271: Brazil lifts millions out of poverty

Amidst all the articles documenting economic woe, it was great to find one giving a contrasting tale. Today's linked article from Reuters charts recent patterns of economic growth in Brazil, which would seem to be benefiting some of the country's poorest people. The article reports World Bank statistics showing that the incomes of the poorest 10% of the population grew by 9% between 2002 and 2006, compared to around 2% to 4% for the richest. As a result, millions of people have shifted into Brazil's 'middle class'. In part at least, this is the result of government investment in infrastructure and services. However, access to financial services, enabling people to borrow and save - and invest in consumer goods like washing machines and TVs - has also played a major role. Of course, many remain distanced from this new prosperity, and the Reuters article tells this side of the story too. But if the government can sustain the right levels of public investment in the right places, and ideally introduce a more progressive tax regime, there is surely hope that many more millions will leave poverty behind them in the years to come.