San José State University
Department of Economics

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Thayer Watkins
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& Tornado Alley
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The Brazilian Program for the Settlement of Rondonia

There are two themes of the Brazilian government concerning the peripheral areas of the country. One is the need to establish Brazilian development in the isolated areas in order to prevent the political loss of those areas. There is zero probability of the loss of such areas but the concern is a real element of Brazilian politics. In the 19th century there was real concern about such political losses. After all Brazil did acquire territory that Bolivia claimed but had not developed.

The second theme was for the development of frontier areas as a outlet for the footlose poor of the Northeast and elsewhere. During bad times in the NOrthesast the citys of the South such as Rio de Janiero and São Paulo could usually expect a flood of poverty-striken migrants arriving to live in the shanty towns.

In the 1970's the Brazilian government decided to create a settlement program in the western state of Rondonia. The program was implemented by the building of a penetration road from the southeastern states to Rondonia. It was called BR364. It was unpaved and in the rainy season became impassable but it was enough to open Rondonia to a flood of migrants.

The program initially was to be a homesteading program in which a families would receive 100 acres of land. The families had to clear the land and build a house to get full title to the land. The government thought there would be tens of thousands of families participating in the project; instead it turned out that more than a million people moved to Rondonia. Later after major problems developed with the homesteading program the government switched to a program in which ranchers would be given large parcels of land on which they were to raise cattle. However, first the story of the homesteading program will be given.

The families participating in the program did cut the trees on their land and burn them. They built simple houses. They planted a variety of crops, but to their dismay none of them grew. The soil was sandy with only a thin layer of top soil. In the rainy season the land became flooded and there was severe siol erosion.

In the dry season the parched land was bare of vegetation and the winds picked what little top soil there was and blew it around. The air became so thick with dust that planes could not fly. After a couple of heart-breaking years most of the homesteaders moved, either to the little towns that were developing or on to the next state of Acre.

Another problem drove the homesteading from their land. There were native Amerindians in the region. They raided the homestead settlement taking supplies and sometimes burning the houses. They often killed the settlers' dogs. The attacks were not always a matter of conflicting uses of the land. Sometimes the attacks were tribal revenge for attacks carried out by Brazilian poachers operating in the territories where the Amerindians lived. It was a matter of tribal justice; if one of the members of one tribe kills a member of another tribe then the victim's tribe kills anyone of the other tribe regardless if that person had anything to do with the first killing.

The Amerindians were devastated by epidemics of childhood diseases like measles, mumps and chicken pox brought by the setter families. Influenza was also a major killer. The Brazilian Indian agency tried to reach the Amerindian tribes and innoculate them before they came into contact with other Brazilians. They were not always successful.

One of the tribal groups was called the Uru Eu Wau Wau. During the Rondonian settlement program about ten percent of this tribe died of epidemics before the innoculation program was implemented.

The Amerindian tribes were not the only native group in Rondonia to be adversely affected by the settlement program. There were rubber tappers (serengeiros) who were descendants of those Brazilians who had come into the region during the rubber boom of the late 19th century. Their way of living was compatible with the forest whereas that of the recent settlers was not.

(To be continued.)


During the 1980's about 15 percent of the forest of Rondonia was burned. The Brazilian government developed a system for curbing the burning. Every day the Brazilian Space Agency obtained a satellite image of Rondonia which showed where fires were burning. Helicopters carrying policemen and government authorities were then sent to the burn sites. A policeman carrying an automatic weapon was then sent ahead of the government official to discourage any resistance of the people who were at the burn site. The government official then imposed a fine and confiscated the chainsaws of the people at the burn site if they could not establish that they had a permit to carrying out the burning. Politicians however were reluctant to enforce the collection of the fines from the members of their electorate. Nevertheless the program reduced the area being burned by about sixty to seventy percent.

In the late 1980's the Brazilian government petitioned the World Bank for a loan to help pay for the paving of the BR364 penetration road. The loan would cover about one third of the paving costs. The World Bank did agree to help finance the paving of BR364 but it also tried to impose some conditions on the loan that would provide some protection for the environment and the native tribes of Rondonia. Brazil agreed to the terms but did not establish any administrative oversight that would ensure that the conditions were complied with. Opponents of the Rondonia settlement program then campaigned in Washington, D.C. to have the World Bank withdraw its support for the highway building program in Brazil. The World Bank officials were reluctant to jeopardize the relationship with Brazil over the issue. The opponents of the program then petitioned Congress to put pressure on the World Bank over the issue. The U.S. is the largest contributor of funds to the World Bank and has the largest share of the voting concerning the operation of the World Bank. Despite Congress' displeasure over the way World Bank loans were contributing to environmental deterioration in Brazil the World Bank continued to support the highway building programs in Brazil. Final in exasperation Congress voted to cut the U.S. contribution to the World Bank by 20 percent. The World Bank began to give greater consideration to environmental issues in its lending.


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