Inequality and Growth in Brazil: the Role of the State

Inequality remains high in Brazil, in absolute terms, and opportunities wise. In order to advance, it will be necessary to invest more in the social sphere. Resources would come from the elimination of regressive taxes and subsidies, and from social security and State reforms. These sources should also have a direct benefic impact on inequality and macro uncertainty. Thus, distribution and growth are essential and complementary goals.

KEYWORDS:
Reforms; social investment; inequality; growth