BRAZIL A RECENT CASE OF ECONOMIC GROWTH WITH DISTRIBUTION OF INCOME

The purpose of this essay is to systematize the economic policy implemented by the Brazilian Government since the 2000's in order to promote economic growth, formal employment increases, wages rise and a less concentrated distribution of labor income. The period of prosperity in the world economy up to 2008 created the conditions for the growth of the South American economies. In Brazil this period of economic growth came along with the expansion of the formal labour market, wages increase and redistributive public policies such as passive and active labour market policies, and massive cash transfers programs focusing poor families. This strategy diminished the poverty indexes and widened the consumption of wage goods. Yet there are evidences that the concentration of the functional distribution increased due the persistence of high interest rates. The trend toward less inequality in labour income distribution can continue if Asia support Brazilian exports, if the domestic demand expands and if more investments are made in education and infrastructure.