o n d u c i v e to i m p r o v e d services. Sometimes, even the extent o f subsidies is not k n o w n , because the real cost has not been accurately determined. U s u a l l y , water and sanitation corporations are unable to raise the resources needed to expand service networks and recover costs. Consequent ly , 14 these corporations have great d i f f icul ty extending services to the poorer strata and m a i n t a i n i n g h i g h qual i ty standards w i t h i n a just tax structure. In some countries, water cannot be assessed o n a cost recovery basis by law. T h e rationale is s i m p l e : as a basic 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 neighborhoods - the f o r m a l c i ty - is h i g h l y subsidized, the poor do not get the services, and p u b l i c corporations r e m a i n i n deficit . Governments see these corporations as a bottomless dra in o n f inancia l resources, and show no interest i n strengthening them. F o r the last decade, however , there has been a recognized need for service corporations w i t h d y n a m i c prof i les , able to extend services to the poorer strata i n the i n f o r m a l c i ty . U r b a n recovery projects i n deve loping cities are today an essential component o f most l o c a l and reg ional government programs. H o w e v e r , the costs o f recovery o f destroyed or contaminated natural ecosystems are far higher than the cost o f prevention measures. Therefore, it is essential that a l l the inst i tut ional 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 prevent ion and enforcement o f controls, and i n p u b l i c and c i v i c programs to increase awareness o f the need to care for the environment. Consequent ly , to strengthen developing ci t ies ' urban growth management capacity and concentrate more resources o n the problems o f urban environment are the most feasible and l o g i c a l approaches to solve this di f f icult and endemic 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 increasing urban environmental p r o b l e m s , water p o l l u t i o n has been ga in ing more and more space i n discussions about urban management. T h e 15 focus is o n recovery o f already pol luted resources and/or preventative measures to preserve this basic and essential natural resource. Water , i n spite o f be ing a renewable resource is b e c o m i n g a scarcer c o m m o d i t y . Project ions s h o w a l a r m i n g scenarios. L o w avai labi l i ty o f c lean water i n the face o f increas ing d e m a n d i n several places around the w o r l d c o u l d provoke territorial confl icts i n the next century. A c c o r d i n g to experts at the Habitat II Conference, populat ion growth, waste and contaminat ion cause water scarcity ( S M A , Report , 1997). In g lobal terms, d r i n k i n g water is abundant, but it is not a lways avai lable where it is needed. A c c o r d i n g to a W o r l d B a n k Report o n D e v e l o p m e n t and E n v i r o n m e n t (1992), there are already 22 countries whose renewable water resources are considered scarce, a situation that affects not o n l y household supply , but also e c o n o m i c activit ies. T h e water ava i lab i l i ty p r o b l e m becomes more dramatic i n the face o f demographic transformations. In 1980, a one i n three inhabitants o f deve loping countries was l i v i n g i n a c i ty . It is estimated that by 2 0 2 5 , at least 60 percent o f the populat ion w i l l be urban; f r o m this total , 80 percent w i l l be concentrated i n precarious housing i n b i g cities. In countries w i t h a h i g h u r b a n concentrations, such as B r a z i l , disregard o f the environment and o f basic sanitation is d irect ly affecting the qual i ty o f l i fe o f m i l l i o n s . Degradat ion 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 and non-planned appropriat ion o f the avai lable resources. ( S M A , Report 1997). Water maintenance and preservation depend fundamental ly o n the qual i ty o f other natural resources and o n h o w people use them. T o preserve water qual i ty and quantity requires actions to 16 contro l the w h o l e ecosystem. A l t h o u g h three quarters o f the planet 's surface are covered by 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 is t r ibut ion o f water over the planet 's surface is very uneven, and frequently the locations w i t h abundant supplies are not near larger areas o f urban and agricultural act ivity. T h i s is a c o m p l e x situation. Preventative and corrective measures are needed to create development strategies that are balanced soc ia l ly , e c o n o m i c a l l y and environmenta l ly . A g e n d a 21 i n its d i s c u s s i o n o f urban poverty recommends sustainable demographic 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 po l ic ies for sustainable e c o n o m i c development. In spite o f the cal ls expressed i n A g e n d a 21 , w h i c h defines sustainable management o f water resources as essential for e c o n o m i c and h u m a n development, w e see c o n t i n u i n g degradation o f water and 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 munic ipa l i t i es do not treat sewage before releasing it into r ivers, thus contaminat ing water that w i l l be co l lected 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 show that only 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 problems associated w i t h destructive occupat ion o f areas w i t h i n hydrographic basins o f supply watersheds, w h i c h causes de-forestation, so i l movements , erosions, predatory 17 occupations, etc., lack o f basic sanitation causes the water supply for urban agglomerations to be seriously c o m p r o m i s e d . SAO PAULO In Sao P a u l o State, the strengthening o f urban agglomerat ion is happening i n m e d i u m - s i z e cities such as Sorocaba, C a m p i n a s , P i rac icaba , R i b e i r a o Preto, Sao Jose dos C a m p o s , Santos, A r a c a t u b a , Presidente Prudente and Sao Jose do R i o Preto, where water management problems s i m i l a r to S P M A are registered. Some o f these cities belong to the same hydrographic b a s i n as S P M A , w h i c h makes issues o f p o l l u t i o n and water qual i ty control ones to be tackled o n a larger scale than c i ty-by-c i ty . In general , water p o l l u t i o n has four m a i n causes: domestic sewage, the p r i n c i p a l source o f organic biodegradable composts i n the water system; industr ia l effluent, v a r y i n g i n v o l u m e and c o m p o s i t i o n ; f a r m i n g and cattle ra is ing run-of f contaminat ion (ferti l izers, pesticides, herbicides, etc.), carr ied out by r a i n into rivers and lakes; and urban waters generated by c i ty surface run-off. In the metropol i tan r e g i o n o f Sao P a u l o , the surface waters are very p o l l u t e d and di f f icu l t to puri fy . Subterranean water also presents h i g h degrees o f p o l l u t i o n , due to in f i l t ra t ion o f heavy metals, synthetic c h e m i c a l products and other tox ic wastes, w i t h serious impacts o n p o p u l a t i o n health. T h e g r o w i n g demand for water, w i t h the increased deterioration o f sources due to the inert ia and lack o f integrated governmental programs, is causing several confl icts . T h e fragi l i ty and novel ty 18 o f the environmenta l p l a n n i n g tools and the isolated appl icat ion o f normative instruments are preventing implementat ion o f a comprehensive management system 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 beyond specif ic issues, to i n v o l v e questions o f land use, s o c i o p o l i t i c a l and inst i tut ional determinants, and e c o n o m i c agents that have contradictory interests. M a n a g e m e n t o f water resources should be supported by four basic elements: a terr i torial administrat ive base; c o m m u n i t y organizat ion; d i s c i p l i n a r y (ordering, normative) tools ; and technica l instrumentation. M a n a g e m e n t o f water resources cal ls for radical changes to enforce e c o n o m i c ef f ic iency and environmenta l sustainabil i ty , control o f industr ial p o l l u t i o n , and massive investments for sanitary drainage and decontaminat ion o f water sources. Projects necessary to recover and preserve water resources i n deve loping cities require not o n l y huge amounts o f f inanc ia l resources for the p h y s i c a l w o r k o f updating infrastructure, but also inst i tut ional/pol icy changes i n resources management to implement efficient m o n i t o r i n g and p o l l u t i o n control measures. In development j a r g o n , good governance is required. CASE STUDY METHODOLOGY Speci f ic data about the Guarapiranga R e c o v e r y P r o g r a m was obtained through interviews w i t h people i n v o l v e d f r o m its concept ion through to implementat ion, development and administrat ion. T h i s includes state and m u n i c i p a l of f ic ials , residents, N G O representatives, p lus technica l staff f r o m p u b l i c corporations and companies (complete l ist 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 and September 1997, i n Sao Paulo . Publ icat ions and newspapers were 19 extensively r e v i e w e d , as was the P r o g r a m ' s documentation. V i s i t s to and photo documentat ion o f the areas where the program is be ing implemented were signif icant for understanding the issues i n v o l v e d . There were also opportunities to participate i n several workshops w i t h scholars and professionals , p lus technical personnel i n v o l v e d i n the Program, . These seminars were organized 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 Guarapiranga P r o g r a m objectives and achievements to date, and 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 comprehensive approach that considers the w h o l e water sources system for the State o f Sao Paulo . ORGANIZATION OF T H E THESIS Chapter two examines the role o f International Institutions i n f inancing the development process, w i t h part icular emphasis o n L a t i n A m e r i c a n and B r a z i l . A special 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 ramework for the Guarapiranga R e c o v e r y P r o g r a m analysis. T h e objective is to c lari fy the role and importance o f these agencies i n the d e f i n i t i o n o f the urban scenario, as w e l l as ident i fy ing their eventual connivance towards the c i ty status quo. Chapter Three discusses B r a z i l and Sao P a u l o metropol is ( S P M ) , to set the context where urban environmenta l p o l i t i c s are happening and help us to understand the impact o f the G u a r a p i r a n g a P r o g r a m . S o c i a l , e c o n o m i c and other specif ic features (geographic locat ion, watershed 20 leg is lat ion, etc.) presented as part o f the contextual f ramework affecting the p o l i t i c a l actions related to the water supply for the metropol i tan region. Chapter F o u r examines the water supply o f the metropol i tan reg ion as w e l l as the leg is la t ion affecting water sources. T h e chapter discusses particular laws and regulations that contribute to p o l l u t i o n o f the reservoir and problems associated w i t h the increasing deterioration o f the urban environment. Chapter F i v e deals w i t h urban land issues and the several aspects o f watershed protect ion. T h i s chapter examines some o f the his tor ica l roots o f the current situation o f l a n d and 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 populat ion i n Sao Paulo . Approaches dea l ing 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 protect ion u p o n the S P M urbanizat ion process. Chapter S i x gives a b r i e f and focused account o f the metropol i tan water supply today. Rather than s iev ing through technical reports o f the matter, it examines the aspects w h i c h have inf luenced (and s t i l l inf luence, i n some cases) water po l ic ies and water management i n the region. Part icular attention is pa id to the Guarapiranga waterbasin to c lar i fy the context for the effects o f urbanizat ion and pol ic ies identi f ied i n the research. A comprehensive expos i t ion o f the P r o g r a m ' s history, design, a ims, p r i n c i p a l players and their respective roles is p r o v i d e d i n Chapter Seven. The actual stages o f implementat ion o f the var ious sub-programs are also considered. Information 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 was completed. 21 T h e c o n c l u s i o n points out as the m a i n problems o f the Guarapiranga P r o g r a m : focus m a i n l y o n technical approach; c o m p l e x i t y o f issues; poor inst i tutional coordinat ion and addressing o f l o c a l goals; poor p u b l i c part ic ipat ion; lack o f p u b l i c knowledge and awareness; lack o f maintenance procedures; no effective environmental education programs; and no impact o n l a n d use p o l i c i e s . T h e pos i t ive steps o f the P r o g r a m so far are: watershed protect ion leg is lat ion changes; recovery o f several degraded areas; i m p r o v e d loca l knowledge i n watershed issues; re inforced watershed b a s i n c o u n c i l s ; and in format ion system (data c o l l e c t i o n and system assembly) . A l s o , the c o n c l u s i o n considers the effect o f urban pol i t i cs o n the urban scenario and degradation o f the environment , especial ly as these concern watershed protect ion areas. Par t ic ipat ion , c i t i zenship rights, l and issues, water resources management, and inst i tutional p o l i c i e s are discussed. T h e questions changed dur ing the process o f the research, not o n l y i n response to the material 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 complex i t ies that l i n k poverty and p o l l u t i o n i n deve loping 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 layed by International Institutions i n the development process i n T h i r d W o r l d countries since the Second W o r l d W a r ( W W II). It was thought that once m i n i m u m condit ions o f weal th ( 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 , and the threat o f another w o r l d confl ict w o u l d be avoided. W h e n the C o m m u n i s t threat arouse i n the 1950s and 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 approach 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 were noticeable, and m a r k e d p r o f o u n d l y the interventions o f international f inancing i n socia l and 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 swayed by the right w i n g thought prevalent i n U S A . T h e n e w approach was reflected especial ly i n the bui l t environment, the urban context, and the infrastructure network (roads, dams, etc.). A l s o , po l ic ies inspired by international m o n e y changed forever the demographic make-up o f deve loping countries. A l t e r i n g the rura l 23 environment and st imulat ing industr ia l izat ion, they cast cities as major attraction, s t imulat ing the exodus o f rural populat ions towards cities i n most deve loping countries, part icu lar ly i n L a t i n A m e r i c a . Quest ions can be raised about h o w international f inancing agencies and i n part icular the W o r l d B a n k have performed i n h e l p i n g deve loping countries for the last 50 years. W h a t has been the s igni f icance o f their eventual attitude change? D o e s the B a n k c o m m i t i t se 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, incorporat ing perspectives o f loca l c o m m u n i t i e s about the m e a n i n g o f development! W h y have the B a n k ' s po l ic ies for urban poverty consisted, i n most cases, o f l e n d i n g m o n e y for large infrastructure projects, w i t h very l itt le recognized impact direct ly u p o n the urban poor? U l t i m a t e l y , has the B a n k had an important role i n shaping the urban environment 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 ? Searching for answers, w e must first acknowledge 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 re lat ively independent inst i tut ion that w i e l d s considerable influence w i t h i n the development agenda. E a c h dol lar the B a n k lends m a y t y p i c a l l y raise t w o or three more f r o m other a i d agencies, private banks and recipient country 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 and borrower countries through its country- lending and sector-strategy reports. D e v e l o p i n g countries are required to m o d i f y domestic po l ic ies , profoundly affecting their economies , 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 qual i fy for structural adjustment loans. A l s o , it is important to note that the B a n k ' s general ly conservative approach to pol ic ies affecting T h i r d W o r l d countries has not changed s igni f icant ly . Adjustments 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 development, rather than towards incorporat ing n e w paradigms or indigenous perspectives (Escobar, 1996). A general disregard for l o c a l knowledge , 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 , and 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 most B a n k programs. T h i s is not necessarily bui l t into project des ign ( i n fact, most recent projects emphasize p u b l i c consultation/participation, especial ly i n environment-related programs), but it is c learly s h o w n through pragmatic actions as deal ing o n l y w i t h the technical elite o f the countries, and not questioning their management and decis ions. T h e B a n k has been a signif icant source o f authoritative knowledge about e c o n o m i c development. It p lays a key role i n the international intel lectual debate about development and its re lat ion to e c o n o m i c growth. Its research and p o l i c y - f o r m u l a t i o n capacity carries more authority than those o f any other inst i tut ion dedicated to development issues. T h e B a n k also c o m m a n d s great m e d i a exposure international ly through reports and documents, w h i c h a l l o w s it to promote its v i e w . Percept ion o f the B a n k ' s value as e c o n o m i c leverage for deve loping countries represents another equal ly strong reason for its recognized importance w i t h i n the f ie ld . T h e analyt ic c o n c l u s i o n is that international institutions have exerted a strong and undeniable inf luence u p o n the transformation o f deve loping cities. T h e W o r l d B a n k , i n part icular, is part o f the network o f agents whose actions have shaped and continue to transform 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 ) 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 ( I D B ) , are w e l l k n o w n i n their role o f lending for divers i f ied sectors w i t h i n d e v e l o p i n g countries' economies . S ince the end o f W W II, they have been offering somet imes-subsidized loans to d e v e l o p i n g countries. ' T h e y cite the need to promote e c o n o m i c growth, fight poverty and i m p r o v e the qual i ty o f l i fe w i t h i n these societies as their major objective for countersigning the transactions between themselves and d e v e l o p i n g governments. Therefore, even being f inanc ing agencies p r i m a r i l y , they define themselves and are cal led f inancia l a id agencies ( C l i c h e v s k y , 1990). B u t an objective analysis o f the history o f these agencies and their f inancia l p o l i c i e s shows that p o l i t i c a l variables - as the i d e o l o g i c a l a l ignment w i t h the U n i t e d States ( U S ) and geopol i t i ca l importance o f 1 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 higher-income. LowOincome and middle-income economies are sometimes referred to as developing economies. Low-income 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. 26 benef ic iary countries were major determinants for the direct ion o f their a id . T o develop c a p i t a l i s m w i t h i n "underdeveloped societies" was also a major a i m (Escobar, 1996). There is not a lways a clear and direct relat ion between a country's need to receive aid (evaluated through poverty indicators l i k e per capita i n c o m e , G N P per capita, etc.) and targeting o f loans by the international agencies. T h e agencies are b a n k i n g and f inancia l institutions and as such, 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 pr iv i lege pol ic ies where they (developed countries) are l i k e l y to become major beneficiaries. C l i c h e v s k y ' 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 inancing agencies between 1977 and 1986, she f o u n d that B r a z i l , the country 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 , was most favored i n the total resources 2 . H a i t i , w i t h the lowest G N P per capita o f the continent, is not a m o n g the 15 higher resource v o l u m e recipients. O n the other hand, G u y a n a , H o n d u r a s , N i c a r a g u a and E l Salvador, countries w i t h strong bi lateral relat ionship and 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 higher 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 two agencies, W B and I D B w i t h i n the same p e r i o d (Table 2.1), one can see that B r a z i l and M e x i c o , countries w i t h strategic geopol i t ica l importance and greater e c o n o m i c 2 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, 27 g r o w t h potential received forty-three percent o f a l l loans directed towards L a t i n A m e r i c a for the 1977-86 per iod . T h i s is a decisive 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 W B IDB Average Brazi l 33.9 17.0 25.45 M e x i c o 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 T O T A L 100.0 100.0 Source: Clichevsky, 1990 P o v e r t y and 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 country 's p o s s i b i l i t y o f r e c e i v i n g subs id ized resources. B u t as was already noted, e c o n o m i c situation is not the o n l y considerat ion. Several o f the factors influence the dec is ion o f w h i c h country receives a id . I n general , these arise f r o m external pol ices o f loaner governments, strategic considerations and concern for development o f the g loba l market capita l ism. Canadian CIDA, Japanese JICA, German KFW. She has also taken into account private volunteer agencies like MISEREOR, OXFAM, CARE, etc. 28 Other c o n d i t i o n i n g factors inc lude the country's credit rating, the private fore ign investment s i tuation and import/export markets. Subordinate to these, other mot ives pointed out by C a u f i e l d (1996), C l i c h e v s k y (1990) and Hayter (1972) e x p l a i n w h y resources f l o w to a determinate country and not to another. A large part o f al located resources have p r i v i l e g e d the p r o d u c t i o n sector and 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 term a i d i n the development 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 can stimulate development and unleash pos i t ive reactions i n other sectors. T h i s assumes that i n activating an e c o n o m y and potent ia l ly b e c o m i n g a development generator pole , other countries i n s i m i l a r s ituation w i l l be st imulated to adopt the same measures. P r i v i l e g i n g appl icat ion i n the product ive sectors w i l l create a d r i v i n g force (propel l ing spring) for e c o n o m i c growth and, consequently, the l i v i n g condi t ions o f the populat ion . T h i s is the 'growing pie' theory, w h i c h condi t ioned 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 Since the 1970s, resources have been generally harnessed to projects i n (so-called) 'national interest'. T h u s , agencies al located resources according to strategies and priori t ies des igned by the country's p o l i c i e s , but appl ied their o w n condit ions and criteria for the loans. G e n e r a l l y , these condi t ions were established i n negotiation and approval stages o f the loan, m a k i n g the needs o f the country c o n f o r m to agencies' priorit ies . These institutions have a lways dressed up i n technical l o g i c their a ims and p o l i c i e s . T h e y d i d studies and specia l ized analyses in loco, w h i c h w o u l d permit t h e m to suggest dec is ions , indicate w a y s and propose pol ic ies to the government without the appearance o f external p o l i t i c a l m e d d l i n g 3 . U n d e r the heading o f technical expertise, agencies have p u b l i s h e d studies and documentat ion that f o l l o w s their o f f ic ia l pos i t ion o n m a c r o - e c o n o m i c , sector and reg ional issues, such as h o u s i n g , p u b l i c health and transportation. Nevertheless , it w o u l d be naive to bel ieve that international institutions were not created to also hinder the spread o f revolut ionary ideologies and to foster, disseminate and consolidate market capi ta l i sm. International institutions have been an important tool i n the Western and A m e r i c a n C o l d W a r strategy to detain the Soviet advance and to consolidate a strong development ethic based fundamental ly o n e c o n o m i c growth. 3 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. 30 T H E W O R L D B A N K AND DEVELOPMENT CONCEPTS T h e W o r l d B a n k was, and is one o f the most prestigious and p o w e r f u l producers o f international development k n o w l e d g e , and it has p l a y e d an important role i n shaping perceptions o f developmental processes i n T h i r d W o r l d countries. I n discuss ing br ie f ly changes i n the W o r l d B a n k ' s understanding o f development dur ing the past four decades, it is poss ible to evaluate h o w c r u c i a l and unquestionable was its intel lectual role i n shaping the dominant l ibera l narrative o f progress, and equal ly i n fostering postwar-war l i b e r a l i s m . O v e r t ime, the concept o f development defended by the B a n k has changed, ref lect ing w i d e r trends i n the international p o l i t i c a l economy. T h e B a n k was contr ived as part o f the o v e r a l l B r e t t o n W o o d s system w h i c h emerged f r o m the capitalist cr is is , g loba l war and reconstruct ion effort i n the 1930s and 1940s. T h e B a n k and the I M F were created b y the v ic tor ious a l l i e d powers as instruments, w h i c h c o u l d be used to consolidate and manage the postwar international p o l i t i c a l economy. T h e B a n k was charged w i t h p r o v i d i n g capital and 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 emerging r iva l ry between U S and the Soviet U n i o n . S ince its incept ion, the w i d e r p o w e r relations o f the C o l d W a r have plagued the B a n k . T h i s p e r i o d saw the establishment o f a l ibera l consensus about the appropriate m o d e l o f e c o n o m i c development and the best approach 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 neol iberal 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 development w i t h i n the f ramework o f K e y n e s ' doctrine and C o l d W a r l i b e r a l i s m (l iberal deve lopmenta l i sm or modernizat ion theory). T h e overa l l strategy o f 31 the U . S . for what came to be k n o w n as deve loping countries was based o n the experience o f anti-c o m m u n i s m reconstruction i n E u r o p e i n the late 1940s and 1950s. Ef fort for development should be supported by m i l i t a r y and e c o n o m i c a id , and was reinforced by 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 rebui ld Western Europe . T h e seeming 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 , contributed to increased b e l i e f i n the adequacy o f l iberal deve lopmenta l i sm i n the 1960s. W h i l e M c N a m a r a was 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 poverty and r e v o l u t i o n were 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 iminated by the e m u l a t i o n o f an 'economic modernizat ion ' approach, bel ieved 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 promoted poverty a l lev iat ion as their major goal . T h i s became the core o f developmental discourse at that t ime ( H o r o w i t z , 1982). T h i s somewhat opt imis t ic v i e w o f C o l d W a r l i b e r a l i s m , the t r i c k l e - d o w n approach, was re inforced b y a document, the M o r a w e t z Report ( 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 growth since the 1950s had been rapid and dramatic , it cont inued to be very p o o r l y distributed. Therefore, once ways to redistribute, or t r i c k l e - d o w n , the weal th were established, the development p r o b l e m w o u l d be solved. 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 inancing 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 toward projects w i t h a re-distr ibutive aspect, and sought to demonstrate the feasibi l i ty o f p r o m o t i n g soc ia l change without d isrupt ing the ex is t ing soc ia l order. T o exist ing macro-economic l o g i c that related loans to the international f lux 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 of the population. Poverty thus became an obstruction to development. In this sense, diagnosis of 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 of services and equipment, lack of housing for the lower income strata, non-existent public transportation, etc. Initially, the option was to invest in the basic needs of the urban population, privileging the "increase of social services and commodities' offered under entrepreneurship basis" (Moura and Mello) . In other words, investments were directed to the expansion of services, mainly energy, water and sewer, but also transportation, telephone and housing. Investment in these areas brings noticeable improvement in the quality of urban life, extended also to lower income population. A s well as beneficial to the population in general, it brought benefits to the production sector, since limited infrastructure in the cities "was a restrictive factor for increased productivity of private investments" (World Bank, 1991). The directives of 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 reproducible , that it w o u l d target a specif ic lower i n c o m e populat ion, whose access to the service w o u l d be certain, and that it w o u l d a v o i d environment devastation 4 . H o w e v e r , it s h o u l d be noted that this d ivers i f icat ion towards the area o f soc ia l c o n s u m e r i s m d i d not represent a strong change o f d irect ion f r o m the p r o d u c t i o n areas, nor d i d it 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 socia l sector used resources f r o m the I B R D , wi thout subsidies, instead o f d r a w i n g o n the International A i d A g e n c y ( I D A ) l o n g term, l o w interest and w i t h an extended amort izat ion per iod ( C l i c h e v s k y , 1990). A f t e r the second o i l cr is is (1979-80) the B a n k became concerned about e c o n o m i c performance i n most countries. E c o n o m i c stabil ity and the maintenance o f g r o w t h were s h o w i n g v i s i b l e dependence o n the international f inancial system's abi l i ty to recycle enough funds. T h e perception that the w o r l d economy had changed f i n a l l y affected B a n k pol ic ies . T h e B a n k started to use structural adjustment loans to l o c k recipient governments into a specif ic 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 and assumptions o f its major sponsors (Berger, 1998). F a c e d w i t h the increase o f foreign debts i n the 1980s, the W o r l d B a n k turned to structural adjustment o f debtor economies. It directed its act ion towards sectors that c o u l d have m a c r o -e c o n o m i c development impact , and pol ic ies that, w o u l d affect the structure o f the State apparatus, for example , hous ing f inancia l systems. 4 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. 34 T h e emergence o f n e o l i b e r a l i s m as the dominant discourse o n development c a n be traced to changes i n the overal 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 s i m p l e solutions to the e c o n o m i c problems o f the developed w o r l d , dea l ing i n a more comprehensive w a y w i t h the aims and 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 were the m a i n beneficiaries o f the emergent g l o b a l i z a t i o n and 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 introduced a total ly different approach to the concept o f development. D u r i n g his tenure (1981-86) the shift f r o m poverty a l l e v i a t i o n to structural adjustment pol ic ies was clearly established. A s a former 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 bank i n the w o r l d , C l a u s e n was an advocate o f a greatly reduced role for the state i n the economy and m u c h greater reliance o n the market as a means o f accelerating e c o n o m i c act ivity . Despi te being one a m o n g several v i e w s sponsored by the B a n k at that t ime, structural adjustment was undoubtedly the predominant p o l i c y direct ion. It is interesting to note, h o w e v e r that for each research report advocating a neol iberal p o s i t i o n , there w o u l d be another that took into considerat ion soc ia l and technological constraint. Nevertheless, as far as 1991, the neol ibera l v i s i o n s t i l l pervaded the conceptual stance o f the Bank 's staff: the B a n k ' s document "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 emphasized market- induced pol ic ies as the ideal path towards g r o w t h and i n c o m e dis tr ibut ion ( C a u f i e l d , 1996). 35 W h e n Barber C o n a b l e assumed presidency i n 1986, the B a n k was reorganized for increased ef f ic iency w i t h a smaller staff, seemingly to help the organization's p u b l i c image. T h e development v i s i o n continued to be inf luenced by rat ional choice theory (the n e w inst i tut ional i sm and the n e w p o l i t i c a l economy) , w h i c h represented a mechanist ic approach to the d y n a m i c s o f p o l i t i c a l and e c o n o m i c change i n deve loping countries ( M o s l e y , 1991). T h e dis integrat ion o f state-socialism by the end o f the 1980s was seen as an evidence that the capital ist m o d e l endorsed by most Western countries was superior, thus re in forc ing the process o f neol ibera l consol idat ion (Keegan, 1993). T h i s situation converged w i t h the ex is t ing international consensus about development, since the post-cold war p e r i o d st imulated p o l i c i e s that favored more i n c l u s i v e p l a n n i n g and strong governments' role , as w e l l as concern for sustainable development and the environment. In fact, i n his inaugural discourse i n 1991, W o r l d B a n k president L e w i s Preston expressed the n e w consensus based o n the free-market and a balance between the private sector and governments, and emphasized 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 u r b a n agglomerations are seen as essential pieces o f national product iv i ty . T h e B a n k ' s v i e w o f the relat ionship between macroeconomics and urban economics 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 economy. M a n y actions i n macro-scale reverberate i n urban l i fe and v ice-versa constraints to urban scale l i m i t product iv i ty and eventually have macro-scale impacts ( W o r l d B a n k , 1991). T h e act ion turns, then, towards larger projects that inc lude inst i tut ional reforms and have reflected at m u n i c i p a l and national levels. 36 In terms o f international influence, the U S A continues to be the B a n k ' s most p o w e r f u l member . It chooses the B a n k ' s head, has veto power over amendments to its A r t i c l e o f A g r e e m e n t , and of f ic ia ls o f the Treasury Department perform 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 inancia l markets, where U S A has a central p o s i t i o n , and f r o m the Bank 's need to be i n consonance w i t h key f inanc ia l actors a l igned w i t h U S A fore ign p o l i c y . T h e vast majori ty 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 ibera l out look and neoclass ica 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 Berger and B e n s o n (1998), the internal r e v i e w process supports the current prevalence o f neoclassical 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 and evaluat ion process w i t h i n the organizat ion, w h i c h is concerned w i t h the maintenance o f the o v e r a l l neoclass ica l perspective. Staf f makes decis ions q u i c k l y , us ing facts selectively to sustain certain favored patterns and convic t ions . A l s o , "the conformist culture i n w h i c h the Bank 's p r e v a i l i n g edi tor ia l l ine is r i g i d l y f o l l o w e d " , impedes or restricts non-conformist approaches (Berger and 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 example 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 ize the B a n k for its a l ienation f r o m those it is supposed to help, but it is d i f f icu l t to regard these as s ignal ing a sharp change o f d irect ion i n the B a n k ' s po l ic ies . A s c lear ly noted b y Berger , the B a n k is an organizat ion profoundly i m p l i c a t e d i n the technocratic and elit ist v i s i o n o f development that stems f r o m the dominant 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 environment and remains the dominant international approach (Berger, 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. T h e i r loans are aggregated i n agriculture, industry and m i n i n g , export, transportation, c o m m u n i c a t i o n , sanitation, urban development, and education. I n the f o l l o w i n g table, the resources appl ied i n each o f these sectors were re-classif ied i n t w o larger categories: sectors benefi t ing direct ly f r o m loans; and sectors where the loans made soc ia l and co l lect ive c o n s u m p t i o n feasible (see Table 2.2). T h i s clarif ies an analyt ical d i v i s i o n m a k i n g v i s i b l e the soc ia l d is tr ibut ion o f the loans and the general goals o f the institutions. Resources al located direct ly to the product ion sector (industry, agriculture, m i n i n g ) and to basic infrastructure for p r o d u c t i o n (main ly 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 al located 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 received the highest percentage o f these investments, f o l l o w e d by 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 ight ly h i g h percentage o f this type o f loan (82,4 percent), but both the agencies have attached h i g h pr ior i ty 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 borrower was the p u b l i c sector, b r i n g i n g foreign m o n e y for large construct ion w o r k s , such as hydroelectr ic dams, transmiss ion l ines, satellites, etc. S ince the 1950s, other strategic areas have been targeted for p u b l i c investment, to create the necessary base for industry and reg ional development poles. 38 Table 2.2 — W B and IDB in Latin America — Loans between 1967-85 per Investing Sector (million LISS) Area Type Sector WB Total % IDB o/ /o Gen. Total % IDA IBDR Agriculture 1549.2 6914.3 8463.5 22.3 6697.4 21.3 15 160.9 21.8 Production Sector Production 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 40.1 41.9 Energy 151.3 7287.6 7438.9 19.6 8526.5 27.1 15 965.4 23.0 Economic infrastruc. 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 7.1 614.0 1.9 3 313.6 4.8 Subtotal 7.1 1.9 4.8 T O T A L 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 transportation sector has received particular emphasis, first w i t h the generation o f a nat ional road network, and secondly through encouragement o f the automotive industry (the related p r o d u c t i o n sector) strongly centered i n mult inat ional resources. T h e agr icul tural sector, as it happens, d ivers i f ied and remained a s ignif icant o f export trade.. T h r o u g h the federal government, a signif icant part o f the resources obtained f r o m the 39 International Institutions were transformed into rural l ending and directed to large and m e d i u m producers (Fundap 1990). A k e y instrument i n B r a z i l i a n development and modernizat ion, industry has g r o w n substantial ly since the 1950s. B e t w e e n 1950 and 1960, areas where foreign capital was a major player , such 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 27 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 international institutions' resources destined to L a t i n A m e r i c a (approximately U S $ 10.6 b i l l i o n i n a total o f U S $ 69.4 b i l l i o n ) . T h e funds were appl ied i n sectors such as hous ing , urban development 5 , sanitation and education. T h e use o f resources i n these areas clearly i m p l i e s an intention to foster basic condit ions for labor reproduction, by intervening direct ly i n l i v i n g condit ions . Sanitat ion, understood as expansion o f water and sewage networks i n urban areas, rece ived the largest percentage o f resources, w i t h 8 percent o f the total investments and 50,6 percent o f the total appl ied i n soc ia l areas. A c h r o n o l o g i c a l analysis o f percentage o f loans to socia l areas i n re lat ion to the total , (Tables 2.3 and 2.4), shows a strong yearly var iat ion 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$) 5 Urban development is understood here as including the projects for institutional modernization, urban planning, housing and public transportation. 40 Year Total Fin.Res. Social Area (1) Urban Development (2) Sanitation/ Education (3) Total Soc.A. (4) % (4/1) 0/ (2/4) 1967 469,5 13,8 80,9 94,7 19,1 14,6 1968 430,9 26,0 36,2 62,2 14,4 41,8 1969 631,5 11,3 63,5 74,8 11,8 15,1 1970 644,8 47,4 39,3 86,7 13,4 54,7 1971 651,8 7,5 119,5 127,0 19,5 5,9 1972 806,7 44,0 89,9 133,9 16,6 32,9 1973 884,0 14,3 138,2 152,5 17,3 9,4 1974 110,7 - 129,3 129,3 11,6 0,0 1975 1375,0 38,2 179,1 217,3 15,8 , 17,6 1976 1527,8 41,5 203,8 245,3 16,1 16,9 1977 1808,9 43,1 306,0 349,1 19,3 12,3 1978 1870,2 - 241,1 241,1 12,9 0,0 1979 2015,0 1,5 248,0 249,5 12,2 0,6 1980 2308,9 40,0 310,3 350,3 15,2 11,4 1981 2493,0 11,0 273,0 284,0 11,4 3,9 1982 2744,3 190,3 505,8 696,1 25,4 27,3 1983 3045,0 39,2 460,1 499,3 16,4 7,9 1984 3566,6 297,3 290,0 587,3 16,5 50,6 1985 3061,2 54,2 307,8 362,0 11,8 15,0 TOTAL 31508,8 920,6 4021,8 4942,4 15,7 18,6 Source: Ibid. 41 Table 2.4 — WB (IBRD AID) — Latin America — Annual Resources destined to Social Areas in relation to total financing (in million US$) Year Total Social Area (1) Urban Development (2) Sanitation/ Education (3), Total (4) /o (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 Table 2.5 — WB — IBRD, Brazil Resources destined to Social Sector in relation to total financing (in million US$) Year Total (1) Social Area (2) <>/ /o (2/1) Area/Agency Distribution (in US$ million) 1971 160,4 45,4 28,3 Education 8,4; water 22,0; sanitation SP 15,0 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 Education (profess.train.) 32,0; water/sewage COPASA MG 40,0 1978 705,0 198,0 28,1 Urban trans. EBTU 88,0; BNH/SABESP Sewage collection and treatment 110,0 1979 674,0 263,0 39,0 Urban development medium cities 70,0; BNH urbanized plots/low cost housing 93,0; BNH Water/Sewage NE 100,0 1980 695,0 301,0 43,3 Basic Education NE 32,0; BNH Water/Sewage 130,0; BNH MG 139,0 1981 844,0 270,0 32,0 EBTU 90,0; BNH Sanitation 180,0 1982 722,1 136,9 19,0 Urban Development Recife 123,9; nutrition 13,0 1983 1984 1985 1457,5 1604,3 1506,7 311,2 169,7 88,3 21,4 10,6 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 1987 1620,0 1261,5 239,0 274,5 14,8 21,8 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 1988 1989 1359,5 707,0 255,0 474,0 18,8 67,0 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 TOTAL 15533,2 3176,5 21,4 Source: WB Annual Reports 43 Table 2.6 — IDB, Brazil — Loans (in million US$) Year Total (1) Social Area (2) /o (2/1) Area/Agency distribution (in million US$) 1971 148,9 30,0 20,1 Water/Sewage B N H 30,0 1972 2133,2 10,0 4,7 Clean Water RJ 10,0 1973 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 Federal Universities Development 50,0 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 SP-S A B E S P 163,0 1987 369,9 163,2 44,1 Water/Sewage Brasi l ia 100,0; U S P Development 63,2 1988 7,1 0,0 1989 525,1 - 0,0 T O T A L 6082,6 845,8 13,9 Source: IDB Annual Reports 44 In the B r a z i l i a n case i n particular, it is possible to veri fy that this var ia t ion is m o r e signif icant. It osci l lates between no investment i n the social sector, as happened i n var ious years w i t h the I D B , to 67 percent o f the total o f applications i n the country, a record reached by 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 and 2.6). T h i s apparent lack o f clear log ic i n the annual a l locat ion o f resources can be seen as reinforcement towards invest ing i n p r i o r i t i z e d sectors associated w i t h product ion, instead o f a clear agenda where soc ia l areas are perceived as the backbone o f development. In re lat ion to the resources distr ibut ion between the soc ia l sectors, table 2.7 shows that I D B resources are destined to 4 areas: sanitation (53,4 percent); education (30,3 percent); f l o o d i n g r e l i e f (9,2 percent) and urban development (7,1 percent). T h e W o r l d B a n k has a s l ight ly m o r e var ied range o f projects i n its lending port fo l io : sanitation (45,7 percent); urban development (16,6 percent), urban transportation (11,9 percent) education (9,5 percent) f l o o d i n g r e l i e f and gas network (11,9 percent). T h e soc ia l sector pr ior i ty for sanitation is c learly 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 more product ive investment than, for example , soc ia l h o u s i n g , an equal ly important factor i n shaping the urban fabric. It is important to emphasize that the great 'informant'' o f international institutions has been the state, i n its central , regional and loca l instances or through its p u b l i c corporations, because they are a priori, those that assume responsibi l i ty for the loans engaged. T h e state has p l a y e d a k e y role i n heavy infrastructure investments, i n order to secure fore ign private capital 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 commodit ies p r o d u c t i o n i n countries w i t h late capi ta l i sm. W i t h this strategy, the state aims to create condit ions to encourage the p r o d u c t i o n o f capita l , foster co l lect ive c o n s u m p t i o n and guarantee the c i rcu la t ion 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 more or less direct ly the relat ionship between capita 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 T O T A L 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 soc ia l h o u s i n g , direct ly affect the l i v i n g condit ions o f the populat ion and are more v i s i b l e and because they are appl ied w i t h i n the urban area. D u e to the size o f these tasks and often-favorable foreign l e n d i n g condit ions , international funding became a means by w h i c h governments were able to execute an ambit ious 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 national priorit ies c o i n c i d e d w i t h the agenda o f the institutions. O b v i o u s l y , national priorit ies were sometimes adjusted to meet the 46 International Institutions' po l ic ies , w i t h the sole objective o f obtaining resources, a lways very 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 between 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 ioneer ing projects i n each sector. International institutions establish, then, a series o f rules and goals i n terms o f concept and operation mode for obtaining resources. In spite o f exist ing specif ic reports for each country, intervent ion proposals become very s imi lar , due to the B a n k ' s r i g i d i t y and insistence o n adopt ion 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 condit ions i n T h i r d W o r l d countries. Escobar (1995) also emphasizes the lack o f a l o c a l perspective i n international inst i tut ions ' approach. Therefore, l o a n appl icat ions are presented according to the Bank 's pr ior i t ies , perfect ly fitted for its loans programs. 