Brazil believes that tackling social inequality is paramount to guarantee sustainable development. To accomplish this goal, the country is undergoing a deep restructuring of its economic and social structures. This follows the decision to modernise the economy rationally and pragmatically, by using part of the proceeds of increased tax collection – brought about by stabilisation and growth – to invest in human capital.
This is enabling the poorer segment of society to enjoy the results of economic growth for the first time, since consistent lower inflation is protecting real wages. At the same time, job creation is now substantially higher than in the difficult stop-and-go years that characterised the Brazilian economy in the past. Brazil is creating an average of 1.3 million new jobs a year, the total wage bill is growing at about 8% in real terms, and household consumption is growing at 6% per annum.
