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Inequality in Brazil

All the sources used in this paper should be academic and in regards to journals they must be peer reviewed. The instructions for the paper will be in the attachments and it is very thorough and clear. Also I attached my research paper proposal on this topic, and the research should follow this the paper proposal which has already set a research question and main ideas. Please use them both.

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Inequality in Brazil

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Introduction

Brazil is one of the major countries that are well known for its inequality. Apart from that, it is also among the developing states globally. It is evident that Brazil is a major state that faces more than a few issues of financial system. However, the government has tried its best in order to ensure that the state is in normal situation. However, this has not been an easy task to the government as a result of issues within and outside the state. As the GDP increases, the welfare of the people is expected to be realized and poverty reduced. However, this is not possible if the necessary authorities have not taken measures to ensure that all the people benefit from the growth in the country. This has been the case in several countries, such as China, Brazil and India that demonstrated steady economic growth but no significant reduction in poverty rates. This paper is specifically motivated by the gap between the rich and the poor in Brazil as well as the lack of significant reduction in poverty rates (Rosenberg, 2011).

In the world economy, it has been stated that Brazil as the major state that faces issues with income inequality. For instance, reports from the World Bank in the year 2001 ranked 152 states and Five African states had GuineaCoefficient higher than Brazil. Despite being a developing country, it is evident that Brazil’s GDP and economic clout is the worst compared to other developing states globally. The poor financial system of the state has prevented the government from influencing innovation and creating employment. These factors have resulted in poverty and the decline of the economy. Over the years, debate by different states has debated over the issues that affected the state. Unfortunately, very little progress has been made concerning the issues facing the state. However, recent research reviews that Brazil problems have been influenced by major factors which include education, regional inequalities, price instability, and structural unemployment. These factors all together have caused major crises in Brazil (Rosenberg, 2011).

Research question

  1. Why has the process of socioeconomic transformation and poverty reduction in Brazil been slow, even though it continues to experience economic growth?

Literature Review

The poverty levels in Brazil are not a good trend and have to be addressed. It is specifically important to address the income inequality considering that the economy of the country has been growing. Poverty levels are known to make a country insecure making investments difficult, and this can stop the continuous growth of such economies. As the gap between the poor and the rich increases, the rich become insecure, meaning that they do not benefit as much from the wealth that they accumulate. The government also ends up spending a lot of money in ensuring that there is the security. This is the situation in Brazil because insecurity is increasing due to the increasing number of poor people living in the slums (Torres, 2014).

The government cannot ignore the people who also need to share the benefits of the improved Brazilian economy. Furthermore, it is expected that the difference in income in Brazil is a result of the difference in control of resources. In a capitalist economy, individuals who own the resources of production continue to accumulate wealth. They use the resources they have to generate more, while exploiting the poor who provide cheap labor. The other idea is that there has been lack of economic policies aimed at redistributing income. Proper tax laws can help redistribute income to the poor ensuring that they receive social amenities. Furthermore, it is expected that the lack of proper education for all is a hindrance to income equality (Torres, 2014).

 

The poor cannot access appropriate education, meaning that they cannot secure jobs to meet their basic needs. Moreover, it is expected that technology is a cause of the rising income gap in Brazil. The wealthy do not need laborers to engage in production. They have resulted in the use of machines that are more accurate and cheaper. This means that the poor do not get jobs and as the wealthy continue to accumulate wealth, the poor become poorer and this widens the income gap. In addition, another important factor that cannot be ignored in this research is the colonial legacy of the Portuguese, whom neglected in the institution of education in Brazil; only a few elite had access to them (Vogel, 2014).

During colonialism, they had the absence of printing press and universities. Also the immense importation of slaves from Africa developed into tremendous socioeconomic biases that persist to this day in which Brazilians of black color suffer income discrimination and access to resources. There is clearly a connection with present inequality and its colonial legacy. All of these factors will be studied in the research paper in order to explain why the process of socioeconomic transformation and poverty reduction in Brazil has been slow in the face of economic growth (Vogel, 2014).

