31. The Battle of Ideas in the Question for Wealth and Prosperity in Brazil: Policy Proposals of a Right-Wing Government
- Author:
- Monica Arruda De Almeida
- Publication Date:
- 05-2019
- Content Type:
- Special Report
- Institution:
- Georgetown Journal of International Affairs
- Abstract:
- Brazil’s income inequality is among the world’s worst. The country’s unemployment rate is currently 13 percent, compared to 4.6 percent in 2012, and the number of Brazilians in poverty or extreme poverty is now close to 30 percent, a far cry from 2014 when that number was less than 10 percent of the population. Brazil has one of the highest tax rates in Latin America—with tax revenue equal to 33 percent of GDP, against the regional average of 20 percent—but it is also notorious for its poor performance with respect to the ease of paying taxes and opening a business: the country ranks 184 and 140, respectively, out of 190 countries in the World Bank’s 2019 Doing Business Report. It is surprising, therefore, that Jair Bolsonaro, a conservative politician from the Social Liberal Party (PSL), was elected to the country’s highest office without meaningfully addressing his administration’s plans to solve the nation’s social injustices and other economic issues. Instead, Bolsonaro campaigned mostly on strengthening public security and fighting corruption, the two areas on which the former army captain built his reputation during his almost thirty years as a congressman. During the campaign, Bolsonaro recruited Paulo Guedes, a Chicago School-trained economist to be his Minister of the Economy. Guedes was tasked with building a “dream team” of experts that would design a plan to further liberalize the economy and turn Brazil into a much friendlier place to conduct business.
- Topic:
- Corruption, Government, Poverty, Economy, Social Policy, and Economic Inequality
- Political Geography:
- Brazil and South America