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, even i f their e c o n o m i c , cul tural and p o l i t i c a l d ivers i ty w o u l d presuppose answers w i t h a larger degree o f variance. In some instances, pre-condit ions i m p o s e d by the agencies can be i n c o m p a t i b l e w i t h a country ' s internal conjuncture o f interests. T h i s w o u l d e x p l a i n , partly, the inconsistency o f resources appl icat ion over the years. It is noticeable however that sector a l locat ion o f loans i n B r a z i l diverges f r o m sector a l locat ion elsewhere, suggesting that B r a z i l ' s internal pr ior i t ies , for e x a m p l e i n the nat ional plans for development, were maintained ( A b r e u and F r i s t c h i n M o u r a and 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, even w i t h i n the same pre-defined l ine o f f inancing . S m a l l e r projects, such as soc ia 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 capi ta l i sm. I n other words , the l e v e l o f inst i tut ional 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 weal th is sufficient for funding projects o f smal ler span and o f socia l vocat ion. T h i s p r i n c i p l e can be seen i n the case o f the Guarapiranga R e c o v e r y Project, because the social housing funding was a respons ib i l i ty o f the B r a z i l i a n side o f the agreement, leaving 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 always g i v e n central importance to l e n d i n g for infrastructure, and w i t h i n this c lassi f icat ion, 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 surpr is ing , therefore, that the B N H - B a n c o N a c i o n a l de Habitacao ( N a t i o n a l H o u s i n g B a n k ) , has emphas ized sanitation i n its investments w i t h internal capita l , d iver t ing approximate ly 30 percent o f its total resources away f r o m its m a i n mandate o f b u i l d i n g soc ia 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 obtained U S $ 890 m i l l i o n i n the international market to supplement internal savings. T h i s amount was equivalent to 15.3 percent o f the total investment for water supply and drainage systems. M o u r a and M e l o (1990) point out a def init ive influence by international institutions i n p o l i c y decis ions b y some sector agencies w h i c h they helped to organize, for example the Sanitat ion D i v i s i o n o f B N H . F r o m this point 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 ul t imate ly shaping the bui l t environment, was more important than the loans received f r o m them. T h e investments preferred by international institutions are i n the p r o d u c t i o n sectors, especial ly those w i t h more guaranteed return. In addit ion, it is necessary to expand the mater ia l base o f d e v e l o p i n g countries through modernizat ion (for internal accumulat ion o f capital) or through part ic ipat ing i n a larger expansion p r o g r a m o f g loba l capi ta l ism. T h e soc ia 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. Because 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 urban environment , international loans have h a d some posi t ive impact o n qual i ty o f l i fe o f the l o w - i n c o m e populat ion. In v i e w o f these facts, project f inancing by international institutions has made t h e m important agents o f intervent ion i n the urban scenario o f deve loping countries. A l o n g w i t h resources, they contributed rules and condit ions that inf luenced and interfered i n projects. INTERNATIONAL INSTITUTIONS INTERVENTION IN T H E URBAN AND SOCIAL HOUSING QUESTION T h e performance o f international funding agencies has specif ic characteristics i n terms o f their a l locat ion prior i t ies . T h e diagnosis, recommendations, p o l i c y actions and the state's role have been m o d i f i e d over the years. These modif icat ions o f the past 30 years indicate that there were some changes o f directions i n the f o r m o f intervention o n development issues and o n soc ia l reality i n deve loping countries. 49 I D B , U S A I D , U N and the W B are the m a i n international institutions, w h i c h have been important i n L a t i n A m e r i c a . T h e y benefited f r o m the accumulated experience o f the E x i m b a n k (Importat ion and E x p o r t a t i o n B a n k o f Washington) and the I B R D that has been granting loans i n L a t i n A m e r i c a since the beginning o f the 50s. W i t h i n L a t i n A m e r i c a , there was a d e m a n d for external resources supported by the b e l i e f o f possible nat ional ly based development through industr ia l i zat ion, w h i c h w o u l d create the internal condit ions for e c o n o m i c g r o w t h 6 . T h e part ic ipat ion o f international capital was inc luded, i n the f o r m o f loans or i n the f o r m o f investment f r o m fore ign companies. It was seen as necessary to appeal to 'external savings' through private investments, but "...(for the national off icials) was very clear that l e n d i n g was indispensable for e l i m i n a t i n g strangling points i n basic sectors, such as transportation and energy, wi thout w h i c h opportunities for private interventions w o u l d suffer grave constr ic t ion" (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 Center for H o u s i n g ) and the U N brought to d iscuss ion L a t i n A m e r i c a n governments' agendas to address problems emerging 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 not iced that L a t i n A m e r i c a was g o i n g through a p e r i o d o f r a p i d change and transformation w i t h no e q u i l i b r i u m between the potential o f rural and urban development. 6 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). 50 G r o w i n g migrat ions kept i n check the absence o f pol ic ies concerning the supply o f urban services and hous ing for lower i n c o m e groups ( A c e v e d o , 1956) W h e n socia l p o l i c i e s were present, they functioned under patronage cr i ter ia ('regalos y favores," A c e v e d o , 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, banks, etc. The m i s s i o n ver i f ied that a s ignif icant v o l u m e o f nat ional resources, 25 percent o n average, was being directed to construct ion w o r k s (sometimes m o n u m e n t a l p u b l i c bui ld ings) w i t h no consideration o f the emerging problems o f the cities. T h e Carta de P u n t a D e l Este (1959), s igned by a l l L a t i n A m e r i c a n countries except C u b a , presented a complete and articulated shopping-l ist o f L a t i n A m e r i c a n problems and objectives, and r e c o m m e n d e d w a y s to transform the exist ing underdevelopment s i tuation through m o d e r n i z a t i o n strategy. T h e document l isted e c o n o m i c aims: h o w to reduce dependence o n 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 inf lat ion and deflat ion, h o w to reach a substantial growth i n annual i n c o m e for inhabitants. It defined also the type and qual i ty o f development desired, e m p h a s i z i n g democratic societies, w e l l being, and opportunities for everybody. F i n a l l y , it def ined objectives and aims for development i n terms o f education, h o u s i n g , health, nutr i t ion and environmenta l sanitation (Sabato, 1981). Sabato emphasizes the central role o f the U S A i n the format ion and act ion o f these agencies, he suggests there was already a comprehension that development was not o n l y an e c o n o m i c p r o b l e m , but had another p o l i t i c a l connotation, associated w i t h the management o f dissat isfact ion generated b y poverty. N a t i o n a l and continental security questions were extremely 51 important, i n v i e w o f the advance towards the c o m m u n i s m represented by the C u b a n revolut ion. A c t i o n i n this d irect ion was, evidently , p r e l i m i n a r y to actions o n socia l and e c o n o m i c areas (Sabato, 1981). B u t , as disparities were more signif icant w i t h i n the soc ia l sphere where tension c o u l d lead to p o l i t i c a l quest ioning, it was there that these institutions started to concentrate their intervention. M e l o (1987), d iscuss ing the p o l i t i c a l arena and actions shaping the urban environment , points out that, as early as the beg inning 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) had 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 part icular housing. T o implement his p o l i t i c a l goals he asked for support (economic and conceptual) f r o m international institutions ( U S A I D and 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 oppos i t ion to the G o u l a r t left-oriented government. H i s act ion i n R i o de Janeiro, supported by foreign resources, was the first large p r o g r a m to promote desfavelamento, the transfer o f s lums to soc ia l hous ing i n the periphery o f the c i ty , w i t h the objective o f neutral iz ing a potential source o f soc ia l tension. It is important to c a l l attention to the dual action o f f inancing 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 and energy ( in accordance w i t h the ' interests' o f development o f L a t i n A m e r i c a n countries). S ince the b e g i n n i n g , there has also been clear p o l i t i c a l preoccupat ion w i t h projects w i t h w i d e social repercussion. T h e state establishes certain sectors as sole 'delegates' for the loans conceded, us ing the external resources for large 52 c i v i l w o r k s , or transforming t h e m into credit for the product ion sector. 7 T h i s practice persists to this day, w i t h the p o l i t i c a l ga in a lways wrapped i n soc ia l a ims. Later , however , because projects i n the social sector, m a i n l y hous ing and urban development, d i d not represent even a partial so lut ion for the social inequal i ty that was being consol idated 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 f inance. S ince the end o f the 1960s, resources have d w i n d l e d incremental ly , unt i l by 1978 there were no l o a n resources whatsoever for soc ia l hous ing or related projects ( D o n e l s o n , 1979; H a r d o y , 1981; Burgess , 1982). F u n d i n g was avai lable for urban infrastructure (water and sanitation) and transportation. T h e socia l impact o f these was broader, benefited more people w i t h i n cit ies, and had a q u i c k e r f inancia l return because there was just one borrower, the p u b l i c power. There was even direct f u n d i n g for inst i tut ional re-structuring o f p u b l i c entities, i n order to direct their investments to urban areas, thus l i n k i n g social and product ion investments. 8 7 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 ". 8 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. 53 It became clear that the agenda o f international agencies dur ing the 1960s and 1970s was mot ivated m u c h more by strategic p o l i t i c a l interests than by any structured p r o g r a m to benefit urban areas or the soc ia l sector. I n spite o f w a r n i n g signs presented by increasing soc ia l problems that threatened p o l i t i c a l stabi l i ty , and the need to create strategies to overcome these problems, the actions d i d not expand f r o m acting o n isolated problems. Underdevelopment condit ions were expected to be overcome by government efforts, p lanned act ion and foreign aid. F r o m the 70s, w i t h the i n c l u s i o n o f f inancing for soc ia l projects, the W o r l d B a n k , wi thout abandoning its previous p o s i t i o n , began also to support conf ined interventions, putt ing resources into experimental projects coherent w i t h its objectives. In general, these were l o w investment projects, a i m e d to hous ing , sanitation, water distr ibut ion and urban transportation. There were intended to generate a "demonstration effect," an example to be f o l l o w e d by 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 and p u b l i c sector deficit ( W o r l d B a n k , 1991). Subsequently, it was ver i f ied that these experiences (even i n larger scale intervent ion and cost-recovery intervention) neither generate transformations w i t h i n the inst i tut ional apparatus nor changed the l o g i c o f the p u b l i c social pol ic ies ( C a u l f i e l d , 1996). T h e evaluat ion o f these experiments showed that they were too c i rcumscr ibed, and d i d not m o b i l i z e the private sector. A t the same t ime, w i t h the r i g i d and regulatory character o f the state, they were not able to incorporate any c o m m u n i t y init iatives. 54 So, f r o m the f ina 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 and supra- local impact , w h i c h c o u l d l i n k the urban m i l i e u to the nat ional setting (such as inst i tut ional 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 changing. S ince its incept ion the B a n k h a d been preoccupied w i t h direct ing the p u b l i c sector v i a the state, through 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 industr ia l i zat ion; this role led it to assume investments and control 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 laced o n the state's responsibi l i ty for w o r s e n i n g condi t ions faced b y the urban p o p u l a t i o n due to the development m o d e l adopted. It became important that the state acquire the capacity to intervene through p u b l i c po l ic ies . 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 became important, and the p r i n c i p a l relat ionship between the B a n k and the state tended towards del ineat ing a pol icy ' s "design". A t no t ime d i d the role left to the state reflect tendencies towards statism. O n the contrary, its p r i n c i p a l role i n the battle against poverty was to generate mechanisms for private product ion to reach the l o w e r i n c o m e p o p u l a t i o n , assuming i m p l e m e n t a t i o n o f co l lect ive services needed 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 ra t ional izat ion o f government performance became essential. The 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 and p u b l i c p o l i c y , leaving more space for private ini t iat ive . 55 F r o m analysis o f the performance o f international institutions, i n part icular the W o r l d B a n k , over the years, it is possible to detect two m a i n tendencies. O n the one hand, investment sought to start e c o n o m i c development, by direct ing most o f the resources towards the p r o d u c t i o n sectors i n industry and agriculture. The choice relapsed always i n sectors able to inf luence e c o n o m i c development, " increasing the national product iv i ty , m a k i n g the labour m o r e product ive and cata lyz ing the under-used f inancia l and material resources" (Nient ied , 1985). Investments i n 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 road transportation w o r k s . These are a imed at development that w i l l stimulate several market forces. T h e state has an important role i n f inancing, mediat ing and m a k i n g feasible, but not, at any t ime, substituting the private init iat ive and free market compet i t ion. I n this sense, there has been a broad preoccupat ion w i t h incorporat ing sectors o f the so-cal led i n f o r m a l market as a means to expansion and divers i f icat ion. In the case o f hous ing 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 incorporat ing, i n the f o r m a l market, p r o d u c t i o n practices not total ly capitalist , such as auto-construction (self-built). T h e other axis o f investment is towards rat ional iz ing p u b l i c sector actions. T h e p u b l i c sector has been a lways seen international ly as an inflated and inefficient machine , s w i n g i n g towards statism or g i v i n g too m u c h to private interests and leav ing out strategic sectors. T h i s preoccupat ion, present i n the 1970s, becomes the central point by the 1980s. O n one hand, ra t ional i zat ion i n some sectors is an objective; m a n y o f the loans related to urban development are directed towards restructuring the inst i tutional apparatus. O n the other hand, p u b l i c spending restraint is enforced through mechanisms o f macro-adjustment according to I M F direct ions, i n the 56 elaborat ion o f p u b l i c p o l i c i e s to restrict the state's act ion concerning access and p r o d u c t i o n o f c o m m o d i t i e s and services. T o achieve this, international institutions, consistent w i t h the neo-l iberal agenda o f the 1980s, propose that the state's act ion be rev iewed, that some o f its activit ies be transferred to private ini t iat ive . T h e state is g i v e n the role o f facil itator o f private act ion rather than producer o f c o m m o d i t i e s and services. I n relat ion to urban po l i c ies , the state approach to h o u s i n g p o l i c y , for example , proposes that funds should be g i v e n to housing product ion , c o l l e c t i n g resources f r o m private in i t iat ive through savings and creating f inancing 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 possible to exclude the state, p u b l i c p o l i c y it is thought, should re-direct the state's attention towards m i n i m u m levels o f soc ia l services ("poor p o l i c i e s " ) , l o w e r i n g costs and standards. Inc luded i n "poor po l ic ies" for housing are the urbanized al lotments and alternative projects o f c o m m o n sewage networks, and lately, upgrading o f ex is t ing s lums and squatter settlements. S ince the end o f the 80s, the W o r l d B a n k has re-directed its intervent ion towards m o r e general development strategies for urban areas, w h i c h has generated a strong impact 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 urban fabric through investment by international institutions is v i s i b l e : • Re-structur ing o f ex is t ing space, through sewage, water, road, and transportation networks; the canal izat ion o f streams, and the construction o f n e w p u b l i c and private b u i l d i n g s . 57 • Integration into the " legal" city o f spaces prev ious ly isolated f r o m c o n t r o l l i n g l a n d use and z o n i n g legis lat ion, through urbanizat ion o f favelas and de-regulation and r e v i s i o n o f urban codes and laws. • Incorporat ion o f n e w areas into the urban fabric through expansion projects, as urbanized al lotments and services networks extend into periphery areas. • Increased offers o f housing and low-cost service units, through 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, construct ion o f hous ing units and col lect ive equipment. Object ive ly , project f inancing has made international institutions major agents i n the urban 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 inanc ia l basis o f the p h y s i c a l transformation o f the cities, but they have also been a huge influence o n the rules that def ined these transformations. W i t h the development o f larger cities into megacities, the size o f urban recovery programs has increased enormously , 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 cit ies w i l l be deal ing w e l l into the next century. Whether this w i l l be efficient and satisfactory remains to be seen. It should be remembered 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 , and this has been a l i n g e r i n g tradit ion. Eugene B l a c k , one o f the most inf luent ia l B a n k directors (1949-1962) w a r n e d that most people i n deve loping 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 thought and living 58 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 most dangerous that the people should , under n o r m a l condit ions, be i n a pos i t ion to put into effect their transient w i l l and their uncertain 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 . , 1991, Odious Debt). W h i l e this approach might have been generally c i r c u m v e n t e d i n most o f his w o r k s , it became extremely dangerous w h e n the " c o m m o n m e n " were 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 and rhetoric is c learly d isdainful o f inputs or ig inat ing f r o m recipient countries. T h e B a n k ' s m i s s i o n since its creation was to promote i n borrower nations development def ined as an increase i n G N P ( M a s o n , 1973). T h i s is not to deny, though, that improvements i n l o w -i n c o m e neighborhoods were achieved 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 not also surpris ing C a u f i e l d comments: "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 small benefits they have received. Development in the monopolistic, formulaic, foreign-dominated arrogant and failedform 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 Bank 's lending p o l i c y and approach to projects suggests that its preference has been, for m u c h o f the last decades, to fund large infrastructure projects, w i t h i n the continuous pursuit o f development anchored i n industr ia l izat ion. T h e B a n k has be l ieved, for a l o n g t ime, that 59 m o d e r n infrastructure represents the most rel iable and s o l i d foundat ion for a l l e c o n o m i c development. There are, however , a number o f indicat ions o f innovat ion w i t h i n the B a n k . There are n e w p o l i c y guidel ines , and more soc ia l ly oriented staff have been incorporated ( K a r d a m , 1994). C e r n e a (1990) and other B a n k social scientists have stated that even though the soc ia l di f f icul t ies encountered i n m a n y B a n k ' s projects have not total ly disappeared, strategies have i m p r o v e d a n d m o r e resources are be ing channeled towards solutions o f cr i t ica l and c o m p l e x soc ia l issues, i n broader B a n k p o l i c i e s and Programs. C e r t a i n l y , the B a n k ' s p o l i c y has changed through the years. T h e question to be posed is whether these changes s ignify a n e w understanding o f development processes w i t h i n d e v e l o p i n g countries' perspectives, or are s i m p l y adaptations to the n e w g loba l order. 60 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 historic aspects o f the format ion o f Sao P a u l o . P o l i t i c a l and soc ia l h is tor ica l roots are considered as context to the format ion and g r o w t h o f Greater Sao P a u l o . Sao P a u l o is pos i t ioned i n the context o f changes i n the international and nat ional 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 metropol is and m a i n industr ia l pole . Sao P a u l o ' s e v o l u t i o n has been t ied into B r a z i l i a n development, and 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 industr ia l engine, affected this c i t y ' s metropol i tanizat ion process. B a c k g r o u n d i n f o r m a t i o n is to show the signif icant price extracted f r o m residents' qual i ty o f l i fe 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 economy. 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 i m p l i c a t i o n s b e y o n d the b u i l t environment. T h e increased skewed weal th distr ibut ion and the reinforcement o f the g r o w i n g soc ia l inequal i ty i n terms o f race and gender are also results o f the S P M A transformation and contribute to environment degradation. The price p a i d by society as a w h o l e has been signif icant, especia l ly i n terms o f soc ia l safety and increasing degradation o f the urban environment. H o w e v e r , the 61 negative impact o f industr ia l izat ion o f the S P M A and the e c o n o m i c development mental i ty sponsored for the B r a z i l i a n m i l i t a r y (and dominant elite) has been borne m o s t l y by the urban poor. T h e y are the ones squatting, l i v i n g surrounded by p o l l u t i o n and h a v i n g d i s m a l labour prospects. T h e W B has been a k e y player i n the S P M A . T h e B a n k gives its b less ing and f u l l support to a group o f p o l i c y - m a k e r s entrusted w i t h translating pol ic ies into strategies tuned to the organizat ion 's rhetoric. These strategies largely over look the relat ion between opportunity and need, and s e l d o m consider 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 and the I M F (part icularly since the early eighties) have been directed towards attaining greater internat ional izat ion o f the economy. In B r a z i l , the e c o n o m i c and inst i tut ional reforms have focused m o s t l y o n deregulating specif ic sectors, i n order to increase cross-border transactions and direct fore ign investment i n manufacturing or f inancia 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 two w a y s to broader i n c l u s i o n i n international trade and business patterns. It has developed advanced services and f i n a n c i a l activit ies (the largest Stock M a r k e t and C o m m o d i t i e s E x c h a n g e i n L a t i n A m e r i c a ) and sophisticated shopping and leisure places (Schiffer, 1998). Unfortunate ly , a concurrent set o f negative side effects has arisen: urban v io lence , marginal i ty , and increasing number o f homeless , a long w i t h a l a r m i n g leve l o f environmental degradation. T h e major urban impact o f the S P M A transformation has been greater gentri f icat ion, w i t h areas devoted to international-capital-associated activities rece iv ing more investment, either private (as 62 i n up-scale condos and bui ld ings i n l ine w i t h international standards) or p u b l i c (as i n advanced services p r o v i s i o n and infrastructure networks, especial ly tunnels and n e w roads). These changes p r i v i l e g e a s m a l l sector o f the populat ion, and have m a n y t imes depended o n international f i n a n c i n g . T h e investments have largely ignored areas where most o f the p o p u l a t i o n is concentrated, either i n the periphery or i n l o w - i n c o m e and decaying neighborhoods. 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 w h i l e attaining a more equitable qual i ty o f l i fe between the elite and 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 ty) , pr ior i ty should be g i v e n to the w h o l e qual i ty o f the urban environment, and to meet ing the needs o f l o w - i n c o m e populat ion ( in formal c i ty) . T h u s , major re-orientations o f urban development projects is necessary, i n order to address a very v i s i b l e , but s t i l l m o s t l y ignored, urban social inequality . BRAZIL: URBAN AND ECONOMIC DEVELOPMENT In spite o f h a v i n g a c i ty network incomparably more 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 populat ion is concentrated i n the Southeast region. Sao P a u l o , especial ly , has g r o w n dramatical ly i n the 2 0 t h century. Processes that shaped B r a z i l i a n p o l i t i c a l p o w e r relat ionships and defined its e c o n o m i c path also determined this part icular urban conf igurat ion. 63 B r a z i l ' s e c o n o m i c direct ion after the W W II became total ly po lar ized . T h e nat ion began to open its e c o n o m y to foreign investment as its o l d inward-oriented growth m o d e l became exhausted. Imports cont inued to rise, but the export sector was not able to develop suff ic ient ly to pay for them. T h e idea o f independent national development through l o c a l l y o w n e d industr ia l i za t ion gradual ly 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 made w i t h fore ign capita l to develop the car industry, c h e m i c a l plants, heavy and l ight engineering and other sectors). T h e growth at any cost p h i l o s o p h y pushed the economy to unprecedented levels. H o w e v e r , a n e w ' a r m y ' was be ing formed: an increasing mass o f u n - and under-employed people were not at a l l , or o n l y part ia l ly integrated as product ive labour into the ' m o d e r n ' sector (Gelber , 1992) T h e f l o w o f people into the c i ty , 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 goal o f increasing food p r o d u c t i o n by 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 tradit ional modest basis o f s u r v i v a l for large sections o f the rural populat ion, 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 poor urban areas (Sorj , 1980; Graz iano da 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 economy grew more than 6 percent annual ly , t w i c e as fast as the populat ion . T h e g r o w t h process that has taken place has complete ly changed the urban, occupat ional and e c o n o m i c structure o f the country. It was i n this scenario that Sao P a u l o became the industr ia l f u l c r u m o f the developmental e c o n o m i c m o d e l . 64 B r a z i l ' s G r o s s N a t i o n a l Product ( G N P ) , estimated at U S $ 651 b i l l i o n i n 1997 (Schif fer , 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 country 's p o l i t i c a l , soc ia l and e c o n o m i c patterns, this weal th is distributed unevenly a m o n g e c o n o m i c sectors, regions, urban and rural areas and, quite c learly , a m o n g households. In 1983, the wealthier 20 percent o f households retained 62.6 percent o f the G N P , w h i l e the poorest 20 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 development growth adopted by the federal government, international recession, external and internal inf lat ion, strong dependence o n petrol and especial ly the g r o w i n g foreign debt have increased the gap between r i c h and poor, h i t t ing the urban dwel ler 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 transformation into a w o r l d c i ty has s igni f ied a broader i n c l u s i o n i n the international trade and business patterns, w i t h h i g h l y advanced f inanc ia l and services activit ies. 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 have been affecting increasingly the socia l , economic , and industr ia l environment o f the reg ion, altering labor relations and sustainable e c o n o m i c growth perspectives. I n recent years an ever-increasing share o f Western investment has been f l o w i n g away f r o m B r a z i l , and 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 industr ia l re locat ion has caused a reduct ion i n real wages and l i m i t e d improvement o f l i v i n g standards, especial ly 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 urbanizat ion due to i n - m i g r a t i o n , reduced industr ia l j o b creation has been responsible for l i m i t i n g expectations o f widespread i n c o m e i m p r o v e m e n t and increasing environment degradation. L a r g e cit ies i n deve loping countries are being reshaped as potential w o r l d cit ies, as nat ional economies open up to v i r tua l ly unmediated g lobal market forces, and external interactions become m u c h more 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 ty concept expresses spatial organizat ion o f the n e w international d i v i s i o n o f labour. A s such, it concerns the contradictory relations between product ion i n the era o f g loba l management, and the p o l i t i c a l determinat ion o f territorial interests. The f o r m o f large cities is no longer seen as a f i x e d locat ion for the p r o d u c t i o n o f goods and services, as it was i n the past, but rather as a set o f j u n c t i o n s i n f lows , an inter-modal transfer and control point i n the movement o f people, goods, f inance and informat ion. T h e sources and destinations o f the f lows are frequently beyond the authority and even the k n o w l e d g e o f governments. T h e y are also subject to unpredictable f luctuations, so that c i ty management needs to be both complete ly rel iable and f lexible (Harr is , 1994). Instead o f manufactured goods, the post industrial metropol is/world c i ty makes and deals i n f inanc ia l products for a g l o b a l marketplace. The greatest cities o f the m o d e r n w o r l d can be seen f r o m outside as nodes i n the g lobal marketplace, and f r o m w i t h i n as urban c o m m u n i t i e s and labor markets (Sassen, 1991). 66 T h e emergence o f a f u l l y integrated w o r l d manufacturing system i m p l i e s that an increasing p r o p o r t i o n o f the world 's output w i l l be consumed far f r o m where it was produced. T h i s w i l l continue p o s s i b l y to accelerate the post-1950 trend for international trade to expand faster than product ion. T h e f inal output increasingly becomes no more than the assembly o f inputs made i n m a n y countries. S l o w e r w o r l d growth rates and recessions have not reduced this trend, nor the increasing dependence o f developed countries u p o n supplies for manufactured goods 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 iscuss ion o f soc ia l and e c o n o m i c impacts o f g lobal izat ion, Sassen states that the n e w l y emergent f inanc ia l services complexes are destabi l iz ing their host cities domest ica l ly oriented sectors, p u s h i n g f i rms i n l o w profit sectors into the netherworld o f the i n f o r m a l sector, and accentuating soc ia l po lar iza t ion o f r i c h and poor (Sassen, 1994). A restructuring o f urban labor market is t a k i n g place. There is a general shift towards casual and l o w wage w o r k or no w o r k at a l l . She stresses that w o r l d c i ty status is leading to the b i p o l a r i z a t i o n o f the labor market that ensues f r o m an e c o n o m y based o n advanced services. T h e burgeoning i n f o r m a l e c o n o m y i n 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 migrants, but also f r o m the character o f p r o d u c t i o n and demand w i t h i n the service-based urban economy, o u t l i n i n g the potential sources o f instabi l i ty 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, and locat ion choices o f manufacturing as the u n d e r l y i n g causes o f l o c a l prosperity , 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 world 's largest urban agglomerations, and it is the most urbanized, industr ia l ized and affluent c i ty i n B r a z i l . It consists o f 39 m u n i c i p a l i t i e s (see F i g u r e 3.1), w i t h Sao P a u l o C i t y ( S P C ) be ing the largest. T h e r e g i o n registered an average annual growth rate nearly 5 per cent f r o m the 1960s u n t i l the 1980s ( M a r t i n e , 1992). I n the last two decades, growth has s l o w e d to 1.5 percent i n the c i ty o f Sao P a u l o and to 3.5 percent i n the periphery ( L e i t m a n n , 1992). T h i s is the result o f a convergence o f factors such as the e c o n o m i c cris is p r o v o k e d by the O P E C o i l rises, the nat ion 's fore ign debt, the development o f other nat ional e c o n o m i c poles, and increased land prices i n the m a i n industr ia l centres. 68 Limit of sub-region Municipal Limit kilometres 20 5 10 Itapevi 25 Mogi das Cruzes 11 Jandira 2G Susano 12 Taboao da Serra 27 Poa 13 Itapecirica da Serra 28 ttaquaquecetuba 14. Ernbu 29 Ferraz de Vasconcelos 15. Ernbu-Guacu 30 Guararerna 1. Sao Paulo 1G Juqurtiba 31 Salesopolis 2. Osasco 17 Sao Lourenco da Serra 32 Biritiba Mirim 3. Garapicuiba 13 Santo Andre 33 Guarulhos 4. Barueri 19 S. B. do Gampo 34 Aruja 5. Cajamar 20 S. G. do Sul 35 Santa Isabel G. Santana de Pamaiba 21 Maua 3G Franco da Rjocha 7. Pirapora do Born Jesus 22 Diadema 37 Mairipora 3. Cotia 23 Ribeirao Pires 3S Caieiras 9. Vargern Grande Paulista 24 Rio Grande da Serra 39 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 by the year 2 0 0 0 . T h i s w i l l m a k e it the second largest c i ty 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 per capita i n c o m e was approximate ly 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 metropol i tan areas. H o w e v e r , at the same t ime, nearly 30 percent o f its labour force was earning salaries o f less than U S $ 2,000 a year, l i v i n g i n extremely poor condit ions, and l a c k i n g the most basic urban infrastructure ( E d e l , 1989). T h i s picture has not i m p r o v e d very m u c h i n the last decade, and the eventual d i m i n i s h i n g 69 i n f l u x o f migrants has not been accompanied by improvement o f urban condi t ions , as a s ignif icant number o f the residents s t i l l l i v e b e l o w the poverty l ine. T h e S P M A is the center o f the B r a z i l i a n economy, the largest industr ia l po le 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 populat ion, the S P M A accounts for about 18 percent o f the gross domest ic product , 31 percent o f the industr ia l domestic product, and 25 percent o f the industr ia l labour force ( L e i t m a n n , 1992/Sao P a u l o State Government , 1990). Industr ia l izat ion and the process that has transformed Sao P a u l o into a huge metropol is 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 was introduced 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 product ion profits to the manufactur ing industry. , F o r e i g n capital injections i n the automobile industry between 1955-60 gave Sao P a u l o industr ia l i zat ion further m o m e n t u m , pushing manufacturing to 42 percent o f nat ional output i n 1970 (Schiffer, 1998) Sao P a u l o l ies i n the southeast o f B r a z i l , s ixty ki lometers f r o m the A t l a n t i c coast. T h e c i ty is the central point i n the narrow belt o f regional urbanizat ion and concentrated p o p u l a t i o n that stretches nearly two thousand ki lometers N o r t h and South a long the coast (see F i g u r e 3.2). S o i l qual i ty , c l imate , topography, ra infa l l and access to coastal points have favored e c o n o m i c development and urban growth w i t h i n this zone, part icular ly i n the reg ion surrounding Sao P a u l o . 70 Inhabitants / km' '•'•<] less than iOOto j.00 | j J.ttl to 2J.00 ™ l r T T 2J.01 to 100.00 more than 100.00 F i g u r e 3.2 — B r a z i l : Populat ion Density Source: IBGE/IPT 1995 T h e B i l l i n g s and Guarapiranga Reservoirs are extensive art i f ic ia l lakes that were created for water supply. T h e y took advantage o f the sharp drop i n e levat ion to produce the p o w e r necessary for i n i t i a l industr ia l i zat ion 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 most inaccessible parts o f the coastal escarpments. Its preservat ion 71 constitutes one o f the major challenges fac ing any attempt to m i n i m i z e the environmenta l consequences uncontro l led urban growth ( 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 and Tamanduatei R i v e r s are the m a i n waterways crossing the S P M A . T h e ci ty grew o c c u p y i n g the relat ively open and flat va l leys , l o w m o u n t a i n crests and surrounding h i l l s , through the incorporat ion o f hundreds o f s m a l l subdiv is ions , wi thout 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 r idge l ines. Sao P a u l o was founded i n 1554. B y 1874 its populat ion was o n l y 2 4 , 0 0 0 inhabitants; twenty-s ix years later, at the turn o f the century, the c i ty had g r o w n tenfold. In 1940 Sao P a u l o h a d 1,500,000 inhabitants (see F igure 3.3) and since then its dominant role i n the country's urbanizat ion has been clearly established. F r o m an i n i t i a l urban core around a Jesuit c o m p o u n d , Sao P a u l o expanded to incorporate surrounding s m a l l v i l lages l i n k e d by m a i n waterways and other transportation corridors. U n l i k e m a n y metropol i tan 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 grew f r o m the gradual integration o f settlements at the periphery, f o r m i n g a conurbat ion. A n unorganized pattern o f streets and discontinuous development generated by 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 farmland were the m a i n characteristics o f the i n i t i a l urban development o f the c i ty ( V i o l i c h , 1987). Later settlement f o l l o w e d a more consistent pattern o f streets w i t h i n a standard g r i d system, para l le l and perpendicular to the slopes to facilitate drainage, but w i t h no interconnect ion. T h e major transportation routes f o l l o w e d ridgelines and va l ley 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 wel l -de f ined inner core is occupied w i t h high-density residences (skyscrapers), p r i m a r y shopping faci l i t ies , p u b l i c b u i l d i n g s , and the p r i n c i p a l business offices. T h e industr ia l belt i n i t i a l l y stood close to the inner core, but later was extended a long the va l leys o f the Tiete , Tamanduate i and Pinheiros R i v e r s , served by r a i l l ines. Later , large-scale industries and manufacturers tended to locate themselves farther f r o m the central area, towards major routes leading to the port o f Santos (Sao Bernardo do C a m p o , Santo A n d r e , Sao Caetano, etc.), northward a long the Para iba V a l l e y , (Guarulhos , P o a , etc.) and recently to the west towards the 73 hinter land o f the state (Jundia i , C a m p i n a s , etc.). L i g h t industry, however , can be f o u n d spread between l o w e r - i n c o m e residential and c o m m e r c i a l areas throughout the S P M A . Clusters o f affluent neighborhoods, c o m m u n i t y faci l i t ies, large c o m m e r c i a l developments and sophisticated office complexes as w e l l as major retailers and shopping centers are scattered through this intricate urban fabric ( V i o l i c h , 1987). Three groups o f interrelated factors have contributed to the transformation o f this i n l a n d , elevated urban site, into a gigantic metropol is . First , it was the temperate c l imate , favorable site and transportation l inkages that helped the city. T h e second factor to affect Sao P a u l o g r o w t h was the coffee b o o m that created capital for industry and attracted foreign immigrants . T h i r d l y , it was the c o m b i n a t i o n between industr ia l izat ion (facil itated by i m m i g r a n t workers and entrepreneurs), the a v a i l a b i l i t y o f r a w material and hydroelectr ic power, and a regional market for manufactures that transformed the c i ty into a metropol is ( R a b i n o v i t z , 1971). W i t h i n the nat ional arena, the c i ty is the urban result o f a process o f three m a i n nat ional development cycles over the last hundred years. T h e coffee export sector i n Sao P a u l o state expanded d u r i n g the last decades o f the 19 t h century and first decades o f the 2 0 t h century. G r o w t h o f an industr ia l area to support the expanding coffee e c o n o m y c o m b i n e d w i t h the c i t y ' s advantageous locat ion make it an important import-export c o m m e r c i a l center. A l s o , g r o w i n g waves o f E u r o p e a n immigrants gave Sao P a u l o a d ivers i f ied p o o l o f s k i l l e d labour for its g r o w i n g industries. 74 T h e second cyc le , def ined by consumer-goods import-subst i tut ion industr ia l i zat ion, 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 by the coffee e c o n o m y gave impulse to the ci ty . A v a i l a b i l i t y o f hydroelectr ic energy and good transportation connect ions w i t h the interior o f the state were addit ional benefits. A th i rd phase took place after W W II, and especial ly after the 1950s. E c o n o m i c g r o w t h was led b y expansion o f capital and durable consumer goods industr ia l sectors. T h e S P M A became the spatial focus o f changes i n the structural out look o f the country w i t h i n the B r a z i l i a n developmentalist 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 migrant f lows have been decis ive i n the area's growth, as s h o w n i n F i g u r e 3.4. T h e role o f these f lows has been fundamental i n the demographic growth process o f the metropol i tan area, part icu lar ly i n Sao P a u l o , re inforc ing the h i g h l y concentrated development i n the S P M A region. T h i s g r o w t h came to a halt i n the late 1970s. C o m p a r e d w i t h early post-war growth, the 1980s have come to be k n o w n as "the lost decade". T h e B r a z i l i a n economy suffered serious decl ine after decades o f re lat ively h i g h e c o n o m i c growth. 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 levels o f o i l importat ion at a very expensive price conversed w i t h a sudden rise i n international interest rates to unexpectedly increase i n B r a z i l ' s debt. A t the same t ime, B r a z i l ' s ab i l i ty to pay o f f the debt dec l ined because o f the g lobal 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 Flows 1950-1980 Source: IBGE/IPT, 1995 Consequent ly , B r a z i l experienced an economic crisis o f unprecedented proport ions. T h e poor, especia l ly 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 , in f la t ion , recession and r i s i n g u n e m p l o y m e n t brought about an impover ishment o f the ci ty . S l u m areas (favelas) and tenement houses (cortigos) m u l t i p l i e d , spreading pockets o f soc ia l and urban poverty and r a p i d l y o c c u p y i n g suburban areas. 76 I n 1973, about one percent o f the populat ion 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 was instal led i n more than 700 favelas (Secretaria d a Habi tacao 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). Recent inf lat ion control has brought l i tt le i m p r o v e m e n t for the m i l l i o n s offavela and squatter dwel lers , because the f ramework o f endemic u r b a n poverty has not changed. Jobs, schools, and hospitals are insuff icient and basic infrastructure services (water, sewage, transportation, etc.) are neglected, deteriorated or non-existent. The Global Connection Since the end o f W W II, g r o w i n g decentral ization o f the industr ia l product ive apparatus has m a r k e d international e c o n o m i c relations between the central capitalist countries and the w o r l d periphery. T h e o l d pattern that concentrated on manufacturing has been changed 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 industr ia l ized countries l i k e B r a z i l are important as centers for the accumulat ion o f transnational capital . A l t h o u g h the largest part o f direct investment by developed nations is absorbed internal ly between the advanced capitalist economies , b y the mid-1970s , access to cheap labour and re lat ively large internal markets i n peripheral economies was an important factor i n capitalist compet i t ion i n a w o r l d scale. 'Joint ventures' and direct investment i n n e w l y industr ia l ized countries became attractive, p r o v o k i n g great changes to the soc ia l and e c o n o m i c structures o f these nations. T h u s , their dependent industr ia l i zat ion made t h e m vulnerable to fluctuations i n the central economies o f the w o r l d system (Dorraj , 1995). 77 'Periphery' is not a homogeneous sphere regulated by a r igorous l a w o f 'development o f underdevelopment ' , and the transnationalization o f product ive capital was a lways m a r k e d by an increasing heterogeneity w i t h i n the system's periphery. B r a z i l stands out as a s ingular case i n the n e w international d i v i s i o n o f labour. In addi t ion to deve loping a number o f industr ia l sectors w i t h the heavy i n v o l v e m e n t o f foreign capital , it has created an advanced nat ional intermediate goods sector w i t h the assistance o f the state, as w e l l as a re lat ively large internal market ( 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 made B r a z i l ' s balance o f payments worse. D u r i n g periods o f l o w demand for export products and o f h i g h interest rates i n the international f inancia l system, importat ion o f machinery and equipment to c o m p l e m e n t the nat ional p r o d u c t i o n aggravated the imbalance o f payments. F o r the most part, direct investment by mult inat ionals was geared to support domest ic capital through direct f inancing . C o n c o m i t a n t l y , infrastructure, tax incentives and other measures h i g h l y attractive to fore ign capital were implemented. The state was forced to invest h e a v i l y i n energy, transportation and p r i m a r y industries (steel, cement etc.) to create general infrastructure condit ions to make f u l l use o f industr ia l capital i n the transnational ized sectors. T h u s p u b l i c expenditure and consequently inf lat ionary pressures and 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 reg ion, w h i c h expanded its nat ional importance ( C a n o , 1990). 