Human capital and technology has affected the progress of Brazil in numerous ways. In Latin America, Brazil stands out to be the most advanced state in the technological sector. Their ability in technology began in the early 1970s and this has been the key factor in human capital. The increase in technology means that more than a few people within the state require the skills in order to operate machines. In addition, the non-skilled workers will lose their positions and this factor will increase the level of poverty within the state. Technology is highly beneficial to the society, but most Brazilians are not well educated to handle the jobs. Therefore, the government is forced to employ foreign workers so as to run the companies. Today, the total number of jobs that were in Brazil has reduced as a result of technology (Nocera, 2014).

Brazil has not invested much in Education. Education is one of the best strategies to much of the Brazil problems. However, most of the people living and born there have associated themselves with other activities especially soccer. Therefore, Brazil needs education in order to create human capital. The administration and financial system of Brazil need to be well proven before the state earns huge amounts of currency. However, the administration of Brazil avoids investing in education because they term it as risky. Many people living in Brazil are not interested in education because the government has not put efforts to educate people. It is also clear that Brazil administration does not have enough money to support education. This aspect has negatively affected the progress of how the government can stabilize the financial system of the state. States like the United States and United Kingdom have tried so hard to ensure that people within the state get enough of the education the state needs (Creamer, 2012).

However, the government of Brazil argues that more issues are linked to income inequality. Some people are well off than others or people of the same level of education earning different amount of salaries. Therefore, assists from other states has faced challenges to help the state solve its issues. It is evident that another issue that is related to Brazil issues is regional inequalities. Based on research, it is clear that the Northeastern Region of Brazil holds 28% of the Brazilian population, but produced 13% of the GDP in the year 1998. This was the root to more problems in the state. It is clear that the northern receives receive less than the southern region because the southern region holds 43% of the population and produces approximately 58% of GDP. Therefore, the market balance of Brazil is not stable because the southern region enjoys more compared to the Northern region (Creamer, 2012).

Market theory clearly suggests that resources should move in order for the market to balance. However, the major problem is associated with mobility. It is clear that Brazil can only improve their mobility if the government creates a cost effective mobile. The transport costs of Brazil are too high while distances are great. In addition, there is also the choice of human capital moving to expand markets, but the rate of movement mostly affects the benefits a new market. Price stability in Brazil is not suitable. Most of the products sold all over the state of the same quality and quantity are sold for different prices (Fleischhaker, 2014).

Theory argument and hypotheses and research design

Various theories can be used to account for the reason Brazil is slow in socioeconomic development. One of the theories is an international relations theory. The theory explains that countries relate and economically benefit from other mutually if their association is credible. Brazil lacks a perfectly aligned international relations forum. The South American country is involved in very few trade partnership deals with other nations from the globe. In fact Brazil has only one trading block which the BRICS Group comprising Russia, India, China and South Africa. The Brazil has not invested enough in international relations as compared to the other steadily developing countries. The international relation theorists explain that the development of a country is determined by the number and quality of international partners, which country is subscribed to (Hanson, 2012).

International relations theorists argue that a country would benefit most from international trade if it has established pacts that bind the country to its trade partner. Contrary to this, Brazil trade strategy is reluctant to engage trade partners at is not spelt within the engagements of BRICS Group which only successful international trade block of Brazil. For instance, according to (Bureau of Western Hemisphere Affairs, 2013), Brazil exported 15% of its products to the Netherlands and 8% to Japan. Such a phenomenon puts Brazil at the brick of extortion by trade partners because they are not guided by long term trading terms. This makes Brazil to make very little out of its exports. Therefore, poor international relations program delays the development of Brazil (Bureau of Western Hemisphere Affairs, 2013).

Another account of Brazil’s under development is crime and drug abuse in the country. Brazil is one of the countries with high rates of adverse internal crimes and many cases of drug abuse. A theory that can help link crime and drug abuse in Brazil to its slowed development is the labeling theory of crime. This theory explains that, under adverse situations of crime and drugs, the authorities define what should be called crime or not. Reports indicate that the crime syndicates of Brazil and drug barons are sponsored by officials in the government for malicious purposes. This means that the criminals have an umbrella of immunity in their operations. This situation has led to increase in crime related incidences such rape cases and cold blood murder among others (Creamer, 2012).

