Inequality may decrease, says Marcelo Neri in The Brazilian Economy magazine

In order to further develop, Brazil needs to reconcile social and economic aspects. This evaluation comes from the Minister of the Strategic Affairs Office (SAE) of the Presidency of the Republic, Marcelo Neri, in an exclusive interview with Conjuntura Econômica (The Brazilian Economy magazine) this month. Neri - who is president of the Institute for Applied Economic Research (Ipea) and professor at FGV/EPGE – Escola Brasileira de Economia e Finanças - argues that economists need to have an integrated and broader view of the data they have.
"We have seen a great dissociation between economic data of the National Accounts and social data, for example, of the Pnad. Even equivalent concepts (labor income in the Pnad and in the National Accounts) have a strong detachment on average, according to what macroeconomists analyze. And when we place inequality on top of that, the difference is greater", warns Neri, who also says that the country needs to understand digital democracy.
Still talking about the evolution of inequality in Brazil, the minister explained that government research on the topic (mainly by Pnad) indicate a standstill between 2011 and 2012, after ten years of sharp decline. And he adds: "In fact, what our studies with 2013 data show is that inequality remained stagnant for one year (2012), and then it fell again (in 2013)," he said. Neri also pointed out that, in case the outlook remains the same and the American trend of inequality continues to increase, Brazil may catch up with the United States.
The full interview is in the February issue of Conjuntura Econômica.
Please click here and learn about the magazine (in Portuguese).