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Study Shows Less Inequality in Brazil But Also General Decline in Income

Social inequality is at its lowest level since the 1960 Census. This is one of the major findings of a new study released today, June 8, by the Getúlio Vargas Foundation (FGV).

The study, which is based on the National Household Sample Survey from the Brazilian Institute of Geography and Statistics (PNAD-IBGE), with data from 2004, indicates that, since the beginning of the present decade, the country has been making progress in reducing the inequalities between rich and poor.

The study also shows that while average income in Brazil rose 3.6% in 2004, the income received by the poorest part of the population grew 14.1%.

The study, entitled "Growth for the Poor: The Brazilian Paradox," was conducted by the FGV, together with researchers from the United Nations (UN) International Poverty Center, and will be presented by professor Marcelo Nero, head of the FGV’s Center for Social Policies.

In an interview with the Agência Brasil, Neri affirms that the study demonstrates that the decline in inequality that occurred in 2004 continues a trend that began in 2001 in the direction of an improvement in the distribution of income.

"The most recent PNAD shows that the pie was better distributed. Over the last ten years, however, income growth was a deception for Brazilians in general.

"The situation is somewhat paradoxical: Over this period the average income of the Brazilian population as a whole declined 0.63% annually, while the income earned by the poorest segments grew 0.73% in per capita terms, that is, discounting population growth."

Agência Brasil


  • Show Comments (6)

  • Guest

    6-12 cokes!!! I’ll be a diabetic in no time…..Hahahaha This, sadly, is hapening here in the USA at a rather fast pace I’m afriad. I shall retire in Bahia,on my farm, and be able to live cheaply if I don’t want too much. Just a beer, my freinds,good food & I’ll be happy.
    “There is a healthy self-motivated Brazilian relaxing in his hammock that swings gently in front of his seaside home, as he strums his guitar for his family and himself. For dinner, he picks exotic fruits and catches fresh fish. He feels glad, and lucky to be alive. Suddenly, without warning a businessman arrives, buys all the land, cuts down all the trees and builds a factory. He hires this local guy to work in it for money so that someday he can afford canned fruit and frozen fish from the store, a nice cinder block house near the beach with a view of the water, and weekends off to enjoy it.”

  • Guest

    6-12 cokes!!! I’ll be a diabetic in no time. It’s true brazil is not cheap for your average brazilian. But seriously it makes me sick that government wage increases are linked to increases in the minimum wage. Brazil seriously needs to purge its government unfortunately they make the rules.

  • Guest

    dollar V Reils
    “Don’t compare dollars to Brazilian’s money. When a Brazilian go shopping the prices are quoted in Reals. You compare how long you have to work to buy the Brazilian’s goods.”

    How true…when one works in Brasil at min. wage he can buy one coke an hour. When one works for min. wage in the USA she can buy 6-12 cokes (6-pack specials) per hour. This is one of my best explanations on the differences. It can easily be applied to other items as well. A home in the USA can now be purchased over a 50 yr period, a car over 5-6, even for the poorest you can go to McDonalds (yuk!) and buy off the unhealthy dollar menue. I think ya’ get the general idea here.

  • Guest

    Don’t compare dollars to Brazilian’s money. When a Brazilian go shopping the prices are quoted in Reals. You compare how long you have to work to buy the Brazilian’s goods.

  • Guest


    “The study also shows that while average income in Brazil rose 3.6% in 2004, the income received by the poorest part of the population grew 14.1%.”

    Well, the poorest people in brazil don’t even make minimum wager, which is currently around $150 U.S., so if they make another 20 dollars a month, it seem substantial percentage wise but is still miserable.

  • Guest

    your government took all the money through taxes and spent it in corruptions, mismanaged projects,
    high salary increase for government and states employees.

    The trick used is simply due that government and sate employees salaries are based on a multiple of the basic salary. Therefore if the minimum wage is raised 17 % (this year for example) the government/state employees also get 17 % increase but based on their multiple.

    Therefore with these workers the inequality cannot be reduced with those earning 1 minimum wage or even less in most cases !

    Simple maths !

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