Excellent article and analysis by BBC on what is the outcome of the economic crisis, currently going on in Brazil, on the middle class.
A brief highlight of the article:
“In the early 2000s, Brazil began exporting many of its commodities – such as iron ore, soy, and beef – around the world, fuelled by growth in places like China and India. Those commodity profits, according to Hector Gomez Ang of the World Bank’s International Finance Corporation, kicked off a virtuous cycle.
“That started creating jobs,” he says. “That’s one of the factors.” Those jobs then drove a need for services, health care, and education.
Added to that, says Gomez Ang, was a state policy where the government pushed banks to offer credit to consumers at favourable terms for the first time.
The combined effects of this boom lifted 50 million Brazilians into the middle class between 2003 and 2014, according to the Organization for Economic Cooperation and Development.
“The present predicament of Brazil is whether Brazil will prove that the social gains are sustainable,” says former finance minister Rubens Ricupero. “And it’s very doubtful. Because [for] almost three years Brazil has grown very little or nothing at all.”
To read the entire article, click here.