Student: Symon Angelo C.
Albino COMA3B
Course Code: ECON501_C
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
Convergence of political ideas?
Active poverty reduction programs
Monetary policies
Commodity exports to China (soybeans to
ore)
Export Policy Incentives
Active Industrial, Technological and Foreign
Trade Policy (PITCE) (upgrading the quality
and competitiveness of Brazilian industry.)
Cutting edge of agricultural research and in
commercially successful export crops such as
citrus and soybeans.
Expansion of software industry
free press
strengthened basic rights
active but peaceful political competition
Development Weaknesses
Prevalent inequalities and Unmet potential
Tenuous social progress
Growth remains vulnerable to world
commodity prices
high economic
inequality
Extreme high economic inequalities
Extreme social divisions
Ongoing Debt Crisis
Years of stagnant income
Extreme high inflation
Political Division
High crime
Income and Growth
Erratic growth
Increase in commodity prices
Prolonged status as high indebted country
Continued problems with infrastructure
High and growing taxes may have also
slowed formal-sector employment growth.
labor force now works in the informal sector,
where taxes may be avoided (and labor rights
and regulation circumvented).
Brazil has not absorbed technology to the
degree that East Asian countries have.
Social Indicators
Brazil’s human development statistics
compare unfavorably with many other
middle-income countries
high incidence of child
labor
Low Literacy rate compared to similar

There has been progress; a World Bank study
found that Brazil’s average per capita income
grew by 220% in the high-growth years from
1960 to 1980, with a 34% decline in the share
of the poor in the population.
poverty is now falling, and the recent Bolsa
Familia (family stipend) government program
has received high marks for addressing
poverty through its “conditional cash
transfers” of resources to poor families,
provided that they keep children vaccinated
and in school
2. How does the Brazil case illustrate the issues and challenges of authentic development
based on our lecture and activities so far? Discuss.
According to the main reference textbook. Growth of a country does not necessarily mean that it
is developing. A country may have an increase in Real Gross Domestic Product (GDP) but it can
income-level countries
unequal distribution of social spending
corruption and waste limit the effectiveness of
government expenditures.
highly concentrated distribution of income,
worsened by inequitable social spending.
a slower improvement in health, education,
and community development
Poverty
Poverty has been high in Brazil for an upper
middle-income country.
physical security remains a pressing problem
in Brazil, with violent gangs having extensive
sway.
Inequality
Brazil’s inequality in income (as well
as in land and other assets) has ranked among
the worst in the world.
inequality not only produces social strains but
can also ultimately retard growth (high
inequality is the reason for the high level
of extreme poverty and the very slow rate of
poverty reduction.)
Land Reform
Land reform has been repeatedly blocked in
Brazil by the political power of large
plantation owners
Sustainability Development
And most of the poor in Brazil are black or
mulatto. Although racial discrimination is a
crime in Brazil, no one has ever been sent to
jail for it.
have prevalent social justice problems such as racism, gap between the rich and poor is
increased, unequal income and educational opportunity among those that lived in the favela. As
in this case Brazil, it was stated in the case problem that those enumerated in the preceding
sentence is predominant. From the country’s income level, it can be said that appropriate social
development is not achieved since the former is high and the latter is low. This case illustrates
situations and reasons and proves the premise that growth does not mean development.