Brazil and India are developing countries with large territories and rich and exciting histories; their young population helps to attract investment in current projects. The last century was a tough test for these countries. They were continually subjected to revolutions, coups, and state power seized either by individual rulers, dictators, fighters from the junta, or vast dynasties. India and Brazil tried to develop against the backdrop of destabilizing events, the problems of poverty, hunger, and a deficient level of education. The welfare state concept helped these countries eliminate the need and extreme poverty and slightly reduced the gap between rich and poor citizens. Their economies have many problems (corruption, distribution of resources, and others); still, governments are trying to develop strengths, use young people to get involved in business and projects, and actively export their wealth.
One of the aspects hindering the economic development of the countries under consideration is a low political culture and a particular political structure. India is founded on a strict caste system. Any manifestation of initiative and desire to go against the rules is fatal if it comes from a lower caste member. It shackles many citizens and kills the creativity of their thinking, preventing innovation from developing. Brazil differs from India in this regard, taking a cue from the US and Europe. Both countries have an experience of colonial dependence and fund their entire subsequent life and development with what is left of their overlords. It is what became the foundation for the creation of welfare states.
The creation of the welfare state is an attempt to change the historical gap between rich and poor in the societies of India and Brazil. These reforms were challenging to implement as (especially in India) international economic organizations and auditors were faced with the uniqueness of society and culture. However, the divide in India is still significant and is observed by the principle of territory even in everyday matters: “Deterioration of public services in opposition locations” (Asher & Novosad, 2017, p. 231). However, the government made several reforms with the help of the global financial community, and all of them took place at the end of the last century when the gap between civilized countries and the ‘catching up’ countries became unfairly enormous so that equal trade and cooperation were out of the question.
Governments strictly observed reforms in the economic sphere; in the example of Brazil, one can generally understand that even authoritarian military regimes can sometimes be interested in creating welfare states. The military administration of Brazil (India nevertheless inherited a democratic system from the overlords and tried to comply with it) understood that healthy reforms were needed for long-term support of society. However, now, there is a “deceleration of the growth of the Brazilian economy from the beginning of the 1980s” (Oreiro et al., 2018, p. 223). These reforms could increase the value of work (in the form of wages) and reduce unemployment, keeping people busy earning money and showing up less in political life. It is how seemingly cruel and undemocratic regimes went to the trick and began to develop a welfare state.
However, inequality continues to worry countries like India despite all the reforms. Above, the disparity in the public services sector was mentioned, which is due to the political engagement of some regions of the country. It speaks of internal corruption and the unequal attitude of the elites towards the opposition. Moreover, the international community sees how difficult it is for India to eradicate the caste system, as the income gap (with any labor and educational reforms) remains enormous. Work and education go hand in hand with the problems of income and income gap described.
Education is unevenly distributed in countries such as India and Brazil. Indian girls have fewer opportunities to get quality education in practice than boys. The Constitution of India enshrines the right to education for its citizens. However, the government cannot always do this due to the traditions and culture of the inhabitants. However, India and Brazil send a lot of money from their GDP to the social sector. It is one of the most critical aspects of the welfare state, which supports the vulnerable sections of the population. Reforms in work and education have addressed the gender gap, reducing it in some areas. However, female labor and education continue to be a significant problem due to ‘girl missing,’ a sizeable demographic pit that abortions have caused (Asher & Novosad, 2017). In Brazil and India, women are often associated as mothers and homemakers, hindering their contribution to its economic growth and political diversity.
However, Brazil is actively increasing exports and making companies private, which is not common in India, where state ownership is still strong. Brazilians and Indians are often employed in low-paid jobs that harm their health. Specialists can say that so far, neither India nor Brazil can protect their workers either inside the country or abroad. Despite this, both countries continue to aggressively attract investment and try to sell everything that might be of interest to large foreign businesses. This business is often affiliated with Amazon, IT, or engineering but does not pay well. The citizens of these countries are employed in short positions, often disrespected, and forced to work overtime for pennies. India, however, is trying to develop the service sector and digital technologies by sending young people abroad to study on grants (Asher & Novosad, 2017). It is how India develops its prospects and strengthens its position in the international market. Brazil cannot currently boast of similar success, although the country diligently fits itself into the structure of global economic and social protection.
India and Brazil are developing countries commonly referred to as catch-up countries in the international community. They have investors and vital areas in the economy, but at the same time, these countries are torn apart by problems of inequality, low wages, hunger, and low education. In addition, the economy, as in the case of India, is greatly influenced by culture and the unique caste system that has developed historically. The governments of the reviewed countries initiated welfare state reforms for various benefits.
Usually, welfare states protect minorities and help people get support in case of illness, disability, and others. India wanted to narrow the rich and poor gap and avoid famine. The Brazilian circumstances are unique in that the welfare state developed there with the support of military regimes, juntas, and non-democratic forces. The then Brazilian government, which operated in the second half of the last century, wanted to calm the population and not draw attention to problems to maintain sole power for an extended period. So far, despite considerable investments in the private sector, the countries in question have not been able to avoid the gap between rich and poor, and inequality in income or access to goods is sometimes dictated by political partisanship. However, there is scope for Brazil and India if investors continue to pour money and governments continue to spend it on the social sector.
References
Asher, S., & Novosad, P. (2017). Politics and local economic growth: Evidence from India. American Economic Journal: Applied Economics, 9(1), 229–273. Web.
Oreiro, J. L., Dagostini, L., Vieira, F. A., & Carvalho, L. (2018). Revisiting growth of Brazilian economy (1980-2012). PSL Quarterly Review, 71(285), 203-229.