Lessons on demand

WHEN TASSO JEREISATI TOOK OFFICE AS THE NEW GOVERNOR OF THE BRAZILIAN STATE OF CEARA, THE DROUGHT-PRONE REGION WAS IN DIRE STRAITS. JEREISSATI, A MEMBER OF THE BRAZILIAN DEMOCRATIC MOVEMENT PARTY AND A FORMER BUSINESS MAGNATE, DECIDED TO MANAGE THE CRISIS AND THE GOVERNMENT AS HE WOULD AN AILING COMPANY--BY ENFORCING EFFICIENCY AND AUSTERITY. HE BEGAN BY SACKING 30,000 "PHANTOM CIVIL SERVANTS," EMPLOYEES WHO HAD NEVER APPEARED ON THE JOB. BUT IT WAS HIS PUBLIC PROCUREMENT PROGRAM (PPP), AN EFFORT TO REQUIRE THAT ALL GOVERNMENT-RUN DROUGHT RELIEF PROJECTS BUY SUPPLIES FROM LOCAL PRODUCERS, THAT WAS THE MOST INFLUENTIAL AND SUCCESSFUL. PEOPLE IN THE COUNTRYSIDE RESPONDED TO THE ASSURANCE OF A GUARANTEED BUYER BY OPENING UP HUNDREDS OF SMALL BUSINESSES; ALONG THE WAY, THEY LEARNED VITAL SKILLS WHICH ENABLED THEM TO ENTER THE PRIVATE MARKET FOLLOWING THE END OF THE DROUGHT.