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### Viewing cable 06BRASILIA2678, Visit of Professor Jeffrey Sachs to Brazil

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06BRASILIA2678 | 2006-12-26 15:56 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    VZCZCXRO3914
    RR RUEHRG
    DE RUEHBR #2678/01 3601556
    ZNR UUUUU ZZH
    R 261556Z DEC 06
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 7715
    INFO RUEHRI/AMCONSUL RIO DE JANEIRO 3599
    RUEHRG/AMCONSUL RECIFE 6040
    RUEHSO/AMCONSUL SAO PAULO 8900
    RUEHLP/AMEMBASSY LA PAZ 5067
    RUEHPE/AMEMBASSY LIMA 3297
    RUEHBO/AMEMBASSY BOGOTA 4051
    RUEHMN/AMEMBASSY MONTEVIDEO 6662
    RUEHAC/AMEMBASSY ASUNCION 5854
    RUEHBU/AMEMBASSY BUENOS AIRES 4488
    RUEHSG/AMEMBASSY SANTIAGO 5995
    RUEHTO/AMEMBASSY MAPUTO 0087
    RUEHLU/AMEMBASSY LUANDA 0128
    RUEHLI/AMEMBASSY LISBON 0412
    RUEHRC/USDA WASHDC

` `

    UNCLAS SECTION 01 OF 03 BRASILIA 002678

    SIPDIS

    SIPDIS

    DEPARTMENT PASS EPA, HHS, CEQ
    USAID FOR AA/LA

    E.O. 12958: N/A
    TAGS: SENV PREL ECON EAID BR
    SUBJECT:  Visit of Professor Jeffrey Sachs to Brazil

    ¶1.  Summary.  During a December 12-13 visit to Brasilia and Sao
    Paulo, noted economist Jeffrey Sachs met with high-level government
    policymakers, NGO representatives, and business representatives.  In
    his meetings with Brazilian interlocutors, Sachs stressed that the
    U.S. and Brazil need to find a way to work together to tackle key
    problems such as poverty, development, climate change, disease, and
    deforestation.  He emphasized the interrelated nature of all these
    issues and suggested that the two governments look to partner to
    help Luso-phone Africa deal with these problems.  In his public
    remarks to the media and the business community in Sao Paulo, the
    Ambassador underscored the responsibility of the private sector to
    promote development through training and education.  The Sachs visit
    was extremely helpful to the Mission in bringing to the fore the
    United State's desire to move forward on the pressing environmental
    and development issues within this hemisphere and the Third World.
    By highlighting our desire to build bridges between our two
    countries, this kind of programming is invaluable to our efforts to
    improve the image of the U.S. abroad. End Summary.

    ----------------------- -------------------------------
    Meeting with Presidential Advisor Marco Aurelio Garcia
    ----------------------- -------------------------------

    ¶2.  In his December 13 meeting with Presidential foreign policy
    advisor Marco Aurelio Garcia, Sachs focused on (1) sustainable
    development cooperation efforts between the U.S. and Brazil,
    particularly in Africa, (2) the role of both bio-fuels and effective
    malaria prevention as components of these efforts, and (3) a
    post-Kyoto system for climate control that involves incentives for
    avoidance of de-forestation.  He sought Brazilian involvement in all
    of these areas, in conjunction with UN, bilateral or private
    projects, and emphasized that Africa looks to Brazil and Lula for
    leadership, expertise and technology assistance.

    ¶2.  On malaria, Sachs previewed his participation in President
    Bush's Prevention of Malaria Initiative (PMI), reviewed the gravity
    of the malaria threat in Africa (two million dying per year), and
    also noted Brazil's substantial malaria problem.  For very low cost
    in comparison to the potentially profound benefits, prevention
    projects (e.g., distribution at low cost of thousands of bed nets)
    and innovative pricing/distribution of modern medicines could --
    "from one day to the next"  -- make a drastic difference in Africa's
    malaria problem, he declared.

