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Read the passage given below and answer the questions which follow:- A large naturally rich country Brazil, consisting of (white, Black, mixed races), has one
Read the passage given below and answer the questions which follow:- A large naturally rich country Brazil, consisting of (white, Black, mixed races), has one of the most unequal income distribution in the world. Brazil's gini coefficient had slowly decreased from 0.596 in 2001 to 0.543 in 2009, & again increased to 0.55 in 2013. With main exports of iron ore, crude petroleum, coffee & raw sugar, Brazil has been able to diversify its economy. The country was able to diversify & modernize its economy by maintaining to high GDP growth rate. But the undeniable rise of Brazilian GDP did not necessarily translate into equal growth across all sectors of the country. While people living in metropolitan areas enjoy greater access to education & healthier infrastructure, many still residing in rural areas do not have the same opportunities. The huge internal migration of the poor people from the rural to urban areas (in search of better job opportunities), had contributed to the rise of favelas, Brazil's notoriously dangerous and impoverished urban slum communities. More than half the people in Rio de janero's favelas are black. Nearly all the big, modern cities in the South have urban slums, sometimes located right next to luxurious, architecturally impressive new construction - Asset ownership was highly concentrated; access to education was uneven & highly influenced by wealth. Wealthier Brazilians were able to send their children to better private schools, thus guaranteeing their acceptance into more prestigious colleges and universities. The average income of a white worker in Brazil was $712.65 a month, whereas for a person of African descent, black was only $399.81, a month. Production both manufacturing and agriculture was concentrated in large production units, and technologies adopted were capital intensive. Public expenditure on education, health had been distributed inequitably and thus, had worsened inequality and poverty instead of alleviating them. a) How the growth, poverty and income inequality were related in Brazil? Why? b) Do you think that rise in income inequality was necessary for achieving higher growth rates for the economy? c) Did the inequality act as a constraint on poverty alleviation in this country? Why? d) What pattern of investment led to the "higher rates of eco growth - higher income inequality more poverty" in the economy
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