Regional Disparities in Brazil

Question 1

General

Answer 1

• Brazil faces sig regional disparities in both social + eco. dev.
• represented by high Gini coefficient (0.53) = reflects its high income inequality between eco. core region in SE Brazil + peripheral regions

Question 2

Describe how the core-periphery concept can be applied to Brazil.

Answer 2

• SE (eco core) = contains industries contributing ab 30% of GDP
  
  • inc São Paulo (largest city + financial hub of S. America) = inc most Brazilian bank HQs + major foreign banks, so dominates eco
  • centre of R+D in public + private sectors, w Aerospace Technical Centre (80km N of São Paulo) focusing on aviation + space research, key to Brazil’s largest export sector of aircraft + parts
• NE, N, central W, + S = periphery, w NE contributing only 13% to GDP, despite having 27% of pop.
  
  • but, recently central W + S have experienced some spread effects from core (S most affected), bc of regional policies + shifting markets, but income inequality remains high

Question 3

Describe how cumulative causation in SE Brazil dev. from initial advantages.

Answer 3

• cumulative causation in SE = from its initial natural + locational advantages = allowed primary industries to dev
  
  • warm T°C, rainfall + rich terra rossa soils = opportunities for farming = region being sig for growing coffee, rice + cocoa
  • endowed w large iron ore, manganese + bauxite deposits = sig mining industry
  • energy rich bc of large offshore oil + gas deposits, + large rivers flowing over steep slopes = generation of hydroelectric power

Question 4

Describe how cumulative causation in SE Brazil led to regional disparities.

Answer 4

• natural advantages + large pop in SE = gov focusing investment into SE in 1950s-60s, bc wanted Brazil to be a NIC + area had largest growth potential
  
  • inc heavy infra investment in road + rail networks, main airports + seaports, + oil + gas pipelines
• = encouraged FDI = improved infra + funded ed = big, highly skilled workforce
• this + large market = made SE attractive for TNCs (e.g. major car manufacturers like Toyota) to locate + outsource to
• = encouraged more foreign TNCs to locate in SE (now centre of foreign + direct investment) = more eco dev through cumulative causation = wider regional disparities

Question 5

Describe how cumulative causation in NE Brazil has led to regional disparities.

Answer 5

• due to natural + historical disadvantages
• NE historically reliant on agri = slow eco growth worsened by rapid SE growth = mass migration from R areas in NE, to U areas in SE = labour shortages + hindered dev. in NE
  
  • e.g. from 2000-2010, >5M ppl moved from NE to SE
• = cycle of decline, widening regional disparities

Question 6

Conclusion/Evaluation.

Answer 6

• natural + locational advantages, + historical disadvantages, sig contribute to regional disparities, but are amplified by cumulative causation
• = cycle of eco growth in SE, + cycle of eco. decline in periphery = shows sig. of cumulative causation in = regional disparities in Brazil
• but changes in gov. policies over time also influence regional disparities