    ¶3.  According to Sachs, bio-fuels technology also offers enormous
    hope and promise in Africa, and here Brazilian leadership and
    technology are absolutely key.  Biofuels offers the potential for
    employment, industrialization, profitable agriculture, and business
    - all elements that, like health, are essential to the village-based
    development model Sachs' Millennium Project has implemented with
    success in some African states.  Creating a "payment stream" to
    provide incentives for poor countries to avoid deforestation is also
    a transformational concept that ought to be implemented, Sachs
    continued, noting that Brazilian leadership here would also be
    crucial.

    ¶4.  Sachs proposed Sao Tome as one micro-state in which low cost but
    thoughtfully coordinated initiatives in both malaria and bio-fuel
    development would literally transform the country in a short period.
     Mozambique, on a much larger scale in terms of bio-fuel capacity,
    is another nation receptive to, and ripe for, transformational
    programs.  Sachs urged consideration of U.S.-Brazil joint efforts in
    both states.

    ¶5.  Garcia replied that Africa is a major element in contemporary
    GOB foreign policy;  he noted the recent Brazil-Africa summit,
    multiple Lula visits to Africa, and the fact that 20 African heads
    of state have visited Brazil.  Lula sees Africa as an important
    vocation for Brazil, not only Lusophone Africa, he said, with
    African countries looking to Brazil for leadership and help.

    ¶6.  Garcia said Brazil would welcome "trilateral cooperation"
    projects with the U.S. in Africa.  In health, Brazil is planning a
    factory in Africa for the production of HIV medicines and the GOB is

    BRASILIA 00002678  002 OF 003

    also focused on malaria there.  He noted that he had visited Sao
    Tome, and opined that the tiny country is "completely dominated by
    malaria."   But "with just 20 million dollars you could end the
    problem there once and for all."

    ¶7.  On bio-fuels, Garcia reviewed the integral role in Brazil's
    energy matrix now played by various forms of bio-fuels.  He
    discussed Brazil's evolving program to provide tax breaks to
    bio-diesel producers who purchase raw product from family farms -
    e.g., a small bio-diesel plant with 20 or 30 employees can generate
    rural employment for around 20,000 people.  In Africa, the potential
    for such projects would be highly promising, both in terms of energy
    and economic development, and for employment - especially keeping
    people gainfully employed in the countryside, and away from the
    chaotic cities.

    ¶8.  Sachs replied that Brazil's timing and ideas are perfect, and
    Sao Tome and Mozambique would be excellent starting points for
    collaborative efforts.  He urged the GOB to send a high-level
    delegation to the January African Union meeting in Ethiopia, where
    these issues could be discussed with interested nations.

    ------------------- -----------------------
    Meeting with Chief of Staff Dilma Rousseff
    ----------------- -------------------------

    ¶9.  Sachs reviewed the same prime issues with Rousseff:  i.e.,
    cooperation on malaria and bio-fuels in Africa, the President's
    Malaria Initiative, and de-forestation.

    ¶10.  On malaria, the Brazilian Health Minister and his malaria
    program director were also present in the meeting, and they provided
    information on the scope of Brazil's malaria problem.  Brazil
    registered 500,000 cases last year, but with fewer than a dozen
    fatalities, they said.  All states but Acre are show a decrease in
    malaria.  The outbreaks are concentrated in Amazonas and Acre, and
    are spread by bites in outdoor environments, as opposed to African
    bites, which often occur within dwellings - hence use of bed nets
    has not been a priority in Brazil -- although the Health Ministry
    will expand their usage in the near future, Sachs was told.

    ¶11.  Sachs expressed admiration for Brazil's leadership and
    technological progress in bio-fuels, and said bio-fuels are a key
    component for African poverty alleviation, one "that makes good
    development and political sense." He again proposed Sao Tome and
    Mozambique as good pilot states - in  different ways -- for
    bio-fuels and health projects.

