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Privatization and Electrical Energy Crises – a Brazilian Perspective

by Mary Tiernan, CSC (Sisters of the Holy Cross)

Both the USA and Brazil are presently experiencing energy crises and both are looking for new sources of production because current supplies are supposedly depleted or will not meet future demands. The insecurity and vulnerability caused by the blackouts and rationing are predisposing people to accept alternatives that have highly negative effects on the environment.

In both California and Sno Paulo, neighborhood blackouts are being promoted as the solution to the shortages. In Brazil, mandatory 20% usage reductions have been imposed on the general population and industries throughout most of the country. Those who do not comply are fined and have their power cut off.

  • Little is said about alternatives to the energy blackouts – options like educating for energy conservation and searching for environmentally sustainable energy sources;
  • updating equipment to produce energy more efficiently
  • reducing energy loss in transmission systems and
  • controlling thieves who pirate electricity.

Nor is there much attention given to industries (like aluminum, iron, paper and cellulose) that are actually benefiting from the energy crises by selling their excess energy to industries that can’t reduce consumption – at up to 5 times the distributors’ costs. Moreover, there is little consciousness that mandatory across-the-board reductions are unfair to persons and institutions that have always economized and used only what they needed. And finally, the consequences of reducing/eliminating street lighting in already violent areas are being completely ignored.

For years, the national movement of environmentalists and those who have lost their history, culture and roots beneath the waters of hydroelectric dams has worked to awaken public consciousness about the social and environmental impacts of present energy production systems. But now, the sense of vulnerability, impotence and fear induced by energy restriction, together with the growing desire to return to accustomed comforts at almost any price, is leading the public to accept alternatives that they had begun to discard.

In the USA, where Californians are experiencing blackouts and President Bush is promoting economic growth over environmental safeguards (like controlling polluting gases or labeling genetically manipulated foods) a climate is being fostered that supports less government control and more free market negotiation. In Brazil and other countries, there is increased pressure for privatization of our national and international patrimony, which again places future decisions about the world’s goods in the hands of an economic elite. Though official programs for energy conservation exist, the calls for privatization and the cry for immediate crisis relief are louder.

Here in Brazil, unemployment has exploded in the months of imposed energy rationing. Factories have been forced to lower production to meet their rationing quota. In a recent survey, 63% of the industrial managers questioned said layoffs were unavoidable because of the energy crisis. Citizens, fearful of losing energy all together, have reduced buying of new electrical appliances. Refrigerator and electrical appliance sales are down 33% this week. Even sales of electric door bells, a small industry, are down 31%. And if you walk around poorer neighborhoods, where the shops sell 2nd or 3rd hand appliances without energy-saver controls, you will see that several used appliance stores have closed and the others are selling used furniture or other substitutes to try to hang in.

In the panic and discomfort, it is hard to be rational and discerning. This works well for those who want to benefit from the situation, but it is bad for the earth, for humanity and the rest of the earth community. We need to be agents who seek, verbalize and support calm, studied, balanced, non-violent short and long term solutions that will guarantee life for all, not just for those who can pay any price and don’t look to the future.

Now, more than ever it is important to take time to look at what is behind the crisis.

Previously, Brazil had the best energy supply in the world in addition to having 10% of the world’s fresh water. It had the capacity to confront a 5 year drought without energy crises.

What happened to create the current energy situation? A number of factors can be identified.

  • Over the years, successive governments have allowed electrical firms to go into debt in order to pay the external debts in dollars.
  • In order to prevent inflation, the "charge for service" scale has not been sufficiently adjusted.
  • Mechanical components in the generating and delivery systems have become outdated or been allowed to deteriorate.
  • New sustainable sources of energy have not been explored and cultivated.

Instead of taking steps to modernize equipment and develop sustainable means of providing adequate affordable energy, Brazil promoted privatization of energy services as the solution to company debts and inefficiencies. As is usually the case, the new non-governmental system attracted national and foreign investors whose primary concern was financial gain, not quality of service. Brazil, with its eyes directed toward capitalist financing, failed to perceive that its real economy is energy, and sold its distribution rights to EDF in France, AES in the USA, then more recently, to Belgian, Chilean and Spanish companies.

Roberto Malvezzi, of the National Coordination of the Pastoral Land Commission, suggests an even more troublesome interpretation of the current energy crisis. Brazilians, he says, have been told that the crisis is due to inadequate rain. While rainfall has been less than normal, Malvezzi believes this is nonsense and distracts from what is really behind the alleged shortages. He suggests that the electrical crises are being manufacturedcreated with the objective of privatizing control over Brazilian waters. Whoever controls hydroelectricity, controls the water reserves (and indirectly agricultural production and other water-dependent industries). He notes that multinational water firms have already begun installing themselves in strategic points of the country, like Manaus. When water inevitably becomes an export product, they will be perfectly positioned to capture the profits.

Unlike Brazil, there are countries whose populations have always had severe limits on energy usage. Ask the people in Uganda! Malvezzi says we are all asleep. We need to wake up and realize

  • that the earth’s resources are limited and
  • that those resources belong to all living beings, now and in the future, not to the corporate elites of the present.

All of us need to be serious about preventing environmental crises by engaging in critical thinking and working toward sustainable living.

Resources used:

Magazine: CAROS AMIGOS, year 5, # 51, June,2001. Article "Why the Blackout", Cesar Benjamim. Portuguese

Newspapers: Folha de Sno Paulo, Sunday July 29, 2001 p.B-1 Sale of Energy Comprimises Exports

Estadno de Sno Paulo. WEB Energy Crises Reduces Environmental Consciousness, article by Liana John, May 10, 2001. http://www.estadao.com.br/ciencia/colunas/ecos/2001/maio/89.htm

TV Nightly news JOURNAL NATIONAL- GLOBAL energy crises, Bush pronouncement

Notes: World Social Forum, January, 2001, Panel: How to Translate Scientific Development into Human Development, Speaker Jose Lutzemberger, ecologist and president of the GAIA Foundation

WEB SITES:

VOZ DA TERRA-daily virtual paper, Environment March 10-July 4

http://www.ajorb.com.br/vt-meio-ambiente.htm

Characteristics of the Brazilian Energy Development Period 1970-1999- in English from Brazilian Federal Governments’ Ministry of Mines and Energy www.mme.gov.br/sen/dadhist/CARAC_i.HTM

Energy Crises and Water Rationing (in Portuguese) Roberto Malvezzi/National Coordination of CPT on occasion of world environment day. www.projetoadia.com.br/not/energ.htm

List of Attributes of fiscalization officer for environmental control and constitutional, federal and Santa Catarina State laws on environmental control (in Portuguese) http://lagoadaconceicao.com.br/ecologia/legislacao

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