AUDIT REPORT OF AREA AUDITOR GENERAL-LATIN AMERICA ON CENTRAL BANK TRAINING PROJECT IN BRAZIL

AUDIT WAS CARRIED OUT BY AREA AUDITOR GENERAL IN CONJUNCTION WITH USAID/B OFFICIALS. FROM 1966 TO 1971, USAID/B, IN COOPERATIONWITH NATIONAL BANK FOR ECONOMIC DEVELOPMENT (BNDE), FINANCEDCONTRACTS WITH NEW YORK UNIVERSITY (NYU) TO PROVIDE 9-MONTH NON-DEGREE ACADEMIC/PRACTICAL TRAINING COURSE IN PROCEDURES/TECHNIQUES OF CAPITAL MARKETING FOR BRAZILAIN FINANCIAL OFFICIALS. IN 1967 BNDE AND GETULIO VARGAS FOUNDATION (GVF) ARRANGED THAT FIRST HALF OF PROGRAM BE CONDUCTED AT GVF BY JOINTGVF-NYU TEAM. FROM 1969 TO 1971,USAID/B CONTRACTED WITH PRACTICING LAW INSTITUTE OF NEW YORK (PLI) FOR 2-PART (BRAZIL-US) TRAINING COURSE ON REGULATION/CONTROL OF CAPITAL MARKETS. OUTPUTS REVEAL PROGRAM"S SUCCESS. 300 STUDENTS HAVE BEEN TRAINED IN BRAZIL (TARGET:356), 110 IN US (TARGET:121), INCLUDING 6 GVF FACULTY MEMBERS RECIEVING GRAD TRAINING AT NYU. INALL CASES, PARTICIPANTS IN US PROGRAM HAVE BEEN SELECTED FROM THOSE COMPLETING TRAINING IN BRAZIL. 2 PROBLEM AREAS HAVE BEEN STUDENT ENGLISH LANGUAGE DIFFICULTIES AND POOR SCHEDULING/COORDINATING OF STUDENT ACTIVITIES IN US. TO INSTITUTIONALIZE SUCH TRAINING IN BRAZIL, GVF HAS DEVELOPED 9-MONTH COURSES IN RIO AND SAN PAOLO, EACH WITH ENROLLMENT OF 90 GRAD STUDENTS AND STAFFED BY GVF"S NYU GRADS. RIO COURSE MUST BE EXPANDED TO MEET LOCAL NEEDS. COURSES ARE ALSO BEING OFFERED BY SEVERAL OTHER ADADEMIC INSTITUTIONS AND BY NEWLY CREATED BRAZILIAN INSTITUTE OF CAPITAL MARKETS. REGARDING THE CB TRAINING PROGRAM: DUE TO PERSONNEL CHANGES, CONSERVATISM OF SENIOR STAFF, AND MANAGEMENT"S RELUCTANCE FOR OUTSIDE REVIEW, CB WAS UNABLE TO EMPLOY PROJECT FUNDS AS PROGRAMMED. AS A RESULT, PROJECT WAS CANCELLED 6/6/72 WITH DEOBLIGATION OF US $30,500. TO THIS POINT, AID HAS CONTRIBUTED US$666,000 AND GOB CR$191,475.66 TO TRUST FUND. PROGRAM TERMINATES 8/72 WITH RETURN OF LAST GRAD STUDENTS TO GVF.