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EST. ECON., SÃO PAULO, V. 30, N. 3, P. 351-375, JULHO-SETEMBRO 2000 Sustainability or Natural Capital Disinvestment? A Retrospective on Brazilian Economic Growth, 1965-1993 Mariano Torras Assistant Professor of Economics, Adelphi University ABSTRACT This paper evaluates the consequences of the Brazilian economic miracle of the 1960s and 70s on the countrys natural environmental, with particular attention to two questions. First, to what extent did natural resource depletion - particularly Amazonian deforestation - after the economic miracle impact adversely on the opportunity for continued well- being improvements in Brazil? Second, was the government policy of targeting incentives toward investment in the Brazilian states in the North and Center-West economically sustainable in the long run? To address the first question, I use a green accounting framework that corrects GDP growth for the value of depleted mineral, timber, and soil stocks, and apply it to Brazilian data from 1965 to 1993. For the second question, I base sustainability on whether gross capital formation exceeds the total value of resource depletion, and compare results under two alternative indicators for the same period. The results are generally inauspicious, especially in years subsequent to 1980, and cast considerable doubt on the efficacy of earlier government policies. KEY WORDS national income accounting, natural resource depletion, sustainability RESUMO Este trabalho avalia as conseqüências do milagre econômico dos anos sessenta e setenta sobre o meio ambiente, com particular atenção a duas questões. Primeiro, em que medida o esgotamento dos recursos naturais depois do milagre - especialmente o desflorestamento no interior do País - afetou adversamente a possibilidade de melhoria continuada no bem-estar social brasileiro? Segundo, teria sido sustentável, no longo prazo, a política de dirigir os incentivos econômicos para investimentos nas regiões Norte e Centro-Oeste? Para responder à primeira pergunta, utilizo um método de contabilidade verde, que corrige o crescimento de PIB pelo valor dos recursos naturais exauridos - minerais, madeira, e solo, neste caso - e o aplico a dados das contas nacionais de 1965 a 1993. Quanto à segunda pergunta, baseio a noção de sustentabilidade na possibilidade de a formação bruta de capital fixo exceder o valor total dos recursos exauridos, e comparo os resultados para o mesmo período com dois indicadores alternativos. Os resultados finais são geralmente desfavoráveis, especialmente após 1980, e lançam considerável dúvida sobre a eficácia da política dos anos anteriores. PALAVRAS-CHAVE contabilidade da renda nacional, esgotamento de recursos naturais, sustentabilidade JEL classification O13, O54

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[K@CC@EA=%E]%FI?@=)%3cc0%GF@MI=P

Year Mineral Loss As % of GDP

Timber Loss

As % of GDP

Soil Loss

As % of GDP

1965 75.5 2.0% 1,129.6 30.5% 189.0 5.1% 1966 66.8 1.7% 1,047.1 27.3% 191.1 5.0% 1967 64.6 1.6% 1,123.8 27.8% 193.3 4.8% 1968 79.8 1.8% 1,275.5 28.5% 195.7 4.4% 1969 104.0 2.1% 1,443.3 29.3% 198.2 4.0% 1970 153.7 3.0% 1,559.9 30.9% 200.5 4.0% 1971 162.2 2.9% 1,682.4 29.9% 188.0 3.3% 1972 159.3 2.5% 1,876.5 29.8% 197.3 3.1% 1973 163.8 2.3% 2,138.1 29.8% 206.0 2.9% 1974 185.2 2.4% 2,374.2 30.6% 323.6 4.2% 1975 185.6 2.3% 2,672.8 32.8% 295.8 3.6% 1976 240.4 2.7% 2,607.6 29.0% 240.6 2.7% 1977 226.4 2.4% 2,447.0 25.9% 237.8 2.5% 1978 189.6 1.9% 2,509.3 25.3% 214.5 2.2% 1979 302.4 2.9% 2,675.7 25.3% 267.1 2.5% 1980 644.9 5.6% 3,167.3 27.4% 284.6 2.5% 1981 566.4 5.1% 3,305.7 29.9% 266.9 2.4% 1982 601.4 5.4% 3,451.1 30.9% 293.7 2.6% 1983 1,043.5 9.6% 3,603.8 33.3% 263.4 2.4% 1984 1,336.5 11.6% 3,764.3 32.7% 277.9 2.4% 1985 1,286.5 10.4% 4,026.4 32.5% 311.3 2.5% 1986 921.8 7.0% 4,999.9 37.7% 244.3 1.8% 1987 987.7 7.2% 5,256.9 38.4% 229.3 1.7% 1988 1,448.4 10.6% 5,486.3 40.1% 276.1 2.0% 1989 1,160.2 8.1% 5,681.4 39.9% 294.5 2.1% 1990 990.3 7.3% 5,947.9 43.7% 299.7 2.2% 1991 989.2 7.3% 6,271.4 46.0% 305.0 2.2% 1992 1,089.7 8.1% 6,616.5 49.0% 309.2 2.3% 1993 981.8 7.0% 6,984.9 49.5% 313.7 2.2%

