Brazil Report

In: Business and Management

Submitted By student1455
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Pages 9
REPORT – BRAZIL

Distribution of income
Brazil has historically a very unequal income distribution. In the 90´s Brazilian government believed that if high inflation rate were cut down, the income distribution would improve. In fact, after a successful plan of stabilization of the inflation, the unequal pattern of income distribution did improve in a consistent way in this decade.
Other important aspect about income inequality in Brazil is related to regional pattern of income distribution, which is extremely unequal between different regions of the country. Although a generally improved distribution of income took place, the differences between regions remained in the 90’s.
However, the current level of unequal income distribution is yet very far from the pattern of many developed countries. [1] Growth and structural changes have not altered significantly Brazil's extremely unequal distribution of wealth, income, and opportunity. Despite impressive increments in economic growth and output, the number of poor has risen sharply. Most of the poor are concentrated in the rural areas or in the country's large cities or metropolitan areas.
Poverty, measured by the local minimum wage, declined from over 52% of the population, in the beginning of the nineties, to about 38% in 2005, meeting the Millennium Development Goal. Extreme poverty, defined as income of less than a dollar a day (in purchasing power parity), declined from 8.8% to 4.2% in the same period. [2]

Trade
In 2004, exports reached US$ 100 billion, an all-time record for the period. Trade surplus also reached a record high of US$ 33,6 billion. In 2003, Brazilian exports had reached a Record US$ 73 billion, a 21% increase compared to the same period in 2002. This performance is more impressive if compared to the growth expectation for world trade this year, of only 2.9%.

If at the beginning the…...

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