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August 06 , 2007

Inequality and Economic Development in Brazil


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. Besides, excessively unequal initial conditions are likely to lead to a perverse cycle of weak social mobility. Even more in countries-like Brazil-where fertility differentials between educated and uneducated mothers are much stronger. Brazil's income inequality has been very high and persistent over time, and it has deep historic roots. Nonetheless, there have been important income improvements for the poorest, especially since stabilization in 1993 and, Brazil has achieved major improvements in social indicators in the last decades. Inequality and Economic Development in Brazil addresses three questions: Why do inequalities matter for Brazil development? Why Brazil occupies a position of very high inequality in the international community? What should public policy do about it?
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