Measurement of Social Efficiency in a Mining Territory in the Brazilian Amazon: A Methodological Proposal With Factor Analysis

Abstract

Objective: This study aimed to analyze contextual factors and aspects that impact the social environment and that, in turn, change the level of people's satisfaction, being this a measure of quality of life. Theoretical framework: In Brazil, the financial compensation for the exploration of mineral resources (CFEM) has provided a considerable increase in the collection of ore producing municipalities. Therefore, understanding the relationship between social efficiency and quality of life, combined with the legal duties of the Brazilian State, is essential to propose mechanisms capable of evaluating the conversion of this economic wealth into public services that promote the population's quality of life, which is a measure of social efficiency. Method: A confirmatory factor analysis was applied in a dataset with 1024 responses from residents of the municipality of Parauapebas in the state of Pará. Results and conclusion: The results present sufficient evidence to accept that the measurement instrument well shaped by a bifactorial structure, given the set of responses and items evaluated, and demonstrate good evidence of internal consistency and reliability and, consequently, can be used to assess the measure of social efficiency and quality of life in terms of population satisfaction. In conclusion, the model indicates an inability of the public power to convert the high revenue into services that generate quality of life, showing that the municipality presents characteristics of the phenomenon called the curse of natural resources. Research implications: This study contributes to evaluating the scale of social efficiency of the population in relation to the quality of public services provided by municipalities, and can be used as a reference for adjustments and improvements in public services. Originality/value: This study presents results of great social relevance, in addition to helping to understand some aspects that involve the concepts of social efficiency and people's quality of life.