78 S k e w e d structure o f i n c o m e distr ibut ion part ia l ly inherited f r o m the previous p e r i o d and aggravated by the m i l i t a r y coup o f 1964 was also responsible for the n e w structure o f p r o d u c t i o n dominated by durable consumer goods for the domestic market. T h e transnational ized sectors, i n spite o f increased product iv i ty that created industr ial expansion inf luenced wage deterioration, extended w o r k i n g hours and precarious w o r k i n g condit ions. T h e capi ta l i sm be ing forged was undoubtedly technolog ica l ly advanced, but required a repressive regime i n order to more ef f ic ient ly extract surplus value ( 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 exploi ted by accumulat ion . Transportat ion, health, security, educat ion and hous ing , as col lect ive c o n s u m p t i o n goods to be p r o v i d e d through state m e d i a t i o n were also sacrif iced. T h e government, guaranteeing urban infrastructure and services to corporations to facilitate the r a p i d c i rcu la t ion o f capital and its v a l o r i z a t i o n neglected total ly the p r o v i s i o n o f a l l other needs o f the urban labour force. U r b a n i z e d areas o f the S P M A expanded by a factor o f nine between m i d - 1 9 5 0 and m i d - 1 9 8 0 . D u r i n g the 1970s alone, 480 square ki lometers o f peripheral areas were wi thout basic u r b a n services ( K o v a r i c k , 1986). Speculat ive land h o l d i n g associated w i t h periphery g r o w t h meant dramatic spatial segregation for the w o r k i n g class. T h e h i g h rental value o f urban real estate became an obstacle to the settlement o f l o w - i n c o m e groups i n better-located and w e l l - s e r v i c e d areas. T h e y were t h r o w n into distant areas, squatter settlements, cortigos or favelas. T h i s urban pattern has become standard i n recent decades. A l t h o u g h variat ions exist a m o n g types o f h o u s i n g for workers , overa l l condit ions are extremely poor. A t the same t ime, they ef f ic iently 79 reduce the average soc ia l cost o f the reproduct ion o f labour, and p o s i t i o n Sao P a u l o as a metropol is 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 populat ion growth o f Sao P a u l o metropol i tan area has been m i g r a t i o n f r o m other regions, both 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 country (especial ly f r o m the Northeast, the poorest reg ion o f B r a z i l since the th i rd phase o f the development process. D u r i n g decades o f intense growth, migrants have contributed an estimated 70 or 80 percent o f populat ion increase. T h e y constituted an army o f cheap labour, w h i c h made poss ib le the p r o d u c t i o n o f a large surplus without concern for condit ions o f e m p l o y m e n t , h o u s i n g or basic welfare. E a r l y i n the industr ia l izat ion phase, it was acceptable for major industries to house employees i n 'workers' estates' bui l t near the factories o n very cheap land. H o w e v e r , intensi f ied industr ia l g r o w t h and reduced need to tie workers to a specif ic 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 employers. B y then, companies had ceased to incorporate costs o f hous ing and transport i n wages. Costs o f hous ing (purchase, rent, maintenance) and o f transport were transferred to the workers , and costs o f basic urban services, where existent, to the government ( K o w a r i c k , 1994). L a n d speculat ion is responsible for one o f the most pecul iar characteristics o f the S P M A urban sprawl . Property speculators establishing n e w sites for hous ing estates far f r o m the ex is t ing urban 80 occupat ion left areas o f empty land between the n e w nucleus and the serviced parts o f the ci ty . A s infrastructure was extended to the n e w site, the value o f the empty land w o u l d often increase before it was occupied. I n addi t ion to enr iching speculators, this p r o v o k e d a n extremely unorganized pattern o f l a n d use and led to the growth o f districts even further f r o m the centre ( K o w a r i c k , 1977) A n o t h e r component o f the disorderly process o f urban development was g r o w t h o f industry first a long the r a i l w a y l ines surrounding the c i ty , and later, around the m a i n h i g h w a y s leading to the d is t r ibut ion centre. A s n e w industr ial centres developed, each o f t h e m created its o w n periphery. People w h o l i v e d far f r o m work-centres were forced to travel l o n g distances every day. T h i s group o f commuters increased rapid ly , fostering the growth o f dormitory towns, l i tt le m o r e than camp-sites w i t h no basic amenities w h i c h , i n t ime, crysta l l i zed the k i n d o f urban occupat ion found i n most o f the metropol i tan area ( V i o l i c h , 1987). These aspects are intr ins ica l ly 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 industr ia l i zat ion, w i t h shacks erected i n areas close to the market for u n s k i l l e d labour. T h e favelas usual ly occupy empty land, private or p u b l i c , unsuitable for legal construct ion 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 prone to f l o o d i n g ) , or are reserved for future p u b l i c use (green areas, p laygrounds, etc.). O n c e the value o f private l a n d goes up, shantytown dwel lers are pushed out. In 1987, 65 percent o f the s lums were situated o n p u b l i c land, 18 percent o n private land and 9 percent o n land w i t h m i x e d ownership ( M a r i c a t o , 1994). Those established o n p u b l i c land have had more tenure security, but at t imes, especia l ly 81 d u r i n g the 1960s, o f f i c ia l effort to do away w i t h the shantytowns intensif ied, i n part icular w i t h the ones near m i d d l e class neighborhoods. N o w a d a y s , the majority o f s lums are located i n the interstices o f the urban fabric, near h ighways and viaducts. T h e y are both the cause and the v i c t i m s o f the urban environment deterioration. O f f i c i a l efforts to resolve the housing deficit i n Sao P a u l o have thus far been ineffectual. D u r i n g various periods p u b l i c estates or social housing have been bui l t , o n cheap and distant land, w i t h m i n i m a l and faulty basic infrastructure, most ly without any c o m m u n i t y services or re l iable transportation. In 1991, an estimated one m i l l i o n people were l i v i n g i n shantytowns; 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 housing, and another 3 m i l l i o n l i v e d i n land developments {loteamentos) wi thout the m i n i m u m legal requirements or urban infrastructure faci l i t ies (Secretaria d a Habitacao 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). These settlements, located i n the periphery far f r o m c o m m u n i t y services and transportation, occupy more than 300 m i l l i o n square meters o f land. Here , the w o r k i n g class p o p u l a t i o n has bui l t their o w n houses. T h e y do not have title to the land, a l though they m a y have bought and p a i d for it at market prices f r o m speculators ( M a r i c a t o , 1994). T h e r a p i d , unorganized, i l l ega l and h i g h l y segregated process o f urban expans ion represented a severe burden u p o n basic urban infrastructure, f r o m sewage c o l l e c t i o n and treatment to urban transportation. A l t h o u g h 65 percent o f the S P M A is connected to the sewer system, o n l y 40 percent o f sewage receives any treatment, waste water treatment plants process less than 26 percent o f the region's f low. A n impressive 92 percent o f the residents are served w i t h p i p e d 82 water; however , because o f g r o w i n g demand and p o l l u t i o n problems, supply is subject to shortages or p r o g r a m m e d dai ly cuts (rationing) that affects 3,5 m i l l i o n people ( 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 problems o f urban transportation. F irs t , activit ies and h o u s i n g are spatial ly segregated by i n c o m e groups, w i t h the majority o f the w o r k i n g class l i v i n g i n the periphery and spending three to four hours i n da i ly transport journeys . Second, the development m o d e l o f the last 30 years has been strategically l i n k e d to the automobi le industry, 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 and subway systems. I n 1992, buses were responsible for 60 percent o f the passenger trips taken i n the c i ty , transporting 6.5 m i l l i o n passengers per day, i n 9,700 vehic les . A t the same t ime, the subway and r a i l w a y systems c o m p r i s e d only 41 k i lometers , w h e n other u r b a n agglomerations o f s i m i l a r size t y p i c a l l y have 200 to 400 k m ( G r e g o r i , 1992). T h e number o f private automobiles has been o n the rise since the 1960s, p r o v o k i n g chaotic and congested traffic condi t ions for the S P M A p o p u l a t i o n 9 . H e a l t h and educat ion service del ivery i n the S P M A is better, both i n aggregate terms and w h e n compared w i t h de l ivery o f these services for the country as a w h o l e . In a d d i t i o n to the search for 83 e m p l o y m e n t , health and education opportunities have been strong mot ivat ions to migrants c o m i n g f r o m poorer parts o f the country, even though these services are stretched to the l i m i t , and by international standards are far f r o m ideal . P o o r transport p l a n n i n g contributes to a h i g h rate o f vehicular deaths. It is estimated that Sao P a u l o traffic k i l l s about 6,000 people annual ly and wounds 77 ,000, l e a v i n g 60 percent w i t h permanent d isabi l i ty . Traf f ic accidents cost the country more than U S $ 5 b i l l i o n annual ly , between 20 and 25 percent o f this is i n Sao P a u l o (O Estado de Sao P a u l o , October , 1995). M a n y diseases are associated w i t h environmental problems. P o o r water qual i ty , o v e r c r o w d i n g , and substandard hous ing can be l i n k e d to diarrhea, tuberculosis , cerebrospinal m e n i n g i t i s , schistosomiasis and 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, more than one year b e l o w the national average o f 65.6. Infant morta l i ty averages 37/1000 l i v e births, w e l l b e l o w the national 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 and free between the ages o f 5 to 14, i n 1988 about 90 percent o f the c h i l d r e n were enrol led at school , but less than 25 percent were expected to f in ished the 8 t h year ( E d e l , 1989). The m a i n problems are widespread poverty and deficient urban services: schools are unevenly distributed, forc ing students to travel l o n g distances to school . T h i s , together w i t h household poverty, results i n h i g h transience and 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 funct ion o f health and educational systems i n the S P M A is beset w i t h problems. M o s t schools and health centres are i l l equipped and personnel receive l o w wages, resul t ing i n a l o w qual i ty o f service (Faria , 1991). Sao P a u l o ' s air contains excessive levels o f carbon m o n o x i d e , ozone and particulate. I n 1989, health warnings 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 250 days. A b o u t h a l f o f this p o l l u t i o n comes f r o m industries. It was estimated i n 1980 that approximate ly 6,200 industries were sources o f p o l l u t i o n , and that 15 percent o f these had a h i g h l y tox ic potential ( L e i t m a n n , 1992). N e i t h e r government nor industry shows concern for environmental consequences o f r a p i d industr ia l i zat ion. I n fact, the government v i e w e d this negligence as an essential part o f the pragmatic B r a z i l i a n m o d e l o f development. U r b a n sewage and industr ia l wastewater seriously affect the three r ivers cross ing the metropol i tan area, as w e l l as l o c a l reservoirs. T h e rivers are almost total ly d e v o i d o f o x y g e n . H i g h levels o f lead and mercury have been detected. I n addi t ion, ground water and coastal waters are s h o w i n g degradation l i n k e d to industr ial emissions f r o m the S P M A (Jacobi , 1994). There is a d a i l y p r o d u c t i o n o f approximately 22-ton o f s o l i d waste, one t h i r d generated b y the industries. Throughout the metropol i tan area, 80 percent o f wastes are handled b y the o f f i c i a l system; o f this, 75 percent are considered adequately or properly disposed (according to the P a n A m e r i c a n H e a l t h Organizat ion) . N o specif ic 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 20 percent, at least, o f waste going unprocessed each day, health and sanitation 85 problems are inevitable, special ly i n the l o w - i n c o m e neighborhoods and areas outside the f o r m a l c i ty ( L e i t m a n n , 1992). Disasters result ing f r o m inappropriate land use have increased i n both frequency and intensity. Steep h i l l s ides and areas prone to f looding have been o c c u p i e d b y l o w - i n c o m e settlements. In 1989 there were 783 s lums located i n water basins, 385 i n erosion-prone areas and 30 o n or near garbage dumps. F l o o d i n g is very c o m m o n dur ing the summer, w h e n heavy rains occurs, 468 areas have been ident i f ied as at r isk f r o m per iodic f l o o d i n g affecting approximate ly 75 ,000 people , most o f them s l u m dwellers. Systematic destruction o f green areas and a deficient urban drainage system are major causes o f these human-exacerbated natural hazards ( M a r i c a t o , 1994). A n addit ional p r o b l e m concerns lands that protect the water supply catchment areas o f the S P M A . U n t i l the 1980s, these areas were reasonably managed, but w i t h the e c o n o m i c cris is o f the last decade, squatting has resulted i n an estimated 800,000 people o c c u p y i n g the watersheds. T h i s has accelerated degradation o f the Guarapiranga reservoir, the source o f d r i n k i n g water for nearly 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 populat ion. T h e level o f industr ia 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 growth over the same per iod . 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 industr ia l product ion , wage levels are very l o w . C o m p a r a t i v e studies o n l i v i n g standards show that a l though B r a z i l is one o f the countries i n the 86 capitalist per iphery w h i c h industr ia l ized the most after W W II, it is also an indisputable leader o f soc ia l and e c o n o m i c inequalit ies ( 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 inf lat ion has been somewhat control led i n the last two years, l o c a l i z e d e c o n o m i c g r o w t h indicators s h o w that recession s t i l l prevai ls . T h e importance o f the so-cal led ' i n f o r m a l e c o n o m y ' as the o n l y v iable 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 expanding. People 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 overal l deterioration i n labour market condit ions was also detected i n the same per iod: 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 outsourcing, and 14 percent f r o m non-registered-employee j o b s (Schiffer, 1998) T h e metropol is is the headquarters o f b i g capital and the site where a vast contingent o f workers is concentrated, and socia l contradictions here are more acute. Struggles and confl icts are more numerous here than 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 and unsafe environment that is frequently portrayed i n the m e d i a (Veja , June 1996). S o m e o f the conf l ic t is endemic to B r a z i l i a n society: class, gender and especia l ly race issues have been present since c o l o n i a l t imes. M o r e recent e c o n o m i c development has exacerbated these d imensions , and has made the disparity o f weal th distr ibut ion and socia l benefits m o r e acute. A s A r m s t r o n g and M c G e e (1985) point out the growth o f cities i n capital a c c u m u l a t i o n and generation o f dependence, structural inequal i ty and poverty is ingra ined i n the larger history o f unequal relations already exist ing 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 was approximate ly 1000 people per day ( S h i d l o , 1990). T h e push o f rural displacement 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 ty contributes s igni f icant ly to the e x p l o s i o n o f the S P M A . 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 annual g r o w t h rate i n the S P M A is s t i l l two percent, the current m i g r a t i o n rate is smaller. T h e opening o f the A m a z o n i a n frontier for m i n i n g , agriculture, forestry, and major infrastructure programs such as roads, and hydroelectr ic projects is one explanation for the s l o w i n g or even reversal o f m i g r a t i o n . T h i s e c o n o m i c act ivi ty has d r a w n a large number o f migrants , part icular ly m e n i n search o f higher p a y i n g jobs . Unfortunately , these j o b s are part o f a quest for short-term profits , and therefore general ly o f an unsustainable nature. T h i s c o u l d mean that m i g r a t i o n to the major B r a z i l i a n urban centres might s i m p l y be deferred for a number o f years. METROPOLITAN GOVERNMENT IN SAO PAULO B r a z i l i a n administrat ive institutions are organized w i t h strong powers concentrated at the federal leve l . T h i s has led to very efficient del ivery mechanisms for urban p o l i c i e s consistent w i t h the favoured development m o d e l . The constitution establishes the powers and rights o f federal and m u n i c i p a l levels , l eav ing to state governments the r e m a i n i n g responsibi l i t ies , i n c l u d i n g those for metropol i tan areas. M e t r o p o l i t a n legis lat ion deals w i t h m u n i c i p a l interests as expressed b y the mayors o f the munic ipa l i t i es that make up the metropol i tan 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 ex is t ing disparity a m o n g them, i n terms o f territorial extension, populat ion, and a l locat ion o f f inancia l and administrat ive 88 resources, has been a source o f administrative di f f icult ies , part icular ly w i t h i n the 39 m u n i c i p a l i t i e s that comprise S P M A . S o m e metropol i tan pol ic ies have been implemented to address these di f f icul t ies , especia l ly those related to the environment. I n spite o f an expl ic i t guarantee o f m u n i c i p a l autonomy i n the federal const i tut ion - 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 inanc ia l resources o f munic ipa l i t ies are not a lways adequate for their metropol i tan shared responsibi l i t ies . M u n i c i p a l responsibi l i t ies include: adopt ion o f their o w n charter; e lect ion o f a m u n i c i p a l government (counc i l and mayor) ; inst i tuting four taxes reserved for t h e m by the federal const i tut ion, i n c l u d i n g tax assessment, l e v y i n g and co l lec t ion; the ra is ing o f revenue f r o m other sources (fees, services charges, special assessment or improvement charges, loans); part ic ipat ion 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 apply 25 percent o f the revenues f r o m m u n i c i p a l and shared taxes to education; organizat ion and administrat ion 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 pract ica l terms coordinat ion o f m u n i c i p a l services a m o n g the three levels o f government presents major problems, especial ly i n deve loping strategies for resource m o b i l i z a t i o n . Services such as educat ion at a l l levels, health care, recreation, culture, c h i l d and o l d age care, and soc ia l assistance, m a y be p r o v i d e d by a l l three government levels, leading to d u p l i c a t i o n or insuf f ic iency o f resources through lack o f integration.. T h e p r o v i s i o n o f urban and feeder roads, as w e l l as urban transportation, are distr ibuted between federal, state and m u n i c i p a l administrat ion, causing problems w i t h def in ing responsibi l i t ies for 89 their construct ion and maintenance. Garbage c o l l e c t i o n and disposal , p u b l i c markets , open-air fairs, slaughterhouses and street l ight ing are run by the m u n i c i p a l i t i e s ; telephone and electr ic i ty services are m o s t l y a federal responsibi l i ty ; water and sewers are r u n by state companies that were funded by federal loans to i m p r o v e service del ivery through the N a t i o n a l Sanitat ion System. H o u s i n g is m a i n l y p r o v i d e d by 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 social hous ing programs, but whose m a i n role has been to channel private-sector money 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 extremely s m a l l , H F S restricts its act ivi ty to p o l i c y - m a k i n g and regulat ion. S o m e states and 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 popular housing projects (cooperatives, self-help, etc.) but more 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 condi t ions o f s l u m areas, and o n p r o v i d i n g infrastructure for housing projects undertaken by either the private sector or the state government. Nevertheless , m u n i c i p a l autonomy means that, m u c h o f infrastructure and soc ia l h o u s i n g 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 power and the c o m m i t m e n t o f m u n i c i p a l authorities towards the betterment o f the poor. I n practice, attitudes towards development 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 embel l ishment o f a c i ty 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 approach (Cheema, 1993). U n d e r pressure o f deal ing w i t h c o m p l e x urban issues i n cr i t ica l stages due to industr ia l i za t ion and its consequences, m i l i t a r y rulers created several federal institutions to manage urban 90 development. T h e Federa l Service 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, had authority to enforce the national requirement for comprehensive 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 conta in and control urban growth. I n 1973, S E R F A U was dissolved, and its functions were d i v i d e d between the N a t i o n a l H o u s i n g B a n k ( B N H ) and 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 and U r b a n P o l i c i e s ( C N P U ) . C N P U assumed responsibi l i ty for def in ing national urban p o l i c y , and acts as intermediary between l o c a l and federal government w i t h regard to the adminis trat ion o f metropol i tan regions ( V i o l i c h , 1 9 8 7 ) . I n 1967, the E x e c u t i v e G r o u p for Greater Sao P a u l o ( G E G R A N ) was created, the first metropol i tan 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 metropol i tan area, the federal government, professional associations and state government were represented. Its task was to oversee and coordinate the a l locat ion o f state investments w i t h i n the S P M A , through comprehensive plans and specif ic 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 Comprehens ive D e v e l o p m e n t ( P M D I ) was completed. A s w e l l as establ ishing directives for the entire metropol i tan area, it conce ived and r e c o m m e n d e d creat ion o f an intergovernmental agency to direct growth i n the metropol i tan 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 ia 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 was created as coordinator and executive o f the metropol i tan systems, through 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 control land use and occupancy i n the metropol i tan reg ion, w i t h part icular emphasis o n the protection o f water resources (Cheema, 1993). S ince its incept ion, E M P L A S A ' s major challenge has been to establish an acceptable integration between government agencies at the m u n i c i p a l level (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, culture, p u b l i c w o r k s and p u b l i c roads), state leve l (corporations for environmental protection, water and sewage, p l a n n i n g , electric energy department), and national leve l (national association o f munic ipa l i t i es and environment) . These agencies together w i t h labor unions, professional associations, N G O s , c o m m u n i t y groups, and the legal and legis lat ive system, are stakeholders i n the process o f def in ing and i m p l e m e n t i n g urban metropol i tan pol ic ies . T h i s has been a great challenge for E M P L A S A and for m u n i c i p a l and state secretariats w h i c h have been under pressure to d isplay a tougher attitude t o w a r d environment protect ion i n the S P M A ( M a r i c a t o , 1994). Unfortunate ly , due to p o l i t i c a l p r o b l e m s i n the state government 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 and c i v i l society. SAO PAULO IN TRANSITION T h e transformation o f S P reflects the confluence o f rapid urbanizat ion, industr ia l i zat ion, and the g r o w i n g importance o f services i n the economy. Changes i n the occupat ional structure, restructuring o f labor markets and emergent soc ia l inequal i ty since the m i d - 1 9 4 0 s are reflections 92 o f the pace o f industr ia l izat ion and the insert ion 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 part icular ly signif icant. F i rs t , a l though changes i n occupat ional structure s ignify modernizat ion, they also generate greater divers i ty and have l e d to increased socia l inequal i ty . Second, one can no longer useful ly identif ies a homogeneous w o r k i n g class based around industry. There has been a dramatic decl ine i n the salaried w o r k f o r c e and g r o w t h i n alternative labour modes ( informal , se l f -employed and non-remunerated labour). T h i r d , this informalization is not s i m p l y a f o r m o f surv iva l strategy; rather, it is part o f a pattern o f s ignif icant changes i n labour force ut i l i zat ion. 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 importance as the axis around w h i c h social 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 no 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 ava i lab i l i ty o f an immense supply o f cheap labour has been a major factor for r a p i d urban g r o w t h and the persistence o f h i g h levels o f poverty, w h i c h was concomitant w i t h the expansion o f weal th 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 soc ia l contrasts and made the urban infrastructure precarious. A l s o , i n face o f serious damage already caused and o n g o i n g deterioration, the environmental impl icat ions o f Sao P a u l o ' s transformation cannot be emphasized enough. I n more recent years, however, this pattern o f intense growth has s lowed. Increasing industr ia l deconcentration has spread industries towards both the interior o f the state and the adjacent 93 states, especial ly to the South. D i s e c o n o m i e s o f agglomerat ion have emerged i n the metropol i tan area o f Sao P a u l o , v i s i b l e i n the price o f lots and rents, i n environmental and congest ion controls , and i n wages increases ( D i n i z , 1994). Decentra l i za t ion was an objective o f government intervention: p u b l i c investment, f i sca l incentives, construct ion 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 through transportation and c o m m u n i c a t i o n infrastructure, w h i c h has contributed enormously to the o n g o i n g restructuring o f the geography o f product ion. 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 growth, but it i n no w a y eases the already heavy burden o f urban problems o n the c i t y ' s p o p u l a t i o n and the environment. T h e chronic cr is is o f the B r a z i l i a n e c o n o m y affects the qual i ty o f l i fe i n the S P M A i n several and cumulat ive ways . U n e m p l o y m e n t is s t i l l rampant - unof f i c ia l estimate is around 2 0 percent o f the labor 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 labour relations. There is a d is turbing growth 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 urban economy. T h e number o f people w o r k i n g without legal registration is steadily r i s i n g , even amongst s k i l l e d workers . T h e occupat ional prof i le o f the labour force has changed: dur ing 1994-95, three out o f four j o b s avai lable i n Sao P a u l o were i n the service sector ( O E S P October 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 cr is is , but also because o f 94 industr ia l modernizat ion . T h e g r o w i n g use o f h i g h technology, management o p t i m i z a t i o n techniques and robot izat ion w i l l l i k e l y marginal ize a larger p o r t i o n o f the actual labour force. B a s i c a l l y , workers lack the means that c o u l d update their j o b s k i l l s , as educat ion and f inanc ia l support for retraining are not available. U r b a n v io lence and cr ime rates are o n the rise, registering numbers larger than N e w Y o r k and L o s A n g e l e s and b e c o m i n g the most tragic indicator o f the depth o f soc ia l cr is is . P a r t i c u l a r l y , the increased incidence o f offenses against property appears to be correlated w i t h r i s i n g u n e m p l o y m e n t and cost o f l i v i n g , factors that increase widespread poverty and the g r o w i n g desperation o f the most destitute port ion o f the populat ion. Sao P a u l o ' s prospects w i l l no doubt be affected by the decl ine o f e c o n o m i c act ivit ies that have reached the f i sca l base o f state and m u n i c i p a l governments. T h i s has already affected the performance o f p u b l i c services that rely o n employment expansion for their funding . A g e n c i e s responsible for h o u s i n g , soc ia l security, health and educational p r o v i s i o n have nearly col lapsed. 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 impress ive performance as an e c o n o m i c centre contrasts w i t h the levels o f inequal i ty and poverty that s t i l l p r e v a i l . T h e modernity and c o m p l e x i t y o f its industr ia l base, as w e l l as its f inanc ia l institutions are impressive , so is its differentiated c o m m e r c i a l network, some sophisticated services sub-sectors and the richness o f its cultural l i fe . H o w e v e r , the size o f its problems and its increasing ungovernabi l i ty , together w i t h the enormous amount 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 ty 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 ty o f Sao P a u l o alone w o u l d consume about U S $ 30 b i l l i o n - 12 t imes its budget at the t ime and one third o f the B r a z i l i a n foreign debt - just to overcome its most 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 economy has not been an u n e q u i v o c a l b less ing to S P M A . It certainly does not p r o v i d e for the needy o f deve loping societies. Therefore, it remains to be seen whether the current trend o f l o w e r inf la t ion and relative stabil i ty, strongly supported by the re-instal led democracy, w i l l last l o n g enough for the necessary soc ia l and e c o n o m i c reforms. These reforms need to be comprehensive enough to reduce at least part ia l ly , the impact o f international 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 metropol is i n the capitalist periphery, 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 soc ia l just ice and environmental quality. W i t h o u t p o l i t i c a l pressure and a greater i n f l u x o f international resources environment recovery w i l l r e m a i n a l o w pr ior i ty . Sao P a u l o c o u l d make use o f the ' international r e s p o n s i b i l i t y ' c l a i m e d by F i r s t W o r l d countries to obtain necessary f inancial resources for recovery and a m e l i o r a t i o n o f its urban condit ions. 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 not enough for the 96 c o m p l e t i o n o f basic projects necessary to update the infrastructure systems. I n addi t ion , loans are often t ied to solutions inappropriate to national technical capabi l i ty . M a r i c a t o ' s analysis o f changes o f investment priorit ies i n Sao P a u l o after the W o r k e r s Party adminis trat ion il lustrates this . C o m b i n e d w i t h the character o f loca l and metropol i tan administrat ive 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 real agent o f change. S o m e decis ions must transcend p o l i t i c a l concerns i f rel iable recovery o f urban systems is to be sustained. M o r e than anything else, environmental management must be p r i o r i t i z e d i n order to stop degradation and reverse p o l l u t i o n processes, and especial ly to protect waterbasin and the remnants o f the indigenous 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 R e c o v e r y P r o g r a m that i n face o f the condit ions discussed i n this chapter, represents a paradox: too s m a l l for m a k i n g real difference, but b i g enough to point i n the d irect ion towards a more integrated w a y to tackle S P M A urban environmental problems. 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 metropol i tan reg ion o f Sao P a u l o . It not o n l y outl ines p h y s i c a l aspects o f water sources, but also examines leg is lat ion responsible for issues o f u t i l i z a t i o n and preservation. A l t h o u g h a n e w legis lat ion is i n place, it w i l l take t ime for real i ty to catch up w i t h n e w j u r i d i c a l guidel ines, and for possible incompat ib i l i t ies to emerge between actual land uses and the n e w legis lat ion. It is important to analyze h o w the e v o l u t i o n o f watershed preservation laws has created the actual situation, w h i c h w i l l s igni f icant ly affect the outcome o f the Guarapiranga 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 protect ion must recognize that there has been conf l ic t a m o n g different interest groups, i n re lat ion to land occupat ion i n the catchment areas o f the m a i n water supply reservoirs o f S P M A . C o n f l i c t has been part icular ly strenuous i n the Southern r e g i o n o f S P M A , where the B i l l i n g s and Guarapiranga Reservoir are l o c a l i z e d near the Southern axis o f heavy metropol i tan industr ia l development. U n c o n t r o l l e d residential expansion - m a i n l y through i l l e g a l settlements, such as squatter settlements, l o w - i n c o m e c o m m u n a l households and other forms o f u n o f f i c i a l real estate 98 development - has been taking place i n the area, despite exist ing legal constrains c o n t r o l l i n g the l o c a l environment. T h e unof f ic ia l settlement process was fuel led b y an expanded labor demand f r o m a nearby industr ia l park, and also f r o m higher i n c o m e neighborhoods and 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 low-income/socia l hous ing programs i n other areas o f the c i ty and the lack o f development o f other j o b areas have aggravated the p r o b l e m . I n 1975, a specif ic "Water Resource E n v i r o n m e n t a l A c t " was added to ex is t ing z o n i n g laws and regulations. These measures, based o n a t o p - d o w n p l a n n i n g approach and far f r o m the l o c a l real i ty, l a c k e d inst i tut ional forcefulness and were insuff icient to control urban expansion. T h e g r o w i n g d e m a n d for residential land has also contributed to pressure to exc lude the reservoirs areas f r o m legal constraints. E x i s t i n g soc ia l confl icts have generated discuss ion a m o n g different interest groups - the p o p u l a t i o n , the technical p u b l i c sectors, c i ty p l a n n i n g professionals, landowners , entrepreneurs and others - i n support of, or against, increasing environmental and land use controls . T h e d y n a m i c process o f urban expansion and the real estate market took over, p u s h i n g the legal constraint objectives further f r o m the reality. H e n c e , the actual problems and environmenta l i m p l i c a t i o n s presented by settlement o f protected areas vanished i n the face o f conf l ic t re inforced by an exc lus ionary soc ia 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 metropol i tan region, this chapter describes the m u l t i p l e functions o f the reservoirs (water supply , sewage disposal , and 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, and the sanitation approach favoured b y professionals and p u b l i c bodies. Dif ferent approaches to the reservoir issue by different p l a n n i n g and p o l i c y groups are r e v i e w e d , i n l ight o f the conf l ict between v iews o f the c i ty as a c losed space - by stopping its expansion process - and as a d y n a m i c place o f socia l confl icts w i t h p o l i t i c a l mediat ions. T h e p u b l i c sector has had a m o n o p o l y o n decisions, part icular ly at the state leve l . T h e m i n i m u m role p l a y e d by l o c a l munic ipa l i t ies i n the d e c i s i o n - m a k i n g process illustrates the need to enlarge their responsibi l i t ies towards l o c a l populat ion needs and soc ia l conf l icts between environmental ists , professional and social groups. T h e o f f i c ia l d iscuss ion has emphas ized o n l y technica l aspects o f the reservoirs environmental problems, h i g h l i g h t i n g the non-existence o f popular input into environmental questions. I n addit ion, popular sectors l i k e l y channel their efforts towards other everyday surv iva l questions. L e g i s l a t i o n has been characterized by: emphasis o n legal constraints rather than 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 exist ing laws, against changes i n their contents; adaptation o f exist ing leg is lat ion to what happens (the land occupat ion real ity) through a p o l i c y o f sanctions or f iscal incentives. T h e aspects presented and discussed suggest three m a i n determinants to be po inted as major factors i n deal ing w i t h the S P M A watersheds: • T h e importance o f c i ty concepts and a broad v i s i o n o f the reservoir question; 100 • T h e importance o f opening up a broad participatory process to encompass the m a n y soc ia l sectors and their specif ic interests; • T h e divers i ty o f posit ions surrounding the legal aspects o f the issue. M o r e detai led i n f o r m a t i o n concerning legis lat ion (laws and decrees) and changes w i t h i n the p o l i t i c a l context o f the t ime w h e n the legis lat ion was implemented and changed 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 T h e c i ty o f Sao P a u l o has over f lowed its boundaries and become Greater Sao P a u l o , inst i tut ional ized by Federal L a w as Sao Paulo M e t r o p o l i t a n R e g i o n , i n the midst o f a general lack o f urban infrastructure and 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 and 63 percent had no sewer system, 66 percent o f streets were not paved and f r o m those, 76 percent d i d not have streetlights. In 1975, infrastructure was s t i l l deficient, w i t h 30 percent residents wi thout water and 60 percent without sewer system, and 60 percent o f streets were unpaved ( 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 populat ion growth, and general lack o f urban infrastructure were accompanied b y scarcity o f natural resources, especial ly water resources. I n 1975, the prognosis by state authorities regarding p u b l i c water c o n s u m p t i o n was already very disturbing: 101 "Presently, the demand for 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 do S u l and Juquia rivers originate 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 R e g i o n . T h e p r i n c i p a l between these rivers watersheds is the H i g h Tiete B a s i n , w h i c h consists o f the Tiete R i v e r and 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 bas in were almost total ly diverted for energy product ion. A t that t ime, 87 m 3 / s were be ing directed to the state energy corporat ion ( E L E T R O P A U L O ) generators i n Cubatao, l eav ing 3 m^/s to f l o w downstream (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 20 percent o f water resources was being used for p u b l i c consumpt ion, but the prognosis c i ted above 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 avai lable water resources w i t h i n the Tiete b a s i n and ne ighbor ing watersheds to provide 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 bas in were usable for p u b l i c c o n s u m p t i o n : 51 percent "...are unsuitable for consumption and leisure use due to the extremely high level of pollution " (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 hand, a substantial part o f the water resources usable for p u b l i c supply , the B i l l i n g s Reservo ir , was c o m p r o m i s e d by the d ivers ion o f the p o l l u t e d Pinheiros R i v e r , to service the demand o f the Cubatao energy plant. C o m p l e m e n t i n g the picture, the urban expans ion o f Greater 102 Sao P a u l o was already i n v o l v i n g the borders o f the reservoir and threatening its u t i l i z a t i o n for water supply. T h e m a i n reservoirs and rivers are s h o w n i n F i g u r e 4.1 be low. ( L E L E O C O L O C A R O M A P A A Q U I ) PUBLIC WATER POLICIES In 1975 protect ion p o l i c i e s for the water resources o f the reg ion were i m p l e m e n t e d . T h e Watershed Protect ion L e g i s l a t i o n was devised to control the use and occupat ion o f land o n the tributaries' slopes o f the metropol i tan watersheds. A separation between 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 bui l t to protect part o f the reservoir f r o m p o l l u t i o n , and more 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 ivers ion 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 Reservoir . These were the immediate measures to a v o i d the loss (and eventual ly 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 controversial S A N E G R A N , the sewage treatment system for Greater Sao P a u l o , f inanced by the H o u s i n g N a t i o n a l B a n k ( B N H ) . It was designed to discharge effluent into a watershed protected by 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 leg is la t ion just approved. In 1982, management pol ic ies were implemented for the water resources o f the H i g h Tiete B a s i n , especial ly for the control o f f l o o d i n g and p o l l u t i o n . In i t ia l ly , a l l the f l o w o f the Tiete and P i n h e i r o s R i v e r s , and consequently, a l l their p o l l u t i o n load, was discharged into M e d i u m Tiete (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 Reservoir . Subsequently , the n o r m a l 103 f l o w o f these rivers and 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 between the B i l l i n g s and P i r a p o r a Reservoirs (balanced operation). D u r i n g the ra iny 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 l iberated towards M e d i u m Tiete ( f looding operation). D u r i n g the dry season, the total f l o w o f the Tiete R i v e r above the j u n c t i o n w i t h the P inheiros was diverted to the B i l l i n g s Reservoir , to facil itate the w o r k o f deepening the Tiete channel . 104 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 no longer be suitable for consumption. C l e a r l y , the two sets o f p u b l i c p o l i c i e s were not compat ible . E n e r g y p o l i c y preserved the inversions o f the R i v e r s Tiete and P inheiros , and 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 Reservoir , w i t h the objective o f generating electricity i n the Cubatao plant. Its too l was the 'balanced operation' supported by the d e c i s i o n o f the Federa l A c c o r d a n c e 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 government (the higher management inst i tut ion o f water resources w i t h i n the H i g h Tiete B a s i n ) . T h i s p o l i c y j eopardized one o f the watersheds protected by l a w , by 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 Reservoir . 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 r e g i o n treatment station into the same protected reservoir. U n t i l 1982, a lmost a l l the avai lable water f r o m the H i g h Tiete B a s i n , except for 3 m - V s , was 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 Cubatao. T h e state government then decided to stop the invers ion except dur ing f l o o d i n g t imes i n order to recover the B i l l i n g s . T h e result was a sensible reduct ion o f the anaerobic p o r t i o n o f the B i l l i n g s reservoir and the increased p o l l u t i o n o f the P i rapora reservoir. I n response to protest f r o m the populat ion l i v i n g i n the margins o f the m e d i u m Tiete , especial ly 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 and its p o l l u t i o n l o a d was d i v i d e d into equal 106 parts between B i l l i n g s and Pirapora Reservoirs . T h i s left both reservoirs p o l l u t e d and 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. So, w h i l e p u m p i n g persisted, the protect ion 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 possible i f p o l l u t i o n were reduced i n the two rivers: P i n h e i r o s and Tiete. T h i s w o u l d be very d i f f icu l t to achieve, because the 7.2 rn^/s possible f l o w to be treated was b e y o n d the capacity o f the exist ing sewage treatment station. T h e v o l u m e o f distr ibuted water, and consequently the v o l u m e o f sewage to be treated, was bigger than the 31.5 m - V s o f m a x i m u m capacity o f the central col lector. E l e c t r i c i t y produced i n Cubatao electricity m a y be insigni f icant w i t h i n the energy system o f the Southeast r e g i o n o f the country. H o w e v e r , the electricity supply system o f the S P M A , w i t h its capacity pract ica l ly saturated, has depended o n electricity f r o m Cubatao, and therefore, o n p o l l u t e d waters being p u m p e d into the B i l l i n g s Reservoir . W h o s e interests d i d these pol ic ies serve? T h e y d i d not protect the water supply ; that needed a l l the water resources avai lable w i t h i n the metropol i tan reg ion not c o m p r o m i s e d by p o l l u t i o n . T h e y d i d not help the populat ion l i v i n g i n the margins o f the reservoirs, anxious for decontaminat ion o f the waters. B u t they d i d benefit the energy product ion 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 for generating electricity i n Cubatao. 1 0 A B C : Santo Andre, Sao Bernardo and Sao Caetano are municipalities at the Southeastern part of the metropolitan area. 107 I n the context o f scarcity o f water to supply the metropol i tan p o p u l a t i o n , and increased urban growth t o w a r d watershed areas, the confl ict between water supply and electr ic i ty generation presented a g l o o m y scenario o f p u b l i c pol ic ies serving very narrow interests. T h e focus o f the p u b l i c p o w e r dominated this question. T h e procedure was to a v o i d confrontat ion between the parties i n conf l ict or contradict ion, by treating each side's p r o b l e m i n i so la t ion , as though it were separate f r o m the other ones, thus mainta in ing control by p u b l i c power . I l lustrative o f this was 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 Tiete R i v e r , carr ied out by the C o m m i t t e e o f the Agreement between the Federal M i n i s t r y o f E n e r g y and 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 Tiete B a s i n to dilute sewer discharged ' in natura' and to dilute effluent f r o m sewer treatment stations, managed b y the state sanitation p u b l i c corporat ion ( S A B E S P ) . • T h e water supply o f the S P M A , w h i c h designates avai lable water resources to supply the metropol i tan area, managed by S A B E S P . • T h e protect ion o f the S P M A water resources, i n c l u d i n g control over occupat ion o f tributaries slopes o f the metropol i tan watersheds, control led by the H o u s i n g and U r b a n D e v e l o p m e n t and E n v i r o n m e n t Secretariats, and by the state environmental technical control p u b l i c corporat ion ( C E T E S B ) . 108 T H E WATERSHEDS PROTECTION T h e S P M A and its populat ion compose an environment system i n w h i c h a l l elements are interrelated and m u t u a l l y dependent i n processes o f interchange o f energy and matter: humans' presence is decis ive. I n this ecosystem, the h y d r o l o g i c a l cyc le has been altered. T h e destruction o f the natural vegetal cover - the A t l a n t i c Forest - has reduced evaporation-transpirat ion and consequently 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 reduced inf i l t rat ion and consequently the v o l u m e o f water stored i n the sub-soi l . Surface i m p e r m e a b i l i t y and rivers channel ing have increased the speed o f water drainage and r e m o v a l o f water f r o m the ecosystem. Water bodies have been altered. T h e quantity o f foreign matter entering water bodies is not iceably larger than their capacity to assimilate. In particular, d e c o m p o s i t i o n o f domest ic sewage, r i c h i n organic matter, has reduced the level o f o x y g e n d i s s o l v e d i n the water, a l tering p r o f o u n d l y the structural character o f aquatic fauna and f lora T o guarantee the actual and future water supply o f the region, it is necessary to protect the watersheds against the effects o f h u m a n occupat ion around their borders. A l s o , r ivers , streams and underground water, w h i c h together w i t h the reservoirs comprise the regional water resources, need to be protected. Thus , protect ion o f watersheds also i n v o l v e s protect ion o f their drainage basins, a m o r e extensive area than just the water bodies per se. 109 L e g i s l a t i o n for the protect ion o f watersheds was approved between 1975 and 1977" . 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 disposit ions for the protect ion 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 for summary o f L a w s , decrees and leg is lat ion changes). T h e leg is la t ion and its amendments bas ica l ly referred to: • Protect ion o f water resources, by means o f sanitary codes, water codes, norms against p o l l u t i o n , land use and occupat ion controls. • U s e and management o f water resources, for example: hydropower , supply water, d a m m i n g r ivers , height o f dams, m i n i m u m outf lows. • C r e a t i o n , organizat ion and 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 and protect ion o f water resources, p l a n n i n g and control mechanisms. T H E DEBATE ABOUT T H E WATERSHED PROTECTION E x t e n s i v e debate accompanied the legis lat ion for metropol i tan watershed protect ion. F o r a lmost 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 cit izens groups and universi t ies . Several government institutions such as the Secretariat for 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 Sao P a u l o ( C O D E G R A N ) , and the Consultat ive C o u n c i l o f Greater Sao P a u l o ( C O N S U L T I ) were i n v o l v e d , w i t h members o f the state parl iament i n continuous discussions about the details and scope o f the several laws, and decrees and their respective amendments. '1 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. 