Brazil’s recent political history has seen a reversal of the direction of travel of its progressive role, internationally, and domestically, regarding its spending on social policy. This is the claim made in a recent article focusing on Brazil’s political and economic experiences and fiscal tightening since 2016.
The article highlights a continued retreat from the international fold–especially in terms of the Global South—and the gains made in relation to poverty reduction and social protection. This is a trend that has continued to worsen and shows no sign of relenting under the current Bolsonaro administration. In light of the COVID-19 pandemic, Brazil has suffered as one of the countries most affected by the socioeconomic consequences so arguably needs to reconsider its commitment to a lifecycle social protection system and human rights. Importantly, Development Pathways has been vocal in suggesting that the COVID-19 crisis has forced many countries to re-think old simplistic assumptions on the “poor and non-poor” that has often driven social protection policies and enforced measures based on austerity.
Brazil began the century deepening its partnerships with other countries, especially in the Global South. This became known as South-South Cooperation (SSC); a term used by politicians, policymakers and academics to describe the exchange of resources, technology and knowledge, amongst other things, between countries of the Global South in relation to development and financial matters. Brazil’s geographic location and size are key factors in its regional importance, but also, historically, within SSC. The article suggests that under the Presidency of Luiz Inácio Lula da Silva (2003—2010), known as Lula, Brazil placed high emphasis on SSC which improved relations in the Global South and development more broadly.
It also suggests that domestically, Brazil structurally implemented progressive objectives during this period. The “Zero Hunger” initiative was implemented shortly after Lula’s election; this was to gain widespread coverage and praise and was the beginning of a considerable expansion of social policy during his tenure. It oversaw a “continued appreciation of the minimum wage with significant impacts on social security and pensions” and poverty and inequality reduction strategies. Evidence cited suggests that extreme poverty was reduced from 16.4 per cent to 4.7 per cent, the Gini Index fell from 0.570 to 0.515, and the per capita household income rose from R$549.83 to R$861.23 between 2003 and 2014.
Since then however, reforms have shown a “change in direction towards fiscal adjustments and spending containment” that have resulted in a reversal of the achievements of the previous decade—both internationally and domestically. Spending on SSC-related initiatives had doubled between 2005 and 2009 as well as spending on humanitarian assistance and technical cooperation increasing six-fold. This began to decline and reverse from 2011 onwards. Domestically, this was coupled with a decrease in health and education expenditures at a time when Brazil still had high levels of inequality and social exclusion. Consequently, the article quotes the Getúlio Vargas Foundation who suggest “between 2014 and 2017, the number of people living below the poverty line in Brazil grew 33 per cent, which means 6.3 million new poor people in the country – the equivalent of almost twice the population of Uruguay”.
The article posits that, in a process that begun in 2011 and intensified with President Dilma Rousseff’s impeachment in 2016, Brazil now does not prioritise international, SSC or domestic, poverty reduction objectives. Additionally, further cuts to social policy expenditures continue to present a “missed opportunity” for Brazil and its future. They suggest this will likely worsen with the current Bolsonaro administration and its neoliberal “A Bridge to the Future” programme, which suggests an even further retreat. In the midst of the continuing devastating COVID-19 impacts in Brazil, in part caused by the reforms and neglect to its public services, it seems the ideal time for Brazil to reassess its trajectory; both its international role and domestic policies. Previous research by Development Pathways has demonstrated that a reform to its domestic policies on social protection – transforming its poor-relief scheme “Bolsa Família” into an inclusive entitlement programme – could have significant impacts on poverty and inequality.
Brazil made huge strides, internationally, as a progressive force within SSC, and domestically, in terms of poverty reduction, during the first decade of this century. Since then it has opted to reverse these achievements and become more isolationist, internationally, and regressive, domestically, in terms of social policy and poverty reduction. Its recent history, and current administration, suggests this will, sadly, continue. Could international and domestic pressure help force Brazil to change course?
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