In less than fifty years, Brazil evolvedfrom a predominantly rural society and economy to a highlyurbanized country in which 85 percent of its people now livein urban areas and more than 90 percent of the country’s GDPis generated in the cities. This rapid urbanization processwas characterized by a lack of planning and an enduringframework of inequality, resulting in high degrees ofconcentrated poverty in the urban areas. Much of thisurbanization has taken place in metropolitan regions (MRs).MRs have grown more rapidly than the rest of the country,both in population and in GDP terms. In 2010, per capita GDPwas higher in MRs than in the rest of the country andmetropolitan economies accounted for 70 percent of GDP. Atthe same time, half of the Brazilian poor and 90 percent ofthe people living in subnormal conditions were found inmetropolitan regions. The recent approval of a new frameworkfor metropolitan governance inBrazil creates the opportunityfor debate and evolution regarding several key issues. Theseinclude: a) placing metropolitan matters at the forefront ofthe development arena in Brazil; b) reviewing what has beenlearned about inter-municipal governance and servicedelivery; c) estimating resource mobilization needs formetropolitan development; d) coordinating metropolitan landuse with transport and housing; e) including metropolitanconcerns in any revision of fiscal federalism; and f)promoting environmental sustainability, social inclusion andresilience to disasters and climate change plans at themetropolitan scale. The World Bank can be a partner inaddressing these issues. In responding to client demand, theBank has been providing a range of support to Brazilianstates and cities and especially their low- incomepopulations in the areas of infrastructure, social services,slum upgrading, institutional development, river basinmanagement, local economic development, environmentalprotection, water and sanitation, and transportation.
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