110 Cit i zens ' organizations, that united the residents o f the areas under d iscuss ion, were v o c a l about their interests, not a lways 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 and different geographical locations. It is poss ib le , as G r o n s t e i n points out that this predominance o f 'of f ic ia l v iews ' was due to lack o f f o r m a l channels o f c o m m u n i c a t i o n and expression, since a l l this happened towards the end o f the authoritarian regime i n B r a z i l . Some o f the c i v i l society manifestos were not even direct ly l i n k e d to the environment: "(_), but they are around basic questions of survival, originated from the way the settlements of these populations have happened within the watershed protection area - the illegal settlements, the slums, the invasions - or from the own fight for a better housing, in broader terms, or from the fight for land within the watershed area in narrower terms. "(Gronstein et al, 1985) T h u s , the leg is lat ion was extensively discussed, c r i t i c i zed and amended. E v e n so, it d i d not a c c o m p l i s h its a i m : to protect the water resources o f the metropol i tan reg ion i n a sustainable manner. Its impos i t ions , far too dif f icult to implement and moni tor , were u n l i k e l y to be respected. T h e state apparatus was total ly unprepared to f o l l o w its o w n law. In response to the pressure o f r a p i d urbanizat ion, i n Sao P a u l o i n particular, since the 1970s the state has started to modernize its apparatus for the management o f urban centers. It has instituted the first metropol i tan regions and init iated a network o f agencies w i t h complementary mandates: to address the insuf f ic iency o f p u b l i c services already exis t ing, as w e l l as to prepare for future demands; and to cope w i t h the environmental impact o f urban growth. T h e environment and basic sanitation were recognized as p r i m o r d i a l issues to the funct ioning o f urban centers. U r b a n 111 g r o w t h and p o l l u t i o n were acknowledged as paral le l phenomena i n the w h o l e process o f urbanizat ion. T o the energy demands f r o m past decades for industr ia l i zat ion were added d r i n k i n g water demands, and the need to treat sewage. In the cities, the non-existence o f sewer systems was transforming water bodies into a natural absorber o f the sewage, i n a v i c i o u s c i rc le o f problems. Organizations involved in the Watershed Issues in Metropolitan Sao Paulo Federal Level - Ministry o f Interior - Ministry o f M i n i n g and Energy State Level Metropolitan System of Planning and Management — S P A M - Secretariat for Metropolitan Issues — S N M - Deliberation Counci l of Greater Sao Paulo — C O D E G R A N - Consultative Counci 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 of Electric Energy - E L E T R O P A U L O - Public Corporation for Technological Control o f Pollution - C E T E S B - Public Corporation for Supply/management/ Distribution of 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 - Public 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 Mayors o f Metropolitan Municipalities Community Organizations: - Comissao de Defesa D a Bi l l ings ( Group for Bi l l ings Reservoir Protection) - Sociedade Amigos da Riviera Paulista Friends of the Riviera Paulista Neighborhood) - Comissao de Defesa da Guarapiranga (Group for Guarapiranga Reservoir Protection) - Comissao da Defesa da Bacia da Guarapiranga (Group for Guarapiranga Basin Protection) - Associacao de Defesa do Tiete (Group for the Tiete River Protection) 112 Awareness o f the i m p e n d i n g collapse o f large urban centers made the state pay m o r e attention to its competency i n relat ion to basic sanitation. E m p h a s i s was directed to f inanc ia l v i a b i l i t y o f projects and programs. T h e F i n a n c i a l System for Sanitat ion ( S F S ) and the N a t i o n a l P l a n for Sanitat ion ( P L A N A S A ) were created, a long w i t h measures and norms for p o l l u t i o n contro l . In 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 init iated p o l i c i e s e m p h a s i z i n g environment preservation. T h i s was the i n i t i a l step towards p u b l i c responsibi l i ty for protect ion 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 var ied w i t h each government i n off ice, sometimes p a y i n g attention to the expectations o f the preservationist movement , and at other t imes l istening to the interests o f w e l l def ined groups, such as constructions companies and 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 actual ly proposed the protect ion legis lat ion, incorporated contradictions, because at the same t ime that it was p r o p o s i n g protect ion o f the watersheds it was propos ing a project, the i l l - fated 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 government institutions either proposed l i m i t i n g the protected area or st imulated the p u b l i c c a m p a i g n for de-pol lut ion o f the reservoirs, posit ions that represented the o v e r a l l p o l i t i c a l orientation o f the Party i n power at the t ime. U n t i l its ext inct ion, the Secretariat for M e t r o p o l i t a n Issues either af f irmed the need to apply the protect ion leg is la t ion as it was, or defended its reformulat ion, therefore ref lect ing 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 interviews and articles, G r o n s t e i n shows several perspectives towards the matter that were adopted by 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 per iodica l ly put forward and discussed according to the speci f ic v i e w o f the subject prevalent i n that administrat ion. Therefore, it has been di f f icu l t to formulate a coherent and effective p o l i c y . T h e Greater Sao P a u l o Del iberat ive 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 administrat ive system o f the metropol i tan areas. It was c o m p o s e d o f the state governor, secretariats, Sao Paulo 's m a y o r and 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 pos i t ion . Its goal was to protect the Coasta l slopes, water reservoirs and the coast zone o f mountains f r o m urbanizat ion, a v o i d i n g deterioration o f their natural eco log ica l condi t ion. T h e M e t r o p o l i t a n Consultat ive 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 body that integrated the metropol i tan administrat ion, b r i n g i n g together the mayors 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 twice around watershed issues. N e a r the beg inning o f its act ivit ies , i n 1975, it supported the protect ion legis lat ion. Several years later, i n 1983, it served as a special c o m m i s s i o n to study and propose measures to i m p r o v e watershed protect ion leg is la t ion, and its appl icat ion. Its report is s u m m a r i z e d i n the section that examines the leg is lat ion. S o m e c o m m u n i t y organizations had spoken out frequently, i n response to announcements o f programs and projects for the areas. T h e i r manifestos reflected the po lar iza t ion 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 Defesa da B i l l i n g s " , "Sociedade A m i g o s da R i v i e r a P a u l i s t a and 114 " C o m i s s a o de Defesa da Guarapiranga" were i n favor o f the watersheds protect ion. T h e " C o m i s s a o de Defesa d a B a c i a da Guarapiranga" defended the interests o f residents w i t h i n this basin. T h e " A s s o c i a c a o de Defesa do Tiete" was against protect ion o f the watersheds (for a s u m m a r y o f their posi t ions, see A p p e n d i x A ) . There was a mult i tude o f v i s ions o f h o w to protect metropol i tan water resources. T h e divers i ty was at t imes, an 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 power. H o w e v e r , the constant outcry was 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 undoubtedly exerted considerable inf luence u p o n the eventual effort to i m p r o v e the legis lat ion. PUBLIC POLITICS FOR T H E PROTECTION OF T H E WATERSHEDS T h e most c o m m o n n o t i o n o f pol i t ics defines it as a compet i t ion for a mandate to exercise power , or party prose ly t i sm, or the abi l i ty to manage h u m a n relations, or sagaciousness, shrewdness, deceitfulness, or mendaciousness (Buarque de H o l l a n d a Ferreira , s/d). A c c o r d i n g to these def ini t ions, p o l i t i c s is construed as emanation o f power, w i t h a subject p l a i n l y def ined - the p u b l i c agent - and w i t h the objective also clearly determined - the gain o f this agent. B u t it is not i n this sense that po l i t i cs are understood here. P o l i t i c s can be understood as the c o l l e c t i o n o f acts and attitudes that guard relations w i t h the government through p o w e r (politic), or as a h u m a n act ion that i n v o l v e s a p r o g r a m , a concerted act ion (policy), or as a group o f techniques or procedures to obtain success ( B r i t o , 1986), or 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 and unevenness between its different instances" (Castel ls 1983). H o w e v e r , these conceptions o f po l i t i cs are incomplete . I n the first def in i t ion, p o l i t i c s has a def ined subject - the state - but there is no def in i t ion o f the objective. I n the second and t h i r d assertions, po l i t i cs has a defined objective - the concerted act ion or the group o f techniques - but the subject is not defined. In the last, the objective is c learly def ined - dea l ing w i t h the contradic t ion that composes society - but the subject is vague - society. P o l i t i c s can also be understood as the "group o f actions and omiss ions that manifest a speci f ic m o d a l i t y o f state intervention i n relat ion to a question that ca 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, po l i t i cs has a c lear ly def ined objective - intervention i n a specif ic issue - and has a subject also c lear ly established - the state. In this m o d e l , the state functions as an 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 can be understood as the condensat ion o f a soc ia l format ion, that excludes its absence i n relat ion to the objectives where its exerts its power (Poulantzas, 1986). U n d e r these condit ions, state interventions are not mot ivated o n l y by questions w h i c h c a l l its attention, but also by the parts i n conf l ic t or contradict ion, w h i c h are located w i t h i n itself, the state. P o l i t i c s can also be understood as the "residue f r o m the interaction between c o n f l i c t i n g groups" ( L o w i , 1976). In this m o d e l , the subjects are c learly defined as the parts i n conf l ic t or 116 contradict ion; the objective is c learly defined as the regulat ion o f conf l ic t or contradict ion; and the state is o n l y a spectator, carry ing out the resolut ion reached by 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, po l i t i cs is not o n l y "regulation-neutral izat ion o f contradict ions o f a soc ia 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 inanc ia l apparatuses, w h i c h gives to it the capacity to "determine the immediate objects o f conf l i c t " , or the capacity to participate act ively i n the formulat ion o f p u b l i c p o l i c y ( L a m o u n i e r , 1986). So, p o l i t i c s is not o n l y a group o f actions and omiss ions that manifests i t se l f according to a certain m o d a l i t y o f intervention f r o m the state i n relat ion to a quest ion nor is it s i m p l y the residue f r o m interact ion between conf l i c t ing groups. P u b l i c po l i t i cs is the result o f interact ion between state and parts i n v o l v e d i n conf l ict or contradict ion. I n this m o d e l , p o l i t i c s has a clear subject, the state and the conf l i c t ing parts, and has an objective also clearly defined, as the regulat ion o f the conf l ic t or contradict ion. I n the case o f watershed protection, p u b l i c po l i t i cs 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 land use w i t h i n the protected watersheds basins as its (confl ict ing) objective. P u b l i c p o l i t i c s can be c lass i f ied as distr ibutive, regulatory and re-distr ibutive ( L o w i , 1986). D i s t r i b u t i v e pol i t i cs is characterized by resource de-aggregation, and by its a l locat ion to isolated units wi thout conformity to any general criteria. F a v o u r e d and non-favoured do not confl ict . O p p o s i t i o n is neutral ized by 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 sole ly for its o w n benefit without opposing benefit to others. T h i s m o d e l can also be ca l led " c l i e n t e l i s m " . Regulatory p o l i t i c s i n v o l v e s benefits less de-aggregated, and problemat ized or disputed. F a v o u r e d and non-favoured confl ict , and there is a direct choice between them. Its arena is the representative institutions o f society w i t h i n the state apparatus. Re-dis tr ibut ive p o l i t i c s i n v o l v e s relationships between broad socia l categories. It is characterized b y negot iat ion between favoured and non-favoured. Its agent is the state that gathers and develops the correlat ion o f forces w i t h i n society. I n real ity, these three categories o f p u b l i c po l i t i cs , or these three p o l i t i c a l agents as def ined by L a m o u n i e r , can be considered as one: regulatory pol i t i cs , w h i c h varies according to the problemat izat ion o f the benefit. W h e n the issue involves interests shared a m o n g soc ia l classes, class fractions or dominant categories f r o m different product ion modes, its resolut ion is achieved by confrontat ion between actors and crysta l l ized by p u b l i c pol i t ic ies . W h e n the issue i n v o l v e s fragmented beneficiaries, the arbitration o f the state substitute the confrontat ion o f the parts, and expresses, at least i n discourse, the resolut ion o f confl icts . I n the case o f watershed protect ion i n Sao P a u l o , p u b l i c po l i t i cs had the appearance o f regulatory p o l i t i c s because it was approved by a legislative body and by the State Const i tut ion . H o w e v e r , it was, i n fact, distr ibutive pol i t ics . O n e o f the interest groups, the owners and users o f the land w i t h i n the protected area was fragmented and disorganized, and the other part was the state i t se l f 118 funct ioning as the operative agent o f the infrastructure systems and energy o f Greater Sao P a u l o , and u l t imate ly the conf l ic t was defined and regulated by the state itself. T h i s explains the arbitrary and case-by-case treatment o f confl icts w i t h the owners and users o f the l a n d w i t h i n the basin. T h i s pattern characterizes distr ibutive po l i t i cs , and occurs i n the concess ion o f metropol i tan l icensing. I n its a p p l i c a t i o n i n the urban space, p u b l i c po l i t i cs has three dimensions: • A p l a n n i n g d i m e n s i o n . • 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 and l o c a l state apparatus to intervene f inanc ia l ly and j u r i d i c a l l y i n the organizat ion o f urban space. • A n urban d i m e n s i o n that condenses implements and measures the soc ia l effects i n the space o f urban planning/urban operations combinat ion. T h e p l a n n i n g d i m e n s i o n as defined by Castel ls corresponds to " i d e o l o g i c a l texts that characterize the p o l i t i c a l intervention as directed not towards the urban system, but towards the general i d e o l o g i c a l instance". In the case o f the protect ion o f the Sao P a u l o watersheds, it encompasses the discourse about this protect ion (Castel ls , 1983). T h e operational d i m e n s i o n , i n addi t ion to the j u d i c i a l d i m e n s i o n o f regulat ion, i n v o l v e s the group o f j u d i c i a l tools and f inancia l mechanisms o f the state apparatus. I n the case o f watershed protect ion, it i n v o l v e s o n l y leg is lat ion for watershed protect ion, administrat ive p o l i c i e s for land 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 urban d i m e n s i o n is the c o m b i n e d effect o f the discourse and instruments a p p l i e d to the urbanized territory o f the basin. It encompasses the impact o f the discourse and leg is la t ion o f watershed protect ion u p o n urban expansion. It also includes the impact , i n the adjacent areas o f the reservoir, f r o m this discourse and 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 WATERSHED PROTECTION DISCOURSE T h e watershed protect ion discourse af f irmed that the water resources o f the metropol i tan r e g i o n were insuff ic ient for the future demand o f Greater Sao P a u l o , and that these resources are threatened by the urban expansion o f the metropol is . T h e hydro balance presented i n the legislative debate about the proposed l a w 241/85, w h i c h originated the L a w 898/85, forceful ly demonstrated the scarcity o f water resources for the region's supply: "Nowadays the water demands for domestic use is around 28 m?/s, and the industries are almost self-sufficient. 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] T h e prognosis o f c o m p r o m i s e d water resources potential ly useful for d r i n k i n g water was distressing i n v i e w o f increasing urban expansion w i t h i n watersheds i n the metropol i tan reg ion: 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 protect ion aff irms that l a n d use control was 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] Thus , the watersheds protect ion discourse emphasized the relative scarcity o f water resources to serve the metropol i tan region; it warned o f the r isk o f urban expansion t o w a r d the watersheds; and it preached the appropriate land use for the protect ion o f a l l potential ly usable watersheds for the metropol i tan supply. A t that point , the controversy about the use o f water resources was pervading discussions about the situation. Therefore, a l l that was said about watershed protect ion d i d not resolve the dispute over 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 was possible that the protected water resources w o u l d be used either to meet water demand, or to generate electricity, i n spite o f their scarcity i n the metropol i tan region. 121 T h e lack o f def in i t ion for the use o f protected resources made t h e m vulnerable to be used, at any t ime, for other ends. Thus , the absence,of p u b l i c pol ic ies def in ing the use o f the A l t o Tiete B a s i n waters was not f u l f i l l i n g their m a i n objective, the water supply 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 not have a mandate to allocate water resources. Therefore, the Sao P a u l o State government had to restrict its watershed protect ion act ion. T h e j u r i s d i c t i o n for d e c i d i n g the use o f water resources was always federal, as c lear ly stated by the J u d i c i a l A c t o f the Federal Supreme Justice Court ( O E S P , 1984). It remains a federal j u r i s d i c t i o n under the R e p u b l i c Const i tut ion 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 protect ion o f water resources. T h i s mandate is def ined i n the same R e p u b l i c Const i tut ion, and this const i tut ional r ight has g i v e n the state the capacity to legislate i n matters concerning environmental protect ion: 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 concret ized the protect ion o f the S P M A watershed. It legislated contro l o f "opening o f road access, sub-div is ions , b u i l d i n g s , as w e l l as the practice o f agr icul tural , c o m m e r c i a l , industr ia l and leisure act ivit ies" ( A r t i c l e 30) i n the drainage basins o f the protected watersheds, through restrictions established by law. T h u s , the operational d i m e n s i o n o f watershed protect ion p u b l i c p o l i c y was: 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 norms related to land use and occupat ion, to sub-div is ions and opening 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, and the c o l l e c t i o n and f ina l destiny o f waste and sewage; def in i t ion o f the state agents for effective management o f these norms. Other poss ib i l i t ies for the protect ion o f the watersheds were not taken into considerat ion. P u b l i c p o l i t i c s concentrated o n control o f h u m a n activit ies 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 1 2 d i d p u b l i c p o l i c y for the watershed protect ion take into considerat ion other instruments, ending 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 possibi l i t ies for the contro l o f h u m a n activit ies were not considered. E v e n the tradit ional strategy o f " e m p t y i n g " the b a s i n areas was 1 2 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). 123 abandoned "overcome by the actual f inancia l i m p o s s i b i l i t y " ( O E S P , 1994) and "appl icable o n l y i n except ional character" (Sao P a u l o Leg is la t ive A s s e m b l y , 1975). I n fact, the protected area includes 55 percent o f the metropol i tan region, and to empty it is imposs ib le . T h i s does not mean, however, that expropriat ion (when the state requires the use o f the land) is outdated, or that it should be appl ied o n l y i n exceptional cases. L a w 1172/76 says that 0,5 percent o f the protected area must be used for metropol i tan parks. T h e Sao P a u l o C i t y P l a n n i n g Secretariat had already considered creating a park between Guarapiranga and B i l l i n g s , as an effective instrument for the control o f urban expansion i n the d irect ion o f the watersheds ' 3 . P u b l i c parks and e c o l o g i c a l reserves are legitimate reasons for expropriat ion. So, the p u b l i c p o l i t i c s o f watershed protect ion restricts o n l y the occupat ion o f drainage basins. Its object is to control the conf l ict between users o f the watersheds (for water supply) , and land users. Its subjects are: the state p u b l i c administrat ion; the water services provider , S A B E S P (that integrates the administrat ive apparatus o f the state government); owners and users o f the drainage basins. L e g i s l a t i v e instruments d i d not consider the poss ib i l i ty that these water resources m i g h t be used 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 and a l l subjects that needed p u b l i c po l i t i cs as an instrument for watershed protect ion. 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 act iv i ty i n areas surrounding 124 protected watershed was necessary to the protect ion o f water resources, but not sufficient to guarantee the l inkage o f these resources to the objective that jus t i f i ed its protect ion. T h i s is an aspect s e l d o m considered, and it has not been incorporated i n changes to legis lat ion. It was 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 protect ion were aware o f its s ignif icance. Pos i t ions i n re lat ion to watershed protect ion laws ranged f r o m ident i fy ing the issue to protective leg is lat ion. O n e extreme p o s i t i o n reduced watershed issues to a p r o b l e m o f leg is la t ion, w h i c h w o u l d use a unique instrument for preservation, a c k n o w l e d g i n g ex is t ing and recognized aspects o f the situation: to preserve the water for supply by the scanty occupat ion and contro l o f the areas through laws. T h e other extreme pos i t ion , denouncing the legis lat ion as i m p r a c t i c a l , i m p l i e d expansion o f the question. It pointed towards a total r e v i s i o n o f the leg is lat ion, and c o u l d indicate n e w w a y s o f seeing the question. W h a t was needed was 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 and preserve the water resources o f the S P M A . 1 3 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. 125 CHAPTER 5 URBAN LAND AND WATERSHED PROTECTION INTRODUCTION T o have a secure home is one o f the most enduring and cultural ly wide-spread needs o f people. A sense o f deprivat ion, insecurity and iso lat ion seems to be c o m m o n i n most societies w h e n need for hous ing is not met. T h i s 'expectat ion' has e v o l v e d f r o m having a h o m e to actual ly owning a home. T h e reasons, rationale and controversy surrounding this expectation are b e y o n d the scope o f this w o r k , s t i l l it must be acknowledged as something that goes b e y o n d the i n d i v i d u a l desire for ownership, and is a major source o f social confl ict and e c o n o m i c hardship for the poor i n the d e v e l o p i n g context. T h i s chapter examines brief ly h o w land issues and ownership have been e v o l v i n g i n the S P M A and h o w the Watershed Protect ion L a w has shaped the p r o v i s i o n o f hous ing for the poor. B y freezing more than h a l f o f the metropol i tan territory, the leg is lat ion has had a p r o f o u n d impact 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 land 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 housing p r o d u c t i o n has been resolved. Because the legal hous ing market i n S P M A i n the nineties does not serve poor and 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 metropol i tan populat ion must resort to irregular/i l legal solutions i n the periphery, wi thout infrastructure services and c o m m o n l y i n environmenta l ly r i s k y areas. Less than US$1,000 per month. 126 B o t h government and the private sector have s h o w n pragmatic disregard for the p r o b l e m dur ing decades. H i s t o r i c a l l y both have re l ied 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 re l ieve the increasing pressure created by housing needs. Throughout the last decades, the cheap h o u s i n g so lut ion offered by favelas, cortigos, i l l e g a l subdivis ions, and i l l e g a l b u i l d i n g standards had costs endured o n l y b y the w o r k i n g class. Adequate resolut ion o f the h o u s i n g issue needed higher salaries and more efficient p u b l i c po l i t i cs , as extensively discussed i n w o r k s by M a r i c a t o , O l i v e i r a and 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 concern o f this w o r k , they must be taken into account because the shape o f metropol i tan Sao P a u l o ' s urban environment is v iscera l ly l i n k e d to them. T h e l o g i c o f i l l e g a l subdiv is ions i n protected areas has been connected to freeing ' n o b l e r ' urban space f r o m favelas and cortigos that occupied land that eventually became m o r e marketable. T h e real estate market (speculation) has also hindered consol idat ion o f m a n y fringe neighborhoods, i n the w a i t i n g process o f prospective va lor izat ion. C o m m u n i t i e s that eventual ly succeed i n their pursuit o f services and infrastructure have also been dragged into this land-va lor iza t ion game, or the pr ice o f plots increases many-fo lds , once services are i n place re in forc ing the c y c l e o f displacement o f the l o w e r i n c o m e strata. Therefore, unless the insti tutional posture toward land issues changes, this pattern o f soc ia l and urban e x c l u s i o n w i l l be reinforced. T h e p u b l i c power needs to r e v i e w the regulat ion o f the f o r m a l market, as w e l l as the finance mechanisms and to define n e w rules for land use and occupat ion w h i c h take into account the l o w e r i n c o m e layers o f the metropol i tan populat ion . 127 A l t h o u g h they have no mandate to resolve structural problems such as land issues, international f inanc ing agencies represent a respected and authoritative f o r u m for fostering and/or spearheading changes to l o n g term postures and m o d i f y i n g leg is lat ion concerning l a n d issues. A l s o , w h e n they fund extensive urban-oriented programs, w h i c h have a direct impact u p o n the bui l t environment , hous ing and land use are affected by these agencies' p o l i c i e s . I n spite o f M c N a m a r a ' s af f irmation, i n the 1970s, that the W B should not intervene i n land issues because it w o u l d "affect the p o w e r base o f the tradit ional elite i n the deve loping societ ies"( in Assault on Urban Poverty 1975, as cited by C a u f i e l d , 1996), the n e w development discourse reflected i n the actual B a n k ' s agenda is not so blunt i n its support o f the land status quo. S o m e h o w , the ninet ies ' agenda advocates more equitable access to and distr ibut ion o f land. Thus , the objective o f this b r i e f e x a m o f land issues has been to point out the p o l i t i c a l d imensions o f urban environment shaping. T h e urban f o r m , ul t imately , reflects the pol i t ics that is ingra ined i n the w a y land is d i v i d e d , distr ibuted, and eventually control led according to laws, w i t h i n the part icular soc ia l and e c o n o m i c reality. T H E QUESTION OF LAND AND HOUSING FOR THE POOR Throughout B r a z i l ' s history, i l l e g a l land tenure has been the p r i n c i p a l agent o f spatial segregation, i n both rural and urban 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 land occupat ion was a legal w a y to obtain tenure. O n l y w i t h the emergence o f 128 free w o r k e r s 1 5 , l and ownership leg is lat ion was passed, i n order to guarantee the cont inui ty o f the landowners ' (latifundiarios) control over product ion. Therefore, the automatic e x c l u s i o n o f the peasantry/low i n c o m e populat ion f r o m any poss ib i l i ty o f legal ownership has been part o f the process o f h u m a n settlement i n B r a z i l . In response to this several strategies o f land occupat ion, have e v o l v e d f r o m the process once seen as tradit ional (the occupat ion o f free land) to an i l l e g a l and threatening event to the contemporary landowner elite. A c c o r d i n g to Fernandes (1997) three processes have made the settlement and g r o w t h o f p o p u l a t i o n i n urban areas possible 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 pro l i ferat ion o f irregular peripheral l a n d d i v i s i o n s , and the widespread 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 urban land. S u c h processes have shaped some o f the socia l practices associated w i t h the settlement process o f large parts o f the city. In particular, they were the o n l y o p t i o n avai lable to the l o w -i n c o m e p o p u l a t i o n and the majority o f migrants to metropol i tan Sao P a u l o . T h e state has not been unaware o f these processes, and has osci l lated f r o m connivance to repression, according to the w h i m s o f p o l i t i c a l interest. These elements have shaped an urban legal order that is di f f icul t to enforce and not necessari ly i n the best interest o f l o w e r i n c o m e people. U r b a n land became the object o f more extensive legis lat ion w h e n the real estate market started to develop. T h e eventual stratif ication o f the urban environment, though, came hand-in-hand 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 populat ion f r o m potential ly more valuable areas, subordinated to unscrupulous 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 , urban hous ing product ion i n Sao P a u l o has been regulated by leg is la t ion that establishes where and h o w urban land can be d i v i d e d , w h i c h k i n d o f infrastructure can be i m p l e m e n t e d , and h o w m a n y square meters can be bui l t o n a land parcel . B a s i c a l l y , the objective o f the leg is lat ion is to assure the qual i ty and adequacy o f construct ion and to balance the urban bui l t environment i n terms o f infrastructure and socia l equipment ( f rom the point 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 ime w h e n the legis lat ion was initiated). In a d d i t i o n to leg is la t ion about des ign and construct ion rules, a l l l and sub-divis ions and hous ing sales are subject to p u b l i c registry, and f inanc ing depends o n documentat ion p r o v i n g the legal i ty o f the act iv i ty or transaction. H o w e v e r , most hous ing was and is p r o v i d e d outside the exist ing legal f r a m e w o r k and 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 legal ly , registered pieces o f real estate. So, the c i ty has g r o w n outside plans and urban laws, almost total ly based o n m o r e or less irregular subdiv is ions . In an extensive study o f the housing market i n Sao P a u l o , S i l v a and Castro (1997) have demonstrated that the irregular forms o f housing p r o v i s i o n cannot be exact ly descr ibed or quanti f ied. T h e y are favelas, cortigos, i l l ega l sub-div is ions , and precarious h o u s i n g that shelter the l o w - i n c o m e metropol i tan populat ion. A c c o r d i n g to their study, " a m i n i m u m o f 44 percent -and p r o b a b l y more than 60 percent - o f the housing produced i n Sao P a u l o between 1880 and 1991" do not c o n f o r m to the legal framework, i n one or more aspects. E v e n w i t h a l l the administrat ive mechanisms, such as taxes for p u b l i c street c leaning, water and o w n e r s h i p , it is 130 not poss ib le to k n o w exactly h o w many o f the Paulistano16 p o p u l a t i o n l i v e i n i l l e g a l h o u s i n g arrangement. H o w e v e r , ownership is a recurring and 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 deve loping cities ( S i l v a and Castro, 1998). In consol idated favelas, l o c a t i o n has increas ingly affected the i n f o r m a l market. In 1993, 13.8 percent o f household heads said they had p a i d for their plot , against 4,3 percent i n 1987. In more than 90 percent o f the favelas researched by Tashner buy-and-sel l advertisements were seen, w i t h 45.5 percent cost ing between 10 and 20 m i n i m u m m o n t h l y wage, and 32.3 percent costing between 20 and 50 m i n i m u m m o n t h l y wage (Tashner, 1995). T h e rental market i n B r a z i l has been strongly inf luenced by regulat ion and scarcity o f a c c o m m o d a t i o n . T h i s , i n turn, was l i n k e d to the disinterest o f both private investors and 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 exist ing real estate. P r o d u c t i o n for rent decreased since the 1940s, i n response to leasing legis lat ion, and was complete ly m a r g i n a l i z e d i n the f inanc ing programs 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 System ( S F H ) . These programs have focused entirely o n ownership since the second h a l f o f the 1960s. In a d d i t i o n to not f i n a n c i n g private and p u b l i c p r o d u c t i o n o f rental housing, the N a t i o n a l B a n k for H o u s i n g ( B N H ) , the m a i n del iverer o f the S F H , determined the se l l ing o f a l l rental stock o w n e d by p u b l i c entities or s i m i l a r institutions such as retirement funds, etc. Thus , there is currently no specif ic p r o d u c t i o n for rental accommodat ions i n the f o r m a l sector, but o n l y a control led market by l o c a t i o n companies , and 1 6 "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 . Rent values reached an extraordinary h i g h d u r i n g the P i a n o R e a l (1994) and started to come d o w n o n l y towards the end o f 1995. T h e histor ic average for S P rent was around 0.5 percent o f the se l l ing value o f the house, and 1 percent o f the value for low-standard housing. A t the beginning o f 1996, the rent represented around 1 percent o f the se l l ing value, i n some cases reaching 2 percent ( S i l v a and Castro, 1997). It is a k n o w n fact that the wage o f the B r a z i l i a n w o r k e r does not cover hous ing costs. Because o f this, they need to o w n their house at the lowest cost possible. Irregular solutions for accessing l a n d a l l o w t h e m to obtain a house. These solutions are relat ively cheaper than entering the f o r m a l market. E v e n so, both rent and self-built solutions are h i g h cost, i n addi t ion to the precariousness o f urban and b u i l d i n g standards. Therefore, to o w n a plot o f land to b u i l d one's house is a most cherished a m b i t i o n o f the poor 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 ty has been produced i rregular ly , and a great number o f workers have had to use irregular forms for secure hous ing . T h e fact that the p lot or construct ion is irregular has impeded access to private or p u b l i c h o u s i n g f inanc ing . T h e owner o f a house i n an irregular situation does not have the necessary documentat ion to use the cartas de credito, the of f i c ia l document 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 Federa l , the agency for housing f inancing has had di f f i cu l ty i n disseminat ing this because o f the gigantic d imensions o f tenure and real estate i l legal i ty . P u b l i c f i n a n c i n g helps the better-off strata o f the populat ion that can buy w i t h i n the legal market. A s S i l v a and 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 inancing for the m i n o r i t y " . 132 M a n y w a y s have been devised to address the situation, but none has been effective i n d i m i n i s h i n g the large number o f i l l ega l dwellers. A l s o , different approaches have not yet created a s ignif icant body o f legal and social expertise w i t h enough soc ia l , p o l i t i c a l and theoretical strength to overcome the tradit ional and expected resistance o f the landholder elite, real estate speculators and conservative government pol ic ies . 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 controversy i n recent decades. In an International F o r u m sponsored by 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 dominated the discussion. T h e upgrading approach i n v o l v e s the p h y s i c a l regular izat ion and implementat ion o f basic infrastructure i n s lums and irregular settlements. A n o t h e r very c o m m o n approach is the transformation o f a de facto s i tuation into de jure property ownership , through the legal regularizat ion 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 approach us ing a w i d e variety o f measures a i m e d at soc ia l and c i v i c integration o f i n f o r m a l settlements into the m a i n urban fabric. M a n y programs have been developed i n recent years to upgrade i n f o r m a l settlements, w i t h creative and innovat ive approaches specif ic to each situation. I n spite o f pos i t ive aspects such 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 programs depend o n an extensive budget, part icular ly w h e n major services such as m a i n sewage collectors and road access to c r i t i c a l areas are i n v o l v e d . T h e necessary re locat ion o f potential ly dangerous, houses, those subject to 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 programs, a very desirable characteristic i n this k i n d o f project, sometimes can not happen, due to crescent d i f f i cu l ty i n obta ining large amounts o f f inancia l resources, c o m m o n l y through international f u n d i n g . T h i s is 133 the case w i t h the Guarapiranga P r o g r a m and a l l s ignif icant metropol i tan programs d u r i n g recent decades, w h i c h have their continuity jeopardized by eventual lack o f l o c a l resources to m a t c h l o a n agreements. There are costs to residents i m p l i e d by the improvement o f the settlement. T h e y are subject to services and other taxes w h i c h , o n top o f instal lat ion costs c o u l d p u s h fami l ies into sub- locat ion, s u b - d i v i s i o n or eventual ly se l l ing the lots. The rate o f housing improvement can d i m i n i s h once the f i n a n c i n g avai lable to the household becomes smaller. P h y s i c a l i m p r o v e m e n t o f settlements has also signif icant impact i n w h i c h w a y levels o f government are i n v o l v e d i n urban administrat ion. It stimulates decentral izat ion, strengthening m u n i c i p a l government and adding a n e w d i m e n s i o n to the importance o f inst i tut ional b u i l d i n g . F r o m i m p r o v i n g f i sca l capacity to developing rel iable p r o g r a m coordinat ion routines, an apprenticeship is essential to b u i l d capabi l i ty i n the m u n i c i p a l i t y . T h i s can inc lude s k i l l s needed to participate i n negotiat ion between stakeholders and to discern the best solutions most l i k e l y to be repl icable . T h e legal f r a m e w o r k for p h y s i c a l upgrading has not been an insurmountable barrier, but it faces the same l i m i t s as tenure legal izat ion, as w e l l be ing 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 design o f mechanisms such as improvements to pr ivate ly o w n e d l a n d or insert ion o f s lums into otherwise formal urban fabric to c i rcumvent regulat ion obstacles, can 134 assume the f o r m o f special zones ( Z E I S and P r e - Z E ^ - 7 ) w h i c h give greater f l e x i b i l i t y to the projects wi thout 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 zenship rights and its d isseminat ion through the affected communit ies . R ights to infrastructure and urbanizat ion benefits, and ul t imate ly housing rights are more easi ly 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 is the c i t i zens ' heightened sense o f responsib i l i ty as the natural f o l l o w - u p (vis ible i n payment o f c o n s u m p t i o n taxes and c o m m u n i t y responsib i l i ty towards conservation and maintenance). I n spite o f the arguments i n their favour (see F i g u r e 5.1), most land title lega l i zat ion programs i n place have been lengthy and expensive, and lack clear i n d i c a t i o n o f s igni f icant ly i m p r o v e d qual i ty o f l i fe i n settlements. M o s t home improvement and conso l idat ion appear to be dependent o n direct resources. Service providers have their o w n rules that do not n o r m a l l y depend u p o n property tenure. H o w e v e r , the recent w o r k done by M o s e r i n four d e v e l o p i n g countries suggests that tenure has c learly affected the w a y L a t i n A m e r i c a n famil ies have responded to settlement programs ( M o s e r , 1996) There is also certain wariness among l o w - i n c o m e populat ions about f o r m a l credit systems, debt is something best avoided i n an environment o f j o b insecurity. Tenure regular izat ion has been an objective o f hous ing pol ices and institutions i n several L a t i n A m e r i c a n countries. It can be a strong p o l i t i c a l t o o l and has occas ional ly helped to organize the f l o w o f infrastructure p r o v i s i o n . 1 7 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 of 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 of the city F i g u r e 5.1 — Arguments for L e g a l Regular izat ion Source: Ward, P. 1998 M o r e recently, international funding institutions are m a k i n g land t i t l i n g i n i n f o r m a l settlements as a basic element o f their agenda, i n order to further urban land management. T h e integrat ion o f a large percentage o f the urban populat ion into the universe o f taxes, recovery o f cost o f services and infrastructure, p l a n n i n g controls, construction permits and c o n s u m p t i o n charges is considered an essential requirement o f any urban resident set o f obl igat ions, regardless o f her/his i n c o m e bracket. Sustainable urban programs emphasize this component. R e g u l a r i z a t i o n o f land ownership is def ined as one o f the m a i n tools for urban management, and a guarantee o f urban sustainabil i ty . 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 it is an essential part o f urban p o l i c y i n m a n y places. It is interesting, though, to recognize 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 enthusiastical ly for private land than they are for p u b l i c land. S o m e j u d i c i a l mechanisms have been developed i n order to transfer ownership based o n occupancy rights. I n the B r a z i l i a n legal system, the uso capido system a l lows those w h o can c l a i m continuous occupancy for the previous f ive years to c l a i m proprietorship o f the plot , even i f it is smal ler than 2 5 0 m 2 . T h i s is a n e w extension o f an exist ing rural-oriented system i n order to accommodate urban reality. 136 I n spite o f support f r o m m a n y institutions, regularizat ion o f land tenure is s t i l l a very s l o w 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 pr ior i ty that regularizat ion receives f r o m the government. T h i s delay is also l i n k e d to faulty land registry/cadastre system and a c c o m p a n y i n g entanglement o f property documents. F o r example , some plots have nothing more than a contract o f purchase, w h i l e others have registered property title. T h i s leaves considerable space for challenges to tit le requests, and leaves l o w - i n c o m e populat ion easy prey to unscrupulous lawyers and real estate agents. T h e "regular izat ion as a means o f social integrat ion" approach ( W a r d , 1998) attempts to integrate l o w - i n c o m e populat ions into a set o f social opportunities such as health and education, thereby incorporat ing t h e m into f u l l urban c i t izenry and leading to regular izat ion o f o c c u p i e d land. Because the def in i t ion o f " a g o o d c i t i z e n " is a class-bonded construct, regular izat ion c o u l d eventual ly be used to create an art i f ic ial socia l convergence and conformity . 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 approach are concerned w i t h increased v i o l e n c e i n i n f o r m a l settlements. Favelas are sometimes contro l led by drug dealers and del inquent gangs. T h e y m a y be total ly inaccessible to of f i c ia l p o l i c i n g powers , subject o n l y to the justiceirosx% methods o f v io lence control . S o c i a l integration o f the settlements w o u l d offer an opportunity to enhance soc ia l responsibi l i ty and stimulate the m o d e l i n g o f g o o d examples for c i t izenship. 1 8 "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. 137 H o w e v e r , this ' h o l i s t i c approach' is a n e w concept, w h i c h needs to be more p r o f o u n d l y explored i n terms o f real impact , sustainable i n the face o f strong soc ia 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 in f la t ion and national deterioration o f soc ia l benefits and expenditures are outside the boundaries and the control o f l o c a l communit ies . T h e Guarapiranga 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 and according to some interviewees, the th i rd , ho l i s t i c approach toward the populat ion settled i n the margins o f the reservoir. T h i s v i e w is jus t i f ied by the appal l ing index o f urban v io lence i n some neighborhoods i n this reg ion , considered the most v io lent i n the metropol i tan area. E n d e m i c u n e m p l o y m e n t and the depr ived p h y s i c a l environment o f the area have fostered and mainta ined this t radi t ion o f urban v io lence . T H E WATERSHED PROTECTION L A W AND ITS E F F E C T UPON URBAN EXPANSION W h e n watershed protect ion legis lat ion was proposed, the o f f i c ia l report " D i a g n o s i s 1975" was already w a r n i n g about urban expansion towards the watersheds area (Cesar, 1975). Subsequent urban expans ion has been extensively documented through occupat ion maps by 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 law, urban expansion deviated f r o m prescriptions. T w o facts are related to this expansion. First , the proport ion o f the protected area o c c u p i e d by urbanizat ion was not s igni f icant ly large i n relat ion to the extension o f the total protected areas, nearly 55 percent o f the total area o f the metropol i tan region. Secondly , S P M A urban expansion was l o c a l i z e d 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 urbanized areas. H o w e v e r , expans ion reached the 138 margins o f the Guarapiranga reservoir and the va l ley o f the Juqueri 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 leg is lat ion was part ia l ly attained, except close to the already urbanized area. T h e relative containment o f urban expansion can be attributed to some extent to watershed protect ion mechanisms, but more direct ly to the 1980s s lower rate o f metropol i tan growth, and consequent reduced impetus to urban expansion. U r b a n occupat ion o f the protected area happened i n spite o f the mechanisms for its protect ion part ly because a p o r t i o n o f this area was already prepared for urban use. T h e occupat ion was an extension o f the surrounding urban fabric. In these areas, the poor strata o f the periphery 139 p o p u l a t i o n , already used to clandestine hous ing arrangements, found i tse l f a place to b u i l d . L a c k o f investments i n p u b l i c services and water supply, sewage instal lat ion, proper road systems, and transportation set poor standards for land occupation. C o m b i n e d w i t h fragile b u i l d i n g techniques, they made the occupat ion very harmful . C o n d i t i o n s o f occupat ion were also predatory, i l lustrated by 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. Post-occupat ion and post-construct ion improvements were rare, because it was imposs ib le for residents to self-f inance any i m p r o v e m e n t w h i c h w o u l d take into consideration adequate environmental preservation. T h e occupat ion occurred i n response to intense pressure for areas affordable by populat ions e n d e m i c a l l y depr ived o f f inancia l means and formal mechanisms to obtain any o f f i c i a l help for h o u s i n g (exist ing f inanc ing programs, loans, etc). Thus , w i t h a g r o w i n g contingent o f migrant and displaced people searching for more urbanized areas i n the S P M A , demand for l a n d became intense. It is not surpris ing that the p u b l i c po l ic ies for the watersheds protect ion have been insuff ic ient to contain urban expansion. T h e discourse surrounding watershed protection, a long w i t h mechanisms for d i s c i p l i n i n g h u m a n activit ies w i t h i n the protected drainage basins has had some effect i n a v o i d i n g a larger urban occupat ion o f the areas. A t the same t ime, authorities have been unable to ef f ic iently conta in the urban expansion, i n the face o f extreme pressure towards urbanizat ion. T h e pattern o f occupat ion cannot be attributed solely to watershed protect ion prescriptions per se. It i s , rather, a characteristic o f land use patterns and occupations throughout the region. 140 CONTROL OF L A N D USE F r o m its onset, the discourse around watershed protect ion established a connect ion between watershed qual i ty and control o f h u m a n act ivi ty i n the drainage basin: 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 contro l o f h u m a n activit ies w i t h i n the drainage bas in had 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 aims by speci fy ing where and h o w land occupat ion w o u l d proceed. It def ined the area to be protected, established first category areas, where restr ict ion were prevalent and broad, and second category / class A , B and C areas where fewer restrictions were appl icable . F o r each o f these areas, the l a w established different norms o f land use; occupat ion; i m p e r m e a b i l i z a t i o n ; road design; deforestation; and co l lec t ion , transportation and f ina l dest ination o f waste and sewage. F e w elements o f urban occupat ion were m i s s i n g ( A p p e n d i x B 141 examines i n more detail h o w areas were categorized, to c lar i fy the l a w ' s scope). S u c h a r igorous inst i tut ional stand has rarely been seen i n such 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 pecul iar to the times. It is easy to understand the dif f icult ies i n effectively i m p l e m e n t i n g such draconian legis lat ion. T H E WATERSHEDS AS A COLLECTIVE CONSUMER GOOD P a r a l l e l to land occupat ion issues created by the protect ion laws, the fate o f the Sao P a u l o metropol i tan watersheds is enmeshed i n the dispute between the water supply system for S P M A and the electricity generating sys tem 1 9 . T h i s dispute has taken place i n an urban ecosystem w i t h scarce water resources, w h i c h is under pressure o f urban expansion towards the watersheds. F r o m a strictly technical point o f v i e w , the problems o f water scarcity, urbanizat ion effects w i t h i n the drainage basins, and compet i t ion for A l t o Tiete bas in water resources c o u l d have been resolved. It w o u l d be necessary o n l y to m o b i l i z e soc ia 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 , • Implementat ion o f urban infrastructure, part icular ly sanitation, i n the areas already o c c u p i e d by urban expansion, • Subst i tut ion o f energy sources w h i c h supply S P M A . 