Uploaded by Merrycris Cinco

Case Study 1- econ

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Name: Cinco, Merrycris T.
Course and Year: BSMA-3
CASE STUDY: PROGRESS IN THE STRUGGLE FOR MORE
MEANINGFUL DEVELOPMENT: BRAZIL
II. Facts of the Case
Growth is generally necessary, though not sufficient, for achieving development. In 2005,
Brazil’s per capita income was $3,460. Using purchasing power parity, its average income was
still only $8,2302, about one-fifth of that of the United States but almost five times that of Haiti
(World Bank Data).
Despite of some growth and increase, according to a Brazilian government research
institute cited by the UNDP, 15% of Brazilians have incomes of less than $1 a day. For decades
Brazil’s inequality in income (as well as in land and other assets) has ranked among the worst in
the world. High inequality not only produces social strains but can also ultimately retard growth.
Land is very unequally distributed in Brazil, and there is both an efficiency and asocial equity case
for land reform. Land reform has been repeatedly blocked in Brazil by the political power of large
plantation owners
II. Problem of the Case
1. How to lessen the extremely high economic inequality and social division that have
been undermining its growth prospects.
To expand the statement above, high inequality does not only produce social strains
but can also ultimately decelerate growth. For decades Brazil’s inequality in income as
well as in land and other assets has been ranked among the worst in the world. Inclusion
of this inequality is the eminent of racial discrimination wherein most of the millions
of Brazilians living the worst slums are black. In relation to that, the unequal
distribution of social spending is no doubt a major factor in maintaining inequality and
thus poverty in which the bulk of the benefits go to the middle classes and the rich.
III. Solutions to the Problem
Solution 1. To continue its recent efforts to make social inclusion, human development,
and environmental sustainability, top priorities if it is to resume and maintain rapid economic
growth and as to achieve true multidimensional development.
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Solution 2. To focus on the mechanisms (most effective strategies) especially in
strengthening the Bosala Family Program since it has been a successful initiative that encouraged
education and improved standard of leaving of people.
IV. Recommendation
The Ministry of Planning, Budget, and Management should coordinate the actions and
integrative mechanisms that should be set up for the purpose of institutionalizing spaces for the
exchange of experiences and for all the agents involved with the different programs; inter-sectoral
working groups should be set up and mechanisms should be established to encourage or impose
the articulated execution of each action.
V. Conclusion
There are still a lot of areas for improvements such as areas including racism,
inequality, and poverty reduction. Brazil will have to make social inclusion and human
development as well as environmental sustainability, top priorities if it is to resume rapid growth
and let alone achieve true multidimensional development. So, to conclude, Brazil has experienced
some economic growth without as much social development rather than the more blanketing
growth development.
The first step in developing a nation, in my view, is to make sure to have an honest and
capable government that is committed to the development of the country and to the welfare of all
people in the country. Truthfully, it is the most difficult step to start with. Once we have a good
and capable government, it is not so difficult to figure out or implement all steps necessary to make
the country developed and prosper. On the other hand, having a corrupt, incapable, but also foolish
government means losing everything, no matter how abundance resource your country has, or how
much foreign assistance and aids your country receives. Despite the great diversity of developing
nations, most share common problems that define their underdevelopment. The nature and
character of their future development should consequently be a major concern of all nations
irrespective of political, ideological, or economic orientation.
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