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Poverty and Democracy : the Brazilian Experience

Palacio, Andrés LU and Martins, Igor LU (2018) In Poverty, Politics and the Poverty of Politics p.193-210
Abstract
We ask what caused poverty to decline in Brazil over the last decade. Our contribution lies in the introduction of a structural change perspective to assess the evolution of poverty by considering the sectoral impact of growth and the social policies at the federal, state and municipal level. We confirm previous findings in the literature that the service sector rather than agriculture contributes the most to the sustained poverty reduction. Strikingly, the public administration is the leading sub-sector. We acknowledge however that the agricultural commodity boom was indeed beneficial for the Brazilian economy, but its impact has indirect effects through the linkages across factors and product markets. We also find that state and... (More)
We ask what caused poverty to decline in Brazil over the last decade. Our contribution lies in the introduction of a structural change perspective to assess the evolution of poverty by considering the sectoral impact of growth and the social policies at the federal, state and municipal level. We confirm previous findings in the literature that the service sector rather than agriculture contributes the most to the sustained poverty reduction. Strikingly, the public administration is the leading sub-sector. We acknowledge however that the agricultural commodity boom was indeed beneficial for the Brazilian economy, but its impact has indirect effects through the linkages across factors and product markets. We also find that state and municipal expenditures in human capital contribute more to poverty reduction than federal expenditures associated with conditional cash transfer programs; investment in infrastructure does not seem to contribute to poverty reduction. In short, we claim that the payoffs of decentralized policies associated with human capital can be seen in the short run and therefore raise the bar for politicians to maintain and care for these policies. Furthermore, the public service sector, which is one of the main employers in today´s economy, must find ways to innovate and improve productivity if poverty reduction is to be sustainable in the long run. (Less)
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author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
in
Poverty, Politics and the Poverty of Politics
editor
Rauhut, Daniel; Hatti, Neelambar; and
pages
18 pages
publisher
B.R. Publishing Corporation
ISBN
9789387587120
language
English
LU publication?
yes
id
f411a2be-922e-4546-9724-f475f74e5b7b
date added to LUP
2017-11-10 10:22:50
date last changed
2018-01-23 13:56:22
@inbook{f411a2be-922e-4546-9724-f475f74e5b7b,
  abstract     = {We ask what caused poverty to decline in Brazil over the last decade. Our contribution lies in the introduction of a structural change perspective to assess the evolution of poverty by considering the sectoral impact of growth and the social policies at the federal, state and municipal level. We confirm previous findings in the literature that the service sector rather than agriculture contributes the most to the sustained poverty reduction. Strikingly, the public administration is the leading sub-sector. We acknowledge however that the agricultural commodity boom was indeed beneficial for the Brazilian economy, but its impact has indirect effects through the linkages across factors and product markets. We also find that state and municipal expenditures in human capital contribute more to poverty reduction than federal expenditures associated with conditional cash transfer programs; investment in infrastructure does not seem to contribute to poverty reduction. In short, we claim that the payoffs of decentralized policies associated with human capital can be seen in the short run and therefore raise the bar for politicians to maintain and care for these policies. Furthermore, the public service sector, which is one of the main employers in today´s economy, must find ways to innovate and improve productivity if poverty reduction is to be sustainable in the long run.},
  author       = {Palacio, Andrés and Martins, Igor},
  editor       = {Rauhut, Daniel and Hatti, Neelambar},
  isbn         = {9789387587120},
  language     = {eng},
  pages        = {193--210},
  publisher    = {B.R. Publishing Corporation},
  series       = {Poverty, Politics and the Poverty of Politics},
  title        = {Poverty and Democracy : the Brazilian Experience},
  year         = {2018},
}