This situation drags the development of the country because it causes security turmoil which scares away investors and potential trade partners. Even more badly, most of the criminal activities are targeting rich investors who fail to cooperate with the underground authorities. However, the government is doing very little to mitigate or eradicate the menace. According the labeling theory of crime, such incidences mean that the government is aware and decides to choose what should be branded as a crime or not (Roberts, Schreiber, Scissors, 2012).

Such unfortunate happening scares away investors from the country, hence lowering its development potential. According to the labeling theory of crime, organized crimes are geared at controlling various resources of the country in an unjust way. This means that the Brazilian authorities have corrupt traits which make them organize underground syndicates that execute control over certain resources of the country. This result do killing of many people who could have a potential positive influence on the development of the country. Crime and drug abuse in Brazil is one of the reasons the country is lagging in term development against its potential (Caron, 2008).

Conclusion

It is evident that Brazil is a major state that faces more than a few issues in regard to development. In the world economy, it has been stated that Brazil as one the major state that faces issues with income inequality. Brazil lags behind in stabilizing in socioeconomic though it experiences economic growth because of various reasons. One of the reasons is that the poor cannot access appropriate education, meaning that they cannot secure jobs to meet their basic needs. The unskilled population is being replaced by cheap technology in Brazil, which means the wealthy do not need laborers to engage in production. They have resulted in the use of machines that are more accurate and cheaper (Caron, 2008).

Brazil is developing at the slowest pace in socioeconomic because of racism in the country. The immense importation of slaves from Africa developed into tremendous socioeconomic biases that persist to this day in which Brazilians of black color suffer income discrimination and access to resources. Brazil lags behind in socioeconomic development because it has not invested much in Education. Brazil has substituted basic education with overstressing on vocational activities such as sports. This gap has negatively affected the progress of how the government can stabilize the administrative and financial systems of the state. One of the theories that explain Brazil’s slow socioeconomic development is the international relations theory. According to the theory, Brazil lacks a perfectly aligned international relations forum that would ensure good trading partnership and association that would result in socioeconomic development.

International relations theorists argue that a country would benefit most from international trade if it has established pacts that bind the country to its trade partner. Labeling theory of crime also explains why Brazil lags in socioeconomic development. This theory explains that the authorities define what should be called crime or not. Crime syndicates of Brazil and drug barons are sponsored by officials in the government for malicious purposes and this scares away potential investors. From Brazil to develop socioeconomically, the authorities should stress on education, credible international relations and face out crime and drug abuse from the country.

 

 

 

 

 

 

 

 

 

References

Rosenberg, T., (2011). To Beat Back Poverty, Pay the Poor. Opinionator. Print. Retrieved from http://opinionator.blogs.nytimes.com/2011/01/03/to-beat-back-poverty-pay-the-poor/

Torres, G., (2014). For Latinos, a War on Poverty is an Economic Imperative. New York Times. Print Retrieved from http://www.nytimes.com/roomfordebate/2014/01/05/does-the-us-need-another-war-on-poverty/for-latinos-a-war-on-poverty-is-an-economic-imperative

Vogel, N., (2014). The Facts on Brazilian Income Inequality. ICCO. Print. Retrieved from http://www.icco-international.com/int/news/blogs/nadine-de-vogel/the-facts-on-brazilian-income-inequality/

Nocera, J., (2014). Does Brazil Have the Answer? New York Times. Print. Retrieved from http://www.nytimes.com/2014/01/21/opinion/nocera-does-brazil-have-the-answer.html?_r=0

Creamer, R., (2012). Reducing Income Inequality is the Key to Economic growth—Time to Pass the Buffett Rule. The Blog. Retrieved from http://www.huffingtonpost.com/robert-creamer/reducing-income-inequalit_b_1414602.html

Fleischhaker, C., (2014). Why Brazil’s Economy is in Trouble but Dilma is Not. No Se Mancha. Retrieved from http://semancha.com/2014/01/29/dilma/

Hanson, S., (2012). Brazil on the International Stage. Council on Foreign Relations. Retrieved fromhttp://www.cfr.org/brazil/brazil-international-stage/p19883