1 9 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 quest ion was not mere ly technical . Systems for water supply , sewage r e m o v a l and electr ic i ty generation are co l lect ive consumer goods, i.e., are "mater ia l support o f activit ies destined to the a m p l i f i e d reproduct ion o f a social w o r k force" ( L o j k i n e , 1972). I n fact, their va lue for use is co l lect ive , because they meet needs that can o n l y be addressed co l lec t ive ly . T h e i r use is permanent, because it does not destroy the instal lat ion that col lects the water, de-pollutes the water bodies or generates energy. T h e i r use value is d i f f icul t to separate or be mater ia l ize into products disassociated f r o m the condit ions that produce them. C o n t a i n m e n t o f urban expansion i n the direct ion o f the protected watersheds has been due, m a i n l y , to s l o w e d growth i n S P M A , and only secondly to the watershed legis lat ion. These laws were not effective i n the surroundings o f already-urbanized areas where there was greater pressure towards urbanizat ion. Therefore, it appears that watershed protect ion leg is la t ion was insuff ic ient i n conta in ing expansion o f urbanizat ion w i t h i n the protected area; this indicates that n e w leg is lat ion, per se, w i l l not save the water resources o f S P M A . Part o f the protected area was already prepared for urbanizat ion w h e n the l a w was promulgated. T h i s was an area w i t h l o w urban qual i f icat ion, due to precarious p u b l i c systems for water supply , sewage, roads and transportation. It represented the first o p t i o n for occupat ion b y the poorest strata o f the p o p u l a t i o n i n search for land. T h e p r o d u c t i o n o f differentiated areas by urban qual i f i cat ion is , according to Caste l ls , the " u r b a n stratif ication corresponding to the social strati f ication" (1983). It is also, according to L o j k i n e the "express ion o f the material and intel lectual labor d i v i s i o n , w h i c h resumes the contradic t ion 143 between labor development requirements and capitalist accumulat ion, and that tends to restrict to the m a x i m u m the labor development" (1981). A c c o r d i n g to L o j k i n e , this urban segregation is mot ivated by urban f i n a n c i a l ga in , w h i c h engenders the unequal d is tr ibut ion o f hous ing , the under-serviced w o r k e r s ' ne ighborhoods, and the cr is is o f p u b l i c transportation. It also foreordains areas w i t h the lowest di f ferential g a i n to become urban ghettos (Harvey , 1980) and, at least i n Sao P a u l o , to occupat ion by the w o r k i n g class ( B o n d u k i and R o l n i k , 1979). Thus , the protected areas near already-urbanized areas presented for urban expans ion its readiness for urbanizat ion and its l o w qual i f icat ion, i n an urban locus that destines l o w e r qua l i f i ed areas to the poorest. It was inevitable that the lowest 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 occupy it, because it w o u l d chase away any other soc ia l strata. O c c u p a t i o n o f these areas by the poor populat ion is almost a lways predatory for the watersheds, due to general ized lack o f p u b l i c urban services and equipment: it is the territory o f l o w urban qual i f i cat ion, w i t h very s m a l l lots. T h i s is land accessible o n l y to poor people, w h o are unable to self-finance improvements that w o u l d assist i n environment preservation. In this context, it is not s i m p l y h u m a n activities that determine the "qual i tat ive and quantitative regime o f the drained water o f the watersheds" but rather the f o r m o f these h u m a n activit ies. A l s o , it is not urbanizat ion that w i l l lead to uselessness o f r e m a i n i n g land and that w i l l c o m p r o m i s e possible uses, but m a i n l y the f o r m o f this urbanizat ion (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 So, it is not h u m a n act iv i ty w h i c h squanders the environment, neither is urbanizat ion the o r i g i n o f environment problems. It is necessary to l i n k environmental damage to its proper or ig ins , to "articulate it to the different processes o f the soc ia l structure" w h i c h produce it (Castel ls , 1983). It is necessary to recognize that different forms o f urbanizat ion have different impacts u p o n the environment , and that those forms are determined by the urban qual i f i cat ion o f these areas. I n other w o r d s , i f society and the p u b l i c power provide better-qualif ied areas i n that the poor p o p u l a t i o n m a y settle, and provide better qual i f i cat ion o f protected urban areas, it is l i k e l y that environmenta l damage and watershed contaminat ion can be averted. A n attempt at watershed protection w h i c h l i m i t s i tse l f to the d i s c i p l i n e o f h u m a n activit ies w i t h i n the areas adjacent to the protected watershed, and whose instruments comprehend o n l y the de-qual i f i ca t ion o f these areas for urban purposes, was not enough to conta in urban expans ion i n the borders o f the already urbanized area. It d i d not consider the condit ions o f the area, i.e., its preparation for urbanizat ion, its l o w urban qual i f i cat ion and its destination to the l o w - i n c o m e populat ion . Therefore, it was a failure not o n l y by conceptual contradict ion, but also b y o m i s s i o n and m i s i n f o r m a t i o n . T H E E F F E C T OF THE DISCOURSE AND MECHANISMS UPON T H E URBANIZED A R E A T h e effect o f the watershed protection discourse and the instruments it used was to transfer accountabi l i ty for protect ion to the owners and users o f the area. In fact, regulat ion o f land use, w h i c h predominant ly restricted urbanizat ion and b u i l d i n g s , reduced the u t i l i z a t i o n poss ib i l i t ies o f 145 urbanized and 'urbanizable ' land-holdings, i m p e d i n g v a l o r i z a t i o n and frustrating the expectat ion o f real estate gain. T h e leve l o f conf l ict between people interested i n watershed protect ion and the proprietors and users o f the protected area was determined by the intensity o f real estate de-valuat ion, w h i c h was caused by the severity o f restrictions i m p o s e d o n the land use and occupat ion. Therefore, conf l ic t about watershed protect ion occurred i n response not only to the protect ion itself, but also to the methods adopted to achieve protection. In first category areas, such as m a r g i n a l bands o f protected water bodies, forest and indigenous vegetation, and grades higher than 60 percent, p u b l i c po l ic ies pretended to impede urban uses and obl ige owners to preserve vegetation even i f it was o f no ut i l i ty to them. T h i s leads to idleness o f the areas, and exposed them to i n v a s i o n and forest destruction. F r o m this attitude, it was expected reclassi f icat ion o f the area, w h i c h w o u l d ease land use and forest protect ion restrictions. In second category class A areas, already-urbanized, the legis lat ion established urban restrictions compat ib le for the most part w i t h standards o f the periphery. It l ed to occupat ion o f these areas according to current metropol i tan patterns consistent w i t h the legis lat ion. In second class B and C areas, w h i c h accounted for the r e m a i n i n g and larger part o f protected areas, p u b l i c po l ic ies established urban rules too restrictive i n c o m p a r i s o n to the urbanized area. T h e effect was uncontro l led urban expansion, without m i n i m u m urban standards, around already urbanized areas and i n pre-exist ing allotments. 146 URBAN EXPANSION AND ITS CONSEQUENCES T h e urban expansion o f Sao P a u l o has had 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 tr ied to equip i tse l f through consol idat ion o f normative mechanisms to face this growth. B u t , as c learly s h o w n by the study o f the protected watershed areas, p u b l i c p o w e r has abdicated its responsib i l i ty to manage the c i t y ' s explos ive expansion. T h e private sector has assumed the almost absolute de facto control o f urban land. T h i s process c o n d e m n e d the residents o f the periphery to irregular housing arrangements, i n i l l e g a l and precarious subdiv is ions , i n face o f the exist ing legis lat ion. In addi t ion, the p u b l i c p o w e r has been p a y i n g the price o f a very expensive and badly serviced city . P a r t i c u l a r l y i n the Southern d irect ion o f Sao P a u l o c i ty , i n an area where environmental constraints were important to protect the water resources o f the region, b y this urban 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 took place i n defiance o f legal impediments , 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, and o f state laws w h i c h prescribed the modus operandi for watersheds protect ion. T h e Watershed Protect ion L e g i s l a t i o n complemented exist ing laws governing d i v i s i o n o f urban l a n d lots suitable for land occupations, and defined preventative actions to control p o l l u t i o n and enhance preservation o f the water sources o f the metropol i tan region. H o w e v e r , the legal mechanisms i m p l e m e n t e d had a partial focus, and ignored 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 prevai l i n the urban configurat ion o f Sao Paulo . 147 T h e normat ive mechanisms implemented were restricted to c o n t r o l l i n g and establ ishing rules for land s u b d i v i s i o n , without interfering i n the w a y the urban g r o w t h was happening. T h e mechanisms were insuff icient to e l iminate the distortions produced by the w a y land had 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 accumulated and tradit ional ly , i n patterns w h i c h retained empty spaces for future speculat ion and directed urban expansion towards the periphery. A d m i n i s t r a t i v e and legal mechanisms that w o u l d have a l l o w e d the state to curb the real estate speculat ion were not implemented. T h e problems that emerged w i t h the occupat ion o f protected areas around 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 complete ly containing the occupat ion o f the protected areas. T h e fact that the state neglected to apply the l a w , and gradual ly renounced its responsib i l i ty as enforcer o f the legal prescriptions, c o m b i n e d w i t h structural problems related to urban expans ion to create the present urban situation around 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 problems o f infrastructure and basic water services to the Greater Sao P a u l o region. C o n d i t i o n s reached the serious point where the efficient supply o f d r i n k i n g water to the metropol i tan populat ion was threatened. T h e water resources o f the S P M A , once abundant and adequate, have been progress ive ly deteriorating, due to uncontro l led urbanizat ion i n the watersheds and the fai lure to put i n place an efficient and clear p o l i c y for water preservation and control 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 regional and sometimes even inter-state determined b y geographic features around water bodies rather than p o l i t i c a l boundaries. T h u s , the role o f preventative measures is more urgent and more c o m p l e x . Ef fect ive p o l i c i e s must be established to control p o l l u t i o n and to curb other endangering activit ies i n order to protect the watersheds. These measures must not be restricted to a single inst i tut ional 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 mult i tude o f c i v i l i a n stakeholders w i t h interests depending u p o n the qual i ty and quantity o f water. T h e water resources o f the S P M A have been "protected" by a group o f laws i n place since 1975, but this protect ion has been inadequate to address the c o m p l e x issues i n v o l v e d i n the 149 preservation o f metropol i tan watersheds. Thus , n e w legis lat ion was proposed and extensively discussed, and was f i n a l l y enacted i n late 1997. O p e n acknowledgment o f the mistakes incurred by 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 Watershed Protec t ion L e g i s l a t i o n was the need to address the inst i tutional c o m p l e x i t y o f the S P M A , and to adequately define p o l i c i e s for m a i n t a i n i n g qual i ty and avai labi l i ty o f water resources, and for i m p l e m e n t i n g administrat ive and legal mechanisms for the water 's use and protect ion. Recent r e v i s i o n o f the Watershed Protect ion L a w is brief ly discussed i n this chapter, as it has been a k e y factor i n the Guarapiranga R e c o v e r y P r o g r a m . T h e changes proposed w i l l take effect at a lmost 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 content ion or a means o f support for the achievements o f the P r o g r a m , or even both, depending o n the issues i n v o l v e d . A s part o f the d iscuss ion o f the S P M water resources, and to learn more about the Guarapiranga area where the P r o g r a m is located, a b r i e f expos i t ion 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 occurr ing w i t h i n the protected area surrounding the reservoir. W A T E R SUPPLY IN M S P Water supply problems i n the metropol i tan reg ion 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 populat ion o f the several munic ipa l i t ies w i t h i n the reg ion, 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 — Dis tr ibut ion of water product ion in Sao Paulo 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 lass 4 is unsuitable for h u m a n c o n s u m p t i o n and does not support fishes or any f o r m o f fauna or f lora. Table 6.1 — The W a t e r Supply System for S P M A Water Source Served population Location of water source Class Production m3/s % Total Cantareira 8.7 mi l l ion Atibaia Braganca Paulista and South of Minas State 1 33,0 57 Guarapirang a 3.4 mi l l ion Sao Paulo Itapecerica da Serra Embu Guacu 2 12,0 21 R i o Claro 1.1 mi l l ion Bir i t iba M i r i m 1 4,0 7 Bi l l ings 1.1 mi l l ion Sao Paulo and A B C Region 3 - 4 4,0 7 Alto Tiete 0.8 M o g i das Cruzes and Suzano 1 3,5 6 Al to Cotia Baixo Cotia 0.2 0.1 Cotia 1 1,5 2 Source: SABESP/SOS Mananciais (1996) T h e Cantareira System is responsible for fifty seven percent o f the water de l ivered b y S A B E S P . Because it is located outside industr ia l ized regions and does not present s ignif icant indices o f p o l l u t i o n , this watershed is c lassi f ied as 1. In other words , the water receives s i m p l e d is infect ing treatment p r i o r to being sanctioned for consumption. In 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 Cruzes region), responsible for seven percent o f the supply; the A l t o C o t i a S y s t e m (situated between the towns o f C o t i a and V a r g e m Grande) , that contributes t w o percent; and the A l t o Tiete System (Suzano and M o g i das Cruzes) , w i t h s ix percent o f the water supply. 152 T h e systems w i t h more problematic water qual i ty are the B i l l i n g s and Guarapiranga R e s e r v o i r s , situated w i t h i n the metropol i tan region, and responsible for twenty eight percent o f water supply. I n the B i l l i n g s System, bad water qual i ty is associated not o n l y w i t h industr ia l p o l l u t i o n , but also w i t h the great number o f residents - around 350,000 people - l i v i n g i rregular ly a long the margins 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 poured 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 discharged f r o m the extremely p o l l u t e d R i o Pinheiros into the reservoir dur ing the ra iny periods. I n addi t ion, dur ing drought years, the government has often authorized the forced 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 Cubatao. I n the Guarapiranga System, problems are caused b y dense occupat ion o f its margins by m o r e than 6 0 0 , 0 0 0 people; clandestine sewage connections; i l l e g a l prol i ferat ion o f garbage d u m p s , and also by the h i g h l y damaging act ivi ty o f m i n i n g sand for b u i l d i n g companies . T h e Guarapiranga is actual ly c lassi f ied as class 2, therefore needing m o r e careful treatment than class 1 water bodies. T h e B i l l i n g s System, though, is worse: its water is rated as class 3, and i n certain periods, w h e n the reservoir receives water f r o m the P inheiros R i v e r , it is c lass i f ied as 4 S A B E S P cannot meet the consumpt ion demand o f approximate ly 3.2 m i l l i o n people, w h o frequently do not have water i n their household taps. T o make this scenario worse, approximate ly forty percent o f the distr ibuted potable water is wasted due to clandestine tapping and leak ing . Reports p u b l i s h e d by S A B E S P ascribe this loss to the neglect, for years, o f investment i n efficient c o n t r o l l i n g and maintenance actions. 153 D u r i n g frequent, extensive periods, especial ly dur ing the dry season, part o f the reg ion 's 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 emergency measures, such as d is tr ibut ion shifts, i n order to a v o i d a supply imbalance. Potable water is also wasted w i t h i n the household . E d u c a t i o n a l campaigns are needed to increase awareness and create habits o f o p t i m i z i n g water usage and a v o i d i n g wastefulness. T H E PROTECTION OF THE M R S P WATERSHEDS D u r i n g recent decades, the metropol i tan 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 them. H o w e v e r , measures and concepts discussed took an important turn towards the late 1980s, w h e n populat ion and off ic ials o f different government strata rea l ized the degree to w h i c h water resources were being c o m p r o m i s e d . It was no longer a d iscuss ion o f p o l i t i c a l w h i m s or different environmental 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 by the different inst i tut ional levels o f government, as w e l l as by the populat ion . T h e i r preservation and recovery f r o m early damages assumed pr ior i ty . T h e S P M A lies i n a reg ion w i t h many rivers, streams and headsprings. Its c o n t i n u o u s l y urbanized area covers 31 o f its 39 munic ipa l i t ies . T h e urgent need to protect and preserve watershed areas cannot be disputed. 154 D i a g n o s i s o f the situation should lead to implementat ion 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 progressive recovery, i n quantity and qual i ty , o f water resources. P u b l i c act ion must coordinate, articulate and implement pol ic ies to real ly protect the watershed areas. H o w e v e r , these pol ic ies cannot restrict themselves solely to the appl icat ion and observat ion o f ex is t ing Watershed Protect ion L a w s . These laws are a usable t o o l but should not be the o n l y one. T h e i r effectiveness was as l i m i t e d by their internal ized contradictions and di f f icul t ies presented b y inspect ion and actions to effectively protect the water sources. L a w s , per se, do not transform real i ty. Transformat ion a lways requires continuous h u m a n act ion, persevering and responsible i n e n v i s i o n i n g the accompl ishment , i n this case, o f the desired protection. It is important to consider the act ion o f the state since the incept ion o f watershed protect ion laws. A f t e r that point , this power considered i tse l f to be satisfactory i n these areas, as i f protect ion c o u l d be obtained through the s imple existence o f those laws. P u b l i c p o w e r was not v ig i lant i n the protected areas. T h e y d i d not have enough patrol people i n place and it d i d not p u n i s h violators; d i d not promote concrete actions encourage enterprises consistent w i t h the l a w ; d i d not promote basic sanitation programs i n urbanized areas; d i d not seriously 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 init iated, was intermittent, and d i d not use adequate means and tools. T h e state p u b l i c power is m a i n l y responsible for watershed protect ion because, const i tut ional ly , it has non-transferable responsibi l i ty for the equation and so lut ion 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 two decades, it has been absent f r o m any effective measure to assure this 155 protect ion. Therefore, it does not possess the authority to demand that private agents c o m p l y w i t h ex is t ing laws. T h e real i ty o f the protected watershed basins clearly demanded improvement o f the ex is t ing legis lat ion. T h e elapsed t ime, the unorganized land occupat ion, 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 re lat ion to the occupat ion o f the areas and also b y c i v i l society: everything has contributed to the urgent need to i m p r o v e exist ing laws. M o r e urgent than improvement o f the legis lat ion though, is implementat ion o f effective p o l i c i e s expressed i n concrete act ion for water protection. These pol ic ies must be m o r e consistent w i t h the p u b l i c interest objectives that inspired the laws 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 (disposit ions). A l s o , it is the duty o f state p u b l i c power to lead this process. T h e state must articulate, coordinate, promote init iat ives, provide incentive and lead p u b l i c and private stakeholders to m a k e the p u b l i c interest prevai l over the private. F o r this to happen, it is indispensable that, o n one side, the state government w i l l effectively acknowledge its responsibi l i ty , and o n the other side, c i v i l society, conscious o f its role, w i l l be able to demand f r o m the government the necessary act ion. T H E REVISION OF THE M R S P WATERSHED PROTECTION L A W D i s c u s s i o n o f the protect ion o f watersheds i n the S P M A was, and s t i l l is , very c o m p l e x , transcending the l i m i t s o f narrow legis lat ion, to touch o n socia l , p o l i t i c a l and urban issues. 156 T h e leg is la t ion to be changed is 20 years o l d . D u r i n g the past two decades the s o c i o e c o n o m i c prof i le o f the reg ion 's 39 munic ipa l i t ies , as w e l l as that o f the w h o l e country, has r a d i c a l l y changed. Therefore, distance has g r o w n between the motives o f those w h o h a d formulated the l a w and the exist ing reality w i t h i n watershed protect ion areas. T h i s causes great d i f f i cu l ty i n def in ing objectives, as w e l l as territorial i n c l u s i o n and management systems. There has been consensus, m a i n l y due to profound 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 , around the need for rev is ion. In addi t ion, it is clear that the leg is la t ion d i d not meet its objective o f i m p e d i n g predatory occupat ion o f the preserved area around the reservoirs, r ivers and streams, and that water qual i ty has consequently deteriorated. C o n c e r n for the environment, incorporat ing l i fe qual i ty and species preservation as objectives, has caused government to pr ior i t ize basic sanitation and sustainable development programs for recovery and preservation. H o w e v e r , it has also fostered consciousness o f the need to replace bas ica l ly restrictive legis lat ion w i t h laws that w o u l d induce compat ib le uses o f the water resources, t a k i n g into considerat ion the extol led pr inciples o f the L o c a l A g e n d a 21. I n brief, n e w approaches towards protecting the metropol i tan watersheds w o u l d idea l ly 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 ecosystem, and a natural soc ia l and e c o n o m i c c o m m o d i t y , whose qual i ty and quantity determine its use; • considerat ion o f aspects related to land use and water to be done for the w h o l e b a s i n or sub-basins; 157 • integration o f the measures to protect and conserve water sources, w i t h clear p l a n n i n g for use o f l a n d and forests, and preservation/protection o f water bodies margins and slopes; • considerat ion 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 approach based o n a balanced examinat ion o f populat ion and environment needs. In a d d i t i o n to these aspects, it should take into account n e w const i tut ional precepts a c k n o w l e d g i n g the need for leg is lat ion to be compatible w i t h water resource systems, sanitation and environment, at federal and state levels. O n e can also not forget that i n the S P M A water resource problems extend geographical ly . T h e i r analysis must take into account an area extending 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 reg ion, i n c l u d i n g the C a m p i n a s region, and the B a i x a d a Santista region. T h i s area has seventy percent o f the Sao P a u l o State populat ion. T h i s w i l l require special levels o f par t ic ipat ion and coordinat ion, n e w to the B r a z i l i a n government inst i tut ional f ramework. T h e a i m should be to articulate exist ing supply systems and those i n process o f implementat ion . T h e goal s h o u l d be a comprehensive management o f the s o c i o e c o n o m i c and physica l - terr i tor ia 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 S P M A , and other metropol i tan 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 leg is la t ion for the watershed protections remains to be seen. A g a i n , it is important to remember that laws are just 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 and adjustment o f p o l i c i e s 158 established b y these laws, 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 and changes dictated by gains i n the e c o n o m i c or p o l i t i c a l sphere. T H E GUARAPIRANGA HYDROGRAPHIC BASIN T h e total area o f the Guarapiranga basin, i.e., the reg ion drained b y the r ivers and streams i n the bas in , is 63,698.21 ha. It is the catchment area o f the second largest water supply source for the S P M A . T h e Guarapiranga B a s i n is spread through the munic ipa l i t ies o f Sao P a u l o , E m b u , E m b u -G u a c u , and Itapecerica da Serra, and includes s m a l l portions o f C o t i a , Juqui t iba , Sao L o u r e n c o , Sao V i c e n t e and Itanhaem. T h e p r i n c i p a l r ivers are the E m b u - M i r i m and E m b u - G u a c u . A c c o r d i n g to reports f r o m the U n i t for the M a n a g e m e n t o f the Sanitat ion P r o g r a m o f Guarapiranga ( U G P ) , the bas in had, i n 1995, a populat ion o f 622,500, distr ibuted 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 populat ion has l o w e r and extreme l o w e r incomes: 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 is o c c u p i e d w i t h i l l e g a l subdiv is ions and favelas, and has no infrastructure. A p p r o x i m a t e l y 70 percent o f the total p o p u l a t i o n are w i t h i n Sao 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 reservoir borders and margins o f r ivers. Table 6.2 — D i s t r i b u t i o n of Populat ion i n the G u a r a p i r a n g a B a s i n Municipality Population % of total E m b u 51,653 8.30 Sao Paulo 419,263 67.36 Itapecerica da Serra Embu-Guacu 102,986 45,171 16.55 7.25 159 Cotia 1,855 0.30 Sao Lourenco 535 0.08 Juquitiba 1,044 0.16 T O T A L 622,507 100.0 Source: R I M A , UGP, Sao Paulo, 1996 A g r i c u l t u r a l act iv i ty is largely loos ing its importance, and urban p r o d u c t i o n act ivit ies are characterized by in formal i ty . There is no structured e c o n o m i c act iv i ty predominant w i t h i n the basin. F i g u r e 6.2 — M a p of 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 for T e c h n o l o g i c a l Research o f Sao P a u l o ( IPT) has developed an analysis o f the natural f ragi l i ty o f the bas in and the dangers o f occupat ion ( P h y s i c a l A p t i t u d e for H u m a n Settlements). F r o m informat ion such as landscape var iat ion, s o i l characteristics, and natural vegetation, this report attempts to define guidel ines for urban expansion and technica l cr i ter ia for s u b d i v i s i o n projects. T h e goal is to m i n i m i z e geo-technical problems, i n part icular erosion, s o i l s l i d i n g , s i l t ing and f l o o d i n g . T h e I P T study subdivides the Guarapiranga B a s i n into four classes according to capacity to support urbanizat ion: favorable areas; areas w i t h l o c a l i z e d restrictions; areas for eventual occupat ion w i t h serious restrictions; and areas w i t h severe restrictions. T a b l e 6.3 shows the results o f this analysis. Table 6.3 — Physical Aptitude for Human Settlement within the Guarapiranga Basin Aptitude Class Area in H a % of Total 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 Areas o f parks and reserves 782.18 1.23 T O T A L 63,698.21 100.00 Source: ISA SP, 1998 M o r e than h a l f (59.71 percent) o f the total Guarapiranga 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 urban g r o w t h or urban 161 occupat ion i n these areas generates negative impacts o n the environment. O n l y f ive percent o f the areas are adequate for urbanizat ion. F i g u r e 6.3 — M a p of the Phys ica l Apt i tude for 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 land occupat ion developed by the Instituto S o c i o A m b i e n t a l ( I S A ) complements the analysis o f the environmental conservation o f the basin. T h i s w o r k determines h o w m u c h o f the reg ion has already suffered alteration, the impact o f this alteration o n the o r i g i n a l environment, and the l i k e l y impact o f these alterations, i n cases where no measures are taken to curb them. T a b l e 6.4 shows the evo lut ion o f occupancy between 1989 and 1996, according to sub-basins o f the Guarapiranga area. A n a l y s i s o f land use was achieved by c o m p a r i n g satellite images, developed by the N a t i o n a l Spat ia l Research Institute ( I N P E ) between 1989 and 1996. L a n d uses chosen were: urban expans ion (urban areas i n format ion or growing) ; bui l t areas (areas already consol idated); atrophic f ields (non-urban areas altered by h u m a n activit ies, such as agriculture and pasture); exposed s o i l (areas wi thout vegetation, native or introduced); native forest covered areas ( M a t a A t l a n t i c a i n several stages o f regeneration); and non-native forest cover (s i lv icul ture o f eucalyptus and pinus) . T h r o u g h this analysis it was possible to establish w h i c h land 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), and w h i c h had negative e v o l u t i o n (larger areas i n the 1989 images). These data revealed that the posi t ive factors i n terms o f the protect ion o f the B a s i n (native forest cover and s i lv iculture) d i m i n i s h e d d u r i n g the analysis p e r i o d , and the negative factors (urbanization, exposed so i l and atrophic f ields) increased 163 s igni f icant ly . T h i s evidence makes it more urgent to implement measures to protect the b a s i n and contro l negative aspects o f land occupation. Table 6.4 — Evolution of land use in the Guarapiranga Basin by sub-basins: 1989-1996 Year: 1989 1996 Variation H a % H a % H a % Bui 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 Mata Atlantica initial: in regeneration 6,937.65 10.89 5,237.00 8.22 -1,700.65 -24.51 Mata Atlantica medium/advanced: in regeneration 24,370.20 38.26 19,989.30 31.38 -4,380.90 -17.98 Mata Atlantica dense: in regeneration 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 T O T A L 63,698.21 100.0 63,698.21 100.0 Source: ISA SP, 1998 Sub-basins near the reservoir are under signif icant stress. In the m a p o f the sub-basins b e l o w , sub-basins 4, 5b, 6 and 7 are t y p i c a l l y urbanized, w i t h urbanizat ion coefficients above 75 percent. Sub-basins 2 0 , 24, 19, 21 and 22, o n the other hand, have coefficients b e l o w 4 percent. T h e sub-164 basins h a v i n g more forest cover, and therefore more protect ion, are more distant f r o m the reservoir. I n contrast, the urban sub-basins, i n v o l v i n g pract ica l ly the w h o l e G u a r a p i r a n g a reservoir, have less forest cover and less protection. T h e I S A study s h o w e d w h i c h sub-basins have suffered greater impact. A surpris ing result was that the sub-basins that suffered m o r e hydro degradation 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 urban concentrat ion and scarce native vegetation. Rather, the sub-basins that suffered more impress ive hydro degradation were 5d, 10, 14, 16, 21, 22 , 13, 14 and 26. Greatest impact was seen i n those w i t h the highest density o f native forest cover, part icular ly sub-basins 2 0 , 22 , 24 and 26. T h e results demonstrate that the direct ion o f efforts towards the recovery o f the sub-basins surrounding the reservoir is not entirely correct. I f immediate measures are not taken to preserve the sub-basins that currently have the best environmental condit ions , resources spent i n the neighborhoods and c o m m u n i t i e s surrounding the reservoir w i l l not be sufficient to guarantee the qual i ty and quantity o f the water f r o m the Guarapiranga. These sub-basins are the i n i t i a l source o f water, and 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 T h i s chapter describes and analyses the P r o g r a m for E n v i r o n m e n t a l Sanitat ion o f the Guarapiranga Watershed (also referred as Guarapiranga R e c o v e r y Program). It examines h o w the P r o g r a m was c o n c e i v e d and implemented, the m a i n agents and 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 funded the P r o g r a m . It was designed to undertake preventative and corrective act ion, as w e l l as to i m p r o v e management o f the watershed by establishing a n e w range o f activit ies w i t h i n the area, descr ibed i n Chapter 6. L o c a t e d i n the Southwest o f S P M , the Guarapiranga Reservoir was bui l t between 1906 and 1908, w i t h the objective o f generating electricity for the Parnaiba Station i n the Tiete R i v e r . I n 1927, the reservoir was integrated into the water supply system for S P M . I n i t i a l l y , the reservoir contributed w i t h 1 m 3 /s. Its contr ibut ion gradual ly increased 10.7m7s, w h i c h corresponds to 20 percent o f the S P M A water supply. T o d a y , approximately 3.4 m i l l i o n people depend o n the Guarapiranga reservoir, and it is the region 's secondary system ( I S A Report , 1998). In the 1970s, special leg is lat ion was promulgated to control the use and occupat ion o f a l l watershed areas s u p p l y i n g the metropol i tan area. These laws, as discussed p r e v i o u s l y , had as 167 their m a i n objectives the maintenance and improvement o f the water sources, to guarantee their capacity to f u l f i l l the water demand o f the metropol i tan populat ion. I n spite o f these legal instruments, w i t h i n the last two decades there has been an inordinate and chaotic occupat ion o f the watershed areas, part icular ly around the Guarapiranga reservoir. T h e increased d e m a n d for land created by accelerated urbanizat ion o f the reg ion, as w e l l as the p r o x i m i t y o f the reservoirs to the important industr ia l pole o f South Sao P a u l o , is a m o n g the most important factors b e h i n d this occupation. 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 dwel lers . The remaining 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 land wi thout any sanitary infrastructure), and residents o f the area pr ior to the leg is lat ion ( S R H S , R e p o r t 1993). T h e f o r m and rate o f occupat ion are a larming, and represent an increasing threat to the water qual i ty o f the Guarapiranga Reservoir . T h e most serious p r o b l e m is the v o l u m e o f organic mater ia l , especial ly f r o m domestic sources, that is discharged w i t h no treatment into water bodies connected to the reservoir. T h i s p o l l u t i o n causes eutrophication o f the water bodies, by 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 and other microorganisms. T o d a y , phosphorus and nitrogen concentrations i n the water are r i s i n g constantly, putt ing the water at r isk. T h e first major cr is is i n the Guarapiranga Reservoir happened i n 1990, w h e n algae spread throughout the reservoir, affecting the qual i ty o f water. These algae liberate toxins and g ive water an unpleasant taste and nasty odor. T h e i r growth was nourished by organic discharges i n the 168 reservoir - the domestic sewage. In some instances, algae b l o c k e d S A B E S P fi lters, such was their quantity. I n 1991, faced w i t h the r isk o f l o s i n g the reservoir as a water source due to increasing contaminat ion, the State o f Sao P a u l o Government created a task force to des ign a sanitation and environmenta l p r o g r a m for the Guarapiranga Watershed, under the c o o r d i n a t i o n o f the Secretariat for the Water Resources and Sanitation ( S R H S ) . I n 1992, the State o f Sao 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 and the W o r l d B a n k signed a loan contract for the recovery o f the Guarapiranga Watershed area, a l locat ing U S $ 262 m i l l i o n for the Project for Environmental Sanitation of the Guarapiranga Watershed ( W B P r o g r a m Report , 1992) A s stated i n the of f i c ia l documentation, the m a i n objectives o f the Project are: • to ensure the qual i ty o f the water supply o f the Sao P a u l o M e t r o p o l i t a n R e g i o n • to develop l o c a l technical , f inancia l and institutional capacity for the management o f the bas in , w i t h i n sustainable development pr inc ip les ; • to ameliorate the l i fe qual i ty o f the 548,000 residents o f the watershed area, through o p t i m i z a t i o n and expansion o f the sanitation network (sewage, garbage c o l l e c t i o n and f ina l disposal) • to create parks and green areas, and restore native forest. T h e P r o g r a m has encountered problems during implementat ion due to the s l o w disbursement o f funds, part icular ly for soc ia l hous ing projects f r o m the Sao P a u l o State. M u c h has been achieved, but questions r e m a i n regarding maintenance o f these achievements. T h e continuous i n f l u x o f 169 n e w residents to the exist ing and upgraded favelas around 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 condit ions, is part icular ly worr i some. A l s o , di f f icult ies ar is ing f r o m uneven access to technical expertise and resources experienced by m u n i c i p a l i t i e s w i t h i n the basin, illustrates the c o m p l i c a t i o n o f m a i n t a i n i n g i n f o r m a t i o n , m o n i t o r i n g , and investment to sustain the P r o g r a m ' s gains. A b s e n c e o f real cooperat ion between i n v o l v e d institutions and agencies has made the project d i f f icul t to implement . T h e educational component , very important to sustaining gains o f the p r o g r a m through popular awareness o f preservation, has been extremely weak, and has not, so far, had a s ignif icant impact . M o r e than anything else, complaints about the leve l o f c o m m u n i t y and N G O s part ic ipat ion 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 concern, because it shows evidence that the real challenge o f m e d i u m and l o n g term preservation w i t h i n the bas in has not been taken into account: no s ignif icant effort is be ing made 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, and urgently need protective measures. T H E PROGRAM T h e P r o g r a m was init iated i n January 1993, f o l l o w i n g the loan agreement. It was designed as both a corrective and preventative strategy to m a i n t a i n the reservoir as a healthy and rel iable source o f water for the S P M A . T o achieve its goals, the P r o g r a m proposed these strategic points: 170 • emergency corrective measures: expansion o f sewer system; improvements i n s o l i d waste c o l l e c t i o n and disposal services; the rehabi l i tat ion o f the urban areas affected by s o l i d waste d isposa l ; m o d e r n i z a t i o n and rehabi l i tat ion o f urban drainage systems; the construct ion o f basic sanitation and other infrastructure faci l i t ies i n l o w - i n c o m e c o m m u n i t i e s ; the re-urbanizat ion o f s lums; the resettlement o f residents o f r isk areas; the reforestation o f r ivers banks and p u b l i c areas; and the creation o f parks and leisure areas. • m e d i u m and long-term preventative measures: a basin management strategy that combines correct ive mechanisms w i t h a long-term prevention strategy according to an E n v i r o n m e n t a l Protec t ion and 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 operational unit ; adopt ion o f i m p r o v e d manageria l instruments; more effective f iscal and m o n i t o r i n g act ivit ies; p r o m o t i o n o f environmental education and environmental ly safe activit ies; and sector studies and projects i n h o u s i n g , s o l i d waste, sewerage and drainage, m i n i n g and water qual i ty contro l to assess h o w the private sector can be attracted to this area. I n order to m a k e these measures more efficient, the P r o g r a m planned three sets o f operational tools: • i n f o r m a t i o n base and assessment tools: a geographic i n f o r m a t i o n system; a water qual i ty m o d e l that relates land use and water qual i ty i n the reservoir; e c o n o m i c and f inanc ia l mechanisms for sustaining watershed assessment; and technical directives for l a n d use and infrastructure systems operation; 171 • program monitoring: ongoing technical verification of water quality; and monitoring and enforcement of the operational and financial responsibilities of institutions and agencies involved; • reorganization of the institutional framework: the heart of the program is a new management paradigm consisting of an integrated network of several institutions, including local authorities, community leaders, universities, research institutes, and non-governmental organizations. Sector Inputs OBJECTIVE Management Strategy Housing Solid Waste Drainage Sewerage Mining Water Quality Control Water resource conservation (quality and quantity) ^1 Watershed Master Plan Incentives tor economically and environmentally sustainable activities Management Instruments GIS Correlational Economic model land and use and financial water quality costs I Institutional Framework Technical Directives F i g u r e 7.1 — G u a r a p i r a n g a Watershed 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 in the next five years from 192 kg/day to 87 kg/day. A t the time of the fieldwork, the following specific projects were being implemented: 172 expans ion o f the sewer c o l l e c t i o n network; upgrading o f s lums and squatter settlements; i m p r o v e m e n t to exis t ing inoperative sewer network; 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 and disposal ; a c q u i s i t i o n o f street c leaning equipment; restoration o f borderland vegetation i n rai lroads, roads and water bodies; 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 sh species and evaluat ion o f a proposed pisc icul ture (f ish farming) project; m i n i n g contro l and correct ion o f m i n i n g techniques; l y m n o l o g i c a l diagnosis and control p l a n for algae b l o s s o m ; assessment and control o f diffuse p o l l u t i o n sources; re-registering o f industr ia l p o l l u t i o n sources; programs for sanitary and environmental education; leadership t ra in ing; reinforcement o f land occupat ion controls; feas ibi l i ty studies for e c o n o m i c ventures i n the watershed area; a management p lan . Institutional Arrangement 173 Figure 7.2 — Guarapiranga Watershed Management Source: WB, 1995 An 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. Technical Groups Water Resources State Council Water Resources State Fund (FEHIDRO) State Secretariat Municipalities Society University Public Minislry Waterbasm Committee State Society Municipalities 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 - CDHU (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 Water Resources: • extension o f the sewage network and iso lat ion o f sewer systems, to serve approximate ly 80 percent o f the populat ion; • operational improvements i n the exist ing sewage network (serving 2 7 0 , 0 0 0 people) ; • i m p r o v e m e n t o f the water treatment process, us ing n e w techniques to control algae b l o s s o m and euthrophicat ion; • 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 and Itupu r ivers , Guarapiranga reservoir tributaries; • i m p r o v e m e n t (correction and extension) and environmental control o f the c o l l e c t i o n , treatment and f ina l d isposal o f garbage w i t h i n the munic ipa l i t ies o f E m b u , E m b u G u a c u and Itapecerica da Serra; • a c q u i s i t i o n o f equipment for street c leaning and garbage co l lec t ion; • creat ion o f a computer ized managerial in format ion system and a management p l a n ; • environmenta l and sanitation education programs; • technica 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 and M u n i c i p a l Secretariats for H o u s i n g : • re locat ion o f residents out o f cr i t i ca l areas, where it is not poss ible to extend the sewage system and garbage co l lec t ion , and f r o m areas subject to f l o o d i n g and landsl ide; • construct ion o f p u b l i c housing. U n d e r the State Secretariat for the E n v i r o n m e n t : 175 • diagnosis o f native vegetation and creation o f models to restore native vegetation; • restoration o f vegetation surrounding water bodies, and i n road and ra i l road borderlands, w i t h i n the watershed areas ( " M a t a C i l i a r " ) ; • urban reforestation; • des ign and b u i l d i n g o f parks: E c o l o g i c o do Guarapiranga; I lha 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 F r a n c i s c o R i z z o ; E c o l o g i c o da Repres inha; A q u a r i o ; • rev i ta l i zat ion o f the historic tourist center o f E m b u - Praca dos Jesuitas; • implementat ion o f f i shing and pisc icul ture projects; • adjustment and control o f m i n i n g sites; • l y m n o l o g i c a l and 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 industr ial 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 / evaluat ion o f diffuse sources o f p o l l u t i o n ; • sanitation and environmental education; • analysis o f the e c o n o m i c feasibi l i ty o f enterprises environmenta l ly compat ib le w i t h b a s i n protect ion; • in troduct ion o f equipment for patro l l ing 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 descr ipt ion o f achievements o f the P r o g r a m at the t i m e o f the f i e l d w o r k , w i t h a re lat ion o f the p r i n c i p a l projects. 