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World Study on Poverty and World Study on Poverty and Disparities in ChildhoodDisparities in Childhood
Panama, June 30Panama, June 30thth and July 1 and July 1stst, 2008. , 2008.
Childhood and Poverty Childhood and Poverty in Brazilin Brazil
Instituto de Pesquisa Econômica Aplicada (IPEA) Rio de Janeiro - Brazil
Some basic facts about
Brazil.
One of Brazil’s striking features is the degree of poverty and inequality
consistently higher than those expected from a
country with its level of development.
Although it cannot be considered a poor country, Brazil is a country with many poor people. In 2006, 53 million people had been living in poverty
and 20 million in situation of extreme poverty.
Indicators PovertyExtreme poverty
Average income (in R$ per month)¹ 495 495
Percentage of poor (P0) 29,6 10,7
Number of poor people (in millions) 53,0 19,3
Average distance between the poor's income and the poverty line (in percentage of the poverty line) 41,7 40,4
Average distance between the poor's income and the poverty line (in R$ per person per month)¹ 69,7 33,8
Average income of the poor (in R$ per person per month)¹ 97,4 49,8
Poverty line (in R$ per month)¹ 167 83,6
Relation between the average income and the poverty line 2,96 5,92
Annual volume of necessary resources to eradicate poverty (in billions of R$)¹ 44,3 7,8
Necessary resources to eradicate poverty as a percentage of the families' income 4,16 0,73
Necessary resources to eradicate poverty as a percentage of non-poor families's income 4,42 0,74
Necessary resources to eradicate poverty as a percentage of income superior to the poverty line of non-poor families 5,92 0,87
Notes: 1. Values in R$ from september 2006 2. It was used the regional average poverty line
Poverty and extreme poverty in Brazil - 2006
Source: Estimates based on Pesquisa Nacional por Amostra de Domicílios (PNAD) - 2006.
The share of income appropriated by the poorest 50% is almost of the same magnitude of the one appropriated by the richest 1%.
Indicators Value
Percentage of income appropriated by the poorest tenths (%)
First 0,94
Second 2,97
Third 5,87
Fourth 9,71
Fifth 14,7
Sixth 21,0
Seventh 28,9
Eight 39,6
Ninth 55,6
Percentage of income appropriated by the last cent 12,6
Gini Coefficient 0,559
Theil-T index 0,634
Ratio between the income of the richest 10% and the poorest 40% 18,3
Ratio between the income of the richest 20% and the poorest 20% 20,4
Indicators of per capita income inequality in Brazil, 2006
Source: Estimates based on Pesquisa Nacional por Amostra de Domicílios (PNAD) - 2006.
For more than four decades inequality in Brazil was not only extremely high, but
also incredibly stable.
Recently this pattern began to change.
Between 2001 and 2006 the country experienced a continuous and substantial fall in inequality of income, reaching its
lowest level of the last 30 years.
The degree of inequality declined sharply, with an average annual reduction of 1,2%
between 2001 and 2006.
Evolution of inequality in per capita income: Brazil, 1976-2006 (Gini coefficient)
0,559
0,566
0,600
0,600
0,600
0,599
0,602
0,580
0,612
0,634
0,599
0,587
0,596
0,623
0,623
0,604
0,5890,588
0,615
0,5820,593
0,5940,592
0,593
0,587
0,569
0,581
0,550
0,560
0,570
0,580
0,590
0,600
0,610
0,620
0,630
0,640
0,650
1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Year
Gin
i co
eff
icie
nt
Source: Estimates based on Pesquisa Nacional por Amostra de Domicílios (PNAD) - 1976 to 2006.
Minimum Gini coefficient
Average of Gini coefficient
From the average to the lowest level.
This reduction in the income inequality has had significant impacts on poverty and living
conditions for the poorest people.
From 2001 to 2006 the per capita income of the bottom 10% increased at a Chinese rate (9% per year). It was more than three
times the national average (2,5%)
Average annual growth rate of family per capita income by tenth of the distribution: 2001-06
0
1
2
3
4
5
6
7
8
9
10
First Second Third Fourth Fifth Sixth Seventh Eighth Ninth Tenth
Ave
rag
e a
nn
ual
gro
wth
ra
te (
%)
Bottom 10%
Top 10%
National average
In terms of poverty reduction, Brazil has already achieved the
first of the Millennium Development Goals (MDG) – to
reduce by half the proportion of the population living in extreme
poverty by 2015.
Evolution of Extreme Poverty in Brazil: 2001-2006
10
11
12
13
14
15
16
17
18
19
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Pro
po
rtio
n o
f th
e p
op
ula
tio
n b
elo
w t
he e
xtr
em
e p
ov
ert
y lin
e
Extreme poverty in 2001
Millenium Development Goal for 2015
Total reduction in extreme poverty
Reduction in extreme poverty due to Inequality decline
Evolution without growth
Reduction in extreme poverty necessary for meeting the MDG by 2015
Extreme poverty in 2006
6.7
2.2
4.
