Developing countries like Brazil and India are getting divided into high quality formal and informal areas marked by insecurity and poverty. Due to urbanization in cities, there is a geographical concentration of high income groups in some places and poverty and less income groups in others. Due to uneven geographical distribution of socio economic resources health inequalities also persist resulting in poor people having poorer health. Greater inequality is therefore correlated with health of poorer population. GINI coefficient The Gini coefficient, a measure of wealth distribution shows us the trend of inequality in Brazil in years 2001 to 2009. the Gini has fallen for past six years and is comparatively very low in 2009. It has decreased the gap between rich and poor by redistribution of income and declining social inequality. The decrease in inequality has led to improvement in the life of low income people and also the working population has increased due to which better quality life experienced by most Brazilians. To study the inequality in India, best way is to see the Gini coefficient. In the graph above, the Gini has been declining from 0.320 to 0.305 between 1982 to1995. This show that inequality was getting better but following the mid 1990’s during the reform period, it raised, showing significant increase in inequality in India from 0.305 to 0.325. Income inequality has increased in rural and urban areas. Over the period, the Gini index has measured that inequality was greater in India than in Brazil. Inequality in Brazil fell while in India it showed a rise after 1995. Gender and race discrimination are major causes which have led to income inequality in these countries. India has caste system, which is s... ... middle of paper ... ...n poverty and inequality in Brazil. These programs have also helped reduce child labour and child mal nutrition. As a result, Brazil has overcome extreme poverty and it has helped achieve the first target of the Milenium Development Goals ten years before. Brazil has a high concentration of income in the top 20% quartile in 1990s and 2000s. It is however the only country to show decrease in income in top quartile in 2000s. 75 to 80% of total income is owned by the top quartile. And in the 1990s, the bottom 20% had almost no share in the income, whereas India had some amount of income share to its lowest quantile. Inequality in India is there, but the middle quintile has a significant share of the total income. The rural urban migration, returns to education, unemployment and deterioration of labour market increases inequality and the gaps between rich and poor.
There is a high level of inequality of power and wealth within the Indian society indicating a high level of power distance. The wealth of India is very unevenly distributed; only 3% of the population in 2011 fell into the middle-income segment. The upper-middle income segment is about 1% of the population and the
Brazil is a vast country in South America that has experienced extreme wealth and income disparities since its independence in 1822. The uneven income distribution, combined with several other factors, is what accounts for millions of civilians living in impoverished conditions. The Northeast is the country’s most afflicted region, with an estimated 58% of the population living in poverty and earing less than $2 a day. The systemic inequality as well as lack of development and modernization has generated chronic poverty that has had detrimental effects on society in northeast and ultimately weakens Brazil.
Income inequality in the United States has increased and decreased throughout history, but in the recent years, the widening gap has become a serious issue. Income inequality is usually measured by Gini coefficient. According to this method coefficient varies between 0 and 100; while 0 represents complete equality (income is distributed equally among all the population of the country), 100 represents complete inequality (only one person receives all the country’s income, while the rest of the population receives nothing). According to the Census of Bureau, the official Gini coefficient in the U.S. was 46.9 in 2010. This is way higher than the all-time low coefficient of 38.6 set in 1968 (qtd. in Babones).
Brazil is far from being a paradise on Earth. There is still a lot to be done. But from the eyes of an expat, I can see clearer the results of continuous transformations in Brazil than my fellow compatriots who are living and experiencing every small change over time. I have seen more changes in education and health happening lately than during my entire lifetime. I grew up hearing from several sources that Brazil would some day be the "country of the future." I thought that I would not live to see this day. Today, I can say that we are closer to the promised "future" than we ever were. Brazil is not the same as it was ten years ago. This country can finally be proud to honor the words written on its flag - "Order and Progress."
Income inequality is when income is unevenly distributed in a country. This inequality has reached staggering heights across the world. Even in what we consider developed countries this disparity is only increasing. The causes for income equality can range anywhere from immigration to the policies and politics of a country. However, some critics of income inequality will argue that it will always be present and is necessary to stimulate growth. Nonetheless, the problem is not only that the gap between the poor and the rich is widening but that income inequality is causing devastating market and government failures.
More than $3billion people in the world which is nearly half of the world’s population are living on less than $2.50 a day and more than $1.3 billion live in extreme poverty which is less than$1.25 a day. (Unicef 2013). One third of deaths a year are cause by poverty. An estimate of 600 million children live in absolute poverty, every year more than 10 million innocent children die of hunger and PREVENTABLE diseases, such as diaorreah, pneumonia and malaria 19 million kids worldwide remain unvaccinated, even a simple net would prevent malaria. During 2011, 165 million kids under the age of 5 were stunted( reduced rate of growth and development) due to chronic malnutrition 870 million people worldwide do not have enough to eat. More than half a million women die in pregnancy and child birth every year… one death a minute. Why do we have cases of poverty in 2014? “Overcoming poverty is not a task of charity, it’s an act of justice. Like slavery and apartheid, poverty is not natural. It is man made an it can be overcome and eradicated by the actions of human beings”. Mandela (2005). It’s heart breaking that in this day and age there are children dying of hunger, and easily preventable diseases. Poverty reduction is one of the most dominant themes in current scholarship, policy formation and international discussion on economic development. A sign of it importance is shown by the fact that the very first target of the millennium development goals (MDG) is in fact to reduce the people living under $1 a day by half by 2015. Relative to this dissertation the role of economic growth in in poverty reduction is of high importance. Substantial and lasting reductions, if not complete eradication of poverty has been and will continue to b...
