inequality in Brazil
Introduction
Brazil has been successful both politically and economically in the past two decades. The GDP of a country has increased at an average of 3.2%, and this attracted investors to the country (Arrais, 2019). Globally, Brazil is the eighth largest economy with a GDP per capita of $11, 600 (Goes & Karpowics, 2017). If this continues, Brazil is likely to surpass many countries in terms of economic growth and power. Besides, Brazil has achieved a higher level of political success, which has given it the privilege to host major events such as the 2016 summer Olympic Games and the 2014 FIFA World Cup (Goes & Karpowics, 2017). However, regardless of the current economic and political success, Brazil is among the top countries that are facing inequality in the world (Arrais, 2019). Based on the Gini Index, it is the 19th in the world and 20th among countries that have the highest GDP (Arrais, 2019). Inequality in Brazil has been stable for a long time, and it began to reduce in the last decade. The difference could result from several political and corruption scandals that are happening in Brazil (Costa, 2018). It is relevant due to its social, political, and economic impacts. The high levels of inequality in Brazil have been contributed by particular uncertainties that affect the economic growth and performance of the country.
Discussion
Why Brazil is Unequal
The high rate of unemployment in Brazil is one uncertainty that contributes to inequality. The devastating recession of Brazil between 2014 and 2016 led to the highest levels of unemployment. Approximately 14 million people are unemployed in Brazil, and the rate of unemployment is at 11.8% (Arrais, 2019). Unemployment is high among people who have only attained primary school education. The female gender also suffers from higher rates of unemployment compared to the male gender (Azevedo, David, Bastos & Pineda, 2014). Thus, in Brazil, there is inequality in the provision of employment that is based on gender and level of education. The decline in the creation of formal jobs led to increased rates of unemployment. The highest levels of unemployment were observed in the North East and southeast regions of Brazil (Goes & Karpowics, 2017). Primarily, unemployment is a national issue in Brazil, and it affects most of its metropolitan areas. Unemployment contributes to inequality as it results in differences in the standards of living. The unemployed cannot access most basic services such as quality health and education. The concerned leaders are solving the problem of unemployment by reducing the federal government and signing trade agreements with other countries. They are also decreasing trade restrictions that prevent foreigners from investing in their country. Don't use plagiarised sources.Get your custom essay just from $11/page
Economic growth is always coupled with an increase in inequality. For instance, the introduction of new technology may not benefit all people at the beginning; hence, it would lead to inequality. However, Brazil’s economic growth was undermined by high levels of poverty and inequality. They hinder growth through several channels such as fiscal instability, weak social cohesion, unreliable social and legal rights, and economic domination by the elite (Costa, 2018). Inequality hinders economic growth and reduction of poverty. Therefore, with the higher rates of inequality, Brazil will experience lower rates of economic growth, which have no significant impacts on poverty. The unequal distribution of assets in Brazil has led to higher levels of poverty, which have increased crime rates in the country. However, poverty is spatially concentrated in the country with the highest levels in the North East and North regions (Goes & Karpowicz, 2017). In the North East, both poverty and inequality are at their peak while in the North, inequality is relatively low (Goes & Karpowicz, 2017). The low inequality results from the presence of smallholders in the country.
Differences in education and health factors or human capital also contribute to income inequality (Azevedo, David, Bastos & Pineda, 2014). Higher unequal distribution of human capital increases the returns in education, which subsequently increases the unequal distribution of income. These skill premiums are influenced by demand and supply in labor markets as well as the productivity of workers. Primarily, there is an unbalanced distribution of human capital in Brazil (Lustig, Pessino & Scott, 2014). Compared to other countries such as the United States and Colombia, the country is profoundly affected by inequality in accessing education and health services (Lustig, Pessino & Scott, 2014). Education is expensive in Brazil, and this makes it hard for people who are unemployed to access it. Differences in school returns and work experience are responsible for the inequality between Brazil and the United States (Arrais, 2019). Brazil has a skewed way of allocating its human capital, with most of it being consumed by the elite. The elite access the best services while the deprived groups in the country cannot even access basic needs. The sparse distribution and allocation of human resources is a significant cause of inequality in Brazil.
Geographical differences between the urban and rural areas are a significant cause of inequality in Brazil. Some regions are endorsed with more natural resources than others, and it contributes to socio-economic disparities. The rural areas are more reliable for agricultural production than the urban areas (Goes & Karpowicz, 2017). However, the urban environment is more suitable for several business activities. These differences help the regions to have more advantages over the others. The advantages can either be beneficial or detrimental to a particular area, depending on how they are exploited. Inequality due to differences in geographical or natural resources also results from some parts of Brazil have more minerals than others (Albertus, Brambor & Ceneviva, 2018). Places that have a lot of natural resources experience more developments in terms of infrastructure compared to others.
Unintended or intended discrimination also causes inequality in Brazil. Discrimination could occur through the government or labor markets where a particular population is more favored compared to others. Racial discrimination and gender discrimination have been prevalent in Brazil (Costa, 2018). There have been cases of discrimination against the Africans, which have exposed them to unequal economic opportunities (Goes & Karpowicz, 2017). Racial discrimination contributes to poor quality of life for the affected people. Racial inequality is observed by the unequal distribution of wealth between the Whites and the Africans (Goes &Karpowicz, 2017). Primarily, racial inequality is also seen through the lower levels of income and education for the non-Whites (Costa, 2018). Notably, the professors at higher institutions of learning awarded better marks to the White students compared to the non-Whites. Besides, the number of Africans in the highest income brackets is limited. Furthermore, gender inequality is seen in how more women are suffering from unemployment compared to men.