Indeed, not only the recent decline in the extreme poverty was three times faster than the necessary for the Country to achieve the MDG in 2015, more than 60% of this fall
came from the decline in inequality occurred during this period.
But even with the sharp decline in income inequality,
Brazil is still far from a reasonable level of inequality.
Therefore, we must ensure the sustainability of this process
of poverty and inequality reduction.
Because of the limited ability to raise significantly the social spending, the sustainability of
the fall in poverty and inequality will depend on
improvements in the efficiency of spending, and particularly in the coverage and attention
to social groups that have been less benefited from this
recent social progress.
Poverty in Brazil has been concentrated in some groups,
and the sharp decline in poverty and extreme poverty
observed recently in the Country did not benefit all
groups equally.
The degree of extreme poverty is much higher among
children than in other age groups
and
over the last five years, the fall in extreme poverty among the elderly was much higher than that among children.
We have been giving priority to the elderly, while reducing poverty.
Average annual rate of reduction in poverty headcount by age: Brazil, 2001-06
0
5
10
15
20
25
30
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80
Age
avera
ge a
nn
ual
rate
of
red
ucti
on
(%
)
Poverty
Extreme poverty
So that the decline in poverty in Brazil is sustainable, we must change the focus of
social policy, giving greater importance to programs
targeted at children.
We need to reduce the age bias of
public transfers.
As a consequence of this age bias, the level of poverty among children is almost tenfold higher than among the elderly.
Extreme poverty by age, Brazil 2006
0
2
4
6
8
10
12
14
16
18
20
22
24
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80age (years)
extr
eme
po
vert
y h
ead
cou
nt
(%)
Children
Elderly
National mean
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 emore
Average: 31.5 %
… in 2006, about 56%, or 11.5
million children, 0 to 6 live in
poverty
… in 2006, about 40.5%, or 4.2
million children, 15 to 17 live in
poverty
Poverty has a child’s face…
Moreover, poverty is not equally distributed among children. There are groups
poorer than others.
This inequality is higher in Brazil than in other Latin
American countries.
Differential school attendance rate for children 10 to 14 - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
Chile
Honduras
Mexico
Colombia
Uruguay
El Salvador
Ecuador
Costa Rica
Peru
Guatemala
Paraguay
Venezuela
Dominican Republic
Nicaragua
Panama
Brazil
Bolivia
Jamaica
Argentina
School attendance rate
Child with four young brothers in a rural single-
parent household, with illiterate parents and per
capita income of 1US$ (PPP).Child with one young brother
in a urban two-parent household, with completed
secondary education and per capita income of 25US$
(PPP).
Differential probability of completing 6th grade on time - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
Brazil
Argentina
Ecuador
Guatemala
Peru
Honduras
Chile
Dominican Republic
Nicaragua
Costa Rica
Venezuela
Paraguay
Panama
Jamaica
Colombia
Uruguay
Bolivia
Mexico
El Salvador
Average probability
Child with four young brothers in a rural single-
parent household, with illiterate parents and per
capita income of 1US$ (PPP).Child with one young brother
in a urban two-parent household, with completed
secondary education and per capita income of 25US$
(PPP).
Differential probability of completing third grade on time - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
Brazil
Ecuador
Honduras
Guatemala
Paraguay
Costa Rica
Venezuela
Dominican Republic
Peru
Nicaragua
Chile
Panama
Jamaica
Argentina
Colombia
Uruguay
Bolivia
Mexico
El Salvador
Average probability
Child with four young brothers in a rural single-
parent household, with illiterate parents and per
capita income of 1US$ (PPP).Child with one young brother
in a urban two-parent household, with completed
secondary education and per capita income of 25US$
(PPP).
Differential literacy rate at age 15 - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
Nicaragua
El Salvador
Honduras
Venezuela
Colombia
Uruguay
Dominican Republic
Paraguay
Panama
Costa Rica
Brazil
Bolivia
Peru
Guatemala
Mexico
Ecuador
Chile
Argentina
Jamaica
Literacy rate
Child with four young brothers in a rural single-
parent household, with illiterate parents.
Child with one young brother in a urban two-parent household, with completed secondary
education.
Differential access to water and sanitation - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
Jamaica
El Salvador
Bolivia
Nicaragua
Panama
Honduras
Dominican Republic
Guatemala
Brazil
Peru
Colombia
Mexico
Argentina
Venezuela
Paraguay
Ecuador
Chile
Uruguay
Costa Rica
Average access to water and sanitation
Child with four young brothers in a rural single-
parent household, with illiterate parents and per
capita income of 1US$ (PPP).Child with one young brother
in a urban two-parent household, with completed
secondary education and per capita income of 25US$
(PPP).
Differential access to electricity - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
Colombia
Jamaica
Bolivia
El Salvador
Guatemala
Nicaragua
Peru
Panama
Dominican Republic
Honduras
Paraguay
Brazil
Chile
Ecuador
Mexico
Uruguay
Argentina
Costa Rica
Venezuela
Average access to electricity
Child with four young brothers in a rural single-
parent household, with illiterate parents. Child with one young
brother in a urban two-parent household, with completed secondary
education.
