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Brazil as one of the largest economies and one of the most unequal countries in the world: The effects of colonization on the bases and persistence of economic disparity in the country

Abstract


This paper aims to analyze the contradictions present in Brazil, exploring aspects of its

economy and the growth of social inequality in the country since the beginning of its history.


Brazil has been growing increasingly as an economy in the world, presenting itself as the ninth-largest economy in the world in 2024. However, on the other hand, Brazil is also present in the ranking of the most unequal countries in the world, occupying the space from the fourteenth position, according to its Gini coefficient. How can Brazil be one of the largest economies in the world and social inequality persist to this day? This contradiction has deeper foundations than it may seem, rooted in Brazil's history. Therefore, this research proposal aims to study the basis of such economic disparity, focusing on the country's colonization and its consequences, as well as the reason for its persistence in Brazil.


Introduction


Brazil is growing more every day as a global influence. Its culture and population have

spread across several countries. However, the Brazilian image published shows very little of

the country's reality, which has a large part of society in precarious living situations. According to the data from the Brazilian Institute of Geography and Statistics (IBGE), in 2022, there were 12.7 million people in extreme poverty and 67.8 million in poverty, which are considerable numbers compared to the total Brazilian population of 215.3 million people. In contradiction to this fact, according to data from the International Monetary Fund (IMF), in 2023, Brazil entered the ranking of the ten largest economies in the world, occupying the ninth position with a gross domestic product (GDP) of 2,272, in USD billion. Following this logic, how can Brazil have a growing economy while poverty and social inequality persist in the country?


The answer to this question lies in the country's origins. From the 1500s onwards, Brazil

was colonized by the Kingdom of Portugal, becoming an exploration colony. This fact shows

that Portugal aimed to extract the goods and natural resources available in the colony for the metropolis's benefit. For this reason, the focus of colonization was not on developing a nation but on exploiting wealth. Consequently, social projects for the construction and development of a society have never received attention since the beginning of Brazilian history, a fact that has led to the precariousness of social issues such as education in the country, which is the base of the development of a nation and the generation of jobs.


Furthermore, the Portuguese participated in the history of Brazil much more than the Brazilians themselves, causing a lack of historical and political awareness in today's society.

Hence, these bases shape Brazil to this day, being rooted in Brazilian structures, which

impede the country's social development. Thus, this paper aims to methodologically investigate the construction of the Brazilian nation and its economy since the beginning of its history to demonstrate the reason for the persistence of economic disparity in Brazil.


Research Questions

How can Brazil be one of the largest economies in the world while social inequality

persists until nowadays? What is the connection between the colonization of Brazil and such

economic disparity?


Literature Review


In this way, it is evident that the problem of socioeconomic inequality in Brazil has

existed for many centuries, which implies that this theme has been the focus of studies and

research by various experts and researchers throughout history, continuing to the present day, since this problem persists without an efficient resolution in the country. An example of a study in this area is the article by Pimentel (2022), which addresses the social context of inequality in Brazil based on the Brazilian Federal Constitution of 1988 and its right to equality. Pimentel analyzes the problem based on the unequal work system, disproportionate access to education, and the Brazilian tax system, expatiating the concentration of income and Brazil's political system.


Moreover, Tornaghi (2021) approaches the economic disparity in Brazil based on the

analysis of its economy and its recent growth, debating the role of agribusiness in the country, and bringing a pandemic view of the Brazilian social and economic situation and its

consequences for the country. Tornaghi brings as a solution to this problem the need for

comprehensive long-term policies, especially in education and digital inclusion. Although the

articles present valid and extremely important arguments for understanding economic disparity in Brazil, they do not address the issue of colonization and the formation of the country as a cause for this problem, which is very important for understanding Brazil ́s economy and resolving social inequality in the Brazilian context.


Methodology


Qualitative analysis:


This research paper will use a qualitative study to analyze the

history of Brazil methodologically, from the period in which the first Portuguese arrived in

Brazilian lands until the present day. The main actions taken by the Kingdom of Portugal in

Brazilian territory and their consequent effects on the colony's economy and the native

population will be analyzed. The analysis will cover all periods of the so-called “Brazil

Colony,” classified as the Brazilwood phase (1500–1530), the Sugar phase (16th and 17th

centuries), and the Gold Cycle (18th century). The focus will be on exploited resources, the

development of the economy based on the export of primary products, slavery, and the

construction of Brazilian society. Furthermore, the facts that led to the lack of historical and

political awareness among the Brazilian people will be addressed, with emphasis on the process of Brazilian independence, which was carried out by a Portuguese man and still has an impact on Brazil nowadays.


Quantitative analysis:


Along with the historical analysis of the country, this research aims to analyze numerical secondary data related to Brazil during its historical periods. Mainly, the graphs that demonstrate the growth of the Brazilian economy over the years and the growth

in income concentration will be analyzed and thus compared with the historical facts that

caused such effects in order to understand the economic disparity.


Conclusion


In conclusion, this paper aimed to analyze the effects of the colonization of Brazilian

territory on the country's economy and the construction of socioeconomic inequality in Brazil.

Hence, it is evident that understanding this subject is essential so that the same flaws do not

persist in the country's future, in a way that Brazil can evolve as a power in the world and

promote a better life for the Brazilian population.

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