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ID (GVT 281-Summer I) Brazil: Q2 January 3, 2013 COMPARATIVE POLITICS 3 Brazil: What is the major cause of income inequality in Brazil? Introduction Different people all over the world have different sources of income. Examples of these income sources include stock share dividends, salaries, business profits, rent, and interests earned from savings accounts…
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Download file to see previous pages The population comprises of a mix of people with European, African, and Native American roots, as well as other immigrants from Europe and Asia. Despite having a large resource base and a well-developed economy, Brazil has deep-seated social problems such as income inequality and poverty. This can be seen from the fact that, in Brazil, there is a dramatic variation in the living conditions of the Brazilian people. The nation is characterized by varying poverty incidence rates among the nonmetropolitan urban areas, metropolitan areas, and rural areas. There are also considerable income disparities among different regions. Income Inequality in Brazil Income inequality in Brazil has been very high for a long time. A large number of Brazilians live in poverty despite the fact that Brazil is not a poor nation. In fact, “Brazil has one of the most unequal income distributions in Latin America, a region with the highest income inequality in the world” (Almeida 2008, 7). A recent study conducted by the World Bank showed that over half of Brazilians live in very poor conditions. ...
zilian people in families earning average incomes that were below the poverty line were approximately 51 million, which is about half of Brazil’s total population. However, it is important to note that there are many nations whose levels of per capita income are lower than that of Brazil. Causes of Income Inequality in Brazil Income inequality in Brazil can be attributed to a number of factors. These include: 1. Extreme land concentration among Brazil’s elites. This has led to unequal land distribution among people in Brazil, and is a major cause of inequality and poverty in the country. According to Almeida, “in Brazil, 1% of the population controls 45% of the farmland” (2008, 8). 2. Differences in incomes among different regions in Brazil. Brazil is the most unequal nation in Latin America in terms of income. “In income distribution, Brazil is among the 10 most unequal countries in the world. An estimated 95 percent of the world’s population lives in countries where income is more equally shared than in Brazil” (Thomas 2006, 28).The differences in income among different regions has led to overall income disparity in Brazil, and consequently, to poverty. 3. Racial differences. Racial component as a cause of poverty in Brazil is affirmed by the Brazilian government. A significant part of the overall income inequality in the country can be attributed to income differences based on skin color. Afro-Brazilians, who are Brazilians with an African descent represent almost half of Brazil’s population, and constitute sixty four percent of the poor and sixty nine percent of the very (Almeida 2008). 4. Lack of access to quality education. Educational attainment in Brazil is very disproportionate. Brazil is not characterized by low public expenditure like other ...Download file to see next pagesRead More
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