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Inequality and Economic Development in Brazil is part of the World
Bank Country Study series. These reports are published with the
approval of the subject government to communicate the results of
the Bank's work on the economic and related conditions of member
countries to governments and to the development community.
Excessive income inequality is unfair and undesirable on ethical
grounds and can bring adverse effects on economic growth, health
outcomes, social cohesion, and crime. Excessively unequal initial
conditions are likely to lead to a perverse cycle of weak social
mobility. Such is the case in countries like Brazil, where
fertility differentials between educated and uneducated mothers are
much greater. Brazil's income inequality has been very high and
persistent over time, and has deep historic roots. Nonetheless,
there have been important income improvements for the poorest,
especially since stabilization in 1993. Brazil also has achieved
major improvements in social indicators in the last few decades.
This study addresses three questions: - Why do inequalities matter
for Brazil's development? - Why does Brazil occupy a position of
very high inequality in the international community? - What should
public policy do about it?
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