"Once hobbled with high inflation and perennially susceptible to worldwide crises,
Brazil now boasts a vibrant consumer market, investment-grade status for its sovereign debt, vast foreign reserves and an agricultural sector that is vying to supplant that of the United Stateshttp://www.washingtonpost.com/wp-dyn/content/article/2010/01/02/AR2010010200619.html?hpid=topnews as the world's most productive.
Economists and social scientists here say that
the booming trade-oriented economy,
coupled with innovative government programs, is lifting
millions from
poverty and shaking what was once a certainty: that a person born poor in Brazil would surely die poor.
Since 2003, more than 32 million people in this country of 198 million have entered the middle class, and about 20 million have risen above poverty, according to the Center for Social Policies at the Getúlio Vargas Foundation, a Rio policy group that studies social and economic trends.
"We can generate inclusive growth as probably no other country can, given the scale of the country and the level of inequality," said Marcelo Neri, chief economist at the center.
"Brazil is following what you may call a middle path. We are respecting the rules of the market and, at the same time, we are doing very active social policy."
Since 2002, a commodities boom has fueled strong growth and lowered poverty across Latin America. But Brazil's progress is perhaps the most notable because it has far more poor people than any other South American country and has long been one of the world's most unequal societies.
Neri said Brazil has made solid progress by creating 8.5 million jobs since 2003 and instituting programs such as food assistance for poor families and low-interest credit for first-time home buyers and small-business owners.
The foundation of today's success was laid during the administration of Fernando Henrique Cardoso, an
academic-turned-
politician best known for taming inflation in the mid-90s.
The man who has gotten much of the credit is his successor, President Luiz Inácio Lula da Silva, who once railed against globalization as a union activist.
Lula's election to the presidency in 2002 sent shudders through Brazil's economic elite, who worried that the former rabble-rouser would lead the country down the same populist, anti-capitalist path as Venezuelan President Hugo Chávez. "