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The Brazilian Amazon is marked by attempts at infrastructure-driven development. The construction of the Belo Monte dam, the third-largest in the world, brought chaotical and rapid urbanization to surrounding cities. This paper answered whether the Belo Monte dam impacted the level of violent crime in the region after Altamira was ranked as the most violent city in Brazil in 2015. Following a difference-in-difference approach, I explore the timing of the Belo Monte dam construction and the distance from the construction site to identify the causal effect of unplanned urbanization on homicide rate. In two exogenous shocks, the beginning (2011) and the end of the construction (2015), I estimated a significant rise in the homicide rate in closer cities. The results are driven by criminal activity, with drug trafficking being one of the channels behind the rising homicide rate during construction. The homicide victims are mainly the young male population causing a significant loss of human capital. The increasing homicide rate after the end of the construction indicates that the Belo Monte dam may have a long-term effect on the violence level in the region. Violence imposes high social costs and may jeopardize future growth in the Amazon. [ABSTRACT FROM AUTHOR]

In 2003, the Workers’ Party took federaloffice in Brazil on an agenda of social inclusion and popular participation. This paper explores attempts to implement that agenda in big infrastructure projects in the Amazon: the BR-163 road and the Belo Monte dam. We argue that overlapping inequalities (between social groups, within the bureaucracy and between territorial centre and periphery) result in uneven state capacities for implementing projects in the Amazon. This framework helps explain why the government has moved much faster in building infrastructure than in implementing participatory social and environmental programmes that would benefit affected local communities. [ABSTRACT FROM PUBLISHER]