When it comes to distribution of income, Brazil has the recipe for success. As the cheaper and investment in Brazil grow, new wealth is shared and inequality reduced. As a result, the Brazilian middle classes are a force to be reckoned with.
The middle classes in Brazil have experienced weighty growth over the last decade. They now comprise 105 million people, 133% more than in 1993. According to Marcelo Neri, sociologist and author of numerous studies on the Brazilian middle classes, Brazilian investment and economic activity should focus on this sector of the population.
Power Adapters
In an interview published in the enterprise magazine Istoe Dinheiro, Mr Neri says that Class C (earning between R,200 and R,300 a month) "represents a safe haven for Brazil". He believes that this strong class base provides a warrant of Brazil's hereafter economic strength.
New investment Focus
Class C has greater purchasing power than Classes A and B, and accounts for 46.3% of total consumption in Brazil, production Class C the dominant class. According to Mr Neri, Brazilian and foreign associates are moderately waking up to this new group reality and adapting their Brazilian investment strategies accordingly.
The Brazilian middle classes are an important focus for investment in Brazil and businesses are fitting their products to middle class demands. These range from small items such as kitchen appliances and computers to big purchases such as vehicles and homes - the markets for Brazilian real estate and cars are among the world's fastest growing.
Balance of Wealth
But for Mr Neri, the most important aspect of the rise in the Brazilian middle classes is that they prove inequality is being reduced. weighty government and secret investment in Brazil has led to strong economic growth and the wealth from this growth is being distributed among Brazilians. As a result of this wealth distribution, Class C Brazilians are receiving best education and employment opportunities important to a best ability of life.
Mr Neri believes that Brazil has achieved the right balance between a strong state and a strong market, a difficult feat. This "middle way" comes from group iniciatives such as the government investment in Minha Casa Minha Vida group housing and the Zero Hunger programmes. These in tandem with secret investment in Brazil have achieved a spread of wealth throughout society.
As Brazil's economic growth progresses - Gdp growth of 5% is unbelievable for this year - the middle classes continue to grow. For Mr Neri, this growth is Brazil's "life insurance" and what sets Brazil apart from most of the rest of the world. He claims there are few other countries where strong economic growth is matched by a marked reduction in inequality.
Foreign Brazilian investments often focus on the middle classes and shop investigate has clearly shown that Class C is a driving force behind many investment opportunities. This is particularly true of the group housing programme, Minha Casa Minha Vida, giving millions of Brazilians the opportunity to own a home.
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