Inequality can also be measured by the Gini coefficient, which is a numerical value for comparing inequality, ranging from zero for perfect equality to one for perfect inequality. Most governments aim to limit the level of inequality in income and wealth, however there are some economic benefits from income and wealth inequality. These include that they provide an incentive to undertake investment, increase productivity and encourage individuals to improve their skills and be more efficient. The costs associated with inequality include utility, increased poverty and a need for social welfare, which leads to lower standards of living, increased rates of crime and suicides and other social problems. The largest share of income is distributed in the form of wages and salaries, but other sources include transfer payments, superannuation, rent, interests and dividends, and profit.
Brazil, the world’s seventh largest economy by nominal GDP, the sixth largest by purchasing power parity (The World Bank. 2016.), one of the fastest-growing major economies in the world, with an average annual GDP growth rate of over 5% (Blankfeld. 2010.). On paper, evaluating based on GDP, Brazil has acquired status that of developed country, surpassing United Kingdom, Sweden, most European
It would be correct to say that global inequality and poverty is a serious issue for different nations. There have been cases that rich is becoming more rich and poor poorer. In the presentation, group has been able to make certain relevant questions about global inequality and poverty. It would be an alarming fact to state that half percent of the population controls more than 33 percent of world trade. The group has raised a pertinent question of relationship between inequality and poverty.
Poverty and income inequality are issues affecting a majority of people around the different parts of the globe. These issues exist and are increasingly becoming a major concern in both developing and developed countries. The purpose of this paper is to show some of the causes and effects of income inequality and poverty in developing and developed countries. Income inequality varies especially by region, education and social standing and hence increasingly widening for so many years. In addition, a large group of people in the world have the inability to access high quality education, shelter, food, clothing and basic medicine. Business activities are an important factor in the economy and have the ability to aid in eradicating poverty through
Poverty is a dominant aspect to their social issues. Visitors of the country say that the poverty issue is quite visible. Brazil has slums in their metropolitan area, also known as “favelas”. There are also more remote areas with financially lacking families. However Brazil is working towards improving this with government funding and community programs to help aid the less fortunate, and to encourage young children to gain access to education, as it would aid in future income capabilities with a higher education. Crime can also be a major issue. Common forms include mugging, robbing, gang violence and kidnapping. Many citizens have issues with Brazilians form on law enforcement, which deters them away fro reporting things to the police. The government the created the National Public Security force to handle emergencies and crime instead of the
Brazil’s distribution of income is one of the most unequal and like many other countries, serves the interest of the rich. The richest 10 percent possess 50 percent of the income. Men earn 29.2 percent more than woman in the same employment field. Black Brazilian women receive 40 percent lower salaries than white woman and the black population is more likely to be poor overall (Blaney, 2004). Between 1960 and 1990, the share of national income of the poorest half of the population fell from 18 percent to 12percent, and the richest 20 percent increased from 54 percent to 65percent. The nine states in the Northeast have the lowest socioeconomic indicators in the country (PAHO, 1999). Adequate housing, water sanitation, education and daycare centers for women are some of the areas affected by the Brazil’s social inequality.
Income inequality continues to increase in today’s world, especially in the United States. Income inequality means the unequal distribution between individuals’ assets, wealth, or income. In the Twilight of the Elites, Christopher Hayes, a liberal journalist, states the inequality gap between the rich and the poor are increasing widening, and there need to have things done - tax the rich, provide better education - in order to shortening the inequality gap. America is a meritocratic country, which means that everybody has equal opportunity to be successful regardless of their class privileges or wealth. However, equality of opportunity does not equal equality of outcomes. People are having more opportunities to find a better job, but their incomes are a lot less compared to the top ten percent rich people. In this way, the poor people will never climb up the ladder to high status and become millionaires. Therefore, the government needs to increase all the tax rates on rich people in order to reduce income inequality.
Income inequality, poverty and discrimination are issues that the United States is currently facing. The United States is among one of the countries that have the highest average household income, however this does not accurately represent each household. Data shows that there is significantly less income inequality over a longer period of time rather than in a single year because income mobility is more substantial over time. The more period of time that is considered for an individual, the more equal the distribution of income becomes. Government taxes and transfer significantly reduce income inequality by redistributing income from higher income groups to lower income groups.
Education is one of the most important factors in improving economic development in countries. Education allows countries to improve human capital which causes an increase in the rate of return to countries GDP (Kruss). Over the years, Brazil has lagged behind other countries in terms of education, causing the country to not be one the same level of productivity as other high-developing countries. The backwardness of education in Brazil stems from social and political differences throughout Brazil’s history and the large poverty cycle throughout the country.