Presentation by Siân Herbert (GSDRC Research Fellow)

1. The politics of redistribution in Brazil
DLP Annual Conference 2015:
The Politics of Inequality, 12 February 2015
Siân Herbert

2. Rocinha, Rio de Janeiro

3. 1) The context
• Colonialism and slavery
→ extractive and inegalitarian institutions
• Multi-party, federal politics
→ reforms are slow & cost
• Corruption, patronage, clientelism
• UMIC, 7th biggest world economy, on the path
to economic stability since the mid-1990s

4. 2) Nature of inequality
• Multiple inequalities
• World’s 10th most unequal country in 2011
(of 71 countries with available data)
• However… inequality has been falling quickly
since 2000. Why?

5. Income inequality (Gini index)
Brazil 1960-2011
Source: Solt, 2013

6. 3) The politics

7. 3i) 1985-1992: A (re)new(ed) social
contract
• Democratisation:
• 1985 end of the dictatorship
• 1988 new Constitution
• Demand for change
• Public and elite will to reduce poverty
(& inequality)
• Increase in political participation and activism
• Decentralisation diffuses power further

8. 3ii) 1992-2002: Economic stabilisation
and pressure for social reform
• Electing Fernando Henrique Cardoso
• Economic stability
• Bargaining and concession politics
• Increasing taxation
• Policy experimentation and participation
• The re-politicisation of social problems and
policy

9. Win-win?
Average income per capita,1985-2012
Source: World Bank DataBank
0
2000
4000
6000
8000
10000
12000
14000
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year

10. 3iii) 2002-2011: Redistribution and
inclusive growth
• Pragmatic concessions, coalitions and the
election of Lula da Silva (PT)
• Pragmatic and charismatic leadership
• Minimum wage rises and labour market
opportunities
• Expansion of social spending and policies
• Continuity → long term results

11. 4) Conclusion
I. Critical junctures
II. Pragmatic leaders
III. Localised policy experimentation and
participation
IV. Continuity
V. And…

12. …as the world’s 10th most unequal country
there’s still a long way to go

13. Thank you
s.herbert@bham.ac.uk
Twitter: @SianHerbert