The unequal distribution of assets also contributes to economic inequality in Brazil, which has significant impacts on its growth. The ownership of assets, especially land, give the owner a chance to enjoy returns from the asset (Albertus, Brambor & Ceneviva, 2018). The returns are useful in helping the individual to grow financially and economically. Financial institutions also favor the owners of such properties, and they have easier access to loans. Therefore, unequal distribution of assets can translate to income inequality. The exposure to unequal opportunities based on asset possession results in unequal earnings (Egbon & Moser, 2018).
Unfavorable government policies are a significant cause of inequality in Brazil. Equality is promoted in democratic governments where people are treated with fairness and justice. High levels of inequality are seen in countries that practice dictatorship because citizens have limited political power. Therefore, the Brazilians were under a military dictatorship until 1985, and this may have contributed to high levels of inequality being experienced (Arrais, 2019). Although Brazil is using democratic leadership, it takes time for a country to recover from the impacts of dictatorship. It will require a lot of cooperation from the leaders to change some of the policies that promote inequality.
Reduction of Inequality in Brazil
Reducing the levels of inequality requires addressing structural underpinnings such as tax policies, education programs, and health. Addressing these issues helps the leaders to ensure that people can equally access public services. It also limits the benefits that are enjoyed by special groups or the elite. However, it takes time for a country to reduce inequality significantly.
The first milestone taken is ensuring the social protection of every citizen in Brazil despite their race or gender (Costa, 2018). They implemented a provision in the constitution that stated social security is a state duty and a right for every Brazilian (Costa, 2017). They have created the ministry for Social Development, which initiated a strategy to help them fight hunger (Lustig, Pessino & Scott, 2014). The plan would be useful in reducing food insecurity and extreme poverty. The ministry will ensure that everyone has equal chances of employment, education, and health. They also implemented the Basic Income Law that stated every person who had lived in Brazil for five years or more was entitled to a basic salary (Egbon & Moser, 2018). The salary should meet the necessary expenses of an individual. The expenses include housing, health, food, and education. The ministry has implemented several programs such as social services and social security that are meant to achieve equality.
The leaders have also implemented the Conditional Cash Transfer. The CCT aims at ensuring that everyone has equal access to health and education services (Arrais, 2019). The transfer increases the level of income for every household; thus, they can afford to send their children to school and still have money for food and clothing. The cash transfers also help the beneficiaries to access more information about health and education services (Arrais, 2019). The information will help parents to select education and health plans that are affordable to them. Increased access to pensions also improves the ability to access better services. The government has implemented a family distribution program that is meant to decrease poverty and inequality. The program is known as the Bolsa Familia, and it targeted the poor and the extremely poor people in Brazil (Costa, 2018). The plan would allow them to access a medical allowance and a school grant from the respective ministries. The program requires that children between the age of six and fifteen be enrolled in school. The children should attend 85% of their classes.
The government is also implementing policies that will ensure equal treatment of every citizen regardless of their age, race, or gender. The policies will focus on achieving fairness and justice for everyone. The policies include the tax policy and minimum expenditure policy (Lustig, Pessino & Scott, 2014). People will be entitled to equal job opportunities, whether females or males. The equality in job opportunities will help people to meet their basic needs such as food and housing.
Consequently, equality promotes peace and reduces the rate of crimes in Brazil. Peace and low crime rates create a conducive environment for people to conduct business; hence, it supports economic growth. Foreign investors are also attracted to a peaceful country, and they are effective in reducing the rate of unemployment.
Measures of Inequality
Economists argue that there is no appropriate way of measuring inequality in different countries. The method of measurement selected depends on the focus of the person.
The Gini Index is one popular method used to measure inequality. The calculations are based on quartile shares that were first introduced by Theil (DiMaio & Landoni, 2015). It takes values from zero to one. Zero represents an equal society, while one is an unequal society. The Gini Index defines the perfect equality line and the Lorenzo curve that is represented by ‘A’ (DiMaio & Landoni, 2015). It mainly uses income shares, population, and the mean distribution to determine the rate of inequality.
The Hoover Index or Robin Hood Index is another way of measuring inequality in economics and science (Wilkie & Azzopardi, 2015). It focuses on examining how much income the country has transferred from the rich to the poor to achieve equality for the country. On graphs, the index is represented by the difference in the total equality curve and the Lorenzo curve (Wilkie & Azzopardi, 2015).
Conclusion
Inequality has significant impacts on the economic growth or performance of a country. It results in increased poverty and unemployment in a country. Brazil is one country that is profoundly affected by inequality. Globally, the country is 19th in terms of inequality levels. The high equality levels have resulted from several factors such as unemployment, discrimination, geographical differences, and poverty. Primarily, inequality increases when the most resources of a country are distributed to particular special groups. Unemployment and poverty limit the ability of people to access basic needs such as food, housing, and education. Besides, female gender suffers from unemployment at a higher rate compared to males. The discrimination that causes inequality in a country is based on race and gender. The Africans who live in Brazil have limited access to quality education services. Besides, most of them are paid meager wages that cannot meet their basic expenses. Brazil has come up with several ways that are effective in reducing inequality. They have implemented favorable policies that ensure fairness and justice for all people. They have created the ministry of Social Protection, whose obligation is to ensure all people can access equal opportunities. The inequality of a country can be measured using the Gini index and the Hoover index.
References
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Arrais, T. A. (2019). INCOME INEQUALITY, PUBLIC EMPLOYMENT, AND INCOME TRANSFERS IN CONTEMPORARY BRAZIL. Mercator, 18.
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