Data from a recent survey of the Getúlio Vargas Foundation has revealed that the income inequality in Brazil has reduced drastically, indicating towards a significant reduction in the disparity. Crediting this change are initiatives such as social programs and economic growth.
The survey also recorded the greatest increase ever in the incomes of the poorest strata. Along with better education, significant investment in infrastructure and setting up of major industrial projects as a part of the Growth Acceleration Program (PAC) has contributed largely to reduce the income disparity. Sergio Machado says that PAC has led to a paradigm shift in the country by altering the way problems are approached.
In fact, the PAC has changed the growth paradigm of the country by allocating 25% of its investment to the Northeast in its very first phase. Inducing a development of this magnitude definitely expedited growth by multiple folds. Northeast has today on highly skilled labor other regions of the country.
Jose Sergio de Oliveira Machado says that Northeast Brazil still needs a little more focus when it comes to development. He says that there is a need to ensure that the Northeast grows in an integrated way so that a local supply chain can be created. This will help in creating income and wealth for the region.
This can be only done when we get rid of the old practices that have proven to be futile and harmful. The authorities need to incorporate a broader view point instead of focusing on isolated industries. There also needs a better focus on improving the quality of higher education along with creation of more job opportunities for the people. The quality of education provided should match up to that of international standards and include a competitive edge.
Sergio Machado also remarks that Brazil should work its proximity to Europe and the UK to its advantage. These regions offer a plethora of opportunities. So, the government needs to bring in a a few policies that strengthens our business relations with our neighboring countries.