Brazil-China: Social Exchanges Marcelo Neri Minister of Strategic Affairs

Brazil: Middle of the World & the Middle Path Quality of Development Public Policies Agenda Brazil-China: Social Exchanges

% Population with Income Below U$ 1.25 per day PPP Source: IPEA / SAE from PNUD Brazil: Middle of the World

Source: IPEA / SAE from the Demographic Census/IBGE % Population with Income Below U$ 1.25 per day PPP A World within Brazil

US China Brazil Russia India Percentile of the World Income Distribution Each Country Source: Milanovic (2011); see Neri (2011) Income Distribution Relative to the World Brazilian Per Capita GDP (PPP) is 93.7% of the World GDP *

Source: Milanovic (2011); see Neri (2011) Brazil is a Small World (photo & Movie) Year Gini Coefficient China EffectChindia Effect Inequality Across Nations *

Fonte: IPEA a partir dos microdados da PNAD/IBGE Cumulative growth rates of per capita income vintiles between (%) Income Distribution Changes

Brazil X BRICS Copyright © marcelo neri

Component that Explains Proportion of Extremely Poor % of Total Fall (69,3%) Income Growth 50.5% Inequality Fall 49.5% Dynamic Decomposition of Extreme Poverty fall of 69,3% in Brazil Between Source: Ipea/Sae from Pnad/IBGE microdata What best explains Inclusion? Growth or Equity? Growth or Equity? The Middle Path

Prosperity Growth in mean income and consumption (not only GDP/National Accounts but also look to Household Surveys data). Sustainability Ability to maintain the standards of living achieved. Stocks of human, environmental, physical, cultural and social assets. Equity Looking at the distribution among individuals and social groups of income flows, stocks of assets and rights. Sensibility The last dimension is subjective, based on people’s percepction about the country, the public services and life quality. Inclusive Sustainable Development?

GDP X Mean Income PNAD X Median Income PNAD X 10% Poorest PNAD Real Per Capita 2003 = How much did it grow? Source: IPEA /Sae from PNAD/IBGE microdata and National Accounts/IBGE

Brazil was 14th in the World Ranking of Happiness in 2013: 7,1 the highest since 2006 Present Happiness Life Satisfaction Today 2006 to 2013 (0 to 10 scale) Source: Gallup World Poll *SIPS/Ipea / total Mean Portugal5,2684,99825,22754,87805,32595,7237 5,4151-7,54%5,25 Italy6,0395,84496,06416,35316,33256,78216,57186,8519-8,59%6,35 Ireland6,8206,96157,01177,26127,0597,574 7,1413-3,39%7,11 Greece4,7945,10755,37685,84476,0433 6,65166, ,74%5,67 Spain6,2356,29316,52336,19366,20297,2986,99117,1512-8,79%6,60 Brazil7,1146,93187,04166,84207,00116,69236,32246,64214,73%6,82 Russia5,5615,62565,39665,38645,16695,62405,22514,96734,44%5,36 India4,61004,60994,631124,99774,52905,15615,03595,3555-6,13%4,86 China5,2685,09765,04794,65924,45934,85764,86664,56956,73%4,84 South Africa5,13734,93904,65935,22645,35535,20545, ,70%4,91 Chile6,7216,60246,53326,64266,49205,79355,70346,063410,11%6,31 Colombia6,6256,37286,46356,41296,27286,17306,14276,02355,04%6,31 Mexico7,457,3276,91206,80226,96126,83196,53196,58235,69%6,92 Peru5,8505,82505,89445,61545,52475,13635,21534,817711,85%5,47

Are you satisfied with the city or area where you live?

Is the city or area where you live a good place to live for immigrants from other countries?

Macro: Savings and Productivity Demographic Transition & Urbanization (avoid Brazilianization): Youth and Immigration Exchange of Integrated Social Policies: Poverty and the New Middle Class Countries groups: BRICS, BIGs & Chisil Main Challenges: Strategic Agenda

References & Links Comunicado do Ipea nº e Comunicado do Ipea nº pdf Human Development Map – Brazilian Cities (English) Report on the Millenium Development Goals (MDGs) (English) Bolsa Família Program (English) e7www.wwp.org.brwww.wwp.org.br The New Middle Class (English) & ttp:// Short Video