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Better Wages Make Gap Between Rich and Poor a Little Less Wide in Brazil

Paraisópolis, a shantytown in the heart of rich Morumbi, São Paulo There was a decline of 7% in income disparity among employed persons in Brazil from the fourth quarter of 2002 until the first quarter of 2008. The conclusion was taken from a survey by the Institute of Applied Economic Research (Ipea) conducted in the metropolitan regions of Salvador, Recife, Belo Horizonte, São Paulo and Porto Alegre.

According to the president of Ipea, Marcio Pochmann, the reason for the reduced inequality must be linked to the recovery of the minimum wage's purchasing power in recent years. Pochmann also ascribes the reduction to investment by the productive sector over the last few years, which enabled the hiring of lower income workers.

The survey points to a reduction in the Gini index, used internationally for measuring social inequality. The index ranges from zero to one. The higher the index, the greater the inequality. The index fell from 0.540 in 2002 to 0.509 in 2007.

"By the end of president Lula's (Luiz Inácio Lula da Silva) term, the Gini index should reach 0.49," says Pochmann.

The Gini index has improved because the income recovery of the poorest, in Brazil, was nearly five times as high as that of the richest. In other words, the largest wage raises during the period in the country were granted to the most impoverished workers.

Ipea's president ascribed to the real minimum wage readjustment policy and to income transfer policies, such as the federal government's Bolsa Famí­lia (Family Voucher) program, the fact that the most impoverished obtained greater gains in income than the remaining workers.

On the other hand, the contribution of workers to the Gross Domestic Product (GDP) remains practically stable.

ABr/Anba

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  • Show Comments (11)

  • MRB

    HOW IGNORANT SOMe PEOPLE ARE…
    C. Ch.,
    I think you’re a joke! You know I’m Brazilian, I’ve lived in the US, now I live in this blessed land called Brazil, and I don’t like the lifestyle you have in the US. You are too consumist and vain.
    I just happened to take a look at some of the opinions people have here and I thought you sounded quite stupid.
    Tell me something wise guy:
    Would you say the US is a democratic country?
    I mean there are very few american people who can tell me why the US has been attacked recently not only with bombs and other physical threats but also in the international press. The public opinion in the US is completely unaware of the reasons for so much hate against the country. The international media says one thing and theUS media creates its own reality to be broadcasted and believed by 99% of their public. The fact is that the US cause a lot of damage, suffering and death throughout the world.
    You have to know that the US companies located in poor countries transfer a huge amount of resources by exploiting the third world workmanship and raw materials and impoverishing billions of people worldwide. Billions of people around the world starve to death because of the US. I think these companies should stop corrupting 3rd world governments, financing campaigns, controlling the media and trying to keep people unaware of their own being exploited. And you should stop being so many preconceived ideas.

  • Manuel Rosa Bueno

    Nothing against stupidity, not everybody is gifted, but I can’t be in favor of those whose mentality is so servile that even their own identity is changed to comply with their dream of being born in a first world country so they didn’t have to fight against the their own guilt, the guilt of fighting against those who dedicate their lives to diminishing the suffering of the less fortunate, of the poor. VIVA LULA!

  • João da Silva

    [quote]I can see some of these corrupted Brazilians against Lula’s government around here.[/quote]

    Could you please list those “corrupted Brasilians” against LulaÀ‚´s government “around here”?

  • Manuel Rosa Bueno

    NO POSSIBLE COMPARISON
    Are you trying to compare social programs in rich countries to those in poor ones? I don’t believe it! You have to know that the richest only have this excellent programs due to the fact that their companies located in poor countries transfer a huge amount of resources by exploiting the third world workmanship and raw materials and empoverishing billions of people worldwide. And don’t ask me why Brazilians don’t do anything about it. I think these rich countries’ companies should stop corrupting 3rd world governments, financing campaigns, controlling the media and trying to keep people unaware of their own being exploited.
    I can see some of these corrupted Brazilians against Lula’s government around here. What a shame.

  • ch.c.

    To Joao and your Minimum Wage !
    More than funny and tricky….there is not, knowing that most of your bureaucracy workers salaries are based on a….MULTIPLE OF THE MINIMUM WAGES !

    Meaning that every time you increase the Minimum Wages……the bureaucracy workers get the SAME increase…..MULTIPLIED………… by the MULTIPLICATOR FACTOR !!!!!!!!

    A simple trick to NOT reduce the income inequalities !

    In Brazil poors will only get the smell, middle income people get the bones. Meat is only for the 5 % minority elite !

    Enjoy your Tropical Mud !

    Ohhhh Joao……with your copy and paste……why dont you copy and paste the darker reality of the first part of the article I sent :

    “Le BrÀƒ©sil reste l’un des pays les plus inÀƒ©galitaires malgrÀƒ© Lula.
    Le BrÀƒ©sil est toujours l’un des pays les plus inÀƒ©galitaires au monde, selon des donnÀƒ©es officielles. Et ce malgrÀƒ© l’ancien syndicaliste Luiz Inacio Lula da Silva, qui gouverne le pays depuis 2003.”

    And to the junkie JON :
    Better to be in the rankings of the 10 world best that my country is ….than the worst 10….than Brazil is !