    ¶12.  Rousseff welcomed enthusiastically Sachs' interest in
    cooperation with Brazil on bio-fuels and development projects in
    Africa.  "We can make a partnership," she declared explicitly,
    underscoring, like Garcia, Lula's strong commitment to Africa.   She
    noted that Lula had instructed his ministers to develop, in his
    second term, a structured program of assistance to Africa, and that
    a task force is now being formed for this.  The task force will
    include several ministries, EMBRAPA, and Petrobras.

    ¶13.  Rousseff discussed at some length the various types of
    bio-fuels in development and use in Brazil, and their applicability
    to different situations in developing states.  For Africa,
    bio-diesel could be the best solution in some agricultural
    environments, while ethanol could work elsewhere, although ethanol
    requires larger scales of production for viability then bio-diesel
    production, which can be usefully carried out on a micro scale.
    Rousseff also said Brazil is looking at providing some of its
    successful R&D in soils and seeds to Africa - she noted that Sao
    Tome is located at the "continental breakage point" from which the
    South American continent appears over the millennia to have
    separated from Africa.  Hence soil conditions there could be
    amenable to successful Brazilian soil/seed projects that have vastly
    increased Brazilian agricultural productivity in previously fallow
    areas.

    ¶14.  Rousseff also noted the African Union Summit in Ethiopia in

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    January, and said Brazil planned to send a delegation.

    --------------------- ----------------------------
    Meeting with Minister of Environment Marina Silva
    ---------------------- ---------------------------

    ¶15.  In his call on Environment Minister Marina Silva, Sachs
    expressed interest in Brazil's plan for payment for avoided
    deforestation (note: Foreign Ministry officials at the December 13
    Common Agenda Meetings clarified that the GOB avoids the use of the
    term "avoided deforestation" in favor of "positive incentives to
    reduce deforestation emissions").  Marina Silva characterized the
    "positive incentive" proposal presented by Brazil at the November
    U.N. Framework Convention on Climate Change meeting in Nairobi as a
    paradigm shift, and the "challenge of the century," asserting that
    reductions in deforestation during the past two years are
    attributable to coordinated action of thirteen ministries to fight
    illegal deforestation.  Minister Silva described the positive
    incentive payment program as results-based and entirely voluntary.
    Payments would only be made when and if a developing country
    succeeds in reducing deforestation beyond an agreed reference
    emissions rate.  She described this initiative as a positive example
    and fruit of long-term international scientific collaboration in
    Brazil (note: background field science and policy analysis on this
    issue were supported by USAID/Brazil.  Jeffrey Sachs described the
    positive incentive proposal as a very powerful approach to
    sustainable development, one that could become a signature issues in
    the search for practical solutions to greenhouse gas emissions,
    biodiversity loss, malaria outbreak, and rural poverty resulting
    from tropical deforestation.

    --------------------------- -----------------------------
    Corporate Social Responsibility (CSR) Event in Sao Paulo
    --------------------------- -----------------------------

    ¶16.  Late in the afternoon on December 13, Sachs spoke at the US
    Consulate in Sao Paulo to an audience of approximately 100 CEOs,
    business leaders, academicis and NGO leaders.  Sachs spoke at the
    invitation of the Ambassador, who since his arrival in August 2006
    has been committed to the development of a public-private CSR
    partnership between the US Embassy and the US corporate sector in
    Brazil.

    ¶17.   Sachs discussed the various roles of corporate social
    responsibility programs in fighting extreme poverty, promoting
    regional economic development and growth, investing in the
    individual for societal good, and maintaining economic development
    aligned with environmental sustainability.  Emphasis was placed on
    the importance of investment in education and technology. Sachs also
    compared poverty and the economic situations of Africa, China, India
    and Brazil.  Sachs presentation generated much interest not only
    with the audience present, but received extensive press coverage as
    well.  Indeed, he granted exclusive interviews to two prominent
    print and television outlets.  Afterwards, he attended a dinner
    including former president Fernando Henrique Cardoso, leading
    bankers, businessmen, and academics and continued the discussion
    there, once again stressing the role of technology and education in
    reducing the extreme levels of poverty in developing countries.

    Sobel

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