Pre-Mid Test 1

Submitted to: Ma’am Zubda Zia

Submitted by: Roshaane Gul

Course : Development Economics

Major: Economics

Semester 5

Date: September 15, 2021

What critical issues are raised from the examination of development problems
and prospects facing Brazil?
Analyzing the case of Brazil, we can say that Brazil is experiencing progress in terms of
economic growth but lacking in any sort of social progress and that’s why Brazil can be
regarded as country experiencing “Growth without development”. Here, some critical
issues are discussed which Brazil is facing in the journey of development.
Firstly, the lacking in social indicators such as low life expectancy, high rate of
child labor, slower improvement in health, education and community development  that
arises when considering the country's development challenges and prospects. Despite its
development, the country features a higher percentage of its population in poverty
than could be expected for a higher middle-income country. According to World Bank study,
from 1960 to 1980, although there was 34% decline in the poverty in the population but as
compare to Indonesia where there is 42% decline in poverty, the decline rate of Brazil is very
low. This progress in poverty was gradually lost in the 1980s and 1990s. In 2009, almost 10.8%
of population suffers from poverty in 2009 and 6.1% lived in extreme poverty in 2013. The
condition of Brazil was even worse than some low-income countries such as Sri Lanka. This
situation was getting worsen and 15% of people was living with incomes of less than $1 a day.
The second critical issue is the inequality in income, land and other assets and unequal
distribution of social spending. This high level of inequality not only causes social strains but
also hinders growth level. In Brazil, bottom 60% of population get low share of income while top
10% get the high share. Some political authorities blocked the land reform in Brazil. Due to this,
farmers are unable to find suitable land for agriculture. High level of inequality leads to extreme
poverty and slower eradication of poverty.
The key factor on which the income and health of people depend is Sustainable development
but this is a crucial issue in Brazil as they did not take destruction of forests as a genuine
problem. Brazil could not able to protect land and forests, at risk. Due to high level of inequality,
there is violation of rights of indigenous farmers and lives of ecological campaigners and
activists are at risk.
Another critical concern hinders the development of Brazil is lack of Social inclusion. The
reason behind poverty might be racial discrimination. Most of the poor in Brazil are black and
receive very little amount of income as compare to white workers.
Moreover, failing in commerce and lack in technology might hinder the development process in
Brazil.
Overall, if Brazil wants to become a developed country, it should firstly cut out inequality factor
and non-corrupt should be in power who can effectively handle all other issues that hampers the
development process of Brazil.