176 T H E ACTUAL STAGE OF THE GUARAPIRANGA PROGRAM T h e Guarapiranga P r o g r a m has e v o l v e d over three reasonably dist inct phases. T h e first phase o f f i c i a l l y f in ished w i t h the s igning o f the loan agreement between the B r a z i l ' s governments (federal, state and 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 ime, a w i d e range o f act ivit ies (corrective and preventative p h y s i c a l interventions, technical projects, sc ienti f ic studies) was prepared, w h i c h constituted the P r o g r a m base, and these were distr ibuted a m o n g an equal ly w i d e group o f p u b l i c institutions, responsible for the P r o g r a m development. T h i s was a c lear ly successful stage. T h e t ime allotted for the preparation, a l though short, permitted the assembly o f an innovat ive technical and inst i tutional program, whose chosen route has sought to break the inert ia o f the several compartments o f the p u b l i c administrat ion. T h e second phase was the implementat ion 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 implementat ion o f the P r o g r a m was frustrated by undef ined administrat ive act ion and consequent di f f icult ies for the f inancia l counterpart resources f r o m the state, w h i c h needed to be avai lable at the same t ime as the W B resources. D u r i n g this per iod , very l itt le was accompl ished. S P M started urbanizat ion w o r k s i n seven s lums that sheltered 2,000 famil ies . S A B E S P f inished the w o r k necessary for revers ion, d u r i n g dry seasons, o f the G u a v i r u t u b a and Itupu rivers, the two more 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 addit ion, it init iated operational improvement o f the networks and m a i n col lectors o f exist ing sewers, and re-designed complete extension plans for the sanitary d r a i n i n g system (without c o m p l e t i n g tender procedures for in i t ia t ion o f the w o r k ) . T h e U G P init iated studies for a comprehensive p l a n for development and environmental protect ion o f the water 177 basin. Water condit ions i n the reservoir were stabi l ized, m a i n l y due to water qual i ty m o n i t o r i n g by S A B E S P (though w i t h s t i l l d isquiet ing levels o f po l lut ion) . T h e th i rd phase was and is be ing m a r k e d by the clear de f in i t ion o f the P r o g r a m ' s pr ior i ty i l lustrated by resolut ion o f the lateness o f payments to constructions companies and consultant f i rms contracted. Several act ivi ty fronts were open 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 was accelerated, to the point that, i n spite o f some schedule delays, eva luat ion by the W B i n D e c e m b e r 1995 was posit ive. T h e pract ica l and more signif icant 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 ex is t ing sanitary systems. It conc luded tender processes for construct ion o f the network sewer expansion, m a i n collectors and sewer elevation stations. These contracts totaled U S $ 58 m i l l i o n . • S P M f in ished urbanizat ion w o r k s i n four o f the seven s lums i n i t i a l l y targeted. T h e others are be ing conc luded. E i g h t y famil ies were r e m o v e d f r o m these s lums and p laced 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 lums are complete , and contracts for construct ion w o r k are expected to f o l l o w . • C D H U w i l l complete construction o f 900 housing units for the fami l ies to be r e m o v e d f r o m the thirty s lums being upgraded by S P C . It has also init iated plans to upgrade s l u m areas i n E m b u , Itapecerica d a Serra, and E m b u - G u a c u , munic ipa l i t i es 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 made several contracts, especial ly those concerning construct ion o f the Parque E c o l o g i c o do Guarapiranga, the largest park o f the P r o g r a m , and updated registrat ion 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 in format ion system o f the watershed area, S I G - S is tema de Informacoes Geograf icas da 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 in format ion. S I G w i l l be operated i n an integrative f o r m ; the equipment necessary to its operat ion is be ing tendered. T h i s project is part o f the development and environmenta l protect ion p l a n for the watershed area. • T h e C o n s e l h o C o n s u l t i v o do P r o g r a m a Guarapiranga (Consultat ive C o u n c i l for the Guarapiranga Program) is a tripartite organism that brings together representatives o f the state government, o f watershed area munic ipa l i t ies and c i v i l society. It constitutes a f o r u m for f o l l o w - u p and discuss ion o f activities dur ing p l a n n i n g and implementat ion. W h i l e not total ly auspic ious, outcomes o f this phase have posi t ive aspects. I n part icular , col lected sewage v o l u m e was increased through extension o f the c o l l e c t i o n network, r e d u c i n g the amount o f sewage carried by streams to the reservoir. A l s o , urbanizat ion o f seven s lums permitted implementat ion o f sanitation systems, as w e l l as general i m p r o v e m e n t o f hous ing condit ions o f these settlements. T h e p h y s i c a l interventions i n process, and the ones to be init iated a l l o w us to foresee n e w possibi l i t ies for i m p r o v e m e n t o f l i v i n g condit ions around the Guarapiranga, w i t h associated maintenance o f reservoir water qual i ty (equal to its qual i ty o f three years ago). 179 T h e development o f technical tools, such as S I G , w i l l l i k e l y open the w a y to a n e w management approach for the Guarapiranga reservoir. H o w e v e r , it is important to consider that the effectiveness o f these tools depends o n a l o n g overdue innovat ive inst i tut ional approach, i n w h i c h i n f o r m a t i o n is constantly and re l iab ly col lected and shared a m o n g m u n i c i p a l i t i e s , inst i tutions, and p u b l i c corporations. In spite o f demonstrated advances, the future is uncertain. A fundamental concern is to f i n d w a y s o f strengthening and disseminat ing 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 inst i tutional organizat ion and strategy to deal w i t h the several aspects o f management o f the water bas in territory. I n other w o r d s , the search for w a y s to conta in urban occupat ion o f the watershed area s t i l l presents a great chal lenge to the future o f the watershed. T h e issue o f territorial control opens a w i d e range o f questions. It opens up d i s c u s s i o n about the funct ion and l i m i t s o f the state i n its inst i tutional capacity: what is i n reality the range o f urban p l a n n i n g ? These questions extend also to the r e v i s i o n o f exist ing leg is lat ion o f S P M A watershed protect ion. 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 activit ies - sector p l a n n i n g , e x p a n s i o n and operat ion o f sanitation p h y s i c a l infrastructure systems, transportation, roads, drainage, equipment, 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 and 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 posi t ive impact u p o n projects and plans for 180 recovery o f the B i l l i n g s Reservoir , the Capivar i/Pirac icaba, and Paraiba do S u l watersheds, programs i n incubat ion, w h i c h address the c o m p l e x relationships between urban e c o n o m i c development and environmental protection. T h i s is a theme relat ively n e w to the B r a z i l i a n p u b l i c agenda, and needs to be openly 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 implementat ion, the Guarapiranga 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 and degradation. It focuses o n p r i o r i t y actions to address the most cr i t ica l factors i n water qual i ty deterioration. These actions comprise several sub-programs a i m e d at preventing the loss o f this water source, w h i c h direct ly or indirec t ly affects the l ives o f people i n the S P M A . T h e P r o g r a m also tries to explore n e w poss ib i l i t ies for environmental interventions i n the context o f megacities. Nonetheless , some o f the goals have not been accompl ished, either because o f specif ic c ircumstances d u r i n g implementat ion, such as a change o f m u n i c i p a l or state government, or because gaps i n the conceptual f ramework affected its design. T h i s research c o m m e n t s o n the sui tabi l i ty o f var ious P r o g r a m actions and implementat ion procedures. A l s o , to m o r e complete ly understand the issue o f tenure security w i t h i n the watershed protect ion area, it discusses reflections o f c o m m u n i t y leaders interviewed. T h e interviews i n particular, a long w i t h newspapers' articles col lected, i n i t i a l l y suggested t w o m a i n approaches to evaluating the P r o g r a m ' s performance: 181 • problems o f project design • barriers to project implementat ion. Y e t , l i n k s between these two approaches became more obvious 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. Furthermore, detailed analysis o f o f f i c i a l data, documents and support ing b i b l i o g r a p h i c material brought c lar i f icat ion to the issue o f accountabi l i ty , so this was e x p l o r e d i n re lat ion 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 had m a n y posi t ive impacts that should be acknowledged, because they c o u l d hardly have been obtained without the P r o g r a m . T h e y emerged f r o m activit ies and experiences o f the des ign and implementat ion phases, and exempl i fy advances i n the fight against environment degradation i n Sao Paulo . 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 re inforc ing changes to the Watershed Protect ion L a w ; • the P r o g r a m has had a posi t ive impact i n the recovery o f degraded areas; • the P r o g r a m has so lved some immediate problems aris ing f r o m occupat ion o f dangerous areas; • a base o f l o c a l k n o w l e d g e has been developed that can be appl ied to s i m i l a r projects w i t h i n the metropol i tan area; • there have been gains i n loca l people 's capacity; • the P r o g r a m has exposed the role o f government i n encouraging occupat ion o f watershed reservation areas; • Watershed B a s i n Commit tees have been strongly reinforced; 182 N e g a t i v e impacts i l lustrate the P r o g r a m ' s conceptual frailties. Aspects that s h o u l d have been addressed at the design stage, m a n y o f them associated w i t h the specif ic condit ions faced by Sao P a u l o i n the 1990s, have l i m i t e d the poss ib i l i ty o f attaining the expected results w i t h i n a def ined t ime frame. T h e f o l l o w i n g list outl ines where the P r o g r a m appears to be h a v i n g negative impacts , or to complete ly lack forceful effect: • the P r o g r a m ' s inst i tut ional c o m p l e x i t y is an enduring obstacle to i m p l e m e n t a t i o n o f long-term p o l i c i e s ; • coordinat ion within and between p u b l i c agencies is very di f f icul t ; • inst i tut ional support and capacity at the m u n i c i p a l l eve l is uneven; • attainable l o c a l goals are di f f icul t to address; • there has been l i m i t e d involvement o f l o c a l populat ion; • there is no acknowledgment o f c la ims to tenure security by the resident p o p u l a t i o n ; • the P r o g r a m has had no impact o n national hous ing pol ic ies ; • the pre-exist ing Watershed Protect ion L a w has presented a strong inst i tut ional barrier; • development o f and response to environmental education programs has been l i m i t e d ; • there appears to be l i tt le p u b l i c knowledge o f the P r o g r a m and poor p u b l i c awareness o f f o l l o w - u p ; • no clear security procedures have been put i n place to guarantee f o l l o w - u p and maintenance. 183 T H E FINDINGS T h e first s ignif icant posi t ive impact o f the P r o g r a m has undoubtedly been the r e v i s i o n o f Watershed Protect ion L e g i s l a t i o n . I n spite o f being i n operation for a l o n g t i m e 2 0 , the P r o g r a m created sufficient p o l i t i c a l m o m e n t u m to push for the m o d i f i c a t i o n o f laws. T h e n e w proposa l for watershed protect ion presented by the E n v i r o n m e n t Secretariat is surpr is ingly good. It is not o n l y a r e v i s i o n o f o l d legis lat ion, but offers a p r o m i s i n g n e w approach for the protect ion and recovery o f Sao P a u l o State watersheds. S o m e o f posi t ive aspects o f the proposal for the legis lat ion are decentral ized management b y basins or sub-basins, recogni t ion o f the diversi ty and the need for special actions i n the areas to be protected or recovered, and c o m m u n i t y part ic ipat ion i n management and preservation o f water resources. T h e n e w tools introduced i n the proposal expand the possibi l i t ies o f act ion by p u b l i c powers and society. T h e y permit a departure f r o m p a r a l y z i n g discuss ion, i n w h i c h arguments bui l t o n restrictive, normat ive and generic concepts have predominated, o n l y advocat ing occupat ion taxes and indices , densities, and land use coefficients. T h e discourse has usual ly addressed generalities around i d e a l i z e d and l i m i t e d models that treat structurally diverse situations i n a homogeneous way . T h e L a w ' s 20-year existence has demonstrated that neither were watersheds protected nor 2 0 The long and extensive discussion of this legislation and its consequences is presented in Chapters 4 and 5, Annex A. 184 d i d urban occupat ion happen w i t h i n the prescriptions o f the leg is lat ion i f a conf l ic 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 no longer to establish leg is la t ion to protect a unique space, but has shifted to management o f speci f ic fragments o f this space, the water basins or sub-basins, throughout the state. T h e idea o f divers i ty as a structural component o f p u b l i c intervention i n the protect ion o f water resources is extremely pos i t ive . It w i l l be addressed by formulat ing environmental protect ion strategies speci f ic to each watershed area, establ ishing and def in ing watershed sub-basins w i t h regional interest. T h e areas under urban occupat ion 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 and socia 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 admit t ing the diversi ty o f exist ing situations i n the 4,356 k m 2 protected by the ex is t ing leg is la t ion ( f rom the 8,051 k m 2 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 progress toward preserving the watersheds. A n d , without inst i tutional acknowledgement o f effective occupat ion i n some areas - more than 600,000 people o n l y w i t h i n the Guarapiranga alone- it w i l l be i m p o s s i b l e to formulate pol ic ies and 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 develop 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 cultural and social spaces that are independent o f these l i m i t s . Therefore, in ter -munic ipa l questions are fundamental and relevant, especial ly c o n c e r n i n g p u b l i c management o f the spaces outside the l i m i t o f the basins. In metropol i tan regions the cont inui ty 185 o f the bui l t environment cannot exist without a p o l i t i c a l entity that articulates and harmonizes the different m u n i c i p a l interests. I n S P M A , it is clear that the metropol i tan d i m e n s i o n must be incorporated into waterbasin management. T h e propos i t ion o f regional counci ls should be the first step towards a m o r e concrete d iscuss ion o f metropol i tan levels o f governance necessary for a complete approach to S P M A sustainabil i ty . T h e root causes o f water qual i ty degradation must be examined. Predatory urban occupat ion is , wi thout quest ion, a factor, but it is a surv iva l response by poor people to the p u b l i c neglect and an absence o f h o u s i n g alternatives. Other causes o f environmental degradation, such as industr ia l act iv i ty , must be addressed w i t h p u b l i c po l i c ies , to control the release o f l i q u i d waste. T h e fact that rules exist does not mean they w i l l be implemented. Enforcement efforts are necessary, but not easy to put into practice due to the exist ing legal and j u r i d i c a l " m a z e ' , and to the t radi t ion o f corrupt ion i n the p o l i c i n g structure. I n evaluat ing the performance o f government projects, the concept o f governance is a k e y part o f the analyt ica l f ramework. 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 inner capacity to adapt to unforeseen circumstances. T h e governance concept is , though, very elusive. Governance can be defined as "the manner i n w h i c h p o w e r is exercised i n the management o f a country 's e c o n o m i c and social resources for deve lopment" ( W B 1992). Therefore, it is in tr ins ica l ly connected to the w a y any specif ic development project is i m p l e m e n t e d or managed. 186 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 been used. H i s t o r i c a l l y restricted b y an absence o f democratic relationship between c i v i l society and government, B r a z i l i a n structures have not yet internal ized a concept o f governance, where the state is important as mediator 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 most 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 embodies popular part ic ipat ion i n the p u b l i c sphere based o n c i t i zenship r ights" ( F e d o z z i , 1994). It should also represent a m o d e r n and democrat ic re lat ionship between government and c i v i l society, and have bureaucratic-administrative ef f ic iency 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 technical aspects o f the issues to be dealt w i t h . Therefore, questions about the advance o f democracy, decentralization, the corroborat ion o f better governabi l i ty and the p r o m o t i o n o f development have been converg ing towards the l o c a l space or l o c a l power , reaf f i rming the p o l i t i c a l importance o f m u n i c i p a l units i n the e c o n o m i c and soc ia l spheres. M a n y changes since the 1980s have affected the importance o f the B r a z i l i a n m u n i c i p a l i t y : inst i tut ional changes, re-articulations w i t h i n c i v i l society, decentral ization tendencies and the e c o n o m i c cr is is . These changes have brought into focus themes such as federation, democracy , decentral izat ion and the role o f the state. There have been m a n y challenges to m u n i c i p a l management, as w e l l as several interesting possibi l i t ies . A l l o f these possibi l i t ies , though, point to the m u n i c i p a l unit as the locus o f art iculat ion o f c i v i l society and intermediat ion w i t h other levels o f government. T h e discussions about these issues are intertwined w i t h the w a y watershed protect ion and management o f other natural resources are conducted. 187 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, approach or implementat ion. It is clear that the magnitude and scope o f such project w o u l d create a need for tools 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, sometimes, been a source o f conf l ic t between munic ipa l i t ies and executive agencies, m a k i n g implementat ion s lower and m o r e di f f icul t . Part icu lar ly , the issue o f maintenance o f completed w o r k s (parks, upgradings, etc.) is t ight ly b o u n d to loca l structures, w h i c h i n present circumstances are f i n a n c i a l l y and technica l ly unprepared for such tasks. Some c o m m o n ground has been reached i n addressing several problems that have arisen f r o m the t o p - d o w n approach assumed by the P r o g r a m ' s implementat ion. B u t the resentments and missed opportunities for a meaningfu l interaction between metropol i tan munic ipa l i t ies w i l l be a constant remainder o f the separateness o f metropol i tan spaces and 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 and m u n i c i p a l government has s h o w n m a n y di f f icult ies i n co l laborat ion, even w h e n resources are available. H o w e v e r , it is general ly accepted that o n l y by cont inuously w o r k i n g together w i l l it be possible to develop m o r e rat ional and effective watershed management i n the long run. B u t the P r o g r a m m i s s e d an opportunity to foster a better inst i tut ional integration; this, at least i n terms o f design, was one o f its goals (see F igures 7.1 and 7.2). P u b l i c bureaucracy delays have been a constant constraint i n P r o g r a m development. International funds, approved at the federal and 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 through the P u b l i c Treasury. Therefore, 188 the administrat ive p l a n n i n g and agi l i ty needed i n this k i n d o f p r o g r a m are absent, and efficient i m p l e m e n t a t i o n o f the various projects is thereby impaired. A l m o s t a l l inst i tut ional levels lack effective mechanisms to f o l l o w - u p projects over the m e d i u m and l o n g term. T h i s presents a serious obstacle to achiev ing last ing results. E v e n i f the future Watershed M a n a g e m e n t P l a n were to have disposit ions for mechanisms for f o l l o w - u p it w o u l d be too late to save w o r k developed and implemented i n some specif ic areas affected b y the P r o g r a m . There has been a noticeable increase i n occupat ion w i t h i n projects already f in ished, w i t h n e w residents extending exist ing houses or us ing s m a l l pieces o f id le 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 addi t ion to the issue o f control , there is an unresolved 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 fai lure to resolve uncertainties o f tenure for the resident c o m m u n i t y . T h i s lack o f concern towards tenure security was c o m m o n i n tradit ional W B projects. H o w e v e r , it is surpris ing that a project representative o f the W B ' s n e w era and f o l l o w i n g a more comprehensive v i e w o f sustainable development does not consider tenure security for the residents as a pr ior i ty action. T h e P r o g r a m w i l l not solve the land property p r o b l e m i n B r a z i l ; this is an enduring chal lenge 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 acknowledgment 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 urban dwel lers w h o are at present defenseless against a cruel and outdated tenure law. C o n s i d e r i n g also that the poor are the exc luded i n T h i r d W o r l d cities, any act ion 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 most sustainable measures o f any development program. B u t b y relegating the so lut ion 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 total ly insensible to the p l i g h t o f the squatter and s l u m dwellers , the Guarapiranga P r o g r a m has o n l y re inforced the o f f i c i a l government pattern o f i g n o r i n g the p r o b l e m . 2 1 E v e n i f granting tenure rights w o u l d not by i tse l f resolve the precariousness o f the i l l e g a l settlements, the perception is that i f the residents feel secure i n h a v i n g a tangible fact (the ownership) to l o o k for, they w o u l d be more ready to participate i n c o m m u n i t y organizat ion for the maintenance o f long-term 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 point out that changes to legis lat ion governing h o u s i n g market, as w e l l as i n regulat ion o f hous ing standards, need to be implemented i n order to establish guidel ines for efficient and adequate urban occupation. It is t ime to acknowledge what has been happening i n the periphery o f the S P M A , not o n l y i n the watershed areas. Regulatory changes c o u l d eventual ly create a m i t i g a t i o n for hous ing pressure w i t h i n the protected areas, opening urban spaces through bonus density and other p l a n n i n g devices. Water resources management converges direct ly to protect ion o f watersheds, and 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 ighl ighted the debate about what to do w i t h this huge number o f homes and i l l e g a l a l lotments, and the preeminent need to preserve the water sources. E x i s t i n g leg is la t ion was 2 1 This subject, its national roots and implications was discussed in previous chapters. 190 designed to meet this water protect ion need, but has indirect ly 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 land occupat ion by sharply l o w e r i n g land values. H o w e v e r , l o c a l grassroots leaders have been ins ist ing that it is poss ible to reconci le preservation w i t h occupat ion. A c c o r d i n g to one coordinator o f socia l movements , an average o f 100 houses per day is bui l t w i t h i n the watershed protect ion area. H e does not bel ieve o f f i c i a l census estimates o f 6 0 0 , 0 0 0 residents. H e says the real number surpasses 1 m i l l i o n , as the e c o n o m i c cris is and u n e m p l o y m e n t persist and make people poorer. H i s explanat ion: as the value o f the l a n d is very l o w , legal owners hope to be " i n v a d e d " because they can then d i v i d e the land into very s m a l l lots and sel l them. Because lots are i l l e g a l l y subdiv ided, prices are l o w , and they w i l l be s o l d to fami l ies that can not afford anything else, and the houses they w i l l b u i l d w i l l be precarious, and the settlement w i l l have no infrastructure. It is a s ituation that w i l l persist because he cannot foresee any e c o n o m i c a l l y and soc ia l ly posi t ive changes. Interestingly, about the p o l e m i c question o f preservation and occupat ion, this leader is very emphatic i n defending the p o s s i b i l i t y o f concord between occupancy o f the watershed areas and water sources preservation. B u t according to h i m , it is necessary to change the ex is t ing l a w and enforce a real ist ic z o n i n g code, and environmental education o f the p o p u l a t i o n starting i n the elementary schools. A land occupat ion p l a n is also needed to f u l f i l l preservat ion requirements, and permit h o u s i n g densi f icat ion (through vert ical solutions) to meet ex is t ing demand. H e 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 power. 191 T h i s coordinator 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 elevat ion 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 than to have it back up into the houses. Surely , the coordinator argues, an alternative s o l u t i o n can be found. F i n a l l y , he argues that residents were forced by the government p o l i c i e s to reside i n the watershed protect ion area, and they have l itt le choice but to use natural resources intensive ly , w h i c h i n turn 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 responsibi l i ty for the situation to B r a z i l ' s lack o f rural l a n d reform. T h e poor are expel led f r o m rural areas and see the city as their o n l y alternative. These fami l ies come l o o k i n g for the cheapest bargain, the poorest lot i n the poorest r e g i o n o f Sao P a u l o , because they can not afford anything else. W h o e v e r owns the latifundio22, w h o e v e r dominates the real estate capital i n the ci ty , has control o f land i n society. W o r k e r s are left out and become an easy target for unscrupulous real estate developers, w h o offer lots at l o w prices. People b u y because they need a piece o f land to b u i l d a house and r i d themselves f r o m rent expenses. T h e y cannot afford to care about papers or i l l ega l transactions. It is o n l y too easy to b lame the settlers for the actual situation, he says, without 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 ignor ing what was happening i n the watershed areas, as w e l l as the Guarapiranga 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 and v i e w s o f off ic ials l i n k e d to it. It is perhaps due to the 192 i m m i n e n t elections at the state level . S o m e o f the in format ion shows the pos i t ive achievements, but others c lear ly point to some failures. A l s o , it is interesting to l isten to off ic ials 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 and their efforts to deal w i t h i l l e g a l settlements. Just one o f the p lanned eight sewage collectors is ready. Waste f r o m approximate ly 6 2 0 , 0 0 0 people that are " i l l e g a l l y " l i v i n g i n the basin, are s t i l l be ing released into the reservoir , wi thout any treatment. T h i s has been forc ing S A B E S P to use four t imes the quantity o f c h e m i c a l s to treat the water, as is used i n the Cantareira System i n the N o r t h o f the ci ty . In the surroundings o f the Guarapiranga Reservoir , the P r o g r a m has upgraded some s lums, channeled streams and bui l t a sewage network i n order to i m p r o v e the water qual i ty . In A p r i l 1998, about forty percent o f the area is served by sewers. T h e P r o g r a m ' s goal is to reach eighty percent by its end, but at one year f r o m the end-date, it is not even close. U n t i l the m a i n network col lector is ready - i n the beginning o f 1999 - the system w i l l not b r i n g i n g any benefits for the majori ty o f dwel lers ( F o l h a de Sao P a u l o , A p r i l 1998). Reports f r o m Instituto S o c i o A m b i e n t a l , developed w i t h the N u c l e o Pro-Guarapiranga , have been released i n 1997. O n e o f these reports shows that between 1989 and 1996, the southern part o f the bas in suffered the greatest environmental impact (see Chapter 6). Satell ite photos s h o w several n e w n u c l e i o f deforestation and invasions that w i l l not benefit f r o m the G u a r a p i r a n g a 2 2 "Latifundios" are the large estates (farms and plantation) owned by few people throughout Brazil. They rely on transient labor (migrants). 193 infrastructure program. Def ic ient p o l i c i n g has resulted i n an increased number o f invasions w i t h i n the Guarapiranga area. In the southern part o f the basin where there are dozens o f springs and streams that feed the reservoir, deforestation and waste discarded into t h e m by the invaders is affecting the water qual i ty . 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 was four t imes the populat ion growth i n S P C between 1980 and 1991, and eight t imes the g r o w t h between 1991 and 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 qual i ty w i l l be the same as that registered i n the beginning o f the 1980s. T h e Secretary for Water Resources and Sanitat ion, H u g o R o s a , the highest state of f ic ia 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 def in ing pr ior i ty areas for the w o r k s , and says that the major p o p u l a t i o n pressure is s t i l l i n the Santo A m a r o region, at the margins 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 priorit ies are clear and s h o w the P r o g r a m ' s fai lure to acknowledge needs and to have a v i s i o n about the region 's future. I n an e lect ion year, the concern o f what is important "e lec tora l ly" prevai ls under the B a n k ' s b less ing or ignorance. 194 T h e Federa l D e p u t y candidate, F a b i o F e l d m a n , former head o f the S M A and mentor o f the changes i n the watershed protect ion legis lat ion says it is very di f f icul t to m o n i t o r and protect such a b i g area w i t h so few resources: " W e d i d what was p o s s i b l e " (JT, 1998). E d i s M i l a r e , S M A Secretary f r o m 1992 to 1994, w h e n the P r o g r a m was paralyzed, also c o m p l a i n s that there were not enough f inancia l resources to m o n i t o r the watershed protect ion area. H e says that the delay o f the program was due to "the difficulty in resolving bureaucratic problems and the lack of investment from the State. In theory, the Program was very nice. But the government was not able to provide the necessary financial resources. The budget of my secretariat was 0,76 percent of the State resources. It was a ridiculous amount", affirms M i l a r e , t ry ing to e x p l a i n the shortcomings o f implementat ion under the responsib i l i ty o f his Secretariat ( O E S P , M a y 1998). F i n a n c i a l and bureaucratic dif f icult ies were a c o m m o n compla int dur ing the interviews w i t h inst i tut ional representatives as explanation to the delays and eventual reduct ion o f some expected w o r k s . A c c o r d i n g to the newspaper, the state government w i l l have to invest at least U S $ 40 m i l l i o n more than the anticipated budget o f the Guarapiranga P r o g r a m , o n top o f the o r i g i n a l budget o f U S $ 108 m i l l i o n . A c c o r d i n g to S R H S Secretary, H u g o R o s a , there was an increase i n P r o g r a m costs because the project exceeded its i n i t i a l objectives: " T o d a y , the P r o g r a m ' s costs are around more than U S $ 300 m i l l i o n " ( F o l h a de Sao P a u l o , A p r i l 1998). 195 T h e other part o f the P r o g r a m , w h i c h has been funded for S P C and anticipated an expenditure o f approximate ly U S $ 36 m i l l i o n , w i l l also need to be increased. O n l y the W o r l d B a n k part, seventy percent o f the U S $ 119 m i l l i o n o r i g i n a l l y foreseen as the total cost, has not been updated. T h e quest ion o f the costs, though, exceeds delays and increased expenses. T h e m a i n point o f content ion has been whether the resources, i n c l u d i n g the W B funds, are being used to m a x i m u m benefit. " A g o o d part o f the investment was t h r o w n out. I f we do not pr ior i t i ze the areas s t i l l preserved, w e are a lways b e h i n d the destruction", is the o p i n i o n o f Joao C a p o b i a n c o , president o f I S A . T h e I S A Report indicates that 38,5 percent o f the occupations between 1989 and 1995 happened i n areas w i t h strong use restrictions and w h i c h d i d receive neg l ig ib le investment. E v e n the W B engineer responsible for the Guarapiranga P r o g r a m , A b e l M e j i a , says that he is w o r r i e d b y increased i l l e g a l occupat ion o n the Southern part o f the bas in , but is very vague about the matter. A c c o r d i n g to h i m , the moni tor ing/pol ic ing m o d e l used i n the b a s i n has been ineff icient: " W e need to incentive occupat ion that does not produce impact i n the r e g i o n " ( F o l h a de Sao P a u l o , A p r i l 1998). T h e state government believes that the n e w l a w concerning environmental cr imes , i n place since M a r c h 1998, a long w i t h part ic ipat ion by munic ipa l i t ies i n m o n i t o r i n g w i l l stop the n e w invasions. Dagoberto M e n e g h i n e , m o n i t o r i n g director f r o m the E n v i r o n m e n t Secretariat: "Before the new law, whoever deforested the area would receive a administrative fine. Nowadays, he can go to prison. This is going to make the perpretators to think twice before deforesting any area within the watershed protected area" (Folha de Sao Paulo, May 1998). 196 E f f e c t i v e l y , no o f f i c i a l structure has been established to deal w i t h these speci f ic offenders. Therefore, it is d i f f icul t to see the resolut ion implemented soon. A c c o r d i n g to the E n v i r o n m e n t a l Justice prosecutor f r o m the P u b l i c M i n i s t r y i n Sao P a u l o , M a r c e l o D w a l i b i , every two days, a n e w i n v a s i o n happens i n the Guarapiranga reservoir areas, " T h e invasions are increasing a l l the t ime. T h i s i l l ega l expansion is already out o f the state c o n t r o l " , aff irms the prosecutor. A n d he attributes part o f this growth to one speci f ic soc ia l component: endemic unemployment , thus far beyond the scope o f the Guarapiranga P r o g r a m . 197 CHAPTER 8 CONCLUSIONS "Water - water management - is essentially politics. All the rest follows " (Guy Le Moigne, addressing the 2nd Annual WB Conference on Environmentally Sustainable Development, Washington, DC. September 1994) " Water is life. " (Slogan of the PMSP campaign to clean the reservoir during the Workers Party administration) Water management is urban pol i t i cs , especial ly "when the city invades the water" ( G r o n s t e i n et a l . 1985) as it is the case o f the watersheds o f S P M A . B u t it is m u c h more. T h e quest ion o f the watersheds, their protect ion, recovery and preservation cannot leave out other questions related to the p o l i t i c s that shape the urban environment. S P M A urban pol i t i cs must translate a concept o f urban environment that places the watershed question w i t h i n the m a k i n g o f the ci ty . T h i s study indicates the strong relat ionship between the w a y urban p o l i t i c s is def ined and exercised, and the reinforcement o f ongoing inequalit ies present i n the soc ia l m a k e u p o f the c i ty . U r b a n p o l i t i c s cannot o n l y reflect a legal treatment o f urban problems, but must pledge the different posi t ions i n relat ion to legis lat ion and nature o f proposit ions dictated by confl icts between stakeholders. T h e y must attack the roots o f spatial inequal i ty that have made p o l l u t i o n the landscape o f poverty i n Sao Paulo . B y not a c k n o w l e d g i n g the need to incorporated the i n f o r m a l c i ty and its residents as cit izens, major urban decisions ignore urban (dis)order. In spite o f advances i n tack l ing p o l l u t i o n threats to the urban environment, there are no clear signs that change is occurr ing i n the w a y urban pol i t i cs is perceived or exercised. T h e presence o f 198 the W B , a major player i n the development o f urban environment, has not affected the dec is ion-m a k i n g spheres o f the technical bureaucracy. Nevertheless, it is important to recognize that the W B P r o g r a m has p r o v i d e d an important thrust towards approval o f the n e w watershed protect ion leg is lat ion, w h i c h implementat ion is supposed to open avenues to address the soc ia l e x c l u s i o n o f watershed residents. A n a l y s i s o f W B P r o g r a m performance demonstrates that the p o l i t i c a l environment o f S P led the P r o g r a m to fortify exist ing urban p l a n n i n g posit ions. It re inforced the preference for technica l solutions w i t h short- and m e d i u m - t e r m impacts over long-term actions w i t h broader soc ia l and urban dimensions . E v e n the level o f f inanc ia l , capacity b u i l d i n g and i n f o r m a t i o n resources put into the P r o g r a m was not enough to establish p l a n n i n g consensus between various actors and agents i n v o l v e d i n changing the w a y urban pol i t ics is p layed. M u c h depended o n the w a y the P r o g r a m was conduced and the d e c i s i o n - m a k i n g process was developed. W i t h a strong technical focus towards ' sav ing the water ' , rather than negotiat ing w i t h the immediate water polluters and users (the occupiers o f the watershed) it al ienated most o f the affected populat ion . T h e i r support w o u l d have been a key aspect i n the maintenance o f the P r o g r a m ' s gains. T h e long-standing over-reliance o n technical approaches, as w e l l as concern for poss ible p o l i t i c a l gains occurr ing f r o m the P r o g r a m , clearly preva i led over a m o r e f lex ib le approach w i t h part ic ipat ion by c o m m u n i t y organizations and N G O s . T h e P r o g r a m has undoubtedly had a signif icant benef ic ia l impact o n qual i ty o f l i fe for residents o f the settlements that received infrastructure upgrading. A l s o , residents o f middle-c lass 199 neighborhoods near the reservoir are benefit ing f r o m the infrastructure w o r k s . T h e quest ion is , h o w l o n g w i l l benefits last? W i t h an increasing number o f residents m o v i n g into i m p r o v e d i n f o r m a l settlements, one can predict an eventual burdening o f the n e w infrastructure systems. T h e same can be said for most o f the sub-programs, w h i c h lack plans for clear and rel iable maintenance. T h i s e x a m i n a t i o n o f questions concerning the watershed has used the W B P r o g r a m as a means o f i n q u i r i n g into urban pol i t i cs i n Sao Paulo . A major part o f the d iscuss ion has been centered o n speci f ic aspects o f the project. T h e h i g h l i g h t i n g o f achievements and inconsistencies o f the P r o g r a m revolves around urban pol i t i cs and the p h y s i c a l d i m e n s i o n o f soc ia l e x c l u s i o n i n S P M A i n pursuit o f understanding h o w such a major player i n the urban environment as the W B affects this scenario. T H E NEW LEGISLATION In spite o f promises o f n e w legis lat ion, the approach adopted toward S P M A watersheds d i d not consider the part iculari ty o f the urban structure o f the S P M A , neither d i d it address p r o b l e m s caused by the m u l t i p l e uses o f the reservoirs. Questions o f an effective inst i tut ional system to manage urban growth, basic environmental and sanitation needs, and socia l demands and c l a i m s o f affected c o m m u n i t i e s have been omitted. L a c k o f reinforcement o f exist ing executive structures concerning regional issues w i l l l i k e l y be a hindrance to implementat ion o f efficient water management p u b l i c po l ic ies . Di f ferent resource 200 a v a i l a b i l i t y i n metropol i tan munic ipa l i t ies m a y become a source o f conf l ic t between reg ional and l o c a l interests, m a k i n g it more di f f icult to sustain the P r o g r a m ' s gains. URBAN POLITICS H i s t o r i c a l l y i n Sao P a u l o , p o l i t i c a l emphasis has been o n f inancia l v i a b i l i t y o f speci f ic sanitation projects and programs. T h i s preoccupation is reflected i n the p o l i t i c a l agencies f o r m e d to manage technica l responses to these questions. Consequent ly , the majority o f technica l people w h o were the interlocutors o f these problems came f r o m the sanitation sector. T w o decades after deterioration o f metropol i tan water resources was o f f i c i a l l y i n c l u d e d i n the p u b l i c agenda, the same technical approach that dominated the solutions to urban p r o b l e m s i n the S P M A inf luenced the Guarapiranga Program. T h e b i g technical problems have been addressed ( l ike the sewage networks, control o f the qual i ty o f the water, etc.) and i n spite o f schedule delays, they s h o u l d be completed. Other issues such as land use and occupat ion, as w e l l as the need for more sustainable actions w i t h social and c o m m u n i t y f o c i , were not addressed. Issues such as h o u s i n g , c o m m u n i t y services, environmental education init iat ives, etc., appear less l i k e l y to be real ized i n short or m e d i u m t ime. Some o f these have been addressed, but w i t h the least successful results i n the P r o g r a m . T h e loca l p o l i t i c a l scenario has inf luenced this bad performance. H o w e v e r , one cannot exclude f r o m blame the W B ' s support o f a perspective that prec luded introduct ion o f long-range pol ic ies . S o c i a l achievements are di f f icul t to sustain i f not strongly supported b y p o l i c y reforms. 201 T h e Southern watershed areas i n S P M A are some o f the last areas avai lable for urban expansion. T h e y are also one o f the most attractive, because o f their p r o x i m i t y to j o b s i n nearby industr ia l and services centers. U r b a n infrastructures already i n place, locat ion relative to the m a i n transit axis and l a n d l o w pr ice are addit ional attractions. T h i s is the p r i n c i p a l arena i n w h i c h , e x p l i c i t l y or surreptit iously, the confl icts between different soc ia l groups emerge i n the f ight for urban space. It i l lustrates, i n acute details, most o f the problems occurr ing throughout the urban fabric , where soc ia l inequal i ty prevai ls . T h e P r o g r a m , projects and proposals, w h i c h at an inst i tutional leve l sealed the area's destiny, d i d not consider the divers i ty o f interests i n the area. T h e y tried to concentrate o n defense o f a c o m m o n g o o d - the preservation o f c lean and rel iable water. T h e y d i d not see pos i t ive aspects related to possible land uses and activities, nor d i d they consider w h i c h areas m i g h t eventual ly absorb high-densi ty hous ing , and i n what form. H e r e l ies the P r o g r a m ' s m a i n failure so far. It has fa i led to acknowledge the role o f urban p o l i t i c s i n shaping watershed occupat ion, and to define an occupat ion m o d e l for the watersheds, w h i c h incorporates sustainabil i ty and feasibi l i ty (social , e c o n o m i c and phys ica l ) wi thout e x c l u d i n g ex is t ing residents. T h i s cannot p o s s i b l y be achieved by leg is lat ion or l a w enforcement, nor b y expensive technica l solutions for sanitation systems. It is a task for the w h o l e society, and one i n w h i c h p u b l i c p o w e r and different social groups must participate as equals i n d e c i s i o n - m a k i n g and responsib i l i ty for the desired accomplishments . 202 T h e P r o g r a m presented an opportunity to start a comprehensive d iscuss ion about u r b a n p o l i t i c s . T h e opportunity was not to solve the question, because urban pol i t i cs is a l i v i n g quest ion, w i t h no s i m p l e or q u i c k solut ion. It was, rather to initiate a thorough understanding o f the problems b e y o n d its immediate technical dimensions. Solut ions for the Guarapiranga area m o r e sustainable than upgrading o f some favelas and insta l l ing sewage networks were not considered. O n e o f the interviewees, a h i g h prof i le o f f i c ia l , articulated the v e i l e d reason for this o m i s s i o n : " . . . y o u see, i n the l o n g r u n , a l l these people should be m o v e d o u t . . . " . T h e recogni t ion o f the i m p o s s i b i l i t y o f r e m o v i n g nearly one m i l l i o n people f r o m the protected area seems not f u l l y a c k n o w l e d g e d b y the technica l elite responsible for the d e c i s i o n - m a k i n g process i n large infrastructure programs. A n o t h e r d i f f i cu l ty ar is ing f r o m the urban p o l i t i c a l apparatus is the dominant technical v i e w that basic sanitation - water, sewage, garbage and drainage - is the m a i n element o f urban order. It is very di f f icul t , i n S P M A or any deve loping c i ty , to imagine basic sanitation as the spearhead and d e f i n i n g factor i n the urban arrangement. T h e exist ing deficit o f water is so large, and the forms o f water supply so diverse that it is di f f icult to sustain this concept. It is necessary to recognize the i n f o r m a l c i ty , a c k n o w l e d g i n g it w i t h an urbanism o f the possible. T h i s is a di f f icul t conceptual step, because the idea o f an orderly, f o r m a l c i ty is ingrained i n planners and ci ty of f ic ia ls a l ike . T h e concept o f the c i ty as obey ing certain patterns is an idea l i zed m i d d l e and upper class urban configurat ion. T h e "sani tat ion" people, w h o design the systems and programs, come f r o m these classes. Therefore, reproduct ion o f accepted patterns is almost inevitable. Favelas have been treated as transitory for a l o n g t ime i n S P . T h e i r eventual disappearance i n the face o f progress and 203 development is accepted as inevitable. T h e re locat ion o f favelas' p o p u l a t i o n to settlements that w i l l l o o k l i k e f o r m a l c i ty is an absurd fantasy, yet to this day it is discussed and accepted i n m a n y technica l spheres. I f one surveys the editorial pages o f the m a i n S P newspapers over the last s ix years, it is apparent that this assumption was responsible for the ineffectiveness o f aspects o f the Guarapiranga P r o g r a m . URBAN ENVIRONMENTAL ISSUES I n S P M A , environmental problems have been g r o w i n g rapidly . T h e y have been brought to p u b l i c attention b y the v irulence o f their impact. There has been an i m m e n s e increase i n areas subject to f l o o d i n g as w e l l as i n the frequency o f f looding episodes. D i f f i c u l t i e s i n s o l i d waste management and its d isposal are g r o w i n g , and the impacts o f increased air and water p o l l u t i o n o n p u b l i c health abound. Recent ly , the threat o f c lean water shortage has r isen s igni f icant ly for the w h o l e region. H o w e v e r , it is increasingly apparent that these r isks are unevenly distr ibuted a m o n g the metropol i tan populat ion. T h i s situation lays bare the contradict ion inherent i n d iscuss ing u r b a n sustainabi l i ty wi thout e x a m i n i n g soc ia l ly prevalent practices, or a c k n o w l e d g i n g the re lat ionship between soc ia l just ice , qual i ty o f l i fe and environmental e q u i l i b r i u m . Nevertheless , the development m o d e l i n place i n recent decades has generated this praxis . T h e core o f the p r o b l e m is fai lure to recognize environmental degradation as the cumulat ive effect o f 204 widespread poverty , soc ia l inequal i ty , unemployment , m i s i n f o r m a t i o n and ignorance o f the re lat ion between environment and health r isks. T h e quest ion raised by the Guarapiranga P r o g r a m is: "In what aspects is the Guarapiranga Program contributing efficiently to attaining environmental improvement in the entire SPMA waterbasins? " T h e response w o u l d have to acknowledge that w h i l e there are immediate gains for some l o w - and higher- income communit ies l i v i n g around the reservoir, most o f the p o p u l a t i o n n o w " i n f o r m a l l y " settled i n the watershed area w i l l have no long-term gains, because the urban p o l i c i e s have not changed. E n v i r o n m e n t a l problems take o n great importance i n S P M A , not o n l y because they are acute but also because they c a l l into question basic assumptions up o n w h i c h soc ia l and e c o n o m i c development has been grounded. E n v i r o n m e n t a l degradation is a by-product o f structural aspects o f p r o d u c t i o n activit ies and o f land occupation. In developed countries, e c o l o g i c a l questions are largely l i m i t e d to revis ions o f lifestyles or protests against concrete, speci f ic interventions. In these countries, structural aspects o f the relationship between humans and nature seem to have been better resolved, either because the socia l contract has been able to balance this re lat ionship more effectively, or because m u c h o f the dirtiness has been transferred to other parts o f the w o r l d . I n B r a z i l , environmental problems are c o m p l e x and diverse, ranging f r o m r a i n forest devastation to r ivers that are open sewage l ike i n S P M A . T o alter this scenario o f environmenta l destruction i m p l i e s a p r o f o u n d r e v i s i o n o f the relationship between state and society, a re lat ionship w h i c h 205 has been strongly m a r k e d by soc ia l e x c l u s i o n and inequity , and w h i c h permits o n l y a part ia l exercise o f c i t izenship rights. E n v i r o n m e n t a l problems demand immediate answers. Pressures f r o m the international c o m m u n i t y and f r o m environmental organizations, eco log ica l accidents and the r i s k noted above have, recently, obl igated the B r a z i l i a n government to r e v i e w its role as regulator o f resource use. T h e spectre o f environmental r isk presents a challenge to b u i l d coal i t ions o f capable c i t izens able to create acceptable l i v i n g condit ions that stimulate development o f c o m m u n i t y practices and preventative p u b l i c p o l i c i e s without negatively interfering w i t h the environment. Soc iety must be m o b i l i z e d to assume a d y n a m i c role i n proposing act ion. C i v i l society must be prepared to demand government init iatives w h i c h promote sustainabil i ty, soc ia l i n c l u s i o n , and development w i t h i n the context o f increasing e c o n o m i c di f f icul ty . INFORMATION There is a need to create an agenda for urban environmental sustainabil i ty that takes into account the importance o f expanding access to informat ion. E n v i r o n m e n t a l i n f o r m a t i o n is often scattered and d i f f icu l t to interpret. B u t it is indispensable that in format ion be avai lable to a l l actors i n the urban environment i n a clear and accessible way. T h e Guarapiranga P r o g r a m is a huge step towards f i l l i n g the gap i n i n f o r m a t i o n about the watershed areas, but w i l l the in format ion be avai lable to a l l stakeholders? Several questions arise: i n a system w i t h m u c h informat ion, w h o w i l l control it? W h o w i l l say w h i c h i n f o r m a t i o n 206 enters w h i c h system and w h o can have access to the data bank? W h o belongs to the c o m m i s s i o n s that are n o w entit led to the information? A n d w h o m do they represent? A t present, none o f these questions can be c lear ly answered. PARTICIPATION B r o a d e r popular part ic ipat ion i n the d e c i s i o n - m a k i n g process is the o n l y w a y to promote necessary changes to the present unjust social system, and thus confront the serious urban problems faced by the S P M A . S u c h a large proport ion o f the metropol i tan p o p u l a t i o n - s l u m dwel lers , landless, " i l l e g a l s " - must not be exc luded f r o m management o f their c i ty and f r o m the p o l i t i c a l process constituting the urban order. T h e y must be recognized as cit izens. T h e majori ty o f the urban p o p u l a t i o n must not be c o m p e l l e d to l i v e as would-be cit izens i n the " i n f o r m a l " c i ty , where the cr i ter ia and requirements o f the " o f f i c i a l " c i ty are not appl icable . A c c o r d i n g to Kess ides (1997), W o r l d B a n k standards require part ic ipat ion to be encouraged b y group ident i f icat ion and m o b i l i z a t i o n f o l l o w e d by in format ion d isseminat ion and d iscuss ion. B y the proposal and d e c i s i o n stage, the necessary c o m m i t m e n t w i l l have been generated. I n a m o d e l project, s m a l l groups o f households are inv i ted to discuss their sanitation problems and needs w i t h a p r o g r a m team, whose members have both engineering and c o m m u n i t y m o b i l i z a t i o n s k i l l s . T h u s , not o n l y needs are assessed, but also possibi l i t ies , because the team's technica l staff are able to i m m e d i a t e l y assess the feasibi l i ty o f the groups' proposals. 