Differential access to water - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
El Salvador
Jamaica
Dominican Republic
Colombia
Guatemala
Peru
Bolivia
Mexico
Nicaragua
Ecuador
Honduras
Panama
Paraguay
Venezuela
Uruguay
Chile
Brazil
Argentina
Costa Rica
Average probability
Child with four young brothers in a rural single-
parent household, with illiterate parents and per
capita income of 1US$ (PPP).Child with one young brother
in a urban two-parent household, with completed
secondary education and per capita income of 25US$
(PPP).
Differential access to sanitation - around 2005
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0
El Salvador
Bolivia
Nicaragua
Panama
Honduras
Brazil
Peru
Mexico
Guatemala
Dominican Republic
Argentina
Venezuela
Chile
Paraguay
Ecuador
Colombia
Uruguay
Costa Rica
Average access to sanitation
Child with four young brothers in a rural single-
parent household, with illiterate parents and per
capita income of 1US$ (PPP).Child with one young brother
in a urban two-parent household, with completed
secondary education and per capita income of 25US$
(PPP).
In sum, to shift the focus of
social policy we need:
1) A wide perception of the precarious position that children occupy in the Brazilian income distribution, its high level of poverty and the serious consequences that this situation may have on child development and hence on the reproduction of poverty.
2) Identification of the causes of this high level of child poverty. In particular, it is necessary to assess to what extent it arises from deficiencies in the social protection system regarding coverage and attention to younger families, the difficulty of inserting these families in the labor market, or of both factors.
Regarding the main objectives of the study:
1) Collect data and build indicators in order to produce a diagnosis of the situation of children in the Country, taking as basis different concepts of child poverty. Whenever possible sub national analysis is going to be done.
2) Examine the scale and scope of social policies aimed at childhood in the country.
3) To prepare suggestions for actions to promote the welfare of children in situations of deprivation, as well as their families
1) Diagnosis of the situation of children.
1.1. Poverty among children To investigate the position of children in
Brazilian distribution of income.
To investigate whether this position has varied over time.
1.2. The profile of poor children Concentration of poverty in some groups of
children (profile of poverty).
Degree of inequality among children.
Distribution of children aged 0 to 14 in population distribution according to per capita income
0
0,5
1
1,5
2
2,5
0 10 20 30 40 50 60 70 80 90 100
Centiles of the distribution
Dis
trib
uti
on
of
child
ren
(%
)
Source: Pesquisa Nacional por Amotra de Domicílios (PNAD) 2006.
Poverty and extreme poverty among children (0 to 14 years) of the southern elite and northeast
0
10
20
30
40
50
60
70
80
90
White, parents with some education, in the urban area of thesouthern region
Black, illiterate parents in the rural area of the northeast region
(%)
Poverty
Extreme poverty
Source: Pesquisa Nacional por Amotra de Domicílios (PNAD) 2006.
Concentration of poverty in some groups of children.
The probability of being poor.
Household income
Nutrition
Health
Child protection
Education
5 dimensions5 dimensions
1) Estimate the predicted
probability for each dimension.
2) Aggregate this five dimensions in a Child Poverty Child Poverty
IndexIndex.
- Indicator 1- Indicator 2- Indicator 3
- etc….
2) Examining the scale and scope of social policies aimed at childhood in the country.
The impact of demographic, social protection policies and labor market on the differences in poverty among families with and without children.
The impact of these factors on the income gap of poor families with children poor and non poor.
How these factors for households with children have been changed in recent decades?
The impact of these factors on the recent fall of child poverty.
Why the decline in poverty among children was less marked than the national average?
Indicators All familiesFamilies with children
(0 to 14 years)
Per capita income 495 341Proportion of adults 0,74 0,60Income per adult 669 571Proportion of adults occupied 0,46 0,39Labor income per adults 507 484Labor income per worker 808 734Other incomes per adult 161 87Source: Pesquisa Nacional por Amostra de Domicílios (PNAD) 2006.
Components of per capita income for the total of families with children aged 0 to 14 - 2006
3) To prepare suggestions for actions to promote the welfare of children in situations of deprivation, as well as their families.
To assess the adequacy of policies on child care, in particular:
Is there an age bias in Brazilian social policy?
The programmes reach the poorest children?
Identify, based on the diagnosis, the major needs of children in the Country.
Compare needs and supply
Some policy issues:
Survey of policies: In Brazil social policy is extremely
decentralized (Federal, Units of federation and municipalities - more than 5,000 municipalities). For example, the educational policy for early childhood is a municipalities' responsibility.
Public spending: We have information on public
spending by function. For example, we have the information on health spending by municipal level, but we cannot easily separate the amount spended on children’s health.
Policies’ description: We want a description of how
social policy really works in Brazil or we are interested in what the official speech about on the childhood policy?