Sample Essay on Effects of Income Inequality in Brazil

Effects of Income Inequality in Brazil

Despite the fact that Brazil has been recording an impressive economic growth, the country is still dealing with income inequality. In 2010, the country had a gross domestic product of 7.5% and in the last couple of decades income inequality has risen in the country.

The GINI coefficient in the country has decreased slowly from 0.596 in 2001 to 0.543 in 2009 and though this is the case, there is still a major problem in regard to income disparity. The richest people in the country who make up 1% of the population enjoy the highest income level which makes up 13% of the entire household income.

The percentage is the same as that of the poorest 50% which is roughly about eighty million Brazilians. Because of images (1)this inequality, the poverty levels in the county are inconsistent with the country’s economy. People who have an income of USD 6.1 per day in Brazil are classified as middle class earners and many of them are likely to fall into poverty once more if the issue of income inequality is not effectively addressed.

What is more, most of the Brazilians that fall in the middle class category are also known to have high debt service costs which in turn make them vulnerable financially. Of 200 million people in Brazil (as of 2013) 40 billion and roughly 100 million are reported to live in poor standards according to a report released by the World Bank. This is despite the fact that the country has kept the inflation down for close to two decades and there has been steady economic growth as well as stabilization of the currency.

The public service has failed to keep up with its income provision and public services in the country are provided by municipalities and states. The health sector has especially been impacted by income inequality despite the fact it was identified in 1998 as a fundamental right. The health system in the country suffers from underfunding while health spending remains low.

There is also a shortage of medical stuff which in turn results to insufficient access to the most basic health services. Education is another sector affected by income inequality when measured by international standards. There is limit to social mobility and the inequality is attributed to pre-determined circumstances of the people such as gender, family, background and race.

Until income inequality is effectively addressed in Brazil, the people will continue to suffer and the numbers of those living below the poverty line will continue to rise as well.

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