Publications /
Paper in Academic Journals

Back
Read more
Regional Disparities
Authors
Eduardo Amaral Haddad
Carlos R. Azzoni
October 1, 2018
Related topics: 
Economy
Americas and Carribean
South America

This chapter analyzes the emergence of disparities in income and development levels between Brazil’s main regions, in particular the gap that exists between the comparatively rich South and Southeast and the poorer North and West regions. Economic activity and the population are concentrated in a small part of the territory. Even within this reduced area, the geographical distribution is highly uneven. Besides concentration, regional inequalities are marked in the country in terms of per capita income, education, access to public services, and so on. This scenario of concentration and inequality is quite persistent, as the data available indicate. We conclude with a discussion of regional policy, both intended and unintended. The present levels of inequality shows the failure of the traditional place-based regional policies implemented in the past. The people-based policies implemented in recent decades have been the most effective way of reducing regional inequality.

RELATED CONTENT

  • How Coronavirus Poses New Risks to Latin America's Sputtering Economies
    Authors
    Otaviano Canuto
    February 24, 2020
    The outbreak in China has already affected economic sectors in Latin America. Is there more to come? China’s economy has come to a sudden stop. Large parts of the country remain in shutdown mode after the end of the Lunar New Year holiday, with national passenger traffic declining by 85% on the Wednesday after the break compared to 2019.   Outside of China, the impact of the slowdown has already been felt, with companies like Apple and Land Rover warning of lower production, as pa ...
  • Download PDF
    Brazil is in dire need of more and better infrastructure investments
    Authors
    Otaviano Canuto
    January 31, 2020
    A recent Ipsos survey found the Brazilian population to be the most dissatisfied with infrastructure services (transportation, energy, water and telecommunications) among the 28 countries covered by the work. Not surprising if we observe the lack of infrastructure investments in Brazil since the 1980s. According to estimates by the economist Cláudio Frischtak, from Inter. B, while Brazil's Gross Domestic Product (GDP) doubled in real terms between 1990 and 2016, the stock of infrast ...
  • Global Economic Outlook: is the Glass Half Full or Half Empty ?
    Authors
    Hamza Saoudi
    Oumayma Bourhriba
    December 19, 2019
    Emerging market and developing economies: Engine of the global economic growth despite some vulnerabilities1 After a long spell of slow growth post-crisis, the global economy’s recovery was mainly supported by the improvement of emerging markets and developing economies growth. However, this recovery is subject to wide-ranging uncertainties and is now in some danger. According to the IMF, the global economic growth is expected to fall to 3 % in 2019, the lowest level since 2008. Th ...
  • The IMF, Argentina and Ecuador: Have Lessons Been Learned?
    Authors
    Otaviano Canuto
    December 2, 2019
    Following the global financial crisis of 2007-08, the International Monetary Fund (IMF) went through a period of self-examination. The old joke that its acronym stood for “It’s Mostly Fiscal” bothered some of its leaders, who believed the organization needed to focus less on austerity and more thoroughly consider issues such as inequality, poverty reduction and gender equality when making loans and other key decisions. There was talk of a “new IMF” that had learned from its old mist ...
  • EMBRAER and the trajectory of Brazil’s aeronautics industry ecosystem
    Authors
    Pedro da Motta Veiga
    November 14, 2019
    Created as a State-owned company in the late 1960s, Embraer was privatized in the mid- 1990s and became the main Brazilian company producing and exporting high-technology goods. The company diversified its operations within the aircraft business and added to its portfolio goods and services associated to its core activities. ...
  • Latin America Is Not Benefiting from the U.S.-China Trade War
    Authors
    Otaviano Canuto
    September 30, 2019
    Despite some short-term benefits, trade deviation to the region shouldn’t be expected to last. Has the U.S. trade war with China been good for Latin America? An increase in Chinese demand for primary products from the region, as well as recent news of production transfers from China to Mexico, might give the impression that it has. But any positive short-term effects of the confrontation should also take into account its negative medium- and long-term impacts on the region and on gl ...
  • Argentina’s Half-Baked Adjustment Has Not Worked
    Authors
    Otaviano Canuto
    August 19, 2019
    Argentina’s peso tumbled and stocks plunged after last Sunday’s primary elections. The perception of a likely victory of President Macri’s opponents – Alberto Fernandez, and running mate, Christina Fernandez de Kirchner - has sparked a new shift in investor preferences away from peso assets, pressures on the exchange rate, and hikes on sovereign spreads. Unless fears of a return to policies prevailing before Macri are assuaged, the market rout tends to deepen as a negative feedback ...
  • Brazil must hold to structural reforms while undergoing slow economic recovery
    Authors
    Otaviano Canuto
    August 8, 2019
    Brazil's economic recovery after the deep 2015-16 recession has been the slowest on record, with GDP per capita last year remaining more than 9% below its pre-crisis peak (Chart 1, right side). The IMF's annual report on the country's economy, released two weeks ago, estimated current GDP to be nearly 4% below its potential level, which suggests insufficiency of aggregate demand (Chart 1, left side). On the other hand, as the slow recovery reflects structural factors, it is necessar ...
  • Download PDF
    Middle Income Countries and Multilateral Development Banks Traps on the Way to Graduation
    Authors
    Otaviano Canuto
    Matheus Cavallari
    Tiago Ribeiro dos Santos
    July 19, 2019
    Multilateral Development Banks (MDBs) have two financing windows, with different terms, dedicated to low- and middle-income countries. Countries are presumed to cross those windows as their income per capita rises, with middle-income countries (MICs) eventually “graduating” to a non-client status once they reach some criteria. However, due to what may be called “middle-income traps”, such progression toward graduation has been limited to a small number of countries. ...