The New Idea

Through the Eco-Engenho Institute, José Roberto questions the widespread assumptions about fighting drought, and bases his work on a new paradigm in which small rural communities can draw on the potential of semi-arid regions for their socioeconomic development. He has created a model for remote rural zones in the northeast of Brazil that uses renewable energies and technologies appropriate for cultivating products of high aggregate value in this climate. José Roberto is also developing mechanisms for access to a fair market in which there is solidarity, guaranteeing income for these communities.

With project H2Sol, José Roberto makes use of the abundant solar energy to improve access to water and develop irrigation micro-systems that permit agricultural production without wasting water. The technological process is customized to each producer. With the vision that it is necessary to generate income and not only subsistence, José Roberto stimulates production valued in the market and, through Articulation of Solidarity Trade (AmercSol), supports the entire productive process and commercialization.

To guarantee sustainability, José Roberto encourages community associative activities to share expenses and experience. He also supports the creation of social micro-companies that receive tax exemptions, thus increasing their competitiveness in the consumer market. The new system transforms the mentality of these communities, which are accustomed to assistance programs, and demonstrates that it is possible to have a dignified and productive life in rural semi-arid regions.

The Problem

Brazil has one of the most unequal distributions of wealth in the world. According to the Brazilian Institute of Geography and Statistics, the northeast region of Brazil, which encompasses one-fifth of the nation’s territory, has 47 million people (almost one-third of the population), and one of the highest concentrations of poverty in the Western hemisphere. Fifty percent of the population lives below the poverty line. The situation is especially critical in the semi-arid region where the majority of the population lives with drought and hunger and is precariously assisted by public policies related to education, health, basic sanitation, housing, employment, and income. The difficult conditions aggravate quality of life and human development indicators and encourage rural exodus.

Of the 1,000 cities with the lowest Human Development Index—Municipal (HDI-M), 715 are affected by desertification. Of the 1,482 municipalities in regions classified as semi-arid, 915 show life conditions worse than African countries such as Namibia (0.627). Only five countries have indicators the same or above Brazil’s index (0.766). The state of Alagoas, which includes 53 percent of the areas affected by desertification, has 77 cities with the lowest human development indexes (PNUD, April 2006).

The semi-arid region of Brazil has a dry climate with extensive periods of drought. Natural deposits of water in significant quantities are rare and the subterranean waters are lightly salted, allowing for animal consumption but seldom human consumption and rarely irrigation. The infrastructure for the accumulation, distribution, and management of water is deficient and the traditional cultivations are limited and only for subsistence (corn, beans, and manioc). Many programs to combat drought have come to the region; historically, the programs have used a top-down approach, which reinforces the accumulation of power and benefits only a few traditional farmers’ and politicians’ enterprises, but does not address those most in need.

The construction of water tanks, for example, is a line of action (by Febraban) to construct 10,000 tanks in 11 states of northeast Brazil (with the support of the program P1MC, 1 Million Tanks Program; 833 were installed in the State of Alagoas in 2005). The government is also planning the transposition of the São Francisco River, the major river in this area, which will benefit agribusiness (promoting the growth of sugar cane culture) instead of small producers. However, little has been done to help people “live with the drought,” using work and production models that manage the lack of water on a small scale focusing on the poorest of the poor. A further problem is that government programs, once implemented, are not monitored, which results in an inefficient use of resources and a lack of belief in the program’s credibility.

Additionally, much of the population waits for federal government social programs (e.g. family, education, and food grants) and other isolated and unsustainable actions from social organizations. In the state of Alagoas, 105,322 people receive benefits from the Food Grant (Bolsa Alimentacao) program for better nutrition; the municipality of São João da Tapera was the pilot city. In spite of the program, the situation of families has become more precarious. Such benefits are inefficient for structurally changing social and economic conditions.

In this context, local development, as well as empowering the population, cannot depend on the government and farmers. Improvement is directly linked to growth in income, which remains low due to the predominance of the subsistence economy and a lack of tailored government programs for remote and poor communities. All small farmers cultivate the same basic products (manioc, beans) and sell the excess at a low price because of the large amounts on offer and the lack of access to formal markets.

The market does not function in a fair and efficient manner and there are few government incentives to change this situation, including the lack of infrastructure. Competition is great and there are no tax incentive laws that could help small rural producers and stimulate potential buyers. Today, there are more than 900,000 producers in the northeast.

