The COVID-19 pandemic placed a lot of countries in difficult positions regarding their economies and poverty rates. Those already struggling were unable to make progress, and in some cases, poverty rates even increased due to the stress the pandemic placed on society. Brazil is just one of the many countries facing an increase in poverty today. However, five strategies exist to progress poverty reduction in Brazil.
About Poverty in Brazil
Before the pandemic, Brazil already faced difficulties in the country with many lower-class citizens facing extreme poverty. Since 2014, the poverty rate grew steadily, and by the beginning of 2020, almost 11% of the population of Brazil was living on a statistically meager amount every day. Because of the pandemic, about an estimated 13% of Brazil finds itself in poverty as of March 2021. In order to combat the rising poverty rates throughout Brazil, there are certain steps that the country can take. Here are five strategies to progress poverty reduction in Brazil after the COVID-19 pandemic.
5 Strategies to Progress Poverty Reduction in Brazil
- A Rise in Vaccination Rates: So far, the vaccination rates in Brazil have remained quite low in comparison to other advanced countries across the globe. Though infection rates in Brazil have not returned to their pandemic peak, cases still tend to rise after they are brought down and the country opens up again. This has proven to be hard on the economy because communities have to continuously lockdown and then reopen time and time again. With a rise in vaccination rates, however, this would no longer have to be the case. As Deloitte Insights pointed out, “Evidence from the United States, for example, shows that consumer sentiment and willingness to spend has gone up with rising vaccinations.”
- American Involvement Can Help: The United States is equipped with resources to aid other countries with global poverty relief. Over the past century, other efforts have proved the U.S.’s ability to deliver effective assistance. Kate Schecter wrote for New Security Beat, saying, “There have been notable successes, such as the President’s Emergency Plan for AIDS Relief, which started in 2003.” As the U.S. appears to be recovering financially from the pandemic, it could utilize aid resources to assist other countries’ recoveries as well, including Brazil’s.
- A Commitment to Investments Within Local Communities: In order for poverty-stricken communities within Brazil to build themselves up financially, an effort to helping communities create jobs and access to resources remains essential. “These investments can both reduce poverty and mitigate out-migration by reducing ‘push factors,’ such as lack of jobs and food scarcity which force people to leave their homes and seek basic subsistence in other countries,” wrote Schecter.
- Open the Economy: Brazil has some of the lowest import and export rates among countries with major economies. In 2017, it recorded a less than 30% GDP sum in terms of imports and exports. International Money Fund (IMF) states that “opening up to more trade is essential to improve competitiveness and could give a much-needed fillip to investment.”
- Increased COVID-19 Aid from the Government: During the initial economic blow from the pandemic, the government implemented an emergency aid program to help families in need of financial support. Consequently, poverty levels throughout the country took a dramatic decline. This positively impacted the country, but “the aid program is not sustainable and the positive trend in terms of poverty reduction is likely to reverse once the benefit ends,” based on a study from the think-tank Fundação Getúlio Vargas. A better-supported and considered aid program to mitigate the effects of the pandemic could still reduce the poverty rate with careful planning.
The recovery process is still ongoing, but as Brazil continues to improve, it can now look forward to poverty reduction throughout the country. Effectively considering and enacting policies throughout Brazil could alleviate the difficulties of the nation’s poor and reduce poverty broadly.
– Riley Prillwitz
Photo: Wikipedia Commons