For the past few decades, Brazil has been one of the most unequal countries in the hemisphere and the world, due to the accumulation of wealth in the hands of a few. But experts say this trend is changing.
According to IPEA, o Instituto de Pesquica Econômica Aplicada (the Institute of Applied Economic Research), Brazil’s level of socioeconomic inequality has fallen this past year due to increases in minimum wage and better social programs. In the six metropolitan areas studied, the wealthiest residents had wages 23.5 times higher than the poorest residents, a decrease from 27.3 times higher in 2003. The study shows that the poorest sector of the population experienced a 22% increase in salary in the past five years, while the wealthiest sector experienced only 4.9%.
The Gini index, a measure used to show economic inequality worldwide, is decreasing in Brazil. The index uses a scale of 0 to 1, 1 being the most unequal and 0 being the least unequal. In 2007, Brazil’s Gini index fell to 0.509 from 0.54 in 2002. This is the lowest the Gini has been in Brazil since 1960, and inequality is expected to fall further still to 0.49 in 2010.
1 Comment
If only you were right in saying that “the wealthiest residents had wages 23.5% higher than the poorest residents”! It is actually 23.5 times higher. The richest 10% on average earn 4853 reais per month and the poorest 10% on average earn 206 reais per month. So inequality is still extreme. However, it is indeed very good news that the income gap appears to be narrowing and that overall incomes have increased considerably. Unemployment levels have also been going down.