1. Brazil-China: Social Exchanges Marcelo Neri Minister of Strategic Affairs

2. Brazil: Middle of the World & the Middle Path Quality of Development Public Policies Agenda Brazil-China: Social Exchanges

3. % Population with Income Below U$ 1.25 per day PPP Source: IPEA / SAE from PNUD Brazil: Middle of the World

4. Source: IPEA / SAE from the Demographic Census/IBGE % Population with Income Below U$ 1.25 per day PPP A World within Brazil

5. US China Brazil Russia India 1 10 20 30 40 50 60 70 80 90 100 Percentile of the World Income Distribution 1255075100 Each Country Source: Milanovic (2011); see Neri (2011) Income Distribution Relative to the World Brazilian Per Capita GDP (PPP) is 93.7% of the World GDP *

6. Source: Milanovic (2011); see Neri (2011) Brazil is a Small World (photo & Movie) 19501960197019801990 2009 2011 2000 2001 Year Gini Coefficient.75.65.55.45 0.535 0.581 0.589 0.607 0.527 0.539 0.594 China EffectChindia Effect Inequality Across Nations *

7. Fonte: IPEA a partir dos microdados da PNAD/IBGE Cumulative growth rates of per capita income vintiles between 2001-2012(%) Income Distribution Changes

9. Brazil X BRICS Copyright © marcelo neri

10. Component that Explains Proportion of Extremely Poor % of Total Fall (69,3%) Income Growth 50.5% Inequality Fall 49.5% Dynamic Decomposition of Extreme Poverty fall of 69,3% in Brazil Between 2002-2012 Source: Ipea/Sae from Pnad/IBGE microdata What best explains Inclusion? Growth or Equity? Growth or Equity? The Middle Path

11. Prosperity Growth in mean income and consumption (not only GDP/National Accounts but also look to Household Surveys data). Sustainability Ability to maintain the standards of living achieved. Stocks of human, environmental, physical, cultural and social assets. Equity Looking at the distribution among individuals and social groups of income flows, stocks of assets and rights. Sensibility The last dimension is subjective, based on people’s percepction about the country, the public services and life quality. Inclusive Sustainable Development?

12. GDP X Mean Income PNAD X Median Income PNAD X 10% Poorest PNAD 190 170 150 130 110 20042005200720122003 210 90 20062008200920102011 Real Per Capita 2003 = 100 127.70 140.69 165.88 180.78 127.8 151.7 178.4 206.2 How much did it grow? Source: IPEA /Sae from PNAD/IBGE microdata and National Accounts/IBGE

13. Brazil was 14th in the World Ranking of Happiness in 2013: 7,1 the highest since 2006 Present Happiness Life Satisfaction Today 2006 to 2013 (0 to 10 scale) Source: Gallup World Poll *SIPS/Ipea 20132012201120102009200820072006 2010-13 / 2006-09 total Mean Portugal5,2684,99825,22754,87805,32595,7237 5,4151-7,54%5,25 Italy6,0395,84496,06416,35316,33256,78216,57186,8519-8,59%6,35 Ireland6,8206,96157,01177,26127,0597,574 7,1413-3,39%7,11 Greece4,7945,10755,37685,84476,0433 6,65166,0136-15,74%5,67 Spain6,2356,29316,52336,19366,20297,2986,99117,1512-8,79%6,60 Brazil7,1146,93187,04166,84207,00116,69236,32246,64214,73%6,82 Russia5,5615,62565,39665,38645,16695,62405,22514,96734,44%5,36 India4,61004,60994,631124,99774,52905,15615,03595,3555-6,13%4,86 China5,2685,09765,04794,65924,45934,85764,86664,56956,73%4,84 South Africa5,13734,93904,65935,22645,35535,20545,0870-11,70%4,91 Chile6,7216,60246,53326,64266,49205,79355,70346,063410,11%6,31 Colombia6,6256,37286,46356,41296,27286,17306,14276,02355,04%6,31 Mexico7,457,3276,91206,80226,96126,83196,53196,58235,69%6,92 Peru5,8505,82505,89445,61545,52475,13635,21534,817711,85%5,47

14. Are you satisfied with the city or area where you live?

15. Is the city or area where you live a good place to live for immigrants from other countries?

16. Macro: Savings and Productivity Demographic Transition & Urbanization (avoid Brazilianization): Youth and Immigration Exchange of Integrated Social Policies: Poverty and the New Middle Class Countries groups: BRICS, BIGs & Chisil Main Challenges: Strategic Agenda

17. References & Links Comunicado do Ipea nº 158 http://www.ipea.gov.br/portal/images/stories/PDFs/comunicado/121218_comunicadoipea158.pdf http://www.ipea.gov.br/portal/images/stories/PDFs/comunicado/121218_comunicadoipea158.pdf e http://www.cps.fgv.br/cps/Pesquisas/miseria_queda_grafico_clicavel/FLASH/index.htm http://www.cps.fgv.br/cps/Pesquisas/miseria_queda_grafico_clicavel/FLASH/index.htm Comunicado do Ipea nº 159 http://www.ipea.gov.br/portal/images/stories/PDFs/comunicado/131001_comunicado15 9.pdf Human Development Map – Brazilian Cities (English) http://atlasbrasil.ipea.gov.br/ Report on the Millenium Development Goals (MDGs) (English) http://www.sae.gov.br/site/?p=23274 http://www.sae.gov.br/site/?p=23274 Bolsa Família Program (English) http://www.sae.gov.br/site/?p=22177http://www.sae.gov.br/site/?p=22177 e7www.wwp.org.brwww.wwp.org.br The New Middle Class (English) http://www.cps.fgv.br/cps/livroncm/http://www.cps.fgv.br/cps/livroncm/ & ttp://www.sae.gov.br/site/?p=22297ttp://www.sae.gov.br/site/?p=22297 Short Video https://www.youtube.com/watch?feature=player_embedded&v=g8I-0kwFCTI