Dragan,
The main incidence of AIDS in Brazil comes from IV drug abuse and unprotected male-male sex.
I therefore see plenty of opportunity for $40m worth of campaign that need not involve prostitution.
The main objection seems to be that self-described "AIDS activists" want prostitution normalized and see the US moralizing as contrary to that goal. I have no comment about their goal (after all prostitution has been normalized in New Zealand) but would be interested to see why these activists feel that normalizing prostitution will be more effective than $40m worth of other campaigning.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1