207 W h a t has group ident i f icat ion and m o b i l i z a t i o n meant i n the Guarapiranga R e s e r v o i r P r o g r a m ? A l t h o u g h i n f o r m a t i o n was gathered prior to the P r o g r a m ' s start, neither residents nor c o m m u n i t y organizat ions were ca l led to participate i n def in ing implementat ion guidel ines and post-program activit ies. A c c o r d i n g to the residents, c o m m u n i t y leaders and N G O s interv iewed, the worst t h i n g is that they are not part o f the implementat ion and maintenance processes, w h i c h w i l l , u l t imate ly define the success o f the P r o g r a m . T h e y feel total ly exc luded, and suspect that the soc ia l and e c o n o m i c i n f o r m a t i o n gathered before the P r o g r a m started has been discarded, or at least, been accorded a l o w pr ior i ty . O n e can argue that the communit ies m a y have unrealist ic expectations that generated technica l ly or e c o n o m i c a l l y i m p o s s i b l e proposals. B u t experience has s h o w n that poor urban c o m m u n i t i e s have a very clear v i e w o f their needs and real ist ic expectations ( M o s e r , 1996). T h e P r o g r a m team's approach suggests distrust i n the c o m m o n sense o f the residents. I n not incorporat ing c o m m u n i t i e s and N G O s through the implementat ion process, the team's h a n d l i n g o f par t ic ipat ion has c o m p r o m i s e d the trusting relat ionship essential i n this k i n d o f c o m m u n i t y e l ic i ta t ion and cooperation. T h e B a n k ' s guidel ines regarding in format ion disseminat ion and d iscuss ion suggest that i f the group expresses interest i n technical details, costs, f inancing, rules for part ic ipat ion i n the project, etc., they s h o u l d be so informed. B u t participants felt that the Guarapiranga project had been def ined p r i o r to their involvement , and discuss ion was only l i m i t e d to s m a l l details and adjustments. M o r e important ly , nothing has been clearly i n place to address this step o f the process. Par t i c ipat ion was developed as part o f the project 's draft design, but was never rea l ly 208 implemented . It should be emphasized that this part ic ipat ion is essential to m a i n t a i n and i d e a l l y m u l t i p l y the P r o g r a m ' s gains. T H E LAND AND HOUSING DISCOURSE T h e discourse concerning land use and occupat ion was p r o f o u n d l y affected by the watershed legis lat ion. I n the urban p l a n n i n g m i l i e u , it generated a b e l i e f that regulat ion and its a p p l i c a t i o n w o u l d be enough to control urban occupat ion o f the area. These mechanisms were restricted to the n o r m a l i z a t i o n o f land d i v i s i o n , d i d not consider h o w urban expansion happens, and d i d not w o r k . T h e p u b l i c p o w e r and the p l a n n i n g m i l i e u has ignored the need to turn p u b l i c p o l i t i c s into concrete actions that w o u l d confront the problems i n the region. W h i l e issues o f administrat ion, energy, sewage and water supply have p o l a r i z e d technica l o p i n i o n around different projects and solutions, no controversies have fuel led technica l debate or p o l i t i c a l guidance concerning land distr ibution. O n l y w h e n the c i ty was threatened w i t h water supply col lapse, the state turned attention towards different levels o f competence and responsibi l i t ies w i t h i n the rea lm o f the urban environment. T h e expans ion o f ' i l l e g i t i m a t e ' solutions (based o n i l l e g a l s u b d i v i s i o n or land invas ion) i n the periphery o f S P M and watershed protected areas is l i n k e d to the absolute insecurity o f w o r k (wages, retirement, unemployment) . Furthermore, the contractual condit ions for renting have forced the w o r k i n g populat ion ( formal and informal) to make any sacrif ice to o w n a house i n order to escape renting. T h e permiss ive attitude taken by the state towards irregular s u b d i v i s i o n s 209 is a means to reproduce the e c o n o m i c system and a c c o m p a n y i n g inequitable m o d e l . Escape f r o m the cortico or favela into land ownership, even w i t h no guarantee, improves the l i v i n g condi t ions o f the household . L a n d and water are essential to l i fe . L a n d for housing and clean water are essential elements o f a healthy urban l i fe . T h e socia l confl icts associated w i t h these elements occur because they are finite, and therefore, vulnerable to soc ia l ly produced scarcity. O n l y an expressive h o u s i n g p o l i c y w i l l assure protect ion and preservation o f water resources and watersheds, and prevent the loss o f the large investment c o m m i t t e d to the Guarapiranga P r o g r a m . In the 1990s, the W B has a v o w e d the need to make urban regulations more f lex ib le as a w a y to e l iminate obstacles to the private actions and increase urban product iv i ty . T h i s agenda assumes that urban poverty increases i n relat ion to demographic g r o w t h and that restrictions to p r o d u c t i v i t y create barriers to employment generation and cause restricted access to urban services ( W B , 1990). A s m a l l state, more productive and w i t h most services p r o v i s i o n p r i v a t i z e d w o u l d dedicate i t se l f to social po l ic ies and poverty a l lev iat ion, as w e l l as defending the environment. T h u s , the neo-l iberal v i s i o n he ld by international institutions has incorporated c l a i m s and demands that have been made by popular movements d u r i n g recent decades: tenure for "spontaneous settlements"; incentives to associat iv ism/cooperat iv ism for j o b generation; incentives for c o m m u n i t y init iatives for self-help and self-managed h o u s i n g and urban infrastructure p r o v i s i o n ( M a r i c a t o , 1997). 210 There is an urgent need to recognize and support the efforts of the poor, in the household and in the community, in order to face their own needs through community initiatives and organizations " (WB, 1990; H o w can an " i l l e g a l " practice o f the exc luded segment o f the p o p u l a t i o n be seen as a virtue and an example o f an active populat ion replacing the state? It appears that w h e n the m o n e y is short, practices that have resulted f r o m years o f state neglect become the r e c o m m e n d e d alternative. A c c o r d i n g to S m o l k a , it reinforces a m o d e l where the state is seized b y advanced, m o d e r n i z e d , inf luent ia l sectors o f society and becomes a l l i e d to international agencies, l e a v i n g the rest o f society to their o w n means. Something that was happening i n practice has also entered the discourse o f international agencies ( S m o l k a , 1992). T h e urban real i ty o f S P has c o m b i n e d an excess o f regulat ion for an extremely exc lus ionary f o r m a l market w i t h total disregard and abandonment o f the i n f o r m a l , w h i c h defines the majori ty o f urban land. B u t excessive regulat ion is not o n l y created by bureaucracy; it is basic to u p h o l d i n g f inancia l gains i n real estate industry, i n a h i g h l y concentrated market. I n B r a z i l , the state tradit ional ly defends the private property at the expense o f the p u b l i c one. T h i s explains the ineff icacy o f p u b l i c investment and ignorance towards the general ized occupat ion o f areas so important for the environment. ( M a r i c a t o , 1997). Thus , it is not surpris ing that gaps appeared i n the conceptual izat ion o f the P r o g r a m , since it was c o n c e i v e d and nurtured by a s m a l l parcel o f the society w i t h clear ideas about w h o m international m o n e y s h o u l d help and to what purposes. 211 A c c e s s to urban land and housing cannot be decided by market forces alone; r e c o g n i t i o n o f the l o n g c l a i m e d "r ight to the c i t y " is a c o n d i t i o n for B r a z i l i a n democracy. H o w e v e r , l a w does not grant urban reform. It must be w o n through the p o l i t i c a l process. T h i s w i l l o n l y be possible w h e n residents o f " i n f o r m a l land and hous ing arrangements" are recognized as f u l l c i t izens. CITIZENSHIP RIGHTS, FORUM AND CIVIL SOCIETY ORGANIZATIONS Better environment is intr ins ica l ly connected to the concept o f citizenship. O n e is capable o f def in ing her/his betterment i f she/he has c learly understood her/his rights. I n this part icular case, citizenship rights e m b o d y her/his f u l l part ic ipat ion i n b r i n g i n g about a better urban environment. These rights comprise , certainly, access to clean water, but also inc lude tenure security, e m p l o y m e n t , health, education and c o m m u n i t y part ic ipat ion. A l t h o u g h some o f these rights m a y not be complete ly attainable through technical projects w i t h i n the scope o f the P r o g r a m , the P r o g r a m offers an excellent opportunity to address some o f these issues and initiate d i s c u s s i o n o f possible actions. T h e absence o f mechanisms for regional act ion w i t h i n B r a z i l ' s po l i t i ca l -adminis trat ive t radi t ion makes it d i f f icul t to address supra-regional issues such as watersheds. T h e w o r k o f deta i l ing const i tut ional amendments o u t l i n i n g regional organizat ion o f the state is i n its infancy. T h e divers i ty o f agents and o f i n v o l v e d interests makes the discussions extremely c o m p l e x . State government response to the need to resist sector ia l ism and central izat ion has been l i m i t e d to proposals for sectoral counci l s , w i t h different territorial i n c l u s i o n . 212 T h e ampl i tude and c o m p l e x i t y o f environmental issues, though, requires intense c o l l a b o r a t i o n between c o u n c i l s such as the E n v i r o n m e n t a l R e g i o n a l C o u n c i l , and Water Resources or Sanitat ion C o u n c i l s . F r o m this conjuncture rises an important innovat ive fact: i n t e r - m u n i c i p a l C o u n c i l s , u n i t i n g several cities, c o u l d lead various actions, and confront the state government i n a more consistent f o r m than can isolated munic ipa l i t ies . A s associations between m u n i c i p a l executives, the consortia are more l i k e l y para-state associations than non-governmental organizat ions. N G O s are c o m m o n l y seen as the o n l y legitimate source o f people ' s representation and advocates o f c i t izenship rights. I n m a n y ways , consortia can be stronger than N G O s because they offer consensus posit ions w i t h i n munic ipa l i t ies , and give important assistance i n o r g a n i z i n g the environmenta l debate. W i t h i n this mult i faceted picture, besides proposing immediate amel iorat ion o f p u b l i c actions for the environment , is the understanding that the montage o f agreements and pract ica l f o l l o w - u p actions between the various entities i n v o l v e d should anticipate any engineering w o r k . T h e p u b l i c or private agents i n v o l v e d need to agree not o n l y o n concrete actions but also o n d e c i s i o n - m a k i n g and f o l l o w - u p mechanisms. There are no unique models to be f o l l o w e d : each f o r u m , as w e l l as its proposals , s h o u l d represent specif ic characteristics o f the situation it endeavors to resolve. T h e f o r u m must confront the c o m p l e x i t y o f problems, i n v o l v e the p u b l i c power, and deal w i t h issues such as territorial extension and the maturity and art iculat ion o f c i v i l organizations i n v o l v e d . T h e y s h o u l d reflect the speci f ic condit ions o f each region. 213 T h e task o f N G O s and other organizations, as w e l l as spearheading autonomous init iat ives s h o u l d be to lead and integrate c o m m u n i t y init iatives. T h e y must have as a permanent target government reforms that w o u l d permit the state to act as regulator between c o n f l i c t i n g interests. T h e i r task is also to convey c lari ty , transparency and control o f their actions to society, as an important exercise o f c i t izenry. THE URBAN PLANNING REALM I n the metropol i tan scenario o f p h y s i c a l exc lus ion , urban planners must make r o o m for active a l l -c i t i z e n part ic ipat ion i n d e c i s i o n - m a k i n g processes, and help l o w - i n c o m e c o m m u n i t i e s to increase their access to soc ia l power. T h e y should a l l o w for f lexible standards i n the construct ion o f the bui l t environment, and not just be m a i n l y concerned w i t h technical regulations and c o d i f i c a t i o n . T h e n e w urban p l a n n i n g must be participatory and a prov ider o f strategic i n f o r m a t i o n to a l l participants i n the p l a n n i n g process, thus e m p o w e r i n g the exc luded. Planners s h o u l d forge consensus through negotiations between stakeholders, emerging as mediators i n the urban p o l i t i c s and f i n d i n g co l laborat ion across the w i d e n i n g socia l , p o l i t i c a l and e c o n o m i c d iv ides that has been prevalent i n the p u b l i c d o m a i n . SUGGESTIONS T w o points must be part o f any approach to address S P M A environmental p r o b l e m s . F irs t , any sustainable and feasible so lut ion depends direct ly o n governmental measures. S e c o n d , a central 214 point i n any so lut ion is the need for the state and society to w o r k together i n a concerted and c o n c u r r i n g way . It is necessary to pr ior i t i ze urban environmental problems as part o f the l o n g co l lec t ive process for B r a z i l i a n re-democratizat ion, and thus, part o f a broader nat ional project. It is important to recognize that n e w federal and state constitutions have made advances towards this goal , but there is a l o n g w a y to go before these legal advances are transformed into realities and effective practices. N o w h e r e is this so clear as i n the specif ic context o f urban water sources. A t stake is env ironmenta l ly sound management o f watersheds w i t h i n h i g h l y developed regions that have h i g h indices o f urbanizat ion and industr ia l izat ion. T h e threat to ex is t ing water resources due to p o l l u t i o n has stirred up bitter disputes. These questions demand the part ic ipat ion o f society -representatives o f industry and agriculture, popular organizations, environmenta l organizat ions, univers i ty and research centers. In a federate regime, coordinated actions f r o m U n i o n , State and l o c a l government are also necessary. It is important to define f ields o f intervent ion for the j u d i c i a r y , legis lat ive and executive powers at each leve l o f government. N o less important is c lose cooperat ion between units o f the same government, especial ly w i t h i n the state and m u n i c i p a l levels . T h e need for awareness o f environmental degradation is fundamental ly important and opens a w i d e range o f poss ibi l i t ies . O n e is to make v i s i b l e the r isks posed by an assumed development m o d e l . T h i s i n v o l v e s d iscuss ion o f future events, but people usual ly ignore or s h o w litt le interest 215 i n something that does not affect immediate their da i ly existence; their first concern is h o w to survive , to have a house, to obtain or h o l d a j o b . Thus , c r u c i a l decisions o f h o w to prevent p o l l u t i o n should necessari ly address poverty and socia l practices that are the roots o f soc ia l inequity . T o confront environmental r isks , to expand people 's awareness, and thereby to m i n i m i z e r isks , i m p l i e s changes i n soc ia l practices. These changes should lead to alternative actions operating from a perspective o f sustainabil i ty, and should challenge the prevalent practice to a v o i d addressing poverty and p o l l u t i o n unless it is p o l i t i c a l l y convenient, practice that is c o m m o n i n predatory p u b l i c po l ic ies . T h e necessary changes require that soc ia l practices strengthen access to i n f o r m a t i o n and to environmental education. T h e init iatives should develop f r o m the premise that m o r e accessible i n f o r m a t i o n and more transparent management o f urban environment issues w i l l lead to re-organizat ion o f authority and power. T h e Guarapiranga P r o g r a m should concentrated o n deve loping a comprehensive and more part ic ipatory M a n a g e m e n t P l a n to guarantee that, i n the m e d i u m and l o n g term, resources w i l l not be wasted. T h e c o m m u n i t y ' s lack o f in format ion about the upgrading w o r k , its maintenance and preservation, the h i g h incidence o f v a n d a l i s m , and carelessness m a k e completed upgrading di f f icu l t to mainta in . Spec i f i c act ion to address these issues must be incorporated into the Watershed M a n a g e m e n t P l a n . M o d i f i c a t i o n o f the Watershed Protect ion L a w is undoubtedly essential for adequate i m p l e m e n t a t i o n o f this P l a n . Nevertheless, changes to the l a w per se w i l l not m a k e any difference 216 without p u b l i c support at the l o c a l level for P l a n implementat ion. Therefore, d i s c u s s i o n o f m e d i u m and long-term priorit ies w i t h i n each c o m m u n i t y should precede speci f ic m u n i c i p a l l eg is la t ion to consolidate the P l a n ' s aims. T h e use o f land for p u b l i c parks enhances important aspects o f soc ia l l i fe for the c o m m u n i t y . Parks can also be a valuable too l i n the va lor iza t ion o f reservoir borderlands. T h u s , m u n i c i p a l i t i e s should be encouraged to do constant maintenance and to m a k e sure that parks ' p u b l i c safety is adequately addressed. A l s o , general sanitation and environmenta l educat ion programs, as w e l l as i n f o r m a t i o n o n parks ' features p lay fundamental roles w i t h i n the c o m m u n i t i e s . C o n t i n u o u s programs should be implemented to disseminate environmenta l awareness and g ive people opportunity to learn and enjoy themselves. R e l o c a t i o n o f a f e w s l u m areas w i l l not b r i n g about the recovery o f the reservoir, and not a l l the s lums that threaten water qual i ty should be relocated. A special project s h o u l d be set up to address the need to relocate a l l r i s k y area dwellers. A l s o , constant f o l l o w - u p f r o m educat ion monitors and soc ia l workers is necessary to help the c o m m u n i t y to preserve and i m p r o v e upgrading w o r k s . T h e sewerage system being constructed by the S A B E S P w i l l s igni f icant ly i m p r o v e the qual i ty o f l i fe o f recipient c o m m u n i t i e s , direct ly and indirect ly . H o w e v e r , sustained i m p r o v e m e n t w i l l depend o n maintenance and c o m m u n i t y cooperation. Sanitary education is fundamental . T o regularize l a n d use and control , and to enforce appropriate standards o f occupat ion, a decentral ized p o l i c y that transfers to munic ipa l i t ies resources adequate to the d e m a n d is needed. 217 S u c h a p o l i c y w o u l d also transfer responsibi l i ty for enforcement and control . A n entire c o l l e c t i o n o f actions is necessary: soc ia l consciousness; part ic ipat ion o f c o m m u n i t y organizat ions; p o l i c y decentral izat ion; services decentral ization; ample d iscuss ion o f environmenta l issues and regular izat ion proceedings. M o d i f i c a t i o n s i n the administrative structure at metropol i tan and m u n i c i p a l levels are certainly necessary. Part icular attention should be p a i d to aspects o f service p r o v i s i o n and the a l l o c a t i o n o f resources. A n associated p r o b l e m is the challenge posed to tax mechanisms by the increas ing i n f o r m a l i z a t i o n o f the economy. Part icular ly important to environmental protect ion are basic infrastructure services such as waste and sewage co l lec t ion , and preservation o f green areas and parks. Strong l i n k s between c o m m u n i t y organizations, N G O s and government agencies w i l l create a democrat ic c h a i n o f shared power. Pr ior i t ies c o u l d then be def ined according to needs and avai lable resources, a practice that do not exist i n S P M A today. T h e role o f international f inancing needs to be considered and evaluated w i t h i n this context. T h e tasks o f recover ing and preserving the environment are enormous. A l s o , international institutions have been major agents i n Sao P a u l o ' s transformation, and as such should become m o r e efficient partners i n meaningfu l changes. Suggested p o l i c i e s for integrative management o f watershed basins i n S P s h o u l d i n v o l v e d stakeholders i n : • D i s c u s s i o n s o f a l l aspects o f occupat ion processes i n the Guarapiranga watershed basin: demographic and soc io-economic dynamics ; soc io-pol i t i ca l and pol i t i ca l - inst i tut ional aspects; 218 degree o f p o l l u t i o n , scarcity or excess o f water v o l u m e , capacity o f the water sources; s u b d i v i s i o n o f the area into smaller compartments (urban, peri-urban, and rural z o n i n g ) , i n v o l v i n g management and technical staff o f state and m u n i c i p a l governments, w h o are concerned w i t h urban development and environment. Ident i f icat ion o f points o f conf l ict ( land use, p o l i t i c a l , legal , normative) and o f convergence ( m a i n interests or c o m m o n problems); identi f icat ion o f f inanc ia l sources for m e d i u m and l o n g term self-management; and explorat ion o f possibi l i t ies for f inanc ia l support by i n v o l v e d manageria l institutions, D e v e l o p m e n t o f systematic regional ly based management (water resources, environmenta l sanitation, and metropol i tan issues), us ing p r i m a r y and secondary data and addressing competencies and responsibi l i t ies: administrative, inst i tut ional , executive, f inanc ia l and legis lat ive (co-management o f the watershed basins). D i s c u s s i o n and adaptation o f models and international experiences o f watershed management i n urban zones (current uses and the potential to c o m b i n e and m a x i m i z e compat ib le land uses, w h i l e preserving the watershed areas and water sources). 219 BIBLIOGRAPHY A b e r s , Rebecca . 1996. F r o m idea to Practice: the Part ido dos Trabalhadores and Part ic ipatory Governance i n B r a z i l i n L a t i n A m e r i c a n Perspectives 23 (4) A b r a m s , C . 1967. " H a b i t a c a o , D e s e n v o l v i m e n t o e U r b a n i z a c a o " . E d i t . O C r u z e i r o , R i o de Janeiro. A c e v e d o , C , E . C a r l s o n , J . A . V i d e l a . 1956 " Programas de f inaciamiento de v i v i e n d a y desarol lo c o m u n a l i n A m e r i c a L a t i n a " . P r o g r a m a de Cooperacao T e c n i c a da Organizacao dos Estados A m e r i c a n o s , C o n s e l h o Interamericano E c o n o m i c o e S o c i a l , U n i a o Panamericana, Centro Interamericano de V i v i e n d a , B o g o t a . A d a m s , P. 1991. O d i o u s Debt. Earthscan, L o n d o n A F S P - A F o l h a de Sao P a u l o , 26/04/1998; 17/11/97 A g e n d a 21 L o c a l 1996. Prefeitura do M u n i c i p i o de Sao Paulo . A n g o t t i , T . 1996. L a t i n A m e r i c a n urbanizat ion and P l a n n i n g : Inequality and U n s u s t a i n a b i l i t y i n N o r t h and South i n L a t i n A m e r i c a n Perspectives 23 (4) A n g o t t i , T . M e t r o p o l i s 2 0 0 0 . Rout ledge, N e w Y o r k . A l c a n t a r a , C . H . 1998. U s o s y abusos del concepto de gobernal idad. U N E S C O Report . A r m s t r o n g , W . and T . M c G e e 1985. Theatres o f A c c u m u l a t i o n : Studies i n A s i a n and L a t i n A m e r i c a n U r b a n i z a t i o n . M e t h u e n . L o n d o n A s c h e r , W . 1983. " N e w D e v e l o p m e n t approaches and the adaptabil i ty o f International A g e n c i e s : the case o f the W o r l d B a n k " i n International O r g a n i z a t i o n 37,3. A s s e m b l e i a L e g i s l a t i v a do Estado de Sao Paulo . D o c u m e n t o s 1975-1976. L e g i s l a t i v e A s e m b l y o f Sao P a u l o State. Several Reports about the Watershed L e g i s l a t i o n Proceedings . Sao P a u l o A z e v e d o , S. L . A . A n d r a d e . 1982. "Habi tacao e Poder: da Fundacao da casa popular ao B a n c o N a c i o n a l de Habi tacao" . Zahar, R i o de Janeiro. A y r e s , R . 1983. B a n k i n g o n the Poor . T h e M I T Press, C a m b r i d g e . B a n c o Interamericano de Desaro l lo - B I D . 1966. " E l B I D y l a v i v i e n d a " . E d . D i v i s i o n de i n f o r m a t i o n del B a n c o Interamericano de Desaro l lo , M e x i c o . 220 B a n c o M u n d i a l . 1972. " U r b a n i z a t i o n : documento de trabajo sobre el sector". M e x i c o . B a n c o M u n d i a l . 1972. "Operaciones de l B a n c o M u n d i a l : programas y normas sobre diversos sectores" Technos, M a d r i d . B a n c o M u n d i a l . 1978. " B a n c o M u n d i a l : Projetos de lotes urbanizados" . B N H Report , R i o de Janeiro. B a n c o N a c i o n a l de Habitacao - B N H . 1977. " A s s e s s o r i a de Informacao de A p o i o , G r u p o E x e c u t i v o , L i n h a s de F inanc iamento do B N H " . Secretaria de D i v u l g a c a o , B N H , R i o de Janeiro. Bartone, C . 1996. U r b a n E n v i r o n m e n t management Strategies: Case Studies o f Sao P a u l o and K u m a s i . Paper presented at the International Conference o n E n v i r o n m e n t Strategies for D e v e l o p m e n t i n U r b a n Areas : Lessons f r o m A f r i c a and L a t i n A m e r i c a . L o n d o n , September 1996. Bartone, C . 1993. Watershed Protect ion i n the Sao P a u l o M e t r o p o l i t a n R e g i o n : A Case Study o f an Issue-Specif ic U r b a n E n v i r o n m e n t a l M a n a g e m e n t Satrategy in Infrastructure N o t e s U E - 9 , W o r l d B a n k , W a s h i n g t o n , D C . Berger , M . and M . B e n s o n , 1998. Lineages o f l i b e r a l i s m and mirac les o f medernisat ion: the W B , the East A s i a trajectory and the international development debate i n T h i r d W o r l d Quarter ly , 1 9 ( 3 ) B I D . Relator ios anuais: 1970 a 1989. B a n c o Interamericano de D e s e n v o l v i m e n t o . B I D . 1969. " D e s a r o l l o de l a c o m u n i d a d : teoria y pract ica" B I D , M e x i c o . B I D . 1969. "Progresso soc io-economico na A m e r i c a L a t i n a : oitavo relatorio anual , 1968". W a s h i n g t o n . B l a c k , E . 1963. T h e d i p l o m a c y o f e c o n o m i c development. A t h e n e u m , N e w Y o r k B l i t z e r , S . , J . H a r d o y . 1983. " L a d i s t r i b u i c i o n spatial de los prestamos para los assentamientos urbanos en A m e r i c a L a t i n a : las actividades de las agendas mult i laterales 1970-1979" i n R e v i s t a Interamericana de P l a n i f i c a c i o n , X V I I , 65, M a r c h . B N H . 1982. " P r o m o r a r : P r o g r a m de Erradicacao da subhabitacao". B N H , R i o de Janeiro. B N H . 1978. "Programas de N a t u r e z a S o c i a l " . Conference by H e l i o L o p e s , B N H S o c i a l P r o g r a m s ' Supervisor . B e l o H o r i z o n t e , Ju ly . B o l a f f i , G . 1986. "Habi tacao e U r b a n i s m o : o p r o b l e m a e o falso p r o b l e m a " i n M a r i c a t o , E . " A Producao Capi ta l i s ta da C a s a ( e da Cidade) no B r a s i l Industr ia l" . E d i t o r a A l f a O m e g a , Sao P a u l o . 221 B o n d u k i , N . G . 1992. Habitacao e autogestao. Fase, R i o de Janeiro B o n d u k i , N . G . , R. R o l n i c k . 1979. "Peri ferias: ocupacao do Estado e R e p r o d u c a o d a F o r c a de T r a b a l h o " . Cadernos de Estudo e Pesquisas P R O D E U R F A U U S P , Sao P a u l o . Brecher , J . and T . Coste l lo . 1994. G l o b a l V i l l a g e or G l o b a l P i l lage . South E n d Press, B o s t o n . B r i t o , L . 1 9 8 6 . P o l i t i c a e Espaco R e g i o n a l . N o b e l , Sao P a u l o Burguess , R . 1982. Self-help housing A d v o c a c y i n P. W a r d (ed.) "Se l f -he lp h o u s i n g : a cr i t ique" . M a n s e l l P u b l i s h i n g L T D , L o n d o n . C a c c i a B a v a , S. 1990. U r b a n P o l i c i e s for S o c i a l Transformat ion: the Case o f Sao P a u l o , i n C i t i e s , February. C a c c i a B a v a , S. 1994. Sao P a u l o E n v i r o n m e n t P r o f i l e , i n E n v i r o n m e n t and U r b a n i z a t i o n 6 (1) C a m a r g o , C P . 1975. Sao P a u l o 1975: Cresc imento e Pobreza. L o y o l a , Sao P a u l o . C a n o , W . 1990. R a i z e s da Concentracao Industrial e m Sao Paulo . H u c i t e c Sao P a u l o C a n o , W . and C . Pacheco 1991. E l proceso de urbanizac ion del estado de Sao P a u l o in E U R E 18(51) . Caste l ls , M . 1983. T h e ci ty and the grassroots. U n i v e r s i t y o f C a l i f o r n i a Press, B e r k e l e y Cassen, R . 1994. D o e s A i d W o r k ? . O x f o r d U n i v e r s i t y Press, N e w Y o r k C a u l f i e l d , C . 1996. T h e masters o f i l l u s i o n . F i t z h e n r y & W h i t e s i d e L t d a , Ontar io Cernea, M . 1991 Putt ing people first. O x f o r d U n i v e r s i t y Press, N e w Y o r k Cesar, R . C . 1975. Reg iao M e t r o p o l i t a n a de Sao P a u l o - D i a g n o s t i c o 75. ( m i m e o ) Sao P a u l o C h e e m a , G . S . 1993. U r b a n Management , P o l i c i e s and Innovations i n D e v e l o p i n g Countr ies . Praeger Wesport : C R H E A 1997. P o l i t i c a s e Pesquisa n a gestao do m e i o A m b i e n t e . A n a i s do I V S i m p o s i o de E n g e n h a r i a A m b i e n t a l , Sao Car los , Sao Paulo . C l i c h e v s k y , N . 1990. " C o n s t r u c i o n y A d m i n i s t r a c i o n de l a c i u d a d la t inoamericana" . Instituto Internacional del M e d i o A m b i e n t e y Desaro l lo I I E D - A m e r i c a L a t i n a . M e x i c o . 222 C O B R A P E w/d. E n v i r o n m e n t a l Sanitation P r o g r a m - Guarapiranga Waterbas in Report . Sao P a u l o C O B R A P E 1992. P r o g r a m a de Saneamento A m b i e n t a l da B a c i a do Guarapiranga -R e l a t o r i o de Impacto sobre o M e i o A m b i e n t e . Sao P a u l o C o r n e l i u s , W . and F . T r u e b l o o d 1975. L a t i n A m e r i c a U r b a n Research 5. Sage, B e r v e l y H i l l s : D a M o t t a , R . S. and E . R e i s 1992. O Financiamento do Processo de D e s e n v o l v i m e n t o . In R e v A d m i n i s t r a c a o P u b l i c a . 26. D i n i z , C . 1994. P o l y g o n i z e d D e v e l o p m e n t i n B r a z i l : N e i t h e r Decentra l i za t ion nor C o n t i n u e d P o l a r i z a t i o n In International Journal o f U r b a n and R e g i o n a l Research. 18 (2). D o n e l s o n , S. 1979. " L o s Programas de ayuda de las agendas multi laterales para los assentamientos humanos en paises en v i a de desarol lo" i n R e v i s t a Interamericana de P l a n i f i c a c i o n , XIII, 49, M a r c h . D o r r a j , M . 1995. T h e C h a n g i n g P o l i t i c a l E c o n o m y o f the T h i r d W o r l d . L o n d o n : L . R i e n n e r Publ ishers . E d e l , M . 1989. C i t i e s i n C r i s i s : the U r b a n Chal lenge i n the A m e r i c a s . G r a d . S c h o o l and U n i v . C e n t e r . N e w Y o r k : E M P L A S A , 1987. Proposta de R e v i s a o para aperfeicoamento d a l e i de protecao dos manaciais . Sao P a u l o E M P L A S A , 1985. Pol i t i cas e diret4rizes para ordenamento do solo n a R M S P . Sao P a u l o E M P L A S A , w/d. R e v i s a o da legislacao de uso do solo metropol i tano. Sao P a u l o Escobar , A . 1995. E n c o u n t e r i n g Development . Pr inceton U n i v e r s i t y Press, P r i n c e t o n , N J . F a r i a , V . 1991. C i n q u e n t a A n o s de U r b a n i z a c a o no B r a s i l : Tendencias e Perspectivas. Sao P a u l o : C E B R A P 29. F a r i a , V . 1989. M e t r o p o l i t a n Sao Paulo: problems and perspectives i n E d e l , M . (ed.) " C i t i e s i n C r i s i s : T h e U r b a n C h a l l e n g e i n the A m e r i c a s " . B i l n e r Center for W e s t e r n H e m i s p h e r e Studies, N e w Y o r k . Fernandes, E . 1997. A c c e s s to U r b a n L a n d and H o u s i n g i n B r a z i l . L i n c o l n Institute o f L a n d P o l i c y W o r k i n g Paper. C a m b r i d g e , M A . 223 Ferre i ra de C a m a r g o , C . et a l . 1978. Sao P a u l o , G r o w t h and Poverty . L o n d o n : B o w e r d e a n Press. F i g u e r o a , O . 1988. "Intervencao do B a n c o M u n d i a l nos Transportes U r b a n o s da A m e r i c a L a t i n a " i n A N T P R e v i s t a de Transportes P u b l i c o s . 10, 39. M a r c h . F I N E P - G A P . 1988. "Habi tacao Popular : Inventario da A c a o G o v e r n a m e n t a l 1985-1986" E d . F inep-Proje to , Sao P a u l o . F r i e d m a n n , J . 1986. T h e W o r l d C i t y Hypothes is i n D e v e l o p m e n t and C h a n g e 17. F U N D A P , 1991. D o c u m e n t o de Trabalho no 12. Co lecao Questao S o c i a l Ge lber , G . 1992. Poverty and P o w e r . L o n d o n : C A F O D . G i l b e r t , A . E . W a r d . 1985. " H o u s i n g , the State and the Poor : P o l i c y and Pract ice i n " T h r e e L a t i n A m e r i c a n C i t i e s " . C a m b r i d g e U n i v e r s i t y Press, C a m b r i d g e . G i l b e r , A . 1990. T h e cost and benefits o f i l lega l i ty and irregularity i n the supply o f l a n d i n Baross & v a n der L i n d e n " T h e transformation o f land supply i n T h i r d W o r l d c i i t e s " G o w e r P u b l i s h i n g C o m p a n y L i m i t e d , A v e n b u r y . G r a z i a n o d a S i l v a , J . 1978. Estrutura A g r a r i a e Producao de Subsistencia n a A g r i c u l t u r a B r a s i l e i r a . Sao P a u l o : H u c i t e c . G r e g o r i , L . 1992. Transportat ion M a n a g e m e n t - Sao P a u l o , B r a s i l . International C o u n c i l for L o c a l E n v i r o n m e n t a l Initiatives, Case Study 8. Toronto: L E I . Griesgraber, J . M . and B .Gunter . 1995. P r o m o t i n g Development . P l u t o Press, L o n d o n G r o n s t e i n , M . D . et a l . 1985. A cidade invade as aguas. F A U U S P , Sao P a u l o . G o n c a l v e s , M . F . ( e d . ) 1995. O novo B r a s i l U r b a n o . E d i t o r a M e r c a d o A b e r t o , Porto A l e g r e . Guimaraes , R . 1992. D e v e l o p m e n t pattern and the environment i n B r a z i l i n C E P A L R e v i e w 47. G u g l i e l m i , P . M . 1984. "Habi tacao , O r d e m e Progresso: a p o l i t i c a brasi le ira , a leg i t imacao do regime e a acumulacao capital ista". M a s t e r Thesis , Fundacao G e t u l i o V a r g a s , Sao P a u l o . H a r d o y , J . 1981. " C o o p e r a t i o n International para los assentamientos h u m a n o s " i n R e v i s t a Interamericana de P l a n i f i c a c i o n , X V , 59, September. H a r r i s , N . (ed.) 1992. C i t i e s i n the 1990s: the challenge for d e v e l o p i n g countries. U C L Press L i m i t e d , L o n d o n 224 H a r r i s , N . 1994. T h e emerging g lobal c i ty in C i t ies 11 (5). H a r r i s , W . 1971. T h e G r o w t h o f L a t i n A m e r i c a n C i t i e s . Athens: O h i o U n i v e r s i t y Press. H a r v e y , D . O . 1982. O Trabalho, o C a p i t a l e o C o n f l i t o de classes e m torno do ambiente construido e m sociedades capitalistas avancadas i n Espaco e Debates 6 H a r v e y , P. 1980. A j u s t i c a soc ia l e a cidade. H u c i t e c , Sao P a u l o . Hayter , P . 1972. " A i d as i m p e r i a l i s m " . P e n g u i n B o o k s , M i d d l e s e x . H e l l e i n e r , G . 1990. T h e N e w G l o b a l E c o n o m y and the D e v e l o p i n g Countr ies . E d w a r d E l g a r A l d e r s h o t H e n d e r s o n , J . and M . Castel ls (ed.) 1987. G l o b a l Restructur ing and territorial development. Sage, L o n d o n . H e s s , D . 1995. T h e B r a z i l i a n P u z z l e . N e w Y o r k : C o l u m b i a U n i v e r s i t y Press. Ianni , O . 1991. A questao S o c i a l i n Sao P a u l o e m Perspectiva, 5 (1). I S A 1998. D i a g n o s t i c o Soc ioambienta l part ic ipat ivo p r e l i m i n a r da bac ia do Guarapiranga. J a c o b i , p , M . A . T e i x e i r a . 1995. Conf l i tos S o c i o - A m b i e n t a i s : D i a g n o s t i c o da C i d a d e de Sao P a u l o . Cadernos C E D E C , Sao Paulo . J a c o b i , P. 1994. H o u s e h o l d s and environment i n the c i ty o f Sao P a u l o : problems, perceptions and solutions in E n v i r o n m e n t and U r b a n i z a t i o n 6 (2). J a c o b i , P. 1995. Conf l i tos Socio-ambientais : diagnostico da cidade de Sao P a u l o . Cadernos C E D E C nO 45. Jose, V . 1982. M o r t g a g i n g the future. F o u n d a t i o n for N a t i o n a l i s t Studies, Q u e z o n C i t y J T - J o r n a l da Tarde. 11/03/97, 14/06/98 K e s s i d e s , C . 1997. W o r l d B a n k experience w i t h the p r o v i s i o n o f infrastructure services for the urban poor. Transportat ion, Water and U r b a n D e v e l o p m e n t Department, W o r l d B a n k , W a s h i n g t o n , D C . K a r d a m , N . 1994. D e v e l o p m e n t Approaches and the role o f p o l i c y advocacy: the case o f W B i n W o r l d D e v e l o p m e n t (?) ? K e e g a n , W . 1993. T h e spectre o f capita l ism. V i n t a g e , L o n d o n . K o w a r i c k , L . 1994. S o c i a l Struggles and the city. M o n t h l y R e v i e w Press N e w Y o r k : . 225 K o w a r i c k , L . 1993. A E s p o l i a c a o U r b a n a . E d i t o r a P a z e Terra , Sao P a u l o K o w a r i c k , L . and M . C a m p a n a r i o 1986. Sao P a u l o : T h e P r i c e o f W o r l d C i t y Status, in D e v e l o p m e n t and Change 17 K o w a r i c k , L . . 1977. T h e l o g i c o f D i s o r d e r : Capita l is t E x p a n s i o n i n the M e t r o p o l i t a n A r e a o f Greater Sao P a u l o . D i s c u s s i o n Paper, I D S . U n i v e r s i t y o f Sussex, B r i g h t o n L e i t m a n n , J . 1992 R a p i d U r b a n E n v i r o n m e n t a l Assessment. U N D P / U N C H S / W o r l d B a n k , W a s h i n g t o n , D . C . L e y s , C . T h e rise and fa l l o f development theory. 1996. Indiana U n i v e r s i t y Press, Indiana. L o m b a r d i , M . and D . V e i g a 1989. L a s ciudades en conf l icto: u n a perspect iva lat inoamenricana. M o n t e v i d e o : Centro de informaciones y estudios de l U r u g u a y ( C I E S U ) , E d i c i o n e s de l a B a n d a Orienta l . L o w i T . J . 1986. D i s t r i b u t i o n , regulat ion re-distr ibution: the government functions. I n R . R i p l e y (ed.) P u b l i c P o l i c i e s . W W N o r t o n & C o m p a n y , N e w Y o r k . L o j k i n e , J . 1981. O estado capitalista e a questao urbana. M a r t i n s Fontes, Sao P a u l o . L a m o u n i e r , B . 1986. A n a l i s e da pol i t icas brasileiras i n Planejamento e P o l i t i c a s P u b l i c a s , F U N D A P 1986 L e Prestre, P. 1989. T h e W o r l d B a n k and the E n v i r o n m e n t a l Chal lenge. A s s o c i a t e d Presses, C r a n b u r y . M a n t e g a , G . 1984. A e c o n o m i a p o l i t i c a brasi leira. E d i t o r a P o l i s / V o z e s , Petropol is/ Sao P a u l o M a r i c a t o , E . (ed.) 1979. A producao capitalista da casa (e da cidade) no B r a s i l . A l f a -O m e g a , Sao Paulo . M a r i c a t o , E . 1987. P o l i t i c a H a b i t a c i o n a l no regime mi l i tar . E d . V o z e s , Petropol is . M a r i c a t o , E . 1994. O urbanismo n a periferia do capita l ismo: desenvolv imento d a desigualdade e contravencao sistematica. F A U S P , Sao Paulo . M a r i c a t o , E . 1996. M e t r o p o l e n a periferia do capita l ismo. H u c i t e c , Sao P a u l o M a r i c a t o , E . 1998. Habitacao e Cidade . A t u a l E d i t o r a L t d . , Sao P a u l o M a r t i n e , G . 1978. M i g r a n t e s no M e r c a d o de Trabalho M e t r o p o l i t a n o . R i o de Janeiro: I P E A 19. 226 M a r t i n e , G . 1992. Tendencias Recentes de Redistr ibuicao no B r a s i l : Bases para a Rediscussao da A g e n d a A m b i e n t a l . B r a s i l i a : Instituto Populacao, Sociedade e N a t u r e z a . M a s o n , e. et a l . (1973) T h e W B since Bret ton W o o d s , W a s h i n g t o n , D C , T h e B r o o k i n g Institute M a u t n e r , Y . 1992. H o u s i n g and the P r o d u c t i o n o f the B u i l t E n v i r o n m e n t i n Sao P a u l o i n R e g i o n a l D e v e l o p m e n t D i a l o g u e 13 (4).. M a y o , S. K . 1991. H o u s i n g P o l i c y and H o u s i n g Research: T h e V i e w f r o m the W o r l d B a n k i n H o u s i n g F i n a n c e International December 1991. M c G i l l , R . 1995. U r b a n Management Performance i n C i t i e s 12 (5) M c C a l l u m , D . , S. B e n j a m i n . 1985. " L o w i n c o m e urban hous ing i n the T h i r d W o r l d : B r o a d e n i n g the E c o n o m i c Perspect ive" i n U r b a n Studies, 2. M e l l o , D . 1993 Resource M o b i l i z a t i o n strategies for urban development i n B r a z i l i n C h e e m a , G . S . " U r b a n M a n a g e m e n t P o l i c i e s and Innovations i n D e v e l o p i n g C o u n t r i e s " . Praeger, Westport . M e l o , M . A . B . 1990. Estruturacao intra-urbana, regimes de acumulacao e Sistemas F i n a n c e i r o s de Habitacao: B r a s i l e m perspectiva comparada" . i n E s p a c o e Debates. X , 31. M e l o , M . A . B . 1987. " T h e State, the H o u s i n g Quest ion and P o l i c y F o r m a t i o n i n B r a z i l : 1937-1975". P h . D . Thesis , U n i v e r s i t y o f Sussex, B r i g h t o n . M o r a w e t z , D . 1977. T w e n t y f ive years o f e c o n o m i c development. J o h n H o p k i n s U n i v e r s i t y Press, B a l t i m o r e M o r s e , R . and J . H a r d o y 1992. R e t h i n k i n g the L a t i n A m e r i c a n C i t i e s . W o o d r o w W i l s o n International Center for Scholars. W a s h i n g t o n , D C . M o s l e y , P. et a l . 1991. A i d and P o w e r (2v.) L o n d o n . Rout ledge M o s e r , C . 1996. Studies o f F i v e C o m m u n i t i e s . E S D D e v e l o p m e n t Studies and M o n o g r a p h s 8. W a s h i n g t o n , D C . M o u r a , A . S . , M . A . M e l o . " O B a n c o M u n d i a l e as Pol i t i cas P u b l i c a s no B r a s i l ". F u n d a c a o J o a q u i m N a b u c o , Inst, de Pesquisas Sociais , Departamento de C i e n c i a s P o l i t i c a s e Fundacao F o r d ( m i m e o s/d) M u e l l e r , C . 1995. E n v i r o n m e n t a l P r o b l e m s inherent to a development style: degradation and poverty i n B r a z i l i n E n v i r o n m e n t and U r b a n i z a t i o n 7 (2) 227 N a v a r r o , J . (ed.) 1994. C o m m u n i t y Organizat ion i n L a t i n A m e r i c a . Center for Research i n A p p l i e d E c o n o m i c s , I O D A , W a s h i n g t o n , D C . N i e n t i e d , P. and J . van der L i n d e n 1985. Approaches to l o w - i n c o m e hous ing i n T h i r d W o r l d countries i n International Journal o f U r b a n Research 9 (3) O E S P - O Estado de Sao P a u l o , 27/03/98,28/03/98, 19/03/98,26/10/97,19/04/97/10/09/97,02/09/97, 10/10/95,08/04/84, 24/14/74. O l i v e i r a , F . 1982. A e c o n o m i a brasi leira: c r i t i ca a razao dualista. Cadernos C e b r a p 2. Sao P a u l o . O s z l a k , O . and O ' D o n n e l , G . 1976. E s b o z o para estudo de pol i t icas estatales en A m e r i c a L a t i n a i n Estado y pol i t icas estatales A m e r i c a L a t i n a , C E D E S / G B u e n o s A y r e s . P a u l , S. 1987. Part ic ipacao da comunidade e m projetos do B a n c o M u n d i a l i n F inancas e D e s e n v o l v i m e n t o D e z e m b r o 1987 Pereira , S. 1997. L a n d equity for the urban poor i n L a n d l i n e s (9) 6. Piquet , R and A . C . Ribeiro.(ed.) 1991. B r a s i l , Terr i tor io da Desigualdade. Jorge Zahar E d i t o r , R i o de Janeiro. Portes, A . 1989 L a t i n A m r i c a n urbanizat iona dur ing the years o f cr is is i n L a t i n A m e r i c a n Research R e v i e w 24 (3) Portes, A . and M . Castel ls (ed.) 1989 The i n f o r m a l economy: Studies i n A d v a n c e d and Less developed Countr ies . J o h n H o p k i n s U n i v e r s i t y Press, B a l t i m o r e Poulantzas, N . 1986. Poder p o l i t i c o e classes sociais. M a r t i n s Fontes, Sao P a u l o . Poulantzas, N . 1985. O Estado, o poder e o soc ia l i smo. E d i c o e s G r a a l , R i o de Janeiro. Q & A 1998. Facts & F igures o f the W o r l d B a n k G r o u p . W o r l d B a n k , W a s h i g t o n , D C . R a b i n o v i t z , F . and T . F e l i c i t y 1971. L a t i n A m e r i c a U r b a n Research 1. B e v e r l y H i l l : Sage R e d d y , Y . V . 1 9 8 5 . T h e W o r l d B a n k borrowers ' perspectives. Ster l ing Publ ishers Pr ivate , N e w D e l h i . R i b e i r o , L . C . Q. , O . A . S a n t o s . 1994. G l o b a l i z a c a o , Fragmentacao e R e f o r m a U r b a n a . C i v i l i z a c a o B a r s i l e i r a , R i o de Janeiro. Roberts , J . T . 1996. G l o b a l restructuring and the environment i n L a t i n A m e r i c a i n R . P . K o r z w n i e w i c z et al(ed.) " L a t i n A m e r i c a i n the W o r l d E c o n o m y " . G r e e n w o o d Press, Westport . 228 R o l n i k , R . 1990. Sao P a u l o : C r i s e e M u d a n c a . Sao P a u l o : E d i t o r a Bras i l iense . R o l n i k , R . 1997. A cidade e a l e i . L i v r o s Studio N o b e l , Sao Paulo . Rossetto, R . 1993. Organizacoes Internacionais e a auto-construcao. M a s t e r Thesis F A U U S P . Sao P a u l o . R u g g i e , J . 1982. International regimes, transactions and change: embedded l i b e r a l i s m i n the postwar e c o n o m i c order i n International Organizat ion, 36 (2) Sabato, J . et a l . 1981. C o o p e r a c i o n para el desarollo i n Estudios Internacionales X I V 53. S A B E S P 1992. R e v i s t a D A E - Guarapiranga. Sao P a u l o Santos, M . 1993. A U r b a n i z a c a o Bras i le i ra . Sao Paulo: H u c i t e c . Sassen, S. 1991. T h e G l o b a l C i t y . Pr inceton: Pr inceton U n i v e r s i t y Press Sassen, S. 1994. C i t i e s i n a W o r l d E c o n o m y . T h o u s a n d Oaks , C a l i f o r n i a : Forge Press. Secretaria d a Habitacao 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. U r b a n i z a c a o de Favelas e m Sao P a u l o : u m a experiencia de recuperacao ambiental . Secretaria do M e i o A m b i e n t e , 1997. M a n a n c i a i s : u m a n o v a p o l i t i c a . Sao P a u l o . Secretaria dos Recursos H i d r i c o s e Saneamento, 1996 -1997. Sobre Projetos para o abastecimento de agua da Grande Sao Paulo . Sao P a u l o Serva, M . 1991. A industrial izacao de Sao P a u l o in R e v . A d m i n i s t r a c a o P u b l i c a . 2 5 . S i l v a , H . M . B and C a s t r o , M . P 1997. A legislacao, o mercado e o acesso a habitacao e m Sao P a u l o . W o r k s h o p Habitacao: c o m o ampl iar o mercado? I P T / U S P / L i n c o l n Institute A g o s t o 1997 Singer, P. 1982. D e s e n v o l v i m e n t o economico e evolucao urbana. C i a . E d i t o r a N a c i o n a l , Sao P a u l o . Singer, P. 1993. Sao P a u l o ' s M a s t e r P l a n 1989-1992: the p o l i t i c s o f urban space. W o o d r o w W i l s o n International Center for Scholars. W a s h i n g t o n , D C . Schiffer , S. 1998. Sao P a u l o : the challenge o f g l o b a l i z a t i o n i n an exc lus ionary u r b a n structure. U n i t e d N a t i o n s University/Institute o f A d v a n c e d Studies. S h i d l o , G . 