Brazil’s success in reducing poverty and income inequality has been widely reported in recent years.
The World Bank has been tracking the world's progress against poverty since the late eighties, but the release of 2008 data was the first time in which all regions of the developing world showed a decline in the number of people living below poverty lines!
South Asia has been one of the world’s success stories in terms of rapid economic growth. With India leading the way, South Asia’s poverty rate has fallen from 60 percent in 1981 to 40 percent in 2005. However, during the same period, the number of poor people—those living on less than $1.25 per day—actually increased from 549 million to 595 million over the same period.
The labor market has the unenviable task of not only absorbing the additional workers entering the labor force each year (as a result of population growth) but also dealing with the unemployed workers as economies. The Keynesian view of unemployment is due to lack of aggregate demand while the neoclassical view is that when prices and wages adjust unemployment will come down significantly. In more and more developing countries, long-term unemployment (workers unemployed for over six months) is spilling over into structural unemployment, which the ILO in its several publications underscores as the mismatch between the skills of the unemployed and the demand for skills in the labor markets.
This structural unemployment may arise due to automation in the work place (e.g. need for higher and higher computer skills), rigidities in the labor market, such as high costs of training or in the case of US de-industrialization as manufacturing jobs are continuously lost to
The World Bank estimates that there are more than 1.4 billion people in the world who live below the poverty line of $1.25 per day. It will be interesting to see what happens to children born in poverty: to follow them from womb to tomb, the entire life cycle. We now have several countries with detailed information in the form of living standard measurement and other surveys. There is a lot of country-by-country variation but the trends are unmistakable.
By Dr. Jayanta Roy
Innovation is crucial in long-term economic growth, even more so in the aftermath of the financial and economic crisis. Making innovation-driven growth happen requires action in a wide range of policy areas, from education and science and technology, to product and labor markets and trade. The OECD and the World Bank are joining forces to work more closely on innovation, particularly insofar as this issue is a crucial factor in the success of development policy, notably in middle-income economies.
(Thanks and credits for sharing this information go to the Brazilian Secretariat of Social Communication - SECOM)
Social development and progress continue to stay strong in Brazil:
- Brazil tops global ranking in fight against hunger: In a recent report published by anti-poverty NGO ActionAid, Brazil ranks first among developing countries for its progress in the fight against hunger.
- Brazil’s “Bolsa Familia” income transfer program raises literacy rates: Newly released data reveals that half a million beneficiaries of Brazil’s cash transfer program became literate in 2006 and 2007, and the number of people registered for public literacy programs increased by 12 percent.
With one of the world’s largest populations, Brazil’s government has invested heavily in programs to eliminate poverty and hunger and improve access to services and opportunities in low-income communities. These efforts and their success to date earned Brazil’s President Lula UNESCO’s prestigious Félix Houphouët-Boigny Peace Prize in July, and Brazil’s Minister of Social Development the World Future Council’s Future Policy Award just a few weeks ago.
Detailed information can be found below.