Who paid the bill? Adjustment and poverty in Brazil, 1980-95
AbstractThe difficulties most Latin American countries have experienced in returning to sustained growth after the world recession and debt crisis of 1982 have surprised and frustrated many observers. Concern is increasingly expressed about the social costs of this period of recession and adjustment, especially for the poorest sectors of the population. Nowhere is this concern better placed than Brazil, with roughly 45 million people living in households below the poverty line in1987. By effectively failing to adjust internal demand to the decline in external funds, Brazil set records with respect to its neighbors in per capita growth and inflation between 1982-88. Brazil, by choosing an expansionary fiscal path, traded growth in the middle years of the decade for inflation and a larger debt three years later. This study looks at the impact of that tradeoff on poverty alleviation in Brazil. Macroeconomic policy affects few people directly. Instead, macroeconomic policy operates through factor and product markets to affect the functional distribution of income, and through the functional distribution, affects individual income, depending on the ownership of factor incomes among households. For most poor households, the most important source of income is the labor market. The approach to analyzing the question of the impact of Brazil's macroeconomic choices on the poor therefore focus on the labor market outcomes these policies stimulated.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 648.
Date of creation: 30 Apr 1991
Date of revision:
Environmental Economics&Policies; Economic Theory&Research; Poverty Assessment; Inequality; Achieving Shared Growth;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Morley, Samuel A. & Fishlow, Albert, 1987. "Deficits, debt and destabilization : The perversity of high interest rates," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 227-244, October.
- Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.