Cercado, Faith Trisha T.

BABA3A ECON501_D
1. Based on the case given, make a two-column table listing down the
development strengths of Brazil on the left column, and the development weaknesses of
Brazil on the right column.

Development Strengths Development Weaknesses

• Referred to by the media and financial analysts as
one of the four most influential countries
• Policies were enacted for equitable and sustained
growth, ranging from active poverty reduction
programs to relatively orthodox monetary policies
• Had export policy stressing incentives for
manufacturing exports, as well as protections for
domestic industry
• Its percentage share of manufactured exports in total
exports grew dramatically
• Democratization proved durable
• Actively working to upgrade the quality and
competitiveness of Brazilian industry.
• At the cutting edge of agricultural research and
extension in commercially successful export crops
• Officially reported adult literacy rate has now risen to
90%
• A free press, strengthened basic rights, and a very
active but peaceful political competition
• Poverty and inequality started to fall
• Incomes continued to stagnate
• Prolonged status as a highly indebted country
• Remains one of the countries with the highest levels
of inequality in the world.
• Erratic economic growth (wide swings – the level of
economic instability is high)
• Continued problems with infrastructure
• High and growing taxes may have also slowed
formal-sector employment growth
• High incidence of child labor for its income level
• Corruption and Waste
• Quality of primary schools in poor areas remains low
• Highly concentrated distribution of income, worsened
by inequitable social spending
• Slower improvement in health, education, and
community development
• Physical security
• Inequality in income and assets
• Unequal land distribution
• Ignorance of politicians on problems that arise from
destruction of forests
• Rights of indigenous peoples were flagrantly violated
• Problems in the workforce concerning social inclusion

2. How does the Brazil case illustrate the issues and challenges of authentic
development based on our lecture and activities so far? Discuss.
Given the impressive figures on their GDP growth, it is no doubt why analysts are having
high hopes that Brazil will continue to reach new heights and be a global economic player. But
based on our lecture and activities, the increasing numbers in national output alone are not
sufficient to say that there is authentic development. Despite this growth, the gap between the
rich and the poor have continually widened. Authentic Development considers several factors
which makes its measurement not as precise as that of GDPs. Other measures of authentic
development such as level of literacy and education standards, healthcare, land and housing,
environmental standards, and many more, are still moving in a slow rate, if not stagnant. The
issues and challenges then arise knowing that there aren’t any actual improvements in living
standards. The common assumption is that growth in GDP would enable authentic development,
but then proceeds from this could be retained by the small rich elite or go to the pockets of
corrupt politicians. Moreover, government social spending on health, education, pensions,
unemployment benefits, and other transfers are going to the well-off, frequently to those in the
top 20% of income distribution – increasing inequality in Brazil, “growth without development”.