Anti-Proverty Program in Brazil

In: Business and Management

Submitted By feliciteshen
Words 1641
Pages 7
Introduction: The Fast Economic Growth of Brazil
Brazil is the world’s eighth largest economy by nominal GDP and ninth largest by purchasing power parity reached $10,513 in 2010, and is the largest among South American nations and is the second largest in the western Hemisphere after the United States. [1] Despite the fast growth of economy in Brazil last decade, Brazil is still considered a country with fairly high income inequality, the high poverty ratio in the Brazilian communities hindered the substantial growth of its economy. In this paper I am going to introduce the formation of anti-poverty program in Brazil, how the program was processed, and the results of the program.

I. Poverty in Brazil Poverty in Brazil is most visually seen by the various “favelas”- slums. Favelas are mostly sprawl in the country's metropolitan areas and remote upcountry regions that suffer with economic underdevelopment and below-par standards of living. [6]
From WWII to year 2000, the underlying Brazil's weak growth performance is its highly unequal income distribution and the prevalence of poverty. The poverty and income inequality contribute to sluggish growth, both by constraining many households' ability to invest in human capital and to obtain financing to start small firms, as well as by contributing to the fragility of the political equilibrium.

The rate of poverty is in part attributed to the country's economic inequality. In 2000, Brazil ranks among the world's highest nations in the Gini coefficient index of inequality assessment. The Gini coefficient index is around 60 around year of 2000, with the richest 10% of Brazilians receiving 42.7% of the nation's income, while the poorest 10% receive less than 1.2%.[6] (see graph below). A study on the subject shows that the poor segment constitutes roughly one third of the population, and the extremely poor make…...

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