The incidence of child labor for income level

9:51 PM Thu Jan 21 27% Ñ… CASE STUDY.docx Case Study Progress in the Struggle for More Meaningful Development: Brazil There are two faces of development in Brazil. World-competitive industry coexists with stagnant, protected sectors. Modem agriculture coexists with low-productivity traditional practices. But Brazil is in the midst of a spurt of economic development that might herald a lasting transformation for a country often considered synonymous with inequality and unmet potential Economic growth has retumed, health and education have improved markedly, the country’s democratization has proved durable, and inequality–among the highest in the world has at long last started to fall. But there is still a long way to go to achieve genuine development in Brazil. Growth remains vulnerable to world commodity prices, and social progress remains tenuous as revealed by the widespread protest demonstrations that erupted in 2013. Many Brazilians have been frustrated with the uneven pace of development and are known for telling self-deprecating jokes such as “Brazil is the country of the future and always will be.” Brazil has even been cited as an example of a country that has experienced “growth without development.” But despite huge inequities, Brazil has made economic and social progress. Extremely high economic inequality and social divisions do pose a serious threat to further progress in Brazil. But there are growing reasons to hope that Brazil may overcome its legacy of inequality so that the country may yet join the ranks of the developed countries, Brazil is of special interest in part because its growth performance from the 1960s through the early 1980s was the best in Latin America, with at least some parallels with East Asian export policy and performance, although Brazil had a larger role for state-owned enterprises, much lower education and other social expenditures, and much higher inflation. Brazil’s performance is followed widely in the developing world, as it is the largest and most populous country in Latin America: with close to 200 million people, it is the world’s fifth-largest country in both area and population. Brazil is consolidating its role as the lead country in the Latin America and Caribbean region; it is a key member of the G20 leading economies, and one of a group of developing countries pushing for fairer international trade rules.

It is one of four influential countries referred to by the media and financial analysts as the “BRICS” (Brazil, Russia, India, and China, often expanded to include South Africa). Although over two decades of military rule ended in Brazil in 1985, an ongoing debt crisis, years of stagnant incomes, and extremely high inflation followed. It took drastic policies to reduce inflation, and incomes continued to stagnate in the aftermath. The 1980s and the 1990s have been described as “lost decades” for development. So the recent signs of palpable progress, especially since about 2004, have been welcomed with relief and growing enthusiasm among many Brazilians. Although the country remains politically divided between the center left and the center-right, a striking convergence has been achieved on policies agreed to be necessary for equitable and sustained growth, ranging from active poverty reduction programs to relatively orthodox monetary policies. The economy has been growing more rapidly (if inconsistently), in part due to commodity exports to China, from soybeans to iron ore. One persistent worry is whether the economy could continue to grow rapidly if commodity prices, which have been much higher in recent years, revert to their very long-term trends for decline (see Chapter 12), or the slowing growth in China curtails demand for Brazil’s products – both genuine worries by 2013. High crime remains a problem, especially in the favelas (slums). But despite the nation’s early and now resumed growth other indicators of development in Brazil lagged, eventually undermining growth prospects. Benefiting from much higher incomes than Central American countries and spared the destructiveness of civil war, Brazil, it would seem, should have been in a much better position to fight extreme poverty and improve economic equity and social indicators. Instead, despite recent improvement, the country has continued to see a higher percentage of its population in poverty than would be expected for an upper-middle-income country. Brazil remains one of the countries with the highest levels of inequality in the world. So how should Brazil’s development performance be evaluated and future priorities chosen? Income and Growth Growth is generally necessary, though not sufficient, for achieving development. In 2011, Brazil’s per capita income was close to $11,000, still well under a quarter of that of the United States but more than nine times greater than that of Haiti (World Bank data). Growth has been erratic, with substantial swings over time. Data for growth of gross domestic product (GDP) per capita are sometimes presented for the periods 1965-1990, when for Brazil it was 1.4%, and for 1990-2000, when it was 1.5%.

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