Brazil May Eradicate
Extreme Poverty By 2016
RIO DE JANEIRO - Brazil may be able to
eradicate extreme poverty by 2016, a study
released on Tuesday by the Applied Economic
Research Institute (Ipea) showed.
Brazil could reach a Gini index of 0.488,
close to the 0.466 registered by the United
States last year if Brazil's current social
equality programs work, said Ipea.
In order to achieve this, the country would
have to reduce taxes for the low income
population, which pays proportionally more
than the richer citizens.
Brazilian families with an income of 1,020
reais (582 U.S. dollars) per month spend
almost half of their earnings on taxes,
while families with an income of 15,300
reais (8,742 dollars) or more spend only a
quarter of their money on taxes, said Ipea.
To reduce poverty, Ipea said, the country
needed to maintain a high growth rate and a
low inflation rate, and to tilt its policies
toward low incomers.
The Gini index measures inequality of income
with 0 meaning complete equality. The world
average is estimated at between 0.56 and
0.66.
Extreme poverty is defined by Ipea as income
being no more than a quarter of the
country's minimum wage, or 128 reais (73
dollars) per month.
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