1990. S o c i a l P o l i c y i n a N o n - D e m o c r a t i c R e g i m e : the Case o f P u b l i c H o u s i n g i n B r a z i l . B o u l d e r : W e s t v i e w Press. 229 Seralgedin, I s m a i l et a l . 1994 T h e h u m a n face o f the urban environment. Proceedings o f the W B annual conference o n environmental ly suatainable development September, 19-21 S m o l k a , M . 1993. A n o v a agenda do B a n c o M u n d i a l para a p o l i t i c a urbana. I P P U R A J F R J , R i o de Janeiro Sorj , B . 1980. Estado e Classes Socia is na A g r i c u l t u r a . R i o de Janeiro: E d i t o r a Guanabara S . A . Sposat i , A . 1996. M a p a da Exclusao/Inclusao S o c i a l d a C i d a d e de Sao P a u l o . E D U C , Sao P a u l o Sybey, T . 1996. G l o b a l i z a t i o n and w o r l d society. B l a c k w e l l Publ ishers Inc. C a m b r i d g e . Taschner, S. P. 1987. " P o l i t i c a H a b i t a c i o n a l no B r a s i l : B a l a n c o e P e r s p e c t i v a " presented i n the 11a reuniao A N P U R , Sao P a u l o , N o v e m b e r . Taschner, S .P. 1991. " D i a g n o s t i c o s e desafios da Habitacao no B r a s i l " i n Sinopses U S P , 15, Sao P a u l o , June. Taschner, S .P. 1993. "Favelas e Cort icos no B r a s i l : 20 anos de pesquisas e p o l i t i c a s " . F A U U S P (mimeo) Tavares, M . C . and J . F i o r i , 1993. Desajuste G l o b a l e M o d e r n i z a c a o Conservadora . P a z e Terra , Sao Paulo . T h e E c o n o m i s t , January 1 9 9 5 / N o v e m b e r 1996. U n i t e d N a t i o n s Centre for H u m a n Settlements 1987. N a t i o n a l H u m a n Settlements Institutional Arrangements : Selected Case Studies. N a i r o b i . V a r l e y , A . 19--. Settlement, i l lega l i ty and legal izat ion: the need for reassessment in W a r d , P. (ed.) " C o r r u p t i o n , development, inequal i ty" . Rout ledge, L o n d o n . V e j a , Junho 1996 V i o l i c h , F . 1987. U r b a n P l a n n i n g i n L a t i n A m e r i c a . Oelgeschlager, G u n n & H a i n B o s t o n . Va l ladares , L . 1988. U r b a n S o c i o l o g y i n B r a z i l : a research Report i n International Journal o f U r b a n and R e g i o n a l Research 12. V a l l a d a r e s , L . and E . Preteicei l le (ed.) 1990. Reestruturacao U r b a n a : tendencias e desafios. Nobel/Iuperj , Sao P a u l o . W a r d , P. 1998. International F o r u m o n R e g u l a r i z a t i o n and L a n d M a r k e t s i n L a n d L i n e s 10 (4) 230 W e y l a n d , K . 1996. D e m o c r a c y without equity. U n i v e r s i t y o f P i t t i sburg Press, P i t tsburg W o o d , C . and J . C a r v a l h o 1988. T h e D e m o g r a p h y o f Inequality i n B r a z i l . C a m b r i d g e : C a m b r i d g e U n i v e r s i t y Press. W o r l d B a n k 1991. W o r l d D e v e l o p m e n t Report. O x f o r d : O x f o r d U n i v e r s i t y Press. W o r l d B a n k . 1983. " C i t i e s i n the deve loping w o r l d : p o l i c i e s for their equitable and efficient g r o w t h " . W o r l d B a n k , W a s h i n g t o n . W o r l d B a n k . 1991. " U r b a n P o l i c y and e c o n o m i c development: an agenda for the 1990s". W o r l d B a n k , W a s h i n g t o n . W o r l d B a n k . A n n u a l Reports: 1970 - 1996. W o r l d B a n k , W a s h i n g t o n . W o r l d B a n k 1994. Governance: the W o r l d B a n k ' s Exper ience . W a s h i n g t o n , D C . W o r l d B a n k 1992. Staff A p p r a i s a l Report - B r a z i l - Water Q u a l i t y and P o l l u t i o n C o n t r o l Project. Infrastructure D i v i s i o n , W o r l d B a n k , W a s h i n g t o n , D C . 231 APPENDIX A SPMA WATERSHED LEGISLATION T H E LAWS 898/75 AND 1172/76 T h e first d i s p o s i t i o n o f watershed protect ion was State L a w 898, dated 18 D e c e m b e r 1975. Its contents were: • the i n d i c a t i o n o f watershed, streams and reservoirs and a l l the protected water resources; • de f in i t ion o f the area to be protected - the drainage bas in o f the protected watersheds; • requirement o f a permit f r o m the Secretariat o f the M e t r o p o l i t a n Issues, re-named Secretariat o f H o u s i n g and U r b a n Deve lopment , hearing C E T E S B i n the environmental aspects for the exercise o f any act iv i ty w i t h i n the protected areas. • d e f i n i t i o n o f sanctions to be appl ied to offenders; • the p u b l i c w o r k s were o b l i g e d to carry out the m i n i m u m requisites def ined by the Secretariat o f the M e t r o p o l i t a n Issues. State L a w 1172 f r o m 17 N o v e m b e r 1976, out l ined: • d e l i m i t a t i o n o f the protected watershed area, and areas o f more or less restr ict ion; • de f in i t ion o f permitted and forbidden occupation uses, establishment o f urban indices , and benefactions for forest preservation; • mandatory permit for r e m o v i n g forest, or m o v i n g s o i l and for the a m p l i f i c a t i o n or intensi f icat ion o f industr ia l operations; 232 demand for protect ion and conservation o f so i l i n agricultural and forestry areas, p r o h i b i t i o n o f p u b l i c sewage and water systems i n the urbanized areas and their borders; mandatory exportat ion o f sewage to other basins; i n case this is not poss ib le , mandatory treatment w i t h a ban o n disposal i n specif ic zones where no sewer system exists; the mandatory o f aseptic tanks; ban o n storing s o l i d waste f r o m p u b l i c c leaning or sewer treatment w i t h i n the protected area, domest ic waste-exempt; restrictions i n use o f nutrients and defensives i n agricultural activit ies; d e f i n i t i o n o f dates for: adaptation o f i n d i v i d u a l sewer systems to the n o r m (3 years); transference o f hospitals , sanatoriums and other p u b l i c health equipment that deal w i t h infect ious-contagious diseases (5 years); deve loping a project for d isposal o f industr ia l sewage (1 year); authority to expropriate estates w i t h i n a specif ic use zone where it c o u l d be demonstrated that the p u b l i c sewer system was not present or was insufficient for the v o l u m e o f effluent, and to expropriate industries where it was demonstrated that it was i m p o s s i b l e to insta l l proper sewage treatment systems; o b l i g a t i o n to allocate 0.5 percent o f the protected areas to metropol i tan p u b l i c parks around the m a i n water bodies; o b l i g a t i o n o f the Secretariat o f M e t r o p o l i t a n Issues to use the technical services o f E M P L A S A - the p u b l i c metropol i tan corporat ion - to f u l f i l l its obl igat ions def ined b y law. 233 T H E DECREES Decree 9714, 19 A p r i l 1977, approved L a w s 868/75 and 1172/76, and defined: • roles o f the Secretariat o f M e t r o p o l i t a n Issues, later H o u s i n g and U r b a n D e v e l o p m e n t o f 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 da Grande Sao P a u l o ( M e t r o p o l i t a n P l a n n i n g C o r p o r a t i o n for Greater Sao Paulo) ; o f 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 Defesa do M e i o A m b i e n t e (State C o r p o r a t i o n for Sanitat ion T e c h n o l o g y and E n v i r o n m e n t Protect ion); and the Secretariat for A g r i c u l t u r e ; • procedures for l i cens ing activit ies and real izat ion o f w o r k s w i t h i n the protected area; • powers and attribution o f c o n t r o l l i n g agents, o f fines for transgressors, and o f procedures for b i l l i n g , f ine c o l l e c t i o n and legal appeals; • m e t h o d o f adaptation for urbanizat ion, bui ld ings and pre-exist ing activit ies, and speci f icat ion o f cr i ter ia for ident i fy ing o f pre-exist ing situations. A s for benefaction for enterprises that preserve forest and a l l forms o f o r i g i n a l vegetation, this decree added to the laws, and forbade the conjo in ing o f areas not adjacent to each other, except w h e n separated b y p u b l i c streets. T h e second set o f regulations created by the L a w s 868/75 and 1172/76, the Decree 12219 (September 1 s t, 1978), authorized the Secretariat for M e t r o p o l i t a n Issues to celebrate agreements w i t h the m u n i c i p a l i t i e s o f the metropol i tan reg ion for examinat ion, adaptation and approval o f u n i - f a m i l i a r h o u s i n g projects w i t h i n protected areas. 234 MODIFICATION OF WATERSHED PROTECTION LEGISLATION Watershed Protection Legislation Revision A l l governors after p r o m u l g a t i o n o f the watershed protect ion legis lat ion tr ied to m o d i f y the laws. S o m e o f t h e m made some alterations; others c o m m i s s i o n e d studies for eventual revis ions . T h e i r p o l i c i e s osc i l la ted between a preservationist v i e w and protecting the interests o f private companies and real estate speculators. M o d i f i c a t i o n actual ly a c c o m p l i s h e d was ins igni f icant . Legislation Modifications in the Maluf Government L e g i s l a t i o n modi f icat ions promoted by the M a l u f government, L a w s 2177/77 and 3286/82, reduced the extension o f the protected area, respectively near the end o f the G u a i o R i v e r and near M o g i das Cruzes m u n i c i p a l i t y . These modif icat ions had litt le impact b e y o n d addressing l o c a l i z e d situations. T h e y can be understood as adjusting the technical proposal to fit p o l i t i c a l real i ty. T h e first m o d i f i c a t i o n happened si lently. B u t the second one was strongly c r i t i c i z e d b y the Legis lature , for setting a serious precedent. B o t h alterations were approved by t ime, a controvers ia l device i n B r a z i l i a n legislative procedures that considers approved a matter that cannot be discussed and either d ismissed or approved w i t h i n a certain t ime-frame. These m o d i f i c a t i o n s , though, were never real ly voted for. Studies during the Montoro Government D u r i n g the M o n t o r o government some modif icat ions also happened. It was the L a w 3286/82, ru led o n legis lat ive procedures concerning alteration o f protected areas. It i m p o s e d a need for 235 technical appraisal f r o m C E T E S B and f r o m the Secretariat for M e t r o p o l i t a n Matters before m o d i f i c a t i o n o f ex is t ing laws. B y subjecting the legislative decis ions to technica l appraisal it encouraged a democrat ic system at the state leve l , reveal ing the attempt f r o m the technica l s t a f f — w i t h i n the E x e c u t i v e p o w e r — t o impose i tse l f to the p o l i t i c a l dec is ion , pecul iar to the legis lat ive power . T h i s technica l p o s i t i o n was c o m m o n dur ing that government 's p e r i o d , at least i n matters o f watershed protect ion. T h e per iod was marked by m a n y studies o f the leg is lat ion, and f e w init iat ives to actual ly m o d i f y it. S o m e observations f r o m reports o f that per iod: • ..."the leg is la t ion was elaborated 10 years ago, and was based i n a survey f r o m 1974. A s the m o n i t o r i n g o f the area was never efficient, the actual s ituation is very different. T h e urbanizat ion is extensive and intense, legal and i l l e g a l " . • ..."the leg is lat ion is very c o m p l e x , di f f icult to understand. It is necessary to c lar i fy it i n order to be understood and obeyed. Besides , the de l imitat ion between the c lass i f i cat ion o f the areas according to its use was never very clear". • ..."the uses and densities permitted were established consider ing bas ica l ly the ex is t ing urbanizat ion i n 1974 and the distance f r o m the water bodies. T h e n e w g e o - m o r p h o l o g i c a l studies o f the reg ion indicate that for certain areas the use needs to be more restricted than the ex is t ing ones. I n other areas, the densities and uses can be increased." 236 • . . ."some o f the legal disposit ions were never regularized as the ones regulat ing the s o i l movements , the use o f ferti l izers, etc.". • ..."there is a need to regularize situation de facto, w h e n imposs ib le to relocate. I n what k i n d o f condi t ions this is g o i n g to happen? F o r the def in i t ion o f criteria it is necessary a survey o f the i l l e g a l consol idated activit ies, as subdiv is ions , b u i l d i n g s , urban activit ies management o f rural plots , etc.". • . . . " i t is reasonable that the munic ipa l i t ies that have part or the totality o f its territory w i t h i n the watershed protect ion are, have a f o r m o f f l e x i b i l i z a t i o n i n order to orient the urban g r o w t h i n their cores, according to their peculiarit ies soc io-economic and geographical . S o m e mechanisms o f compensat ion w i t h i n the munic ipa l i t ies should also be avai lable and permitted, respecting the m e d i u m values dictated by the l a w " . A S p e c i a l C o m m i s s i o n , instal led to study and propose improvement o f watershed leg is lat ion, def ined its immediate aims as: • p r i o r i t y for sanitation infrastructure i n the protected areas; • de-central izat ion and improvement o f the approval process for private projects w i t h i n the area; • r e c o n c i l i a t i o n between m u n i c i p a l legis lat ion i n the areas and exist ing state laws; • creation o f a M e t r o p o l i t a n C h a m b e r for Watershed Protect ion. • studies to investigate f inancia l compensat ion o f munic ipa l i t i es w i t h i n the protected area; • studies to regularize u n l a w f u l situations; • studies to regularize exist ing w o r k s f r o m p u b l i c organizations; 237 • studies to extend the protected area to the l i m i t s o f hydrographic basins important for the M e t r o p o l i t a n R e g i o n • re-study o f cr i ter ia for appl icat ion o f urban indices defined by exist ing leg is la t ion • re-study o f the l i m i t s o f industr ial areas w i t h i n the protected area; • studies by m u n i c i p a l i t i e s to create incentives for the preservation o f native forest i n the protected area. I n a report entit led "Proposals for the R e v i s i o n and Improvement o f the Watershed Protec t ion L a w s " E M P L A S A recommended: • d e f i n i t i o n o f cr i ter ia for appl icat ion o f urban indices to enterprises larger than the l i m i t s o f each c lass i f icat ion; • d e f i n i t i o n o f addit ional restrictions for plots 5 0 0 m 2 or smaller, i n speci f ic areas (class B and Q ; • s i m p l i f i c a t i o n o f the l i cens ing process, e l i m i n a t i n g C E T E S B approval ; • u n i f i c a t i o n o f technical staff f r o m S N M and E M P L A S A , l i n k e d to l i c e n s i n g and m o n i t o r i n g , z o n i n g legis lat ion, industr ia l development, and the pre-approval o f metropol i tan sub-d i v i s i o n s ; w i t h i n E M P L A S A , uni f icat ion o f technical staff; • proposa l o f f inanc ia l compensat ion for munic ipa l i t ies i n c l u d e d i n the protected area. T h e same report also proposed new laws to: • define appl icable restrictions to cemeteries i n the protected area; • extend E M P L A S A ' s mandate to apply and m o n i t o r federal and state environmenta l protect ion l a w c o m p l i a n c e , as w e l l as a l l respective regulations and normat ive acts, i n respect to 2 3 8 preservation o f forest areas and other vegetation, and so i l r e m o v a l connected to m i n i n g act iv i ty w i t h i n the metropol i tan region; • create a consultant c o m m i s s i o n to subside decisions o f the Secretary for the metropol i tan issues; • cancel some ihcongruent articles i n the actual law; • admit , for each size class o f lot, at least the larger d i m e n s i o n o f permitted bui l t area i n the pr ior class; • establ ish administrat ive l i n k s between acts for approval and l i c e n s i n g o f state institutions i n the metropol i tan reg ion, so that the last p u b l i c agent i n v o l v e d receives the i n i t i a l so l ic i ta t ion, and each l icense takes effect after approval o f the last administrat ive act; • substitute a s l i d i n g scale o f fines for a f ixed value i n non-monetary units (because o f in f la t ion problems w i t h updat ing the fines). N o n e o f these proposals resulted i n any init iat ive f r o m the E x e c u t i v e . A p p a r e n t l y , the government was not interested i n propos ing ts o w n modi f icat ions to Watershed protect ion legis lat ion. B u t it offered a subsidy for c i v i l organizations to propose modi f icat ions . Therefore, E x e c u t i v e init iat ives concerning the watershed protect ion leg is lat ion d u r i n g the M o n t o r o government were l i m i t e d to administrative procedures, adopted under one Secretary and r e v o k e d b y the next one. B a s e d o n Justice A c t 117/84, E M P L A S A decided that nothing was i m p e d i n g insta l lat ion o f water supply and sewage c o l l e c t i o n networks i n the allotments and a l l situations pre-exis t ing to the 239 Watershed Protect ion L a w . W i t h this dec is ion, it permitted i m p l e m e n t a t i o n o f extensive networks i n the urbanized and occupied areas that had nervously lacked services. B a s e d o n Justice A c t 078/85, E M P L A S A also made some alterations to the urban indices , i n order to accommodate situtations exist ing i n the periphery and permitted b y the m u n i c i p a l l a w s , wi thout al tering the density and occupat ion standards prescribed by the law. B u t a l l these measures d i d not indicate consensus. D u r i n g its next D i r e c t o r ' s mandate, w h e n the report descr ibed above was developed, E M P L A S A revoked a l l these decis ions, creating a strange s i tuation where the measures accrued more restrictions dur ing interpretation and adaptation o f the leg is lat ion than had been present at the start. The Proposal from the Quercia Government A t this point the E x e c u t i v e sent the proposed L a w 262/88 to the Legis lature . T h e l a w , not voted by the end o f his mandate determined: • restrictions to the regular izat ion o f housing c o n d o m i n i u m s • a d d i t i o n o f certain condit ions to the implementat ion o f infrastructure. services(water and sewage) • o b l i g a t i o n o f the Secretariat for metropol i tan Issues and the Secretariat for the E n v i r o n m e n t to enact a ims, objectives, norms and criteria for regular izat ion or r e m o v a l o f i l l e g a l b u i l d i n g s • creat ion o f a C o m m i s s i o n for m o n i t o r i n g Watersheds T h e first m o d i f i c a t i o n o f the watershed protect ion legis lat ion was L a w 2177, 26 N o v e m b e r 1979, w h i c h changed the descr ipt ion o f the r iver G u a i o , one o f the streams protected by L a w 898/75. 240 Decree 15037, 6 M a y 1980 re-defined the protected area, tak ing into account m o d i f i c a t i o n s introduced b y L a w 2177/79. H o w e v e r , the protected area was def ined by L a w 1172/76 and was therefore exempt f r o m alterations by decree. T h e second m o d i f i c a t i o n to the leg is lat ion was L a w 3286, 18 M a y 1982, w h i c h altered the descr ipt ion o f one o f the watersheds protected - the R i v e r Tiete up stream f r o m M o g i das Cruzes V i l l a g e . In addi t ion, L a w 3286 changed the protected watershed area that h a d been def ined by L a w 1172/76. T h e th i rd m o d i f i c a t i o n , by the same L a w , concerned legis lat ive procedures related to m o d i f i c a t i o n o f protected areas. It demanded previous pronouncement f r o m C E T E S B and the Secretariat for M e t r o p o l i t a n Issues. T H E STATE CONSTITUTION T h e n e w Sao P a u l o State Const i tut ion (1988), A r t i c l e s 205 and 213, contained legal d isposi t ions that dec ided o n the water resources. A r t i c l e s 43 and 4 6 , i n the transit ional d isposi t ions a p p l i e d to the same issue. A r t i c l e 208 forbade the discharge o f untreated effluent into any water body. A r t i c l e 46 a l l o w e d the p u b l i c p o w e r 3 years to impede the p u m p i n g o f used water, wastes and other pol lutant substances into the B i l l i n g s Reservoir . T h e other articles dealt w i t h : 241 • inst i tut ion o f a management system for water resources, w i t h i n 2 years f r o m the b e g i n n i n g o f adaptation w o r k s • protect ion o f groundwater and o f strategic reserves, i n c l u d i n g those used for water supply ; • p u b l i c contr ibut ion to development o f munic ipa l i t ies h a v i n g reservoirs or be ing under their inf luence; • measures for s o i l eros ion control ; • state incentives to munic ipa l i t i es for adopting conservation and water protect ion p o l i c i e s ; • c o l l e c t i o n o f taxes for water resources use; • o b l i g a t i o n o f the State to consider the use o f rivers for energy generation, and to recognize the m u l t i p l e uses, water contro l , drainage, and correct u t i l i za t ion o f the flat l a n d alongside the watercourses; • o b l i g a t i o n o f the State to take into consideration the protect ion o f water qual i ty and quantity, w h e n setting standards for f i shing and hunt activit ies, fauna and forest conservat ion, s o i l protect ion, and protect ion o f other natural resources and the environment. POSITIONS DEFENDED BY CIVIL SOCIETY ENTITIES T h e " C o m i s s a o de Defesa da B i l l i n g s " was created i n 1976. It took a p o s i t i o n against the S A N E G R A N project because it felt the project w o u l d c o m p r o m i s e the central b o d y o f the reservoir. In addic t ion, it was against the state decree re-classi fy ing B i l l i n g s water f r o m class 2 to 3; it was against compartmental izat ion o f the reservoir 's arms, saying this w o u l d c o m p r o m i s e the central b o d y o f the reservoir; and it was against changing watershed protect ion leg is la t ion; it was against the study o f the watershed areas done by F A B E S - U S P ; it was against the p o s i t i o n o f the 242 " A s s o c i a c a o de Defesa do T i e t e " i n favor o f the S A N E G R A N and the compartmenta l i zat ion o f the reservoir 's arms. It favoured the balanced operation that has i m p r o v e d the c o n d i t i o n o f water i n the B i l l i n g s wi thout causing h a r m to cities a long the m e d i u m Tiete. T h e " C o m i s s a o de Defesa da B a c i a da Guarapiranga" , was an the aggregate o f several c i v i c organizat ions f r o m neighborhoods surrounding the Guarapiranga reservoir. It was c o m m i t e d to f ight ing occupat ion o f the reservoir 's border by mansions, c lubs, industries, al lotments, bars and restaurants, because it felt that the best locations were used by private enterprises or owners w h i l e the w o r s t — m u d d y and a b a n d o n e d — w e r e avai lable for people i n need to settle. T h e "Soc iedade A m i g o s da R i v i e r a P a u l i s t a " was an organizat ion i n a n e i g h b o r h o o d o n the reservoir margins . It wanted to preserve the land for low-densi ty use and mainta ined the watershed protect ion legis lat ion to a v o i d devaluat ion o f the land T h e " C o m i s s a o de Defesa da Represa Guarapiranga" , created i n 1983, s h o w e d concern w i t h the increasing deterioration o f the reservoir, and said that it intended to p o l i c e the discharge o f residential wastes and try to impede n e w subdiv is ions and b u i l d i n g s around the reservoir. It adopted a p o s i t i o n contrary to p u b l i c w o r k s that induced occupat ion, such as d u p l i c a t i o n o f the Estrada de Parelheiros , m a i n road access to the area, and introduct ion o f the metropol i tan t ra in i n the region. T h e " A s s o c i a c a o de Defesa do T i e t e " was against the sanitation operation i m p l e m e n t e d i n the B i l l i n g s reservoir saying it was responsible for discharge o f sewage into the Tiete. It was i n favor o f the S A N E G R A N ; it was i n favor o f mainta in ing the L i g h t System, and c o n t i n u i n g o f the 243 H e n r y B o r d e n D a m operation; it was also i n favor o f the compartmental izat ion o f the reservoir 's arms. 244 A P P E N D I X B C A T E G O R Y A R E A S FIRST CATEGORY AREAS I n the first category areas restrictions were most extensive. T h e y i n c l u d e d m a i n l y the m a r g i n a l bands o f protected streams, forests and a l l forms o f indigenous vegetation, and sl ides above 60 percent. T h e discourse o f land use regulat ion was directed towards preserving areas covered by forests and a l l forms o f native vegetation as the m a i n measure to secure the h y d r o l o g i c a l cyc le , and established incentives for enterprises that w o u l d preserve the vegetation as: "The main measure to preserve the hydrological cycle is, without doubt, the stimulus given to the maintenance of the forests, to which is sought an original approach. Instead ofpurely prohibiting the deforestation, which could have the contrary effect desired, the law proposes a group of benefactions for enterprises that preserve the original vegetation. The maximum densities allowed for enterprises that maintain the forests can be 2,8 times higher than the accepted ones in the case of the deforestation, what would contribute as an incentive very efficient for the preservation of the exuberant vegetation still found in the continental slope of the Serra do Mar Coastal Chain, indispensable to the ecological balance of the Paulistano Tableau. " (Sao Paulo Legislative Assembly, 1976). T h e discourse o f the land use regulat ion w i t h i n the watershed protect ion area also charted the protect ion o f m a r g i n a l bands o f water bodies, as: "establishing of a sanitation security band around the watershed, where it will be stimulated the reforestation or at least the use of low vegetation and which would constitute as an efficient measure to retain many toxic substances or nutrients released into the water; 245 Sanitation security band with stimulus to the preservation of the native vegetation because the presence of this vegetation around the watersheds constitute ant efficient obstacle to the conduction of solid waster for drainage waters. " (Sao Paulo Legislative Assembly, 1976) I n first category areas the legis lat ion expressly prohibi ted deforestation and r e m o v a l o f o r i g i n a l vegetation or s o i l except for permitted w o r k s and b u i l d i n g . In these areas leg is la t ion permitted any k i n d o f v is i tors except campers; any sport that does not need permanent instal lat ions; any w o r k s or b u i l d i n g s necessary to protect ion o f the watersheds; regular izat ion o f out f l o w s for m u l t i p l e ends; control o f f looding and water use; s m a l l anchorage ports, boat- launching ramps, tableaux for f i s h i n g and pisciculture tanks. In order to compensate for these severe restrictions, the legis lat ion established incentives for enterprise that w o u l d preserve forests and native vegetation. T h e incentive was an increment o f the urban density index according to the proport ion o f the enterprise areas covered by forests and indigenous vegetation. B u t these incentives were not enough to reinstal l the e c o n o m i c ut i l i ty o f first category areas. These incentives appl ied o n l y to enterprises i n second category class C areas, w h i c h enc irc led areas w i t h i n the first category. In other words , enterprises i n second category areas, classes A and B , w h i c h d i d not c irc le first category areas d i d not receive incentives for preservation o f forests and indigenous vegetation. These enterprises were faced w i t h exactly what the leg is lat ion intended to a v o i d " the pure and s imple p r o h i b i t i o n o f deforestation w h i c h c o u l d result exact ly i n the contrary o f what it is a i m e d at" (Sao Paulo Leg is la t ive A s s e m b l y , 1976). 246 A l s o , these incentives were not attractive enough, because they were added to already very l o w urban indices a l l o w e d w i t h i n second category areas, class C . T h e f o l l o w i n g Table shows indices w i t h incentives i n the proport ion o f the area covered b y indigenous vegetation and forests. Table B.l — Benefactions for the Preservation of Native Forests Forest Density Area Plot Coefficient approv. % Benefact. M i n M a x M i n M a x M i n M a x 10 1 6 34 133 7500 — — 20 1.212 7.3 41.2 109 6188 — — 30 1.424 8.5 48.4 93 5266 — — 40 1.6.36 9.8 55.6 81 4584 — 0.21 50 1.848 11.0 62.8 71 4058 — 0.37 60 2.06 12.3 70.0 64 3640 0.16 0.64 70 2.272 13.6 77.2 58 3301 0.27 0.80 80 2.484 14.9 84.4 53 3019 0.48 0.80 90 2.696 16.1 91.6 49 2781 0.48 0.80 99 2.907 17.4 98.8 45 2579 0.48 0.80 Source: A s the T a b l e il lustrates the urban indices w i t h incentives were s t i l l very l o w compared to standards i n urbanized areas, i n c l u d i n g those i n the low-density neighborhoods o f Sao P a u l o . I n the practice, it d i d not real ly serve the interest o f forest preservation. It was as m u c h a k i n d o f st imulus for their destruction i n the attempt to de-characterize the o b l i g a t i o n o f preservation, as w e l l as for actions against the State i n expectation o f compensat ion for projected losses. I n both cases, the result was the inverse o f what was intended: instead o f preservation, what happened was continuous forest destruction; instead o f regularized private activit ies, w i t h the State assuming eventual ly the preservation o f the vegetation remnants onus. 247 A p p l i c a t i o n o f the leg is lat ion i n first category areas was appreciably di f f icul t . T h e l a w defined as preserved areas the m a r g i n a l bands o f protected water bodies as w e l l as a l l indigenous vegetation. B u t w h i c h m a r g i n a l bands and w h i c h vegetation? B o t h are mutable. A n d there was no registration o f these natural features w h e n the l a w was passed. T h e ex is t ing maps either pre-dated the leg is la t ion or were produced after its approval (1974 and 1977). Because o f d i f f i cu l ty ident i fy ing and characterizing forest and indigenous vegetation, E M P L A S A h a d to impose restrictions according to the latest map produced, based o n the aero-photogrametric survey f r o m 1977. U l t i m a t e l y , this d i d not accurately support the concept described i n the leg is lat ion. So , the p u b l i c po l i t i cs o f regulating h u m a n act ivi ty i n order to protect the watershed emphas ized preserving first category areas i n order to assure the most convenient regime for reanwater drainage and to prevent the carry ing o f s o l i d waste, t o x i n compost and nutrients by r a i n waters. Its mechanisms were to disqual i fy these areas f r o m urban use through severe restrictions and not very attractive incentives, as w e l l as to obl ige their owners to preserve vegetation that was o f no use to them. T h e effect o f this discourse and its mechanisms was also to transfer the cost o f preservation to the State. T h i s had already been determined by j u d i c i a l instances, i n some cases through payment o f compensat ion to the owners. T h i s was i n flagrant contradict ion o f the discourse o f drainage b a s i n preservation w h i c h was presented as a no-cost alternative for the State. 248 SECOND CATEGORY AREAS S e c o n d category areas had fewer restrictions and were the watershed areas e x c l u d i n g the first category areas. These areas were subdiv ided into classes A , B and C corresponding respect ively to areas urbanized before the leg is lat ion took effect, the surroundings o f these urbanized areas, and the r e m a i n i n g protected areas o f the watersheds. T h e discourse surrounding regulat ion o f h u m a n activities w i t h i n second category areas was c lear ly intended to l i m i t their h u m a n occupat ion: "The law has as its nucleus a land occupation model that guarantees the allocation of the maximum population within the hydrographic basins avoiding the risk the drinkability possibilities of the watershed waters. " (Sao Paulo Legislative Assembly, 1976) L i m i t s to h u m a n occupat ion o f second category areas was determined by the watersheds' capacity for c leaning the p o l l u t i o n loads: "The total permissible number of occupants was determined in such way as to guarantee that the pollution loads generated by human activities, after treatment, do not surpass the limit capacity of absorption and removal of pollutants by the watershed, guaranteeing the minimum standards established in legislation already in place. " (Sao Paulo Legislative Assembly, 1976) T h i s l i m i t to h u m a n occupat ion was determined according to p r o x i m i t y to protected water bodies: " // must be implemented, in this way, a zoning for the hydrographic basin, where the larger demographic densities will be situated within the borders of the areas already urbanized, and where the lees demographic density will be close to the watersheds, resulting in a maximum population the assures the desired quality of the waters. " (Sao Paulo Legislative Assembly, 1976) 249 T h i s m o d e l preceeded the s u b d i v i s i o n o f second category areas into classes A , B , and C , further categor iz ing suitabi l i ty for land occupation. Second category areas class A S e c o n d category class A area were already urbanized w h e n L a w 1172/76 was enacted. W i t h i n these areas, regulat ion o f h u m a n activities permitted their occupat ion u n t i l urban infrastructure, especial ly sanitary infrastructure, reached its capacity: "In order to diminish the pollution risk for the watersheds, the spatial distribution of the population is done taking into account the maximum demographic densities allowed and establishing that the increases of population could be attained in the existing urban centers, until their urban infrastructure capacity reaches saturation, especially sanitation. " (Sao Paulo Legislative Assembly, 1976) W i t h i n these areas, land use restrictions d i d not inhib i t urban activit ies, nor d i d it c o m p r o m i s e the e c o n o m i c use o f the properties. A l m o s t a l l uses were permitted, except: a) industr ia l use, w h i c h needs to be submitted for C E T E S B approval ; b) warehouse c o m m e r c e ; c) hospitals , sanatoriums and other p u b l i c health faci l i t ies , except those serving l o c a l p o p u l a t i o n , and not to treat c o m m u n i c a b l e diseases. I n these areas, s u b d i v i s i o n restrictions were severe. H o w e v e r , they d i d not halt urban development because by def ini t ion, these areas were already sub-div ided. T h e m a x i m u m permitted density (total) o f 50 inhabitants/hectare was equivalent to low-densi ty neighborhoods i n Sao P a u l o C i t y . It was l o w e r than the lowest density proposed b y the B a s i c U r b a n P l a n for Greater Sao P a u l o (75 inhabitants/hectare) and it was very restrictive for current patterns w i t h i n 250 the periphery. T h e m i n i m u m size for a residential p lot o f 5 0 0 m 2 was also very restrict ive for the periphery standards already established. W i t h i n these areas, b u i l d i n g restrictions for plots o f 5 0 0 m 2 were compat ib le w i t h h o u s i n g standards f o u n d i n the periphery, and equivalent to the Z - 2 z o n i n g o f Sao P a u l o C i t y . F o r plots larger than 5 0 0 m 2 , these indices were smaller i n proport ion to the larger size o f the lot, m a k i n g the density comparable o n l y w i t h the lowest density ne ighborhood i n Sao P a u l o C i t y . T h e result ing urban standards w i t h i n these areas were s i m i l a r to those i n the urban periphery i n areas not covered by watershed protect ion legis lat ion. These areas were already s u b d i v i d e d w h e n the L a w 1172/76 was passed, and so were not affected by density restrictions and m i n i m u m lot sizes. Understandably , the populat ion bui l t its c i ty us ing patterns and standards they were used to, and according to urban indices accepted by the legis lat ion. H o w e v e r , metropol i tan l i c e n s i n g and l e g a l i z a t i o n o f sub-div is ions , before and after the legis lat ion, were s t i l l not f o r m a l i z e d because they contravened the law. T h e d e l i m i t a t i o n disposit ions i n second category areas not easy to implement . T h e cr i ter ia def ined i n the l a w are objective, but de l imitat ion requires special resources, such as photo-interpretation. I n practice, E M P L A S A has a m o n o p o l y o n de l imitat ion . It has adopted the m o r e restrictive p o s i t i o n o f c lass i fy ing as B or C areas that c o u l d eventually be c lass i f ied as A . A p p l i c a t i o n o f the urban indices established by l a w (occupation index, coeff icient for m a x i m u m bui l t area, height index) has posed some dif f icult ies . In particular, appl icat ion o f the height index 251 permitted some degree o f arbitrariness. In the practice, E M P L A S A sometimes assumed the height index as the coefficient between bui l t areas and ground areas; this represented another restr ict ion. Somet imes the index was calculated as the coefficient between bui l t areas and occupat ion potential , a less restrictive approach. Sometimes, it just exc luded the need for the index. So , the discourse attached to p u b l i c po l i t i cs for the h u m a n activit ies w i t h i n the second category class A areas admitted populat ion increases i n exist ing urban centers, w i t h i n the capacity o f the infrastructure i n place. It established urban parameters equivalent to those ex is t ing i n the periphery except for lots larger than 5 0 0 m 2 , and for sub-divis ions. A s these areas were already sub-div ided , the effect o f the discourse and urban parameters was to g ive coherent f o r m to patterns o f occupat ion already i n place, accepted by the watershed protect ion legis lat ion. Second category areas classes B and C T h e second category classes B and C areas were the drainage basins exc lus ive o f the more restricted areas and areas already urbanized. T h e discourse around regulat ion o f h u m a n activities i n these areas a i m e d at decreasing densities i n the d irect ion o f the watersheds: "In order to diminish the pollution risks of the watersheds, the spatial distribution of the population is done taking into account the maximum densities permissible and establishing that the population increases only happens in the areas of urban expansion and rural areas, guaranteeing that the maximum admissible demographic densities are decrescendo from the borders of the actual urban areas, towards the watersheds. " (Sao Paulo Legislative Assembly, 1976) 252 I n these areas, the restrictions o n the land use d i d not inhib i t urban development, nor d i d they c o m p r o m i s e the e c o n o m i c use o f the properties. W i t h i n the restrictions, a lmost a l l uses were permitted, except those forbidden for class A areas. Restr ict ions o n s u b - d i v i s i o n were more restrictive the closer the lots were to the protected water bodies. Standards were m u c h l o w e r than those currently used i n the periphery, and were o n l y compat ible w i t h w e e k e n d leisure lots. T h e m a x i m u m density p e r m i t t e d — v a r y i n g f r o m 6 to 34 inhabitant/ha—was l o w e r than that o f the lowest dense neighborhoods i n Sao P a u l o C i t y . It was also l o w e r than that established b y the B a s i c U r b a n P l a n for Sao P a u l o (75 inhabitant/ha) T h e m i n i m u m lot size per residential unit varies between 1500 and 3 0 0 0 m 2 , too l o w even for the lowest density neighborhoods i n Sao Paulo . I n these areas, except for plots w i t h d i m e n s i o n s o f less than 5 0 0 m 2 , for w h i c h there are no restrictions, b u i l d i n g regulations are also very restraining. T h e occupat ion index varies between 12 and 25 percent o f the lot area; the coeff icient for m a x i m u m b u i l t area varies between 12 an 50 percent o f the lot area, and the height index varies between 1 and 2 floors. A l l these are more restrictive than the lowest ex is t ing indices i n Sao P a u l o . T h e index for a l lowable impermeable surface was between 30 and 4 0 percent o f the surface o f the lot, compat ib le w i t h the index for m a x i m u m bui l t area for the lot area. T h i s was very different f r o m the habits o f periphery residents, w h o tended to pave the w h o l e surface o f the non-bui l t area o f the lot. Instal lat ion o f water and sewage networks i n the second category class C areas was also forbidden. 253 O n the border o f exist ing urbanized areas a pecul iar situation occurred. I n areas already sub-d i v i d e d to lots smal ler than 5 0 0 m 2 , and therefore not control led by the leg is lat ion, a ban o n p u b l i c water and sewage systems was overruled by rights acquired i n pre-exist ing situations. It persisted, though, for the majority o f b u i l d i n g s , and i n irregular sub-div is ions dating f r o m pre-leg is la t ion t imes. D e l i m i t a t i o n disposit ions had not been easy to apply , because they depended o n the d e l i m i t a t i o n and d imensions o f class A areas. P u b l i c p o l i t i c s for areas B and C i n c l u d e d a discourse that permitted decreasing densities near the watersheds. T h e discourse d isqual i f ied these areas f r o m urban use through urban parameter and regulations too restrictive for the periphery and through p r o h i b i t i o n o f p u b l i c water and sewage systems i n " C " areas. It thus i m p e d e d urbanizat ion o f the larger part o f the protected watershed area, except i n pre-exist ing allotments and o n the border o f the urbanized area. I n pre-exist ing al lotments lots had been occupied according to patterns current i n the periphery and not p r o h i b i t e d by l e g i s l a t i o n — e x c e p t referring to its sub-div is ion . I n the v i c i n i t y o f the urbanized are, i l l e g a l sub-div is ions were occupied according to periphery standards and total ly l a c k e d the necessary p u b l i c infrastructure, equipment and services. 254 APPENDIX C ACHIEVEMENTS TO DATE (SEPTEMBER, 1997) URBAN RECOVERY S l u m U p g r a d i n g P r o g r a m developed by Sao P a u l o C i t y Government through the M u n i c i p a l Secretariat. T o date, 7 s lums have been upgraded serving 2,000 famil ies . W o r k is i n progress i n 15 m o r e s lums and another 168 are i n the contracting phase. T h e y w i l l serve 22 ,000 fami l ies . P u b l i c H o u s i n g P r o g r a m developed by the State Secretariat, through C D H U ( C o m p a n h i a de D e s e n v o l v i m e n t o H a b i t a c i o n a l e U r b a n o - P u b l i c H o u s i n g C o r p o r a t i o n o f Sao P a u l o State). 300 n e w hous ing units have been bui l t to relocate famil ies l i v i n g i n slide-prone or r isk areas, or areas where condit ions prevent i m p r o v e m e n t o f sanitation systems (remaining needed units are be ing contracted) SEWAGE S A B E S P ( C o m p a n h i a de Saneamento B a s i c o do Estado de Sao P a u l o - Water and Sewage C o r p o r a t i o n o f Sao P a u l o State) has isolated and extended 2 4 7 , 8 2 8 m o f sewer l ines, connected to 2 0 , 0 0 0 h o u s i n g units. P lans to i m p r o v e the network to serve 270,000 people are b e i n g i n the contract stage. 255 GARBAGE Plans are be ing developed for the improvement and environmental control o f ex is t ing d u m p areas, complete implementat ion o f the plans is await ing o n legal approval . Garbage c o l l e c t i o n equipment has been acquired for the munic ipa l i t ies o f E m b u , E m b u G u a c u , and Itapecerica da Serra. WATERSHED MANAGEMENT PLAN A geographical i n f o r m a t i o n system has been created for the w h o l e watershed area to facil itate management and g ive the munic ipa l i t ies i n v o l v e d an efficient t o o l to contro l and evaluate land use and occupat ion. H o w e v e r , the necessary equipment and trained personnel to operate the system are s t i l l i n the process o f d iscuss ion. A capacity b u i l d i n g w o r k s h o p was h e l d to stimulate part ic ipat ion b y n o n -governmental organizations i n the watershed management process. T h e M a s t e r P l a n for D e v e l o p m e n t and E n v i r o n m e n t a l Protect ion o f Watershed A r e a ( P D P A -P i a n o D i r e t o r de D e s e n v o l v i m e n t o e Protecao A m b i e n t a l ) has just been put together b y the U G P . T h i s P l a n , w h i c h is currently under analysis by the executive inst i tut ions, comprises complementary procedures, actions, and recommendations for f ina l d e f i n i t i o n o f the M a n a g e m e n t P l a n . It is supposed to take into account also the n e w Watershed Protect ion L a w disposi t ions (statutes). 256 VEGETATION T h e vegetation diagnosis project has identi f ied 500 p r i n c i p a l species o f vegetation w i t h i n the basin. T h e m a i n types are capoeirinha, capoeira, capoeirdo, mata and mata de vdrzea. T e n m o d e l s for the r e c o m m e n d e d reforestation have been created. F o r the borderlands reforestation, 5 0 0 , 0 0 0 scions o f native trees have been planted i n a 200 h a area. A d d i t i o n a l l y , 140ha around rai lroads and roads have been covered w i t h native bushes and trees. A s major urban reforestation, 6 green areas were restored and opened: 3 p u b l i c places w i t h leisure equipment and a green area i n E m b u M u n i c i p a l i t y , and 2 green areas w i t h sports equipment and native reforestation i n Itapecerica da Serra M u n i c i p a l i t y . PARKS A team that w o n a nat ional compet i t ion i n 1990 designed the Parque E c o l o g i c o do Guarapiranga. T h e project w i l l be implemented through an international tender procedure. In the Parque I l h a dos E u c a l i p t o s , w o r k to control the erosion o f the margins has been f in ished, w i t h protective dikes erected and slopes rebuilt . 2,000 scions o f native trees have been planted, and w a r n i n g and educational signs for the permanent preservation o f the areas pos i t ioned i n strategic places. C u l t u r a l and sport faci l i t ies have been bui l t near the entrance o f the Parque V a r z e a do E m b u G u a c u . T h e varzea area, w h i c h acts as a natural f i lter for p o l l u t i o n and helps i m p r o v e water 257 qual i ty , can be accessed o n foot f r o m a pier. The intent is to s h o w the native vegetation wi thout endangering it. S lope s tabi l izat ion and recovery w o r k o f the lake formed by m i n i n g activit ies i n the Parque F r a n c i s c o R i z z o is i n the contracting phase. T h e Parque E c o l o g i c o d a R e p r e s i n h a has been f inished. A n environmental educational centre, h i k i n g trails and leisure areas have been constructed, and the park has been total ly covered by native vegetation f r o m the M a t a A t l a n t i c a . T h e Parque Temat ico i n Itapecerica da Serra is under construction. It w i l l have slope eros ion contro l and an a q u a r i u m housing f i sh species f r o m the Guarapiranga Reservoir . A n educat ional s ign project is be ing implemented i n a l l the parks and green areas, u s i n g the same s y m b o l s i n different colors . 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 Centre o f the M u n i c i p a l i t y o f E m b u is i n the f ina l des ign phase. It i n v o l v e s the re-routing o f traffic w i t h i n the t o w n centre, transferring heavy traffic out o f the area where h is tor ica l monuments are located. T h e design also includes reconstruct ion o f the P r a c a L a g o a dos Jesuitas, as a venue for reenactments o f h is tor ica l events. A n amphitheater for cul tural events is already f inished, w i t h space for E m b u ' s popular and tradit ional p u b l i c market. FISHING AND PISCICULTURE T h i s project, s t i l l i n its i n i t i a l stage, has already led to re-establishment o f 18 f i s h species i n the reservoir. P isc icu l ture (f ish farming) tanks are being instal led i n the water, but it is too soon to assess the potential for f i sh hatchery. 258 MINING T h e assessment o f l o c a l m i n i n g sites w i t h i n the watershed is complete. M i n e r a l potential has been determined, and a p l a n for environmental m o n i t o r i n g o f w o r k i n g and abandoned m i n i n g sites developed, a long w i t h recommendations for their control . LYMNOLOGICAL DIAGNOSIS T h i s project is s t i l l i n the design phase, w i t h data s t i l l be ing col lected. It w i l l lead to a proposa l for m o n i t o r i n g algae i n the reservoir. POLLUTION CONTROL T h e evaluat ion o f diffuse p o l l u t i o n sources has started, w i t h concomitant i m p l e m e n t a t i o n o f m o n i t o r i n g procedures. A mathematical m o d e l is be ing developed to determine the relat ionship between land occupat ion and water qual i ty , to assist i n the des ign o f feasible watershed management. T h e re-registering o f industr ial p o l l u t i o n sources and the registrat ion o f special p o l l u t i o n sources is be ing f ina l ized. Geo-referred data is be ing col lected, as w e l l as data about p r o d u c t i o n processes, and r a w material , water and energy c o n s u m p t i o n o f industry and p r i n c i p a l sources o f non- industr ia l p o l l u t i o n . 259 ENVIRONMENTAL AND SANITATION EDUCATION Centres for environmental education have been established i n E m b u , Sao P a u l o and Itapecerica d a Serra to promote the program and its goals i n loca l schools and at l o c a l events. T h e c a m p a i g n " R i o L i m p o , Represa L i m p a " is i n place, i n v o l v i n g more than 2,000 people, i n c l u d i n