Politics · Brazil · 4 hrs ago

Brazil’s weak growth and rising costs strain its democratic pact

Brazil’s weak growth and rising costs strain its democratic pact

An economist argues that Brazil’s low growth is weakening its democratic pact.

The argument looks back to Brazil’s return to democracy in 1985, when the country had deep inequality and economic elites kept many privileges.

Governments expanded social programs, which improved some social indicators and helped ease conflict between groups.

But the system became costly, while taxes and public debt rose and investment fell.

The author says the policies did not deliver better education or enough new opportunities, and extreme poverty remains widespread.

Low growth and frustration over who pays and who benefits are adding to political tension, alongside polarization, organized crime and the effects of Covid.

The author warns that saving democracy will be difficult, and argues that stronger growth and more effective social policies are needed to ease the pressures.

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Article authorFolha commentary author
Não será fácil salvar a democracia
via Folha
The low growth creates resentment among those who cannot rise socially or think they are paying more than they receive.
via Folha
The model stalled before creating a new social and economic dynamic.
via Folha