President Lula surprised many people by adopting a zero tariff agenda. But only the unwary was surprised: this trend is growing among Brazilian cities, and the Ministry of Cities has been working for years on innovative financing and management proposals to overcome the country’s historic public transportation crisis.
It is necessary for the Ministry of Finance to intervene in this issue, but Esplanada’s neighbor is already immersed in this debate since the pandemic has “nationalized” the discussion, exacerbated the transportation crisis and mobilized mayors, technicians and activists to discuss the issue with the National Secretariat for Urban Mobility. Result: Although the sector does not yet have a federal organization like health and education, there are already programs ready for the government to adopt zero tariffs with precision and quality, changing the reality of our poor transportation services.
Since the Union does not provide transportation services in cities, the Ministry has worked on mechanisms to support municipalities. The most recent example is the new Refrota project, and other possibilities should be created by the draft Public Transport Legal Framework Bill, which was sent two years ago to the National Congress. There is also a General Election Commission in the legislature that goes further and creates a Single Mobility System (SUM), similar to the SUS.
Thanks to Riverota and the legal framework instruments, the Lula government will be able to launch a very powerful global free program, changing the way public transportation is provided and viewed in Brazil. The programs include changes to fare and contract forms with bus companies – whose contracts face recurring problems, such as so-called transport “black boxes” – and the combination of free services and improved service quality.
The pilot project to quickly begin adoption of the program is important not because zero tariffs need to be “tested,” but because it is urgent to reshape the country’s transportation sector. Federal government involvement is new, and many cities still lack the technical capacity and political will to change. Therefore, the process must be gradual and closely monitored. The biggest challenges are administrative. They are in administration – not in financing or providing free services.
Cities that adopt zero tariffs show impressive results: increased use of city transportation, increased movement of people, enhanced trade, benefits to public health and even to the quality and management of service. In many cases, with practices more modern than those followed by large capitals.
Finance Minister Fernando Haddad’s support for the project shook the financial market, which fears deflation in the short term, but it is not possible for the program to cause prices to fall so quickly. However, there is no need to wait for the project to be completed, with the implementation of SUM, to begin transforming urban transportation, which today threatens the quality of life and burdens millions of Brazilians.
Trends/Discussions
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