Education, growth and poverty

Between 2004 and 2008, Brazil registered high rates of economic growth, averaging 4,8% per year. From 2009 onwards, the situation changed, and today GDP growth is below 1%.

The economic policy in place in the country in 2003/2004, instituted as a result of actions initiated in 1990, allowed for the accelerated expansion of GDP. This made it possible to improve the lives of the middle class and people living in poverty.

Economic growth between 2004 and 2008 was made possible because the country had a high number of unemployed workers. With accelerated economic expansion over a relatively long period, it was possible to incorporate this idle workforce into productive activity. In short, the economy grew, more people had jobs and income, and poverty was reduced.

The economic situation of a large number of people in Brazil has improved in recent years. However, there is still a huge contingent of families living in precarious conditions. To rescue this group and maintain what has already been achieved, the country needs to return to accelerated growth over a long period. The problem is that the Brazilian economy no longer has the stock of idle labor it had ten years ago. Even with 1,2 million unemployed workers still in the country's main metropolitan regions, their utilization is limited due to their low qualification levels.

The key to Brazil returning to growth, given the labor shortage, lies in increasing the productivity of the economy. But there are obstacles to overcome for this to happen. One of the most significant relates to education.

It should be noted that, in the last decade, the average years of schooling for formal workers increased by two years. This fact should have improved productivity, but it did not.

There are two reasons why productivity has not improved with increased worker education. The first is the poor quality of Brazilian education. Functional illiteracy is a serious obstacle to workforce efficiency. To give you an idea, according to the Paulo Montenegro Institute, about 38% of people with a university degree in the country are in this situation. That is, they cannot understand and interpret common texts and have difficulty solving basic mathematical operations. A shocking finding.

Another aspect within the educational field that hinders productivity relates to the lack of alignment between the knowledge that schools and universities transmit and what companies need to be more productive. In other words, there is a disconnect between academics and technical skills in the country that negatively impacts production.

Brazil needs a revolution in its education system. It's not enough to simply throw people into classrooms and say they have higher levels of education. Quantity must be combined with quality. Furthermore, it is essential to value and make technical education more flexible in the country, aligning it with academia and the needs of businesses, as Switzerland, Australia, and South Korea do, for example. Without effective action in these areas, poverty will continue to be a national disgrace, and much of what has been achieved will be at risk.