ABSTRACT
The role of public expenditures in the development process remains an area that few economists and other social scientists have endeavord to explore. Especially lacking has been a systematic format for analyzing the effectiveness of public investment in human resources within developing countries of South America. Recommendations for increased expenditure in developing countries must face, in addition to political constraints, the tax level constraint which frequently inhibits the introduction of new programs since many traditional demands upon government already exist. During the 1960s, the only appreciable rise in the indexes for education occurred under Castello Branco. Under every other executive during the 1960s, Brazillian education expenditures stagnated. The growth of social welfare expenditure in developing countries will continue to put increased pressure on public sectors to devise means of evaluating public programs and of making traditional budgeting systems more effective.
