Politics · Brazil · 4 hrs ago
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.
A Folha commentary argues that weak economic growth and rising fiscal costs are increasing social resentment and weakening Brazil’s democratic pact.
The article says the model of a broad state that served rich and poor helped consolidate democracy but also constrained growth.
It argues that social policies grew more costly without delivering enough improvement in education or reducing reliance on assistance.
The article says inequality has stopped falling and nearly 10 million people remain in extreme poverty.
It also cites political polarization, organized crime and the Covid pandemic as factors that have worsened social conflict.
- Who
- Brazil and its democratic institutions.
- What
- A Folha commentary argues that weak growth and rising fiscal costs are straining the social pact that supports democracy.
- When
- The article discusses developments since the 1985 transition to democracy, including figures and events up to its publication on 30 October 2026.
- Where
- Brazil.
- Why
- The article says weak growth and rising costs have made the state less able to meet competing demands, increasing resentment and political tension.
This story does not have two clearly opposing sides.
Brazil transitioned to democracy, according to the article.
Brazil passed through the global recession without being affected, the article says.
Brazil had accumulated a decade of average annual GDP growth of nearly 4%, according to the article.
The author published the book Por que o Brasil Cresce Pouco?
- Average annual GDP growth
- Nearly 4% over the decade leading up to 2012
- Democratic transition
- 1985
- Book publication
- Por que o Brasil Cresce Pouco?, published in 2014
- Extreme poverty
- Nearly 10 million people
- Article publication
- 30 October 2026
1 source
What people are saying
Não será fácil salvar a democracia
The low growth creates resentment among those who cannot rise socially or think they are paying more than they receive.
The model stalled before creating a new social and economic dynamic.