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Dividing the Pie in Brazil: Income Distribution, Social Policies and the New Middle Class

Author

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  • Jens Matthias Arnold

    (OECD)

  • João Jalles

    (OECD)

Abstract

Brazil has made remarkable progress in reducing poverty and inequality. This reduction is explained by strong growth but also by effective social policies. Besides growth, public services and cash transfers have played the biggest role, the latter notably through the successful “Bolsa Familia” programme. Among public services, improved access to education has played a major role, allowing more Brazilians to move into better-paid jobs. However, shortages in physical school infrastructure are limiting the hours of instruction that students receive. The high drop-out rate needs to be reduced through early interventions such as expanding early-childhood education, by reducing grade-repetition and through more tailored support for those at risk. The quality of teaching could also be raised through more in-service teacher training and stronger performance incentives for teachers. Performance of public services devoted to health and transports has been mixed. Public health services are widely available but suffer from underfunding and training places for medical staff need to be expanded. The public urban transport system suffers from a shortage of investment which is urgently needed to upgrade capacity. Regarding cash transfers, the success of “Bolsa Familia” and new programmes put in place under the umbrella of the “Brasil sem Miseria” programme is remarkable but transfer payments remain too heavily focused on pension benefits. Giving more priority to “Bolsa Familia” and “Brasil sem Miseria” while limiting the real growth of pension expenditures in the future would improve the effectiveness of social expenditures for reducing poverty and inequality. This Working Paper relates to the 2013 OECD Economic Survey of Brazil (www.oecd.org/eco/surveys/brazil). Partager la richesse nationale au Brésil: la distribution des revenus, les politiques sociales et la nouvelle classe moyenne Le Brésil a accompli des progrès remarquables en termes de réduction de la pauvreté et des inégalités. Cela tient au dynamisme de la croissance mais aussi à l'efficacité des politiques sociales. En dehors de la croissance, ce sont les services publics et les transferts monétaires qui ont été les facteurs les plus importants, notamment les seconds dans le cadre du programme Bolsa Familia, qui a été couronné de succès. S'agissant des services publics, l'amélioration de l'accès à l'éducation a joué un rôle majeur, en permettant à davantage de Brésiliens d'obtenir des emplois mieux payés. Néanmoins, les problèmes de pénurie d'infrastructures scolaires limitent le nombre d'heures d'enseignement dont bénéficient les élèves. Il faut abaisser les taux élevés d'abandon des études par le biais d'interventions précoces consistant par exemple à développer l'éducation préscolaire, ainsi qu'en réduisant les taux de redoublement et en apportant un soutien plus individualisé aux élèves à risque. On pourrait également rehausser la qualité de l'enseignement en développant la formation en cours d'emploi des enseignants et en renforçant les mesures d'incitation qui récompensent leurs bons résultats. Le bilan des services publics est mitigé dans les domaines de la santé et des transports. Les services de santé publique sont largement accessibles mais ils pâtissent d'un financement insuffisant, et le nombre de places offertes pour la formation du personnel médical doit être accru. Le système public de transports urbains souffre d'un manque d'investissements, alors qu'il est urgent de consacrer des ressources à la modernisation des capacités. S'agissant des transferts monétaires, la réussite de Bolsa Familia et des nouveaux dispositifs mis en place dans le cadre global du programme Brasil sem Miseria est remarquable, mais les prestations de retraite représentent toujours une proportion excessive des transferts sociaux. En accordant une plus grande importance au programme Brasil sem Miseria en général et à Bolsa Familia en particulier, tout en limitant la croissance réelle des dépenses de retraite à l'avenir, les autorités renforceraient l'efficacité des dépenses sociales en termes de réduction de la pauvreté et des inégalités. Ce Document de travail se rapporte à l’Étude économique de l’OCDE du Brésil, 2013 (www.oecd.org/eco/etudes/bresil).

Suggested Citation

  • Jens Matthias Arnold & João Jalles, 2014. "Dividing the Pie in Brazil: Income Distribution, Social Policies and the New Middle Class," OECD Economics Department Working Papers 1105, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1105-en
    DOI: 10.1787/5jzb6w1rt99p-en
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    Citations

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    Cited by:

    1. Mark Weisbrot & Jake Johnston & Stephan Lefebvre, 2014. "The Brazilian Economy in Transition: Macroeconomic Policy, Labor and Inequality," CEPR Reports and Issue Briefs 2014-14, Center for Economic and Policy Research (CEPR).
    2. Ncube, Mthuli & Brixiova, Zuzana & Bicaba, Zorobabel, 2014. "Can Dreams Come True? Eliminating Extreme Poverty in Africa by 2030," IZA Discussion Papers 8120, Institute of Labor Economics (IZA).
    3. Zorobabel Bicaba & Zuzana Brixiova & Mthuli Ncube, 2015. "Working Paper 223 - Eliminating Extreme Poverty in Africa: Trends, Policies and the Role of International Organizations," Working Paper Series 2163, African Development Bank.
    4. Sudip Ranjan Basu, 2017. "Do data show divergence? Revisiting global income inequality trends," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 24(1), pages 23-53, June.
    5. Zorobabel Bicaba & Zuzana Brixiova & Mthuli Ncube, 2016. "Eliminating Extreme Poverty in Africa: Trends, Policies and the Role of International Organizations," SALDRU Working Papers 170, Southern Africa Labour and Development Research Unit, University of Cape Town.
    6. Solimar Garcia & Irenilza Alencar Nääs & Nilsa Duarte Silva Lima, 2022. "Classifying the Sustainability Profile of Clothing Customers," Circular Economy and Sustainability,, Springer.
    7. AfDB AfDB, . "African Development Report 2015 - Growth, Poverty and Inequality Nexus: Overcoming Barriers to Sustainable Development," African Development Report, African Development Bank, number 2342.

    More about this item

    Keywords

    distribution; distribution des revenus; education; health; impôt; pensions; pensions; salaires; santé; tax; transfers; transferts; wages; éducation;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • I1 - Health, Education, and Welfare - - Health
    • I2 - Health, Education, and Welfare - - Education
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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