Bureau of Western Hemisphere Affairs., (2013). US Relations with Brazil, US. Department of State: Diplomacy in Action. Retrieved from http://www.state.gov/r/pa/ei/bgn/35640.htm

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Paper Proposal

Inequality in Brazil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inequality in Brazil

Introduction

Brazil is one of the fastest developing countries in the world. As the GDP increases, the welfare of the people is expected to be realized and poverty reduced. However, this is not possible if the necessary authorities have not taken measures to ensure that all the people benefit from the growth in the country (El-Ghonemy, 26).  This has been the case in several countries, such as China, Brazil and India that demonstrated steady economic growth but no significant reduction in poverty rates. This paper specifically is motivated by the gap between the rich and the poor in Brazil as well as the lack of significant reduction in poverty rates.

 

Research question

  1. Why has the process of socioeconomic transformation and poverty reduction in Brazil been slow even though it continues to experience economic growth?

 

Literature Review and Main Points

The poverty levels in Brazil are not a good trend and have to be addressed. It is specifically important to address the income inequality considering that the economy of the country has been growing (Relations, 41). Poverty levels are known to make a country insecure making investments difficult, and this can stop the continuous growth of such economies. As the gap between the poor and the rich increases, the rich become insecure, meaning that they do not benefit as much from the wealth that they accumulate. The government also ends up spending a lot of money in ensuring that there is the security. This is the situation in Brazil because insecurity is increasing due to the increasing number of poor people living in the slums. The government cannot ignore the people who also need to share the benefits of the improved Brazilian economy. Furthermore, it is expected that the difference in income in Brazil is a result of the difference in control of resources. In a capitalist economy, individuals who own the resources of production continue to accumulate wealth (Burns, 62). They use the resources they have to generate more, while exploiting the poor who provide cheap labor. The other idea is that there has been lack of economic policies aimed at redistributing income. Proper taxation laws can help redistribute income to the poor ensuring that they receive social amenities (Bar-El, 34). Furthermore, it is expected that lack of proper education for all is a hindrance to income equality. The poor cannot access appropriate education meaning that they cannot secure jobs to meet their basic needs (World bank, 8). Moreover, It is expected that technology is a cause of the rising income gap in Brazil. The wealthy do not need laborers to engage in production. They have resulted to the use of machines that are more accurate and cheap. This means that the poor do not get jobs and as the wealthy continue to accumulate wealth, the poor become poorer and this widens the income gap (Franko, 51). In addition, another important factor that cannot be ignored in this research is the colonial legacy of the Portuguese, whom neglected in the institution of education in Brazil; only a few elite had access to them. During colonialism they had the absence of printing press and universities (Skidmore, 6). Also the immense importation of slaves from Africa developed into tremendous socio-economic biases that persist to this day in which Brazilians of color suffer income discrimination and access to resources (Skidmore, 7). There is clearly a connection with present inequality and its colonial legacy. All of these factors will be studied in the research paper in order to explain why the process of socioeconomic transformation and poverty reduction in Brazil has been slow in the face of economic growth.

(Important comment)You can summarize these points under two broad categories of colonial legacies (social, economic and political) and the type of political arrangements that reinforced the control of value-producing resources by one segment of the society (basically, the politics of exclusion).

Works Cited

Bar-El, Raphael. Regional Development and Conflict Management: A Case for Brazil. Bingley, UK: Emerald Group Pub, 2008.

Burns, E B. The Poverty of Progress: Latin America in the Nineteenth Century. Berkeley: University of California Press, 1983.

El-Ghonemy, M R. How Development Strategies Benefit the Rural Poor: Analysis of Country Experiences in the Implementation of the Wcarrd Programme of Action. Rome, 1984.

Franko, Patrice M, and Patrice M. Franko. The Puzzle of Latin American Economic Development. Lanham: Rowman & Littlefield, 2006.

Relations, Dept I. M. F. E. Finance & Development, March 2011. Washington: International Monetary Fund, 2011.

Skidmore, T. E. (2004). Brazil’s persistent income inequality: Lessons from history. Latin American Politics and Society, 46(2), 133-150.

 

World Bank. Rural Poverty Alleviation in Brazil: Toward an Integrated Strategy. Washington, D.C: World Bank, 2003. Internet resource.

 

 

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