Economic crisis, the pandemic and the income redistribuition policy in Brazil

Abstract

The discussion of a minimum wage which has long been present in the academia, has now drawn attention to a nationwide debate and has found its place within the general public agenda as a suitable tool against the effects of COVID-19. This article aims to analyse the evolution and importance of income redistribution policies as an instrument to social protection, highlighting the way the brazilian government deals with it in times of crises, specially in the context of the Covid-19 pandemic and the creation of Auxilio Emergencial AE (cash-transfer program called emergency aid). For the development of the article, bibliographical and documentary research (analysis of law and secondary data from IBGE, IPEA, MC, CEF, etc.) were used in order to present arguments that support the debate on social protection policies. Its pointed out that the pandemic affected Brazil during a context where the social aspects had worsen due to the strong liberal policies adopted since 2015. The GDP of 2019, in real value, is lower than the 2014; the unemployment rate until February 2020 was almost twice as recorded in 2014; and poverty has expanded. Nevertheless, in the first fifteen months of the Bolsonaro government, more than one million PBF families (social welfare program based on cash-transfer for target families) and 25,000 BPC beneficiaries (social cash-transfer program for older or those with disabilities) were excluded. The worsening situation of the economic crisis due to Covid-19 led the National Congress to approve the AE that eventually has reached more than 65 million people. Finally, we conclude that it is necessary to keep and expand the AE to the 40 million people who were not benefited until a permanent minimum wage program is approved pari passu with the structural reforms that are essential in the fight against poverty and inequality.