    Are you RED OR BLUE FACED…..BY NOW ???????

  • ch.c.

    “Canada is ahead of Switzerland”
    But we are still within the world first TEN !
    And we are more frequently ahead of those countries in many other rankings.

    Believe it or not but we have our own Bolsa Familia called….Family allocations. .
    Parents rich or poors receive a monthly payment for every child they have.
    At birth date, parents receive a US$ 1000.- one time allocation.
    Then Swiss francs 200.- (US$ 200.-) ….PER MONTH…PER CHILD….until children are 15 years old. And afterward Swiss Francs 220.- until children are 18 years old.

    While in Brazil the Bolsa Familia is NOT for every child.
    And the amount is Brl 26.- per child but capped at Brl 101.- (including the recent increase)….PER FAMILY ! Meaning Brl 101.- per month even if one has 5, 6 or 7 children.
    Worse yet :
    As you may know or not, in Brazil there are millions and millions of children without birth certificates. Sadly those are NOT entitled to the Bolsa Familia.
    A simple trick from Bin the Crook…to reduce the number of entitled children !
    Nothing to be proud about !

  • jon

    Ch C,

    Impressive, but oh no! ! not number one and Canada is ahead of you?:

    Gini index

    HDI Rank Country 1
    1 Iceland ..
    2 Norway 25.8
    3 Australia 35.2
    4 Canada 32.6
    5 Ireland 34.3
    6 Sweden 25.0
    7 Switzerland 33.7
    8 Japan 24.9
    9 Netherlands 30.9
    10 France 32.7

  • ch.c.

    oops
    typing mistake….

    NOOOO need for free software…to figure that makes US$ 4.- PER MONTH…for a family of 4 !!!!!!
    Or Us$ 1.- per family member !

  • ch.c.

    !!!!!!!!!!
    True !
    That makes additional Brl 6,30 per month….PER FAMILY…..MAXIMUM !

    NOOOO need for free software…to figure that makes US$ 1.- PER MONTH…for a family of 4 !!!!!!

    Viva Robin the Crook !

    Be proud…of HIM !

  • João da Silva

    [quote]Le prÀƒ©sident de l’IPEA, Marcio Pochman, a attribuÀƒ© cette amÀƒ©lioration ÀƒÂ  la hausse du salaire minimum et aux programmes sociaux conduits par le gouvernement brÀƒ©silien, ainsi qu’ÀƒÂ  la pÀƒ©riode actuelle de croissance Àƒ©conomique.”[/quote]

    😉 😉 😉 😉 😉 😉 🙂 🙂

    Bolsa familia gets an 8% increase!!!!!!!!!! Thanks to the good “programmes sociaux conduits par le gouvernement brÀƒ©silien”

    What a joke!!!!

  • ch.c.

    what a joke….what a joke !
    1) No detail published from the IPEA report ! On purpose…of course ! Guess why
    2) The report refers only to the 6 metroplitan cities……but representing only 25 % of the population and 37 % of the GDP…as per IPEA stated report. On purpose….of course ! Outside these cities the disparity is WORSE not better.

    Hmmmmmm….I suppose I am the idiot in your view, not knowing what I am talking about !
    May be not so !
    Contrary to the ones who want to hide as usual, I have some details about the IPEA report !

    Facts :
    – the 10 % of citizens with the highest salaries earn 23,5 times more than the poorest 10 %
    – that ranks Brazil one of the ten WORST…..ON EARTH !!!!

    And guess what : Bin Lula and his 4000 thieves are proud of the reduction in social inequality…by being ranked in the World Bottom 10 !!!!

    For you to swallow the hard reality :
    ” 23.06.2008
    Le BrÀƒ©sil reste l’un des pays les plus inÀƒ©galitaires malgrÀƒ© Lula.

    Le BrÀƒ©sil est toujours l’un des pays les plus inÀƒ©galitaires au monde, selon des donnÀƒ©es officielles. Et ce malgrÀƒ© l’ancien syndicaliste Luiz Inacio Lula da Silva, qui gouverne le pays depuis 2003.
    PublicitÀƒ©
    Une Àƒ©tude de l’Institut de recherches Àƒ©conomiques (IPEA) indique que les 10% de BrÀƒ©siliens aux salaires les plus Àƒ©levÀƒ©s gagnaient 23,5 fois plus que les 10% des plus pauvres. Cela fait du BrÀƒ©sil un des dix pays au monde oÀƒ¹ les inÀƒ©galitÀƒ©s sont les plus fortes.

    Sous le gouvernement Lula, les inÀƒ©galitÀƒ©s entre riches et pauvres ont toutefois baissÀƒ© de 7% dans les six principales zones urbaines du pays (Sao Paulo, Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife et Salvador), qui reprÀƒ©sentent 37% du Produit intÀƒ©rieur brut (PIB) et 25% de la population brÀƒ©silienne.

    Le prÀƒ©sident de l’IPEA, Marcio Pochman, a attribuÀƒ© cette amÀƒ©lioration ÀƒÂ  la hausse du salaire minimum et aux programmes sociaux conduits par le gouvernement brÀƒ©silien, ainsi qu’ÀƒÂ  la pÀƒ©riode actuelle de croissance Àƒ©conomique.”

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