O Ciclo Fraterno do Fundo Constitucional de Financiamento do Nordeste (FNE)

Abstract

This article analyzes the role of the Constitutional Fund for the Financing of the Northeast (FNE) as an instrument for the implementation of public policies guided by the principles of fraternity and the reduction of regional inequalities, especially in the semi-arid region of Northeastern Brazil. Adopting a critical approach to the region’s socioeconomic context characterized by structural poverty, informality, and underutilization of the labor force the article argues that the FNE, operated by Banco do Nordeste, plays a strategic role in promoting regional development by financing productive activities and fostering job and income generation. It is argued that poverty should be understood as the deprivation of basic capabilities, as proposed by Amartya Sen, and that public policies such as the FNE can help reverse this scenario by integrating historically marginalized populations into the development process. The article thus introduces the concept of the "fraternal cycle of the FNE," through which tax revenues return to society via inclusive policies that should be co-managed by the beneficiary population. This perspective highlights the centrality of reciprocity and shared responsibility in building a fraternal society, in which beneficiaries cease to be mere recipients and become active protagonists of development. Furthermore, the article emphasizes the multiplier effect of FNE’s actions beyond the directly supported areas, reinforcing its national relevance.