Brazil

How did the economic policies of the 1990’s affect the How did the economic policies of the 1990’s affect the social conditions in Brazil?social conditions in Brazil?

Assignment 17 By Virginia S. Fleming

From Isolation to Global IntegrationFrom Isolation to Global Integration

Brazil’s reentrance into international markets with Fernando Collor at the helm brought disastrous policies and instability to the country. (1990 – 1992)

His greed and corruption is what led to his impeachment and gave Brazil a bad reputation.

Crisis of ConfidenceCrisis of Confidence

“Brazil's bad reputation led to the idea that the country's social conditions are worsening, for reasons that vary, for different commentators, from the adoption of neoliberal and market-oriented policies by the Brazilian government to the lack of a true commitment to the values of rationalization, privatization, and international competitiveness.” 4

The Next President’s Internal ResponseThe Next President’s Internal Response

What Fernando Henrique Cardos did for Brazil:

Cut off the valves to irresponsible spending that fueled inflation and implemented new economic policies:

- Closed state banks

- Controlled public debt

- Privatized inefficient and wasteful public companies

- New laws of fiscal responsibility for governments Brought balance, control, and transparency in the use

of public services Cleaned up Brazil’s bad reputation Increased international presence

Affects of those policies on BrazilAffects of those policies on Brazil

“The economy opened up, and waves of globalization destroyed the country’s industry, while the shrinking of the public sector led to a fall in the provision of public services, increasing poverty, social inequality, and misery.” 2

Really?…

SOME SAY… “The crisis of the social democratic agenda in Brazil is that it reached its peak when most of

the population was still far from benefiting from it and when productivity was still much lower than that of the countries that were its model. The expectation that the benefits acquired by some will eventually be extended to all is becoming very difficult to sustain.” 1

Reality CheckReality Check

I discovered that

“While some conditions have worsened in recent years, especially those related to the quality of life in large metropolitan areas, most of the basic social indicators, such as education, life expectancy, housing conditions, and sanitation, have shown steady increase and improvement.” 4

I wondered if

the current social predicaments are a consequence of the 1990’s economic policies of international competitiveness…

The Social TransitionThe Social Transition

From Rural to Urban

Access to jobs

Access to education

Pensions for the elderly

“The number of people able to change their social status in Brazil is one of the highest in the world” 5

Social Well BeingSocial Well Being

Substantial gains in several indicators of social well-being took place in the 1990’s.

“Stabilization of the currency in 1994, by itself, meant a very significant increase in the standards of living of the poorest segments, and a reduction in income inequality.” 3

Social conditions in Brazil have been improving in spite of slow economic growth and are better now than in the past.

Social SpendingSocial Spending(Regressive/Inefficient)(Regressive/Inefficient)

Social spending in Brazil is at 20% of GNP, with 13% going to lower-income segments – BUT WHERE?

Education = YES Civil Servants = YES Overlapping Social Programs = YESX Pensions = NOX Unemployment = NOX Higher Education = NOX Public Health = NO

Proposition: Perhaps increasing

the public expenditure could lead

to economic progress?

Raise the minimum wage

Extend social security benefits

Invest more on public services

Develop industrial policies for the

production of goods for the popular

markets

Provide cheap loans for housing

construction

QuestionsQuestions

1. Social spending in Brazil is ___________a. regressive and inefficientb. well focusedc. requires prompt attentiond. both a and c

2. The Cardoso government created a program of community work and solidarity called ________.a. renda cidadab. bolsa-escolac. comunidade solidariad. comunidade-escola

3. What percent of families report a per capita income of around 40-50 cents per day?a. 10%b. 15%c. 25%d. 50%

Short Answer Questions:• Why do Brazilians like to think of their country as a relatively isolated entity?• During the Cardoso period, what efforts did he make to stabilize the Brazilian economy?

ReferencesReferences Brazil, The Social Agenda, Simon Schwatrzman, Daedalus, Spg. 2000

http://www.schwartzman.org.br/simon/daedalus.htm Getting Globalization Right, The Dilemmas of Inequality, by Joseph

S. Tulchin and Gary Bland, 2005(pg. 134) Getting Globalization Right, The Dilemmas of Inequality, by Joseph

S. Tulchin and Gary Bland, 2005 (pg. 135) Brazil, The Social Agenda, Simon Schwatrzman, Daedalus, Spg.

2000 http://www.schwartzman.org.br/simon/daedalus.htm