The Strategy

José Roberto begins by identifying the remote semi-arid communities with low HDI. Initially, he tries to create a new way of thinking about living with aridity and seeks opportunities that work with the local climate and soil conditions on a small scale for the most poor. José Roberto believes an efficient technological process is appropriate for its purposes, so he created H2Sol, a micro-productive and commercialization system based on renewable energy, solidarity exchanges, and little water. The system aims to cultivate products of a high aggregate value and rapidly promotes significant changes.

Initially, community members are brought together to discuss what they intend to produce without government contribution. (The government plays an important role later when the program is established, successful, and ready to gain scale.) Subsistence products are usually considered first, but it is important to introduce other possibilities for micro-irrigation systems that can significantly increase families’ incomes. Since many families do not have land, the program helps them use a small space (2.5 acres) to collectively cultivate products of a high aggregate value for the market, such as chili peppers, medicinal plants, and endives.

In the community of Baixas, the pilot project was designed to cultivate a variety of chili peppers by using a hybrid hydroponics system and a sprinkler micro-irrigation system; solar energy was the driving force. This solution promotes better management of water and reduces environmental impact. The community has gradually assimilated these new irrigation models and combined permaculture techniques to develop organic agriculture with the use of energy generated by bio-digestors, improving the production environmental sustainability.

After developing the model of production, the Eco-Engenho Institute stimulates the creation of a local association with its administration manager—the link between production and commercialization. The associative model is appropriate because individual producers retain their own production. Moreover, the producers together have more force in the market, sharing technical assistance, freight, production costs, and distribution channels. The association is also the point of convergence to seek public policies that serve the small producer. Since most associates are illiterate, the administration manager is essential. Generally, this is someone who knows the community well, but does not necessarily live in it. This person is eager to learn about the solar technology used, communicates well with local public authorities, and is responsible for external relations.

Along with the association, the Eco-Engenho Institute stimulates the creation of other programs—the Seed Bank and the Mutual Help Group (Grupo de Ajuda Mutua-GAM)—to promote community empowerment and sustainability. The former stimulates the production and stocking of seeds so that planting and harvest can be done throughout the year. Currently, planting occurs only during the rainy period, making producers dependent on government assistance. The Mutual Help Group-GAM is a microcredit model that consists of women helping each other with common necessities. Each woman contributes R$5 (US$2.30) per month and one is trained as the “banker” to open a savings account and manage resources. This represents a significant and historical shift in women’s role in rural communities. In Alagoas state, the institute has helped to create GAMs in five different communities.

Because lack of knowledge about the market is one of the biggest obstacles to small producers, the Eco-Engenho Institute plays a significant role in creating a model of product commercialization. It created AmercSol to build the market so that a product’s differential could be valued. AmercSol distributes and sells products primarily to restaurants and small supermarkets in Maceio under its own label. To guarantee efficiency, a fund was established, initially with resources from the LaGuardia Foundation, but now self-sustaining. Each association of producers pays a tax of 15 percent of its gross income; AmercSol commits to the commercialization of the products, while offering resources for maintenance and technical production assistance. In this way, everyone wins: The producers are able to concentrate on production with the guarantee of a final sale and functioning equipment, and AmercSol gains economies of scale and resources that can be used to increase the number of associations in the network.

To encourage the purchase and sale of products, José Roberto is breaking the enormous tax barriers that are detrimental to small producers. Taking advantage of a state law that had not been used, the Eco-Engenho Institute works through a differentiated tax system that has been simplified for and favors small-scale production. The law guarantees that gross revenues of R$48,000 (US$22,000) and profit of R$8,000 (US$3,650) per year are exempted from paying ICMS (a state product tax), since the goods circulate only within the state of Alagoas. So, for each jar of chili peppers sold at R$4 (US$1.80), the producer receives R$2.35 (US$1) or a margin of 59 percent. José Roberto is able to secure an increase in income and ensure the punctual repayment of the investment in micro-irrigation and other technologies by obtaining a net margin of R$1.21 (US.55¢) per unit.

