The Brazilian middle class now represents 53 per cent of the total population. A decade ago they were only 38 per cent. Official figures released in September reveal that just this sector of 104 million Brazilians are likely to move US$500 billion into the economy this year.
Over the past 10 years, 35 million were lifted out of poverty. The numbers also highlight a reduction of the racial divide, as 80 per cent of the new members of the expanding middle class are of African descent.
The expansion of the middle class resulted from a process of economic growth combined with a reduction of inequality. According to the survey, with this combination, the shrinking of the lower class was more intense than the expansion of the upper class.
This means that the country was able to reduce the gap between rich and poor, one of the historical challenges of the South American nation. In Brazil, a middle class family has a monthly per capita income of between US$143 and US$502.
According to the Department of Strategic Affairs (SAE), if Brazil’s middle class formed a country, it would be the 12th largest population in the world.
The head of the SAE, Moreira Franco, highlighted the importance of the growth of the middle class to boost the economy.
"Some 18 million jobs were created in the last decade; these formal jobs were associated with an adequate minimum wage policy that gave real gains above inflation to Brazilians," said Franco.
If Brazil maintains the present growth rate and the downward trend in inequality, the middle class should reach 57% by 2022.
Although social programmes, such as the cash transfer Bolsa Familia, are the most publicised face of Brazilian public policies, many commentators point out the increase on minimum wage as the main inducer of social change in recent years.
In the last two years, more than one million formal jobs were generated, reducing unemployment rates to only 6,7%, the lowest level in history.
The social changes followed a shift in the perception and priorities of Brazilian society. According to researchers, all social classes have identified the bad quality of public education as a major obstacle to the development of the country.
Brazil´s president, Dilma Rousseff, has pledged funding on education and prioritised this as one of the main future challenges. Between 2000 and 2009, the country doubled the share of GDP invested in education, from 3.5% to 5.5%.
Education sector trade unions have lobbied the government to enhance the amount even further to 10%. The budget project was approved by the lower chamber and is presently being discussed at the Senate.
“History shows that austerity defeats itself when it is exaggerated and isolated from growth. The choice of Brazil has been to tackle both these challenges. While we observe a strict control of public accounts, we increase our investments in infrastructure and education,” she told the United Nations General Assembly last Wednesday.
