Inequality In Brazil Research Paper

University of Waterloo
Department of Economics
Econ 383: Economic Development for Fragile Countries
The inequality and poverty problem in Brazil
By
Zuoyu Zhao
20360565
Nafeez Fatima November 27, 2012

The inequality and poverty problem in Brazil
Abstract
Brazil is the largest economic entity in the Latin America with the fifth largest geographical area in the world and a population of 196.7 million (in 2011). Brazil has achieved a significant economy growth in recent years, but the wealth is unevenly distributed among the various regions and ranks of society, resulting in an inequality problem which is inconsistent with the country’s economy scale.
These problems have deep historical roots and had been ignored for a very long
The positive factors that improve the income redistribution, such as the good performance of economy, globalization and demographic bonus are discussed. The policy supports, including the improvement of education, minimum wage, social security and assistance, are specially addressed.
However, the wealth is still concentrated among a minority and serious social problems remain a trouble for the country. The economy growth is hindered and social problems of stability and justice still persist. To realize the radical change of the problem, essential reforms regarding to urban, land, tax and finance need to be implemented. And surely there are certain challenges ahead.
The inequality and poverty problem in Brazil has a fine representativeness for the economic growth of developing countries. It provides a good example to understand the complex problem of unbalanced and uneven development and has great social
So it is possible for different parties to take turns in exercising power and more people could participate in the founding and monitoring of government policies. The poverty-reducing effectiveness of different economy sectors is found to be various. It is found that in the respect of poverty reduction, growth in the services sector was substantially more effective than that of the agriculture and industry. The industry growth had different poverty-reducing in different Brazilian states (Ferreira, 2010).
4.2 The consequences of inequality and poverty
High income inequality and poverty harmful to society because it indicates that there are a number of poor people living below a normal condition and they benefit relatively less from economic growth than in a more equal society. The existence of the extreme poor is contradictory to the ultimate goal of development.
Also, the economy growth would be negatively affected by the abnormal form of society. And certain problems as to health, social cohesion, social stability and increases are