Slowing the Growing Inequality in Brazil via Public Policy

There are many ways that Brazil can fight inequality. Brazil should focus on policies that reduce inequality and poverty, and increase efficiency, growth, and competitiveness. There is no compromise in the key areas that need actions. It doesn’t mean that these changes will benefit everyone. There will be political choices, and they do include the dismantling of privileges such as those enjoyed by the beneficiaries of excessive public sector pensions.

The vital area that needs improvement is education. Every educated generation becomes less unequal than current rates. Despite seeing a major progress in this field in the last two decades, Brazil is still lagging behind when compared to international and Latin American standards.

Educational expansion is also undoubtedly desirable because it will probably lead to a faster and better quality growth by making right the inefficiencies caused by in equality. Think insufficient human capital investment of the poor.

Finally, the demographic window of opportunity is quickly expiring for Brazil. That means a lot of generations will not catch up and inequality in Brazil will continue to grow with no end on the horizon.

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