| Hello, *|NOME|* Last month, we completed the report of the first work plan conducted in partnership with Mato Grosso do Sul, as a result of the Technical Cooperation Agreement (TCA) signed between IMDS and the government of that state. The objective of this study was to understand the economic and social impacts of the expansion of the pulp industry in the state, with emphasis on the transformations observed in the municipality of Ribas do Rio Pardo, located in the Pulp Valley, and the challenges and opportunities that these enterprises bring. Between 2006 and 2021, the per capita GDP of Mato Grosso do Sul went from R$ 15.6 thousand to R$ 23.4 thousand, rising from 8th to 4th place in the national ranking. But this economic growth has not yet translated into proportional advances in social indicators. In education, for example, between 2007 and 2023, the Basic Education Development Index (Ideb) for junior high school fell from the 5th best place to the 17th. The analysis of the case of Ribas do Rio Pardo, a city directly affected by the installation of a pulp mill as of 2021, illustrates this contrast: the investment and jobs generated brought economic benefits, but also resulted in considerable pressures on public services and urban infrastructure. The study is divided into five sections that range from the recent socioeconomic context and comparisons with similar cases to the identification of the impacts of the installation of the factory in its different phases. One of the central points was the development of the Map of Potential Effects, a representation in illustrated format of the main effects documented in the literature and collected through interviews. The mapping covers the social and economic impacts of the plant and serves as a tool for managing risks and taking advantage of the opportunities created from the new dynamics that result from the installation. In addition to the effects, the Map also identifies areas where public investment is needed to mitigate negative impacts and maximize benefits. We also developed a monitoring system based on the selection of a set of indicators that must be continuously monitored to prevent the main risks, as well as indicators that signal the positive effects of the implementation of a factory, such as the increase in tax collection. These indicators were designed based on the Effects Map and aim to capture changes accurately and offer subsidies for strategic decision-making, especially with regard to resource allocation and risk anticipation. The report also suggests further studies that can support the formulation of additional policies to address the identified challenges and strengthen the management capacity of municipalities impacted by the pulp industry. As an initial step, we highlight three strategic fronts of action that can be coordinated by the state government in collaboration with local governments. The first of them, the offer of training and professional qualification for the local population, aims to contribute to the improvement of employability, wages and social inclusion. Among the main actions are the implementation of public policies for professional training, with a focus on technical and vocational programs aligned with the demands of the pulp industry; the strengthening of integration between the different levels of education and the productive sector, encouraging internships, training and learning programs; and creation or promotion of centers of excellence in technical training. The second front concerns the technical training of public management. The installation of a large industrial complex increases tax collection, expanding municipal investment capacity and the need to qualify municipal and state technical teams in three priority areas: management of bidding processes, fiscal and financial management, and strengthening of municipal governance. It is essential that the municipal public administration receives adequate technical support to manage the demands arising from large investments. In a practical way, the training should cover all stages of the bidding process. It should train civil servants to rigorously plan and execute the budget and manage cash flow and strengthen municipal governance, focusing on intersectoral organization to respond to immediate demands while promoting medium and long-term planning. Finally, the third strategic front is related to governance and data management. Integrated data management is essential to support decisions in all phases of public policies - planning, execution and monitoring. It is essential that municipal employees are properly supported with technical support for the implementation of local data management systems. By ensuring real-time data collection and analysis, municipalities will be better able to make evidence-based decisions, plan strategic actions, and monitor the results of their policies on an ongoing basis.
This work offers a valuable basis for informed decision-making, providing public managers with a deeper understanding of the effects inherent to the phenomenon studied. In addition, we believe that proposals for capacity building and support for municipalities not only contribute to overcoming current challenges, but also create a solid foundation for inclusive development in the long term. See you in the next "IMDS Letter"! Paulo Tafner CEO |
