SUSTAINABLE RURAL CREDIT: AN ANALYSIS OF THE CENTRAL BANK'S PROPOSAL FROM THE PERSPECTIVE OF THE ECONOMIC ANALYSIS OF LAW

Abstract

The present work aims to analyze, from the perspective of the Economic Analysis of Law (AED), the proposal presented by the Central Bank of Brazil in Public Consultation No. 82/2021, which aims to include sustainability criteria in the granting of rural credit. The central question is to assess the extent to which the proposed resolution can effectively promote sustainable agricultural production. The research uses the theoretical framework of the AED to examine the incentives generated by the normative proposal, considering the rationality of the economic agents involved. Based on documentary and bibliographic analysis, the study identifies five fundamental aspects for the improvement of the proposal: (1) clear definition of investments considered sustainable; (2) predictability of the benefits granted; (3) requirement of socio-environmental additionality; (4) efficient monitoring and inspection mechanisms; and (5) expansion of the integration of environmental monitoring systems with the Rural Credit and Proagro Operations System (Sicor). It is concluded that, despite representing an important advance, the proposal depends on significant adjustments to ensure its effectiveness.