Monica de Bolle – The Huffington Post, 2/20/2015
It is unfortunate that Brazilian-American relations have become strained in recent years. This sense of frustration is further enhanced by the fact that the two largest countries in the Americas have very similar agendas when it comes to tackling inequality and income disparity. President Obama’s proposals towards “middle-class economics” and the recently released Economic Report of the President for 2015 highlight just how close the two countries are in their thinking about these issues and on how to make economic policies work more equitably for everyone. And yet, rather than coming together, the distance between the two countries has widened.
President Dilma Rousseff’s newly reelected government has vowed to rebalance Brazil’s economy – plagued by fiscal disarray and mounting inflation – in a way that preserves the legacy of the PT (Brazil’s Workers’ Party) achieved over last twelve years: the impressive social inclusion that has raised millions from the lowest ranks of the income distribution to the middle class. Aided by the macroeconomic stabilization of the 1990s and the unprecedented favorable external conditions that dominated the economic landscape between 2004 and 2010, the PT governments have set in motion their own version of “middle-class economics.” Remarkable social mobility took hold, and many were able to raise their overall quality of life as a result of targeted cash transfer programs such as “Bolsa-Família,” as well as specific programs aimed at allowing working mothers to remain in the marketplace and programs to help small and medium entrepreneurs tap into credit markets, among many other initiatives.