Recession made Brazil poorer, more unequal

Brazil has always been haunted by obscene levels of inequality. Over the past four decades, however, things slowly improved, as shown by the country’s declining Gini index—the World Bank’s measurement of inequality. Levels of economic disparity dropped in recent years due to favorable demographic trends, cash transfer programs, and macroeconomic stability. Since the late 1970s, the top 10 percent lost some of its share in Brazil’s wealth in favor of the bottom 10 percent.

But macroeconomic stability is no longer a given in Latin America’s largest economy, which is still struggling to emerge from its worst recession on record. And for the first time in 15 years, Brazil has failed to reduce inequality levels, according to a report by British NGO Oxfam, published today. This makes Brazil...