O EXCEDENTE FINANCEIRO DO SETOR AGRÍCOLA NORDESTINO

Abstract

This paper studies the contribuition of agriculture to the transformation process experienced by Northeast Brazil in the last 28 years, focusing on the financial transfers and taking into account the different phases of the governmental intervention to overcome the regional disparities. The paper calculates the Agricultural Financial Surplus, which was found to be positive from 1965 to 1974 and from 1984 to 1993, and negative from 1975 to 1983. These results are consistent with the Northeastern economic overall performance and particularly with that of its agricultural sector, which is still extremely vulnerable to periodic droughts. In the same way, the existence of government programs aimed at the agricultural sector and the disbursement of public pensions are important factors to determine the resource flow outcome. The research concludes that, although the Brazilian northeastern agricultural sector faced many problems, it has been able to make a contribution to the regional development.