The study reviews the development strategy adopted by Rio de Janeiro in recent years, demonstrating the city’s failure to capitalize on the window of opportunity for sustainable development created by the major events hosted in the city.

FGV’s Department of Public Policy Analysis (DAPP) published the study entitled “Rio in perspective: a diagnosis of public choices” on April 7. The study reviews the development strategy adopted by Rio de Janeiro in recent years, demonstrating the city’s failure to capitalize on the window of opportunity for sustainable development created by the major events hosted in the city.

Coordinated by DAPP’s director, Marco Aurelio Ruediger, the previously unreleased study shares insights on income forecasts, annual expense contingencies, accounts payable, debts, and unemployment, among other data. Based on official and updated public data, the results were presented – at the request of Rio’s city hall – during the event celebrating 100 days of the current city administration, also held last Friday.

In addition to expenses inherited from previous years, the current fiscal scenario poses a broad range of additional challenges. The study shows a discrepancy between the estimated budget and the actual budget available for the city of Rio de Janeiro this year. According to 2016 estimates, the city hall would have a budget of BRL 29.5 billion in 2017. However, estimates from March this year show a much smaller figure (BRL 26.3 billion) – BRL 3.2 billion or 11% less than the original estimate.

In short, the survey shows that Rio de Janeiro has entered 2017 facing a myriad of fiscal challenges: outstanding payment accounts, less cash available, lower tax collection estimates, and greater expenses. By adopting non-sustainable urban policies, Rio de Janeiro failed to embrace a more modern and updated vision for the city, ultimately wasting the opportunities created by the major events hosted in the city. However, alternative models are also possible, provided that they adopt public policies that address its economic, social and environmental fronts in an integrated manner, leveraging growth opportunities for both the city and its citizens.

The complete study is available, in Portuguese, by clicking here.

FGV News migrated to FGV’s Portal, in May 2017.
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