Inequality in Brazil

Country Profile Population 206 million Upper Middle Income GNI per capita $11,790* Poverty Headcount 7.4% GINI coefficient 52.9%** HDI *Atlas Method **based on 2013 data

Development vs. Growth

Brazil had a GINI coefficient of for 2013, which falls in the range of highly unequal distributions from 0.5 to 0.7 Countries with economies of a comparable size: Japan, Germany, France, India and the United Kingdom had GINI coefficients ranging from 30 – 35% during the same period

The income distribution has been slower to improve than the poverty rate. Income inequality has only started to decline noticeably over the past ten years where a subtle smoothing effect has begun. Inequality Measured by Quintiles

Drivers of Reductions in Inequality Bolsa Familia – 50 million people were provided with Conditional Cash Transfers Increase in funding to Education Creation of public health system, Sistema Único de Saúde (SUS) public services provide everyone with ‘virtual income’ Services must be free at point of delivery to reach their inequality-busting potential

Source: Oxfam education and healthcare make double the contribution to reducing economic inequality that tax and benefits make alone

Source: Folha de São Paulo Persistent Problems: Human Development Education Health

Education Source: UNESCO Recent changes in educational attainment may have been an effect of Brazil’s policy changes. Brazil increased public spending on education from 10.5% in 2000, to 14.5% in 2005, 16.8% in 2009 and 19% in As a percentage of GDP spending on education increased from 3.5% in 2000 to 6.1% in 2011, which is above the OECD average of 5.6% and above other Latin American countries. Source: OECD

Health On the OECD Better life index Brazil only ranks a 4.6 on health compared to countries like New Zealand and Canada, each earning a top score of 9.3. Brazilians in the south “live better, healthier lives than their poorer northern countrymen. The poor northeastern area of Maranhao only has 0.58 doctors per 1,000 people, while the richer Rio de Janeiro has 3.44

Persistent Problems regressive taxation in Brazil undermines the potential to combat inequality through fiscal redistribution, and preventing even greater investment in health and education (Oxfam) Brazil is one of the few countries where the unemployment rate is lower for less educated people.” In 2012 the unemployment rate for adults who did not complete secondary education was 4.1%, while for adults who completed secondary school it was 5.1% (OECD) Latin America also has some of the lowest rates of return on education: 6.5% compared to 6.6% in sub-Saharan Africa and 12% for the global average (IDB) 25% of the population supplements SUS with private health care Currently there are only about two hospital beds per 1,000 people.

Current State of the Economy

Looking to the Future In 2012 the Brazilian Congress approved a National Education Plan to further increase public spending on education. The new goal of 10% of GDP by 2020 would be the highest portion spent on education in the world if it is achieved. Sources: The Economist