By Phillip Wagner
Rancharia is 1 of 49 special projects in the state of Bahia supporting 2,250 families. The majority of land is worked communally. Personal responsibility is reinforced by requiring each family to finance their own portion of the land through repayment of low interest government loans over a 20-year period.
Under the guidance of Jacira (Sá), Rancharia participants are attempting to improve output by experimenting with different varieties of stock, and combinations of feed. Native vegetation provides more protein. They've discovered that cutting native vegetation back to 50 centimeters has resulted in a threefold ability of caatinga to sustain goats. This idea was supported by government research, but until now hardly anyone had been willing to seriously consider it. Jacira encouraged the association to give it a try. Prior to cutting back vegetation each hectare of caatinga supported only three goats, but after cutting back it supported nine. This kind of increase in productivity can mean the difference between life and death in such a harsh environment.
Rancharia also has 40 to 50 sheep and 5 bulls. Jacira suspects that the association, which is not in any way bound to follow her advice, wants to purchase more sheep than they're willing to admit. This would, naturally, divert resources from the purchase of additional goats, whose milk is the intended primary source of income for the project. A serious discussion has ensued between Jacira and Arismario, with no apparent consensus as to what should be done. But Jacira, whose only concern is for the welfare of the people involved, remains open minded and wants to continue the dialogue.
If she discovers that purchasing more sheep would be in the best interests of the association, then she'll attempt to redirect their efforts accordingly. But such an adjustment would have to be carefully researched because, on the surface at least, it appears that sheep have limited potential to add long-term value. Jacira thinks this land can sustain sheep within a suitable timeframe for generating substantial income through the sale of meat provided that the rains are what they've been in recent months. But if the weather falls back into its expected, more arid, pattern, she believes this will become problematical.
Traditional local farming practices have focused on the production of meat over milk; and these institutionalized habits are proving difficult to break. Jacira has attempted to convince the association that research indicates there is greater potential to sustain livelihoods by raising goats for milk than sheep for meat. Goats are more suitable to the arid climate, and Jacira currently believes that milk is more profitable. The association owns several varieties of goats and two varieties of sheep. Neither variety of sheep is suitable for producing wool. The association is hoping to diversify within three years to include the cultivation of coconuts and cajus (cashews).
Although the overall project is managed communally, kibbutz style, each participating family is granted four hectares of land exclusively for their own use. This land is generally used to grow the staple foods of the region such as feijão (beans), squash, manioc, watermelon and corn. Participants may sell any excess produce and may purchase livestock individually provided their income is sufficient to cover the cost. During our visit I noted that several of the residents had chickens and/or a pig.
The primary mode of transportation, aside from walking, is horseback, and horse drawn wagons are used to move building materials. Natural bowls in surface rock formations, known as caldeirões, or caldrons, retain rainwater and are fenced off for protection. Although usually very dirty, and a breeding ground for bacteria and insects, this resource is considered acceptable for consumption when precious little water is otherwise unavailable.
According to Leopoldo Mont'alverne, who is responsible for CDA oversight throughout the state of Bahia, implementation of Cédula da Terra is staged. Leopoldo was allocated to CDA after a decade with CAR, and has been with CDA for as long. 
He'd earlier spent seven years on the Comissão Estadual de Planejamento Agrícola, or State Agricultural Planning Commission, that were preceded by four years with Trabalhar com Crédito Rural, which provided credit for small peasant farmers.
Data from the Brazilian office of the World Bank indicates that 150 million dollars was budgeted for the program pilot, which, as previously mentioned, was initiated in 5 northeastern states. (See http://www.dataterra.org.br/cedterra.htm)
Data detailing projects in each of those states as of March 1999 is available on-line, as is a project overview for those fluent in Portuguese:
Bahia
Ceara
Maranhoa
Minas Gerais
Pernambuco
Cedterra
Good Results
Sixty percent of the overall budget, or $90 million, was funded by World Bank to underwrite expenses associated with investments in infrastructure, technical assistance and so on. The federal government of Brasil provided another $45 million, or 30 percent of the budget, to finance acquisition of property. Participating state governments were made responsible for $6 million, or 4 percent of the budget, to administer, monitor and supervise the individual projects (like Rancharia). The final 6 percent, or $9 million, will come from project participants over time. World Bank believes that participants should finance at least 10 percent of community sub-projects by providing funds, materials or "sweat equity" labor.
The Cédula da Terra pilot, according to Leopoldo, grew out of programs established to fight hunger in Bahia (Produzir) and in the arid sertão region of the state of Ceará (São José). Each of the two anti hunger campaigns had been co-funded by the World Bank. The University of São Paulo in Campinas (Unicamp) and the Food and Agricultural arm of the United Nations recently conducted an assessment of the Cédula da Terra pilot. Favorable results were presented at a June 2000 meeting with the World Bank in Washington D.C.; and funding for a post-pilot phase will become available over time through normal administrative channels.
Leopoldo says that CDA in Bahia already has sufficient funding for 60 more projects, which would bring the total in Bahia to 109. Phase 1 funding will probably not supplement investment in Bahia. It is primarily intended for use to expand geographic coverage, so that projects may be established in seven additional north and northeastern states as well as three states in the south of Brazil. The same assessment and review approach will be applied to phase 1 as was used for the pilot program.
Brazilian government and World Bank officials have already agreed to providing $400 million for phase 1, and another $400 million for a second phase provided the pilot program successes can be repeated. Phase 2 funding would "kick in" automatically following a favorable phase 1 audit and review. Phase 2 funds will likely be used to expand existing production. Cédula da Terra is expected to invest $2 billion in its quest to facilitate redistribution of land benefiting 200,000 families in Brazil. Since the land being allocated to projects under Cédula da Terra is purchased outright, procurement can be accomplished in only months, and without re-igniting old tensions or precipitating new ones.
