From slavery to modern struggles: a short journey through income inequality in Brazil

Brazil is one of the most unequal countries in the world. According to the Oxfam report, 63% of Brazil's wealth is in the hands of 1% of the population. The same survey shows that the poorest 50% own only 2% of the country's assets. In 2022, the average income of the 1% who earn the best in Brazil was 32.5 times greater than the average income of the 50% who earn the least, according to Piauí magazine.

To make matters worse, the COVID-19 pandemic has intensified inequality in the country. According to sociologist Marcelo Medeiros, the concentration of income in Brazil "is so great that a hypothetical distribution of half the income of the richest 1% would be enough to almost double the income of the poorest half of adults".

Read below a short summary of the history of inequality in Brazilian society:

Colonial Period (1500s-1800s): Brazil's colonial era was characterized by a highly unequal social structure based on slavery and genocide of the traditional population and land ownership. The Portuguese colonial rulers established large plantations worked by enslaved Africans, leading to extreme wealth concentration among landowners and elites while the majority of the population lived in poverty.

Abolition of Slavery and Industrialization (late 1800s-early 1900s): The abolition of slavery in 1888 marked a significant shift in Brazil's social dynamics. However, income inequality persisted as former slaves and their descendants faced economic marginalization. Industrialization during this period led to the emergence of urban centers and the growth of industrial sectors, but wealth remained concentrated among a small elite class.

Economic Growth and Urbanization (mid-20th century): The mid-20th century saw periods of economic growth and urbanization in Brazil, driven by industrialization and infrastructure development. However, income inequality remained high, with disparities between rural and urban areas and among different social groups.

Military Dictatorship (1964-1985): The military dictatorship era in Brazil, which lasted from 1964 to 1985, saw economic policies that favored wealthy elites and multinational corporations. This period contributed to widening income gaps and social unrest, particularly among marginalized communities and workers.

Democratic Transition and Economic Reforms (1980s-1990s): Brazil's transition to democracy in the 1980s and subsequent economic reforms in the 1990s aimed to address economic challenges, including inflation and debt. However, these reforms also led to increased income inequality as austerity measures and neoliberal policies disproportionately affected lower-income groups.

Social Programs and Poverty Reduction (2000s-present): In the early 2000s, Brazil implemented social programs such as Bolsa Família, which targeted poverty reduction and income redistribution. These programs, along with economic growth and rising education levels, contributed to reduced extreme poverty and improved income inequality indicators. However, income inequality remains a significant issue in Brazil. Factors contributing to ongoing income disparities include unequal access to education, healthcare, employment opportunities, land ownership patterns, racial and gender inequalities, and economic policies that may favor certain groups over others. Addressing income inequality continues to be a complex challenge requiring comprehensive social, economic, and political reforms.