This report represents a snapshot of adialogue between the State of Piaui and the World Bank andfocuses on the strategies and actions the State Governmentmay wish to adopt.Piaui's challenge is to buildinstitutions that address its weaknesses and exploit itsstrengths. Addressing weaknesses implies continuing withefforts to improve education, raising productivity insmall-scale agriculture, increasing public participation ingovernment decisions, and enhancing the administration oftaxation and spending. Exploiting strengths impliesfortifying the management of land, water, and naturalresources, carefully selecting strategic infrastructureinvestments, and recognizing and taking strategic decisionsto "get ahead of the environmental frontier" inseveral parts of the state.Based on the relevantgeographical traits of Piaui, three chapters are devoted tothe geographical regions: the cerrados, the semi-aridsoutheastern region, and the north of the state.The reportrelates cross-cutting institutional themes (a) the revisedrole of the State in Piaui, (b) fiscal aspects includingtaxation and spending, (c) options in education, and (d) anoutline of action plan for building participatory mechanismsfor consultation between government and civil society. Theconclusion gives a general framework of strategic optionsfor poverty reduction in Piaui including the Bank'ssuggestions of priorities, timescales, and approximate costswhere possible.
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