The positive results delivered at the recent pilot program review in Washington seem to confirm that Cédula da Terra is having the desired impact. But the challenges facing Brazil are so serious that Jacira Sá, her husband Jairo, and others remain concerned. Jairo works for CAR, the previously mentioned governmental organ that works to secure funding for very large projects undertaken to relieve the suffering of rural peasants. CAR is the organ that developed the original relationship with World Bank, and had the existing infrastructure to generate funding. But since CDA already had ownership of agrarian reform, a working relationship resulted whereby programs established by CDA are reviewed by CAR for consideration of funding by financial institutions. Under this arrangement, sole responsibility for Cédula da Terra program execution has fallen to CDA. But CAR has ultimate responsibility for Cédula da Terra oversight, to which four CAR executives are dedicated.
Opposition to Cédula da Terra focuses primarily on the idea that a market-driven approach inappropriately rewards the wealthy while unfairly penalizing the poor. But this criticism overlooks the fact that society's "haves" are never inclined to give away advantage without incentives. And the "have-nots" are unlikely to assume responsibility without the challenge of personal investment. An excellent analysis of Cédula da Terra, including a detailed explanation of the opposition, has been authored by Zander Navarro for the Brazilian office of World Bank. Read more>
Zander's 28-page report includes a critique of the project implementation up until August of 1998, and consideration of risks associated with projected expansion. Opposition, in any case, does not seem to be widely institutionalized or cohesively organized (ref Zander's report). Perhaps because Cédula da Terra, as previously noted, puts land in the hands of impoverished and/or landless peasants more expeditiously than traditional land redistribution approaches. Also perhaps because many, if not most, of the program's administrative and technical staff are members of the Partido dos Trabalhadores (PT), or Workers Party (a personal observation in Bahia), which previously tended to support MST and other organizations now deemed critical of Cédula da Terra.
Agrarian reform in Brazil has long been championed by politically fueled organizations like the Confederação Nacional dos Trabalhadores (Contag), Comissão Pastoral da Terra (CPT) which is subordinate to the Conferência Nacional dos Bispos do Brasil (CNBB), Movimento dos Trabalhadores (MT), Movimento de Luta pela Terra (MLT), Movimento dos Pequenos Agricultores (MPA) and, of course, the previously mentioned MST (Movimento dos Trabalhadores Rurais sem Terra).
Jacira and Jairo say that support of future political administrations is critical. Cédula da Terra seems to be working for now. But the ever-present fear that a change of government could bring the program to an untimely end hangs over all of northeastern Brazil. And there are other concerns to be addressed. The magnitude of the more immediate need to redistribute land is so great that no one seems to be looking beyond the current generation. What will hold the children and grandchildren of program participants to the land their fathers manage to secure for themselves and their families?
Improvements in living conditions could trigger a cycle of increasing expectations that ranching alone may not be able to satisfy. Determined future generations may resume the exodus to large cities that has contributed to the 
explosive growth of favelas and threatened to destabilize Brazilian society. Eco-tourism and Internet telecommuting seem to offer intriguing future possibilities for creating a more diversified economic base. But aggressive long term planning to assess appropriate strategies, consider potential environmental impacts, design educational and training programs, estimate cost, secure funding and define & establish prerequisite infrastructure would have to be initiated.
An article on page B1 of the 7 July 2000 edition of the Wall Street Journal describes a similar program undertaken on "desolate Indian land" in the United States. A catholic school became the catalyst for what the article describes as "an Internet revolution", facilitated by "the generosity of an IBM retiree" and a "super-fast T1 line". The article notes that the "data line was installed by Gila River Telecommunications Inc. (GRTI), an Indian-run telephone company… that was established in 1990 as a non-profit telephone company". Up until that time "fewer than 10 percent of the reservations residents had telephone service" and the estimated cost of public telephone service was prohibitive. A leader of the Pima Indian tribe that inhabits the 620-square-mile reservation is quoted as saying, "We're an example of what can be done when you put your mind to it"
Who would be available to lead such an effort, and who would pay the bill? At this point there still seem to be far more impoverished and/or landless peasants than Cédula da Terra will be able to serve. Jacira noted that each new dwelling constructed for project participants costs only $1,500 reais; about $850. "Its inconceivable" she says "that the government can't find the money to build more homes".
In fact, on July 3rd the federal government announced its desire to supplement 3.3 billion reais (Brazilian dollars) already targeted, but not yet approved, for land expropriation with another 1.2 billion reais to construct additional housing in rural settlements. More than a quarter million families are expected to benefit through the year 2002. "What will be the cost to Brazil," Jacira wonders, "if we fail to effectively address the hunger and misery of these people".
Organizations names in English:
CAR : Enterprise of Development and Regional Action
CDA : Coordination of Agricultural Development agency
CNBB : National Bishops Conference of Brasil
CONTAG : National Confederation of Agricultural Workers
CPT : Pastoral Commission of Land
CTP : Cédula da Terra Program
CRA : Coordination of Natural Resources
DRT : Regional Delegation of Work
DTC : Land Settlement Division
IBAMA : Brazilian Institute of Environmental Conditions and Renewable Natural Resources
INCRA : National Institute of Colonization and Agricultural Reform
INIC : National Immigration and Settlement Institute
MT : Laborer's Movement
MLT : Fight for Land Movement
MPA : Small Farmers Movement
MST : Movement of those Without Land
PRONAF : National Program of Common Agriculture
PT : Workers Party
Phillip Wagner - copyright 09/01/2000
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