We’re covering today how expensive it is for Brazil not to fund a proper education system. The Economy Minister dreams of private pensions and new taxes. And a loss for suspected coronavirus patients in Brazil.
The costs of Brazil’s poor education system
A study presented on Tuesday by the Roberto Marinho Foundation and the São Paulo-based Insper Business School estimates that Brazil’s poor education system is costing the country no less than BRL 214 billion (USD 40 billion) per year. Researchers say that 17.5 percent of Brazil’s 16-year-olds will not complete their basic education curriculum — that’s 575,000 people.
- The government spends around BRL 90,000 on each student who finishes the basic curriculum — and loses BRL 372,000 by failing to prevent truancy, according to economist Ricardo Paes de Barros, one of the authors.
- The total impact amounts to roughly 3 percent of GDP.
Why it matters. For years, the government has slashed the education budget, focusing on how much it costs to enforce policies. However, this study shows that inaction is actually much costlier for the country.
Impacts. It should be a no-brainer by now, but Brazil’s productivity woes are linked to its lack of educated and skilled...