Piotr Grudzinski BBA5  

Table of Contents:

  List of Tables and Figures  3

1.  Introduction  4

2.  Macroeconomic Tendencies in Latin America and in Brazil  5

3.  Economic Structure in Brazil  6

4.  Poverty Issue (economic and social aspect) and measuring methodologies  7

4.1  Economic Poverty Indicators (narrow direct measures)  7

  Case of Brazil  8

4.2.  Socio-Political Poverty Indicators (broad indirect measures)  10

  Case of Brazil  11

5.  Political Situation and Conclusions  12

  Bibliography  13

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  Piotr Grudzinski BBA5  

List of Tables and Figures:

  FIGURE 1:  

  Galbraith J K Garcilazo E (2004) World Bank Inequality D S Gini Coefficients 1950 1997 Measuring Inequality On  

  theory and technique University of Texas Inequality Project San Hose Costa Rica http: utip gov utexas edu  

  http: utip gov utexas edu tutorials Panview 1en ppt  

  FIGURE 2:  

  World Bank website (2005) Gini Index http: www worldbank com  

TABLE 1:   

  Szekely M et al (2000) Do we know how much poverty there is Banco Interamericano de Desarollo (BID) Working  

  Paper No 437 www iadb org res publications pubfiles pubWP 437 pdf  

TABLE 2:   

  Szekely M et al (2000) Do we know how much poverty there is Banco Interamericano de Desarollo (BID) Working  

  Paper No 437 www iadb org res publications pubfiles pubWP 437 pdf  

TABLE 3:   

  De Janvry A Sadoulet E (2000) Growth Poverty and Inequality in Latin America: A Casual Analysis 1970  94

  Review of Income and Wealth Series 46 Number 3 University of California at Berkeley  

TABLE 4:   

  Justino P Acharya A (2003) Inequality in Latin America: Processes and Inputs Poverty Research Unit at Sussex  

  University Working Paper No 22 Brighton http: www sussex ac uk Users PRU  

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Piotr Grudzinski BBA5

1. Introduction

Brazil is the biggest Latin American Nation with 177 million people. It is the one with most inequalities, but most would agree also with the biggest potential to become a continental leader and maybe a first reformist and innovator in the region. However no country can maintain sustainable development without diminishing economic and social problems. A main issue in most countries in Latin America, also in Brazil is poverty. Antipoverty efforts have increasing priority among socio-political objectives both internally (within governing bodies), as internationally within organizations involved in anti-poverty policies. As a consequence it has to be defined what is poverty, how to measure it?

Income/Consumption Method has the widest use measure economic aspect. The other methods focus on social inequalities like: access to social institutions, social security, differences in social legitimacy and status, inequalities of freedom and social and political participation. It seems targeting poverty issue through reforms, deregulation, FDI may give Brazil a chance for a fast paced growth. The question arises what is the current situation in the country? What other factors influence the lingering “status quo”?

Focus and Layout

A strategic analysis of the country Brazil is intended. Starting from macroeconomic tendencies, key economic factors will be discussed in comparison to the general development of these in the region. Presentation of economic structure is intended. Deriving from the above, discussion about poverty is intended. Here, both economic perspective (income inequality), as socio-political view is to be presented (socio-political inequality i.e. due to social exclusion and impossibility of certain populations to access key social services). Different poverty dimensions will be addressed. This paper will present a framework of aspects that make the poverty in Brazil a lingering, persevering state. Last but not least the political assessment and future view on development of country will be shown.

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