178
T. L. Cruz
On the other hand, the local government apparently do not value important sectors
such as Social Assistance and Culture, Communications, Transportation, Civil Rights
and Industry, which have been invested the small share of 3% of the total CFEM.
Likewise, Agriculture had a share of 5%. Investing in those areas would increase
economic diversification in Canaã dos Carajás in the long-term.
Once mining exploration is over and the CFEM is no longer collected, other
industries and agriculture shall need to generate profits and increase revenues in the
municipality, and provide income to its inhabitants. Such small shares of investments in key-sectors do not follow the guideline from the legislation, which recommends investments of at least 20% of the CFEM the municipality collects in sustainability of mining activities, scientific and technological development and economic
diversification.
Education is another critical sector, receiving the smallest share of total investments from mining taxation in 2018, merely 2%. Fortunately, in 2019 such a share
increased to 13.11%. Barro and Lee (2010), WEF (2016) and Grant (2017) emphasize
the crucial role of education to promote economic growth and increase countries’
and municipalities’ capacities to create and transfer knowledge, technology and new
products. Good quality education is also a precondition for long-term economic
growth, besides leading to higher individual incomes (IIASA 2008). In fact, Unesco
(2012) noted that the investment of just US$1.00 in education generates around
US$10.00 to $15.00 in economic growth. But Grant (2017) highlights that investing
in education is not enough per se, it is crucial to create job opportunities in public and
private sectors and diversify the local economy. Then, a better qualified workforce
shall indeed have brighter prospects.
Investing in education also contributes to people’s empowerment, improvements
in governance and corruption reduction (IIASA 2008; Grant 2017). Studies from
Unesco (2010) associate further benefits from investments in education, improving
health conditions such as reduction on child mortality, higher birth control and better
parenting and self-care. Therefore, it would increase benefits from the investments
in Health in 2019 (15.29% of the CFEM), which were higher than in Education.
Nevertheless, more people were pleased with the improvements in education
than with improvements in health. 37.5% of the respondents agreed that Health
had improved in town, while 32.5% of them disagreed. Despite the lower share of
CFEM investments in Education, most people agreed (49.5%) that access to quality
education had improved in Canaã dos Carajás, while just 21.5% disagreed. It might
have reflected the increase on investment in this area in 2019. Additionally, the
respondents resided in different neighborhoods in the municipality, therefore their
responses reflected different social perspectives.
However, most respondents related such improvements in education and health
to direct investments in schools and hospitals made by mining companies, not by
local government. In fact, Cruz et al. (2020) demonstrated that mining companies
improved social sustainability indicators in Canaã dos Carajás between 2008 and
2017, including education.
Thomson and Boutilier (2011) have already noticed that in underdeveloped countries and regions there are poorer social and urban infrastructures, and the local
T. L. Cruz
On the other hand, the local government apparently do not value important sectors
such as Social Assistance and Culture, Communications, Transportation, Civil Rights
and Industry, which have been invested the small share of 3% of the total CFEM.
Likewise, Agriculture had a share of 5%. Investing in those areas would increase
economic diversification in Canaã dos Carajás in the long-term.
Once mining exploration is over and the CFEM is no longer collected, other
industries and agriculture shall need to generate profits and increase revenues in the
municipality, and provide income to its inhabitants. Such small shares of investments in key-sectors do not follow the guideline from the legislation, which recommends investments of at least 20% of the CFEM the municipality collects in sustainability of mining activities, scientific and technological development and economic
diversification.
Education is another critical sector, receiving the smallest share of total investments from mining taxation in 2018, merely 2%. Fortunately, in 2019 such a share
increased to 13.11%. Barro and Lee (2010), WEF (2016) and Grant (2017) emphasize
the crucial role of education to promote economic growth and increase countries’
and municipalities’ capacities to create and transfer knowledge, technology and new
products. Good quality education is also a precondition for long-term economic
growth, besides leading to higher individual incomes (IIASA 2008). In fact, Unesco
(2012) noted that the investment of just US$1.00 in education generates around
US$10.00 to $15.00 in economic growth. But Grant (2017) highlights that investing
in education is not enough per se, it is crucial to create job opportunities in public and
private sectors and diversify the local economy. Then, a better qualified workforce
shall indeed have brighter prospects.
Investing in education also contributes to people’s empowerment, improvements
in governance and corruption reduction (IIASA 2008; Grant 2017). Studies from
Unesco (2010) associate further benefits from investments in education, improving
health conditions such as reduction on child mortality, higher birth control and better
parenting and self-care. Therefore, it would increase benefits from the investments
in Health in 2019 (15.29% of the CFEM), which were higher than in Education.
Nevertheless, more people were pleased with the improvements in education
than with improvements in health. 37.5% of the respondents agreed that Health
had improved in town, while 32.5% of them disagreed. Despite the lower share of
CFEM investments in Education, most people agreed (49.5%) that access to quality
education had improved in Canaã dos Carajás, while just 21.5% disagreed. It might
have reflected the increase on investment in this area in 2019. Additionally, the
respondents resided in different neighborhoods in the municipality, therefore their
responses reflected different social perspectives.
However, most respondents related such improvements in education and health
to direct investments in schools and hospitals made by mining companies, not by
local government. In fact, Cruz et al. (2020) demonstrated that mining companies
improved social sustainability indicators in Canaã dos Carajás between 2008 and
2017, including education.
Thomson and Boutilier (2011) have already noticed that in underdeveloped countries and regions there are poorer social and urban infrastructures, and the local