This law benefits the producer, and also offers incentives to the buyer as the government gives a credit of 17 percent (above the total value) to large companies that buy products from small-scale farmers. This encourages larger companies to buy from socially oriented micro-companies and, in the case of small-scale agricultural producers, the sale can be done simply by registering as an individual taxpayer—averting the necessity for an open company[meaning of previous sentence unclear]. José Roberto believes the law is a great incentive to promote the commercialization of products in Alagoas state and has already entered into a dialogue with the government of Paraiba to implement the same model. The new system completely changes the form of commercialization for these products in the Brazilian market. When the whole micro-system of production and commercialization has been implemented, the government is invited to contribute through the application of new laws that benefit small-scale producers, infrastructure, and replication of the program.

The Eco-Engenho Institute is active in 16 communities in 10 cities in Alagoas state and in one city of Paraíba state, and this methodology can be adapted to any region, not only semi-arid zones. In the north of the state, the institute has begun to work with settlers producing passion fruit (maracuja). Instead of focusing only on its pulp (used to make juice), José Roberto uses technologies to dry the skin of the fruit and extract its flour; this product has high aggregate value and commercialization in the pharmaceutical market. In conjunction with these activities, the institute is disseminating its model through the Social Technology Network and Renove, and has initiated a discussion with the Portuguese government about taking this methodology to Cabo Verde. José Roberto had been working intensely to consolidate his model in the poorest and most remote community of Alagoas. In 2008, he sees H2Sol in 100 family micro-companies in twenty communities with a 100 percent increase every year.

The Person

The grandson of one of the first doctors in Brazil, José Roberto was always interested in the biological sciences. However, it was his adventurous spirit, passion for nature, and curiosity that led him to enter the first class in fishing engineering offered in the country, at the Federal University of Pernambuco. The courses covered diverse subjects such as the environment, engineering, navigation, and oceanography. When he graduated in 1975, he took an exam in marine biology at the Federal University of Alagoas, with the intention of developing a project on cultivating oysters. Oysters were predatory at that time, and caused problems for the region’s mangroves.

During this time José Roberto took specialized courses in different areas and came across another problem related to sugar cane, one of the most important resources in the state of Alagoas. Ethanol production was a high priority in the 1980s, but the cane production plants were not prepared to work in this area. Legislation to protect the environment did not exist and there were no instructions on how to produce ethanol without causing pollution. In 1978 José Roberto went to work coordinating environmental protection for Alagoas in the office of the State Secretary of Planning. He formulated the state environmental policy and established the first legal milestones in environmental protection. In addition, he created a system of state licensing for polluting activities (which set fines for companies’ offenses); the State Council of Environmental Protection and the Environment Institute of Alagoas became responsible for enforcing the environmental policy. José Roberto built relationships with social movements and the news media to create a support network for the activities he developed within the government.

In recognition of the work he developed in Alagoas, José Roberto was elected president of the Brazilian Association of Environmental Non-Governmental Organizations. With the founding of the New Republic, President Tancredo Neves invited all states in Brazil to present environmental models of work to be adopted by the new government. He also proposed the creation of a Special Secretariat for the Environment that could intervene in other ministries. Before Neves’s death, his idea was widely accepted and was later implemented during the following administration. José Roberto was also nominated as a member of the National Environment Council.

José Roberto spent 10 years working for the government and believes it was an important phase in the development and implementation of his ideas. For him, it was impossible to create concrete conservation and development projects without the existence of the basic required conditions. At the same time, he felt it necessary to see many things, barred or postponed by the government, become concrete. In 1990 José Roberto set up a consulting company, MAPPA, to work on studies and reports about environmental impact in the northeast region. The consultancy was sought out by diverse companies that required help in implementing environmental preservation projects. He did two important projects for the Inter-American Development Bank—one concerning the revitalization of local fishing and the other on photovoltaic solar energy. The latter, developed with the Teotônio Vilela Foundation, was largely responsible for the change in José Roberto’s life.

Project Sunlight’s objective was to take photovoltaic solar energy to the rural zone of northeast Brazil. The project was supported by a North American company that supplied the photovoltaic modules and by the Northeast Bank (Banco Nordeste), which financed the project’s implementation. Ninety micro-companies were created that rented photovoltaic systems and administrated condominiums, with up to 30 users. In all, 2,700 families benefited, not only from having electricity, but also from having access to finance and learning to work with the banking system. José Roberto realized that a development model in rural areas of extreme poverty must involve different actors, and for this reason, with two colleagues from MAPPA, he created the Eco-Engenho Institute.