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OK@CC@EA%FI?@=)%3cc0%GF@MI=P

Year

GDP

Fixed Capital

Consumption

NDP

Total Resource Depletion Loss

Sustainable

Income

1965

3,701.1

190.7

3,510.4

1,394.1

2,116.3

1966

3,839.8

165.8

3,674.0

1,305.0

2,369.0

1967

4,045.3

172.6

3,872.7

1,381.7

2,491.0

1968

4,482.4

192.4

4,290.0

1,551.0

2,739.1

1969

4,920.8

214.2

4,706.6

1,745.4

2,961.1

1970

5,049.6

268.1

4,781.4

1,914.1

2,867.3

1971

5,621.6

295.6

5,326.0

2,032.7

3,293.3

1972

6,294.0

326.6

5,967.5

2,233.1

3,734.3

1973

7,171.9

345.8

6,826.1

2,508.0

4,318.1

1974

7,755.1

371.0

7,384.1

2,883.0

4,501.2

1975

8,158.8

386.3

7,772.5

3,154.2

4,618.3

1976

8,994.6

422.5

8,572.1

3,088.5

5,483.6

1977

9,437.9

431.4

9,006.5

2,911.1

6,095.4

1978

9,907.2

457.8

9,449.4

2,913.4

6,536.0

1979

10,577.1

475.0

10,102.1

3,245.2

6,856.9

1980

11,552.8

457.5

11,095.3

4,096.8

6,998.6

1981

11,063.7

479.6

10,584.2

4,139.0

6,445.1

1982

11,154.1

610.0

10,544.1

4,346.2

6,197.9

1983

10,827.2

509.0

10,318.2

4,910.7

5,407.5

1984

11,515.7

541.4

10,974.3

5,378.8

5,595.5

1985

12,382.5

582.2

11,800.3

5,624.2

6,176.1

1986

13,249.2

622.9

12,626.3

6,166.1

6,460.3

1987

13,697.5

644.0

13,053.5

6,473.9

6,579.6

1988

13,688.8

643.6

13,045.2

7,210.8

5,834.5

1989

14,239.8

669.5

13,570.4

7,136.2

6,434.2

1990

13,620.7

640.4

12,980.3

7,237.9

5,742.5

1991

13,620.7

640.4

12,980.3

7,565.6

5,414.7

1992

13,496.9

634.5

12,862.3

8,015.4

4,846.9

1993

14,116.0

663.7

13,452.3

8,280.3

5,172.0

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1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

Per Capita GDP

Per Capita SustainableIncome

$8^7A*X*^A9<*:77S9<@8<A9*<BA*9B8@C*D:;;A@A>6A*:>*@A9=S@6A*DAC7A<:=>*P=7SGA*^A<TAA>

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+!:S'H"

1965-93

1965-80

1980-93

Per Capita GDP 2.6% 5.3% -0.4% Per Capita Sustainable Income 1.0% 5.7% -4.2%

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Year

Gross Domestic

Investment

Value of Resource

Depletion

Depletion-Adjusted

Domestic Investment

DADI as

Percent of GD 1965

699.1

1,394.1

-695.0

-18.8%

1966

810.3

1,305.0

-494.7

-12.9%

1967

830.8

1,381.7

-551.0

-13.6%

1968

1,011.7

1,551.0

-539.3

-12.0%

1969

1,170.2

1,745.4

-575.3

-11.7%

1970

1,221.5

1,914.1

-692.6

-13.7%

1971

1,414.8

2,032.7

-617.9

-11.0%

1972

1,579.9

2,233.1

-653.2

-10.4%

1973

1,751.7

2,508.0

-756.2

-10.5%

1974

2,060.9

2,883.0

-822.0

-10.6%

1975

1,900.9

3,154.2

-1,253.3

-15.4%

1976

2,013.9

3,088.5

-1,074.6

-11.9%

1977

2,008.3

2,911.1

-902.8

-9.6%

1978

2,207.5

2,913.4

-706.0

-7.1%

1979

2,473.5

3,245.2

-771.7

-7.3%

1980

2,631.1

4,096.8

-1,465.7

-12.7%

1981

2,550.3

4,139.0

-1,588.8

-14.4%

1982

2,432.7

4,346.2

-1,913.5

-17.2%

1983

2,019.2

4,910.7

-2,891.5

-26.7%

1984

1,903.2

5,378.8

-3,475.6

-30.2%

1985

2,365.8

5,624.2

-3,258.4

-26.3%

1986

2,528.9

6,166.1

-3,637.2

-27.5%

1987

3,046.1

6,473.9

-3,427.9

-25.0%

1988

3,108.5

7,210.8

-4,102.3

-30.0%

1989

4,076.0

7,136.2

-3,060.2

-21.5%

1990

2,971.8

7,237.9

-4,266.1

-31.3%

1991

2,562.8

7,565.6

-5,002.8

-36.7%

1992

2,551.2

8,015.4

-5,464.2

-40.5%

1993

2,734.0

8,280.3

-5,546.3

-39.3%

Page 18: 0&$%)+1&&’23#$43’$5 6+73$-,#038$&23+,’+9-%:&)&%’ · !"#$%!&’($)%"*’%+,-.’)%/$%01)%($%0)%+$%0234052)%6-.7’4"!#!89:’%;111!"#$%&’%(&)&$*+,-+.%$"-%) /%0&$%)+1&#&’23#$43’$5

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Year

Gross Domestic

Saving- GDP Ratio

Fixed Capital

Consumption-GDP Ratio

Resource Depletion- GDP Ratio

Pearce & Atkinson

Sustainability Index

1965

21.4%

5.2%

37.7%

-0.214

1966

21.3%

4.3%

34.0%

-0.170

1967

20.3%

4.3%

34.2%

-0.182

1968

21.7%

4.3%

34.6%

-0.172

1969

21.4%

4.4%

35.5%

-0.184

1970

23.7%

5.3%

37.9%

-0.195

1971

23.6%

5.3%

36.2%

-0.178

1972

23.4%

5.2%

35.5%

-0.173

1973

23.3%

4.8%

35.0%

-0.165

1974

20.9%

4.8%

37.2%

-0.210

1975

19.4%

4.7%

38.7%

-0.240

1976

20.0%

4.7%

34.3%

-0.190

1977

20.6%

4.6%

30.8%

-0.148

1978

21.1%

4.6%

29.4%

-0.130

1979

21.3%

4.5%

30.7%

-0.139

1980

20.5%

4.0%

35.5%

-0.189

1981

22.7%

4.3%

37.4%

-0.191

1982

21.1%

5.5%

39.0%

-0.233

1983

21.1%

4.7%

45.4%

-0.289

1984

22.4%

4.7%

46.7%

-0.290

1985

24.2%

4.7%

45.4%

-0.259

1986

21.5%

4.7%

46.5%

-0.298

1987

25.5%

4.7%

47.3%

-0.265

1988

27.9%

4.7%

52.7%

-0.295

1989

32.3%

4.7%

50.1%

-0.225

1990

23.6%

4.7%

53.1%

-0.343

1991

20.8%

4.7%

55.5%

-0.394

1992

22.4%

4.7%

59.4%

-0.417

1993

21.6%

4.7%

58.7%

-0.418

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